THE BANKING CASE.

Manawatu Times, Volume V, Issue 149, 25 June 1881, Page 2

THE BANKING CASE.

IMPORTANT JUDGEMENT. -ci- ■ " "Wedwbsd.it, Junk 22nd, 1881. [Before His Honor Judge Hardcastle.] A. J. Heaton y Bank of New Zealand This was an "action brought to recover the *bir of £200 damages, through the Bank having dishonored a cheque drawn by the plaintiff some ten months since. Mr. Staite appeared for the plaintiff; and Mr. Fitzherbert. instructed by Mr. Perkins; for the Bank of New Zealand. A jury ef four having been sworn Mr. Staite opened the case, and ad-, dressing the Judge and Jury said the plaintiff bad been running a current account for some time and h*d at times done considerable business. On the 16th of June the account *as completely balanced, aad on tbe same day plaintiff put m £10. On the 12th of August plaintiff drew a cheque for £10 which was dishonored. The knowledge of the di«---i honored cheque came to the other Banks and to tbe Manager of the Building Society, and so the injury was done- the plaintiff's credit being thereby destroyed. Here Mr. Staite read the particulars of the case, and proved the wrong.., He went On to shew that where a customer had been wronged by his credit being dishonored by a Bank, he was entitled to secure an action for damages. In this case, the knowledge of the dishonored^ cheque' having come to the other Banks, and to the bill discounter and money lender serious damage had been done. The defence might plead that the matter, was purely a mistake, and that as soeu as soon as it was discovered, the Bank did its best to rectify it. John Albert Heaton, plaintiff, sworn, said : I am m business m Palmerston, as a baker. Previous te coming here I was m business m Bulls. Purine my business career m both places I have had dealings with the Bank. In or about March last, I opened an account with the Bank et New Zealand, Palmerston. The copy produced is acopy of my banking account as received from tbe hand of Mr. Mason, teller m the Bank. Tn June last, T paid m an amomit of £4 10s. Id. At this date my account was balanced. In August I drew a cheque for £10, I had drawn out before none of tbe of £10 4s. Id. I subsequently drew out the 4s Id. I The cheque for £10 was payable to the ; Building Society or bearer. I paid it to Mr. Waldegrave, rra**ager, of the Society, for amount due the society by me (cheque produced), that is the cheque, the words on the bank " refer to drawer," were not written by me. It came to my knowledge that the cheque bad been dishonored. 0 1 consider the cheque having been received by Mr. flffaldegave and returned hy him, did me sufficient damage. At the time of the dishonormentof the cheque there was only one other, Bank the Bank of Australasia .m Palmerston. _ By Mr. Fitzherbert : I had made Bills payable at tbe Bank of New Zealand, when I opened my account at the Bank there were bills current to be paid here. I never said anything about devoting the funds m the Bank to my credit towards

meeting these^Bihs. Mr. M'Kcl vie' s bills were over dne" at this time. I opened my account on March 4th 1880. While my account was running I drew out no money by cheque on soy acconut, but I j:» r eone person a cheque when there were no funds to meet when presented* Other debits were for Bills, the-Barik baa? £62 m other bills which were met. Id^ not give any instructions with with rcf. gard to the £10 4s. Id. I wilLswea**! that. I paid this m on June 16th. 'jWhSri -.ivinjth. 'cheque to Mr Waldegr igi I did mention Mr. M'Kelvie's name. \ never made any arrangements with the Bnnk -with regard-to -the- money-paid^ m. I saw the same cheque as given to Mr. Waldegrave Jin the month j of „ June. .The. reason 'l did not brine this action before, was simply because I was not iv a po*ition to^do so. I have not made any ar7 ringenients as to the'prßCejeds,'in case a verdict is given for me. Twill swear that no" arrangements have been made as to. paying away half of the prpce-ids, I inigW l have told Mr. M'Quarrie, that arrangements had been made, but the 'statement was untrue* but I. did not think Mr. M'Quarrie was going to. make mention of, the matter. I never made any demand for damaares before- (A letter was 1 here put m written by Mr. Staite to the Bank of New Zealand on bc-halfof .the plaintiff* demanding £200 damages). My position has. 'financially improved, now s^ that I am enabled to bring forward; this action, I was not able, to do so before. I instructed Mr. Warburton ;to pay m inane-* on my behalf to meet M'KelyieV bill. ■ - .

