Davis v. Rockingham Investment Co.

Citations

• 89 Va. 290
• 15 S.E. 547
• 1892 Va. LEXIS 97

Syllabus

<p>1. Corporations — Treasurer — Checks — Notes—Endorsee.—Unless taken away or restrained, authority is inherent in the treasurer of a corporation to draw checks; but the power to bind it by endorsing negotiable notes is not, and he that takes such note by endorsement from an officer of the corporation does so at his peril.</p> <p>2. Idem—By-laws—Case, at bar.—A by-law of a corporation provided that the president, or, in his absence, the vice-president, shall sign all deeds, notes, and bonds of the company; and no authority was given to the treasurer or “general manager” to endorse such notes. A note for $1,000, payable to the company, was endorsed by the treasurer or “ general manager ” and negotiated, and its proceeds placed in bank to the credit of a brother of said treasurer, who afterwards gave the latter a draft for the proceeds; but the draft was not paid, because the drawer’s balance had, in the meantime, been checked out. The company got none of the proceeds. The holder of the note having been enjoined from collecting it, and evidence on both sides taken—</p> <p>Held :</p> <p>The circumstances are not sufficient to warrant an implication of authority in the treasurer or “ general manager ” to bind the company by endorsing the note.</p>