Arrington v. King

• Citation: 17 S.W.2d 302,179 Ark. 584
• Decision Date: 20 May 1929
• Docket Number: 301
• Parties: ARRINGTON v. KING
• Court: Arkansas Supreme Court

17 S.W.2d 302

179 Ark. 584

ARRINGTON v. KING

No. 301

Supreme Court of Arkansas

May 20, 1929

Appeal from Franklin Circuit Court, Ozark District; J. O. Kincannon Judge; affirmed.

STATEMENT BY THE COURT.

Appellants prosecute this appeal from a judgment against them for a balance due upon a promissory note for $ 1,600, executed on June 1, 1924, to the People's Bank of Ozark, and payable on the first of December, 1924, with 10 per cent. interest.

Mrs Emma King, appellee, having some money in the People's Bank on time deposit, and desiring to realize a higher interest than paid on such deposits, purchased from the bank the appellants' $ 1,600 note, on the 2d of June, 1924 which was duly indorsed by the cashier and delivered to her. She took the note and turned it over to her brother, J. C Carter, who kept it among his private papers until just before the bank failed. Only one credit of $ 100 for interest was indorsed on the note by him during the time it was in the possession of Carter. During this time, however, Arrington appellant, claimed to have made payments, the checks being sent and made payable to the People's Bank, the payee in the note, aggregating the sum of $ 700. The bank was taken over for liquidation by W. E. Taylor, Bank Commissioner, on the 19th day of January, 1926. Before the bank failed, Stockton, the cashier, called on appellee's brother, Carter, saying the makers of the note desired to pay it off, and he wanted to figure up the amount due. He kept the note, and it was in the bank when the Bank Commissioner took charge. The makers paid the Bank Commissioner $ 1,039.24, the balance due on the note, and, upon appellee making affidavits showing the ownership of the note, it was turned over to her with said balance paid. When she received the note, however, it had, in addition to the indorsement on the face, "Paid on note as credit $ 1,039.24. Mrs. J. P. King, by Theron Agee," the following indorsements on the back thereof:

"Cr. on note $ 100, 1-24-25. Emma King," and this was in the handwriting of appellee's brother, and:

"The People's Bank, Ozark, Arkansas, by F. E. Stockton, cashier: 3-7-25, $ 100; 5-20-25, $ 100; 7-10-25, $ 100; 10-3-25, $ 150; 11-27-25, $ 150;" none of which were on the note when it was turned over to the bank just before it failed, at the request of the cashier, who said that the makers desired to pay the note, and he wanted to ascertain the balance due thereon, and the writing was that of the cashier, Stockton.

The deputy bank commissioner testified that the books of the bank showed only one deposit to the credit of Mrs. Emma King in the amount of $ 100 during 1925 and 1926, and that on January 24, 1925; also she had one deposit drawn out on June 2, 1925. That there was a record of Claude Arrington showing a deposit on March 7, 1925, of $ 100; March 20, 1925, of $ 100; July 6, 1925, of $ 100; October 13, 1925, of $ 150, and November 27, 1925, of $ 150, and some other small deposits during the year. Arrington filed a claim against the bank with the Bank Commissioner for $ 600. Mrs. King, appellee, filed with the Bank Commissioner a claim for $ 800, and was allowed $ 700 and was paid two dividends thereon, and Arrington had received two dividends on his claim.

Tmrs. King and her brother, Carter, to whom she delivered the note after purchasing it from the bank, testified that it had never been in the possession of the bank thereafter until just before the failure, as above stated, when it was returned to the bank upon the request of the cashier in order that he could ascertain and notify the makers of the balance due thereon. They both testified that he had no authority whatever to make any collections on the note, and that it was not in the possession of the bank at any of the dates upon which the credits of amounts received were indorsed thereon.

The checks were sent by Arrington and Jeffers payable to the order of the People's Bank for the amounts credited and indorsed "People's Bank, by F. E. Stockton, Cashier," for the different amounts indorsed as payments on the note by Stockton, the cashier, when it came into his possession just before the bank failed.

The...