Second Nat. Bank of Winona v. Donald

• Decision Date: 10 February 1894
• Citation: 58 N.W. 269,56 Minn. 491
• Parties: SECOND NAT. BANK OF WINONA v. DONALD ET AL.
• Court: Minnesota Supreme Court

56 Minn. 491

58 N.W. 269

SECOND NAT. BANK OF WINONA

v.DONALD ET AL.

Supreme Court of Minnesota.

Feb. 10, 1894.

(Syllabus by the Court.)

Held, that the findings were not justified by the evidence.

Appeal from municipal court of St. Paul; H. W. Cory, Judge.

Action by the Second National Bank of Winona against Alexander Donald, defendant, C. G. Edwards, garnishee, and Charles E. Magraw, claimant. Judgment was ordered for plaintiff, and claimant appeals. Reversed.

Pinch & Whaley, for appellant.

Hawes & Foekler, for respondent.

MITCHELL, J.

The only question in this case is whether the evidence justified the finding that the money in the hands of the garnishee, Edwards, belonged to the defendant, Donald, and not to the claimant, Magraw. The case rested entirely on the testimony of the claimant and the defendant. They both testified to substantially the following state of facts: Defendant, Donald, and a number of others, had formed a voluntary association to search for and secure mineral properties which were supposed to exist in vast and valuable quantities in the vicinity of St. Paul; and for the purpose of defraying the expenses of these searches, and securing title to the mineral when discovered, it was agreed that each member of the association should pay into its treasurer, the garnishee, Edwards, the sum of $250. In pursuance of this arrangement, defendant gave to the treasurer his check for $250, but the check remained unpaid, for want of funds to meet it. At defendant's solicitation, the claimant, Magraw, agreed to invest $250 in the enterprise, the money to remain Magraw's, and to be invested for him, but in the name of the defendant, who was to manage and look after the investment, and to receive a “fair” or “reasonable” share of the profits, if any. In pursuance of this arrangement, Magraw gave the defendant, Donald, his check for $250, which Donald indorsed, and deposited to his own credit in the bank, upon which he himself had drawn the check for a like amount previously given to the treasurer, Edwards. Edwards then presented and received payment of defendant's check, and part of the proceeds is the money now garnished in Edwards' hands. The testimony of defendant and Magraw was corroborated by certain documentary evidence, viz. the articles of agreement between the members of the voluntary association, the check given by defendant to Edwards and that given by Magraw to defendant, showing the dates at which they had been...