Sims v. American Nat. Bank

• Decision Date: 20 February 1911
• Citation: 135 S.W. 356
• Parties: SIMS et al. v. AMERICAN NAT. BANK OF FT. SMITH.
• Court: Arkansas Supreme Court

135 S.W. 356

SIMS et al. v. AMERICAN NAT. BANK OF FT. SMITH.

Supreme Court of Arkansas.

February 20, 1911.

Appeal from Circuit Court, Sebastian County; J. S. Maples, Judge.

Action by Alice Sims and another against the American National Bank of Ft. Smith. From a judgment for defendant, plaintiffs appeal. Reversed, and judgment entered for plaintiffs.

Appellants brought this action against the American National Bank of Ft. Smith, Ark., on a draft for $500, which Alice Sims had purchased from said appellee, said draft being drawn upon the Mechanics-American National Bank of St. Louis, and payable to the order of Jesse Sims.

The complaint alleged: "That on the 14th of September, 1909, the said plaintiff Alice Sims bought from the defendant, the American National Bank of Ft. Smith, Ark., a draft on the Mechanics-American National Bank of St. Louis, Mo., for $500, payable to the order of her coplaintiff, Jesse Sims, and said Alice Sims paid said American National Bank the sum of $500 for said draft, and said draft was thereupon delivered to plaintiff Alice Sims." A copy is attached and marked, "Exhibit A." That the money represented by said draft belonged to said Alice Sims. That said Jesse Sims caused said draft to be presented to said Mechanics-American National Bank of St. Louis, Mo., for payment with his genuine indorsement, and said Mechanics-American National Bank refused to pay the same. That afterwards the said Alice Sims demanded payment of said draft of said American National Bank, and it refused to pay same. Prayer for judgment of the amount, with interest. The answer admitted the purchase of the draft and payment of the money as alleged; denied that Jesse Sims presented the draft for payment to the Mechanics-American National Bank, and that said bank refused to pay same; alleged that it sold the draft upon said drawee bank, and at the time had funds in said bank upon which it had a right to draw to a larger amount than the draft, and immediately credited said drawee bank with the amount of said draft, and paid the same to the said Mechanics-American National Bank of St. Louis, the drawee, before said draft was delivered to the payee, Jesse Sims; alleged upon information that Alice Sims sent the draft to some one at Nacona, Tex., by the name of Jesse Sims, and that the Farmers' & Merchants' National Bank of Nacona, Tex., purchased same from some one representing himself to be Jesse Sims, and cashed and paid full value therefor after said draft had been indorsed by said Jesse Sims or the party representing himself to be Jesse Sims; that thereafter said draft was paid by the drawee in the due course of business; that it discharged its full duty by delivery to Alice Sims of a good and valid draft upon the drawee bank in which it had funds sufficient to meet the payment, "and which drawee did pay and cash said draft when the same was presented to it, purporting to have been indorsed by the payee Jesse Sims." That plaintiff failed to notify defendant of the refusal of the drawee bank to pay said draft after its presentment.

The testimony tended to show that on the 14th day of September, 1909, Alice Sims purchased from the appellee a draft for $500 payable to the order of Jesse Sims and drawn on the Mechanics-American National Bank of St. Louis; that she, pursuant to an agreement had with her brother and coplaintiff, Jesse Sims, sent said draft to Jesse Sims in a registered letter, addressed to Jesse Sims at Nacona, Tex., intended for her said brother and coplaintiff; that the registered letter containing said draft was delivered by a rural route carrier at Nacona, Tex., to some person other than the plaintiff Jesse Sims, which person represented himself to such carrier to be Jesse Sims; that said person to whom said letter was delivered by said carrier took the draft therefrom, wrote on the back thereof the words "Jesse Sims," and presented the same to the Farmers' & Merchants' National Bank of Nacona, Tex., which bank took said draft and gave to said person so presenting the same the sum of $50 and deposit certificate for $450; that the indorsement of the name "Jesse Sims" on the back of the draft was a forgery, and was unauthorized by Jesse Sims, the brother of Alice Sims. The said Farmers' & Merchants' National Bank indorsed said draft, and guaranteed all prior indorsements, and deposited same with the Merchants' & Planters' Bank of Sherman, Tex., which on September 20, 1909, indorsed it and guaranteed all indorsements and deposited it with the National Bank of Commerce of St. Louis, Mo. The said draft was presented on the 22d day of September, 1909, to the drawee, said Mechanics-American National Bank and paid by it, and the amount $500 charged up against the American National Bank of Ft. Smith, Ark., the drawer, which had funds in the drawee bank more than sufficient to pay said draft. In the ordinary course of business the draft was returned to the appellee as a voucher. The appellee was notified by appellant Alice Sims that she had received a letter purporting to be from her brother, which she regarded as a forgery. The testimony was conflicting as to whether this occurred before or after the return of the draft to appellee. In the latter part of January, 1910, the appellee delivered to Alice Sims the said draft, which had been returned to it as a voucher, and the same was indorsed by Jesse Sims, and it was presented for payment to the Mechanics-American National Bank of St. Louis, and payment was by said bank refused, because it had already paid said draft once. On February 14th appellants demanded the payment of $500, the sum for which the draft was issued from the appellee, the American National Bank of Ft. Smith, at the time advising of its presentment to the drawee and its refusal to pay, and payment of said sum was refused. The draft reads: "American National Bank. No. 25,763. Ft. Smith, Ark. Sept. 14, 1909. Pay to the order of Jesse Sims $500.00, five hundred and no-100 dollars. E. M. Dickerson, Asst. Cashier. To Mechanics-American National Bank of St. Louis, Mo." Indorsed on the back: "Jesse Sims." "Jesse Sims." "Pay to the order of any bank or banker, previous indorsements guaranteed, Sept. 20, 1909. Merchants' & Planters' National Bank, Sherman, Tex., C. B. Dorchester, Cashier." "Pay to the order of any bank or banker, all prior indorsements guaranteed, Farmers' & Merchants' National Bank, ____, Texas. ____, Cashier." Another indorsement is so dim it cannot be deciphered.

Alice Sims testified when she got the letter from Nacona, Tex., acknowledging receipt of the draft, she knew it was not from her brother, and went to the American National Bank, and told Mr. Ball, the cashier, that she had received such a letter, and was sure her brother did not get the money; that she gave him the letter later on, she thought, and he said it was their funeral if somebody cashed it without being identified. On September 25th, three days after the draft was paid by the drawee on the 22d, she wrote the bank at Nacona, Tex., asking information...