Farmers & Merchants National Bank v. Sprout

Citations

• 104 Kan. 348
• 179 P. 301
• 1919 Kan. LEXIS 263

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Bill op Lading — Transferred to Bank by Indorsement — Credit Given Shipper — Title to Goods Vested in Bank — No Attachable Interest Remained in Shipper. In the year 1916, a California shipper delivered to a carrier goods for transportation to Hutchinson, Kan. The carrier issued to the shipper an order bill of lading,, with a notation to notify a Hutchinson dealer. The shipper drew drafts on the dealer, attached to them the bill of lading properly indorsed, delivered them to a bank, and received credit on its checking account with the bank for the face of the drafts. The bank expected to charge interest during the suspension period, and to charge back the drafts in case of necessity. The drafts were dishonored. The dealer sued the shipper for damages for breach of contract, and attached the goods while in possession of a terminal carrier at Hutchinson, and garnished the terminal carrier. The bank replevined the goods. After obtaining possession of the goods, the bank, at the request of the shipper, delivered the bill of lading to the terminal carrier, and the shipper diverted the goods to Philadelphia, Pa. The dishonored drafts were returned to the shipper, who delivered to the bank new drafts on the Philadelphia consignee, but received no credit for them. The attaching dealer intervened in the replevin suit, and set up the attachment and garnishment proceedings. Held, negotiation of the bill of lading by the shipper vested in the bank title to the goods and right of possession. No attachable interest remained in the shipper, and the attachment being barren, the dealer had no standing to require the bank to account for the goods, or any excess in value over the face of the original drafts.</p>