BANKS AND BANKING - PAYMENT OF CHECK AFTER REVOCATION - RIGHT OF DRAWEE TO RECOVER FROM PRESENTER

Defendant drawee-bank, negligently disregarding a stop-payment order received from drawer on the previous day, paid a check to a collecting bank. Return of the money was immediately demanded, and the collecting bank thereupon refused to forward it to the next correspondent or to plaintiff payee. In this action by payee, the collecting bank interpleaded drawee bank. Held, that drawee may recover, for despite its negligence, the payee had not changed his position and would not be prejudiced by having to return the inadvertent payment.

Foster v. Federal Reserve Bank of Philadelphia, (D. C. Pa. 1939) 29 F. Supp. 716.