First National Bank of Danvers v. First National Bank of Salem
Massachusetts Supreme Judicial Court
Contract to recover back money paid by the plaintiff on a forged check cashed by the defendant. At the trial in the Superior Court, without a jury, before Barker, J., the following facts appeared in evidence.
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Contract to recover back money paid by the plaintiff on a forged check cashed by the defendant. At the trial in the Superior Court, without a jury, before Barker, J., the following facts appeared in evidence. A day or two before September 26, 1885, a person presented at the counter of the defendant bank, and requested to have cashed, a check, of which the following is a copy: “$188.00. The First National Bank, Danvers, Mass., Sept. 10, 1885. Pay to Joel Kimball, or bearer, one hundred and eighty-eight dollars. E. and A. Mudge & Co.” The person who presented the check was not known to either…
1Opinion of the CourtDevens, J.
In the case at bar, the plaintiff seeks to recover from the defendant the amount of a forged check in the name of one of the plaintiff’s customers, for which it had given the defendant credit as money.
In the usual course of business, if a check purporting to be signed by one of its depositors is paid by a bank to .one who, finding it in circulation or receiving it from the payee by indorsement, took it in good faith for value, the money cannot be recovered back on the discovery that the check is a forgery. It *283is presumed that the bank knows the signature of its own customers, and therefore is…
2Cases cited4 opinions
- National Bank of North America v. BangsMassachusetts Supreme Judicial Court · 1871
- Bank of St. Albans v. Farmers & Mechanics BankSupreme Court of Vermont · 1838
- First National Bank v. RickerIllinois Supreme Court · 1874
- Rouvant v. San Antonio National BankTexas Supreme Court · 1885
3Cited by42 opinions
- Jordan Marsh Co. v. National Shawmut BankMassachusetts Supreme Judicial Court · 1909
- Scollans v. RollinsMassachusetts Supreme Judicial Court · 1901
- Murphy v. Metropolitan National BankMassachusetts Supreme Judicial Court · 1906
- First Nat. Bank v. United States Nat. BankOregon Supreme Court · 1921
- Farmers National Bank v. Farmers & Traders BankCourt of Appeals of Kentucky · 1914
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