Oswego Milling Co. v. Skillern
| Decision Date | 17 December 1904 |
| Parties | OSWEGO MILLING CO. v. SKILLERN. |
| Court | Arkansas Supreme Court |
Action by the Oswego Milling Company against J. H. Skillern as receiver of the Howard County Bank. From a judgment sustaining a demurrer to the bill, plaintiff appeals. Affirmed.
On the 4th day of February, 1903, one Joe Winter, of Nashville, Ark., was indebted to the Oswego Milling Company, of Oswego, Kan., in the sum of $516.13, and on that day Winter remitted the amount of his debt to the milling company by a check on the Planters' Bank of Nashville, Ark. When the check was received the milling company deposited it for collection in the National Bank of Commerce of Kansas City, Mo., which bank in due course of business forwarded it for collection to the Howard County Bank of Nashville, Ark. The last-named bank presented it to the Planters' Bank, on which it was drawn, for payment, and received payment therefor in full. Afterwards the Howard County Bank forwarded the amount collected to the National Bank of Commerce of Kansas City by a draft drawn by itself on the State National Bank of St. Louis. But the State National Bank of St. Louis refused payment for the reason that the Howard County Bank had no funds there to its credit with which to pay the draft. Shortly afterwards the Howard County Bank failed and never paid the sum collected by it on the Winter check. Afterwards one J. H. Skillern was duly appointed receiver of the assets of the insolvent Howard County Bank, and the Oswego Milling Company thereupon brought an action in equity to compel the receiver to refund the amount thus collected. It alleged that it was never a creditor of the Howard County Bank, and that the said bank received the Winter check, which belonged to plaintiff, through the other banks named, for collection only, and that it had no right to mingle said funds with its other assets, and prayed that the court make an order directing that the receiver pay the amount due plaintiff out of any funds in his hands as receiver, and for other relief. The receiver, by his attorney, filed a demurrer to the complaint, which the chancellor sustained, and dismissed the bill for want of equity. The plaintiff appealed.
W. C. Rodgers, for appellant. D. B. Sain, for appellee.
RIDDICK, J. (after stating the facts).
This is an action to establish an equitable lien on the assets of a bank in the hands of a receiver for the purpose of securing to plaintiff a preference in the payment of his claim over the other creditors of the bank. But...
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