Southern Bnk. & Trst. Co. v. Harrison Sales Co. Inc.

The trial judge sustained Harrison Sales Company’s demurrer to Southern Bank and Trust Company’s complaint. We reverse.

A. E. Pennebaker Company, which is apparently Harrison’s factor, presented a draft drawn on Harrison’s account. Contrary to Harrison’s instructions, Southern paid the draft without Harrison’s approval. Southern brought this declaratory judgment action to determine its rights and obligations arising out of the payment of the draft.

In sustaining the demurrer, the judge held that there was not an actual controversy between the parties. We disagree.

A declaratory judgment action…