First National Bank v. J. L. Mott Iron Works - 258 U.S. 240 (1922)
U.S. Supreme Court
First National Bank v. J. L. Mott Iron Works, 258 U.S. 240 (1922)
First National Bank v. J. L. Mott Iron Works
Argued March 10, 1922
Decided March 20, 1922
258 U.S. 240
A national bank, having advanced money to one who had contracted to supply labor and material for a building, on the security of his assignment of the contract and of payments to be made under it, guaranteed payment of goods afterward sold to the contractor on the faith of the guaranty and used in the work. Held: (a) that whether or not the guaranty was valid as an incident of banking, the bank was liable to the seller, up to its amount, for moneys subsequently arising under the assigned contract which were paid to it or, with its consent, to the contractor, and (b) that, the case having been tried on its merits, the distinction between a recovery on the guaranty and a recovery of the amount so directly or indirectly received on account of it was purely formal. P. 258 U. S. 241.
Certiorari to a judgment affirming a recovery obtained by the respondent on a guaranty made by the petitioner.