Makel Textiles, Inc. v. Dolly Originals, Inc.

Facts

Dolly Originals borrowed $40,000 from Plaintiff and paid back $30,000. Thereafter, Dolly Originals executed a promissory note payable to Plaintiff for the remaining $10,000 which was endorsed by Nathan Goldberg, president of Dolly Originals, and Richard Lewis. This note was never paid. Subsequently, two promissory notes worth $5,000 each were executed by Dolly Originals, signed by Nathan Goldberg and purportedly by Richard Lewis, made payable to Plaintiff. These notes were endorsed by Nathan Goldberg and Fred Kushner. Five checks worth $2,000 each were executed simultaneously with the two $5,000 notes and bore the signatures of Nathan Goldberg and Richard Lewis. One of the checks was deposited and return unpaid. Later, two more corporate checks were issued to Plaintiff, one of which was paid. This lowered the balance due on the original loan to $8,000. Plaintiff sued Dolly Originals, Nathan Goldberg, Richard Lewis, and Fred Kushner to recover the remaining balance. After a trial, the complaint against Richard Lewis was dismissed as it was found that his signature was not genuine.