Bank of Big Cabin v. English

• Decision Date: 10 May 1910
• Citation: 111 P. 386,27 Okla. 334,1910 OK 115
• Parties: BANK OF BIG CABIN v. ENGLISH.
• Court: Oklahoma Supreme Court

111 P. 386

27 Okla. 334, 1910 OK 115

BANK OF BIG CABIN v. ENGLISH.

Supreme Court of Oklahoma

May 10, 1910

Rehearing Denied Nov. 1, 1910.

Syllabus by the Court.

The credit given the plaintiff by the bank under the circumstances of this case may be charged back to him in case of the inability of the bank to collect the money necessary to make the deposit good, unless the bank has been negligent in its duty to exercise ordinary care and diligence to make the collection.

Error from District Court, Craig County; T. L. Brown, Judge.

Action by J. G. English against the Bank of Big Cabin. Judgment for plaintiff, and defendant brings error. Reversed and remanded.

Seymour Riddle, for plaintiff in error.

W. H Kornegay, for defendant in error.

KANE J.

This was an action commenced by the defendant in error, plaintiff below, against the plaintiff in error, defendant below, to recover a deposit alleged to have been made by the plaintiff in the defendant bank. There was judgment for the plaintiff below, to reversed which this proceeding in error was commenced.

It seems that on or about the 22d day of October, 1907, the plaintiff shipped from the station of Big Cabin, Okl., to Kansas City, Mo., a car load of hogs, consigning the same to the commission firm of Byers & Co., of Kansas City, with instructions to sell said hogs and forward the proceeds derived from said sale to the Bank of Big Cabin, Craig county, Okl., to be credited to the shipper. The commission firm sold the hogs, and on the 24th day of October, 1907 deposited with the Interstate National Bank its check to be placed to the credit of the Bank of Big Cabin for J. G English, said check being accompanied by written duplicate advice to this effect, one of which was kept by the bank and the other receipted and returned to the commission firm. In the course of the same afternoon, the deposit slip and advice reached the bookkeeper of the Interstate National Bank, and he asked the cashier if the credit should not go through the Banker's Trust Company of Kansas City, Mo. The cashier looked in the Banker's directory, and found the Bankers' Trust Company was designated as the correspondent of the Bank of Big Cabin, and told the bookkeeper to change the credit and place it on the books of the Interstate Bank for the Bankers' Trust Company Kansas City, to be credited to the account of the Bank of Big Cabin, Okl., for J. G. English, which was done. On the same day the Bank of Big Cabin was advised of this transaction by postal card by the Interstate Bank, as follows: "We credit your account by direction of J. G. English, $909.99 Banker's Trust Company, Kansas City, Mo." The Bankers' Trust Company was also notified of the transaction by post card, as follows: "We credit your account by direction of J. G. English, $909.99, account of Bank of Big Cabin, Oklahoma." On the 26th day of October, 1907, the Bankers' Trust Company drew on the Interstate Bank for the amount of this credit, and the draft was paid through the clearing house. The Bank of Big Cabin received the card of advice from the Interstate Bank on the 25th day of October, 1907, and immediately gave the plaintiff credit for the amount stated therein upon the books of the bank. Two or three days after this, the plaintiff dropped into the bank, and the credit was entered on his passbook. At this time the cashier of the bank told the plaintiff that the bank had received the advice, showed him the credit card, and told him that he had credited his account on the strength thereof. On the 28th day of October, 1907, the Bankers' Trust Company closed its doors, and the Bank of Big Cabin, not having secured the money to make good the credit to the plaintiff, charged the same back against him upon its books, whereupon, after demand and refusal of payment, this suit was commenced. It further appears that the Bankers' Trust Company was not the correspondent of the Bank of Big Cabin, and that on the 29th day of October, 1907, the Bank of Big Cabin advised the Interstate National Bank by letter as follows: "Big Cabin, Ind. Ter. Oct. 29, 1907. Inter State Nat'l Bank, Kansas City, Kans.--Gentlemen: Your advice of the 24th states that you have placed $909.99 to our credit at Bankers T. Co. K. C., Mo. for use of J. G. English. We desire that you get this money where we can get it, as have never given you any instructions to put anything in this bank for us and we will look to you to protect us. Trusting that you will take this matter up at once and arrange it satisfactorily, we are, yours truly. Robert E. Lee, Cash." And on the same day said Bank of Big Cabin advised the plaintiff by letter, as follows: "Big Cabin, Ind. Ter., Oct. 29, 1907. J. G. English, City--Dear Sir: The bank of K. C. in...