RICHARD A. SPRINGS and Others, Appellants,
THE HANOVER NATIONAL BANK OF THE CITY OF NEW YORK, Respondent.
APPEAL by the plaintiffs, Richard A. Springs and others, from an order of the Supreme Court, made at the New York Trial Term and entered in the office of the clerk of the county of New York on the 8th day of February, 1911, setting aside the verdict of a jury in favor of the plaintiffs and granting a new trial of the action.
John R. Abney, for the appellants.
Charles F. Brown, for the respondent.
Action to recover $39,000 paid by the plaintiffs to defendant under an alleged mistake of fact. At the conclusion of the
trial the court directed a verdict for the plaintiffs, which, on motion of the defendant, he subsequently set aside and ordered a new trial. The plaintiffs appeal.
At the trial it appeared that the plaintiffs were engaged in business in the city of New York; that the defendant is a national bank located in such city; that the First National Bank of Decatur is also a national bank located at Decatur, Ala.; that Knight, Yancey & Co. was a firm which, prior to being adjudicated a bankrupt, carried on business in buying and selling cotton in the State of Alabama; that prior to the transaction hereafter referred to, they had done business with the Bank of Decatur and also with the plaintiffs; that in January, 1910, they inquired of the plaintiffs upon what terms they could handle cotton shipped to them at New York, to which the plaintiffs replied, giving terms. Nothing further, however, seems to have been done until March 29, 1910, when they telegraphed the plaintiffs that they were consigning cotton to them for delivery and asked advice as to shipping and drawing instructions. The plaintiffs replied by telegraph that they could ship as they thought best, and could draw for eighty-five per cent of the value of the cotton, insuring until it was warehoused. On the same day Knight, Yancey & Co. telegraphed the plaintiffs, 'Have shipped you to-day six hundred bales care Independent Stores. Drew thirty-nine thousand,' and then drew the following draft upon them:
'KNIGHT, YANCEY & Co.,
'Decatur, Ala., U.S. A.
' Mar. 29, 1910, 19 ........ No. 4059.
'Pay to the order of
'W. B. Shackelford, Cashier ($39,000),
'Thirty-nine thousand Dollars for value received and charge same to account of
'KNIGHT, YANCEY & CO.'
'To SPRINGS & CO.,
This draft, on the same day, they presented for discount to the Decatur bank, with what ...