Taylor v. Terzia
| Decision Date | 05 January 1931 |
| Docket Number | 30745 |
| Citation | 171 La. 1040,132 So. 781 |
| Court | Louisiana Supreme Court |
| Parties | TAYLOR, Bank Commissioner of Arkansas, v. TERZIA |
Rehearing Denied March 2, 1931
Appeal from Fourth Judicial District Court, Parish of Morehouse; J T. Shell, Judge.
Action by W. E. Taylor, Bank Commissioner of Arkansas, against F. A Terzia, Sr. Judgment for defendant, and plaintiff appeals.
Affirmed.
R. W. Wilson, of Pine Bluff, Ark., and Theus, Grisham, Davis & Leigh, of Monroe, for appellant.
Mahony, Yocum & Saye, of El Dorado, Ark., and Madison & Madison, of Monroe, for appellee.
Plaintiff is the bank commissioner of the state of Arkansas. As such commissioner, he brought this suit to recover $ 3,000 from the defendant, representing an assessment on a 100 per cent. liability of the amount of stock held by the defendant in the Citizens' Bank, an insolvent institution, of the city of Pine Bluff. Defendant, a resident of Morehouse parish, state of Louisiana, denied liability on several grounds, and, in addition, specially pleaded the prescriptions of one and three years. After the trial of the case, but before judgment, defendant also filed an exception of no right or cause of action. The court below overruled defendant's peremptory pleas and exception, but on the merits decided in defendant's favor, rejecting plaintiff's demand. Plaintiff appealed, and defendant formally renewed, in writing, his pleas of prescription and exception of no right or cause of action. Plaintiff objected to the filing of the pleas and exception and moved that they be stricken from the records.
Plaintiff alleged, as the basis of his demand, the insolvency of the Citizens' Bank of Pine Bluff, and that, as state bank commissioner, he took charge of the institution for the purpose of liquidation as provided by the laws of Arkansas; that, in order to pay the debts and liquidate the affairs of the bank, he levied an assessment on its stockholders, as he was legally empowered to do, on an amount equal to the par value of the shares held by them; that the assessment levied on defendant was for $ 3,000, representing the par value of the stock owned by him.
The court below rejected plaintiff's demand on the specific ground that under the laws of Arkansas, as proved in the record, no authority is conferred on the state bank commissioner to levy an arbitrary assessment, making full proof of the liability of a stockholder in an insolvent bank; that the stockholders of such an institution are individually responsible only equally and ratably, and not one for another, for all contracts, debts, and engagements of the bank to the amount of the par value of their stock, in addition to the amount invested in such stock; that no showing was made of the resources and liabilities of the Citizens' Bank, so as to fix the amount to be paid by each stock-holder thereof under the statute. We do not find any error in the court's ruling.
On the trial on the merits, plaintiff offered in evidence sections 670 and 702 of the Digest of the Statutes of Arkansas as compiled by Crawford & Moses, which were admitted by all parties as being the law of Arkansas in full force and effect.
Section 670 reads, in part, as follows, viz.:
"The Commissioner shall be charged with the execution of all laws passed by the State of Arkansas relating to the organization, inspection, supervision, control, liquidation and dissolution of banks, trust companies and savings banks and the banking business of the State, and such other duties as may be enjoined upon said department or Commissioner, and he shall also have the power to make such rules and regulations as may be necessary to carry out the purposes and intent of all such laws. * * *"
Section 702 reads, in full, as follows, viz.:
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...interpretation of the statute may be determined therefrom. We are not unmindful that the Louisiana Supreme Court in Taylor v. Terzia, 171 La. 1040, 132 So. 781, 783, 'Counsel for the plaintiff cite two decisions of the Supreme Court of Arkansas, which they contend support plaintiff's positi......
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