American Nat. Bank of Powell v. Foodbasket
| Decision Date | 02 June 1972 |
| Docket Number | No. 4031,4031 |
| Citation | 497 P.2d 546 |
| Parties | 10 UCC Rep.Serv. 1207 AMERICAN NATIONAL BANK OF POWELL, Wyoming, Appellant (Defendant and Third-Party Plaintiff below), v. FOODBASKET, a partnership, Appellee (Plaintiff below), v. Pat McPHERSON (Third-Party Defendant below). |
| Court | Wyoming Supreme Court |
Before McINTYRE, C. J., and PARKER and McEWAN, JJ.
The previous opinion, reported at 493 P.2d 403, is hereby withdrawn, rehearing in the above-entitled appeal having been granted.
The appeal was from a summary judgment in favor of plaintiff Foodbasket. The circumstances reflected by the record were that Pat McPherson was employed by Foodbasket as a bookkeeper from 1965 to 1967 and again from January 5, 1968, until September 5, 1970. Her duties were those of an 'office girl.' checking invoices, making deposits, collecting insufficient fund checks, etc. She worked approximately twenty-four hours a week and was paid $2.25 an hour. On September 1 or 2 she gave notice to Foodbasket that she was quitting her employment at the end of that week. Normally, receipts for Friday, Saturday, and Sunday of each week were deposited the following Monday and Tuesday. The deposit slip for Friday, August 28, 1970, prepared by Pat McPherson, and deposited at the First National Bank of Powell Friday, September 4, 1970. included a check in the amount of $2,900 dated September 1, payable to Foodbasket, drawn by Pat McPherson on American National Bank of Powell. A deposit slip for the receipts of Saturday, August 29, 1970, was also prepared by Pat McPherson and deposited at the First National Friday, September 4. This deposit included a check in the amount of $5,500, dated August 31, 1970, payable to Foodbasket, drawn by Pat McPherson on American National. Foodbasket's endorsement of both checks was made by Pat McPherson, which procedure was authorized as a general practice. The checks 'evidently replaced cash,' 1 and the drawer at no time involved herein had sufficient money in her account to pay the checks. Obviously, she was aware of this fact and at approximately 1 p. m. on September 4, 1970, contracted the vice-president and cashier of American National, advising him that she had written the checks and that they would be coming to the bank, requesting a loan to cover them. She was informed that American National could not make the loan. The two checks were delivered by First National to American National on September 8, and they were not returned by that bank until September 11. The amounts of the checks were charged back by First National to Foodbasket, which later brought the present action against American National to recover the $8,400, liability being claimed against the defendant bank under the provisions of § 34-4-302, W.S.1957 (1971 Cum.Supp.), defendant answering, inter alia, that plaintiff had no reason to expect or right to require the said checks be accepted or paid, or that acceptance of such checks by the plaintiff and the signature and endorsement of the plaintiff upon the checks were unauthorized and wholly inoperative. Summary jugment issued for Foodbasket in the amount of $8,400.
American National in its appeal points out that under § 34-4-302, if it did not give notice until after the midnight deadline, it is accountable for the amounts of the checks only in the absence of a valid defense. Defendant claims that notice of dishonor was given to Pat McPherson orally on September 4 and that since she was the employee and agent of Foodbasket notice to her was sufficient. It also points out that § 34-3-511, W.S.1957 (1971 Cum.Supp.), provides, inter alia, notice may be entirely excused when a party has no reason to expect an instrument will be honored, urging that the record shows Pat McPherson, as Foodbasket's agent, had no reason to expect...
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