Krueger v. First State Bank
Krueger v. First State Bank
070rehearing
On Petition for Rehearing. Filed July 21st, 1917.
No decision of a cause is ever satisfactory to the party against whom it is given. Though this case has been well argued and considered, a motion is filed to reargue and reconsider it on every point that has been argued and considered. The case is fairly debatable. It is one on which lawyers and judges may differ and continue to differ even if there were a dozen arguments. The case turns not so much on questions of law as on disputed questions of fact, and in reasoning and drawing inferences from proved facts there is great reason for differences. The facts and the law are stated in the opinion, which has been signed and concurred in by all the judges and by the special opinion of Judge Ohristianson. Thus, all the judges of this court and the judge of the district court have concurred in the verdict of the jury, and it is idle to continue the argument. Motion denied.
Opinion of the Court
The plaintiff sues to recover over $2,000 which he-had on deposit with the bank. The defense is that the money was paid out for and at the request of the plaintiff on a Judgment against him by one Kennedy. A verdict and judgment was given for the plaintiff and defendant appeals. The plaintiff claims that the Kennedy judgment was recovered against him on an appeal bond which he signed as surety for one of the 'banks. The defmdant bank absorbed and took over the property and assets of the state bank, in whose name-the appeal was taken. The state bank was perfectly solvent and had property more than enough to pay all its debts and liabilities, and the defendant purchased all the property and became the successor of the state bank. The claim is that, by special contract and also- by operation of law, the defendant bank became liable for all the debts and obligations of the state bank, including the liability on the appeal bond made to Kennedy.
In 1906 the state bank received from Kennedy a draft for $1,700, on which it received the money and wrongfully used the same. Kennedy sued the bank to recover hip* money with interest. There was no real defense and judgment was given against the bank for $2,020, and on March 13, 1909, for the purpose of delay, an appeal was taken to the-supreme court and the judgment was affirmed. 22 N. D. 70, 132 N. W. 657. The appeal bond was dated October 2, 1909, and signed thus:
State Bank'of Bowbells,
By I. D. Langford,
Cashier.
A. B. Bickford-
ID. O. Krueger,.
Exhibits 4, 5, and 6 are minutes of the stockholders and directors of the respective banks.
Exhibit 4: “A meeting of the stockholders of the State Bank of Bowbells was held at Bowbells this 16th day of December, 1907, to consider a proposition made by the Eirst State Bank of Bowbells to take on all assets and assume all liabilities of the said State Bank of Bowbells at par value. On motion the proposition was accepted and transfer ordered.”
Exhibit 5: “Bowbells, N. D., Dee. 24, 1907. A meeting of the stockholders and directors was called by the president for the purpose of discussing the purchase of the State Bank of Bowbells. It was decided to take over the business of the state bank, assume their assets and liabilities, thus merging the two institutions under the name of the Eirst State Bank.”
Exhibit 6: “Bowbells, N. D., Jan. 4, 1908. A meeting of the stockholders and directors of the Eirst State Bank of Bowbells was held in the office of the bank, and the affairs of the bank examined. It was found that the affairs of the state bank had been assumed as per purchase authorized under meeting of December 24, 1907.” G. L. Bickford was chosen president; A. B. Bickford, cashier.
In the brief of counsel for defendant and appellant the leading question argued.(and the only question of the case) is: Did the defendant bank in its transaction with the other bank assume its contingent liability to W. T. Kennedy on the appeal bond?
Counsel for defendant does everywhere designate it as a “contingent liability” and “a mere contingent future liability,” and he bases his argument largely on the assumed contingency of the liability. But in truth it wás not at all contingent; and it was an existing, and not a future, liability. The state bank had received and used Kennedy’s
The manifest purpose of one bank was to close out its business and to dispose of it, and the purpose and agreement of the defendant bank and its stockholders, as expressed by their resolution, was “to take over tbe business of tbe state bank and to assume its assets and liabilities, thus merging tbe two institutions under tbe name of tbe First State Bank.” Tbe appeal bond was signed after tbe merger, and it was signed by A. B. Bickford, cashier of tbe defendant bank, and bis name was put on tbe bond before tbe name of tbe plaintiff, and presumably tbe plaintiff signed tbe bond at tbe request of tbe defendant bank or its cashier to stave off its liability on an obligation for over $2,000. While tbe appeal was taken in tbe name of tbe defunct bank, there are reasons for thinking that it was in reality taken by its successor, tbe defendant. If tbe defendant bank took tbe appeal, or if tbe appeal was really taken for its benefit, if it induced tbe plaintiff to sign tbe appeal bond or if it in any way became legally bound to pay tbe Kennedy judgment, then, .as surety for tbe defendant bank tbe plaintiff bad a perfect right to request it to pay tbe Kennedy judgment and to discharge him from tbe bond to which be bad subscribed bis name under tbe name of defendant’s cashier.
