Armstrong v. American Exch. Nat'l Bank of Chicago - 133 U.S. 433 (1890)
U.S. Supreme Court
Armstrong v. American Exch. Nat'l Bank of Chicago, 133 U.S. 433 (1890)
Armstrong v. American Exchange National Bank of Chicago
Nos. 1110, 1111
Submitted January 13, 1890
Decided March 3, 1890
133 U.S. 433
APPEALS FROM THE CIRCUIT COURT OF THE UNITED
STATES FOR THE SOUTHERN DISTRICT OF OHIO
On June 14, 1887, the Fidelity National Bank of Cincinnati drew a draft for $100,000 on the Chemical National Bank of New York City, payable to the order of the American Exchange National Bank of Chicago, and put it into the hands of one W., who delivered it for value to K. & Co. They endorsed it for deposit to their account in the Chicago Bank, which credited its amount to them and paid their checks against it. It was not paid. Held that the draft was a foreign bill of exchange; that W. did not act as the agent of the Cincinnati Bank, and that in a suit by the Chicago
Bank against the receiver of the Cincinnati Bank, which had failed, to recover the amount of the draft, the Chicago Bank was a bona fide holder and owner of it for value, and want of consideration could not be shown by the receiver.
The fact that the draft was payable to the order of the plaintiff was not notice to it that W. was not its purchaser or remitter, and the Cincinnati Bank had represented to the plaintiff that W. was a bona fide holder of the draft, for his use in making good trades of his with K. & Co.