People ex rel. Nelson v. State Bank of Warren
| Decision Date | 22 December 1933 |
| Docket Number | No. 22007.,22007. |
| Citation | 354 Ill. 509,188 N.E. 546 |
| Parties | PEOPLE ex rel. NELSON, Auditor of Public Accounts, v. STATE BANK OF WARREN. PILLMORE v. CITY OF ROCKFORD. |
| Court | Illinois Supreme Court |
OPINION TEXT STARTS HERE
Error to Appellate Court, Second District, on Appeal from Circuit Court, Jo Daviess County; Harry L. Heer, Judge.
Proceeding by the People, on the relation of Oscar Nelson, Auditor of Public Accounts, against the State Bank of Warren, Roy F. Pillmore, receiver, wherein the City of Rockford asserted a preferred claim. The decree of the circuit court allowing the claim as a common claim was reversed by the Appellate Court (270 Ill. App. 186), and the receiver brings error.
Judgment of Appellate Court reversed, and of circuit court affirmed.C. W. Middlekauff, of Freeport, for plaintiff in error.
Frank M. Ryan and Alf O. Ahlstrand, both of Rockford, for defendant in error.
Whether the Appellate Court for the Second district erred in declaring the claim of the city of Rockford, defendant in error, a preferred claim in the sum of $4,170 against the assets of the State Bank of Warren, Ill., is the ultimate issue in this case, which comes here upon leave granted by certiorari. In so deciding, the Appellate Court reversed the decree of the circuit court of Jo Daviess county, which had held the claim to be a common claim.
The undisputed facts as found by the Appellate Court are as follows: R. F. Johnson, city treasurer of the city of Rockford, on July 8, 1930, sent a letter to the village treasurer of Warren inclosing therein paving bonds in the amount of $3,800 and coupons in the amount of $370, totaling $4,170, in which letter the city treasurer of Rockford stated: ‘Will you kindly favor us with a remittance on these bonds direct to the undersigned-City treasurer of Rockford, Illinois.’ One Carson was at that time the treasurer of the village of Warren and was also president of the State Bank of Warren. The assistant cashier of the bank was Mabel Paul, and she at that time was also special collector for the village of Warren. As special collector she carried an account with the State Bank of Warren under the name, ‘Special paving fund.’ On July 12, 1930, as special collector, she drew a check against this account for $4,170, and as assistant cashier of the State Bank of Warren she upon receipt of this check drew a draft on the State Bank of Warren, payable to the Rockford National Bank and drawn on the Continental Illinois Bank & Trust Company of Chicago, for $1,170-the exact amount due for paving bonds and coupons. This draft was forwarded to the Rockford National Bank, together with the letter sent to the village treasurer of Warren by the city treasurer of Rockford hereinabove referred to. The draft was indorsed by the Rockford National Bank to the Continental Illinois Bank & Trust Company and was deposited for collection. The auditor of public accounts closed the State Bank of Warren on July 14, 1930, before the draft in question had been paid. The Continental Illinois Bank & Trust Company protested the draft and returned it to the Rockford National Bank, after which it was charged against the city of Rockford by the Rockford National Bank. It does not appear that the Rockford National Bank ever had any interest in this draft. The city of Rockford then filed its claim with the receiver of the State Bank of Warren for the amount of the draft, asking that it be allowed as a preferred claim, and also filed its intervening petition in the case of the People of the State of Illinois ex rel. Oscar Nelson against the State Bank of Warren, which was pending in the circuit court of Jo Daviess county. The State Bank of Warren, at the time it was closed, had sufficient cash in its vaults and on deposit with correspondent banks to pay the draft.
The decision here turns upon the question whether the relation of...
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