Commerce Trust Co. v. Farmers' Exchange Bank of Gallatin
Citation | 61 S.W.2d 928,332 Mo. 979 |
Decision Date | 10 June 1933 |
Docket Number | 32410 |
Parties | Commerce Trust Company, a Corporation, Appellant, v. The Farmers' Exchange Bank of Gallatin, In Liquidation, S. L. Cantley, Commissioner of Finance, and Joseph N. Martin, Special Deputy Commissioner of Finance in Charge |
Court | United States State Supreme Court of Missouri |
Appeal from Daviess Circuit Court; Hon. Ira D. Beals Judge.
Affirmed.
Dudley & Brandom and H. G. Leedy for appellant.
(1) Plaintiff's action is to recover money belonging to defendant and held in trust for it. The Commissioner of Finance acquired no title to such money in taking charge of the defendant bank, and the same constitutes no part of the assets of the bank, and is not subject to administration by the Commissioner of Finance, or to distribution to the creditors of the bank. As plaintiff's property, the fund may be recovered without regard to the provisions of the statute relating to the filing of claims by creditors. Bank of Poplar Bluff v. Millspaugh, 313 Mo. 12, 281 S.W. 733; Federal Reserve Bank v. Millspaugh, 314 Mo. 1, 282 S.W. 706; Fidelity Natl. Bank & Trust Co. v Farmers Exchange Bank of Gallatin, 45 S.W.2d 1091; Federal Reserve Bank v. Quigley, 284 S.W. 164; Gentry County Drainage Dist. v. Farmers & Mechanics Bank, 5 S.W.2d 1110; State Farmers Mut. Tornado Ins Co. v. Cantley, 222 Mo.App. 839, 6 S.W.2d 970; Carson Natl. Bank of Auburn v. American Nat. Bank, 34 S.W.2d 143; State ex rel. Percy v. Cox, 30 S.W.2d 46; State of Missouri ex rel. v. Page Bank of St. Louis, 14 S.W.2d 597; Advance Exchange Bank v. Baldwin, 31 S.W.2d 96; Paul v. Draper, 73 Mo.App. 566; First Natl. Bank v. Sanford, Assignee of the Bank of Commerce, 62 Mo.App. 394; Elliott v. Landis Machine Co., 236 Mo. 547; Harrison v. Smith, 83 Mo. 210; German Fire Ins. Co. v. Kimball, Assignee of Farmers Bank of Wikenda, 66 Mo.App. 370; Tiermans, Executor, v. Security Building & Loan Assn., 152 Mo. 135; Horigan Realty Co. v. Flynn, 213 Mo.App. 591, 253 S.W. 403; Orr v. St. Louis Union Trust Co., 291 Mo. 383, 236 S.W. 642; Dorrance v. Dorrance, 257 Mo. 317, 165 S.W. 783. (2) The provisions of statute of this State relating to the filing of claims against failed banks have reference to the administration of the assets of the bank only and confer no right on the Commissioner of Finance to withhold property to which the bank has no title. Secs. 5333, 5337, R. S. 1929; Secs. 72, 76, Laws of New York, 1914, Ch. 369; In re Bank of Cuba, 191 N.Y.S. 88; In re McCarthy's Funds, 248 N.Y.S. 335; In re Forrest's Estate, 249 N.Y.S. 776; In re Vavoudis, 252 N.Y.S. 779; Nauman Co. v. Bradshaw, 193 F. 350. (3) Property held as bailee by a suspended bank by the express provisions of Section 5328, Revised Statutes 1929, must be delivered by the Commissioner of Finance to the owner thereof, and no claim is required to be filed for the same. Such statute applies to all property held by the delinquent as bailee, including trust funds. In re Forrest's Estate, 249 N.Y.S. 776. (4) The provisions of statute relating to the filing of claims against failed state banks in this State and the bringing of suits thereon by their express terms relate alone to the claims of creditors. They constitute a special Statute of Limitation, and as such must be strictly construed, and cannot be made to relate to the claims of cestui que trusts or others. Secs. 5333, 5334, 5335, 5336, 5337, R. S. 1929; Macon County v. Farmers Trust Co., 29 S.W.2d 1096; American Can Co. v. Schram, 2 P.2d 924; Pleadwell v. Glass Co., 151 Mo.App. 51; Mann v. Bank of Greenfield, 20 S.W.2d 502; Tate v. Savings Bank of Cabool, 21 S.W.2d 222; Farm & Home Savings & Loan Co. v. Howard, 30 S.W.2d 631; Taylor Bank Commissioner, v. Simpkins, 5 S.W.2d 311. (5) Even though the statutory provisions relating to the filing of claims against failed banks in this State could be construed as having any application to plaintiff's cause of action, it was necessary for the Commissioner of Finance to show that the requirements had been complied with. Although the issue was directly raised that none of the statutory requirements had been followed, no proof of compliance whatever was offered. Mann v. Bank of Greenfield, 20 S.W.2d 502; Woods v. Cainsville Bank, 11 S.W.2d 56; Farm and Home Savings & Loan Assn. v. Howard, 30 S.W.2d 631. (6) Even though the statutory provisions relating to the filing of claims could be considered as having any application to plaintiff's cause of action, such compliance was waived by the Commissioner of Finance. Barlett v. McAllister, 289 S.W. 814; Macon County v. Farmers Trust Co., 29 S.W.2d 1096. (7) A court in the exercise of its general equity jurisdiction may allow claims not even presented in the furtherance of justice. Woods v. Cainsville Bank, 11 S.W.2d 56; Andrew v. Security Savings Bank, 214 N.W. 245; In re Hanover Trust Co., 252 Mass. 348, 148 N.E. 130.
