Burdg v. Scott

Citations

• 111 Kan. 610
• 208 P. 668
• 1922 Kan. LEXIS 304

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Shipment op Wheat — Bill of Lading Indorsed to Bank — When Title to Wheat Passes. One who purchases certain cars of wheat on the railroad track, procures shipper’s-order bills of lading to himself as consignor and consignee and draws drafts on certain grain companies for the price of the wheat and indorses such bills of lading and attaches them to the drafts and deposits the same in the bank and receives credit therefor subject to check, thereby passes the title of the wheat to the bank.</p> <p>2. Bill op Lading — Indorsement—Bona Fide Holder — Bad Faith. In order to preclude a bank in the situation indicated by the foregoing paragraph from being a bona fide holder of such bills of lading and drafts attached, it must, in the transaction by which it received such paper, have acted in bad faith.</p> <p>3. Same. The fact that such indorser of the bills of lading with the drafts attached was a regular customer of such bank and had been frequently overdrawn for some time and that the bank knew or had reason to believe that he was insolvent, would not make the bank guilty of bad faith in accepting such paper.</p> <p>4. Same — Instructions—Findings of Jury. Although the findings of the jury were to the effect that the paper referred to was received by the bank for collection and not placed to the credit of the indorser, still the refusal of the court to give properly requested instructions touching the good faith of the bank in receiving such paper was error, and the erroneous instruction given must be deemed to have had the effect of coloring the verdict of the jury, and therefore prevented the bank from having a fair trial.</p> <p>5. Same — Evidence. Certain conversations between the parties subsequent to the transaction touching the receipt-by the bank of the paper already referred to, held competent.</p>