By Mr. Staite: The item 'm the account Richter and Co., yas -paid "by cheque, and many, others.-,. . I swear distinctly that all mdnies'paid m by see wa»> not to meet -bills.-.' T swear positively that ther.e has never been any arrangement-* made with ,\fn, g taite with regard to the proceeds of this case. . WVH. Mason, sworn : lam a teller m the Bank of New Zealand, I remember the cheque produced, it was never : presented at ova bank until it was paid; the writing " refer to the drawer' " is mine. The words mean ..non-payment, the cheque was presented to me by the teller of the Bank of Australasia, I do not remember the jlate on which I made the endorsement, the ouly reeerd I have of the cheque 14th, August m my exchange, book, it is an entry m receipt of the cheque from the Bank of Australasia, I cannot remember the exact date on which, the cheqae was presented, it was paid on the 14th August, I believe that was the day it was presented. The first t me I said that the cheque would' be paiili 'but he saw the chtque was vtbin 1 "wrote th% words .. M refer to" drawer;," the exchange book shows tbe cheque as paid at that date, but I think it was paid subsequently it is Jmyjcuftom to J_c«?pt cheque from the banking house** when they are presented to me. On tbel4th ef August there were other cheques whioh I accept, I afterwards ace-pted the cheque upon the instructions from the managers,! de not think I*lihformed Mr. Waldegravewho was present when! told the Band of A ustralasia exchange clerk. Tke statement of Mr. Heaton's account produced is m my writing. The cheque was pre-, sented to me on behalf of Mr. Perkins, but payable to the buiiding society. B.y Hi* Honer : I remember the hour and date on wtrch I went to the other Bank as , exchange, clerk, to present to them the cheques on Bank cf Australasia and receive cheques on the Bank of New Zealand. This is the general routine of the business as exchange clerk. If tbe exchange and bills are coneet they are answered, we can then tell which are lion-red and which dishonored. On this particular day, August 14th. I received this cheque -of plaintiff's for &Is. -I then wrote tbe words " refer to drawer," leav- ! ing it with the- Bank of Australasia with a verbal explanation. The explanation was, that I thought that the money to tbe drawers cred it was to meet pait due bills' ' I told the manager that the chtque had been presented, and asked him if the balance was to meet any special arrangement I told the tiler m the Bank of Aus ralasia within ten minutes of the time ot writing the answer on it that the cheque was right. By Mr .., Fitzherbert : I wrote the words m the belief that the money Was to be devoted to the payment of the bills, or that the funds were appropriated, b. cause on some occasion Mr. Wiarburton's clerk had paid m monies* on Heaton's account for the payment of past due. bills,-/ It is an understanding that the. exchange elerki may refer to their managers before giving answer. , When making an exchange I would have the cheqnes I presented marked down iri my exchange ° book, which I take with me. I hand over tbecbeqnes to the teller and get his initials to the amount if they are correct, If they are not correct tbe word.?' off" is marked against them. The cheque m question was entered iri v*y exchange book, when T went te the Bank it was not written Moff". . ■■'■ ■'■'■' ' By Mr. Staite: The ambwrit of this cheque was not deducted from the ge-. neral balance ef the exchange, I have seen the exchange bock, of the Bank df Australasia "within ten days, it was not entered ' tber*"* I looked ta see if the cheque had been taken oft The entry of Heaton's cheque was made when first presented to me, , it was presented to us but I cannot say whether it was dishonored 'or not at that' time. I don't _tb.ink the Bank was closed. when I re-, turned to the Bank of Australasia with the cheque.' ] l. .A X ■ Edward Tn^ner, sworn, said i I am the manager of th* Bank of Australasia. My exchange /book shows tbe receipt of a cheque signed by Mr. Heaton, and drawn i oa fyvor of the the manager of the Buildicg I remember 'nothing particular about this cheque. The cheque was ■■'• received ; by' Mr. 1 DaiirsOn, my a&conntant. If a cheque endorsed v refer ! to drawer " left the hands ofthe Bank;, I sbonld think it was dishonored, The dishonor of a cheque would not lower *be credit of a man materially,' E, ,W. Perkins, sworn, said:, l am a* solicitor, I know the cheque ,m question. I decline to say m what way the cheque became mine, I was riot aware it was dishonored, I swear that I never knew; it was dishonored, and it was not until I was engaged to defend this action that I knew it had been dishonored. Mr., Staite here, axaamtdfnpyfto the plaintiff m a somewhat lengthy and able speech m whithhe exponnd the law m severest, forms on the 'qnestio% after which .- j.-t. ■■:;■; ; Mr. Fiteherbert addressed the Court for the defence.. W a ; ! His "Honer then addressed the jury on J the points they had to Qonsiier, and the I

jury retired and after about an hour's deliberation returned a verdict for thY plaintiff, with damages Is. St "&^^ f ° r * j^ge«nt for (*"*• YHjs ? Hoiior"%iltd, however, that etch party should pay their own costs.