• -6D 8- - COMMONWEALTH- -BLDG.- -&-- LOAN ASS'N ._ - [1_87 - MCHUGH. COMMONWEALTH BUILDING & LOAN ASSOCIATION v. MCHUGH. 4-3051 Opinion delivered June 19, 1933 BILLS AND NOTES—PAYMENT OF CIIECK.—Where a payee sent a check to the drawee for payment, and the drawee promptly charged
ARK.] ,CON MON-WEAL/T.11 BLDG. & LOAN ASS 'IN v. 629 MdfluGH. the check . to the 'drawer's account, this eStablished the relation of creditor and debtor between the payee and drawee, and- the drawer was not liable on the. drawee's failure to cash a draft drawn on it by the payee. Appeal from - •Mississippi -Chancery Court, OsCeola Dis.trict ; J. M. Fittrell, Chancellor ; affirmed. • Johii for appellant. • Gladish& Yowity, for -appellee... . ' HUMPHREYS, J. , This suit was brought by appellant-'against appellee in the chancery 'court of Mississippi 'County, -Osceola. District,• to cancel two certificates Of investment: stock issued and delivered to him by appellant, one for $500• and tbe'other . for $300, with alternate prayers that aPPellee be required to pay $800 for them or for their return. If *was alleged in the complaint that ap-Pellee had not paid • for the stock. • 'Appellee filed an answer admitting the delivery of the two certificate§ of stock to him, but denying that he had failed to pay for same. • The 'Cause was stbinitted to the chancery court upon the pleadings and lestimony;from which the court found that appellee had paid for the stock, and, based upon that finding, rendered a judgment dismissing appellant's complaint, froin which is this appeal. -• - The facts respOnsive to the issue of payment are undisputed and, in substance, are as follows : On December 12, 1031, appellee Made written applications through appellant's agent, W. W. Prewitt, to aPpellant for the paid up certificates of investment stock -and drew bis cheCk in favor of appellant on the Bank Of Osceola, where the agent and appellee resided, fOr $800 and delivered same • to the agent. The agent bad no au,- thority to indorse or- cash the • check, so he attached the check to the applications 'and mailed them on the same day tO appellant in Little Rock. • Appellant received the Check on . the 14th and-immediately _issued the stock certificates to appellee and mailed them_ to its agent,- who.. delivered them • to appellee Oli the 15th. On the same day, it deposited the check in the Bankers' Trust Coinpany at Little• Rock for collection and took- credit for same on
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MOTIUgH. its account. The Bankers' Trust Company- forwarded .the check directly to the Bank . of Osceola, on which it was drawn, for. payMent, there being no . other bank in the city of Osceola. The Osceola bank reCeived the check on December 15; stamped same-`.` Paid" on that date, and charged same to- the account, of appellee.' The- Bank of Osceola remained open and- transacted all kinds . of .business until December:181 -On the. 17th it forwarded its draft to the Bankers' TruSt• Company for the amOunt of $800 to. Over the. item . it had charged. appellee's account on the 15th.- . The. Bankers.' Trust : Company received the draft for $800 7 drawn . , on the,.:Union. Trust Company, where the Bank of Osceola had- sufficient .funds on deposit to pay same, but it : refused to cash the draft because it was reported on the morning of the 18th that the Bank of Osceola had closed its doors. Appellee had on deposit - in the Bank of Osceola more than enough to. pay the check it drew on said, bank to appellant in payment of the stock certificates, and, when the-check was charged to his account- and stamped paid,:,it still; left a balance in the bank in his ' favor. . After . the _Bank Commissioner toOk charge of the Bank of. Osceola, the Bankers' Trust Company returned the draft to . him, and he returned the check to the Bankers' Trust Company.and reversed the entry . of.paymentand. charged the check .back-to the account of a.ppeliee. The Bankers' Trust Company reversed.its. entries, on its books •and returned the : check to appellant. -, _Under the Jaw, appellant became _a creditor of _the Bank -of Osceola and the Bank of Osceola, a debtor to it, because the- Bankers' .Trust Company. did not send the check to the Bank of Osceola for collection but for payment out , of -the , . account of appellee.- ,The Check. was _promptly paid, and the.relationship of creditor arid debtor was:established between them. It was, a closed transaction between the Bank -of Osceola. and appellee. He passed out of the picture, his only duty being to have money in the Bank of Osceola to pay the check if it arrived within a reasonable time. The principle thus announced and applicable to the facts in the instant case
may be fonnd in the . cases of Taylor v. D&mott Groóery Commi,ssion 'Company, 185 Ark7, 45 S:' W. (2d) 23; and Bank of Conway v. Hiegel,.ante p. 313. • • No error appearing; *the deere'e is affirmed.
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.