Guilford Bank of Guilford v. Hubbell

• Decision Date: 01 April 1940
• Docket Number: No. 19703.,19703.
• Citation: 138 S.W.2d 690
• Parties: GUILFORD BANK OF GUILFORD, Mo., et al. v. HUBBELL et al.
• Court: Missouri Court of Appeals

138 S.W.2d 690

GUILFORD BANK OF GUILFORD, Mo., et al. v. HUBBELL et al.

No. 19703.

Kansas City Court of Appeals. Missouri.

April 1, 1940.

Appeal from Circuit Court, Nodaway County; Ellis Beavers, Judge.

"Not to be published in State Reports."

Interpleader proceeding by the receivers of the Guilford Bank of Guilford and others against Archie D. Hubbell, J. L. Hocker, and J. L. Ballard, after whose death the administrator of his estate, George Ballard, was substituted as a party respondent, to adjudicate respondents' claims to a dividend on money deposited in the bank by respondent Hubbell. From a decree awarding the entire fund to respondent Hubbell, respondents Hocker and administrator appeal.

Affirmed.

A. F. Harvey, of Maryville, for appellant Geo. Ballard, Adm'r of estate of J. L. Ballard, deceased.

Dubois & Miller, of Grant City, for respondent-interpleader Archie D. Hubbell.

BLAND, Judge.

This is a proceeding, by Bill of Interpleader, in which the fund in controversy was awarded to the respondent, resulting in this appeal.

The facts show that on January 13, 1932, the respondent Archie D. Hubbell deposited in the Guilford Bank the sum of $10,000, and received a certificate of deposit therefor, payable 6 months after date, with interest at 4%. To induce him to make said deposit, appellants, J. L. Hocker and J. L. Ballard, together with Carl Wray and Arthur Thompson, all stockholders of said bank, signed and delivered to the said Hubbell a contract of guaranty, by which they guaranteed to the said Hubbell that the deposit would be paid to him on maturity by the said Guilford Bank.

On January 30, 1932, the Bank was closed and its business affairs were placed in the hands of the Commissioner of Finance of this State.

On September 2, 1932, suit was commenced by Hubbell against the said four guarantors upon the guaranty in the sum of $10,000 and interest. It appears that Thompson was not served with summons. Hocker, Ballard and Wray filed a joint answer, denying the allegations of the petition and denying that they were liable on said bond in any sum whatsoever.

On October 28, 1932, Hubbell filed with the Commissioner of Finance a claim against the Bank in the sum of $10,161.11, based upon the certificate of deposit, which claim was proved and allowed in that amount, on December 6, 1932.

On the 24th day of April 1933, a stipulation was entered into between plaintiff Hubbell and defendants, Hocker and Ballard, in the suit of Hubbell against the guarantors, wherein it was agreed that Hubbell would accept the conveyance of certain real estate and the payment of $500, to be conveyed and paid by Hocker and Ballard "in full settlement of the obligation of the said J. L. Hocker and J. L. Ballard on account of the execution of the contract of guaranty mentioned and set forth in said above entitled cause."

Thereafter said land was conveyed and money paid by Hocker and Ballard to Hubbell. On October 20, 1937, Hubbell received a dividend of $598.06 on his claim, and on March 6, 1939, a dividend of $772.24 was declared on the claim. Hubbell, on the one hand, and Hocker and Ballard, on the other, claimed to be entitled to the second dividend.

The Receivers filed a bill of interpleader in the circuit court asking that the claimants to the second fund be required to interplead for the same. The court duly sustained the bill of the interpleader, and the parties hereto duly filed their interpleas. In the meantime Ballard departed this life. Hubbell, on his part, claimed the fund and Ballard's...