URWILLER V.

PLATTE VALLEY STATE BANK

164 Neb. 630; 1957; Wenke, J.
Digest prepared by Glenn Agbayani
I. Facts

The drawer McCORD issued a check to the payee URWILLER drawn on the
drawee Platte Valley State Bank (BANK). The check was issued in
payment of a purchase of livestock.
The check was deposited to URWILLERs account in Ravenna Bank on
December 9. Three days later (December 12), it was received by the BANK.
Two days after it received the check (December 14), the BANK decided not
pay the check and marked it for return because of insufficiency of funds in
the drawers account.
However, the actual return of the check was not made until two days after
(December 16). There was delay in the return because bank examiners
assumed control over the BANKs records on December 14, the day it decided
not to pay the check, and did not return them until it they have been checked
and proved.
URWILLER was informed by Ravenna bank the day after (December 17) that
payment was refused. The check was not returned to him until December 19.
URWILLER brought an action against the BANK to recover the amount
appearing on the check.
o Relying on sec. 1371, NIL, he contended that the failure of the drawee
bank to return the check to the holder 24 hours after it has been
received for payment constitutes acceptance.

II. Issue
WON sec. 137 of the NIL applies NO
III. Ratio

There was no showing that (1) the delay in the return of the check by the
BANK was caused by any fault on the part of the BANK, and that (2)
URWILLER was damaged in any way.
Section 137, NIL applies when a bill is presented for acceptance. In this
case, the check was presented for payment, not acceptance.

1 The provision reads:SEC. 137. Liability of drawee retaining or destroying bill. Where a
drawee to whom a bill is delivered for acceptance destroys the same, or refuses within
twenty-four hours after such delivery, or within such other period as the holder may allow, to
return the bill accepted or non-accepted to the holder, he will be deemed to have accepted
the same.