BILLS AND NOTES-DISCHARGE-INTENTIONAL DESTRUCTION DUE TO MISTAKE AS A DISCHARGE

Authors

Richard S. Weinstein S.Ed., University of Michigan Law SchoolFollow

Abstract

The holder of sixteen bonds issued by defendant destroyed the bonds believing them to be worthless after they had been in default as to both principal and interest for six years. Ten years later the defendant went into bankruptcy for reorganization and the holder learned that under the plan of reorganization the bonds were exchangeable for $400 in cash and $600 in preferred stock. When defendant refused to recognize the indebtedness even though the holder tendered an indemnity bond against wrongful payment, the holder instituted suit to recover the value of the bonds. The lower court denied relief to the plaintiff . On appeal, held, affirmed. Intentional destruction of a negotiable instrument is the highest evidence of an intention to discharge and cancel the debt represented by it. State Street Trust Co. v. Muskogee Electric Traction Co., (10th Cir. 1953) 204 F. (2d) 920.

Recommended Citation

Richard S. Weinstein S.Ed., BILLS AND NOTES-DISCHARGE-INTENTIONAL DESTRUCTION DUE TO MISTAKE AS A DISCHARGE, 52 Mich. L. Rev. 900 (1954).
Available at: https://repository.law.umich.edu/mlr/vol52/iss6/8