Winecoff Op. Co., Inc. v. Pioneer Bank

Pioneer Bank issued its cashier’s negotiable certificate for $300 to Y. L. Norrell, who subsequently endorsed and delivered it to P. A. King in payment of a gambling debt. Thereafter, King endorsed and delivered the check to complainant, operating Winecoff Hotel, in due course for full consideration, without notice of the gambling transaction, as the Chancellor and Court of Appeals concurrently found.

Meanwhile, however, Norrell, the payee, had notified the maker Bank not to pay the check, and the Barde refusing payment upon presentation, the Hotel Company brought this suit. The Bank brought…