National Bank v Martin
| Jurisdiction | Scotland |
| Judgment Date | 24 July 1848 |
| Date | 24 July 1848 |
| Docket Number | No. 1 |
| Year | 1848 |
| Court | Court of Session (Inner House - First Division) |
Ld. President, Presiding Judge.
Agent and Principal—Bill of Exchange—Bank.—
ALEXANDER MARTIN, farmer, Inversanda, drew a bill for L.300 for the accommodation of Duncan Cameron, farmer, Pollock, which was accepted by Cameron, and discounted by him at the National Bank's agency at Fortwilliam. This bill, which fell due on 23d May 1842, six months after Martin's death, was dishonoured by Cameron, and was protested against him for non-payment, against the drawer and acceptor for recourse, and against all concerned for interest, damages, and expenses. Cameron, the acceptor, was afterwards sequestrated; and Martin's executors having refused to pay the bill, the National Bank raised the present action against them.
They pleaded in defence;—
That Cameron had been a tenant of Sir James Miles Riddell of Ardnamurchan, to whom, at Whitsunday 1842, he renounced his lease, and assigned over the whole stock on his farm, valued at L.2630. After deducting rent and other debts due to Sir James Riddel by Cameron, there remained a balance due to the latter of L.1382: 2: 10½, for which, on 30th June 1842, Mr Kennedy, factor for Ardnamurchan, granted his promissory-note to Cameron. This note, Dr Martin's executors averred, was on its date, or the day after, indorsed by Cameron, and discounted by Mr Thomas Macdonald, writer, Fortwilliam, agent for the National Bank there, with the Bank, and the proceeds placed to Cameron's credit in his account with them. The proceeds of the note were thus placed with the Bank, on the implied obligation that they should apply them first to the payment of Cameron's proper debts which were then due to them. Accordingly the bank, or Mr Macdonald as their agent, had paid two bills of Cameron's past due, amounting to L.755; but instead of applying any part of the balance of L.598 to the bill now sued for, which was also past due, they had applied it in payment of a promissory-note for L.360, by Cameron to themselves, and of another bill between Cameron and his brother-in-law, for whom Macdonald acted as agent, neither of which was due for several months. A balance of L.47 still remained, which it was said the Bank had allowed Macdonald to retain in payment of an account due by Cameron to himself. It was further averred, that although the protest on this bill was duly taken on 23d May 1842, it was not recorded till 21st November; and although a warrant of charge...
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