Spencer & Co. v. Bank of Hickory Ridge
Supreme Court of Arkansas
Appeal from 'Cross Circuit Court; W. J. Driver, Judge; STATEMENT BY THE COURT. Appellants sued to recover $718.07, the amount of a certain draft which had been 'drawn on, and paid by, them.
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Appeal from 'Cross Circuit Court; W. J. Driver, Judge; STATEMENT BY THE COURT. Appellants sued to recover $718.07, the amount of a certain draft which had been 'drawn on, and paid by, them. To this draft there were attached bills of lading for three carloads of corn,-which bills of lading proved to be forgeries, and appellants testified that the circumstances under which they paid the draft were as follows: That one F. F. Farrin called at the offices of appellants, Spencer & Co., in the city of Jonesboro, late in January or early in February, 1912, and stated that the purpose of his visit was…
1Dissent
DISSENTING OPINION.
Hart, J.
The undisputed facts in this case bring it squarely within the doctrine announced in Goetz v. Bank of Kansas City, 119 U. S. 551. There the court held:
1. ‘ ‘ The acceptor- of a bill of exchange discounted by a bank with a bill of lading attached which the aoceptor and the bank regard as genuine at the time of the acceptance, but -which turns out to be a forgery, is bound to pay the bill to the bank at maturity.
2. ‘£ The bad faith in the taker of negotiable paper which will defeat a recovery by him must be something more than a failure to inquire into the…
2Cases cited4 opinions
- Goetz v. Bank of Kansas CitySupreme Court of the United States · 1887
- Exchange National Bank v. CoeSupreme Court of Arkansas · 1910
- LaFayette v. Merchants' BankSupreme Court of Arkansas · 1905
- Varney v. Monroe Nat. BankSupreme Court of Louisiana · 1907