Williams v. Central Hanover Bank & Trust Co.

• Court: Alabama Supreme Court
• Writing for the Court: THOMAS, Justice.
• Citation: Williams v. Central Hanover Bank & Trust Co., 159 So. 92, 229 Ala. 646 (Ala. 1935)
• Decision Date: 31 January 1935
• Docket Number: 7 Div. 301.
• Parties: WILLIAMS, Supt. of Banks, v. CENTRAL HANOVER BANK & TRUST CO.

159 So. 92

229 Ala. 646

WILLIAMS, Supt. of Banks, v. CENTRAL HANOVER BANK & TRUST CO.

7 Div. 301.

Supreme Court of Alabama

January 31, 1935

Appeal from Circuit Court, De Kalb County; A. E. Hawkins, Judge.

Petition in equity by the Central Hanover Bank & Trust Company to review an order of J. H. Williams, as Superintendent of Banks, liquidating the Bank of Valley Head, limiting the right of petitioner to participate in dividends. From a decree for petitioner, respondent appeals.

Reversed and rendered.

C. A Wolfes, of Fort Payne, for appellant.

Haralson & Son, of Fort Payne, for appellee.

THOMAS Justice.

The appeal is by the superintendent of banks to review the action of the lower court as to the allowance of a claim and participation in dividends to be declared from the proceeds of the bank being liquidated under the statute by such official.

The concrete question for decision is presented by assignment of error 4, which reads as follows: "The court erred in decreeing as follows in its decree of December 20, 1934 'that the said petitioner is entitled to the relief prayed for and that the order of the Superintendent of Banks limiting the right of the petitioner heretofore made, to participate only in future dividends is hereby reviewed and amended so as to allow the petitioner to be paid twenty per cent of the amount of its claim so as to equalize it with other creditors who have filed and proven their claims, and that it be allowed to participate equally with other creditors in future dividends; it is further ordered that the costs incurred on the hearing of this petition be, and the same are hereby taxed to the assets of the Bank of Valley Head to be paid by the Liquidating Agent thereof out of the funds of said bank."'

Appellee Central Hanover Bank & Trust Company, held a note on the Bank of Valley Head at the time of the bank's liquidation, and on June 26, 1929, notice to file its claim was given by the then liquidating agent to appellee by due posting and by due publication, as required by statute, calling upon creditors of the bank to file their claims before October 1, 1929, which was not less than ninety days from date of the first publication, which was on June 28, 1929.

The collateral notes held by appellee were sold on November 20, 1929, and thereafter, on or about April 5, 1930, appellee filed its claim with the liquidating agent for an unsecured balance of $2,714.82.

The receipt of the notice by a due mailing was denied by the appellee. It is further averred and shown that there were negotiations between the superintendent of banks...