Richland Cnty. Bank v. Joint Sch. Dist. No. 2 of Boaz

• Decision Date: 10 October 1933
• Citation: 250 N.W. 407,213 Wis. 178
• Parties: RICHLAND COUNTY BANK v. JOINT SCHOOL DIST. NO. 2 OF BOAZ ET AL.
• Court: Wisconsin Supreme Court

213 Wis. 178

250 N.W. 407

RICHLAND COUNTY BANK

v.JOINT SCHOOL DIST. NO. 2 OF BOAZ ET AL.^a1

Supreme Court of Wisconsin.

Oct. 10, 1933.

Appeal from a judgment of the County Court of Richland County; P. L. Lincoln, County Judge.

Action by the Richland County Bank against Joint School District No. 2 of Boaz and the towns of Akan and Dayton, Richland county. From a judgment in favor of plaintiff, defendant school district appeals.--[By Editorial Staff.]

Reversed, with directions.

In this action, commenced June 15, 1932, the plaintiff, hereinafter called the bank, seeks to recover on three promissory notes made, executed, and delivered by one Ed. Jacobson who was, at the time, the duly elected, acting, but not qualified treasurer of the defendant, hereinafter called the district, or in the alternative, for money had and received. The complaint contains six causes of action: First, a cause of action based on a note for $500, dated September 2, 1931, signed “Boaz Graded Schools Ed. Jacobson Treas.”; second, a cause of action for money had and received in which it is alleged that of the sum of $500 which the bank loaned on the note dated September 2, 1931, mentioned in the first cause of action, the sum of $376.30 was actually withdrawn from the bank and used by the district for its benefit; third, a cause of action based on a note for $1,000, dated September 28, 1931, signed “Ed Jacobson Treas. Boaz Graded Schools”; fourth, a cause of action for money had and received in which it is alleged that of the sum of $1,000 which was loaned by the bank on the note dated September 28, 1931, mentioned in the third cause of action, the sum of $656.68 was withdrawn from the bank and used by the district for its benefit; fifth, a cause of action based on a note for $1,000, dated November 20, 1931, signed by “Ed Jacobson Treas. B. G. School”; and sixth, a cause of action for money had and received in which it is alleged that of the sum of $1,000 which the bank loaned on the note dated November 20, 1931, the sum of $991.99 was withdrawn and used by the district for its benefit.

The defendant separately demurred to the first, third, and fifth causes of action, and answered the second, fourth, and sixth.

After trial had, the court sustained the demurrers, but found for the plaintiff on the second, fourth, and sixth causes of action.

From a judgment in favor of the bank entered on February 4, 1933, for $2,024.97, being the amount of the checks issued by Jacobson in payment of legitimate school orders, together with interest and costs, the district appealed.Brindley & Brewer, of Richland Center (Harold M. Wilkie and Richmond, Jackman, Wilkie & Toebaas, all of Madison, of counsel), for appellant.

O. D. Black, of Richland Center, for respondent.

NELSON, Justice.

There is no substantial dispute in the facts. Ed Jacobson was appointed treasurer of the district in 1926. He was elected in 1927 to succeed himself, and re-elected each year thereafter up to and including 1931. From 1926 until December, 1931, when he resigned, he continued as such officer. Evidently through inadvertence he was never required to give a bond. During the times mentioned he carried his checking account at the bank which was variously listed on the books of the bank as follows: “Ed Jacobson Treas Boaz Graded Schools,” “Ed Jacobson Treas,” and “Boaz Graded School Jt. School Dist. #2 Boaz Dayton & Akan Ed Jacobson Treas.” In August, 1927, the school board authorized a loan of $400. It was obtained from the bank and evidenced by a demand note executed on behalf of the district by Ed Jacobson, as treasurer, and Carl J. Koch, as clerk. In December, 1929, another loan for $450 was duly authorized. This loan was also obtained from the bank and was evidenced by a note also signed by Jacobson, as treasurer, and Koch, as clerk. The two loans mentioned are the only ones which the school board ever authorized during the time that Jacobson served as treasurer. Commencing in March, 1928, Jacobson began to borrow money from the bank without the authority or knowledge of the electors of the district or the school board. The evidence reveals that twelve unauthorized notes, totaling the sum of $8,550, were given to the bank by Jacobson. Although the officers of the bank knew that it was necessary for the school board to pass a resolution in case it desired to borrow money, no certified copy of a resolution was apparently requested or demanded by the bank. Jacobson usually orally represented that such loans were authorized; on two occasions he mailed notes to the bank and stated in the accompanying letters that the school board had authorized the loans. When the loans were consummated the bank credited Jacobson's account with the amounts of the notes. The amounts so credited were from time to time thereafter paid out on checks having printed thereon in the left-hand corner, “Boaz Graded Schools Boaz Wisconsin,” and signed “Ed Jacobson.” As taxes, state aid, tuition, and other moneys came into Jacobson's hands, he paid the notes to the bank. At the annual school...