Posey v. Denver National Bank
Supreme Court of Colorado
Appeal from the Court of Appeals. This action was originally instituted against appellant and one L. A. Dunham, to recover the sum of $500 with interest and protest fees upon a draft drawn by Dunham upon appellant Posey, which draft was cashed by appellee, The Denver National Bank. No service was had upon Dunham, and he did not appear.
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Appeal from the Court of Appeals. This action was originally instituted against appellant and one L. A. Dunham, to recover the sum of $500 with interest and protest fees upon a draft drawn by Dunham upon appellant Posey, which draft was cashed by appellee, The Denver National Bank. No service was had upon Dunham, and he did not appear. On October 27,1892, Dunham, the drawer, was in Chicago, and on that date wrote a letter to appellant Posey, from that city, in which he represented that he was sorely in need of money to pay certain expenses, and that it was important for him to go at once to…
1Opinion of the Court
Chiee Justice Hayt
delivered the opinion of the court.
The principle of law is well established by which one is held who accepts a draft and thereby induces another to pay the same. It is founded upon sound morality, and is supported by all the authorities. And where a third party advances money upon authority given to draw generally, or for a definite sum, the promise to pay, whether expressed in positive terms, or implied from the authority, is held to move directly to the third party who has been induced to part with his money upon the faith of such promise.
The letter by which the bank was…
2Cases cited2 opinions
- Bank of Montreal v. . RecknagelNew York Court of Appeals · 1888
- Posey v. Denver National BankColorado Court of Appeals · 1895
3Cited by1 opinion
- Stough v. E. J. Healy & Co.Supreme Court of Kansas · 1907