80 Miss. 688 | Miss. | 1902
delivered the opinion of the court.
This case falls within Miller v. Bank, 76 Miss., 84 (23 So., 439), which is in accord with and supported by Landa v. Lattin, 19 Tex. Civ. App., 246 (46 S. W., 48); Bank v. White, 65 Mo. App., 679, and Finch v. Gregg, 126 N. C., 176; 35 S. E., 251; 49 L. R. A., 679. We especially refer to the reasoning in Landa v. Lattin as thoroughly sound. There are cases to the contrary of our view, biit they clearly fail to apprehend the true nature of this sort of transaction. The bank buying the draft and bill of lading is bound to comply with all the terms of the contract between seller and buyer. It is placed, as to the buyer, in the exact situation in which its assignor stood. We quote, to adopt, the following from the Texas court of civil apneals:
“The banks know that shipments of this character are seldom made without some understanding between the original assignor and the original assignee (the person to be notified). . . . The real inquiry is as to what effect should be given to this transaction, so far as it related to the rights of appellant, Landa, under the contract between him and Lattin Bros. The correct rule concerning the rights of a nurchaser or an
“Now, the bank, when, by a transfer of the bills of lading
“Now, from these views, the conclusion is reached that the First National Bank of Hutchison, in becoming the owner of the wheat and undertaking to deliver it to Landa, became responsible for the performance of the contract which had been entered into between the latter and Lattin Bros. They could not by delivery of the wheat, and electing to reap the benefits of that contract, and demanding the payment of the sum called for, and receiving the same, take the position that they were not parties to the contract between appellant and Lattin Bros., and that in acquiring title to the wheat they became purchasers thereof unaffected by the burdens of the contract. The facts and circumstances show that the bank undertook its performance, and, such being the case, they had no greater rights against Landa than were possessed by Lattin Bros. The injury to the appellant is in part traceable to the conduct of the bank in delivering to the appellant, and exacting payment therefor, wheat of a damaged and defective quality; and, upon a discovery of the defective quality "of the wheat by Landa, a cause "of action arose in his behalf against the bank, to recover from it the damages he had sustained by reason of the wrong imposed upon him in delivering to him, and exacting from him payment for, damaged Avheat. . . . The inconvenience to which banks may be put, in the manner in which commercial
We think the courts which have taken the other view have dealt with half the transaction — not the whole of it. They have looked to the draft, not to the bill of lading. They have failed to give every factor in the transaction its full .significance, and to look through form to substance.
This is no attachment against a national bank, in any proper legal view. The ease is in chancery. All the parties are before the court for the adjustment of all the equities. The national bank is a mere claimant of the fund; intervening as such claimant, and preferring its claim. Being in equity, the equities can all be adjusted, and the rights of all parties protected. It is a misconception to say that the national bank is in this proceeding attached, within the meaning of the United States statute relied on.
Reversed and remanded.