FINE BANKING POINT.

Otaki Mail, 3 September 1923, Page 3

FINE BANKING POINT.

NATIONAL LANK v. JOHN (iULDLU. MAG t A iII:..SLK\ !. 11 DECISION. At the liDAtun S.M. court On the -Or!i June last., tile National Bank ui New Zealand, Ltd., proceeded against John Bolder, oi Ku.\t<>n, jeweller, for recovery oi the sum oi A~l Os I'd, the amount of a cheque issued ! ,v the defendant, to “Joe .Vyev\ ' and crossed •‘Banks' Before Avery had paid the cheque into his account with the* plaintiff, the fiefendaiit Telegraphed Avery that ire had stopped payment. The "cheque was payable to “Joe Avery” or order and was endorsed , “J. j” Avery” when paid into Avery's credit in 'file plaintiff built. The cheque was returned by defendants hankers at Poston marked “Payment stopped, endorsement irregular.” Ihe plaintiff hank then get in touch with Avery and had the cheque again endorsed “Joe Avery" and presented >t to defendant's bankers who again returned it ‘‘payment stopped.” In the meantime the plaintiff had advanced Avery £l9 10s Ud against the cheque. Legal argument as previously reported was addressed by Mr Cooke for plaintiff and Mr Bergin for defendant. The b.-M. reserved his decision which was now delivered as toiiows: “In this action the plaintiff is sueincr the defendant on a dishonoured cheque —payment of which was stopped on presentation alter the Bank hud a; thev were entitled to do s'’e 5 H&Ubury, p 499, c. 845, and McLean v rivdsrlale Bank 9 A.C. 99} made

V. L*l\usucllti rsclillY vf “•* advances against it to then] customer to the extent, of £'i I j. Tiie actual amount owing to the Bank is tti ids 9d in rny opinion the hank were holders lor’ value and as such entitled to sue upon the cheque after its dishonour on presentation. It is suggested that, because the first endorsement on the cheque was irregular that, the Bank’s claim must fail but defendant admitted that Joe Avery is J, J. Avery and that the endorsements were in the handsv'ruing of Joe ' Avery, and the case of Leonard v. Wilson 3 L 3. Ex. 171 shows that ail 1 irregular endorsement can be cured ' and the cheque re-presented.' ■ ’Tuiiyuwit will be ior the plamtiff