State v. Bank of Commerce
Supreme Court of Arkansas
Appeal from Pulaski Circuit Court, Third Division; G. W. Hendricks, Judge; The demurrer should have been overruled. The complaint stated a good cause of action. A bank must ascertain at its peril,that a person presenting a check is authorized to receive the money and endorse the check.
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Appeal from Pulaski Circuit Court, Third Division; G. W. Hendricks, Judge; The demurrer should have been overruled. The complaint stated a good cause of action. A bank must ascertain at its peril,that a person presenting a check is authorized to receive the money and endorse the check. If the endorsement is a forgery the bank becomes liable. 5 R. O. L. 566; 7 C. J. 693, § 422. Zane on Banks, etc., § § 1460-7; Morse on Banks, etc., (5th ed.) § 474; Magee on Banks, etc., (2d ed.) 351; 2 Daniel Neg. Inst., § 1663. The cases in 94 IJ. S. 343, and 98 Ark. 1, and § 198 of the uniform Negotiable…
1Opinion of the CourtSmith, J.
The .complaint in this cause contained the following allegations:
“That on November 27, 1916, Landauer Brothers Cotton Company of Little Bock, Arkansas, executed its check upon the defendant, the Bank of Commerce, in the sum of $5,000, payable to the order of the Arkansas State-Penitentiary, said check being in part payment of certain cotton sold to the said Landauer Brothers Cotton Company by the State Board of Penitentiary and Be-form School Commissioners. That oh said date said check was delivered by said Landauer Brothers Cotton Company into the hands of B. G-. Anderson, who was at that…
2Cases cited4 opinions
- First Nat. Bank of Washington v. WhitmanSupreme Court of the United States · 1877
- Sims v. American National BankSupreme Court of Arkansas · 1911
- Rogers Commission Co. v. Farmers' BankSupreme Court of Arkansas · 1911
- Mills v. Hurley Hardware & Furniture Co.Supreme Court of Arkansas · 1917
3Cited by10 opinions
- Schaap v. First National BankSupreme Court of Arkansas · 1918
- Anderson v. National Bank of TacomaWashington Supreme Court · 1928
- Security Etc. Bk. v. Southern Etc. Bk.California Court of Appeal · 1925
- Lone Star Trucking Co. v. City Nat. Bank of CommerceCourt of Appeals of Texas · 1922
- Security Commercial & Savings Bank v. Southern Trust & Commerce BankCalifornia Court of Appeal · 1925
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