Montgomery County Bank v. Albany City Bank
New York Supreme Court
This was an appeal by the defendants, from a judgment rendered at the circuit in favor of the plaintiffs. On the 7th of June, 1848, the plaintiffs discounted for Jones & Hart a draft of that date, drawn by Loucks & Gray, of Canajoharie, on Morgan Gray of New-York, in favor of Jones & Hart, or order, for $1800, thirty days after date. Jones & Hart indorsed the draft to the plaintiffs, who then and there advanced the money for it.
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This was an appeal by the defendants, from a judgment rendered at the circuit in favor of the plaintiffs. On the 7th of June, 1848, the plaintiffs discounted for Jones & Hart a draft of that date, drawn by Loucks & Gray, of Canajoharie, on Morgan Gray of New-York, in favor of Jones & Hart, or order, for $1800, thirty days after date. Jones & Hart indorsed the draft to the plaintiffs, who then and there advanced the money for it. This draft became due on the 7th—10th July, 1848. On the 6th July, 1848, the plaintiffs indorsed the said draft to the Albany City Bank, and forwarded it to them for…
1Opinion of the Court
By the Court, Willard, J.
It is well settled that a bank with whom negotiable paper is left for collection, is bound to take the necessary measures to charge the indorsers, upon the default of the acceptor or maker; and that they are responsible to the owner of the bill or note, for a neglect, or omission to *399perform that duty. (Smedes v. The Bank of Utica, 20 John. 372 ; same case in error, 3 Cowen, 662. McKinster v. Bank of Utica, 9 Wend. 46 ; same case in error, 11 Id. 473. Allen v. Merchants’ Bank of New- York, 22 Id. 215.) Prior to the code, the action might be brought in assumpsit upon…
2Cases cited5 opinions
- Wright v. J. & S. WilcoxNew York Supreme Court · 1838
- Allen v. Merchant's BankCourt for the Trial of Impeachments and Correction of Errors · 1839
- Smedes v. President of Bank of UticaNew York Supreme Court · 1823
- McKinster v. Bank of UticaNew York Supreme Court · 1832
- Griffin v. GoffNew York Supreme Court · 1815
3Cited by3 opinions
- Commercial Bank of Pennsylvania v. Union Bank of New-YorkNew York Court of Appeals · 1854
- Commercial Bank v. Red River Valley National BankNorth Dakota Supreme Court · 1899
- President of the Montgomery County Bank v. Albany City BankNew York Court of Appeals · 1852