Rathbun v. Citizens' Steamboat Co.

Summary

The New York Court of Appeals considered whether a carrier became liable after accepting a customer's check instead of collecting cash for C.O.D. goods. The court held that the consignors' unconditional acceptance of the check ratified the carrier's conduct and assumed the risk that the check would not be paid. The judgment was affirmed.

Holdings

1. Plaintiffs' unconditional acceptance of the check waived the requirement that the defendant collect the money and constituted acceptance of the check in lieu of cash.
2. Plaintiffs' unqualified acceptance of the check ratified and adopted the carrier's act, and plaintiffs assumed the risk that the check would not be paid when presented.
3. The rule that a check received for a pre-existing debt is not payment absent an agreement to that effect did not apply because no antecedent debt existed.

Questions Presented

1. Whether plaintiffs' unconditional acceptance of the check waived the defendant carrier's contractual obligation to collect and remit the cash.
2. Whether plaintiffs' acceptance of the check ratified the carrier's unauthorized receipt of the check in lieu of money despite plaintiffs' lack of knowledge concerning the drawer's funds or solvency.
3. Whether the circumstances were controlled by the rule governing a note or check received for an antecedent debt.

Disposition

affirmed