17 N.Y. 205, Graves v. American Exch. Bank

Citation17 N.Y. 205
Party NameGRAVES v. THE AMERICAN EXCHANGE BANK.
Case DateMarch 01, 1858
CourtNew York Court of Appeals

Page 205

17 N.Y. 205

GRAVES

v.

THE AMERICAN EXCHANGE BANK.

New York Court of Appeal

March 1, 1858

Page 206

COUNSEL

George N. Titus, for the appellant.

George Barker, for the respondent.

Page 207

COMSTOCK, J.

Charles F. Graves of Mendota, Illinois, being the creditor of H. C. Hurd of Perrysburgh in the State of New-York, had directed the latter to send the amount of the debt to him in "a check on the Marine Bank of Chicago or any other way that was safe. " It is quite clear that such a direction justified the debtor in procuring the draft now in question and sending it by mail to his creditor. It follows from this that the draft on being mailed properly addressed would become the property of the creditor and that he would take the hazard of its safe transmission. There was a mistake however in directing the package to the wrong post-office in Illinois, it being sent to La Salle instead of Mendota. If, in consequence of this mistake, it had never reached Mendota, Graves might very likely have insisted that his directions had not been complied with and that the draft therefore had not been placed at his risk. But the error was corrected by the person sending the draft, by a new direction given through the post-master at Perrysburgh, and the letter containing the inclosure was duly forwarded to the right place. When it reached there I see no reason to doubt that the draft became the property of the person to whom it was directed and for whom it was intended. He moreover asserted his title to the instrument by assigning it to the plaintiff thereby waiving his objections, if he could make any, founded on the supposed departure from his instructions in sending it forward. Upon all the facts there is scarcely room for doubt that the debt of Hurd to Graves was satisfied and that being so, the title to the draft necessarily passed to Graves and from him to his assignee the plaintiff. On this point of title we have been referred to Talbot v. The Bank of Rochester, (1 Hill, 295).But in that case the certificate was mailed without the previous knowledge or request of the party to whom it was sent. It was therefore, I think, properly held that until actually received the title remained in the person who sent it.

Page 208

The defendants on whom the draft was drawn paid it upon the indorsement of another Charles F. Graves residing at or near La Salle who wrongfully took it from the post-office at Mendota. Such a payment although made in good faith did not divest or impair the title of the true owner who had not seen or indorsed the paper. It is well settled that a forged indorsement does not pass a title to commercial paper negotiable only by indorsement, and does not justify the payment of such paper. (Talbot v. The Bank of Rochester, supra; Canal Bank v. Bank of Albany, 1 Hill, 287; Story on Bills,§ 451 and cases cited).In this case if the indorsement of the payee's name was not technically a forgery it was at all events spurious and false, and therefore equally inoperative to change the title. The point appears to have been...

