Security Bank v. Northwestern Fuel Co.

• Decision Date: 10 July 1894
• Docket Number: No. 8717.,8717.
• Citation: 58 Minn. 141
• Parties: SECURITY BANK OF MINNESOTA <I>vs.</I> NORTHWESTERN FUEL CO.
• Court: Minnesota Supreme Court

58 Minn. 141

SECURITY BANK OF MINNESOTAvs.

NORTHWESTERN FUEL CO.

No. 8717.

Supreme Court of Minnesota.

Argued July 2, 1894.

Affirmed July 10, 1894.

Appeal by defendant, Northwestern Fuel Company, from an order of the District Court of Hennepin County, Robert D. Russell, J., made February 10, 1894, denying its motion for a new trial.

On April 7, 1893, defendant drew its check for $418.12 upon the Bank of Minneapolis and delivered it to Milo G. Phillips who was doing business at Minneapolis under the name of Mill Wood Company. He on the same day deposited the check with the plaintiff, the Security Bank of Minnesota, indorsed, "For deposit in Security Bank to the credit of the Mill Wood Co.," and had credit on its books in his account for the amount. Defendant claimed that its agent at Minneapolis gave this check to Phillips by mistake, that Phillips was largely indebted to it and that next morning, April 8, it stopped payment of the check. The Security Bank brought this suit upon the check claiming that title to it passed by the indorsement and deposite. The trial court so held, and ordered judgment for plaintiff. The Fuel Company moved for a new trial. Being denied it appeals.

C. D. & Thos. D. O'Brien, for appellant.

Hale, Morgan & Montgomery, for respondent.

MITCHELL, J.

The defendant gave its check for $418.12 on the Bank of Minneapolis, payable to the order of the Mill Wood Company, which was a customer of, and had a deposit account with, the plaintiff, on which it was accustomed to deposit cash and checks, which were credited to its account, and against which it was authorized to draw its checks. On the same day on which the Mill Wood Company received the check it indorsed it, "For deposit in the Security Bank to the credit of the Mill Wood Company," and deposited it, with other checks, with the plaintiff, receiving a deposit slip, and being credited with the amount on its deposit account. Immediately preceding this deposit the Mill Wood Company's account was overdrawn, but, after making this deposit, and another, made the same day, there was a balance to its credit of $376.30, including the credit for the check in question. The next morning it drew checks against its account, which were paid, which overdrew its account $363.72, and this overdraft has never been paid. Subsequently, on the same day, the check was duly presented for payment to the Bank of Minneapolis, but was dishonored, for the reason that the defendant had forbidden its...