New Ulm State Bank v. Brown

EVANS, Justice.

This is a bank collection case involving documentary drafts.

Kenneth Richardson, doing business as R & R Farms, Inc. and Robert B. Brown and Hayden Rabón, doing business as B & R Cattle Company were cattle traders, having bought and sold each other’s cattle since 1965. Each time Richardson bought cattle from Brown, he would instruct Brown to draw a draft on New Ulm State Bank, where R & R Farms, Inc. maintained its account. Brown would cause a “bill of sale” draft to be prepared, naming B & R Cattle Company as the payee, for the amount of the purchase price of the cattle. B & R…