Heim v. Neubert

Citations

• 48 Wash. 587
• 94 P. 104
• 1908 Wash. LEXIS 924

Syllabus

<p>Banks and Banking — Drafts—Liability of Customer to Bank. Where defendants, who were customers of plaintiffs’ bank, purchased a New York draft that had been issued to J. C., but which had come into the possession of another person of the same name who claimed to be the payee and forged the payee’s endorsement, and after warning as to their liability, endorsed the draft and advanced part of the sum to the forger, and Iteft the draft for collection, and upon notice from New York that it had been paid, purchased another draft of the plaintiffs for the balance and sent it to the forger, and the latter draft came into the hands of an innocent purchaser for value, who recovered judgment thereon against the plaintiffs, who had stopped payment and defended at defendant’s request, the equities of the case make the defendants liable over to the plaintiffs for the amount of the draft, the plaintiffs having given defendants prompt notice of the forgery of the first draft as soon as it was discovered; since there was no negligence or improper banking making plaintiffs’ bank responsible to defendants for the amount of the draft.</p>