Dere v. Montgomery Ward and Co., Inc.

The issue framed by the parties in this appeal is novation vel non.

Defendant Marlene R. Dere paid for certain furniture she bought from plaintiff Montgomery Ward and Company, Inc., by a check in the sum of $1,347.71. The checking account was titled disjunctively in her name and that of her husband, Donald P. Dere. The account contained sufficient funds to honor the check at the time it was drawn. Before plaintiff presented the check for payment, however, Donald withdrew all the funds, and the bank returned the check stamped “Account Closed”. When plaintiff notified defendant that the bank had…