Farmers' State Bank of Kenefick v. A. F. Hardie & Co.

• Decision Date: 27 April 1921
• Docket Number: (No. 1804.)
• Citation: 230 S.W. 524
• Parties: FARMERS' STATE BANK OF KENEFICK v. A. F. HARDIE & CO.
• Court: Texas Court of Appeals

230 S.W. 524

FARMERS' STATE BANK OF KENEFICK v. A. F. HARDIE & CO.

(No. 1804.)

Court of Civil Appeals of Texas. Amarillo.

April 27, 1921.

Appeal from Dallas County Court; T. A. Works, Judge.

Action by A. F. Hardie & Co. against C. L. Bell, in which the Farmers' State Bank of Kenefick intervened. From an adverse judgment, the intervener appeals. Reversed and rendered.

J. W. Gormley and Thomas, Milam & Touchstone, all of Dallas, for appellant.

Read, Lowrance & Bates, of Dallas, for appellees.

BOYCE, J.

C. L. Bell, a resident of Oklahoma, bought a large quantity of oats from numerous persons in the vicinity of Kenefick, Okl., and paid for them by checks on the Farmers' State Bank of Kenefick, Okl., attaching to his checks on the bank tickets showing the weights of the various purchases. He sold a car of the oats to A. F. Hardie & Co., and shipped them on shipper's order bill of lading attached to draft on said purchasers. This draft was delivered by Bell to the Kenefick bank, which gave him unqualified credit therefor. The bank forwarded the draft through the ordinary channels, and it finally came into possession of the American Exchange Bank of Dallas. The Dallas bank presented the draft and bill of lading to Hardie & Co., and it was paid. But the said Hardie & Co. immediately filed this suit against Bell, alleging that there was a shortage of 113 bushels of oats in said car, of the value of $87.06, and that the said Bell was indebted to the plaintiffs on other items of indebtedness specifically stated, in the sum of $27.98; wherefore said plaintiffs prayed for judgment against said Bell for the sum of $115.04. Hardie & Co. procured an attachment of $115.04 of the said funds in the hands of the Dallas bank. The Kenefick bank intervened in said suit and claimed ownership of said funds. The trial resulted in a judgment for A. F. Hardie & Co. against the said Bell, for the sum of $115.04, with foreclosure of attachment lien on the funds in possession of the Dallas bank and against the claim of the intervener. This appeal is by the intervener from this judgment.

We think the evidence shows that the funds collected on the draft belonged to the Kenefick bank. When the bank gave Bell unqualified credit for the draft, it became the owner thereof and any funds collected thereon. Howe Grain & Mercantile Co. v. Crouch Grain Co., 211 S. W. 946; West Texas National Bank v. Wichita Mill & Elevator Co., 194 S. W. 835; Kadane Co. v. Bank, 219 S. W. 506; Blaisdell v. Bank, 96 Tex. 626, 75 S. W 292, 62 L. R. A. 968, 97 Am. St. Rep. 944. The Kenefick bank was not liable for any failure of the shipment to fulfill the terms of the contract between Bell and the...