Nurse v. Satterlee

• Decision Date: 28 October 1890
• Citation: Nurse v. Satterlee, 81 Iowa 491, 46 N.W. 1102 (Iowa 1890)
• Parties: NURSE v. SATTERLEE.
• Court: Iowa Supreme Court

81 Iowa 491

46 N.W. 1102

NURSE

v.SATTERLEE.

Supreme Court of Iowa.

Oct. 28, 1890.

Appeal from district court, Hanson county; C. H. LEWIS, Judge.

This action is based upon an agreed statement of facts.The subject-matter of the controversy is the proceeds of a certain draft or letter of credit which the Exchange Bank of Dunlap collected for the plaintiff.After the collection the bank became insolvent, and made an assignment for the benefit of its creditors.The defendant, Satterlee, is the assignee, and the contention between the parties is whether the plaintiff should recover the full amount of the collection, or merely the pro rata amount due to the common creditors of the bank.The district court rendered a judgment and decree for the full amount of the claim, and the defendant appeals.Charles McKenzie, for appellant.

ROTHROCK, C. J.

The material facts as disclosed by the agreed statement are as follows: The plaintiff delivered the letter of credit to the bank on the 31st day of October, 1888, and the bank delivered to him a receipt in these words: “Oct. 31, 1888.Received from A. J. Nurse for collection letter of credit for £>>>>>179. 19s. 7d. from London and Coventry Banking Company. $200 advanced on same.L. A. SHERMAN, Cashier.”The plaintiff at that time had just removed from England to the United States.He fixed his residence in the city of Omaha, Neb., about, or in a short time after, November 1, 1888.The draft or letter of credit was delivered to the bank by C. H. Nurse, the plaintiff's agent, and the $200 advanced was paid by the bank to said agent.On the 6th day of November, 1888, the said bank sent the said letter of credit to the Bank of Montreal at Chicago, and by letter requested a remittance of the proceeds to said Exchange Bank.On the 8th day of November, 1888, the Bank of Montreal sent the following letter to the Exchange Bank: “Chicago, Illinois, November 8, 1888.To Cashier Exchange Bank, Dunlap, Iowa--Dear Sir: In payment of your collection, London and Coventry Banking Company, £ 179. 19s. 7d., received in your favor of the 6th inst.We inclose draft on Bank of New York, $872.45, ex. $.84 3/4.We trust that you are satisfied as to the identity of payee.Yours, truly, J. H. MUNDT, Manager.”On the 10th day of November, 1888, the Exchange Bank made the following entry on its journal: “Arthur Nurse, proceeds of letter of credit, $671,” and a like entry was made at the same time on the credit side of the ledger of the bank.Prior to the 15th day of November, 1888, the cashier of the Exchange Bank advised the said C. H. Nurse of the fact that the proceeds of said letter of credit had been received by the bank, at or about the same time the said C. H. Nurse notified the plaintiff by letter that the money had been collected, and that the proceeds were held by the Exchange Bank subject to plaintiff's order.On the same day that the Exchange Bank made the above entries upon its journal and ledger, it sent the draft for $872.45 to the Council Bluffs Savings Bank with directions to place the same to the credit of the Exchange Bank, which was done.The Exchange Bank had for some time kept an account with the said Council Bluffs Savings Bank against which it drew drafts.The account was kept in the usual manner, and was credited with remittances made and charged with drafts drawn by the Exchange Bank.On the 14th day of January, 1889, the said Exchange Bank made a voluntary...