Federal Services Finance Corp. v. Bishop National Bank of Hawaii at Honolulu

The Federal Services Finance Corporation, a Delaware corporation and a depositor in the Bishop National Bank of Hawaii, a national banking association, brought this action against the Bank in the District Court for the Territory of Hawaii to recover the amount of twelve checks which the plaintiff had drawn on the Bank payable to the order of the Waipahu Auto Exchange, Limited. Nine of these checks were cashed at the defendant bank by one Anthony Yee, the president of the Waipahu Auto Exchange, Limited. Yee cashed the other three at the Bank of Hawaii, and the amounts thereof were subsequently deducted by defendant bank from plaintiff’s account. Each check was endorsed “Waipahu Auto Exchange, Limited by Anthony Yee, President”.

Plaintiff’s complaint sounds in contract and alleges that “None of said checks was paid 'by said defendant according to the terms of said checks, to wit: to said payee named therein or to the order of said payee”, and further that “On or about the respective dates of said checks, upon presentation thereof for payment, defendant wrongfully cancelled each said check and wrongfully deducted and withdrew from plaintiff’s said account in the defendant’s said…