McIlroy Bank & Trust Co. v. Comstock

Decision Date07 November 1984
Docket NumberNo. CA,CA
Citation678 S.W.2d 782,13 Ark.App. 13
CourtArkansas Court of Appeals
PartiesMcILROY BANK & TRUST COMPANY, Appellant, v. Lavonne COMSTOCK, Appellee. 84-101.

Ball, Mourton & Adams by Stephen E. Adams, Fayetteville, for appellant.

Davis & Bracey, P.A. by Charles E. Davis, Springdale, for appellee.

MAYFIELD, Judge.

Eva Denny purchased three certificates of deposit from appellant bank payable to herself or Mrs. LaVonne Comstock or Eva Jo Browne, her daughters. Shortly after Denny's death, Browne went to the bank and asked that they not cash the certificates without notifying her. Authorities of the bank agreed although the bank was not given a written notice of an adverse claim. Subsequently, Mrs. Comstock presented the certificates to the bank for payment. The bank agreed to pay only if Mrs. Comstock would sign an indemnity agreement. She executed such an agreement and was paid $4,559.34, the face value of the certificates plus interest. Thirteen months later Mrs. Browne demanded payment from the bank of "her share" of the certificates and was paid $2,468.37. When Mrs. Comstock refused to reimburse the bank for that amount under the indemnity agreement, this action was brought. At the close of the bank's case, the trial court granted Mrs. Comstock's motion to dismiss. The bank has appealed.

Ark.Stat.Ann. § 67-552 (Repl.1980), which is Act 78 of 1965, provides:

Checking accounts and savings accounts may be opened and certificates of deposit may be issued by any banking institution with the names of two or more persons, either minor or adult, or a combination of minor and adult, and such checking accounts, savings accounts and certificates of deposits may be held:

....

(d) If an account is opened or a certificate of deposit is purchased in the name of two (2) or more persons, whether as joint tenants, tenants by the entirety, tenants in common, or otherwise, a banking institution shall pay withdrawal requests, accept pledges of the same, and otherwise deal in any manner with the account or certificate of deposit upon the direction of any one (1) of the persons named therein, whether the other persons named in said account or certificate of deposit be living or not; unless one (1) of such persons named therein shall by written instructions delivered to the banking institution designate that the signature of more than one (1) person shall be required to deal with such account or certificate of depost [deposit].

Ark.Stat.Ann. § 67-521 (Repl.1980), which is Act 444 of 1965, provides:

When a deposit shall have been made in the names of two or more persons and in form to be paid to any of the persons so named, such deposit ... shall become the property of such persons as joint tenants, and the same, together with all interest thereon, shall be held for the exclusive use of the persons so named, and may be paid to any of said persons. Such payment and the receipt or acquittance of the one to whom such payment is made shall be a valid and sufficient release and discharge of said bank for all payments made on account of such deposit prior to the receipt by said bank of notice in writing signed by any one of said joint tenants not to pay such deposit in accordance with the terms thereof.

The Supreme Court of Arkansas considered both § 67-552 and § 67-521 in Cook v. Bevill, 246 Ark. 805, 440 S.W.2d 570 (1969). The Court pointed out that the two acts should be construed together and that the legislative intent was clearly...

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3 cases
  • Estate of Bogar v. Welspun Pipes, Inc.
    • United States
    • Arkansas Court of Appeals
    • October 8, 2014
    ...suffered or agreed to be suffered by a promisor other than such as he is lawfully bound to suffer. McIlroy Bank & Trust Co. v. Comstock, 13 Ark.App. 13, 678 S.W.2d 782 (1984). Here, mutual obligation is to be found in the evidence, also recited by the Commission, that Welspun reimbursed Eli......
  • Landmark Sav. Bank, F.S.B. v. Weaver-Bailey Contractors, Inc.
    • United States
    • Arkansas Court of Appeals
    • November 11, 1987
    ...suffered or agreed to be suffered by a promisee other than that which he is lawfully bound to suffer. McIlroy Bank & Trust Co. v. Comstock, 13 Ark.App. 13, 678 S.W.2d 782 (1984). Here, appellant was allegedly obligated to Carter in the amount of $38,000.00. It had no obligation as such to a......
  • Bass v. Service Supply Co., Inc.
    • United States
    • Arkansas Court of Appeals
    • September 28, 1988
    ...suffered or agreed to be suffered by a promisor other than such as he is lawfully bound to suffer. McIlroy Bank & Trust Co. v. Comstock, 13 Ark.App. 13, 678 S.W.2d 782 (1984). Appellant argues that there was no consideration to support the guaranty because appellee had extended credit to Ba......

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