Titlow v. Sundquist

• Decision Date: 07 August 1916
• Docket Number: 2652.
• Parties: TITLOW v. SUNDQUIST. [1]
• Court: U.S. Court of Appeals — Ninth Circuit

234 F. 613

TITLOW v. SUNDQUIST. ^[1]

No. 2652.

United States Court of Appeals, Ninth Circuit.

August 7, 1916

Frederick Bausman, R. P. Oldham, and R. C. Goodale, all of Seattle Wash., for appellant.

B. A Crowl, of Tacoma, Wash., for appellee.

Before GILBERT, ROSS, and HUNT, Circuit Judges.

ROSS Circuit Judge.

The appellee Sundquist brought this suit in the court below against the receiver of the United States National Bank of Centralia, state of Washington, to recover $1,296 alleged to have been deposited by the plaintiff in the action with the defendant bank under an express agreement between the parties that the bank would pay it to one Izella J. Smith in satisfaction of a note executed to her by one Gustafson for $1,200, upon which there was also then due $96 in interest secured by a mortgage upon certain lands, and under which agreement the said money was not to be used by the bank for any other purpose. Gustafson and Miss Smith were also made parties defendant to the action, both of whom, however, at the trial disclaimed any interest in the fund in question.

The evidence in the case is very brief, and there is no substantial conflict in it. It shows that on August 31, 1914 the appellee Sundquist had on deposit in the bank $3,000, for which he held three certificates of deposit in equal amounts. Gustafson, the maker of the note and mortgage to Miss Smith, was his son-in-law, and he wished to pay off that indebtedness. On the day mentioned he went to the bank, taking with him two of the certificates of deposit, aggregating $2,000, had them canceled, received from the bank $604 in cash, a new certificate of deposit for $100, and directed the bank to pay to Miss Smith the remaining $1,296 upon the cancellation of the note and mortgage, which the bank agreed to do, its vice president, Gilchrist, executing to Sundquist this receipt:

'Centralia, Wash., 190-- .

'Received from John E. Sundquist twelve hundred ninety-six dollars, a/c mortgage, Walter Gustafson to Izella J. Smith, $1,200.00 & int. $96.00.

'C. S. Gilchrist, V.P.

'$1,296.00.'

On the same day the bank prepared this certificate of deposit, which, however, was not delivered but was retained by it:

'The United States National Bank.

'Centralia, Wash., Aug. 31, 1914.

'No. 12215.

'Izella J. Smith has deposited in this bank twelve hundred ninety-six dollars, $1,296.00, payable to the order of herself-- on return of this certificate properly indorsed.

'U.S. National Bank, J. W. Daubney, Cashier.

'Not subject to check.

'(In pencil) From Walter Gustafson.'

A few days later the bank wrote to Miss Smith this letter (omitting caption):

'Centralia, Wash. September Fourth, Nineteen Fourteen.

'Izella J. Smith, Olympia, Wash.-- Dear Madam: Mr. Walter Gustafson of Rochester has deposited $1,296.00 with us to pay a certain note and mortgage held by you. We would ask that you forward the same direct to us with a proper release and we will be pleased to be of service in effecting settlement.

'Very truly yours,

C. S. Gilchrist, Vice President.'

Before the matter was consummated the bank...