183 Iowa 1347 | Iowa | 1918
“Tipton, Iowa, June 4, 1914.
“ClTY NATIONAL BANK
“Pay to the order of EL I.. Ball $1,035.00 Ten hundred thirty-ñve and no/100 dollars with ex.
“Lon Fraseur.”
Thereafter, on the same day, Ball endorsed and delivered the check to the plaintiff; but, before paying any money thereon, and before giving Ball credit for the same, plaintiff telegraphed an inquiry to the defendant, as follows:
“Fairfield, Iowa, June 4, 1914.
“City National Bank, Tipton, Iowa.
“Will you pay check for ten hundred thirty-five dollars signed Lon Fraseur for cattle?
“Iowa State Savings Bank.”
The message was promptly delivered, and answered at once, in these words:
“Tipton, Iowa, June 4, 1914.
“Iowa State Savings Bank, Fairfield, Iowa.
“We will pay check for ten hundred thirty-five dollars signed Lon Fraseur.
“City National Bank.”
Plaintiff received the telegram, and, relying thereon, paid Ball the full amount thereof, $1,035. Thereupon, plaintiff promptly forwarded the instrument to its correspondent, the Cedar County State Bank, at Tipton, for collection. On the following day, the last-named bank, having received the check, presented it to the defendant for payment, but was refused, on the ground that “payment had been ordered stopped.” The check is still unpaid, and is the property of the plaintiff. A second presentation and demand were made on June 8, 1914, and met again with refusal. Thereafter,' this action was begun.
The cause was tried, submitted, and decided upon an agreed statement which sets forth the facts as we have hereinbefore recited them. Judgment was rendered for the plaintiff, as prayed; and defendant appeals.
I. The first assignment of error argued by counsel for appellant is based upon the proposition that the record shows no acceptance of the check, and that, without acceptance, appellant cannot be held liable in this action.
If there could be no valid acceptance, except by writing and signing the formal words upon the face of the instrument, the exception would have to be sustained; but this is not the law. Our Negotiable Instruments Statute provides that a bill of exchange does not, “of itself,” operate as an assignment of the funds in the hands of the
The only question presented by the appeal which is open to argument is the one which is considered in the following paragraph.
That a drawee can be held liable only in accordance with the terms of his acceptance or promise to accept, is undeniably true; and the inquiry here is, therefore, whether the addition to the check of the words, “with ex.,” is such that the appellant’s acceptance thereof would impose upon it. any liability in excess of its promise to pay the sum of $1,035. In support of its contention, appellant relies largely upon the decision of this court in Lindley v. First Nat. Bunk, 76 Iowa 629. In that case, one Barro telegraphed to defendant bank, directing it to transmit $2,000 by telegraph to plaintiff at Los Angeles, California, and to charge same to his account. To this, the bank answered that it would pay Barro's draft upon it for $2,000. Thereupon, Barro drew his draft on the bank for $2,000, with exchange on New York, and delivered it to Lindley in payment of a debt. On presentation, the bank refused to pay, and Lindley brought suit. It was held that plaintiff could not recover, because the draff, as presented, requested that the sum named therein should be paid in New York, or in New York exchange, which provision was not in conformity to its promise. Without in any way questioning the soundness of this precedent, as applicable to cases involving a similar state of facts, we regard it as clear that it does not control the question now before us. There is nothing in this check requiring the appellant to pay it elsewhere than over its own counter, to the lawful holder presenting it for payment, or to pay it otherwise than in lawful money of the realm. Had the payee himself presented the check and demanded, not only the sum of $1,035, therein named, but also an additional sum, as exchange on some other named city or town not mentioned in the instrument, no one would for a minute argue that the bank was under any legal obligation to pay such exchange. “Exchange” is generally incident to bills
There is no reversible error in the record, and the judgment below is — Affirmed.