Hines v. Wilson
| Decision Date | 01 October 1927 |
| Docket Number | 5768. |
| Citation | 139 S.E. 802,164 Ga. 888 |
| Parties | HINES et al. v. WILSON et al. |
| Court | Georgia Supreme Court |
Syllabus by Editorial Staff.
Petition by depositors of insolvent bank against directors of bank to set aside conveyances by directors as in fraud of creditors rendering directors insolvent, and to recover damages from directors for falsely representing condition of bank inducing plaintiffs to make deposits, joining directors and grantees as defendants, set out cause of action against general demurrer.
Where part of petition is good, entire petition is sufficient to withstand general demurrer; bad part of pleading not making entire pleading bad.
Under Banking Act 1919 (Acts 1919, p. 156) art. 7, § 7, amended by Acts 1922, p. 65, power of superintendent of banks is confined to matters relating to assets of bank as such or debts and liabilities due bank in its corporate capacity, and does not include authority to sue for torts committed by officers of bank on depositors.
Where parties conspire to defraud plaintiff or make willful misrepresentation of material fact to induce plaintiff to act to his injury, an action for deceit will lie.
Under Civ. Code 1910, § 4405, directors of corporation may be liable for false statements in regard to affairs of corporation as for fraud and deceit.
Where representations are made to public generally or to particular class of persons with intention of influencing any member of public or class, any person injured through reliance on representations may secure redress; it not being necessary that there should be intention to defraud any particular person.
Directors or officers of corporation are liable for fraudulent acts and representations to persons injured thereby, and fact that they acted for benefit of corporation and are not personally benefited, or that company is nominally contracting party does not relieve them from liability.
An equitable petition to set aside conveyances as made in fraud of rights of creditors can be joined with suit for fraud and deceit.
Liability of directors of corporation for fraud and deceit resulting in damages to creditors of corporation is joint and several liability.
Under Civ. Code 1910, § 5419, where defendant is alleged to have transferred property separately to two grantees, both conveyances being in fraud of creditors, several grantees can be joined in suit against grantor for fraud and deceit and to set aside fraudulent conveyances of property.
Under Civ. Code 1910, § 3216, one suit may be brought to recover on debt and to set aside fraudulent conveyances, joining debtor and grantees as defendants.
Where there is common connecting interest in subject-matter which plaintiffs are attempting to subject to lien of judgment or decree, and where either plaintiffs or defendants have common interest in point at issue, different defendants may be joined in same action.
Error from Superior Court, Gordon County; James Maddox, Judge.
Equitable petition by Mrs. M. W. Wilson and others against W. L. Hines and others, as directors of the People's Bank of Calhoun. Judgment for plaintiffs, and defendants bring error. Affirmed.
Joe M. Lang, of Calhoun, and Morris, Hawkins & Wallace, of Marietta, for plaintiffs in error.
Willingham, Wright & Covington, of Rome, and Y. A. Henderson, of Calhoun, for defendants in error.
Syllabus OPINION.
1. The allegations of the petition were sufficient to withstand the general demurrer based upon the grounds that the petition fails to set out a cause of action, that the allegations are not sufficient to authorize the grant of any of the relief prayed for, and that the petition shows on its face that the plaintiffs have no right of action against the defendants on account of the facts alleged. A general demurrer will not prevail where part of the petition is good. Lowe v. Burke, 79 Ga. 164, 3 S.E. 449; Pryor v. Brady, 115 Ga. 848, 42 S.E. 223. A bad part in pleading does not make the whole bad, but a good part makes the whole good enough to withstand a general demurrer. Munnerlyn v. Augusta Bank, 88 Ga. 333, 339, 14 S.E. 554, 30 Am.St.Rep. 159.
2. The power conferred upon the superintendent of banks by section 7 of article 7 of the Banking Act of 1919 (Acts 1919, pp. 135, 156), as amended by the act of 1922 (Acts 1922, pp. 63, 65), is in terms confined to such matters as relate to the assets of the bank as such-debts and liabilities due to the bank in its corporate capacity-and does not include authority to sue for torts committed upon depositors by individuals who happen to be officers of the bank.
(a) Where parties conspire to defraud the plaintiff or make a willful misrepresentation of material fact to induce the plaintiff to act to his injury, an action for deceit will lie. Cheney v. Powell, 88 Ga. 629, 15 S.E. 750. The directors of a corporation may be liable for false statements in regard to the affairs of the corporation, as for fraud and deceit. "When the law requires one to do an act for the benefit of another, or to forbear the doing of that which may injure another, though no action be given in express terms, upon the accrual of damage the party may recover." Civil Code 1910, § 4405.
(b) Where representations are made to the public at large, or to a particular class of persons, with the intention of influencing any member of the public or of the class to whom they may be communicated, any one injured through the proper reliance thereon may secure redress. In such a case it is not necessary that there should be an intent to...
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