Laurence Henderson, Sons, & Co., Ltd, and Liquidator v. Wallace & Pennell [1902] ScotLR 40_70 (05 November 1902)

Laurence Henderson, Sons, & Co., Ltd, and Liquidator v. Wallace & Pennell [1902] ScotLR 40_70 (05 November 1902)

A cheque with the payee's name left blank is a bill of exchange, and the drawers are jointly and severally liable to the bank for the amount advanced, as the bank as holder was entitled to fill in the payee's name.

Citation
[1902] ScotLR 40_70
Parties
Pursuer: Laurence Henderson, Sons, & Company, Limited; Pursuer: James Craig, C. A., Edinburgh, liquidator of Laurence Henderson, Sons, & Company, Limited; Defender: Wallace & Pennell, W. S., Leith, and partners of that firm
Jurisdiction
Scotland
Judgment Date
05 November 1902
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor
Outcome
appeal dismissed; interlocutor affirmed
Legal Topics
Bill of Exchange, Cheque Liability, Joint and Several Liability, Blank Payee, Advance by Bank
Commercial Law Banking Law Bill of Exchange Cheque Liability Joint and Several Liability Blank Payee Advance by Bank

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Parties

Laurence Henderson, Sons, & Company, Limited

Pursuer

James Craig, C. A., Edinburgh, liquidator of Laurence Henderson, Sons, & Company, Limited

Pursuer

Wallace & Pennell, W. S., Leith, and partners of that firm

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Is a cheque with the payee's name left blank a bill of exchange?
  2. 2 Are the drawers of such a cheque liable to the bank jointly and severally (singuli in solidum) or only pro rata?

Ratio Decidendi

A cheque with the payee's name left blank is a bill of exchange, and the drawers are jointly and severally liable to the bank for the amount advanced, as the bank as holder was entitled to fill in the payee's name.

Court Disposition

appeal dismissed; interlocutor affirmed

Orders

  • Court adhered to Lord Ordinary's judgment
  • Defenders jointly and severally liable to relieve pursuers of all claims by the National Bank of Scotland under the overdraft