In the case of Veitch and Co. v. The Farmers Bank of Alexandria, the Supreme Court was tasked with determining whether a bank could be held liable for failing to pay out on a note that had been endorsed by an individual who did not have authority to do so. In this particular instance, the Farmers Bank of Alexandria refused to honor a promissory note signed by one person but endorsed by another without authorization from either party involved in signing it. The court ultimately determined that banks are responsible for ensuring they are paying out on notes only when authorized individuals have both signed and endorsed them; otherwise, they can be held liable for any losses incurred as a result of their negligence or failure to properly verify signatures and endorsements before payment is made.

In Veitch and Co. v. The Farmers Bank of Alexandria, the Supreme Court was asked to decide whether a state court had jurisdiction over a case involving citizens from different states. Justice McLean delivered the dissenting opinion in which he argued that it was not within the power of any state court to exercise jurisdiction over such cases as this one, since they involved parties from two different states and thus fell under federal judicial authority instead. He further noted that Congress had already passed legislation granting exclusive original cognizance on all controversies between citizens of different states to federal courts; therefore, according to him, it would be unconstitutional for any state court or legislature to attempt an interference with this congressional act by attempting its own adjudication in such matters. In conclusion, Justice McLean maintained that no State could constitutionally assume jurisdiction over suits between citizens of other States without infringing upon their rights as secured by the Constitution and laws made in pursuance thereof