Cureton v. Farmers' State Bank
Supreme Court of Arkansas
Appeal from Faulkner Circuit Court; Geo. W. Clark, Judge; The court erred in its findings. There was no negligence on the part of plaintiff, Cureton. The court overlooked the gross negligence of those parties trading for these negotiable bills of exchange made payable to order of A. J. Carman. The bank and these others should have had the negro to identify himself. A bank must use due diligence to ascertain whether the payee’s indorsement is genuine.
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Appeal from Faulkner Circuit Court; Geo. W. Clark, Judge; The court erred in its findings. There was no negligence on the part of plaintiff, Cureton. The court overlooked the gross negligence of those parties trading for these negotiable bills of exchange made payable to order of A. J. Carman. The bank and these others should have had the negro to identify himself. A bank must use due diligence to ascertain whether the payee’s indorsement is genuine. If the indorsement is forged and the bank pays the check, the bank is liable to the depositor. 56 So. Rep. 868, 63 N. J. Law. 578. Bailee, at…
1Opinion of the CourtWood, J.
On January 30, 1919, H. V. Carmon obtained a loan from H. E: Cureton. H. V. Carmon, in the name of.A. J. Carmon, executed a chattel mortgage to secure the loan. Cureton drew checks payable to A. J. Carmon on the Farmers’ State Bank of Conway, Arkansas, where he had on deposit more than the sum of $300. There were six different checks for different amounts, amounting in the aggregate to $265. These checks were delivered by Cureton to H. V. Carmon, believing that he was delivering the same to A. J. Carmon. H. V. Carmon forged the name of A. J. Carmon on five of the checks and traded the same to…
2Cases cited10 opinions
- Land Title & Trust Co. v. Northwestern National BankSupreme Court of Pennsylvania · 1900
- People v. BenditCalifornia Supreme Court · 1896
- Robertson v. ColemanMassachusetts Supreme Judicial Court · 1886
- Stout v. BenoistSupreme Court of Missouri · 1866
- Maloney v. StateSupreme Court of Arkansas · 1909
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3Cited by13 opinions
- Defiance Lumber Co. v. Bank of CaliforniaWashington Supreme Court · 1935
- Clemens v. First National Bank of BerryvilleSupreme Court of Arkansas · 1985
- Missouri Pacific Railroad v. M. M. Cohn Co.Supreme Court of Arkansas · 1924
- United States v. First Nat. BankCourt of Appeals for the Tenth Circuit · 1941
- Merchants' National Bank v. Home Building & Savings Ass'nSupreme Court of Arkansas · 1929
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