Townsend v. Williams

• Decision Date: 23 December 1895
• Citation: 23 S.E. 461,117 N.C. 330
• Court: North Carolina Supreme Court
• Parties: TOWNSEND v. WILLIAMS.

23 S.E. 461

117 N.C. 330

TOWNSEND

v.WILLIAMS.

Supreme Court of North Carolina.

Dec. 23, 1895.

Bank Officer—Liability for Deposits—Bill of Particulars—When Ordered.

1. A bank depositor, on rumors of its insolvency, went to withdraw his deposits, but was informed by the vice president and director that the bank was perfectly solvent, and that "we have got all the money you want. You need never have any fears of this bank as long as I am in it." Such depositor, relying on such representations, permitted his deposits to remain. The bank was in fact insolvent when the representations were made. Held, that such vice president and director was personally liable to such depositor for the money lost by the failure of the bank.

2. Though, under Code, § 259, providing that the court may in all cases order a bill of particulars, it is discretionary with the court whether it will order it, motions for such bill should be liberally allowed.

Appeal from superior court, Robeson county; Brown, Judge.

Action by C. B. Townsend against George W. Williams to recover money deposited by plaintiff in a bank of which defendant was vice president and director. Prom a judgment for plaintiff, defendant appeals. Affirmed.

The plaintiff, complaining of the defendant, alleges: "(1) That, at the times hereinafter named, the defendant was vice president and a director of the Bank of New Hanover, of Wilmington, N. C, as he is informed and believes, which said bank was a corporation, duly created by the laws of North Carolina. (2) That, at the times hereinafter mentioned, the plaintiff was clerk of the superior court of Robeson county, and, as such clerk, had on deposit various sums of money in said bank, which was then, and continued to be until the 19th day of June, 1893, a banking concern, and doing a general banking business in the city of Wilmington, N. C. (3) That on or about the —— day of February,

1892, plaintiff had to his credits on deposit in said Bank of New Hanover, of Wilmington, N. C, as clerk of superior court, a considerable amount of money; and, hearing rumors questioning the solvency and safety of said bank, he immediately went to Wilmington, for the purpose of seeing the defendant, and inquiring as to the truthfulness of said rumors, and, if said rumors were well founded, with the intention of withdrawing any deposits that he had in said bank; and at this time, in the city of Wilmington, plaintiff inquired of defendant into the condition and solvency of said bank, and was informed by him that said bank was perfectly solvent, and in no danger of failure or suspension, defendant saying to the plaintiff: 'We've got all the money you want. You need never have any fears of this bank as long as I am in it.' That, relying on these statements and representations of defendant, the plaintiff left said money on deposit in said bank, and, relying on said statements and representations, continued to make further deposits from time to time, until the failure of the bank herein mentioned. (4) That said bank was on the 19th day of June,

1893, placed in the hands of a receiver by order of the superior court of New Hanover county, and was at the time of the representations aforesaid, and is now, utterly Insolvent, as the plaintiff is informed and believes. (5) That, further complaining, the plaintiff avers that, at the time of said representations and statements by defendant, the said corporation was utterly insolvent, and that same was well known, or ought to have been known, to defendant; and that said representations so made by defendant, by which plaintiff was damaged and incurred the loss of said money, were false and fraudulent; and defendant, as plaintiff is informed and believes, well knew, or ought to have known, the same to be so at the time and before the representations and statements were made. (6) That the defendant was, on the

——day of——, 1892, and since that time,

up to the failure of said bank, a director and vice president thereof, and knew, or ought to have known, the condition of its affairs and assets, and omitted, negligently and carelessly failed and refused, to inform plain tiff thereof, well knowing at the time of the statements and representations aforesaid that the said bank was insolvent and unable to pay its debts, as plaintiff is informed and believes. (7) That at the time of the failure of said bank, on the 19th of June, 1893, the plaintiff had to his credit on deposit in said bank the sum of two thousand two hundred and sixty-three dollars and ninety-three cents; and, by his reliance on said representations and statements, plaintiff was damaged to the amount of two thousand two hundred and sixty-three dollars and ninetythree cents. Wherefore plaintiff demands judgment against the defendant (1) for the sum of two thousand two hundred and sixty-three dollars and ninety-three cents, with interest thereon from June 19, 1893, less 20 per cent, dividends paid by the receiver of said bank; (2) for costs, and such other and further relief as to the court may seem just and proper."

The defendant demurs to the complaint, upon the following grounds: "(1) That plaintiff has not set forth in his complaint any facts constituting a cause of action in his favor, as clerk of the superior court of Robeson county, against this defendant; and that, upon the facts...