First Nat'l Bank v. Guynes
First Nat'l Bank v. Guynes
Opinion of the Court
On June 5, 1926, A. D. Potts drew his check on the Bank of Winnfield for the sum of $400.00, payable to G. R. Robinson. Subsequently, the said Robinson, to whose order the check was drawn presented same to the Bank of Winnfield, on which it was drawn, and payment thereof was refused. He then took the check to the First National Bank of Winnfield, plaintiff herein, which bank paid him the amount thereof after the same had been endorsed by him, and also by the said F. A. Guynes. The check was then presented to the Bank of Winnfield, on which it was drawn, and payment was refused, whereupon the plaintiff bank brought this suit against A. D. Potts, the drawer of the check, and against Robinson, the payee, and against Guynes,' the. endorser. Before the trial, Robinson absconded and Guynes was adjudged a bankrupt. There was judgment against the other defendant, Potts, for the full amount of the check and he has appealed.
OPINION
The defense is that the plaintiff bank is not the holder of the check in due course. This contention is based upon the fact that, previous to the payment of the check by the plaintiff bank to Robinson, the payee, an officer of the Bank of Winnfield, on which the check was drawn, notified the Cashier of the plaintiff bank that payment of the check had been refused by his bank. It is contended that the check was given by Potts without consideration and that the plaintiff bank, having been notified that payment of the check had been refused, is charged with knowledge of the defects of the instrument and is therefore not a holder in due course, and cannot recover against the maker.
It is not contended that Robinson, the payee of the check, was not entitled to receive the money which Potts agreed to pay for the lease. The record discloses that both the assignment of the lease and the $400.00, belonging to Potts, are now in the Bank of Winnfield. However, Potts, it seems, has left the country and has made no effort whatsoever to close the deal. The testimony shows that Potts told Bryan, the president of the plaintiff bank, that he would pay the check and the record discloses no reason why he should not do so. The fact that the deal was not finally closed and the money finally deposited to his credit in the Bank of Winnfield is due entirely to his own fault. The maker of a- negotiable instrument by making it engages that he will pay it according to its tenor. He has no legal defense to make against his obligation to pay the check. The plaintiff bank paid full value therefor and Potts must respond to it.
For the reasons assigned, it is ordered, adjudged and decreed that the judgment appealed from be affirmed, with costs in both courts.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.