Turman v. Ward's Home Improvement
Virginia Circuit Court
26 U.C.C. Rep. Serv. 2d 175 (1995)
Relevant factsFree
The Turmans (defendants) executed a $107,500 deed-of-trust note payable to Ward's Home Improvement (plaintiff) for home construction, which Ward assigned to Pomerantz (plaintiff) without indorsement; when Ward failed to complete construction, Pomerantz demanded payment claiming holder-in-due-course status.
IssueFree
Whether, under commercial law, if a payee assigns a negotiable instrument to an assignee who is not a holder in due course, the instrument's maker may raise the same defenses against the assignee that could have been asserted against the payee.