Price v Neal

16 November 1762
Lord Mansfield
Digest by Eugenio Leynes
Topic and Provisions: When drawee accepts and pays for forged instrument
Facts:
It was proved at the trial, that a bill was drawn as followsLeicester 22d November 1760. Sir,
six weeks after date pay Mr. Rogers Ruding or order forty pounds, value received for Mr.
Thomas Ploughfor; as advised by, sir, your humble servant Benjamin Sutton. To Mr. John Price
in Bush-Lane Cannon-Street, London; indorsed R. Ruding, Antony Topham, Hammond and
Laroche. Received the contents, James Watson and Son: witness Edward Neale.
o That this bill was indorsed to the defendant for a valuable consideration; and notice of
the bill left at the plaintiff's house, on the day it became due. Whereupon the plaintiff
sent his servant to call on the defendant, to pay him the said sum of 401. and take up
the said bill: which was done accordingly.
That another bill was drawn as followsLeicester, 1st February 1761. Sir, six weeks after date
pay Mr. Rogers Ruding or order forty pounds, value received for Mr. Thomas Ploughfor; as
advised by, sir, your humble servant Benjamin Sutton. To Mr. John Price in Bush-Lane, CannonStreet, London. That this bill was indersed, R. Ruding, Thomas Watson and Son. Witness for
Smith, Right and Co. That the plaintiff accepted this bill, by writing on it, Accepted John
Price: and that the plaintiff wrote on the back of itMessieurs Freame and Barclay, pray pay
forty pounds for John Price.
o That this bill being so accepted was indorsed to the defendant for a valuable
consideration, and left at his bankers for payment; and was paid by order of the
plaintiff, and taken up.
Both these bills were forged by one Lee, who has been since hanged for forgery.
Issue:
1) WON Price may recover money paid by mistake.
Held:
1) No. neglect was on drawers side.
Dispositive:
Ratio:
Here was no fraud: no wrong. It was incumbent upon the plaintiff, to be satisfied that the bill
drawn upon him was the drawer's hand, before he accepted or paid it: but it was not
incumbent upon the defendant, to inquire into it.
Here was notice given by the defendant to the plaintiff of a bill drawn upon him: and he sends
his servant to pay it and take it up.
The other bill, he actually accepts; after which acceptance, the defendant innocently and bon
fide discounts it.
The plaintiff lies by, for a considerable time after he has paid these bills; and then found out
that they were forged: and the forger comes to be hanged. He made no objection to them, at
the time of paying them.
Whatever neglect there was, was on his side. The defendant had actual encouragement
from the plaintiff himself, for negotiating the second bill, from the plaintiff's having without any
scruple or hesitation paid the first: and he paid the