First Nat. Bank v. Strauss
Mississippi Supreme Court
From the circuit court of Lauderdale county. Hon. S. H. Terral, Judge. The facts are stated in the opinion of the court. The court below determined the case adversely to the bank on the theory that Gattman & Co. got no title to the draft, because, being insolvent, it was fraud on their part as against Strauss, to discount the draft. We think this conclusion wrong.
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From the circuit court of Lauderdale county. Hon. S. H. Terral, Judge. The facts are stated in the opinion of the court. The court below determined the case adversely to the bank on the theory that Gattman & Co. got no title to the draft, because, being insolvent, it was fraud on their part as against Strauss, to discount the draft. We think this conclusion wrong. The fact •of insolvency may be considered with other facts tending to establish fraud; but we cannot conceive a case where the bare fact of insolvency of the buyer would constitute a fraud on the seller. Nothing in the record…
1Opinion of the Court
Cooker J.,
delivered the opinion of the court.
Strauss, a merchant in Aberdeen, Mississippi, on the 16th day ■of March indorsed in blank and deposited with Gattman & Co., bankers, a draft drawn on Metzler at Meridian, receiving credit on his pass-book for the amount of the same, less the fee for collection. Gattman & Co. were at that time largely insolvent and had been for more than two years, but of this fact Strauss had no knowledge or suspicion. Gattman & Co. indorsed the draft to the First National Bank of Meridian “ for collection for account.” On the 17th day of March (Saturday) Gattman &…
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