Denkichi Tsuji v. Moody

• Decision Date: 23 June 1933
• Docket Number: 24443.
• Citation: 173 Wash. 376,23 P.2d 403
• Parties: DENKICHI TSUJI v. MOODY, Supervisor of Banking.
• Court: Washington Supreme Court

23 P.2d 403

173 Wash. 376

DENKICHI TSUJI v. MOODY, Supervisor of Banking.

No. 24443.

Supreme Court of Washington

June 23, 1933

Department 2.

Appeal from Superior Court, King County; Chester A. Batchelor Judge.

Action by Denkichi Tsuji against C. S. Moody, Supervisor of Banking of the State of Washington, liquidating the Pacific Commercial Bank. From a judgment for plaintiff, defendant appeals.

Affirmed.

Bausman Oldham, Cohen & Jarvis and Perry R. Gershon, all of Seattle for appellant.

Kahin &amp Carmody, of Seattle, for respondent.

STEINERT Justice.

This action was brought to establish a preferred claim upon the assets of a bank then in process of liquidation by the state supervisor of banking. Upon a trial Before the court the claim was given preference, and findings, conclusions, and judgment to that effect were entered. The supervisor has appealed. We will hereinafter continue to designate the parties as plaintiff and defendant.

Inasmuch as the plaintiff admits that defendant's statement of the case is sufficient for present purposes, we adopt it in toto, as follows:

On August 20, 1931, the plaintiff, who had a savings account in the sum of $1,104.69 in the Pacific Commercial Bank of Seattle, Wash., advised the then cashier of the bank, Hasegawa, that he intended to withdraw $1,000 therefrom and deposit the same in the Sumitomo Bank at Seattle for the purpose of paying certain debts. This withdrawal was made. At the same time the plaintiff exhibited to Hasegawa a certificate of deposit issued by the 133rd Bank of Japan in the principal sum of Yen 3,003.37 (equivalent to $1,702.30), payable in Japan on the 27th day of September, 1931, of which certificate plaintiff was the owner. Plaintiff informed Hasegawa that he intended to deliver this certificate to the Sumitomo Bank at Seattle for collection and that he intended to use the funds from this collection to pay his debts. At the suggestion of Hasegawa, plaintiff left the certificate of deposit with the Pacific Commercial Bank for collection and credit to his savings account. The bank gave to the plaintiff a receipt for the certificate, which receipt translated into English read:

'P. O. Box 3344

'Phone Elliott 0833

'Pacific Commercial Bank

'222 2d Avenue So.

'Seattle, Washington, U.S. A.

'To Mr. Denkichi Tsuji:

'Special Limited Time Deposit Certificate, issued by 133rd Bank. No. 24 of 30, dated September 27, 1928.

'Received for collection the foregoing one instrument.

'Upon and after the arrival of the money we will make its entry into the Savings Account No. 24109, and notify you of the same at your address: P. O. Box 363, Auburn.

'[Signed] Hidehito Hasegawa.'

This arrangement was made because Hasegawa considered it the more convenient both to the plaintiff and to the bank.

On September 14, 1931, the bank forwarded the certificate to the Mitsui Bank, at Yokohama, Japan, with instructions to collect it on September 27th, when it matured, and to credit the collection to the account of the Pacific Commercial Bank upon the books of the Mitsui Bank. On October 5, 1931, the Mitsui Bank collected the certificate, and upon that date credited the account of the Pacific Commercial Bank with said sum. The advice of this credit was not received by the Pacific Commercial Bank until November 3, 1931. In the interval, on October 23, 1931, the Pacific Commercial Bank became insolvent and was taken over by the state banking department for liquidation. The plaintiff's savings account was therefore never credited with the proceeds of the collection, although on November 4, 1931, the liquidator credited the plaintiff's account, miscellaneous collections, with the sum of $1,702.30.

The plaintiff filed with the liquidator his claim for a preference in the sum of $1,702.30. It was rejected as a preferred and allowed as a general claim. Suit was instituted to establish priority. The trial court accorded Tsuji a preferred claim, and the supervisor...