Wasson v. Hirning

• Decision Date: 20 November 1926
• Docket Number: 5522
• Citation: 210 N.W. 725,50 S.D. 482
• Parties: LOUISE J. WASSON, Plaintiff and respondent, v. JOHN HIRNING, Superintendent of Banks of the State of South Dakota, Defendant and appellant.
• Court: South Dakota Supreme Court

50 S.D. 482

210 N.W. 725

LOUISE J. WASSON, Plaintiff and respondent,

v.

JOHN HIRNING, Superintendent of Banks of the State of South Dakota, Defendant and appellant. South Dakota Supreme Court Appeal from Circuit Court, Hughes County, SD Hon. John F. Hughes, Judge #5522--Reversed Null & Royhl, Huron, SD Attorneys for Appellant. McNamee, O'Keefe & Stephens, Pierre, SD Attorneys for Respondent. Opinion filed Nov. 20, 1926

MORIARTY, C.

The respondent applied to the circuit court of Hughes county for a writ of mandamus requiring the superintendent of banks to certify to the guaranty fund commission the name of respondent as an unsecured depositor of the State Bank of Winfred. Prior to the application for the writ the superintendent of banks had taken charge of the State Bank of Winfred as insolvent and was proceeding with the liquidation of its assets. The trial court made findings and conclusions favorable to respondent and entered judgment granting the peremptory writ.

From this judgment and an order denying a new trial this appeal is taken.

Appellant's brief contains several assignments of error, but, in view of the laws of this state as construed by recent decisions of this court, only one of these assignments requires consideration here.

The record shows that by specification of error No. VII the appellant presented to the trial court the following contention:

"The circuit court of Hughes county, S. D., is without jurisdiction to direct the control or distribution of the guaranty fund or of the funds of the State Bank of Winfred, said bank being located in Lake county, S. D., and said Lake county being no part or portion of the circuit in which is contained Hughes county, S. D., Hughes county being located in the Sixth judicial circuit and Lake county being included in and a part of the Second judicial circuit of the state of South Dakota; it being the contention of the department that the affairs of an insolvent bank in the hands of the public examiner for liquidation, must be directed and controlled exclusively by the circuit court and circuit judge of the circuit of the state of South Dakota within which such insolvent bank is located."

The facts are as stated in this specification, and the learned trial court should have sustained the appellant's contention.

"The whole theory of the laws relating to the department of banking is that the exclusive possession and control of the property of an insolvent bank are...