37 F. 657 (N.D.Ga. 1888), First Nat. Bank v. Merchants' Bank

Citation:37 F. 657
Party Name:FIRST NAT. BANK v. MERCHANTS' BANK et al.
Case Date:June 16, 1888
Court:United States Courts of Appeals, Court of Appeals for the Eleventh Circuit
 
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Page 657

37 F. 657 (N.D.Ga. 1888)

FIRST NAT. BANK

v.

MERCHANTS' BANK et al.

United States Circuit Court, N.D. Georgia.

June 16, 1888

Hoke & Burton Smith, for the motion.

Hopkins & Glen, and Julius L. Brown, contra.

NEWMAN, J.

This is a motion to remand, and, in order that the question presented may be understood, a brief statement of the case is regarded as necessary. On the 13th day of July, 1887, the First National Bank of Sheffield filed its bill in equity in the superior court of Fulton county, Ga., against the Merchants' Bank of Atlanta, on the following statement of facts: On the 14th and 15th days of June, 1887, complainant had on deposit $8,000 with the defendant. Prior to that time complainant had been dealing with the Fidelity National Bank of Cincinnati, Ohio, forwarding checks to said bank, and said bank depositing in place of said checks currency to the credit of complainant in New York. Prior to said time the Fidelity National Bank had been perfectly solvent, and was a bank which did an immense business, and complainant had dealt with it quite a length of time. Just before or about the 14th day of June, 1887, said bank, through its officers, had squandered its money in sudden wild speculations in wheat and 'futures' of different characters, and it had become totally insolvent; yet it continued to deal with complainant without giving complainant any notice of its changed condition, and fraudulently concealed such changed condition from complainant with full knowledge of the fact that complainant was not informed of said changed condition. By reason of said fraud the said Fidelity National Bank induced complainant on the 14th and 15th days of June, 1887, to send it two checks for $4,000 each on the Merchants' Bank of Atlanta. The Fidelity National Bank received the said checks two or three days later, and fraudulently sent the same to the Merchants' Bank of Atlanta, without forwarding the currency to New York, to be deposited to the credit of complainant, and said checks reached Atlanta on or about 20th day of June, but the Merchants' Bank has never paid out said $8,000 to the said Fidelity National Bank, and still has the same.

Page 658

The prayers in the bill are for a decree requiring the Merchants' Bank to pay complainant $8,000, and enjoining them from paying it to the Fidelity National Bank. Temporary injunction was granted. On October 8, 1887, an...

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