Saint Nicholas Bank v. State National Bank
New York Court of Appeals
Appeal from order of the General Term of the Supreme Court in the first judicial department, made January 13,1891, which reversed a judgment in favor of plaintiff entered upon a verdict directed by the court and granted a new trial. This action was brought to recover the proceeds of a draft for $473.57 sent for collection by the plaintiff to the defendant, and paid to the defendant’s correspondents.
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Appeal from order of the General Term of the Supreme Court in the first judicial department, made January 13,1891, which reversed a judgment in favor of plaintiff entered upon a verdict directed by the court and granted a new trial. This action was brought to recover the proceeds of a draft for $473.57 sent for collection by the plaintiff to the defendant, and paid to the defendant’s correspondents. The trial resulted in the direction of a verdict for the plaintiff for the amount demanded upon appeal to the General Term, the judgment entered upon the verdict was reversed and a new trial…
1Opinion of the CourtEarl, J.
The rule has long been established in this state that a bank receiving commercial paper for collection, in the absence of a special agreement, is liable for a loss occasioned by the default of its correspondents or other agents selected by it to effect the collection. (Allen v. Merchants’ Bank, 22 Wend. 215; Montgomery County Bank v. Albany City Bank, 7 N. Y. 459; Commercial Bank v. Union Bank, 11 id. 203; Ayrault v. Pacific Bank, 41 id. 570; Naser v. First National Bank, 116 id. 498.) And the same rule prevails in some of the other states, in the United States Supreme Court and in England.…
2Cases cited8 opinions
- Swift v. TysonSupreme Court of the United States · 1842
- Oates v. National BankSupreme Court of the United States · 1879
- Allen v. Merchant's BankCourt for the Trial of Impeachments and Correction of Errors · 1839
- Indig v. . National City BankNew York Court of Appeals · 1880
- Montgomery County Bank v. . Albany City BankNew York Court of Appeals · 1852
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3Cited by30 opinions
- Meacham v. Jamestown, Franklin & Clearfield RailroadNew York Court of Appeals · 1914
- Weissman v. Banque De BruxellesNew York Court of Appeals · 1930
- Hoyt v. McLaughlinIllinois Supreme Court · 1911
- Winchester Milling Co. v. Bank of WinchesterTennessee Supreme Court · 1907
- Bailie v. Augusta Savings BankSupreme Court of Georgia · 1895
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