Investment Service Co. v. Martin Bros. Container & Timber Products Corp.

The plaintiff, the assignee of the depositary bank, brought this action against the drawer of a dishonored check. The payee of a check made by the defendant drawer deposited the check in the depositary bank, which, in turn paid cheeks drawn by payee on its account against the balance created by the deposit of drawer’s check. The drawer sent a timely stop-payment order to the payor bank who, therefore, refused to honor the check when the depositary bank sent the cheek to the payor bank for collection. This action is for the sum of $2,042.21, the amount the depositary bank paid out of the…