Bird v. Louisiana State Bank - 93 U.S. 96 (1876)
U.S. Supreme Court
Bird v. Louisiana State Bank, 93 U.S. 96 (1876)
Bird v. Louisiana State Bank
93 U.S. 96
1. A promissory note, bearing date Jan. 28, 1859, payable twelve months thereafter at the Citizens' Bank, New Orleans, and endorsed by A., the payee, and B., the then owner thereof, who resided in Missouri, was, before maturity, placed in the branch of the Louisiana State Bank at Baton Rouge, whose cashier endorsed and forwarded it to the mother bank at New Orleans for collection. It was duly protested for nonpayment by the notary of the mother bank, who mailed notices of protest for the endorsers to the cashier of the branch bank. A., upon whom reliance was principally placed, died, and his executors were qualified before the maturity of the note; but neither they nor B. was served by the branch bank with notice of protest.
Held that the bank was liable for any loss thereby sustained by the holder of the note.
2. As the statute of limitations was suspended in Louisiana during the war, the note was not prescribed when the plaintiffs, the executors of A., made a legal demand on the defendant by instituting this action, Jan. 6, 1870. The defendant, by paying the note at that time, could therefore have been subrogated to their rights, and could have maintained suit against the maker in their names.