First National Bank of Westhope, a Corp. v. Messner
Decision Date | 28 April 1913 |
Court | North Dakota Supreme Court |
Appeal from the District Court for Bottineau County, Burr, J.
Action to recover damages caused by the alleged unauthorized act of plaintiff's agents, defendants in this action.
From an order overruling defendant's demurrer to the complaint defendants appeal.
Affirmed.
Order of the District Court overruling the demurrer sustained, and cause remanded.
Noble Blood & Adamson, for appellants.
A conveyance or mortgage of real estate to a national bank as security, except for a prior indebtedness, is prohibited by law. U.S. Rev. Stat. ed. 1878, § 5137, U.S. Comp. Stat 1901, p. 3460.
Soule & Cooper and Bangs, Cooley, & Hamilton, for respondent.
The United States alone has the right to complain of any infraction of the National Banking Laws. 2 Morse, Banks & Bkg. 4th ed. p. 1187, § 750. As against a demurrer, a pleading will be deemed to allege whatever can be implied by fair and reasonable intendment. Sommer v. Carbon Hill Coal Co. 32 C. C. A. 156, 59 U.S. App. 519, 89 F. 54; Roberts v. Samson, 50 Neb. 745, 70 N.W. 384; Wenk v. New York, 171 N.Y. 607, 64 N.E. 509; Emerson v. Nash, 124 Wis. 369, 70 L.R.A. 526, 109 Am. St. Rep. 944 102 N.W. 921.
BRUCE, J. GOSS, J., did not participate.
This is an appeal from an order overruling a demurrer to a complaint. The complaint, among other things alleges that the plaintiff bank loaned money to the Westhope Land & Loan Company, which said loans were secured by real estate securities; that at the times mentioned, the defendant J. M. Messner was the cashier of the plaintiff bank, and also the secretary and a stockholder of the Westhope Land & Loan Company; and that the defendant Hilleboe was vice president of the said bank, and president and a stockholder in the land company; that for a long time prior to the suit they had ceased to be such officers of said bank, but continued to be officers and stockholders of the land company; that "all of said loans were thereafter repaid by the said Westhope Land & Loan Company to this plaintiff, without interest; and that these two defendants, without right or authority, and with full knowledge of all the terms of the agreements hereinbefore set forth, and in violation of their duties as cashier and vice president, respectively, of this plaintiff, and with the wrongful intention of defrauding this plaintiff, and with wrongful intention of perverting the funds of this plaintiff to their own use, did wrongfully and unlawfully jointly conspire to and did convey and release to the said Westhope Land & Loan Company the real estate securities held by this plaintiff to secure the payment of said loans, together with interest thereon, and failed and neglected to collect the stipulated interest on the said loans, all to the plaintiff's damage in the sum of $ 2,957.28, no part of which has been paid, though payment thereof has been demanded; that the said Westhope Land & Loan Company has neglected and refused to pay said interest or any part thereof, and is, and for a long time prior hereto has been, insolvent, and without any property out of which any judgment against the said company can be collected either upon execution or otherwise, and has no property subject to levy under any process whatsoever."
The demurrer raised the objection that the complaint did not state facts sufficient to constitute a cause of action, and specified that the same did not charge
BRUCE J. (after stating the facts as above). It is unnecessary for us to consider the question of...
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