First Nat. Bank v. Hemrich, 26033.

• Citation: 58 P.2d 827,186 Wash. 499
• Decision Date: 19 June 1936
• Docket Number: 26033.
• Parties: FIRST NAT. BANK OF SEATTLE v. HEMRICH et al. (two cases.
• Court: United States State Supreme Court of Washington

58 P.2d 827

186 Wash. 499

FIRST NAT. BANK OF SEATTLE v. HEMRICH et al. (two cases.

No. 26033.

Supreme Court of Washington, En Banc.

June 19, 1936

Appeal from Superior Court, King County; J. T. Ronald, Judge.

Actions by the First National Bank of Seattle, a national banking association, against Anita Hemrich, individually and as guardian of the estate of John A. Hemrich, an incompetent person, and others. Judgments for the plaintiff, and named defendant appeals.

Affirmed.

F. C Kapp, of Seattle, for appellant.

Poe Falknor, Falknor & Emory, of Seattle, for respondent.

TOLMAN Justice.

In October, 1934, the respondent bank commenced two separate actions predicated upon promissory notes made by John A Hemrich. One suit was based upon notes made by Hemrich alone and the other upon a note signed by Hemrich and also by the Old Yankee Syrup Company, a corporation. Amelia Hemrich, as guarantor of all of the notes, was made a defendant in each suit. In each complaint it was alleged that Hemrich had pledged and delivered to the plaintiff 697 shares of the capital stock of the First National Bank of Seattle as security for the payment of the note or notes, and each complaint sought the foreclosure of the plaintiff's pledgee's lien upon the same 697 shares of stock.

The two cases were consolidated for trial below and tried to the court sitting without a jury. The trial court found: 'That heretofore, and for the purpose of securing plaintiff in the prompt and faithful payment of any and all obligations owing or to be owed in the future to plaintiff by said John A. Hemrich, the latter pledged and delivered to plaintiff, and plaintiff has at all times since held as pledgee, 697 shares of the capital stock of First National Bank of Seattle, a national banking association. That said stock was taken by the plaintiff as security upon a debt previously contracted in good faith. That plaintiff has a pledgee's lien upon said stock which is prior and paramount to any interest of the defendants in and to said stock, and that plaintiff's pledgee's lien thereupon should be foreclosed in the manner provided by law and that the proceeds of said sale should be applied in partial satisfaction of the judgment awarded plaintiff herein, and in satisfaction of the judgment awarded plaintiff for attorneys' fees.'

Judgments were entered for the amount claimed in each action, and each judgment established in the plaintiff a pledgee's lien upon the bank stock and provided for the foreclosure of the lien and the sale of the bank stock to satisfy such lien.

Anita Hemrich, individually and as guardian of the estate of John A. Hemrich, has appealed, and the errors assigned and argued all go to the question of whether or not the respondent ever had a pledgee's lien on the bank stock.

We cannot set forth the various arguments presented or attempt a detailed answer to each, but must be content with indicating the evidence which, in our opinion, amply sustains the finding of fact made by the trial court hereinBefore quoted.

There was introduced in evidence so-called 'general loan and collateral agreement,' dated October 13, 1923, executed by John A. Hemrich and by him delivered to the respondent which, among other things, provides: 'In order to obtain loans from and otherwise deal with the Dexter Horton National Bank of Seattle, [the predecessor in interest of respondent] the undersigned agrees that all loans, advances or credits hereafter or heretofore obtained from said bank by the undersigned shall be repayable by the undersigned at said bank on demand, unless otherwise agreed in writing at the time, and shall bear interest at rates to be agreed upon; and the undersigned for value received hereby assigns to the Dexter Horton National Bank of Seattle, as security for any and all indebtedness, obligation or liability of the undersigned to said bank, now or hereafter existing, matured or not matured, absolute or contingent, individual or firm, and wherever payable, including in addition to other indebtedness, obligation and liability, all such as may arise from endorsements of notes, acceptances or any other items or paper discounted by said bank or held by said bank, either absolutely or as collateral security to any loans or advances of any sort whatever, and including overdrafts and indebtedness by the undersigned to said bank, on account of collections or paper received for collection by the undersigned, the following, viz: All moneys, chattels, negotiable instruments, securities, bills of lading, warehouse receipts, paper credits, demands, choses in action, rights and property of every kind, tangible or intangible, at any time in possession or control of said bank or any of its agents or correspondents, or in transit to it by mail or carrier, belonging to, for account or subject to the order of the undersigned, * * * and the...