Makel Textiles, Inc. v. Dolly Originals, Inc.
Supreme Court of New York
4 U.C.C. Rep. Serv. 95 (1967)
Nathan Goldberg, president of Dolly Originals (defendant), executed two $5,000 promissory notes to Makel Textiles (plaintiff) for a $10,000 loan, with both Goldberg and Fred Kushner personally endorsing the notes; Dolly also gave five $2,000 checks signed by Goldberg, of which only one was paid and another bounced. Makel sued Dolly, Goldberg, and Kushner for the remaining $8,000 balance; Dolly defaulted, but Goldberg and Kushner moved to dismiss, arguing their endorser obligations were discharged because Makel never formally presented the notes for payment or gave notice of dishonor and nonpayment.
Whether the requirements to present promissory notes and provide notice of dishonor are excused when doing so is not necessary to enforce a party's obligation to pay the instrument.