Robertson v. Owensboro Savings Bank & Trust Co.'s Receiver

Decision Date17 October 1912
Citation150 Ky. 50,149 S.W. 1144
PartiesROBERTSON et al. v. OWENSBORO SAVINGS BANK & TRUST CO.'S RECEIVER.
CourtKentucky Court of Appeals

Appeal from Circuit Court, Daviess County.

Action by the Owensboro Savings Bank & Trust Company's Receiver against N.H. Robertson and others. Judgment for plaintiff and defendants appeal. Affirmed.

J. R Hays, of Owensboro, for appellants.

R. S Todd and R. A. Miller, both of Owensboro, for appellee.

CARROLL J.

In April, 1908, the Owensboro Savings Bank & Trust Company became insolvent, and was placed in the hands of a receiver. Among the assets of the bank that came into the possession of the receiver were two notes, one for $500 and the other for $1,000, executed to the bank by the appellants in 1907 and this action was instituted on these notes by the receiver. For defense the appellants set up that the notes sued on were renewals of two notes of like amounts executed by them to the bank in the early part of 1906 for 10 shares of stock in the bank. They further averred, in substance, that, when the notes were executed, the president of the bank falsely and fraudulently represented to them that the bank was in a flourishing condition, and that its stock of the par value of $100 was worth $150 per share; that the bank had a large surplus fund, and was in all respects a prosperous solvent institution; that they relied implicitly upon the truth of these representations, and induced thereby agreed to and did subscribe for ten shares of stock. They further averred that all of the statements made to them relative to the condition of the bank were false, and that the bank was at the time they subscribed for the stock insolvent and its stock practically worthless, but that they had no knowledge of the condition of the bank until after it went into the hands of a receiver. They further averred that no certificates of stock were ever delivered to them, and that their names did not appear as stockholders of the bank, nor did they ever participate in the election of directors or attend any meeting of stockholders. It is further shown by their answers, and amended answers, and counterclaim, that they requested permission in 1907 to examine the condition of the bank, but the officers refused to permit them to make any examination. It was also shown by their pleadings that they or the Electric Planing Mill Company, apparently acting for them, received three or four ...

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9 cases
  • Jones v. Peterson
    • United States
    • Missouri Supreme Court
    • May 17, 1934
    ... ... Loan & Investment Co ... v. Trust Co., 175 Mo.App. 606; Younger v ... Hodge, ... 622; Avery v. Central State ... Bank, 221 Mo. 71. The maxim operates so as to exclude ... Haiflin, 187 Ill.App. 514; ... Robertson v. Owensboro Sav. Bank, 150 Ky. 50, 149 ... ...
  • Jones v. Peterson
    • United States
    • Missouri Supreme Court
    • May 17, 1934
    ...v. Land Co., 144 Mo. App. 303; Hayes v. Sheffield Ice Co., 168 S.W. 306; Fitzkee v. Haiflin, 187 Ill. App. 514; Robertson v. Owensboro Sav. Bank, 150 Ky. 50, 149 S.W. 1144; Brady v. Elliott, 146 N.C. 587; Beeson v. Smith, 149 N.C. 142. (b) If a case of fraud be established a court of equity......
  • Dennis v. Thomson
    • United States
    • Kentucky Court of Appeals
    • October 27, 1931
    ... ... v. Citizens' Bank of ... Murray et al., 179 Ky. 54, 200 S.W. 41, ... 500, L.R.A. 1917C, 890; ... Reid v. Owensboro Savings Bank, 141 Ky. 444, 132 ... S.W. 1026; ... 695, 286 S.W. 984; Preston v. Jeffers, Receiver, ... 179 Ky. 384, 200 S.W. 654; Robertson v ... ...
  • Dennis v. Thomson
    • United States
    • United States State Supreme Court — District of Kentucky
    • October 27, 1931
    ... ... v. Citizens' Bank of Murray et al., 179 Ky. 54, 200 S.W. 41, 43; ... 500, L.R.A. 1917C, 890; Reid v. Owensboro Savings Bank, 141 Ky. 444, 132 S.W. 1026; ... 695, 286 S.W. 984; Preston v. Jeffers, Receiver, 179 Ky. 384, 200 S.W. 654; Robertson ... Page ... ...
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