Railway Express Agency v. Bethea

• Decision Date: 28 March 1932
• Docket Number: 13373.
• Citation: 163 S.E. 637,165 S.C. 230
• Parties: RAILWAY EXPRESS AGENCY et al. v. BETHEA.
• Court: South Carolina Supreme Court

163 S.E. 637

165 S.C. 230

RAILWAY EXPRESS AGENCY et al. v. BETHEA.

No. 13373.

Supreme Court of South Carolina

March 28, 1932

Appeal from Common Pleas Circuit Court of Dillon County; E. C Dennis, Judge.

Action by the Railway Express Agency, a corporation, and another against John C. Bethea, liquidating agent of the Bank of Dillon. Judgment for plaintiffs, and defendant appeals.

Affirmed.

Gibson & Muller, of Dillon, for appellant.

Joe P Lane, of Dillon, for respondents.

STABLER J.

This action was brought by J. L. Bridges and Railway Express Agency against John C. Bethea, receiver or liquidating agent of the defunct Bank of Dillon, for the purpose of having certain drafts issued by the bank declared entitled to preferential payment.

On November 5, 1928, Bridges, an agent for the Express Agency purchased from the bank, with cash and checks he had collected as such agent, exchange drawn on the American Trust Company of Charlotte, N. C., in the sum of $220, payable to the Express Agency, for the transmission to it of its money. The draft was promptly presented to the trust company, but payment was refused because of the insolvency of the Dillon bank. In like manner, Bridges, on November 6, 1928, purchased from the Dillon bank exchange drawn on the National Loan & Exchange Bank of Columbia, S. C., in the sum of $272, and on November 7, 1928, purchased exchange on the American Trust Company in the sum of $500. These drafts also were promptly presented, and payment was likewise refused.

On November 7, 1928, the Dillon bank closed its doors, and subsequently Bethea was appointed its receiver or liquidating agent. He received in actual cash from that bank more than $13,000; and there was returned to him by the Charlotte bank approximately $4,700, and by the Columbia bank approximately $3,600, of the Dillon bank deposits. No question is made that each of the two correspondent banks had on hand sufficient funds of the Dillon bank to pay the drafts drawn on it, or that the Dillon bank had on hand sufficient cash to pay the checks presented by Bridges; the correspondent banks also held securities of the Dillon bank.

The case was heard by Judge E. C. Dennis, who ordered that the plaintiffs have judgment against the defendant for $992, the aggregate amount of the three drafts in question, and "that such claim be a preferred claim and entitled to payment in full." From this order defendant appeals.

The holding in the court below was based upon Hampton Loan & Exchange Bank v. W. F. Lightsey, Receiver of the Bank of Hampton, 155 S.C. 222, 152 S.E. 425, 427. Appellant contends that the decision in that case is not applicable to the facts in the case at bar, for the reason that the holding there was based, in part, upon a finding of fact that, at the time of the issuance of the check on the Bank of Savannah by the (afterwards closed) Hampton bank to the Loan & Exchange Bank, the Hampton Bank was not...