Case Over Cheque Being Stopped claim fo: $1,863.15 and interest, cheque. for which sum had been Yoeeived by plaintiff, but had been Slorped, was heard in the US. Court for China on Monday, Dec. 23, before Judge Milton J. Helmick. The plaintiffs were the Sino-Continental Company. represented by Dr. Grossman, and the defendants, represented by Mr. Felthan Watson, wore the Kota American Drug Ca.
'The petition, which was denied' on various grounds by the defendants. slated that on September 9, 15: plnintifa received from Messrs. Eddie Glass Fuclory a cheque drawn on the Kincheng Banking Corporation by the defendants in favour of Messrs Eddie. Glass Factory in the amount of $1,803.15, dated October 8, 1935, find endorsed in blank by the' antee. 'The cheque was received by plaintisls from the Eddie Gliss Factory' in poyment of goods sold and delivered by plaintiffs to the glass company. At) the time when plaintiffs received the cheque fom the lass factory. they had no knowledge of the els cumstances under which the gloss factory eeeived the cheque from the defendants. The plaintiff attempted to collect the cheque, through the bank, dur the cheque was returned Ili spite of demands, defendants stil refused to pay the cheque.
Evidence was given by Mr. Albert] Gregoire, of the Sine-Continental Company, Mr. Yung Kw manager of the Eddie Aerated Water!
ind of the Eddic Glass Factory, of. the American Drug Ca., and the case was feoncluded after both counsel had summed up, judgment being reserved.
Giving judgment on Monday dismissing. the claim, "Judge Helmick Plainti! sues defendant on a cheque dated October 8, 1935, on the Kincheng Banking Corporation, payable to Messrs, Eddie Glass Factory In the sum of $1,563.15. The cheque was selually drawn about September: 9 and post-dated to October 8, 1995.
defendant crossed out the words or bearer" on the printed form of the cheque and stamped it, "account payee only." Nevertheless, the cheque {was endorsed in blank by the payee and delivered to the plaintiff, who deposited "it for" collection. Before: the due date, the defendant stopped payment because of defences and [counter-claims against the payee, who went. into. liquidation - during the month of September. The intention of the defendant to stop payment was communicated to the plaintiff September 13. The claim of the defendant against the payee for bout $4,000 was not controverted at the trial, but the plaintiff contended itis entitled to recover on the cheque without reference to. any defences which the defendant may have! against the payee, It appears clear that the cheque Iwas "not a negotiable instrument under the terms" of the uniform negotiable instruments Inw which in force in the District of Columbia and most of the American states. The striking out of the words "or bearer" on the printed form not only Indicated a clear intention to render non-negotiable, but actually effect ed' the purpose." According "to the Negotiable Instruments "Act, "an Instrument to be negotiable " must conform to the following requirements:.... Mth—Tt_must be payable to order or to bearer.
Although the rule in England and Canada Is otherwise, the Aimeriean Courts have universally held a cheque Tike the one here "non-negotiable. [This proposition is ably discussed in the ease of Haggard v. Mutual oUt and Refining Company, 263 S. W. 145, See also Essing v. Porter, 112 1005; Rotiman v. "Havenat, 202 Pac.
344; Sweetwater ice aid Cold Storaye Company v. Continentat State Bank, 212'S, W. 740; Weems v, Meblett, 202; W. 990; Charleston National [Bank v, "Lemkucht-Shepherd Com pany, 125 S. E24 3. 183.
It'ig true that a non-negotiable instrument may* pass by assignment.
jofences existing against the payee in that ease it Is subject, J. 301 and cases cited in notes). See also American National Bank v.
Warren 100 N.Y.S. 413, and Haggard Mutual Oi and Refbuing Company. subra. The application—of this familiar rule to the case at bar dis poses of plaintit's contention, and consequently judgment will be one tered for the defendant, **Pult text of judgment next 1
Text read from the printed page and cleaned; old type leaves the occasional error.