Kimbrough v. Carter
| Decision Date | 01 January 1920 |
| Docket Number | 22029 |
| Citation | 129 Miss. 337,92 So. 229 |
| Court | Mississippi Supreme Court |
| Parties | Kimbrough Et Al. v. Carter Et Al. |
1 INTEREST. Rule for computing partial payments stated.
The rule for computing interest where partial payments are made is to compute interest on the principal debt to the date of the first payment, where this equals or exceeds the interest due, then deduct the payment from the aggregate of principal and interest, and repeat the process as to successive payments. Where the payment does not equal or exceed the amount of interest due at the time when it is made, interest on the first principal should be computed until such time as the aggregate partial payments made equal or exceed the amount of interest due when the payment was made which, with prior payments, equals or exceeds the accrued interest, and such aggregate should then be deducted from the sum of the original principal and accrued interest; the balance constituting a new principal.
2 INTEREST. Held that decree should be for actual amount found by master, including interest to date of decree.
Where the report of a master appointed to state an account contains an error in the computation of interest because of which the decree rendered is for an amount different from that reported by him to be due, the decree rendered should be, not for the amount which the master should have reported to be due, with interest thereon from the date of the report, but for the actual amount due, including interest to the date of the decree.
3. BANKS AND BANKING. Where bank's receivers are also directors and are sued for benefit of bank, special receiver should be appointed.
Where the creditors and stockholders of a bank are permitted to recover from the directors money of the bank lost because of the negligence of the directors, the recovery is for the bank for the benefit of all of its creditors and stockholders, and where the bank is in the hands of receivers who were also directors of the bank against whom the recovery is sought, a special receiver should be appointed to collect and distribute the money to be recovered for the bank from its directors.
HON JAS. G. MCGOWEN, Chancellor.
Suit by R. C. Carter and others against Duke M. Kimbrough and others and from the decree therein the defendants appeal and the complainants cross-appeal. Reversed, and decree rendered.
Wilson & Armstrong, H. H. Creekmore and J. W. T. Falkner, for appellant. C. L. Bates and L. C. Andrews, for appellee.
This is a suit in equity in which a number of creditors and stockholders of the Merchants' & Farmers' Bank of Oxford, Miss., seek to recover from the directors of the bank money alleged to have been loaned and lost by the bank because of the negligence of its directors. Two of the directors were also receivers of the bank, the affairs of which were in liquidation when the original bill herein was filed. The case was here on appeal once before as Carter et al. v. Kimbrough et al., 122 Miss. 543, 84 So. 251. The court below, after finding that money of the bank had been lost through the negligence of its directors, submitted the cause to a master to state an account thereof, and on the coming in of his report rendered a decree against the directors for a portion of the amount reported by the master as having been lost to the bank because of their negligence. A receiver was appointed to collect the judgment rendered, and with instructions to ascertain the names of all of the bank's creditors and stockholders, both those who joined in the bill filed herein as complainants and those who did not, and report them to the court for further direction as to the distribution of the money collected by him herein. From this decree the defendants in the court below prosecuted a direct and the complainants a cross appeal.
The master's report sets forth a liability of the directors for money loaned to...
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