Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-04-03
BANKING IN COURT.
Judge Nelson Renders an Important De-
cision Settling Some Fine Points.

The following opinion and judgment was de-
liysred by Judge Nelson, yesterday. AS it in
wolves some novel points, mention OF which
was made in the GLOBE at the time OF trial, the
opinion is given in full:
United States Circuit Court-District OF Min
nesota. g,
N. A. Andressen ct al. vs.. the First Natlsnal
Bank of NoIthfeld, April, l8oO-
Action at law tried before the court Without
jury.
Cameron Losey Il Bum and Geo. Il. Chas'
e. Otis, for plaintiff.
Perkins & Whipple and Gordon E. Cole, for
defendant.
NELSON, J,-This suit is brought to recover
from the defendant two thousand seven hum
dred and twenty dollars and forty-nine
cents with interest from October l. 1878.
The trial is before the court without jury,
and the following are the facts:
The nlaintiffs citizens of the kingdom of
Norway. ara bankers doing business at Chris
tiania. The firm of Wilson q Jurgens, bankers
in the city of La Crosse. wisconsin:
and the correspondents of the plaintiffs, sent
to them printed list of their correspondents
in this country, among whom was the defen-
dant. and authorized the plaintiffs to draw
drafts on them to be paid on account OF Wilson
& Jurgens.
The plaintiff drew draft as fellows:
sChristiania 16. Aug. 1878. For 81, 724.07ct
gold.
change Second unpaid) to the order OF Mr.. Ole
Mikkelsen 80, 723. 81 gold, value received, and
place it to account of w j, without, or as per
advice from N. A. ANDERSEN IL Co..
To the First National bank, Northheld, Mimi
In need with Messrs. Wilson & Jurgens, La
Crosse
The First National bank, Nefthfeld, had no
funds of the plaintiffs, and was unknown to
them except as included among the correspon-
dents of Wilson & Jurgens.
Ole Mikkelsen, the payee In the draft, pre-
sented it to the drawee Sept 7th, 1878, and an
officer of the bank said it was all right; re-
ceived it; paid $24 upon it; issued certificate
of deposit to the payee for the balance, and
made the following entries in the bank books:
Debit. Credit.
Sept. Z, 1878. Certificate of
deposit favor of Ole Mix
kelsen, No.. @l,fOO w
Sept. Z, 1878. Cash paid. "a 81
Sept Z, 1878. Wilson & Jur-
gems, draft forwarded for
collection .S1, IA OF
Sept g. 1878. Draft was in
tercepted and handed to
Batavia bank, La Crosse,
for protest.
Sept. 10, 1878. Certificate
of deposit withdrawn and
cancelled and receipt given
for collection).
W. & J., draft returned. $2,724 81
Certificate deposit account
Cancelled. .............$2,70 700 90
Bills receivable, Mikkelsen
note. II o.
The draft was sent to Wilson & Jurgens by
the First National bank, with request to send
gold draft on New York for amount, and on
&C e. 81 ho 1Tto 1
was subsequently intercepted at La Crosse and
the Batavia bank, having no interest IN 1T,
caused it to be protested at the instance of the
First National bank of Mortified.
The plaintiffs had ample means, some 81, 5OO
on deposit with Wilson & Jurgens when this
draft was drawn. On August 20, 1878, Wilson
& Jurgens were adjudged bankrupts. Their
assets were in the hands of an assignee at the
time the draft was presented for payment by
the Batavia bank.
The draft was returned to ANDERSEN Go.
with the protest and the following letter from
Ole Mikkelsen:
s'NoRTHFIELD, Sept Is, 1878.
Messrs. N. A. ANDERSEN & Co., Christiania:
DEAR SIRs-The draft, $2,724 S7-100, I
bought from you on the 18th of August has
been protested on the grounds that Messrs.
Wilson & Jurgens, of La Crosse, became insol-
vent. return this to you through the First
National bank of this city and Messrs. Knauth,
Machod & Kuhne, New York. for collection.
1 have bargained for farm here and hope
there will be no delay in collecting the amount
of the draft. Yours, etc, OLE MIKKELsEN."
The plaintiffs believing that the defendant
had not paid the draft as it asserted, and that
Wilson & Jurgens had not been able to pay on
account of insolvency, when returned to them
paid it.
On discovering, from a correspondence with
the assignee in bankruptcy and others, the
facts, suit is brought to recover from defend
ant the amount paid.
CONCLUSIONS.
The draft, on its face, indicated that it was
drawn for the account of Wilson d Jurgens, and
if not paid for any reason by the drawee the
holder could apply to Wilson Jurgens for
payment.
Defendant was not authorized TO pay for the
account of the drawers.
The direction being clear, the defendant
could not pay the draft and charge the drawers.
Tn facts proved establish an acceptance of
the draft, charging Wilson 4 Jurgens with the
amount, issuing to the payer, with his consent,
certificate of deposit for all but small Dor
ton, which was paid in money. This was a
payment as to the drawers, and when thus
made cannot be revoked by the drawee so as to
charge them.
Any act which clearly indicates an intention
to comply with the request of the drawer will
constitute an acceptance, and when the draft
is received and the proceeds credited to the
payer who presenta it, the drawee cannot by q
subsequent arrangement with him cancel the
payment and hold the drawer.
1t is true certificate of deposit ia not in law
an extinguishment of a debt or payment
unless there was an agreement to so accept It,
In this case the evidence shows that Mikkel-
sen authorized the deposit of the balance of
the proceeds of the draft net paid to him in
cash to his credit, for his benefit. The I'M
contradicted evidence of Mikkelsen is: II pre-
scented the draft and they said it was all right.
They asked if 1 wanted it right away. They
paid twenty-four or twenty-five dollars, and
gave me note for the money left" Had the
First National Bank failed Immediately after
the certificate was issued and received by Mix
kelsen the loss would have been his: so that
even as between Mikkelsen and the bank the
certificate, whatever It's form as to time when
due, was payment of the draft.
The subsequent payment by the plaintiffs
on the return of the draft protested was made
without full information of all the facts and
the effect of the letter of Mikkelsen was to
mislead them. A payment thus made is not
voluntary, and the amount can be recovered.
Judgment for plaintiffs.
THE COURTS.