BANKS AND BANKING - LIABILITY OF BANK UPON PAYMENT OF THE CHECK OF AN INSANE DEPOSITOR WITHOUT NOTICE OF THE INSANITY

Authors

William L. Howland, University of Michigan Law SchoolFollow

Abstract

The plaintiff, as trustee for a depositor, sought in this action to charge the defendant bank with the amount of a check drawn by the depositor while insane. On the ground that the depositor was an inmate of the state hospital for the insane, the plaintiff had been appointed his trustee. Subsequent to this appointment, the depositor drew the check in question, and the defendant paid the amount of the check to the payee. Held, in the absence of actual or constructive knowledge of the insanity, a payment by a bank of the check of an insane depositor is a valid discharge of its obligation to the depositor. Poole v. Newark Trust Co., (Del. Super. Ct. 1939) 8 A. (2d) 10.

Recommended Citation

William L. Howland, BANKS AND BANKING - LIABILITY OF BANK UPON PAYMENT OF THE CHECK OF AN INSANE DEPOSITOR WITHOUT NOTICE OF THE INSANITY, 38 Mich. L. Rev. 536 (1940).
Available at: https://repository.law.umich.edu/mlr/vol38/iss4/9