Loan & Savings Bank of York v. Lowry

Decision Date01 September 1933
Docket Number13688.
PartiesLOAN & SAVINGS BANK v. LOWRY.
CourtSouth Carolina Supreme Court

Appeal from Common Pleas Circuit Court of York County; William H Grimhall, Judge.

Petition by Hart & Moss, on the relation of H. E. De Pass, against E B. Lowry, receiver of the Loan & Savings Bank in liquidation. From an order allowing a certain claim as preferred defendant appeals.

Reversed.

Finley & Spratt, of York, for appellant.

Hart & Moss, of York, for respondent.

BLEASE Chief Justice.

B. C. Adams, of York county, at some time not stated in the record, but prior to March 23, 1931, was adjudged a bankrupt in the United States Court for the Western District of South Carolina. Desiring to submit, under the bankruptcy laws, an offer of composition to his creditors, and to accomplish that purpose, he placed, on March 23, 1931, with his attorneys, Messrs. Hart & Moss, of York, the sum of $3,000.

On the day the money was received by them, Messrs, Hart & Moss deposited the amount to their account in the Loan & Savings Bank of York. On that day, the attorneys issued their check on the Loan & Savings Bank, payable to the order of that bank, for $3,000, for which the cashier of the bank issued the bank's check on the Chase National Bank of New York City for the sum of $3,000, which check was payable to the order of D. C. Durham, clerk of the United States Court for the Western District of South Carolina. The amount of their check was charged to the account of Messrs. Hart & Moss. The cashier's check was delivered to Messrs. Hart & Moss, who forwarded it to Mr. Durham.

The Loan & Savings Bank, on account of insolvency, closed its doors on September 18, 1931.

The clerk, Mr. Durham, retained the check in his possession pending action on the offer of composition made by the bankrupt, and the check was not presented to the Chase National Bank for payment. After the Loan & Savings Bank closed, Mr. Durham assigned the check to H. E. De Pass, Esq., referee in bankruptcy.

At the time of the closing of the Loan & Savings Bank, that bank had on deposit to its credit in the Chase National Bank of New York $9,249.59, which amount the Chase National Bank applied to the partial payment of a note made to it by the Loan & Savings Bank. The Loan & Savings Bank, before its closing, had charged on its books the check for $3,000, payable to Mr. Durham, the clerk, against its account in the Chase National Bank.

Messrs. Hart & Moss, as petitioners, presumably representing not only themselves, but the referee in bankruptcy and the bankrupt, filed with the receiver a claim for preference as to the mentioned $3,000 check, which claim the receiver refused.

Upon the petition of Messrs. Hart & Moss in the court of common pleas of York county, setting forth the facts above stated, and the return of the receiver of the bank, admitting the essential facts, the matter was heard by his honor, Circuit Judge Grimball.

It appears from the arguments of c...

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1 cases
  • South Carolina State Bank v. Citizens' Bank
    • United States
    • South Carolina Supreme Court
    • September 27, 1934
    ... ... 1931, to the National Loan & Exchange Bank, and that the same ... was paid by Swift & Co. on ... Bradley, 136 S.C. 511, 134 S.E. 510, and Loan & Savings Bank v. Peurifoy, 141 S.C. 318, 139 S.E. 783 ... However, if the claims ... In order to pay a note ... of the town soon to be due in New York, the city treasurer ... drew the check of the town upon the bank for ... ...

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