City of Aberdeen v. Bank of Amory

• Decision Date: 12 May 1941
• Docket Number: 34564.
• Citation: 2 So.2d 153,191 Miss. 318
• Court: Mississippi Supreme Court
• Parties: CITY OF ABERDEEN v. BANK OF AMORY.

2 So.2d 153

191 Miss. 318

CITY OF ABERDEEN v. BANK OF AMORY.

No. 34564.

Supreme Court of Mississippi

May 12, 1941

Thos F. Paine and D. W. Houston, Sr. & Jr., all of Aberdeen for appellant.

Leftwich & Tubb, of Aberdeen, for appellee.

ANDERSON Justice.

Appellee the Bank of Amory, brought this action in the chancery court of Monroe County against appellant, the City of Aberdeen, to recover the sum of $705.83. The trial was had on bill answer, and proofs, oral and written, resulting in a decree in favor of the bank in the sum of $198.30. From that judgment, the city prosecutes this appeal.

There is no substantial conflict in the material evidence.

Crosby and Sherman were employed by the city to do the necessary engineering services required in the construction of a municipal airport for which the city agreed to pay them the sum of $200 for a preliminary survey and assistance in securing the approval of the project by the Works Progress Administration, and in addition five per cent of the funds for their supervision services. Crosby and Sherman secured a loan from the bank in the sum of $3,000 for which they gave their note. To secure this note, they transferred and assigned in writing to the bank their contract with the city in which they directed the city to pay any amounts due or to become due them under their contract, to the bank. The execution of this assignment was acknowledged by Crosby and Sherman before a notary public. The original is part of the record in this case. The contract between the city and Crosby and Sherman was dated the 12th day of February, 1936. The assignment of the contract to the bank was dated May 20th, 1936. It was filed with the city clerk. The clerk endorsed thereon near the bottom with a rubber stamp in red letters the following: "City of Aberdeen, Mississippi. Filed in this office this the 25th day of May, 1936. R. C. Maynard, City Clerk." Some time in October, 1936, Crosby and Sherman notified the city they had paid their indebtedness to the bank. That was untrue. They still owed the bank something like $2,000. Acting upon the supposed truth of such statement, the city clerk returned the assignment to the bank without explanation, except he wrote across the filing entry thereon in blue pencil the word "void". This notation is so indistinct as to be hardly noticeable. The officers and employes of the bank testified that they did not know it was on there when received nor afterwards until the rights of the parties had become fixed. After receiving the notice the city paid Crosby and Sherman the amount for which judgment was rendered, $198.30.

The city seeks to reverse the judgment upon two grounds: (1) that the filing of the assignment with the city clerk was not legal notice to the city; (2) that if it was notice under the law the bank was estopped from relying on the...