Central Bank of Alabama, National Association v. American Charms, Inc.

Banke, Judge.

The appellant in this case, Central Bank of Alabama, filed what amounts to an action for conversion against the appellee, American Charms, Inc. On December 1, 1972, American, a Georgia corporation, sold a shipment of furniture and appliances to a furniture wholesaler in Alabama. It received as payment a check drawn on Central Bank, which check the bank later dishonored for lack of sufficient funds. American subsequently recovered the goods from the wholesaler, and soon afterwards the wholesaler declared bankruptcy.

The bank sued to recover the value of the goods, alleging that it…