National Bank of the Republic v. Hines

Citations

• 112 Wash. 352
• 192 P. 899
• 1920 Wash. LEXIS 751

Syllabus

<p>Banks and Banking (31)—Drafts—Deposits for Collection— Ownership of Draft. It Is conclusively presumed that a bank becomes the absolute owner of a draft where, without any other agreement, it is indorsed and delivered to the bank by a regular customer whose checking account is given credit for the full amount; and it is immaterial that the bank reserved the right to charge back the draft against the customer’s account in case of nonpayment.</p> <p>Carriers (23)—Bills of Lading—Wrongful Delivery of Goods. Where a bank held bills of lading and the property represented thereby as collateral security for the payment of a draft purchased, a delivery of the property by a carrier without surrender of the bills of lading, and acceptance by a third person, was wrongful as against the bank, since no person other than the bank had a right to the bills of lading or the property until the amount it was entitled to receive had been paid.</p> <p>Same (26). Where property represented by a bill of lading and held by a bank as collateral security for payment of the draft and bill of lading was wrongfully converted, the measure of the bank’s damages is the value of the property, up to the amount of the draft, regardless of the fact that in purchasing the draft an overdraft of the seller was paid to the bank.</p> <p>Same. In such case, the bank can recover the value of the property, without deduction of the freight paid to release the property, where the defendant received the amount of the freight from another when it wrongfully converted the property and sold it to defendant.</p> <p>Same (23)—Wrongful Delivery of Goods—Bills of Lading— Rights of Innocent Purchaser. Id such a case, the consignee of the property represented by the bills of lading, though having paid for. the property, is not entitled to possession as against the bank, where the seller had possession of the property, the bills of lading were issued to him and he delivered them to the bank, the bank having no knowledg