Winkler v. The Citizens State Bank of Geuda Springs

• Decision Date: 12 April 1913
• Docket Number: 18,000
• Parties: W. H. WINKLER, Appellee, v. THE CITIZENS STATE BANK of Geuda Springs, Appellant
• Court: Kansas Supreme Court

131 P. 597

89 Kan. 279

W. H. WINKLER, Appellee, v. THE CITIZENS STATE BANK of Geuda Springs, Appellant

No. 18,000

Supreme Court of Kansas

April 12, 1913

Decided January, 1913.

Appeal from Cowley district court.

Judgment affirmed.

SYLLABUS

SYLLABUS BY THE COURT.

BANKING--Payment of Check Wrongfully Refused--Exemplary Damages. In an action by a depositor to recover money placed by him in a bank as a general deposit, the bank having wrongfully refused payment and having protested a check drawn by the depositor for the amount thereof, the bank is not liable for exemplary damages unless it was guilty of fraud, malice, gross negligence or oppression in so doing.

C. T Atkinson, of Arkansas City, for the appellant.

Paul R. Nagle, of St. John, for the appellee.

OPINION

SMITH, J.:

It appears by the evidence in this case, without substantial controversy, that the appellee had on general deposit in the appellant bank the sum of $ 2000 subject to the check of the appellee; that the appellee gave to another bank his check for the full amount of the deposit; that the check was forwarded to appellant and appellant refused payment thereof and caused the check to be protested and notice thereof to be given. This suit was brought to recover the money and for damages.

The reason given by appellant's cashier for the refusal of payment was that the sum of money was deposited in pursuance of an agreement between the appellee and a third party, but not to the credit of such third party, by the terms of which the cashier thought the transaction with such third party ought to be closed and the money paid to the third party. It is not pretended that the bank received the money or was to hold it as security for the third party, or that the appellant had any legal obligation in this matter to protect the third party.

At the close of the evidence the court gave the following instructions relative to the damages recoverable:

"If you should find for the plaintiff, in addition to the amount that you find he is entitled to recover because of the money deposited in the bank, you should find also the amount, if any, of the actual damages he has sustained, if any, by reason of the failure and refusal of the bank to pay over the money on said check. And in determining what his actual or general damages are you may take into consideration the evidence of what expenses he has been put to caused by said refusal, what damage, if any, it has been to his standing and credit as a business man,...