First-Wichita National Bank v. Steed

MASSEY, Chief Justice.

Unlike the law in certain other states, a bank in Texas, which through its own negligence or mistake delivers to the payee named on a check the amount for which it was drawn, at a time when the bank should not have paid the check (because the drawer had executed a “stop-payment” order, did not have an account, etc.), is entitled to maintain and recover upon an action for restitution of and from the payee, in an amount limited only to the extent that benefits have been received by the payee at the expense of the bank. (Emphasis supplied.) The theory is that the party who…