Barham v. Sugar Creek National Bank

In Barham v. Sugar Creek National Bank, 612 S.W.2d 78 (Tex. Civ. App.-Houston 14th Dist. 1981, no writ), Nugent was the drawer of the check. Nugent issued the check to Barham, who endorsed it and deposited it into his account at Sugar Creek National Bank. When the check was dishonored, the bank sued Barham, the endorsee. Id. at 79. As stated by the court: "The check endorsed and deposited by Barham constitutes a written contract wherein as a matter of law he agreed that 'upon dishonor and any necessary notice of dishonor' he would 'pay the instrument according to its tenor at the time of his indorsement to the holder or to any subsequent indorser who takes it up . . . .'" Id. at 80 (quoting then-current TEX. BUS. & COM. CODE ANN. 3.414(a)).