Peck v. First Nat. Bank

Decision Date22 May 1890
Citation43 F. 357
PartiesPECK et al. v. FIRST NAT. BANK.
CourtU.S. District Court — Southern District of New York

Henry C. Andrews, for plaintiffs.

Peabody, Baker & Peabody, for defendant.


At the time when the Fidelity Bank received the draft belonging to the plaintiffs for collection, the bank was, according to the agreed statement of facts, 'hopelessly and irretrievably insolvent, as was known to E. L. Harper, the vice-president of the Fidelity Bank, who was then the managing officer of the business of the bank. ' The bank failed the same day, or the next morning, and never resumed business. Under these circumstances, it was a fraud upon the plaintiffs, on the part of the bank, to acquire their property upon the faith of its apparent prosperity, without disclosing the real situation. The Fidelity Bank, therefore, did not acquire any title to the draft, or its proceeds. Railroad Co. v. Johnston, 10 S.Ct. 390. The restrictive indorsement upon the draft was notice to the defendant that the Fidelity Bank was merely an agent for the plaintiffs to collect the proceeds, consequently the defendant did not acquire any better title to the draft, or its proceeds, than the Fidelity Bank had. Judgment is ordered for the plaintiffs.

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4 cases
  • United States National Bank of Omaha v. Geer
    • United States
    • Nebraska Supreme Court
    • December 9, 1897
    ... ... D. McHugh, for plaintiff in error ...          References: ... Metropolitan Nat. Bank v. Loyd, 25 Hun [N. Y.] 101, ... 90 N.Y. 530; First Nat. Bank of Elkhart v ... Armstrong, ... City Bank of Sherman v. Weiss, 67 Tex. 331; ... White v. Miners Nat. Bank, 102 U.S. 659; Peck v ... First Nat. Bank, 43 F. 357 ...           ...           [53 ... Neb ... ...
  • Hart v. Evanson
    • United States
    • North Dakota Supreme Court
    • November 24, 1895 al. v. Hadley, Receiver, etc., 1 N.E. 537; American Trust & Savings Bank v. Gueder & Paeschke Manufacturing Co., 37 N.E. 227; Peck v. Bank, 43 F. 357; Wasson v. Hawkins, 59 F. 233. Ultimate facts found by a jury in a special verdict, if sufficient to state a cause of action, will support......
  • Wasson v. Hawkins
    • United States
    • United States Circuit Court, District of Indiana
    • January 5, 1894
    ...Co. v. Johnston, 133 U.S. 566, 10 S.Ct. 390; Cragie v. Hadley, 99 N.Y. 131, 1 N.E. 537; City of Somerville v. Beal, 49 F. 790; Peck v. Bank, 43 F. 357. In the case of v. Hadley, supra, it was held that the acceptance of a deposit by a bank hopelessly insolvent constituted such a fraud as en......
  • Higgins v. Hayden
    • United States
    • Nebraska Supreme Court
    • December 9, 1897
    ... ... creditor. (National Commercial Bank v. Miller, 77 ... Ala. 168; St. Louis & S. F. R. Co. v. Johnston, 27 ... F. 243; Ditch v. Western Nat. Bank, 10 Banking L. J ...          The ... alleged insolvency ... the president of the [53 Neb. 63] bank, who at first ... hesitated to allow credit for the draft, but on ... plaintiff's ... Gueder & Paeschke Mfg. Co., 150 ... Ill. 336, 37 N.E. 227; Peck v. First Nat. Bank, 43 ... F. 357; Wasson v. Hawkins, 59 F. 233.) The ... ...

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