Brusegaard v. Ueland

• Decision Date: 19 May 1898
• Docket Number: 10,967 - (75)
• Citation: 75 N.W. 228,72 Minn. 283
• Parties: THOMAS BRUSEGAARD v. ANDREAS UELAND
• Court: Minnesota Supreme Court

75 N.W. 228

72 Minn. 283

THOMAS BRUSEGAARD v. ANDREAS UELAND

Nos. 10,967 - (75)

Supreme Court of Minnesota

May 19, 1898

Appeal by petitioner from an order of the district court for Hennepin county, Russell, J., denying a petition for an order directing defendant receiver to pay to petitioner the sum of $1,192.36. Affirmed.

SYLLABUS

Bank -- Receiving Deposit when Insolvent -- Knowledge of Insolvency not Proved.

On the petition and answer, held, the petitioner has not established the fact that, when the insolvent bank received the deposit from him, its officers knew it was insolvent.

Bank -- Title to Checks Deposited -- Agreement to Charge Back if not Paid.

Petitioner kept an account in the bank, and it received his deposit consisting of checks, under an agreement that they should be credited to that account, and, if not paid on presentation they should be charged back against his account. Held, the title to the checks passed to the bank, subject to the condition, intended for its protection, that, if the checks were not paid on presentation, it could rescind the act of giving credit, and its title would thereupon be devested.

Bank -- Failure of Bank before Collection -- Title not Devested.

Held, further, the failure of the bank after it had received the checks, and before the same were collected, did not devest its title.

John H. Robertson, for appellant.

In support of his contention that by the terms of the agreement the title to the checks did not pass, counsel cited: Branch v. U.S. counsel cited: Branch v. U. S. Nat. Bank, 50 Neb. 470; In re State Bank, 56 Minn. 119; McLeod v. Evans, 66 Wis. 401; In re Johnson, 103 Mich. 109; Third Nat. Bank v. Stillwater Gas Co., 36 Minn. 75.

A. Ueland, for respondent.

OPINION

CANTY, J.

At 12:30 p. m., December 29, 1896, the Washington Bank of Minneapolis suspended payment, and closed its doors. It was taken possession of by the state bank examiner that same afternoon, and on the next day a receiver in insolvency was appointed for it by the court. At and prior to these times the petitioner, Brusegaard, was doing business as a banker at Brandon, Minnesota, and kept an account in the Washington Bank, which was his correspondent. He filed a petition in the insolvency proceedings, in which he states that he had for some time prior to December 29 remitted to said bank,

"For collection and credit, the drafts and checks of other banks, received by him from his customers and others; * * * that during all said time it was understood and agreed between your petitioner and said bank that his remittances of checks, drafts, and other items should be credited to the account of your petitioner in said bank, and that, if any such check or draft remitted by him for collection and credit to said bank should not be paid upon presentation, that the same should be charged back against his said account; and that all remittances of checks and drafts (other than currency or specie) should be credited to him upon receipt thereof, only conditionally upon being paid."

These allegations of the petitioner are not denied by the answer. On December 26 he remitted to the bank, pursuant to this agreement, three checks, drawn by others, for the aggregate amount of $1,324.84. The bank received the checks on the morning of December 28, and on that day sent these checks, together with others, amounting in all to $2,380.35, to the Scandinavian-American Bank of St. Paul, for collection and deposit to the credit of the Washington Bank. All of the checks sent by petitioner were collected on that day, and some of the others. The account of the Scandinavian-American Bank with the Washington Bank then stood as follows:

Balance to the credit of Washington Bank prior to the

remittance of that day

$ 609 51

Checks and drafts of others collected that day

962 84

Proceeds of appellant's checks

1,324 84

Total

$2,897 19

Checks and drafts of the Washington Bank paid by the

Scandinavian-American Bank

560 75

Balance

$2,336 44

This balance was paid by the Scandinavian-American Bank to the receiver after he had qualified. The facts above recited are not disputed. The petitioner asks that the court declare a trust in his favor on such balance for the amount of the proceeds of said checks which he had so remitted; and that the receiver be ordered to pay him said amount out of said balance. From the order denying his petition he appeals.

The matter was...