Iron City Nat. Bank v. Fort Pitt Nat. Bank

Citations

• 159 Pa. 46
• 28 A. 195
• 1893 Pa. LEXIS 1475

Syllabus

<p>Banks and banking — Ghecks—Forgery—Act of April 5, 1849.</p> <p>Under the act of April 5, 1849, P. L. 426, the mere acceptance or payment of forged paper is no longer of itself a bar to the recovery of the money by the party paying, even though it be a bank or other drawee, nor is such party absolutely bound as at common law to discover and give notice of the forgery on the very day of payment. All that he need do in any case is to give notice promptly according to the circumstances and usage of the business, and, unless the position of the party using the money has been altered for the worse in the meantime, it would seem that the date of notice is not material. But on the other hand the statute does not dispense with the necessity of care and diligence on the part of the payer nor exempt him from the consequences of his own negligence, if thereby loss would accrue to tho other party.</p> <p>Plaintiff, a bank, received a check on Dee. 19th, paid it, entered it on its books, and then dismissed it from further attention. Pive days after-wards plaintiff’s attention was called to the check, and an investigation was made which resulted in the discovery that the drawer’s name had been forged. In the meantime defendant, a bank, which had received the money, paid it out. Held, that plaintiff was guilty of want of due diligence, and was not entitled to recover back the money.</p>