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

This case is before us for the second time. On the original appeal we vacated a judgment dismissing appellant’s complaint entered on the motion of appellee Bishop National Bank, defendant below, and remanded the cause for further proceedings not inconsistent with our decision. 190 F.2d 442 .

The suit is for the recovery by appellant of the amount of certain checks drawn by it on appellee Bank and paid by the latter to one Yee, an allegedly unauthorized person, out of appellant’s account on deposit with the Bank. Yee was president of the Waipahu Auto Exchange, Limited, the payee named in the checks. The facts developed on the original trial, plus the by-laws of the Auto Exchange which we held improperly excluded, we thought to be such as to indicate that Yee had no apparent authority to cash the checks, and that he was without actual authority, express or implied, to cash them. Accordingly we held that appellant had made out a prima facie case necessitating judgment of recovery as against the Bank, but said that we could not know how the case would have appeared had the Bank put in its proof. Hence we remanded for the purpose of affording the Bank an opportunity to make such…