Peoples Bank v. North Carolina National Bank

Webb, Judge.

In this action by North Carolina National Bank against Peoples Bank of LaGrange, Carolina seeks *406recovery from Peoples of $50,000 plus interest that Carolina had lost because of allegedly false and fraudulent representations made to it by Peoples. The pith of Carolina’s claim is that it was induced by Peoples to deposit to the latter’s credit $50,000 for a note signed by L. C. Robinson & Sons, Inc. and endorsed by G. E. Robinson, both customers of Peoples. Three days after the deposit to its account, Peoples withdrew this amount from its account.

Peoples denied substantially all of…