B-137876, JUL. 6, 1959
Highlights
YOU NOW PROPOSE TO OBTAIN RELEASES FROM THE PAYEES OF THE SIX CHOCKS WHICH WERE DISALLOWED. YOU SAY THAT THERE IS A POSSIBILITY THAT THE PAYEES OF AT LEAST SOME OF THE DISALLOWED CHOCKS. CAN BE CONTACTED AND YOU APPARENTLY FEEL THAT RELEASES OF ANY CLAIMS THE PAYEES MAY HAVE ON THESE CHOCKS WOULD PERFECT CAPTAIN BARHANOVIC'S CLAIM. CAPTAIN BARHANOVIC'S CLAIM IS SOLELY UPON THE CHECKS INVOLVED. AS YOU ARE AWARE THE INDORSEMENTS ON THE SIX CHECKS IN QUESTION DIFFER FROM THE NAMES OF THE RESPECTIVE PAYEES. WHILE THE RECORD DISCLOSES THAT SOME OF THESE PAYEES WERE ILLITERATE. THERE IS NO EVIDENCE THAT ANY OF THE ILLITERATE PERSONS AFFIXED THEIR NAMES TO THE CHECKS. WHICH WE ARE BOUND TO FOLLOW IN THIS MATTER IN VIEW OF THE DECISION RENDERED BY THE SUPREME COURT IN UNITED STATES V.
B-137876, JUL. 6, 1959
TO RICHARD BENNETT, ESQUIRE:
YOUR LETTER OF JUNE 9, 1959, REQUESTS FURTHER CONSIDERATION OF THAT PART OF OUR SETTLEMENT OF MARCH 19, 1959, WHICH DISALLOWED PAYMENT TO CAPTAIN J. A. BARHANOVIC OF THE PROCEEDS OF SIX OF THE 18 CHOCKS INVOLVED IN HIS CLAIM NO. S-159901.
YOU NOW PROPOSE TO OBTAIN RELEASES FROM THE PAYEES OF THE SIX CHOCKS WHICH WERE DISALLOWED. YOU SAY THAT THERE IS A POSSIBILITY THAT THE PAYEES OF AT LEAST SOME OF THE DISALLOWED CHOCKS, CAN BE CONTACTED AND YOU APPARENTLY FEEL THAT RELEASES OF ANY CLAIMS THE PAYEES MAY HAVE ON THESE CHOCKS WOULD PERFECT CAPTAIN BARHANOVIC'S CLAIM.
CAPTAIN BARHANOVIC'S CLAIM IS SOLELY UPON THE CHECKS INVOLVED, AND, AS YOU ARE AWARE THE INDORSEMENTS ON THE SIX CHECKS IN QUESTION DIFFER FROM THE NAMES OF THE RESPECTIVE PAYEES. WHILE THE RECORD DISCLOSES THAT SOME OF THESE PAYEES WERE ILLITERATE, THERE IS NO EVIDENCE THAT ANY OF THE ILLITERATE PERSONS AFFIXED THEIR NAMES TO THE CHECKS. UNDER THE LAW OF YUGOSLAVIA, WHICH WE ARE BOUND TO FOLLOW IN THIS MATTER IN VIEW OF THE DECISION RENDERED BY THE SUPREME COURT IN UNITED STATES V. GUARANTY TRUST COMPANY OF NEW YORK, 293 U.S. 340, THE TRANSFEREE OF A CHECK, WHO TAKES IT IN GOOD FAITH AND FOR VALUE WITHOUT NOTICE THAT THE INDORSEMENT OF A PAYEE'S NAME WAS FORGED OR NOTICE OF OTHER DEFECT, AND WITHOUT NEGLIGENCE OR FRAUD ON HIS OWN PART, ACQUIRES TITLE TO THE INSTRUMENT AND THE RIGHT TO COLLECT IT AND RETAIN THE PROCEEDS. IN ACCORDANCE WITH THIS PRINCIPLE, CAPTAIN BARHANOVIC WAS ALLOWED THE PROCEEDS OF 12 OF THE 18 CHECKS ORIGINALLY INVOLVED. THE REMAINING SIX CHECKS CANNOT BE HELD EVEN TO APPEAR TO BEAR THE PAYEE'S INDORSEMENTS AND, ACCORDINGLY, CAPTAIN BARHANOVIC'S CLAIM AS A BONA FIDE HOLDER THEREOF WAS PROPERLY DISALLOWED. FURTHERMORE, A RELEASE BY THE PAYEE NOW STATING THAT THEY HAD RECEIVED THE PROCEEDS OF THE CHECKS AND HAVE NO FURTHER INTEREST THEREIN COULD NOT ESTABLISH ANY RIGHTS IN THE CLAIMANT ON HAVING TAKEN THE CHECKS UNDER CIRCUMSTANCES SUCH AS TO CONSTITUTE HIM A BONA FIDE HOLDER.
THEREFORE, AND SINCE THE RECORD CONTAINS NOTHING, OTHER THAN THE CHECKS INVOLVED, THAT WOULD FORM THE BASIS OF A CLAIM AGAINST THE UNITED STATES, SUCH RELEASES AS YOU PROPOSE TO OBTAIN FROM THE PAYEES WOULD NOT, ALONE, BE OF ANY VALUE.
OUR SETTLEMENT OF MARCH 19, 1959, DISALLOWING PAYMENT OF THE SIX CHECKS IN QUESTION IS SUSTAINED.