Commonwealth ex rel. Wilson v. Lagrange Bank & Trust Co.
| Decision Date | 17 November 1933 |
| Parties | COMMONWEALTH ex rel. WILSON, Banking Com'r, v. LAGRANGE BANK & TRUST CO. et al. |
| Court | Kentucky Court of Appeals |
Appeal from Circuit Court, Oldham County.
Suit by the Commonwealth, on relation of C. S. Wilson, Banking Commissioner, against the La Grange Bank & Trust Company and others. From a judgment of dismissal as to all defendants except named defendant, plaintiff appeals.
Affirmed.
H Elliott Netherton, of LaGrange, for appellant.
J Ballard Clark, of LaGrange, for appellees.
R. F Peak, of Louisville, amicus curiae.
The appellees, Oldham Bank & Trust Company, the People's Bank, and certain designated stockholders of these banks together with the LaGrange Bank & Trust Company, were defendants below. The demurrer of these defendants with the exception of the LaGrange Bank & Trust Company having been sustained to the petition as amended of the appellant, plaintiff below, and it having declined to plead further, the petition as amended was dismissed and this appeal results.
The petition as amended, together with the exhibits filed in support thereof, alleged this state of facts: On the 15th day of June, 1928, the People's Bank of LaGrange and the Oldham Bank & Trust Company, both of which banks were doing business in the town of LaGrange, entered into a contract with a bank which had been newly organized with fresh capital and then called "Bank of LaGrange." The corporate name of this last-named bank was later changed to that of LaGrange Bank & Trust Company. At that time, the two older banks found themselves in a somewhat frozen condition. Indeed, the new bank had been organized to take care of the situation. By the contract that day entered into between the new bank and the two old banks, the new bank assumed all of the liabilities of each of the two older banks except capital stock liability and there was transferred to the new bank all of the assets of each of the two older banks. The petition as amended avers that the new bank duly discharged the obligation to pay the liabilities of the older banks thus assumed and that all of such liabilities of the two older banks have been paid. So far as the assets of the two older banks transferred to the new bank were concerned, the contract provided that the new bank was to make diligent effort to reimburse itself for the liabilities it had assumed out of the assets which had been transferred to it, and that after it had realized a sufficient amount from such assets to reimburse itself for the liabilities it had assumed, it would turn over to the two older banks, respectively, any excess of assets received from such bank over what was necessary to discharge the liabilities of such older bank assumed and paid by the new bank. The contract further provided that "in the event the assets of either" of the two old banks "when collected or liquidated do not realize a sufficient amount to pay off or...
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Moberly v. Leonard
...it shows that suit was commenced before a cause of action on the contract accrued. A case in point is Commonwealth ex rel. Wilson v. La Grange Bank & Trust Co. (Ky.), 65 S.W.2d 65. There a bank organized to take over the assets of two existing banks. The new bank assumed and paid all obliga......