Squire v. Nally, No. 25508.

CourtOhio Supreme Court
Writing for the CourtWILLIAMS
Citation200 N.E. 840,130 Ohio St. 582
Decision Date25 March 1936
Docket NumberNo. 25508.
PartiesSQUIRE, Superintendent of Banks, v. NALLY et al.

130 Ohio St. 582
200 N.E. 840

SQUIRE, Superintendent of Banks,
v.
NALLY et al.

No. 25508.

Supreme Court of Ohio.

March 25, 1936.


Error to Court of Appeals, Cuyahoga County.

Action by John A. Nally against one Squire, State Superintendent of Banks, and others. Judgment of the court of common pleas for plaintiff and others claiming an interest, and to review an adverse judgment of the Court of Appeals, defendants bring error on allowance of motion to certify.-[Editorial Statement.]

Judgment of the Court of Appeals reversed, and final judgment for defendants.

The original action was brought in the court of common pleas of Cuyahoga county by John A. Nally against the Superintendent of Banks of Ohio and others seeking to establish a preferred claim against certain money paid into the bank under an escrow agreement.

The material facts are undisputed.

On and prior to February 25, 1933, the Guardian Trust Company was open for business in the ordinary manner. On Monday, February 27, 1933, it opened under restrictions, not in excess of one per cent. to be paid to its creditors. This restriction remained in force until June 15, 1933, when the Superintendent of Banks of the State of Ohio took possession of the trust company for the purpose of liquidation. Neither the one per cent. nor the dividend declared in liquidation had been paid on the claim involved here.

On February 13, 1933, H. Malin and Rosa Kaiser executed and delivered to the trust company as escrow agreement by the terms of which it appears that it was agreed that H. Malin should sell certain real estate to Rosa Kaiser for $3,600, $200 of which was to be paid to H. Malin, and the balance of $3,400 to be deposited with the trust company.

The payment was made accordingly, and prior to February 23, 1933, Rosa Kaiser executed and delivered into the escrow division a withdrawal slip for $3,400 on her account at the Vcela Branch office of the Guardian Trust Company.

On February 25, 1933, this amount was charged against her account and a credit to that amount was thereupon placed in the banking department of the trust company in an account entitled ‘The Guardian Trust Company Escrow Account Vcela Office.’ The latter account is a noninterest bearing commercial account from which funds could be withdrawn only on the order of the trust company. Of this action taken by Rosa Kaiser, John Nally had no knowledge; nor did Rosa Kaiser and H. Malin have knowledge of the account last referred to.

On February 23, 1933, the deed to Rosa Kaiser was placed on record and delivered to her. On February 25, 1933, everything had been done to close the transaction except the disbursement of the fund received in escrow.

The Capital Endowment Company held title to the property and previously had entered into an agreement to sell it to H. Malin. Neither John A. Nally nor the Capital Endowment Company signed the escrow agreement, but on February 21, 1933, John A. Nally as attorney for the Capital Endowment Company delivered to the trust company a deed of the property to Rosa Kaiser, assignee, and a letter of instructions containing the following:

‘When you have procured to the order of Jno. A. Nally, Attorney for The Capital Endowment Company the sum of...

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2 practice notes
  • Squire v. Guardian Trust Co.
    • United States
    • Ohio Court of Appeals
    • January 20, 1947
    ...is a purely legal one and has nothing of the relation of trust in it.’ 5 Ohio Jur. p. 384; Squire, Supt. of Banks, v. Nally et al., 130 Ohio St. 582-585, 200 N.E. 840;Union Properties, Inc., v. Baldwin Bros. Co., 141 Ohio St. 303, 47 N.E.2d 983, 149 A.L.R. 725;Busher etc. v. Fulton, Supt. o......
  • Squire v. Guardian Trust Co.
    • United States
    • United States Court of Appeals (Ohio)
    • January 20, 1947
    ...is a purely legal one and has nothing of the relation of trust in it.' 5 Ohio Jur. p. 384; Squire, Supt. of Banks, v. Nally et al., 130 Ohio St. 582-585, 200 N.E. 840; Union Properties, Inc., v. Baldwin Bros. Co., 141 Ohio St. 303, 47 N.E.2d 983, 149 A.L.R. 725; Busher etc. v. Fulton, Supt.......
2 cases
  • Squire v. Guardian Trust Co.
    • United States
    • Ohio Court of Appeals
    • January 20, 1947
    ...is a purely legal one and has nothing of the relation of trust in it.’ 5 Ohio Jur. p. 384; Squire, Supt. of Banks, v. Nally et al., 130 Ohio St. 582-585, 200 N.E. 840;Union Properties, Inc., v. Baldwin Bros. Co., 141 Ohio St. 303, 47 N.E.2d 983, 149 A.L.R. 725;Busher etc. v. Fulton, Supt. o......
  • Squire v. Guardian Trust Co.
    • United States
    • United States Court of Appeals (Ohio)
    • January 20, 1947
    ...is a purely legal one and has nothing of the relation of trust in it.' 5 Ohio Jur. p. 384; Squire, Supt. of Banks, v. Nally et al., 130 Ohio St. 582-585, 200 N.E. 840; Union Properties, Inc., v. Baldwin Bros. Co., 141 Ohio St. 303, 47 N.E.2d 983, 149 A.L.R. 725; Busher etc. v. Fulton, Supt.......

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