Merchants' National Bank v. National Eagle Bank
Massachusetts Supreme Judicial Court
Contract to recover the amount of a check drawn on the plaintiffs by John R. Williams, payable to the order of Hubbard Brothers, and by them indorsed and deposited with the defendants.
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Contract to recover the amount of a check drawn on the plaintiffs by John R. Williams, payable to the order of Hubbard Brothers, and by them indorsed and deposited with the defendants. At the trial in the superior court, before Ames, C. J., the material facts appeared as follows: The plaintiff and defendant banks were members of the Boston Clearing House Association, which was formed by banks in Boston “ for the purpose,” as expressed in the preamble of their articles of association, “of effecting a more perfect and satisfactory s§ttleraent of the daily balances between them.” In the second…
1Opinion of the CourtColt, J.
This action is brought by the plaintiffs to recover the amount of a check drawn upon them and paid by them through the agency of the Boston Clearing House, there being no funds of tb 3 drawer in their hands at the time of the pay ment.
*285It is well settled by recent decisions that money paid to the holder of a check or draft drawn without funds may be recovered back, if paid by the drawee under a mistake of fact. And though the rule was originally subject to the limitation that it must be shown that the party seeking to recover back had been guilty of no negligence, it is now held that the…
2Cited by23 opinions
- National Bank of North America v. BangsMassachusetts Supreme Judicial Court · 1871
- Merchants' National Bank v. National Bank of the CommonwealthMassachusetts Supreme Judicial Court · 1885
- National Bank v. BerrallSupreme Court of New Jersey · 1904
- Bellevue Bank of Allen Kimberly & Co. v. Security National BankSupreme Court of Iowa · 1915
- Northampton National Bank v. SmithMassachusetts Supreme Judicial Court · 1897
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