[bills of exchange]

Farrell v. Oliver

Supreme Court of Van Diemen’s Land

Pedder C.J., 2 January 1840

Source: Launceston Advertiser, 9 January 1840[1]

SUPREME COURT, LAUNCESTON

Civil Sittings

Tuesday 2nd January

            The Sittings in this town commenced this morning, before his Honor the Chief Justice. The cases were tried by special juries of four.

* * * *

            This was an action on a bill of exchange for £329 15s. The case was undefended, and the jury found for the plaintiff, the amount claimed, with £10 interest.

The Chief Justice remarked in this case, that a very erroneous practice was adopted in this colony, when bills were sent to a bank for collection. The holder generally indorsed the bill, which by the law regulating bills of exchange and promissory notes, passed the property in it to the bank: yet it was a frequent practice for the party to get the bill back, if it were not paid, and sue upon it in a common form of action, as though he were the holder at the time of presentation. If a bank should fail, these indorsed bills would become the property of the creditors.