BILLS AND NOTES - LIABILITY OF DRAWER OF BANK DRAFT - STATUTE OF LIMITATIONS

Authors

John P. Cofrin, University of Michigan Law SchoolFollow

Abstract

On April 1, 1918, defendant bank's predecessor issued a draft. The draft was negotiated by the payee to the plaintiff on August 10, 1937; presentment, refusal of payment, protest, notice of protest and dishonor all took place on that day. Defendant suffered no loss by reason of the delayed presentment. In a suit to enforce its liability as drawer, the defendant demurred on the ground that the complaint showed the action was barred by the statute of limitations. Held, the cause of action does not accrue in the sense that word is used in the statute until presentment, dishonor, and the taking of the necessary proceedings on dishonor have occurred. Presentment, dishonor and subsequent action are not merely preliminary steps to the enforcement of a remedy but are steps necessary to the creation of a duty in the defendant. The statute therefore affords no defense to the action. Dean v. Iowa-Des Moines Nat. Bank & Trust Co., (Iowa, 1938) 281 N. W. 714.

Recommended Citation

John P. Cofrin, BILLS AND NOTES - LIABILITY OF DRAWER OF BANK DRAFT - STATUTE OF LIMITATIONS, 38 Mich. L. Rev. 90 (1939).
Available at: https://repository.law.umich.edu/mlr/vol38/iss1/12