Capitol State Bank v. Lane

Citations

• 52 Miss. 677

Syllabus

<p>1. Banks : Liabilities. Draft. Demand and notice. Gase in judgment.</p> <p>The bank had for collection a draft by Lane on Gibson, and received $60.40 in money, and a sight draft and a ten days’ sight draft on B., in settlement of L.’s draft on G. B. paid one draft and accented the other at ten days. Upon maturity the bank presented it to B. for payment, -which was refused, and the bank did not cause the draft to be protested, so as to charge the drawer. Held, that the bank, by failing to have the draft protested, has become liable to L. for the amount of the draft. A bank which receives a note or bill for collection is bound to use due and proper diligence in making demand and giving notice and causing protests to be made, so as to hold all parties liable, and in default of such diligence the bank itself becomes responsible to the party who deposited the note or bill.</p>