Jones Bros. v. Citizens' Nat. Bank of Okmulgee

• Decision Date: 15 May 1923
• Docket Number: 11219.
• Citation: 233 P. 472,106 Okla. 162,1923 OK 263
• Parties: JONES BROS. v. CITIZENS' NAT. BANK OF OKMULGEE.
• Court: Oklahoma Supreme Court

233 P. 472

106 Okla. 162, 1923 OK 263

JONES BROS. v. CITIZENS' NAT. BANK OF OKMULGEE.

No. 11219.

Supreme Court of Oklahoma

May 15, 1923

Rehearing Denied Feb. 17, 1925.

Syllabus by the Court.

A drawee bank which pays a check bearing indorsements does not admit the genuineness of such indorsements, and, if any such indorsement is forged, it may recover from the one receiving payment the amount so paid.

A bank receiving a check for collection and crediting depositor's account with amount thereof, upon discovering that a prior indorsement is forged, may charge off the deposit so entered.

Commissioners' Opinion, Division No. 1.

Appeal from County Court, Okmulgee County; Wade H. James, Special Judge.

Action by Jones Bros., a partnership composed of L. R. Jones and Geo. M. Jones, against the Citizens' National Bank of Okmulgee, Okl., for the sum of $150. From a judgment for defendant in a justice court, an appeal was perfected to the county court, from whose judgment for defendant, after unsuccessful motion for new trial, plaintiffs appeal by petition in error with case-made attached. The parties will be hereafter referred to as plaintiffs and defendant, as they appeared in the trial court. Affirmed.

M. A Dennis, of Okmulgee, for plaintiffs in error.

E. T Noble, of Okmulgee, for defendant in error.

LOGSDON C.

This action was commenced in the justice of the peace court in the city of Okmulgee, Okl., wherein the plaintiffs filed their bill of particulars, charging that on or about the 1st day of September, 1916, they were depositors of the defendant bank and deposited with said bank for collection a certain check which they had received in the ordinary course of business said check bearing date of September 9, 1916, and drawn by R. B. F. Hummer in favor of Ira Robertson, teamster, in the sum of $150; that defendant received said check for collection and forwarded same to the First National Bank of Henryetta, Okl., the bank on which it was drawn, for payment; that said check was paid upon presentment and the account of the plaintiffs in the defendant bank credited with said amount, said payment having been made September 21, 1916; that on November 1, 1916, said defendant bank converted the proceeds of said check to its own use; that on November 8, 1916, plaintiffs made demand on defendant for repayment thereof, which was refused; that plaintiffs were bona fide holders of said check for value in due course of business; and that defendant was without authority to convert the proceeds thereof.

Judgment was rendered in said justice court in favor of the defendant from which an appeal was perfected to the county court where defendant filed its answer which, in substance, denied that it wrongfully converted the proceeds of said check to its own use and denied that collection had been made thereof, but alleged that said check was drawn by R. B. F. Hummer on the First National Bank of Henryetta, Okl., payable to Ira Robertson, teamster; that one Ira Robertson, claiming to be the payee in said check, presented the same to plaintiffs with a purported indorsement of the payee thereon, and received from plaintiffs the proceeds of said check; that the payee of the said check never did indorse the same, and never authorized the alleged Ira Robertson to so indorse the same, but that such indorsement was without authority and a forgery; that in due course of business plaintiffs indorsed said check to the defendant, and received credit therefor as a deposit; the defendant in due course indorsed said check and had same presented to the First National Bank of Henryetta for payment, and, payment being refused, defendant charged the amount thereof back to plaintiff's account with defendant.

On October 24, 1919, this cause was submitted to the county court of Okmulgee county without the intervention of a jury and upon an agreed statement of facts. The agreed statement of facts upon which the judgment of the county court was rendered is as follows:

"It is hereby stipulated and agreed by and between the plaintiffs and defendant in the above entitled cause that the facts in said cause are as follows:

That on or about the 1st day of September, 1916, one R. B. F. Hummer wrote a letter to Ira Robertson, addressing it to Okmulgee, Okl., which letter is in words and figures as follows, to wit:

'September 1, 1916.

Mr. Ira Robertson, Okmulgee, Okl.-Dear Sir: The M. O. & G. claim agent has mailed me a check for $200.00 covering your claim, and if you will let me have your exact address or stop at my office I will give you a check.

Yours very truly, R. B. F. Hummer.'

That Ira Robertson received the communication above described from R. B. F. Hummer through the United States mail at Okmulgee, Okl., and that in response to that letter Ira Robertson notified R. B. F. Hummer to send the check mentioned in such communication to his address at 608 East Eighth street, Okmulgee, Okl.

That in response to Ira Robertson's letter the said Hummer inclosed a check in the sum of $150 to Ira Robertson, 608 East Eighth street, Okmulgee, Okl.; that Ira Robertson received the check through United States mail, and shortly thereafter presented the same to Jones Bros., plaintiffs herein, and requested Jones Bros. to cash said check. That said Ira Robertson indorsed said check and delivered the same to George M. Jones, one of the partners of said firm, and the said George M. Jones advanced the said Ira Robertson the sum of $20 on said check, it being after banking hours, and thereafter, on the next banking day, the said George M. Jones called the First National Bank of Henryetta, Okl., the bank on which said check had been drawn by R. B. F. Hummer, and asked one of the employees of said bank, who answered said call, if a check drawn by R. B. F. Hummer on that bank would be accepted for the sum of $150. That said First National Bank of Henryetta, Okl., through its employee, informed said George M. Jones that said check was good, and that that bank would accept the same.

That upon acceptance of said check by said First National Bank of Henryetta, Jones Bros. paid to Ira Robertson the balance of said check, to wit, $130, thereby becoming innocent purchasers for value, without notice of any infirmities or defects in said check.

That thereafter Jones Bros. indorsed said check and deposited the same in the Citizens' National Bank of Okmulgee, defendant herein, for collection. That said Citizens' National Bank gave Jones Bros., plaintiffs herein, due credit for said sum of $150 on their deposit book, and also on the records of the bank; that said check was cleared in the ordinary course of business and paid by the First National Bank of Henryetta, the bank on which said check had been drawn, and duly charged to the account of R. B. F. Hummer.

That a considerable time thereafter, to wit, about one month, R. B. F. Hummer, the maker of said check, discovered that he had mailed the check to the wrong Ira Robertson, and that said check was not received and indorsed by the Ira Robertson to whom R. B. F. Hummer thought he was mailing said check, but in truth and in fact R. B. F. Hummer mailed said check to the Ira Robertson who lived at 608 East Eighth street and who wrongfully indorsed and received payment for said check from Jones Bros., and forged the name of the payee thereto.

That R. B. F. Hummer, upon learning that he had mailed said check to the wrong Ira Robertson, and that it was cashed by the Ira Robertson to whom he had mailed it, placed said check in the First National Bank of Henryetta, and said First National Bank of Henryetta thereupon credited the account of R. B. F. Hummer with said $150, and returned the check through the ordinary course of clearing to the Citizens' National Bank of Okmulgee, Okl., defendant herein, who in turn charged it to the account of Jones Bros., plaintiffs herein, and thereby deprived Jones Bros. of the said sum of $150.

Dated this 17th day of October, 1919. M. A. Dennis, Attorney for Plaintiffs. Moore & Noble, Attorneys for Defendant."

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