70 F. 232 | S.D.N.Y. | 1895
The pension draft in this case was paid to the defendant bank by the subtreasury, upon the forged indorse
In such cases the indorsement by the collecting agent, who has no proprietary interest, does not import any guaranty of the genuineness of all prior indorsements, but only of the agent’s relation to the principal, as stated upon the face of the draft; and as this relation is evident upon the draft itself, the payor cannot claim to have been misled by the indorsement of the agent, or any right to rely upon that indorsement as a guaranty of the genuineness of the payee’s indorsement.
In the case of Onondaga Co. Sav. Bank, 12 C. C. A. 407, 64 Fed. 703, as I find upon examination of the record on appeal, no question like the present arose. The Onondaga Bank was in the same situation as the Bellaire Bank in the present case. It had cashed the forged draft and was collecting the money for its own benefit as owner of the draft. Its indorsement imported a guaranty of the prior signatures; and the defendant’s remedy here is against the Bellaire Bank.
The direction of a verdict for tlie defendant upon the undisputed facts was, I think, correct, and the motion for a new trial should he denied.