Tibby Bros. Glass Co. v. Farmers & Mechanics Bank

Citations

• 220 Pa. 1
• 69 A. 280
• 1908 Pa. LEXIS 718

Syllabus

<p>Banks and banking — Checks—Contractual relation — Payee—Drawee— Bight of action — Forged indorsement.</p> <p>In Pennsylvania, there is no contractual relation between the payee of an unaccepted check and the bank on which the cheek is drawn, and no action will lie by the payee in his own name against the bank although it has sufficient funds of the drawer at the time payment is refused.</p> <p>A check is neither a legal nor an equitable assignment or appropriation of a corresponding amount of the drawer’s funds in the hands of the drawee, and it gives the payee no right of action against the drawee, nor any valid claim to the funds of the drawer in his hands.</p> <p>Where a bank cashes, on forged indorsements, cheeks drawn on other banks in favor of one of its own depositors, and subsequently receives the amounts of such checks from the drawee banks, the depositor has no right of action against the bank to recover such moneys, as moneys received for the depositor’s benefit.</p>