Richmond Ins. v. Litteer

AMIDON, District Judge.

This action was brought by Litteer, as receiver, against the Insurance Company and the Choctaw Cotton Oil Company to recover $17,375.57 on drafts issued by the local agent of the Insurance Company to the Cotton Oil Company in settlement of losses by fire. The drafts were indorsed by the payee and deposited to its credit in the State National Bank of Ardmore. Later the Oil Company drew out nearly the whole amount so credited. Notwithstanding these facts, it stopped payment on the drafts after the failure of the bank. The liability of the defendants on the drafts is not…