Campbell v. National Broadway Bank
Campbell v. National Broadway Bank
Opinion of the Court
This action was commenced by the plaintiff, as ancillary receiver, to recover $12,150 and interest, being the amount due on three cashier’s drafts, drawn by George M. Valentine, cashier of the Middlesex County Bank, of Perth Amboy, N. J. , on' its New York correspondent, the National Park Bank of New York, to the order of the defendant, the National Broadway Bank. These drafts were given by Valentine in payment of his individual obligations to the said Broadway Bank.
It is argued that “the court erred in instructing the jury that if during a series of years sufficiently long, and in business transactions sufficiently numerous to make out a regular course of business in the conduct of the bank, the cashier had been accustomed to sign the checks of his bank payable to his own order, or to the order of his creditors, then the defendant was entitled to a verdict.” The instructions excepted to are in accord with the decision of this court in Gale v. Chase National Bank, 104 Fed. 214, 43 C. C. A. 496, which cannot be distinguished, on principle, from the case at bar. In the Gale Case a cashier’s draft, given to discharge his individual debt, was under consideration, and it was decided that where it appears that the cashier had, on numerous previous occasions, drawn similar drafts to pay similar debts, and such acts had continued for a period sufficiently long to establish a settled course of business which had been sanctioned and ratified by the officers of the bank, it might be inferred by the jury that such acts were known, or should have been known, to the directors of the bank and that the cashier’s acts were authorized. This, in substance, was the proposition charged in the present case and the jury were told that the burden was upon the
The judgment is affirmed with costs.
Reference
- Full Case Name
- CAMPBELL v. NATIONAL BROADWAY BANK
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- 2 cases
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- Syllabus
- I. Banks — Drafts Issued by Cashier to Individual Creditor — Implied Authority. A bank cannot recover tbe amount collected on a cashier’s draft issued by its cashier and made payable to his individual creditor, where it is shown that the cashier had on numerous previous occasions drawn similar drafts in payment of his own debts, and such acts had continued for a period sufficiently long to establish a settled course of business in the conduct of the bank which had been sanctioned by its officers, and was known, or should have been known, to its directors.