Rankin v. McCleery
Rankin v. McCleery
Opinion of the Court
The appellee, George McCleery, as plaintiff in the court below, instituted a suit in assumpsit against J. W. Rankin and L. C. Morris, defendants, and the case was tried before the court without a jury, and judgment was rendered for the appellee,
The suit was brought by plaintiff to recover of the defendants the sum of $490, claimed by plaintiff to be due from the defendants as the pro rata share (one-third) of the sum collected on a claim filed in the name of Bankin and Morris in a bankruptcy proceeding in the matter of the Bankin-Tuck Paint Company, which company was subsequently declared a bankrupt, and a compromise agreement effected, and a 80 per cent, dividend paid to creditors. Prior to being adjudged a bankrupt, the Bankin-Tuck Paint Company was indebted to J. W. Bankin, L. C. Morris, and the appellee, George McCleery, in the sum of $4,900; the said indebtedness having accrued on account of these parties joint indorsement of the note of the Bankin-Tuck Paint Company in the sum of $5,000, of which amount $100 was paid by the maker, leaving a balance of $4,900, which was paid by the indorsers, Bankin, Morris, and McCleery; each party paying an equal proportion.
A claim was filed for this indebtedness due to Bankin, Morris, and McCleery by the Bankin-Tuck Paint Company in the bankruptcy proceeding by J. W. Bankin, in the name of J. W. Bankin and L. C. Morris,, and upon this claim a dividend of 80 per cent, was declared and $1,470 paid. It is to recover one-third of this sum ($490) that appellee brought his action in the lower court, and recovered judgment against J. W. Bankin
The evidence set out in the bill of exceptions shows that after proceedings in bankruptcy were instituted negotiations were had between the co-indorsers, who had paid the note of the company, looking to filing a claim in the bankruptcy court where the proceedings were pending, and that Rankin, in behalf of himself and Morris, did file such a claim for the entire amount due all three of the indorsers, but did not include McCleery as a party in the transaction. The evidence is in conflict as to why Rankin filed the claim for the entire interest of himself and the other two parties, and failed to include McCleery as a party in interest; but after Mc-Cleery found out he had not been included in the claim filed, he went to Rankin and protested, claiming that he had authorized Rankin to include his interest in the claim filed, and informed him (Rankin) that he (Mc-Cleery) would file a claim against the bankrupt estate in the bankruptcy court where the proceedings were pending for his pro rata share, or one-tliird interest. The evidence is in conflict as to what was said between Rankin and McCleery; but, after McCleery had discussed this matter with Rankin, he (McCleery) desisted from filing a claim against the bankrupt, the Rankin-Tuck Paint Company, in the bankruptcy court for the pro rata share he had paid as an indorser on the note of the bankrupt, and took from Rankin and Morris the following agreement in writing: “Birmingham, Ala., May 2, 1908. Mr. Geo. McCleery: In case a compromise is made in the Rankin-Tuck Paint Company matter, and we receive any dividend on our claim of $4,900, we will prorate the same with you; each of us taking a third, and you taking a third. J. W. Rankin, L. C. Morris.”
The evidence before the court was sufficient to authorize the conclusion that Rankin was acting for Morris and by his authority in filing the claim in the bankruptcy proceedings and in collecting the dividend paid on the claim, and Morris subsequently adopted it by receiving benefits under it. The forbearance of Mc-Cleery to file a claim for his share and allow the entire amount, including his interest, to be collected under the claim filed by Rankin and Morris, or by Rankin for himself and Morris, with consent of Morris, is a sufficient consideration to support the contract. — Pollak v. Billing, 131 Ala. 519, 32 South. 639; Ashburn v. Watson, 8 Ga. App. 566, 70 S. E. 19; Sanford v. Huxford, 32 Mich. 313, 20 Am. Rep. 647.
There was no error committed by the court in entering' judgment against the appellant Morris on the evidence adduced ou the trial'in the court below, and the case is affirmed.
Affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.