Ed C. Hyde and Earle W. Frost for respondents.
(1) Appellant is not entitled to recover on the claim set out in its petition herein for the reason that said claim was not filed with the Commissioner of Finance within the time specified and required in the notice given by said Commissioner under the provisions of Section 11716, Revised Statutes 1919, now Section 5333, Revised Statutes 1929. Bowersock Mills & Power Co. v. Citizens' Trust Co., 298 S.W. 1049; Cold Spring Lodge v. Cantley, 18 S.W.2d 111; Federal Land Bank of St. Louis v. Cantley, 44 S.W.2d 269; Netherton v. Farmers' Exchange Bank, No. 16596, K. C. Court of Appeals (not yet reported); Summers v. Farmers' Bank, 282 S.W. 757. (2) Recovery on appellant's claim is further precluded and barred for the reason that appellant did not file its suit herein within the time required by the statutory period of limitation relating to such suits. Sec. 11720, R. S. 1919, now Sec. 5337, R. S. 1929; Tate v. Citizens' Sav. Bank, 223 Mo.App. 957, 21 S.W.2d 222; Evans v. French, 222 Mo.App. 990, 6 S.W.2d 655; Summers v. Farmers' Bank, 282 S.W. 757. (3) Appellant's petition is insufficient and does not state a cause of action in that it does not state and allege all of the necessary legal requirements in a suit against an insolvent bank and the Commissioner of Finance engaged in the liquidation thereof. Sec. 11720, R. S. 1919, now Sec. 5337, R. S. 1929; In re State Bank of Brashear, 45 S.W.2d 117; Federal Land Bank of St. Louis v. Cantley, 44 S.W.2d 269; Cold Spring Lodge v. Cantley, 18 S.W.2d 111; Netherton v. Farmers' Exchange Bank, No. 16596, K. C. Court of Appeals (not yet reported). (4) Neither appellant's petition nor proof discloses any basis for the exercise of general equitable jurisdiction and the allowance of its claim regardless of the failure to comply with the statutory requirements. Such action would not be proper under the facts and the laws and decisions applicable to the exercise of such jurisdiction. Sec. 879, R. S. 1929; Rogers v. Brown, 61 Mo. 187; Kober v. Kober, 324 Mo. 379, 23 S.W.2d 149. (5) The decree of the circuit court should be affirmed.
This case was tried in the Circuit Court of Daviess County and from a judgment against it the plaintiff appealed to the Kansas City Court of Appeals. That court, in an opinion reported in 52 S.W.2d 406, held that the judgment should be reversed and the cause remanded with directions to the trial court to allow plaintiff's claim as a preferred one but, deeming its decision in conflict with that of the St. Louis Court of Appeals in Bowersock Mills & Power Co. v. Citizens' Trust Co., 298 S.W. 1049, certified the cause to this court for determination. We adopt the following statement of facts made by the Court of Appeals:
To continue reading
Request your trial-
Brown v. Maguire's Real Estate Agency
... ... Maguire, Defendants, First National Bank in St. Louis (Garnishee) Appellant, Rutherfurd ... 842; ... Homer v. Natl. Bank of Commerce, 140 Mo. 238, 41 ... S.W. 790; Warren v ... 518; Steiner v. Mut. Alliance Trust Co., 131 A.D ... 645, 124 N.Y.S. 184; Brown ... 357, 76 S.W. 489; Wilson v. Farmers First ... Natl. Bank, 176 Mo.App. 76, 162 S.W ... exercised after the occurrence. Corn Exchange Bank v ... Locher, 151 F. 764; Eastern ... ...
-
Security Nat. Bank Sav. & Trust Co. v. Moberly
... ... Cantley, 227 Mo.App. 102; Boswell Post, Am. Legion, ... v. Farmers State Bank, 61 S.W.2d 761; In re North ... Mo. Trust Co., 39 S.W.2d ... Sturdivant Bank, 77 S.W.2d 484; In ... re Farmers' Exchange Bank of Gallatin, 37 S.W.2d ... 936; Ozark Fruit Growers' Assn. v. Bank ... In re Farmers' Exchange ... Bank of Gallatin, 37 S.W.2d 936; Commerce Trust Co ... v. Farmers' Exchange Bank of Gallatin, 61 S.W.2d ... 928; ... ...
-
Federal Deposit Ins. Corp. v. Farmers Bank of Newtown
... ... , ... S.W.2d , set forth in Appendix; Flynn v. American Banking & Trust Co., 104 Me. 141, 69 A. 771, 775; Hackney v ... Hood, 203 N.C. 486, ... First Nat. Bank v ... Holt (Mo. App.), 158 S.W.2d 229, 231; Commerce Trust ... Co. v. Farmers Exchange Bank of Gallatin, 332 Mo. 979, ... 61 ... ...
-
Kirrane v. Boone
... ... negligence, carelessness, and breach of trust of the ... directors, where the stockholder has ... Standard Theater ... Co., 109 Mo. 305; Bank v. Hill, 148 Mo. 394; ... Slattery v ... Albers v. Merchants' Exchange of St. Louis, 45 ... Mo.App. 206, 218, an ... In Commerce Trust Co. v. Exchange Bank, 332 Mo. 979, ... 61 ... [ State ex rel. Becker ... v. Farmers Exchange Bank of Gallatin, 331 Mo. 689, 56 ... ...