City Nat. Bank v. Martin

• Decision Date: 08 May 1888
• Parties: CITY NAT. BANK OF FORT WORTH v. MARTIN.
• Court: Texas Supreme Court

Page 507

8 S.W. 507

CITY NAT. BANK OF FORT WORTH v. MARTIN.

Supreme Court of Texas.

May 8, 1888.

Commissioners' decision. Appeal from district court, Tarrant county.

Action by appellee, D. C. Martin, against the City National Bank of Fort Worth, appellant, to recover the amount collected by defendant's teller, John Nichols, on a note made by Boaz & Battle. Upon the trial by the court without a jury, the following facts were found: "(1) That on 1st day of October, 1884, the plaintiff had deposited to his credit with the defendant bank the sum of $1,525.00, and on that day drew his check on the bank in favor of John Nichols for the sum of $1,594.19, which check was not charged against the plaintiff, but was, after the death of Nichols, in August, 1885, found among the private papers of Nichols; (2) that on the 1st day of November, 1884, said Nichols drew against plaintiff a check for $1,500.00, signing plaintiff's name to said check without authority, which was charged against the plaintiff; (3) that on the 1st day of December, 1884, plaintiff deposited with the defendant the sum of $1,300, and on the 16th December, 1884, the sum of $500, which sum was received by said John Nichols as acting teller of defendant bank; (4) that on making the last-named deposit, plaintiff informed said Nichols that he was desirous of drawing his money, and requested Nichols to assist him in loaning the sum; (5) that afterwards, in January, 1885, plaintiff called at the bank, and was informed by Nichols that he had loaned $1,500 of plaintiff's funds to Boaz & Battle, and exhibited to plaintiff a note for $1,500, signed by said Boaz & Battle, payable to John Nichols' order, at defendant bank, and indorsed by said Nichols and others, and informed plaintiff that he took said note for the money loaned, and plaintiff thereupon left the note with defendant for collection when due; (6) that on 27th day of June, 1885, and before the maturity of the note, the makers, Boaz & Battle, went to the bank for the purpose of paying said note, and gave to said Nichols a check on the Traders' National Bank, payable to the order of defendant, for the sum of $1,583.50, the amount of said note and accrued interest; (7) that on 29th of June, 1885, said check was paid to defendant by said Traders' National Bank; (8) that said Nichols, who was still the acting teller of said defendant bank, received said check, and delivered to said Boaz & Battle said note; (9) that, upon receiving the check of said Boaz & Battle, said Nichols made a deposit check in his name for the amount of said check, and the same was entered on the books of the bank to the credit of said Nichols on his individual account; (10) that, during the period covering said transactions. Nichols was a director, vice-president, and acting teller of defendant bank, and in his capacity of teller was authorized by defendant to receive and pay out money of the bank; (11) that each and all the transactions between plaintiff and Nichols, with reference to plaintiff's funds, were had at the bank, and at said Nichols' place as teller, and that the payment of said note by Boaz & Battle was made to said Nichols, as an officer of the bank, by a check drawn in favor of defendant upon another bank; (12) that said Nichols was largely indebted to the bank, and had at divers times misappropriated the funds of the bank, and of its depositors, by concealing check and deposits made by depositors."

Uray & Stanley, for appellant. Hogsett & Greene, for appellee.

MALTBIE, J.

John Nichols was the receiving and paying teller, also a director and vice-president, of appellant, the City National Bank of Fort Worth, and died insolvent on 17th day of August, 1885, a defaulter to the bank in the sum of $30,000. During the year 1884, and up to the time of Nichols' death, the appellee, D. C. Martin, was a customer of the bank, and in the month of December deposited with it the sum of $1,800; Nichols receiving it for the bank. At the time of making this deposit, Martin requested Nichols to assist him in making a loan of this money. In January, 1885, Martin called at the bank, and was informed by Nichols, who was then occupying his place as teller, that he had loaned $1,500 of the money, and at the same time exhibited to Martin a note for that amount, signed by Boaz & Battle, payable to John Nichols, or order, at appellant bank, indorsed by Nichols and others in blank. Martin directed Nichols to hold it for collection; the understanding of Martin being that Nichols was to hold the note in his capacity of agent of...