1929-07-05 — Page 8

THE HONGKONG TELEGRAPH, • FRIDAY, JULY 5, 1929.

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J

ALTERED CHEQUE

DECISION.

HO HONG BANK LOSES ON AN APPEAL.

NEGLIGENCE ISSUE.

Singapore, Juno 28. The Court of Appeal decision in the case in which the Ho Kong Bank appealed against a judg- ment of Sir William Murison in favour of E. A. Barbour and Co. was delivered this morning...

The case was concerned with a cheque which was altered by a fraudulent clerk from $2,500 to $12,500. During the hearing it was argued that E. A. Barbour, Ltd., (respondents) that they had. not shown aufficient care in tho filling up of the choque, and for the Bank (the appellants) it was argued that the responsibility lay upon them of discovering what was an apparent fraud.

Tho appeal was heard by Mr. Justice Deano (the presiding Judge), Mr. Justice Burton and Bix. Justice Stovens.

Mr. Justice Donne said that on inspection of the documents there was an unusually wide space left between the words "two" and "thousand," such a space as no ordinary man who wished to pre- vont forgery would leave between hla words in any document, and certainly such space as no prudent man filling in a cheque in this Colony would, if he thought of the matter for. one Instant, willingly leave and the mere so if his atten- tion had been specially directed to the precautions necessary in fill- ing in his cheques.

There was the additional negli gence of not malding figures near to the dollar sign, so as to prevent the insertion of another figure, and also the neglect to make the "o" properly when writing the word "two." The observation of either of the first two precautions would almost certainly have pre- vented the fraud,

"Precautions Neglected."

Every precaution was neglect- ed and complete indifference was shown by the manager with re- spoct to the duty he owed to the bank. Nor could his Lordship agree with the argument put for ward on behalf of the respondents that unicas the spaces were so wide that they could not escape the

and notice

the manager's negligence so gross as to amount to a palpable invitation fraud the respondenta should be excused.

The test to be applied was; did the manager, in signing, leave, eufficient space as to make a fraud easy and, in the circumstances of this case did that amount to negligence? In his Lordship's opinion it did, and the appellants could fairly say that they were deceived by the negligent way in which the manager signed the cheque, and that therefore the respondents could not set up against them the invalidity of a document which they were induc- ed to accept by the negligence of the respondents' servant.

WOB the

was

That the forgery natural and direct consequence of the negligence was undoubted. The cheque appeared to have been pre- pared with the object of forgery in view, and the forgery carried out as a natural result when it was negligently signed. No artificial means were necessary, nor was it necessary to alter a single letter to perpetrate the fraud.

All that had to be done was to write the necessary letters and If a figures in the blank spaces.

warehouseman neglected to take

the precaution to lock his ware-

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house and goods were stolen the MAKE YOUR SERVANTS USE IT IN ITS RIGHT CONSISTENCY

theft was a natural and direct consequence of his negligence in falling to lock the door of hig warehouse, and similarly in this case the door was left open to forgery, facility was given for its perpetration, and the forgery was a direct and natural result of that facility.

For those reasons, his Lordship thought that the judgment of the couri below should be set aside und that judgment should be entered for appellants with costs in the Court of Appeal and in the Court below.

A Dissenting View, Mr. Justice Burton thought the appeal should be dismissed. His Lordship said the duty of a cus- temer of a bank was so to draw his cheques as to guard against the possibility of tampering in a way which the ordinary drawer can bo reasonably expected to foresee.

fraudulent alteration.

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PRINCE'S BUILDING,

LEAGUE. TENNIS. HONGKONG C, C, OVERWHELM

THE INDIAN R. C.

TEL. 0.241.

A. H. Rumjaha and Razack 0-8; beat A. A. Rumjalin and Curroem 6-2,

C.R.C. Best K.C.C.

HONGKONG,

Sze-kwang 1-6; lost to Yow Man-kit and Ho Kalau 6-8.

South China Boat C.C.C. On the South China A. A. ground at King's Park, the home team beat the Craigongower C.0. rather easily, winning by six sets to three in, the first division. Scores

Ho Wal-hing and Chan So (South China) beat G. Lai and Y. Hachiuma 6-4; lost to J. Leonard and Q. Izmail 3-4; last to G. Bodiker and H. D. Woon-isol and Li Walks! Rumjab

In a first division Icaguo match, played at the K.C.C. yoslerday, the Yesterday, the Hongkong Cricket Chinese R.O. beat the Kowloon O.C. Club, playing at home, best the Indian by seven sets to two. The scores It was possible that to forgers Recreation Club by six sets to things were 83 Pincher and E. V. Fincher of sufficient skill there were many in the "A" division of the tennis

(K.C.C.) beat M. W. Lo and C, Choa cheque apparently drawn with league. Scores. due care which were capable of Goldman and McEachran beat 8.A 1-5; leat to M. K. Lo and Ng Szo But the Rumjahn and A. Hussain kwong Gu, beat Yew Man-kit and duty of the customer was to give boat A. H. Rumjahn and M. Ho Ka-lau 0-3.

S. E. Green and T. Lay_(.0.0.) (South China) beat Lai and Hachiuma no facility: nor to give no en-Razack 6-0; beat A. A. Rumjahn and

lost to M. W. Lo and C. Chos 1-6; 6-1; beat Leonard and Ismail 6-2;" J. 9. Curreem 7-5.

ost to Bediker and Rumjaha 2-6. ceivable opportunity.

Bowell and Humphreys lost to B. lost to M. K..Lo and Ng Bro-kwong); lost Kang-choung and Luk Ding not

A. Rumjahn and Hussain 4-5; beat Was A. H. Rumjahn and Hazack 6-3; Joat "to to A. A. Ramjahn and Currsem 4-6. Owen Haghes and Lawrls lost to B. A. Humjahn and Hussain 2-6; beat!

Ifis Lordship did think that the cheque

80 drawn originally facilitate or almost invite” the al- teration which, was in fact made.

1-8; lost to Yew Man-kit and Ho Ka Inu 6-7.

Luk

cheung. (South China) best Lai and.

G. E. Millard and A. E. Guest Hachiums 6-0; beat Leonard and Ismail 6-2; beat Bodiker and Bam- (ECC) lost to M. W. Lo and C. Choa 5-7; lost to H. K. Lo and Nyjahn 8-6,