S. Weisberger Co. v. Barberton Savings Bank Co.

Citations

• 84 Ohio St. (N.S.) 21

Syllabus

<p>Liability of drawee bank — To drawer of check fraudulently endorsed ■ — -By party having same name as payee — Negligence of drawer in delivery of check — Releases liability of drawee bank, when.</p> <p>W. being indebted to R., whose place of business W. knew to be 48 Walker street, New York City, drew a check on his local bank of deposit in favor of R. for the amount of the debt, without designating therein his place of business, and enclosed the check with a letter in an envelope which he through mistake addressed to R., 48 Walker street, Cleveland, Ohio, and caused the envelope and contents so addressed to be mailed in the usual way, and it arrived in Cleveland in due course of mail, where the letter carrier found no one of that name on Walker street of that city, but found a man whose name was R. on Henry street and to whom the carrier delivered the letter. He opened it and took possession of the check, and by endorsing the name R. on the back thereof obtained the cash from an acquaintance, who endorsed and deposited said check in his bank of deposit in Cleveland. The latter bank endorsed it over to another bank in the same city, guaranteeing prior endorsements, and this bank endorsed it payable to any bank or bearer, guaranteeing all prior endorsements, and in this condition it was presented to the drawee bank, by it paid and charged to W.’s account, it having no knowledge of said mistake in addressing the letter. 'W. afterwards discharged his debt to the New York creditor by other means and brings suit against the drawee bank to recover the amount of the check so charged to his account.</p> <p>Held: The drawer of the check was first in fault, and as his negligence contributed directly to its wrongful and fraudulent appropriation, he is not entitled to recover.</p>