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Atrium vs CA

plaintiff-appellee was guilty of gross neglect in not finding out the nature of the
title and possession of Manuel Gonzales, amounting to legal absence of good
faith, and it may not be considered as a holder of the check in good faith. To
such effect is the consensus of authority

In order to show that the defendant had "knowledge of such facts that his action
in taking the instrument amounted to bad faith," it is not necessary to prove
that the defendant knew the exact fraud that was practiced upon the plaintiff by
the defendant's assignor, it being sufficient to show that the defendant had
notice that there was something wrong about his assignor's acquisition of title,
although he did not have notice of the particular wrong that was committed.
Paika v. Perry, 225 Mass. 563, 114 N.E. 830