First Nat. Bank-Detroit v. Tennant

• Decision Date: 05 March 1935
• Docket Number: No. 39.,39.
• Parties: FIRST NAT. BANK-DETROIT et al. v. TENNANT.
• Court: Michigan Supreme Court

270 Mich. 653

259 N.W. 351

FIRST NAT. BANK-DETROIT et al.

v.TENNANT.

No. 39.

Supreme Court of Michigan.

March 5, 1935.

Suit by the First National Bank-Detroit and another against Mabelle Tennant, administratrix de bonis non with the will annexed of the estate of Matthew Slush, deceased. From a decree dismissing the bill of complaint, plaintiffs appeal.

Affirmed.

Appeal from Circuit Court, Macomb County, in Chancery; Neil E. Reid, judge.

Argued before the Entire Bench except FEAD and BUSHNELL, JJ.

Robert S. Marx, of Cincinnati, Ohio, for appellants.

Lynch & Hinks, of Detroit, for appellee.

NORTH, Justice.

This is a suit in chancery brought against the estate of Matthew Slush, deceased. At the time of his death Mr. Sluch owned stock in the Guaranty State Bank of Detroit. He died testate, having named in his will two executors of his estate. About a year after his death, the Guaranty State Bank consolidated with the American State Bank of Detroit. The executors voted in favor of this consolidation, surrendered the stock of the Guaranty State Bank, and received in lieu thereof stock in the American State Bank issued in the name of Matthew Slush. Some time later the commissioner of the banking department upon examination found impairment of the capital of the American State Bank. He directed a 100 per cent. stock assessment; and the bank directors levied the assessment accordingly. The assessment on the stock standing in the name of Matthew Slush was not paid. This suit was brought both by the American State Bank and by its successor, First National Bank-Detroit, to enforce payment of the assessment by the estate of Matthew Slush, deceased. The relief sought was denied, and plaintiffs have appealed.

The specific relief sought was that the American State Bank stock issued in the name of Matthew Slush be decreed to be the property of his estate; and that the stock assessment made thereon be decreed to be ‘an expense of administration.’

For the purpose of decision herein, it is wholly immaterial whether the stock issued became the property of the estate of the deceased or whether the executors had the power to make the exchange of stock. The assessment sought to be enforced against the estate was levied under section 11941 of the Compiled Laws of 1929. So far as material, it reads: ‘Whenever it shall appear from the report of any bank, or the commissioner shall have reason to believe that the capital of any bank is impaired or reduced below...