80 Md. 475 | Md. | 1895
delivered the opinion of the Court.
The case of Anderson v. Gill, Extr., 79 Md., is clearly distinguishable from the one now before us. In Anderson v. Gill, Extr., we held that when the payee of a check drawn on a banker having funds of the drawer available to cash it, presents it in due time through his collecting agent, and the latter, instead of receiving money for it, surrenders it and takes in lieu of the money the drawee’s own check upon another bank having funds with which to pay the substituted check, and then fails to use proper diligence in presenting the substituted check for payment, which, when it is presented, is not paid, because of the supervening insolvency and suspension of the drawer of the substituted check, the loss must fall, as between the drawer and payee of the original check, upon the latter and not upon the former. It is not necessary to repeat the reasons, or again refer to the
Now, in the case at bar, the Buckhannon Bank óf West Virginia, being indebted to the First National Bank of Grafton, West Virginia, and having a deposit with J. J. Nicholson & Sons, of Baltimore, an amount greater than this debt, gave to the Grafton Bank a check on Nicholson & Sons for the amount of the indebtedness due to the Grafton Bank. This check was dated January the eleventh, 1892, and was on the same day mailed to the Grafton Bank, and was received by it on the succeeding day. On that day, the twelfth, the Grafton Bank endorsed the check for collection for its account and forwarded it by mail to its correspondent, the Manufacturers’ National Bank of Philadelphia. On the thirteenth, the Manufacturers’ Bank received it and at once sent it by mail to its correspondent, the National Farmers’ and Planters’ Bank of Baltimore, for collection. On the next day, the fourteenth, the last named bank received it, and at one o’clock presented it, together with other checks and drafts, at the counter of J. J. Nicholson & Sons for payment. Payment was not made in cash, but instead thereof upon the surrender of these checks and drafts, Nicholson & Sons drew their own check on the Western National Bank of Baltimore for the total amount of this and the other checks and drafts, and delivered it to the messenger of the National Farmers’ and Planters’ Bank. In thirty minutes afterwards Nicholson & Sons, having suspended, and being hopelessly insolvent, closed their doors. When the check of Nicholson & Sons to the National Farmers’ and Planters’ Bank was shortly afterwards, but on the same afternoon, and during banking hours, presented to the Western National Bank, payment was refused. Demand was immediately made for the return by the Nicholsons of the surrendered
We are now asked, in the light of these facts, to say that the receipt by the National Farmers’ and Planters’ Bank of this worthless check and the failure to present it within thirty minutes, thereafter, though it is not shown that it would have been paid had it been presented within that time, has resulted' in such an injury to the Buckhannon Bank, as to discharge the látter’s liability to the Grafton Bank; and this, too, though the Nicholsons were utterly unable, by reason of their hopeless insolvency, to pay in cash the check drawn on them by the Buckhannon Bank when it was presented at one o’clock the same day. That is the appellee’s contention, and so the Court below decided. The position is absolutely untenable.
The Grafton Bank having received, on January the twelfth, the check drawn on Nicholson & Sons, was bound to present it for payment in a reasonable time. There being no dispute about the facts, what constituted a reasonable time is a question of law for the Court. Whilst it ■ is undisputed that if the check be drawn on a bank located in the place where the check is delivered, the holder has until the close of business - hours of the next secular day to present it, it is equally the settled-law that if the check be drawn on a bank situated in another place, it should, at the
Judgment reversed and cause remanded with costs above and below.