Wolf v. First National Bank
Wolf v. First National Bank
Opinion of the Court
Opinion by
After a careful consideration of the evidence in this case, we are satisfied that the decree of the court below should be reversed. Hannah Wolf, wife of Martin L. Wolf, who was a retail liquor dealer, owned a property that was heavily encumbered. The defendant bank was a creditor in an amount which, with prior encumbrances, was much in excess of the value of this property. The business as conducted by Wolf, owing to improper management, was not successful, and it was deemed advisable by the officials of the bank to secure possession and title to the property. To facilitate any possible sale and to prevent Wolf from obstructing an advantageous sale, the legal title to the property was placed in Muller. Subsequently a manager, in the person of Carroll, was secured to take charge of the establishment. A disagreement arose between Carroll and Wolf, the result of which was an agreement to sell the property and transfer
The property sold for $50,000 and it was subject to an indebtedness, including interest, taxes, water rent, and interest thereon, with penalties added, amounting to $31,549, according to the adjudication filed by the court. In addition to this, the appellants’ claim, prior to the agreement herein sought to be enforced, and as found
The only evidence to support the credit of $1,50Q comes from one of the bank’s witnesses, a bookkeeper, who testifies that they charged-off $6,500 to profit and loss from the appellant bank’s account, and refers to the balance as the present state of the appellees’ indebtedness. This witness did not know why he called the $6,500 charged-off a bad account, and the $16,000 left standing a good account. He did not know “what the difference in quality was.” If a debtor’s obligation to a bank is to be considered liquidated when the- officers of a bank, because of prudent business methods, or because of an order from a bank examiner, charge-off the books of the bank doubtful accounts or notes as unsound paper, it would work a great hardship to a banking institution and would be unjust and unfair. Many of these obligations are after-wards paid and the money received forms a part of the bank’s assets, yet this is the only evidence in this record to support this credit of $1,500. The charging-off by the bank for any reason short of payment or liquidation will not relieve a debtor from meeting that obligation. While the charging-off in this case, if it was done at the time this so-called promise was made, and the evidence does not so show, might be some evidence to support the claim of $5,000, it was not sufficient evidence to justify an additional credit of $1,500. Nor was the additional evidence that sometime before this the appellant was willing to accept $10,000 for the entire indebtedness ; as the court below properly found the mortgages and notes held by the bank, largely in excess of this sum, were given for a valuable consideration. There is no evi
The second, third, fourth, fifth, sixth, seventh and eighth assignments of error are sustained. The decree of the court below is reversed; the record is remitted, and it is directed that a decree be entered dismissing the bill, at the cost of the appellees.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.