439 F.2d 910 (10th Cir. 1971), 202-69, Security State Bank v. Baty

Docket Nº:202-69.
Citation:439 F.2d 910
Party Name:SECURITY STATE BANK, Pharr, Texas, Plaintiff-Appellee, v. Paul A. BATY, Denfendant-Appellant.
Case Date:March 22, 1971
Court:United States Courts of Appeals, Court of Appeals for the Tenth Circuit

Page 910

439 F.2d 910 (10th Cir. 1971)

SECURITY STATE BANK, Pharr, Texas, Plaintiff-Appellee,

v.

Paul A. BATY, Denfendant-Appellant.

No. 202-69.

United States Court of Appeals, Tenth Circuit.

March 22, 1971

Page 911

Burton J. Johnson, Oklahoma City, Okl. (Watts, Looney, Nichols & Johnson and Robert L. Huckaby, Oklahoma City, Okl. on the brief), for plaintiff-appellee.

Howard B. Austin, Oklahoma City, Okl. (Perry H. Winn, Oklahoma City, Okl., on the brief), for defendant-appellant.

Before PICKETT, BREITENSTEIN and SETH, Circuit Judges.

BREITENSTEIN, Circuit Judge.

A frustrated plan to obtain Mexican silver pesos has produced a tangle of legal problems. Payment on two $10, 000 checks, given by defendant-appellant Baty for the pesos, was stopped after plaintiff-appellee Security State Bank of Pharr, Texas, had paid out the amount of the checks. The bank brought a diversity action in the Western District of Oklahoma against Baty and secured a jury verdict in its favor. Baty appeals from the judgment entered against him for $20, 000 plus interest.

Baty, a Lawton, Oklahoma, business man, collects coins. McClung, a coin dealer, met one Zambrito who represented that he could get Mexican silver pesos more cheaply than any one else. Baty and McClung joined forces in a venture to be financed by Baty. McClung was to seek out, inspect, and receive the pesos. They expected a $4-5, 000 profit. Baty who had an inactive account at the First National Bank of Apache, Oklahoma, phoned Tom Manar, the president of that bank, and said: 'Tom, I would like to write a couple of checks through your bank and am buying some merchandise and when they reach you, you telephone me and I will bring up the money to cover them.' At the request of Zambrito and his associate Floyd Park, Baty signed two checks for $10, 000 each, drawn on the Apache Bank and payable to Floyd Park.

On December 7, 1965, McClung delivered the checks to Park and asked that they not be cashed because they would not be honored until he (McClung) had inspected the coins. Park took the checks to the Security Bank where he had been a customer for several months and where he had a 'medium three figure account.' He told Norris, the executive vice-president of the Security Bank, that he had a backer in Oklahoma and was going to Mexico on a coin deal. He asked that the checks be cashed and that he be given Mexican...

To continue reading

FREE SIGN UP