A stockbroker sold bank shares for certain clients for pounds 2900, and received from the buying broker, in accordance with the usage of the Stock Exchange, a cheque for that amount in his favour. This cheque he lodged with his bankers, pounds 2000 being put to his own account, which was at that time overdrawn to the extent of pounds 6200, and a draft upon the bank’s branch in London, where he had an account, being given him for pounds 900. He shortly thereafter absconded.
Held ( aff. judgment of the Second Division) that everything having been done in the ordinary course of business, the broker’s clients had no claim against the bank for repayment of the sums contained in the cheque, which had properly been applied to reduce the broker’s indebtedness.
Judges:
Lord Chancellor (Herschell), and Lords Watson, Morris, and Shand
Citations:
[1893] UKHL 950
Links:
Jurisdiction:
Scotland
Banking
Updated: 24 March 2022; Ref: scu.633303