Merchants National Bank v. State Bank

Lees, C.

For the sake of brevity, the plaintiff will be referred to as the St. Paul bank, the first named defendant as the Worthington bank, the second named as the Mankato bank, and the St. John Grain Company as the grain company.

The St. Paul bank sued the Worthington bank to recover $5,872.20, the face value of drafts drawn on the grain company and sent by the St. Paul bank to the Worthington bank for collection and remittance. The complaint alleged that the Worthington bank surrendered the drafts to the grain company and took in payment its check on the Mankato bank contrary to the…