Seaboard National Bank v. Central Trust & Savings Co.

Citations

• 253 Pa. 412
• 98 A. 607
• 1916 Pa. LEXIS 859

Syllabus

<p>Banks and banking — Check for collection — Payment by bank before collection — Suit to recover amount paid — Agreement between collecting and drawee bank — Defenses■—Case stated — Judgment for plaintiff.</p> <p>In an action by a collecting bank to recover from its principal the amount of a check forwarded to plaintiff by defendant for collection, and which was dishonored after plaintiff had paid the amount thereof to defendant, the defense was that the check had been paid; it appeared that plaintiff had made an agreement with the bank upon which the check was drawn that checks presented for collection should be paid immediately and that if during business hours of the day of presentment any of such checks should be dishonored plaintiff should reimburse the drawee bank in the amount thereof; that the check in question was presented to the drawee bank and paid, and that during business hours of the same day, it was returned to plaintiff as worthless, and that plaintiff immediately reimbursed the drawee bank for the amount of such check. It appeared that defendant was ignorant of the arrangement between plaintiff and the drawee bank until after the drawee bank had been reimbursed for its payment of the check. On a case stated to determine plaintiff’s right to recover from defendant the amount of the check, the lower court entered judgment for plaintiff. Held, no error.</p> <p>Monongahela National Bank v. First National Bank of California, Pa., 226 Pa. 270, distinguished.</p>