Lewis State Bank v. Raker
| Decision Date | 23 May 1939 |
| Parties | LEWIS STATE BANK v. RAKER et al. |
| Court | Florida Supreme Court |
Suit in equity by Ira B. Raker, as administrator of the estate of James E. Jackson, deceased, for the use and benefit of Gertrude N. Jackson, and the latter, against the Lewis State Bank, for restoration to the administrator's credit of the amount of his check, paid by defendant after unauthorized indorsement of payee's name by the county judge, and cancellation of the latter's order discharging the administrator. Decree for complainant, and respondent appeals.
Affirmed. Appeal from Circuit Court, Leon County; E. C Love, Judge.
Oven & Oven, of Tallahassee, for appellant.
Waller & Meginniss and Madeline A. Jacobson, all of Tallahassee, for appellees.
In the former appeal of this cause the court decided that the bill of complaint was not without equity and affirmed the action of the chancellor denying a motion to dismiss. Lewis State Bank v. Baker, 126 Fla. 477, 171 So. 319.
We have examined the testimony introduced by the respective parties and find that the following facts are relied upon by the complainants to substantiate the allegations of the bill of complaint; Ira B. Raker was appointed by the County Judge of Wakulla County administrator of the estate of James E. Jackson, and in that capacity become possessed of certain monies which he deposited in the Lewis State Bank reaching the amount, on April 8th, 1931, of $2774.69. On March 4th, 1931, the County Judge, one Raney Whaley, entered an order requiring the administrator to pay the costs of the proceedings, his and his attorney's fees and an amount owed by the widow to another bank, and to remit to Gertrude N. Jackson, widow of James E. Jackson, the sum of $2728.29 with interest.
In obedience to this order, the administrator issued checks for the sums ordered to be paid, including one for the residue to Gertrude N. Jackson. Upon verbal request by the County Judge the Administrator delivered the checks to the former, who agreed to mail them to the payees. Instead of forwarding the check to Gertrude N. Jackson, the County Judge indorsed the same 'Gertrude N. Jackson By Raney Whaley', and presented the same for payment at the Capital City Bank in Tallahassee, where it was, according to the bank's records, deposited to Whaley's credit. This bank immediately presented the check to the Lewis State Bank, the drawee, and it was paid.
On the 13th of April, 1931, Raney Whaley paid to the Lewis State Bank the balance of $100 due on a promissory note signed by him and indorsed by another person. The same day Whaley deposited in the Lewis State Bank $103.70 and the following day, $250. No part of the residue of the estate due Gertrude N. Jackson has been paid to her. The records of the two banks also show a check for $250 on Whaley's account in the Capital City Bank and a deposit on the same day in the Lewis State Bank for that amount.
The County Judge, despite his knowledge that he had misused the monies of the estate belonging to Gertrude N. Jackson, on the 22d of June, ordered the administrator discharged. Several months elapsed before the administrator learned of the irregularity in handling the funds of the estate.
From August, 1932 until July, 1933, there was an exchange of correspondence between attorneys in Brooklyn and in Tallahassee, discussing the rights and remedies of Gertrude N. Jackson, and finally in August, 1935 the bill was filed.
The rascality of Raney Whaley seems thoroughly established. He presumed upon the respect that one in his position should command and induced the administrator to deliver to him a check which was given for the payment of funds which were held in trust by the one and subject to the supervision of the other. He proceeded to sign the payee's name on the check without apparent authority and then appropriated the money to his own needs. Between the dates the check was made and deposited he advised Gertrude N. Jackson that she could expect her money soon. Sometime after July 21st he wrote her that it would be remitted 'as soon as the law had been fully complied with'. Five months after the misappropriation (September 30th) he assured her 'it is in the hands of the Court and perfectly safe so you have nothing to worry over', and on December 1st: 'Mr. Ira B. Raker has nothing more to do with this money and it is in the hands of the Court * * * perfectly safe * * *.' These assurances were made by Whaley knowing he had taken legatee's money unlawfully and converted it to his own use.
The defendant is not chargeable with the gross misconduct on the part of Whaley, County Judge, but it is well to review his actions for he was able to take advantage of Gertrude N. Jackson because of the part the bank played in honoring a check, indorsed as we have shown when on its very face such indorsement was irregular. It is fact, too, that Whaley was no stranger to the bank. He was a depositor and his account was carried in the title of 'Judge Raney Whaley, Crawfordville, Florida.' He was a debtor, also, because of the notes to which we have referred. Evidently the bank had some knowledge of his financial standing for he was able to borrow money, although his note bore the name of indorsers.
Another very significant...
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