The First National Bank of Meadville, Pennsylvania, Respondent v. the Fourth National Bank of the City of New York…

Summary

The New York Court of Appeals reversed the judgment that awarded the plaintiff the full amount of the draft, holding that the collecting bank was liable only for the actual or probable damages caused by its negligence, which were deemed nominal. The court affirmed that the agent's duty required prompt presentment and that, absent proof to the contrary, the drawer is presumed solvent and liable.