Odd Fellows Home v. Velenchick Bros.

Citations

• 73 Pa. Super. 153
• 1919 Pa. Super. LEXIS 192

Syllabus

<p>Corporations — Treasurer—Use of corporate money.</p> <p>Where a treasurer of a corporation gives the check of his corporation, signed by him as treasurer, in exchange for another check payable to his own order by a partnership which was-endorsed by the treasurer individually and cashed by him, the partnership is put upon inquiry as to the authority of the treasurer to use the corporate funds, and if it fails to make such inquiry and the treasurer is in fact without authority, the partnership will be liable to the corporation to the amount of such cheek.</p> <p>In an action to recover the amount of such check wrongfully issued by the treasurer of the corporation, the case is for the jury where the evidence establishes the fact that the defendants had no business or corporate transactions with the plaintiff, and that under the circumstances they must have known that the treasurer of the plaintiff company was using the corporate funds for his personal and private ends and were put upon inquiry as to his authority for such use, but did not make any such investigation.</p>