Raines v. Grantham

• Decision Date: 01 November 1933
• Docket Number: 195.
• Citation: 171 S.E. 360,205 N.C. 340
• Parties: RAINES et al. v. GRANTHAM.
• Court: North Carolina Supreme Court

171 S.E. 360

205 N.C. 340

RAINES et al. v. GRANTHAM.

No. 195.

Supreme Court of North Carolina

November 1, 1933

Appeal from Superior Court, Johnston County; Grady, Judge.

Action by J. R. Raines and M. B. Raines, trading as the Raines Hardware Company, against Rufus W. Grantham. From a judgment for plaintiffs, defendant appeals.

Affirmed.

Check issued in payment of debt is only conditional payment, and debtor is discharged only by payment.

This is an action to recover of the defendant the sum of $1,046.35 with interest from December 21, 1931; the said sum being the balance due on the purchase price of 36 bales of cotton sold and delivered by the plaintiffs to the defendant.

In his answer, the defendant alleges that he has paid the balance due by him to the plaintiffs on the purchase price of said cotton, and that for this reason the plaintiffs are not entitled to recover in this action.

A trial by jury was waived. It was agreed by the parties that the judge should hear the evidence, find the facts, and render judgment thereon. The judge heard the evidence, and found the facts as follows:

The plaintiffs are now and were during the month of December 1931, merchants and farmers, doing business as a partnership at Princeton, a village in Johnston county, N.C. The defendant is now and was during said month a farmer, residing in Bentonsville township, in said county and state.

On December 2, 1931, the plaintiffs sold and agreed to deliver to the defendant, from time to time, 36 bales of cotton. At the date of the said sale, the defendant paid to the plaintiffs, on the purchase price of said cotton, the sum of $50. This payment was made by a check drawn by the defendant on the Wayne National Bank of Goldsboro, in Wayne county, N C., dated December 2, 1931, and payable to the order of the plaintiffs. This check was presented for payment by the plaintiffs, and was duly paid by said bank on December 6 1931. On December 18, 1931, the defendant paid to the plaintiffs, on the purchase price of said cotton, the sum of $100. This payment was made by a check drawn by the defendant on the Wayne National Bank of Goldsboro, N. C., dated December 18, 1931, and payable to the order of the plaintiffs. This check was deposited by the plaintiffs on December 18, 1931, with the First & Citizens' Bank & Trust Company of Smithfield, N. C., and was thereafter in due course presented for payment, through the mail, and paid by the drawee bank on December 21, 1931.

The delivery of said 36 bales of cotton was completed on December 21, 1931. At about 7 o'clock p. m. on said day, the defendant delivered to the plaintiffs, at Princeton, N. C., in payment of the balance due by him to the plaintiffs on the purchase price of said cotton his check for $1,046.35. This check was drawn by the defendant on the Wayne National Bank of Goldsboro, N. C., dated December 21, 1931, and was payable to the order of the plaintiffs. The check was held by the plaintiffs from the date of its issuance, until December 24, 1931, and was not presented for payment or deposited in bank for collection by the plaintiffs. The Wayne National Bank of Goldsboro, N. C., was open for business during the usual banking hours on December 22, 23, and 24, 1931. It closed at the usual hour on December 24, 1931, and has not since opened for business. On December 27, 1931, the said bank went into liquidation, under the supervision of the Comptroller of the Currency. It has not resumed business. The said check for $1,046.35 has not been presented for payment and has not been paid. From the date of the issuance of said check until the closing of said bank, the defendant had on deposit therein to his credit, and subject to his check, a sum in excess of the amount of said check.

There was no bank at Princeton during the month of December, 1931. The plaintiffs did their banking business during said month with the Bank of Pine Level, N. C., and with the First & Citizens' Bank & Trust Company of Smithfield, N.C. Both said banks are located in Johnston county. The Wayne...