On tbe trial tbe court excluded offers to prove in effect that, when tbe defendant bank contracted to absorb tbe other bank, no special reference was made to Kennedy’s claim; that tbe book assets of tbe state bank amounted to over $53,000, and its liabilities to over $43,000, and that tbe difference was paid to tbe state bank, and that it assumed liabilities which were as follows:
Certificates of deposit...........................77................. $23,280.12
Individual deposits ................................................. 20,161.53
Interest ...................................................... 325.76
The proof would have rather strengthened tbe claim of tbe plaintiff. It indicates that tbe defendant bank assumed liability for tbe individual deposits, and tbe claim of Kennedy was an individual deposit of $1,700, on which there never should have been any question or dispute. Then tbe court excluded an offer to prove an oral agreement
On the whole it appears that the case is fairly submitted to the jury, and the verdict is just and right. There should be an end to this long litigation.
Judgment affirmed.
Concurring Opinion
(concurring specially). I concur in an affirmance •of the judgment. I am not, however, prepared either to concur in or dissent from the reasons on which the opinion prepared by Mr. Justice ftobinson is based.
I shall therefore briefly set forth the reasons which lead me to the conclusion that the judgment should be affirmed.
The answer “admits that on the 19th day of September, a. d. 1914, the defendant had on deposit in its bank, to the credit of the said plaintiff, the sum of $2,068.66.” The answer further, “by way of counterclaim, alleges: That between said 19th day of September, 1914, and the 1st day of October, 1914, the defendant, by authority and at the instance and request of the plaintiff, paid for the use and benefit of •said plaintiff of the moneys so on deposit to his credit, the full sum •of $2,054.51. That the said defendant now has in its possession belonging to said plaintiff the sum of $14.15, for which said sum the defendant hereby offers judgment in favor of the plaintiff, with costs accrued to the date of service of the answer.”
The plaintiff interposed a reply denying the allegations of the counterclaim and refusing the offer of judgment contained therein. The issue raised by the counterclaim and the reply was the only issue of fact presented by the pleadings in the case. As developed by the testimony,
Phelps testified that Krueger requested the bank to advance the moneys required to pay the Kennedy judgment; and that pursuant to such request the bank did advance such moneys and paid the judgment, and subsequently charged the amount so advanced against Krueger’s checking account in the bank.
The plaintiff, Krueger, testified that at the time the action was commenced against him on the supersedeas bond in January, 1912, he had a conversation with Mr. Phelps in regard to the matter; that during such conversation he directed the attention of Phelps to the two resolutions adopted by the stockholders of the two banks, at the time the defendant bank purchased the assets of the State Bank of Bowbells; that thereupon he and Phelps studied the resolutions together, and that after study and consideration thereof Phelps expressed it to be his opinion that under the resolutions the defendant bank had assumed liability for the claim upon which the Kennedy judgment was based, and consequently was liable for the payment of such judgment. Krueger says: “I never asked the bank to loan me $2,300. Phelps said the bank was liable under the resolutions, and that the defendant bank would pay the judgment, get the $500 from Crane and $500 from Landsborough and carry the collateral in stocks and bonds and let it work out.” Krueger further testified that he did not authorize
It seems clear to me tbat tbe case involves purely and simply a •question of fact, viz., whether tbe bank advanced the moneys to pay the Kennedy judgment upon tbe request of tbe plaintiff, Krueger, or whether it paid tbe same voluntarily and without any request from Krueger.
No error is predicated upon tbe court’s instructions to tbe jury, and •consequently tbe instructions must be assumed to be correct.
Appellant, however, assigns error on tbe court’s refusal to receive certain evidence offered by tbe defendant, for tbe purpose of showing what liabilities were contemplated by tbe parties in tbe two resolutions referred to in tbe majority opinion. Defendant offered to prove tbat it was agreed by tbe directors and stockholders of tbe respective banks tbat tbe then pending suit of Kennedy, upon which tbe judgment was •obtained, was not to be assumed by tbe defendant bank.
In my opinion it is not necessary to determine in this case whether ■the two resolutions must be taken to embody tbe entire contract, or whether they are to be deemed merely evidence tending to establish contractual relations which may be explained and supplemented by other testimony. An examination of tbe record shows tbat tbe two resolutions were received in evidence without objection, although a considerable time subsequent thereto defendant moved tbat they be stricken ■out.
The jury was entitled to know everything that was said during such-conversation. And as these resolutions, according to- plaintiff’s testimony, formed part of the matter discussed and considered during such conversation, they were properly received in evidence in connection therewith, regardless of their contractual force or effect. What the defendant offered to prove did not relate to anything said or considered during the conversation between Krueger and Phelps, but something which took place at the time the resolutions were adopted five years previous thereto. It seems self-evident that this was not material and could have no possible bearing upon -the conversation which took place between Phelps and Krueger, unless it was also shown that the matter which defendant offered to prove was known to Phelps and Krueger, and considered or discussed by them during their conversation.
The pivotal question in the case was whether the plaintiff requested the defendant bank to advance the money and pay the Kennedy judgment for him. The answer to this question must be found in the conversation between Phelps and Krueger.
The jury which heard the testimony upon this question believed the plaintiff’s version thereof to be the correct one. The jury’s finding;
Reference
- Full Case Name
- E. C. KRUEGER v. THE FIRST STATE BANK OF BOWBELLS
- Status
- Published