Hammeke v. Reading National Bank

Citations

• 78 Pa. Super. 538
• 1922 Pa. Super. LEXIS 157

Syllabus

<p>Banks and Banking — Loans—Payment Toy third party — Collateral securities — Delivery—Damages.</p> <p>In an action to recover damages from a bank on the ground that it made an improper and unauthorized delivery to a third person of collateral securities deposited with it by the plaintiff, there can be no recovery, unless it be made to appear that the plaintiff has suffered loss through the alleged wrongful act.</p> <p>Plaintiff brought suit to recover damages upon the following state of facts. The plaintiff was introduced at defendant bank by a third person, and thereupon procured a loan and opened an account. The loan was not paid at maturity and, being in default, was paid by the third person, who thereby obtained the collateral deposited to secure the loan. Subsequently the third party used this collateral to obtain another loan elsewhere and the plaintiff was required to pay a part of the latter debt in order to regain possession of his securities. The amount thus paid by plaintiff was, however, less than his own original indebtedness. Upon suit against the bank where he pledged the securities, to recover damages for their delivery to the third party, plaintiff obtained judgment. Held, reversing the judgment, that the plaintiff failed to show that he had been injured and was not entitled to recover.</p>