S. E. Hall, Inc. v. Farmers' Trust & Savings Bank of Lockport

• Decision Date: 29 May 1933
• Docket Number: 31747
• Citation: 148 So. 909,177 La. 659
• Parties: S. E. HALL, Inc., v. FARMERS' TRUST & SAVINGS BANK OF LOCKPORT et al
• Court: Louisiana Supreme Court

148 So. 909

177 La. 659

S. E. HALL, Inc., v. FARMERS' TRUST & SAVINGS BANK OF LOCKPORT et al

No. 31747

Supreme Court of Louisiana

May 29, 1933

Appeal from Seventeenth Judicial District Court, Parish of Lafourche; Robert B. Butler, Judge.

Action by S. E. Hall, Incorporated, against Farmers' Trust &amp Savings Bank of Lockport, in liquidation, and others. Judgment for plaintiff, and defendants appeal.

Affirmed.

Harvey Peltier and Hubert A. Lafargue, both of Thibodaux, for appellants.

Francis L. Knobloch, of Thibodaux, for appellee.

OVERTON Justice. ST. PAUL, J., concurs in the decree.

OPINION

OVERTON, Justice.

This is a suit to have it decreed that the proceeds of four drafts amounting to $ 2,508.93, which may be referred to as the Sherman, Sanders, McCleish, and Bailey drafts, drawn by plaintiff to the order of the Farmers' Trust & Savings Bank of Lockport, La., the first for $ 652.06, the second for $ 681.46, the third for $ 497.36, and the fourth for $ 678.05, are the property of plaintiff; that the proceeds be ordered paid forthwith to plaintiff; and that its lien and privilege on the assets of the bank as well as upon the proceeds of the drafts, as provided by Act No. 63 of 1926, be recognized and enforced.

The four drafts represent the purchase price of corn sold to the several drawees named. Each was deposited in the Farmers' Trust & Savings Bank of Lockport, with bill of lading attached, January 10, 1931, except one of them, which was deposited on January 16, 1931. The deposits were made on three slips, two on the first slip and one on each of the remaining slips. They were deposited as checks, that being the closest description, printed on the slips. On each deposit slip, at the bottom thereof, there appears the following in printed form, to wit: "All checks & drafts, except on us, credited subject to final payment."

The bank was closed on January 20, 1931, by the state bank examiner, as insolvent. Possession of its assets was taken by him, and liquidators were appointed, who are parties to this suit. The proceeds of not one of the drafts reached the bank until after it was closed. The Sherman and Sanders drafts were paid at Haynesville, La., on January 20, 1931, the day the bank was closed, and the proceeds were not received by the Farmers' Trust & Savings Bank of Lockport until the next day. The McCleish draft was paid on January 16, 1931, but the proceeds thereof were not received by the defendant bank until January 21, 1931, the day after the closing of the bank, and the Bailey draft was not paid until January 21, 1931, following the declared insolvency of the bank, and the proceeds were not received by the bank at Lockport until nine days later.

As to whether the drafts were sold to the Farmers' Trust & Savings Bank, or were placed there for collection, the proceeds to be deposited to plaintiff's account when collected, or were deposited for collection and remittance, depends wholly upon the intention of the Parties, to be determined from the facts surrounding the transactions. Hudson v. State of Delaware (Del. Sup.) 35 Del. 23, 156 A. 881, 80 A. L. R. 219.

Here the deposit slips, which were accepted by the bank, state that all checks and drafts, except those drawn on the bank, will be credited, subject tofinal payment. This statement indicates that it was not the...