Cent. Trust Co v. Bank Of Mullens, 6653.
| Decision Date | 29 April 1930 |
| Docket Number | No. 6653.,6653. |
| Citation | 153 S.E. 145 |
| Court | West Virginia Supreme Court |
| Parties | CENTRAL TRUST CO. v. BANK OF MULLENS et al. |
Syllabus by the Court.
Where one bank sends to another for collection and immediate remittance a check of a depositor of the latter bank against his deposit therein, which check is paid, and the customer's account closed, and the collecting bank immediately draws and delivers to the sending bank its cashier's check for the amount so collected, the relation of principal and agent continues between the two banks, and the sum so collected while it remains in the collecting bank awaiting the return of the cashier's check through the usual banking channels is impressed with a trust in favor of the sending bank (there being at all times sufficient funds in the collecting bank to pay it), which may be enforced against the bank's funds in the hands of a receiver.
Appeal from Circuit Court, Wyoming County.
Suit by the Central Trust Company, receiver for the Bank of Mullens, against the Bank of Mullens and others, wherein the first National Bank of Williamson claimed priority over general creditors of insolvent bank. From a decree denying preference, claimant appeals.
Reversed and remanded.
See, also, 107 W. Va. 679, 150 S. E. 221; 150 S. E. 137.
Herndon & Partlow, of Welch, Samuel A. Christie and Sidney L. Christie, both of Keystone, and E. A. Hansbarger, of Williamson, for appellant.
Brown, Jackson & Knight, of Charleston, for appellees.
LIVELY, P.
The Bank of Mullens became insolvent and was closed by the banking commissioner on April 20, 1927. This cause was instituted by its receiver to wind up the affairs of the insolvent bank. The appellant, First National Bank of Williamson, claimed priority over the general creditors of the bank for the sum of $1,028.05 evidenced by a cashier's check of the insolvent bank; the priority and preference were denied, and this appeal followed.
Appellant's claim originated as follows: Cattaruzza had formerly lived at Mullens, and had accumulated $1,028.05 to his credit in the Bank of Mullens as a savings. Later, he moved to Williamson, and on April 9, 1927, he delivered to appellant his check for the amount of his savings, together with his passbook of savings in the Bank of Mullens. Appellant immediately sent the check and passbook to the Bank of Mullens, with letter requesting collection and remittance. On April 12, 1927, the check and passbook reached Bank of Mullens, which, on that day, issued its cashier's check in payment, and forwarded same to appellant. Cattaruzza's savings account was then balanced and closed. Appellant received the cashier's check, credited It to...
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