Blackford County Bank v. Eaton State Bank
Blackford County Bank v. Eaton State Bank
Opinion of the Court
Complaint by appellee, Eaton State Bank, against appellant, Blackford County Bank, and David W. Gregory on account of a check for $3,400-given by Gregory to appellee and drawn on appellant bank. It is alleged that the check was dishonored after being accepted by appellant. Appellant contends that the dishonoring was in the due course of business and for want of funds to the credit of Gregory. Appellant filed a set-off in two paragraphs, alleging that appellee was indebted to it in the sum of $572.55, growing out of banking relations between appellant and appellee.
Since the facts were found specially and no question is raised on the pleadings, it will not be necessary to set them out in detail.
The facts found by the court are in substance as follow: In December, 1911, and for many years prior thereto and ever since said time, appellee has been located and doing a general banking business at Eaton in Delaware County, during which time Carl VanBuskirk was the cashier thereof. During the same time, appellant has been located and doing a general banking business at Hartford City, Blackford County, during
February 24, 1912, Gregory purchased stock in the vicinity of Eaton and pursuant to said agreement gave checks aggregating $3,376.15. All of said checks were paid by appellee, and Gregory, on said day, for the purpose of reimbursing appellee, drew his check for $3,400 on appellant in favor of appellee according to said agreement. Gregory, having shipped said stock, drew two drafts against the same and deposited them in appellant bank to his credit. Appellant on February 26, 1912, acknowledged the receipt of said $3,400 check, and by mail notified appellee in writing, and therein stated, “Draft not in. Probably be taken care of tomorrow.” February 29, 1912, said drafts so deposited in appellant bank by Gregory and drawn upon the stock purchased by Gregory at Eaton were paid to appellant and placed to the credit of Gregory, and became a special fund under said agreement with which to pay said $3,400 check. At the time said drafts were paid, and when they were credited to the account of Gregory by appellant, said check for $3,400 was in appellant bank and unpaid. Appellant in-stead of paying said $3,400 check as provided in said agreement transferred to it-self from the account of Gregory $1,142.99 in payment of an indebtedness which Gregory then owed appellant, after which' there were insufficient funds in appellant bank to Gregory’s credit to pay said $3,400 check. Appellant between February 26 and 29, while it had said $3,400 check for collection, diverted from the account of Gregory and out of the proceeds derived from the sale
February 29, 1912, Gregory paid appellee by check on appellant, $2,257.01, and appellee credited said sum on said $3,400 check and appellant paid said check for $2,257.01 and gave appellee credit therefor.
Appellant tendered appellee Gregory’s note for $1,142.99 that being the balance due on said $3,400 check, which note appellee then and ever since has refused to accept. Appellee on February 29, 1912, demanded payment of said $1,142.99, that being the balance due on said $3,400 check, of Gregory and appellant, which demand was refused, and said sum is still owingappellee, and appellee is entitled to interest thereon since February 29, 1912. At the time said note was tendered appellee, Gregory was insolvent. On and prior to October 23, 1912, appellant had paid out for the use and benefit of appellee and at its instance and request $551.59, and was entitled to interest thereon in the sum of $263.25.
Upon these facts, the court concluded, as a matter of law, (1) that the law was with appellee on the issues joined upon the complaint;' (2) that the law -was with appellant on the issues joined upon the cross-complaint; (3) that appellee was entitled to recover from appellant
Appellant excepted to conclusions of law Nos. 2, 3, and 4, and, in support of its exceptions, contends: first, that the statements in the finding that the money received from the sale of live stock paid for by appellee was deposited in appellant bank to the credit of Gregory in trust for the specific purpose and not otherwise of taking up and paying the checks, and in trust for the specific purpose of paying the $3,400 check, are legal conclusions and not statements of facts.
It is to be observed that in the findings assailed by appellant, the court found what the agreement between appellant and appellee was in relation to the method of paying for the stock and the depositing of the money which Gregory derived from the sale of the stock.
The first finding which appellant contends is a conclusion of law, is that “It was further agreed the money received from the sale of live stock so paid for by said Eaton State Bank upon the checks drawn by said Gregory was all to be deposited and it was deposited, pursuant to said agreement, in said Blackford County Bank to the credit of said David W. Gregory in trust for the specific purpose and not otherwise of taking up and paying the checks so drawn to said Eaton State Bank” by Gregory on appellant. The next finding is that all money realized from the -sale of said live stock paid for by appellee, “was to be and were deposited” in appellant bank to the credit of Gregory “in trust for the specfic purpose of paying the checks drawn” by Gregory on appellant in favor of appellee. By these findings, the court not only found what the agreement was, but it found that the money was deposited with appellant “pursuant to said agree
It may be conceded that the finding that it was deposited “in trust” is a conclusion of law and must be ignored, but enough Remains to show that there was an agreement that it was to be deposited in trust for a specific purpose pursuant to that agreement. It may also be conceded that the finding that the two drafts deposited with appellant February 29, 1912, “became a specific fund under said agreement to pay said $3,400 check” is a conclusion of law. Eliminating this statement as a conclusion of law, the fact that there was an agreement that they should be deposited in trust for that purpose, together with the finding that they were deposited in fact, pursuant to that agreement, is' a sufficient finding of facts to support the court in concluding, as a matter of law, that the drafts and the money derived therefrom constituted a trust fund for the purpose of paying the $3,400 check held by appellee.
Appellant contends that under the factá as found the agreement between appellant and appellee is no more than an agreement in parol to answer for the debt of another, and void under the statute of frauds, and also that it can amount to no more than an agreement on the part of appellant to guarantee the payment of Gregory’s checks. We do not think the agreement between the parties as found by the court is susceptible of the construction which appellant would have us place upon it. There is no question but that checks or money may be deposited in a bank for the purpose of creating a fund for the payment of a specific debt. When this is done, the deposit becomes a
Appellant’s next proposition is that the court erred in overruling its motion for a new trial, the specifications of which are that the findings are not sustained by sufficient evidence and are contrary to law. No attempt has been made to show wherein the findings are contrary to law. They are all within the issues, and as we view them, are not contrary to law. If they are contrary to the undisputed evidence, the question is presented by the specification that-the finding is not sustained by sufficient evidence. Chicago, etc., R. Co. v. State, ex rel. (1902), 159 Ind. 237; Sharp v. Malia (1890), 124 Ind. 407; Todd v. Howell (1911), 49 Ind. App. 59, cited by appellant in support of the proposition that a “finding unsupported by the evidence is contrary to law” do not so hold. The holding in each of these cases is that where the court fails to find all the facts proved, or finds the facts contrary to or unsupported by the evidence, the remedy of the aggrieved party is by motion for a new trial. There is no intimation in either of these cases as to what the specifications for a new trial should be.
The evidence in this case as to whether there was an agreement' between appellant and appellee and Gregory is in irreconcilable conflict. The cashier of appellee bank testified that he had a talk with the president of appellant and detailed that conversation. The president of appellant testified that he never had any such conversation with the cashier of appellee; that there was néver any conversation between
We have carefully considered the testimony of the cashier of appellee upon the subject of this agreement in connection with all the other evidence as to the method of conducting the business by the interested parties, and while we might not have come to the same conclusion as was reached by the trial judge,- we cannot say the facts proved and inferable therefrom are not sufficient to support the facts as found by the court. We therefore hold that the findings are supported by the evidence and that there was no error in overruling the motion for a new trial.
Judgment affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.