Griffin v. Brewer

• Decision Date: 10 April 1934
• Docket Number: Case Number: 21817
• Citation: 1934 OK 227,167 Okla. 654,31 P.2d 619
• Parties: GRIFFIN v. BREWER.
• Court: Oklahoma Supreme Court

1934 OK 227

31 P.2d 619

167 Okla. 654

GRIFFIN v. BREWER.

Case Number: 21817

Supreme Court of Oklahoma

Decided: April 10, 1934

Syllabus

¶0 1. Banks and Banking--Stockholders' Double Liability not Part of "Assets" of Insolvent State Bank Purchased Through Public Sale From State Bank Commissioner.

A purchaser of the assets of an insolvent state bank through a public sale from the State Bank Commissioner, which includes all moneys that might be derived from the shareholders of the bank by reason of the double liability of the shareholders, does not become the owner of nor acquire any interest in any sum or sums which might become due or payable by reason of the operation of the stockholders' double liability law.

2. Same--Contract Between Purchaser of Assets and Stockholder to Extinguish Stockholder's Liability Held Voidable for Lack of Consideration.

Where a shareholder of an insolvent state bank and the purchaser of the assets of the bank at public sale from the Bank Commissioner enter into a contract to extinguish the liability of the shareholder resulting from the operation of the stockholders' double liability law, the contract is voidable for lack of consideration.

Appeal from District Court, Oklahoma County; Wyley Jones, Judge.

Action by J. L. Brewer against W. P. Griffin. Judgment for plaintiff, appealing from adverse decision in justice court, and defendant brings error. Reversed and remanded, with directions.

J. D. Lydick and Murray F. Gibbons, for plaintiff in error.

C. E. Morrison, for defendant in error.

PER CURIAM.

¶1 This suit was brought by J. L. Brewer, as plaintiff below, in the justice court of Oklahoma county, against W. P. Griffin, defendant below, on a written contract entered into by the parties for the settlement of all liability of the defendant, W. P. Griffin, resulting from the operation of the stockholders' double liability law. The justice court rendered a decision in favor of Griffin, whereupon Brewer appealed to the district court of Oklahoma county. Upon appeal of said cause from justice court to the district court of Oklahoma county, the following stipulation of the facts was entered into:

"It is hereby stipulated and agreed by and between the parties hereto, by and through their respective attorneys of record, that the following facts constitute the evidence in the case at bar.

"That on Tuesday, November 27, 1928, one J. L. Brewer, plaintiff herein, purchased at public sale of and from the Bank Commissioner of the state of Oklahoma, said Bank Commissioner then and there acting in his official capacity as liquidating agent for a failed state bank, namely, the Carnegie Bank, better known as the Citizens State Bank of Carnegie, Okla., the assets of said bank, and paid a valuable consideration therefor. That included in said assets as advertised by the Bank Commissioner and as sold by the Bank Commissioner was all moneys that might be derived from the stockholders in and of said bank under what is commonly known as the 'stockholders' double liability clause'; that said Bank Commissioner acted in good faith in including such liability as part of the assets of said bank; that by reason of decisions rendered by the Supreme Court of the state of Oklahoma after said sale, said Bank Commissioner had no authority to include any liabilities arising under said stockholders' double liability clause as part of the assets of said failed bank; that plaintiff herein was and is a purchaser in good faith of said claims.

"That the plaintiff and defendant herein, each acting in good faith, contracted between themselves that said defendant should pay said plaintiff the sum of $ 400 as full and complete satisfaction of any and all claims arising by reason of defendant's indebtedness as aforesaid. That by the terms of said contract, defendant was to pay to plaintiff the sum of $ 25 per month, beginning the 5th day of June, 1929, and continuing such monthly payments of $ 25 thereafter on each and every month until the said sum of $ 400 had been paid; that after $ 225 had been paid by the defendant to the plaintiff herein defendant refused to make any further payment; thereafter plaintiff filed suit in justice court in and for Oklahoma City district, Oklahoma City, Okla., wherein he prayed judgment against defendant in the sum of $ 175, balance due under said contract and agreement; that by way of answer defendant filed a cross-petition, wherein he prayed that said contract or agreement be voided; that defendant be released from terms of same, and that he have and recover from the plaintiff the sum of $ 225 heretofore paid. Defendant waived all right or claim to any sum or sums in excess of the sum of $ 200; that upon the trial of issues thus joined, defendant prevailed and the court entered

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