North Carolina Corporation Commission v. United Commercial Bank
| Decision Date | 24 September 1941 |
| Docket Number | 102. |
| Parties | NORTH CAROLINA CORPORATION COMMISSION v. UNITED COMMERCIAL BANK. |
| Court | North Carolina Supreme Court |
In January, 1925, the United Commercial Bank, in an action entitled as above, was adjudged insolvent and the Branch Banking & Trust Company was appointed receiver thereof. Shortly before the closing of the bank J. K. Reid, as Sheriff and Tax Collector of Washington County, received checks on said bank from depositors therein in payment of taxes due said county aggregating $1,347.57, for which he delivered to the drawers of said checks tax receipts for the respective amounts thereof, and also paid to said county the amount of said checks in his settlement of taxes. In July, 1927, before any dividends were paid by the receiver, Sheriff Reid filed claim, accompanied by the checks, with the receiver for the amount of said checks. The receiver held said claim and checks till 1936, and then notified Sheriff Reid that he could not pay said claim. Sheriff Reid then filed petition in the cause to compel the receiver to recognize the claim and pay the same out of any unclaimed funds in the hands of the receiver. Judge Harris heard the petition in February, 1936 and entered an order "that the Receiver accept the said claim as a claim against any unclaimed funds which it has on hand and that it pay to the petitioner the sum of $1347.57 on account of the said unpaid checks out of any unclaimed funds which it has in hand belonging to the said Receivership." No exception was entered to this order. The petitioner, the University of North Carolina, was not given notice of the application therefor or of the order. The receiver failed to comply with this order, and stated from time to time that the auditors had not completed their audit of the receivership accounts and it was unable to determine the amount on hand applicable to the order of the judge. When Judge Harris returned to Washington County in regular rotation at the January Term, 1941, Sheriff Reid brought the matter to his attention and the judge directed the receiver to file report showing the amount it had on hand to apply on the claim and order heretofore filed and made. The receiver immediately, under date of January 15, 1941, filed report in accord with this order showing a balance standing to the credit of the dividend account of the receivership of $651.36. Whereupon Judge Harris at the January Term, 1941, of Washington County, entered order reinstating the receivership which had theretofore been closed, and directing the receiver "to pay over to J. K. Reid, Sheriff, the said sum of Six Hundred Fifty-One and 36/100 ($651.36) Dollars, and that his receipt shall serve as a full release and acquittance ***" No exception was noted to this order. The petitioner, the University of North Carolina, was not made a party thereto and was not given notice thereof. No payment has been made by the receiver to J. K. Reid, Sheriff, under this order. On June 23, 1941, the University of North Carolina filed a petition in the cause alleging that it under the escheat laws of the state, was the owner of all unpaid and unclaimed proceeds of the liquidation, and that the $651.36, balance, standing to the credit of the dividend account of the receivership, is the property of the petitioner. J. K. Reid, Sheriff, filed answer to the petition of the University wherein he denied that it was owner of the funds in the dividend account of the receiver, and averred that he is the owner thereof according to law, and by virtue of the orders of Judge Harris. Whereupon Judge Harris "ordered, adjudged and decreed that the execution of all orders heretofore entered by Harris, Judge, in connection with and directing the payment of a certain fund in the hands of Branch Banking & Trust Company, Receiver of the United Commercial Bank, be, and the same are hereby suspended until further passed on, and the University of North Carolina is directed to appear before the judge presiding over the July Term, 1941, of Superior Court of Washington County and present whatever claim they may have for said fund, or show cause why the orders heretofore issued should be vacated or else the said orders shall be in full force and effect.
At the regular July Term, 1941, of Washington County, upon the last order of Judge Harris, the cause came on for hearing before Judge Stevens, who held that since one Superior Court Judge has no authority to overrule another Superior Court Judge, he was without jurisdiction or authority to pass upon the question involved, since it was already adjudicated by the former orders of Judge Harris.
To this holding and judgment of Judge Stevens the intervening petitioner, the University of North Carolina, and the Receiver, the Branch Banking & Trust Company, excepted and appealed, assigning errors.
W. M. Darden, of Plymouth, for appellant University of North Carolina.
Norman & Rodman, of Plymouth, for appellant Branch Banking & Trust Co.
W. L. Whitley, of Plymouth, for J. K. Reid, Sheriff.
The sole question involved on...
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