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78 practice notes
  • 140 S.W. 981 (Ark. 1911), O. J. Lewis Mercantile Company v. Harris
    • United States
    • Arkansas Supreme Court of Arkansas
    • November 13, 1911
    ...discharged. Daniel on Neg. Instruments, (3d ed.), par. 574; Id. par. 1230; 50 N.Y. 410; 19 Ill. 572; 80 Ky. 289; 91 N.Y. 106; 70 N.W. 769; 17 N.Y. 205. Story on Bills of Exchange, 587; 86 N.W. 483; 36 S.W. 387; 66 P. 326; 52 S.W. 848; 51 N. E. (Mass.) 16; 48 A. (R. I.) 480; 98 Ark. 1; 10 Ar......
  • 419 P.2d 847 (Kan. 1966), 44555, Mackey-Woodard, Inc. v. Citizens State Bank of Cheney
    • United States
    • Kansas Supreme Court of Kansas
    • November 5, 1966
    ...(1868); Shaffer v. McKee, 19 Ohio St. 526 (1869); Johnson v. First Nat. Bank, 6 Hun 124 (N.Y.1875); Graves v. The American Exchange Bank, 17 N.Y. 205 (1858); The Indiana National Bank v. Holtsclaw et al., 98 Ind. 85 (1884); Universal Carloading & Distributing Co. v. South Side Bank, 224......
  • 133 S.W. 357 (Mo.App. 1910), Missouri Lincoln Trust Company v. Third National Bank of St. Louis
    • United States
    • Missouri Court of Appeals of Missouri
    • December 30, 1910
    ...Troy v. Sixth Nat. Bank of N. Y., 43 N.Y. 452, 3 Am. Rep. 718; White v. Cont'l Nat. Bank, supra (64 N.Y. 316); Graves v. Am. Exch. Bank, 17 N.Y. 205.]" Rossi v. National Bank of Commerce, another of the cases before cited, presents a case where plaintiff had endorsed for accommodation ......
  • 164 N.Y. 498, Clark v. National Shoe & Leather Bank
    • United States
    • New York New York Court of Appeals
    • November 20, 1900
    ..., 126 N.Y. 327; Conville v. Shook, 144 N.Y. 688; Weiser v. Denison, 10 N.Y. 68; Welsh v. G. A. Bank, 73 N.Y. 424; Graves v. A. E. Bank, 17 N.Y. 205; Bergin v. Hitchings, 22 A.D. 395.) No negligence by plaintiff in examining the stated accounts and vouchers was pleaded or proved. (Weiser v. ......
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78 cases
  • 140 S.W. 981 (Ark. 1911), O. J. Lewis Mercantile Company v. Harris
    • United States
    • Arkansas Supreme Court of Arkansas
    • November 13, 1911
    ...discharged. Daniel on Neg. Instruments, (3d ed.), par. 574; Id. par. 1230; 50 N.Y. 410; 19 Ill. 572; 80 Ky. 289; 91 N.Y. 106; 70 N.W. 769; 17 N.Y. 205. Story on Bills of Exchange, 587; 86 N.W. 483; 36 S.W. 387; 66 P. 326; 52 S.W. 848; 51 N. E. (Mass.) 16; 48 A. (R. I.) 480; 98 Ark. 1; 10 Ar......
  • 419 P.2d 847 (Kan. 1966), 44555, Mackey-Woodard, Inc. v. Citizens State Bank of Cheney
    • United States
    • Kansas Supreme Court of Kansas
    • November 5, 1966
    ...(1868); Shaffer v. McKee, 19 Ohio St. 526 (1869); Johnson v. First Nat. Bank, 6 Hun 124 (N.Y.1875); Graves v. The American Exchange Bank, 17 N.Y. 205 (1858); The Indiana National Bank v. Holtsclaw et al., 98 Ind. 85 (1884); Universal Carloading & Distributing Co. v. South Side Bank, 224......
  • 133 S.W. 357 (Mo.App. 1910), Missouri Lincoln Trust Company v. Third National Bank of St. Louis
    • United States
    • Missouri Court of Appeals of Missouri
    • December 30, 1910
    ...Troy v. Sixth Nat. Bank of N. Y., 43 N.Y. 452, 3 Am. Rep. 718; White v. Cont'l Nat. Bank, supra (64 N.Y. 316); Graves v. Am. Exch. Bank, 17 N.Y. 205.]" Rossi v. National Bank of Commerce, another of the cases before cited, presents a case where plaintiff had endorsed for accommodation ......
  • 164 N.Y. 498, Clark v. National Shoe & Leather Bank
    • United States
    • New York New York Court of Appeals
    • November 20, 1900
    ..., 126 N.Y. 327; Conville v. Shook, 144 N.Y. 688; Weiser v. Denison, 10 N.Y. 68; Welsh v. G. A. Bank, 73 N.Y. 424; Graves v. A. E. Bank, 17 N.Y. 205; Bergin v. Hitchings, 22 A.D. 395.) No negligence by plaintiff in examining the stated accounts and vouchers was pleaded or proved. (Weiser v. ......
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