Valenzuela

Roberto Valenzuela appeals a judgment dismissing his action against the Bank of America (Bank) after the Bank’s demurrer was sustained without leave to amend.

Valenzuela sold cattle to a Texan named Feffer for a net price of $41,727.01. Feffer, through an agent, executed a “bill of sale draft” on November 25, 1966, on the Brawley branch of the bank for the purchase price. Valenzuela delivered the draft to a Mexican bank for collection on November 26, 1966. The Mexican bank presented the bill of sale draft to the Brawley branch of the bank for payment on Wednesday, November 30, 1966. The third banking day later, Monday, December 5, 1966, the Bank returned the draft to the Mexican bank unpaid.

Exhibit “A” to the complaint, a copy of the bill of sale draft, is reproduced here: [See following two pages.]

California Commercial Code, section 4302 reads: “In the absence of a valid defense such as breach of a presentment warranty (subdivision (1) of Section 4207), settlement effected or the like, if an item is presented on and received by a payor bank the bank is accountable for the amount of

(a) A demand item other than a documentary draft whether properly payable or not if the bank,…