White v. Pioneer Bank & Trust Co., 5652

CourtUnited States State Supreme Court of Idaho
Writing for the CourtBUDGE, J.
Citation298 P. 933,50 Idaho 589
PartiesW. C. WHITE, in His Capacity as Assessor of Lemhi County, Idaho, Respondent, v. PIONEER BANK & TRUST COMPANY, a Corporation, E. W. PORTER, as Commissioner of Finance, and A. M. BOYLEN, as Liquidating Agent, Appellants
Docket Number5652
Decision Date25 April 1931

298 P. 933

50 Idaho 589

W. C. WHITE, in His Capacity as Assessor of Lemhi County, Idaho, Respondent,
v.

PIONEER BANK & TRUST COMPANY, a Corporation, E. W. PORTER, as Commissioner of Finance, and A. M. BOYLEN, as Liquidating Agent, Appellants

No. 5652

Supreme Court of Idaho

April 25, 1931


BANKS AND BANKING-DEPOSITS OF PUBLIC MONEY-CONSTITUTIONAL LAW.

1. As respects priority on bank's insolvency, moneys collected by county assessor for automobile licenses were "public moneys" while on deposit in bank, before turned over to county treasurer (C. S., sec. 8381; Laws 1925, chap. 43, sec. 2).

2. Bank held charged with knowledge of its officers and agents that deposits made by county assessor were public moneys (C. S., sec. 8381).

3. Public moneys deposited by county assessor in bank becoming insolvent held properly classifiable for payment as trust fund, though not specially deposited (Laws 1925, chap. 133, sec. 77, subds. 2, 3; Const., art. 8, sec. 4; art. 12, sec. 4).

4. Statute providing for classifying deposits of public funds not specially deposited as having same priority as debts due any other depositor held unconstitutional as applied to deposit of moneys collected by county assessor for automobile licenses (Laws 1925, chap. 133, sec. 77, subd. 3; Const., art. 8, secs. 2, 4; art. 12, sec. 4).

5. Constitution prohibiting loaning credit of state applied to deposit of state's share of motor vehicle license fees in banks (Const., art. 8, sec. 2; C. S., sec. 1582, as amended by Laws 1929, chap. 195, sec. 7).

6. Constitutional provisions against loaning credit of governmental agencies apply equally to voluntary and compulsory obligations (Const., art. 8, secs. 2, 4; art. 12, sec. 4).

7. County assessor held proper party plaintiff to regain control of public funds he deposited in bank which became insolvent, by having them declared trust funds. [50 Idaho 590]

APPEAL from the District Court of the Sixth Judicial District, for Lemhi County. Hon. Ralph W. Adair, Judge.

Action to have deposit in bank closed for insolvency declared trust fund. Judgment for plaintiff. Affirmed.

Judgment affirmed. Costs awarded to respondent.

E. W. Whitcomb, for Appellants.

The money deposits involved in this action were not "public moneys." (Sess. Laws 1925, chap. 45, sec. 2.)

At the time this law was enacted the office of tax collector and public administrator was held by the county treasurer and the legislature at that time never intended, even by implication, to include the county assessor. (State v. Malcom, 39 Idaho 185, 226 P. 1083; Coudert v. United States, 175 U.S. 178, 20 S.Ct. 556, 44 L.Ed. 122.)

"The words 'Public Money' used in . . . . the statute and the expression 'County Funds' employed in the bond, seem to us to be convertible terms. The funds of the county are the moneys and securities in the possession of the County Treasurer." (Myers v. Kiowa County, 60 Kan 189, 56 P. 11.)

No law should be held unconstitutional except it appear clearly so without question or doubt, and under the laws of this state, all "public moneys" are safeguarded except the holder thereof wrongfully converts the same, in which case, he should be personally holden together with his bondsmen for any loss following. (In re Gale, 14 Idaho 761, 95 P. 679; Doan v. Commissioners of Logan County, 3 Idaho 38, 26 P. 167; People v. George, 3 Idaho 72, 76, 26 P. 983.)

The loss of any moneys representing public funds because of the insolvency of the bank, became a liability for which plaintiff and his bondsmen became liable. (City of St. Anthony v. Mason, 49 Idaho 717, 291 P. 1067.)

L. E. Glennon, for Respondent.

The deposit of public funds in other than a designated and duly qualified public depository constitutes a special deposit, and makes the fund resulting from such deposit a trust fund, to which the bank never acquires any title. (C. S., sec. 8379; In re Bank of Nampa, 29 Idaho 166, 157 P. 1117; State v. Thum, 6 Idaho 323, 55 P. 858; Bellevue State Bank v. Coffin, 2 Idaho 210, 125 P. 816; First Nat. Bank v. C. Bunting & Co., 7 Idaho 29, 59 P. 929-1106; Independent School Dist. v. Porter, 39 Idaho 340, 228 P. 253; Fidelity State Bank v. North Fork Highway District, 35 Idaho 797, 31 A. L. R. 781, 209 P. 448.)

A forced donation of the county's funds by an act of the legislature is in violation of the constitutional inhibition and is just as invalid as if voluntarily assumed and made by the county officials. (Board of Lake County Commrs. v. Rollins, 130 U.S. 662, 9 S.Ct. 651, 32 L.Ed. 1060; Eaton v. Mimnaugh, 43 Ore. 465, 73 P. 754; Grand Island & N.W. R. Co. v. Baker, 6 Wyo. 369, 71 Am. St. 926, 45 P. 494, 34 L. R. A. 835; Conlin v. Board of Supervisors, 114 Cal. 404, 46 P. 279, 33 L. R. A. 752.)

