Kerr v. People's Bank

Citations

• 158 Pa. 305
• 27 A. 963
• 1893 Pa. LEXIS 1585

Syllabus

<p>Banks and banking — Wrongful payment of deposit — Agency.</p> <p>William Kerr, the plaintiff, gave money at various times to his brother Varner Kerr, to be deposited for him in a bank. Varner deposited the money in defendant bank, and received a pass book. , The account on the inside of the book was opened thus: “ The People’s Bank, McKeesport,</p> <p>Pa., in account with William Kerr by Varner Kerr, Dr.” William could neither read nor write, but more than onoe Varner exhibited the book to him and said it was all right. Varner retained the book, and at various times drew checks upon the deposit, and lost the money in gambling. Four of the checks which were produced at the trial were signed by “ W. Kerr,” but in the handwriting of Varner Kerr. Other checks were signed “ Win. Kerr by Varner Kerr.” In making the deposit Varner said he was to have entire charge of it. Plaintiff obtained possession of the pass book, and demanded payment of the amount deposited. Held, that as the bank knew that the money belonged to William, the fact that it was deposited by Varner in William’s name and so entered on the books of the bank and in the pass book, warranted no implication of authority in Varner to check it out.</p> <p>Mr. Justice Mitchell filed a dissenting opinion on the ground that, under the agreement by which the deposit was accepted by the bank, Varner Kerr was to have entire charge of the account, to make deposits and to withdraw them. Justices Green and Thompson concurred in the dissent.</p>