Farmers' Trust Co. Op Grant City v. Burnes Nat. Bank of St. Joseph

• Decision Date: 24 May 1926
• Docket Number: No. 15628.,15628.
• Citation: 285 S.W. 110
• Parties: FARMERS' TRUST CO. OP GRANT CITY v. BURNES NAT. BANK OF ST. JOSEPH.
• Court: Missouri Court of Appeals

285 S.W. 110

FARMERS' TRUST CO. OP GRANT CITY v. BURNES NAT. BANK OF ST. JOSEPH.

No. 15628.

Kansas City Court of Appeals. Missouri.

May 24, 1926.

Rehearing Denied June 14, 1926.

Appeal from Circuit Court, Worth County; John M. Dawson, Judge.

"Not to be officially published."

In the matter of the Farmers' Trust Company of Grant City. From a judgment allowing the claim of the Burnes National Bank of St. Joseph as a preferred claim, the Trust Company appeals. Reversed.

Dubois & Miller, of Grant City, for appellant.

Landis & Duncan, of St. Joseph, for respondent.

ARNOLD, J.

This action seeks to have declared as preferred certain claims against the assets of defendant, a defunct trust company at Grant City, Mo., which passed into the hands of the state bank commissioner on April 29, 1924.

Claimant is an active national bank located at St. Joseph, Mo., and defendant, Farmers' Trust Company, was located at Grant City, Worth county, Mo. From the record before us it is learned that on February 13, 1925, claimant filed its verified proof of claims against the assets of the said trust company in the total sum of $2,165.10, based upon certain checks therein listed which had been received by claimant from its depositors and sent to the defendant, Farmers' Trust Company, for collection and remittance. The verified proof of claims also states that claimant has no security or offset against said items and that the amount which should be allowed as a preferred claim is $2,165.10. It appears that the deputy finance commissioner in charge referred the claim to the judge of the circuit court for action. The cause was tried to the court on an agreed statement of facts as follows:

"It is agreed that the facts set out in the respective proofs of claims, cases Nos. 568, 569, 570, and 572, are as set forth in the proofs of claims submitted (case No. 568 being the case herein tried and appealed) and that the drafts referred to in claims 570 and 572 were drawn by the Farmers' Trust Company on the Continental Commercial National Bank of Chicago, mailed to the Burnes National Bank at St. Joseph, Mo., protested by the Continental Commercial Bank of Chicago on the 22d day of April, 1924, for the reason no funds to the credit of the Farmers' Trust Company; that said drafts were received by the Burnes National Bank, still retained by the Burnes National Bank, and now submitted as a part of the proof with each of said claims, respectively numbered 570 and 572, and that the said Farmers' Trust Company was closed on the 29th day of April, 1924."

Upon said statement of facts the court found that of the claim for $2,165.10 the amount of $2,140.10 was entitled to preference and that the remaining two items, amounting to $25, were entitled to allowance as an ordinary claim. Judgment was entered accordingly. A timely motion for a new trial was filed by defendant and overruled by the court. Defendant appeals.

It is urged the court erred in overruling the motion for a new trial, because there is nothing appearing in the agreed statement of facts showing that any money came into the hands of defendant belonging to claimant, or that the checks referred to in the statement were ever received by, or paid to, defendant. Of course, if it should be found that this position is correct, the charge of error should be sustained. But we think this position not tenable. From the agreed statement of facts we learn that the defendant trust company issued its drafts on the Continental Commercial Bank at Chicago in payment for the checks set out in claimant's proofs of...