Colby v. Bank of Douglas

Decision Date21 March 1962
Docket NumberNo. 7290,7290
Citation370 P.2d 56,91 Ariz. 85
PartiesAlbert B. COLBY, Ray B. Lucas and Arnold J. Grasmoen, Receivers of Arizona Savings and Loan Association, Appellants, v. BANK OF DOUGLAS a corporation, Appellee.
CourtArizona Supreme Court

David J. Perry Ralph G. Smith, Jr., and Allan J. Stanton, Phoenix, for appellants.

Ryley, Carlock & Ralston, Phoenix, for appellee.

STANFORD, Superior Court Judge.

This is an appeal from an order granting summary judgment in an action brought by the plaintiff Bank of Douglas against the Receivers of the Arizona Savings and Loan Association.

The summary judgment was based upon the plaintiff's affidavit which stated the following facts: On June 12, 1959, one Walter L. Varner, Jr., presented to the Bank of Douglas a check for $2,000.00 drawn by Arizona Savings and Loan Association upon the First National Bank of Arizona payable to the order of Varner; the payee endorsed the check in blank and delivered it to the Bank of Douglas for a valuable consideration, to-wit, the issuance of a draft drawn by the Bank of Douglas upon the Hanover Bank and payable to said Varner; the Bank of Douglas presented the said check for payment by forwarding it through normal channels to First National Bank of Arizona; the check was not paid and was dishonored by reason of an order of the Superintendent of Banks stopping payment thereon; and that the Bank of Douglas received the check drawn by Arizona Savings and Loan Association complete and regular on its face in good faith and without notice of any infirmity or defect.

The defendants filed an affidavit concerning the issuance of the check to Varner by the Arizona Savings and Loan Association without his having made any prior application for withdrawal of funds, and pointing out § 6-420 A.R.S. which provides that a shareholder give at least thirty days notice prior to such withdrawal.

In their unverified answer filed subsequent to the filing of plaintiff's affidavit the defendants included an allegation on information and belief that the check was presented to the Bank of Douglas for collection only and that the Bank in accepting the check from Varner acted only as the collection agent.

On July 8, 1960, plaintiff moved for and was granted a summary judgment. The law is well settled that a summary judgment should never be entered unless the facts are clear and undisputed. Phoenix Feed & Seed Co. v. Adams, 78 Ariz. 292, 279 P.2d 447 (1955).

The facts alleged in the pleadings are not the sole factors to be considered in passing on a motion for summary judgment; all those shown by the record as it stands when a motion is made, or submitted, enter into the matter. Suburban Pump & Water Co. v. Linville, 60 Ariz. 274, 135 P.2d 210 (1943).

The mere statement in a pleading, when attacked by a motion for summary judgment supported by proof of specific facts in the form of an affidavit or deposition, places on the author of the statement the obligation to present something which will show that when the date of trial arrives, he will have some proof to support the allegations in the pleadings. He cannot withhold this showing until the time of trial. Stevens v. Anderson, 75 Ariz. 331, 256 P.2d 712 (1953); Hale v. Brown, 84 Ariz. 61, 323 P.2d 955 (1958); Perez v. Tomberlin, 86 Ariz. 66, 340 P.2d 982 (1959).

The defendants did not meet this obligation by presenting proof in the form of affidavits to show that there is an issue of facts. The conclusionary statements in their unverified answer do not indicate that they have any evidence which would support their allegations.

However, the defendants claim that the plaintiff's affidavit of February 11, 1960, conflicts with the allegations of his earlier complaint, and that the facts set out in the complaint do not show that the plaintiff was a holder in due course.

The complaint alleged that on June 12, 1959, the Arizona Savings and Loan Association drew a check for $2,000.00 upon the First National Bank of Arizona payable to Walter L. Varner, Jr.; that the check was presented at the Yuma Downtown Branch of the Bank of Douglas and forwarded to the First National Bank of Arizona for collection; that payment on said check was refused by reason of an order of the Superintendent of Banks of the State of Arizona; that the check was redelivered to the Bank of Douglas and returned to the payee Varner; and that thereafter, for valuable consideration, the plaintiff purchased the check from the payee and took a written assignment thereof.

The defendants' contention raises the question whether we can consider an affidavit which conflicts with the complaint. There are times when on a motion for summary judgment affidavits going beyond the complaint can be considered. The judgment finally disposes of the action, and if facts appear in affidavits which would justify an amended complaint, there may be ground for treating the complaint as though it were...

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13 cases
  • Orme School v. Reeves, CV-89-0403-SA
    • United States
    • Supreme Court of Arizona
    • December 6, 1990
    ...193, 199, 393 P.2d 662, 665 (1964) (summary judgment proper only in "clear cases" where there is "no doubt"); Colby v. Bank of Douglas, 91 Ariz. 85, 87, 370 P.2d 56, 57 (1962) (summary judgment should never be entered unless the facts are "clear and undisputed"); Flynn v. Lindenfield, 6 Ari......
  • Hand v. Manufacturers Trust, 109 September Term, 2007.
    • United States
    • Court of Special Appeals of Maryland
    • July 24, 2008
    ...at 1207. See Rhode Island Depositors Economic Protection Corp. v. Rignanese, 714 A.2d 1190, 1198 (R.I.1998); Colby v. Bank of Douglas, 91 Ariz. 85, 88-89, 370 P.2d 56, 58-59 (1962), ("The rule is well established that a negotiable instrument given in an illegal transaction is nevertheless e......
  • Granite State Ins. Corp. v. Mountain States Tel. & Tel. Co., 1
    • United States
    • Court of Appeals of Arizona
    • October 25, 1977
    ...of the record it is determined that there is a disputed fact which, if true, could affect the final judgment. Colby v. Bank of Douglas, 91 Ariz. 85, 370 P.2d 56 (1962); 16 A.R.S., Rules of Civil Procedure, Rule 56. In this connection the record must be viewed in the light most favorable to ......
  • Nielson v. Savoy, 9811
    • United States
    • Supreme Court of Arizona
    • January 30, 1970
    ...94 Ariz. 273, 383 P.2d 187; Nyberg v. Salt River Project Agr. Imp. and Power Dist., 91 Ariz. 397, 372 P.2d 727; Colby v. Bank of Douglas, 91 Ariz. 85, 370 P.2d 56; Sarti v. Udall, 91 Ariz. 24, 369 P.2d 92; Peterson v. Valley Nat. Bank of Phoenix, 90 Ariz. 361, 368 P.2d However, we have held......
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