Bowles Co. v. Clark

Citations

• 59 Wash. 336
• 109 P. 812
• 1910 Wash. LEXIS 1200

Syllabus

<p>Bills and Notes — Check by Stranger — Rights op Payee — Duty to Account. The payee of a check drawn by a stranger to him is not a purchaser of the check nor a holder in due course, and if he receives it he is bound to account to the drawer upon demand.</p> <p>Principal and Agent — Authority op Agent — Duty op Third Persons — Diligence—Mechanics’ Liens. Where a company dealing in plumbing supplies had refused an irresponsible contractor credit, and the contractor brought it a check from the owner of a house in course of construction, payable to the dealer, the dealer must use reasonable diligence to ascertain whether the contractor owed the check or was delivering it as agent; and where the contractor, instead of using it to purchase supplies as directed by the drawer of the check, paid off an old account, took the balance in cash, and secured further credit for the supplies needed, the dealer cannot claim a mechanics’ lien against the house for the supplies furnished, intended by the owner to be paid for by the check.</p>