Stout Lumber Co. v. Hayes

Citation25 F.2d 841
Decision Date17 April 1928
Docket NumberNo. 5167.,5167.
PartiesSTOUT LUMBER CO. v. HAYES.
CourtUnited States Courts of Appeals. United States Court of Appeals (5th Circuit)

C. Huffman Lewis, J. D. Wilkinson, and W. S. Wilkinson, all of Shreveport, La., for appellant.

A. S. Drew, of Minden, La., for appellee.

Before WALKER, BRYAN, and FOSTER, Circuit Judges.

BRYAN, Circuit Judge.

The Stout Lumber Company accepted Hayes' check for $6,727.86 in payment of a debt. It brought this suit against him on the pre-existing debt, alleging in its petition that the check was presented for collection to the bank on which it was drawn, but was not paid. The defense was that the debt was discharged by the check on the ground that plaintiff's loss was caused either by an unreasonable delay in presenting the check for payment, or by negligence in mailing it for collection to the bank on which it was drawn. The District Judge, before whom the case was tried, under a written stipulation waiving a jury, gave judgment for defendant, and plaintiff appeals.

On February 21, 1925, both plaintiff and defendant were engaged in business at Cotton Valley, La. On that date defendant bought from plaintiff a quantity of lumber, and delivered as payment his check upon the Bank of Cotton Valley for the amount sued for to its agent, payable to its order. On February 23 plaintiff deposited that check in a bank at Little Rock, Ark., and on the same day that bank forwarded it for collection to the Hibernia Bank at New Orleans. On February 27 the Hibernia Bank forwarded that check to the Bank of Cotton Valley. In the ordinary course of the mails the check should have been received at Cotton Valley within two days at the most, but at some time not stated the Bank of Cotton Valley reported that the check had not been received by it. On or about March 25 plaintiff notified defendant that his February check had been lost, and immediately received from him, upon its request, another check on the Bank of Cotton Valley for the same amount. That check was handled in the same way as the first one was. It was forwarded by the Bank at Little Rock to the Hibernia Bank at New Orleans, and by the Hibernia Bank on March 30 to the Bank of Cotton Valley along with other items for collection. On April 9 the Hibernia Bank received from the Bank of Cotton Valley remittances for all items except the check in question, and immediately wired demanding payment of that check or its return. On April 14 the Hibernia Bank received a draft of the Bank of Cotton Valley, dated April 11, on the First National Bank of Minden, La., for the amount of the check. There was no delay in sending that draft to the Minden bank, but the Bank of Cotton Valley was closed by the state bank examiner on the same day that the Minden bank received it. The Minden bank would have paid the draft, although it did not have on deposit to the credit of the drawer funds sufficient to pay it in full, except for the fact that payment was stopped by the state bank examiner.

The Bank of Cotton Valley marked defendant's check paid and...

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