BUDGE, J. Lee, C. J., and Givens, Varian and McNaughton, JJ., concur.

OPINION [298 P. 934]

[50 Idaho 591] BUDGE, J.

The Pioneer Bank & Trust Company of Salmon, Lemhi county, was closed for insolvency May 20, 1929, and its affairs and assets taken in charge by the state department of finance represented by a liquidating agent. At that time there was on deposit in said bank to the credit of an account designated as "Assessor of Lemhi County, by W. C. White," the sum of $ 2,814.48, which sum or an amount in excess thereof was represented by actual cash on hand and went into the hands of the commissioner of finance by virtue of his office and of his taking charge of the affairs and assets of the bank for the purpose of liquidation. This money was "public funds," representing automobile license fees collected by the assessor in his official capacity as assessor of Lemhi county and in the performance of his duty as agent of the department of law enforcement of the state of Idaho. It appears to have been the custom of the assessor to make deposits in the bank, under the account designated as above stated, of motor vehicle license fees collected by him, and on the 20th of each month to draw a check in favor of the county treasurer in remittance of the [50 Idaho 592] fees. Checks drawn by the assessor on this...

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11 practice notes
  • Oregon Short Line Railroad Company v. Berg, 5818
    • United States
    • United States State Supreme Court of Idaho
    • December 3, 1932
    ...is in violation of Const., art. 8, sec. 4, and art. 1, sec. 13, Federal Const., 14th Amendment. (White v. Pioneer Bank & Trust Co., 50 Idaho 589, 298 P. 933; Stanley v. City of Great Falls, 86 Mont. 114, 70 A. L. R. 166, 284 P. 134, 139; Citizens' Saving & Loan Assn. v. Topeka, 20 W......
  • Ada County v. Wright, 6705
    • United States
    • United States State Supreme Court of Idaho
    • June 30, 1939
    ...or corporation, is void. (Art. 8, sec. 2, Idaho Const.; State Water Conserv. Bd. v. Enking, supra; White v. Pioneer Bank & Trust Co., 50 Idaho 589, 298 P. 933.) AILSHIE, C. J. Budge, Givens and Holden, JJ., concur. Morgan, J., did not participate in the decision of this case. OPINION [9......
  • Independent School District No. 1 of Benewah County v. Diefendorf, 6321-6322
    • United States
    • United States State Supreme Court of Idaho
    • January 11, 1937
    ...city, town or district of this state prior to the twenty-eighth day of February, 1921." White v. Pioneer Bank & Trust Co., 50 Idaho 589, 298 P. 933, held subdivision 3 of section 25-915, I. C. A., supra, unconstitutional as applied to county funds illegally deposited because otherw......
  • State ex rel. Nielson v. Lindstrom, 7403
    • United States
    • United States State Supreme Court of Idaho
    • April 1, 1948
    ...Idaho 282, 108 P. 1046, 28 L.R.A.,N.S., 412; McDonald v. Doust, 11 Idaho 14, 81 P. 60, 69 L.R.A. 220; White v. Pioneer Bank & T. Co., 50 Idaho 589, 298 P. 933. The making of payments upon application for old age assistance under the statutes, coupled with the provisions for repayment an......
  • Request a trial to view additional results
11 cases
  • Oregon Short Line Railroad Company v. Berg, 5818
    • United States
    • United States State Supreme Court of Idaho
    • December 3, 1932
    ...is in violation of Const., art. 8, sec. 4, and art. 1, sec. 13, Federal Const., 14th Amendment. (White v. Pioneer Bank & Trust Co., 50 Idaho 589, 298 P. 933; Stanley v. City of Great Falls, 86 Mont. 114, 70 A. L. R. 166, 284 P. 134, 139; Citizens' Saving & Loan Assn. v. Topeka, 20 Wall. 655......
  • Ada County v. Wright, 6705
    • United States
    • United States State Supreme Court of Idaho
    • June 30, 1939
    ...or corporation, is void. (Art. 8, sec. 2, Idaho Const.; State Water Conserv. Bd. v. Enking, supra; White v. Pioneer Bank & Trust Co., 50 Idaho 589, 298 P. 933.) AILSHIE, C. J. Budge, Givens and Holden, JJ., concur. Morgan, J., did not participate in the decision of this case. OPINION [92 P.......
  • Independent School District No. 1 of Benewah County v. Diefendorf, 6321-6322
    • United States
    • United States State Supreme Court of Idaho
    • January 11, 1937
    ...county thereof, city, town or district of this state prior to the twenty-eighth day of February, 1921." White v. Pioneer Bank & Trust Co., 50 Idaho 589, 298 P. 933, held subdivision 3 of section 25-915, I. C. A., supra, unconstitutional as applied to county funds illegally deposited because......
  • State ex rel. Nielson v. Lindstrom, 7403
    • United States
    • United States State Supreme Court of Idaho
    • April 1, 1948
    ...18 Idaho 282, 108 P. 1046, 28 L.R.A.,N.S., 412; McDonald v. Doust, 11 Idaho 14, 81 P. 60, 69 L.R.A. 220; White v. Pioneer Bank & T. Co., 50 Idaho 589, 298 P. 933. The making of payments upon application for old age assistance under the statutes, coupled with the provisions for repayment and......
  • Request a trial to view additional results

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