Wellington National Bank v. Robbins

Citations

• 71 Kan. 748
• 81 P. 487
• 1905 Kan. LEXIS 224

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Negotiable Instruments — Forged Indorsement■ — -Contract of Subsequent Indorser. When an indorsement is forged upon a genuine bank-check, or the name of the payee is placed thereon without authority, and the check is transferred and paid by a bank not the drawee, which in turn indorses it and collects it from the drawee bank, the latter is under no obligation to inquire as to the genuineness of the first indorsement, as the second indorser guarantees the genuineness of the prior indorsement.</p> <p>2. - Recovery by Drawee from Prior Indorser. In such' a case, if the payee brings suit against the drawee, and the latter gives notice to its immediate indorser, requesting it to assume the direction and control of the defense, which it neglects to do, and the drawee employs counsel and defends the action in good faith, and judgment is rendered against it for a portion of the claim and it pays such judgment, the drawee is entitled to recover of its immediate indorser the amount of the judgment so paid, together with all necessary and reasonable attorney’s fees and expenses incurred in such defense.</p>