Harding v. Pen Argyl National Bank

Citations

• 67 Pa. Super. 68
• 1917 Pa. Super. LEXIS 343

Syllabus

<p>Banks and banking — Partnership account — Dissolution—Notice to bank — Charging up notes of partner — Cashier.</p> <p>A partnership consisting of two persons opened a bank account in the firm name, and after several years the partnership was dissolved, and thereafter the bank without any knowledge of the dissolution, charged- against the account two personal notes of one of the partners. The other partner on discovering this by the balancing of the bank book, notified the hank of the dissolution, and objected to the charge of the two notes. He told the bank he would undertake to collect the amount of the charge, and was told by the cashier that the only way he could collect it was by law. He then drew a check for the balance remaining with the notes charged up, and took away the notes. Without drawing any further check for the amount he claimed, he brought an action against the bank. Held:</p> <p>(1) That the action should have been brought in the firm name, but as the error was amendable, the case for that reason alone should not be dismissed;</p> <p>(2) That as the plaintiff did not draw and present a check for the balance which he claimed he could not maintain an action for it. ,</p> <p>(3) That in the absence of notice of the dissolution, the bank was not prohibited from doing what it had previously done with the apparent consent of the partners. .</p> <p>(4) That as plaintiff did not return the notes, he put it out of the power of the bank to recover anything on them, and for this reason he could not maintain an action for the amount evidenced by the notes.</p> <p>(5) That the statement of the cashier did not indicate an intention of the bank to waive any of its legal rights.</p> <p>(6) That the cashier had no authority to deliver the notes to the plaintiff, and his action in doing so could not be construed as a waiver of the bank’s right to have the securities returned before plaintiff could maintain his action.</p>