Ash v. Livingston State Bank & Trust Co.

129 So. 2d 863, 1961 La. App. LEXIS 1893
CourtLouisiana Court of Appeal
DecidedApril 10, 1961
DocketNo. 5324
StatusPublished
Cited by6 cases

This text of 129 So. 2d 863 (Ash v. Livingston State Bank & Trust Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ash v. Livingston State Bank & Trust Co., 129 So. 2d 863, 1961 La. App. LEXIS 1893 (La. Ct. App. 1961).

Opinion

LANDRY, Judge.

Plaintiff Francis N. Ash initiated this litigation to recover from defendant Livingston State Bank & Trust Co. and its insurer, United States Fidelity and Guarantee Company, an alleged cash deposit of $4,500 and damages in the sum of $7,500 for humiliation and embarrassment resulting from the reputed public slander and defamation of plaintiff by employees of defendant bank. From an adverse judgment rejecting his demands in toto, plaintiff has taken this appeal.

The petition filed herein sets forth that on November 4, 1957, plaintiff deposited in defendant bank the sum of $10,670 cash in return for which he was issued properly initialled deposit slip and passbook acknowledging receipt thereof by defendant’s Teller, Lancy Edward Hill, Jr. He further asserts that following the deposit he received a letter from defendant bank advising him that he had deposited only $6,170 rather than $10,670, therefore, his account had been erroneously credited an excess of $4,500. Upon reporting to the bank in response to the letter received, he alleges that certain officers of said institution not only declined to recognize his deposit as being in the sum of $10,670 but also subjected him to public ridicule, humiliation, embarrassment and threats of prosecution.

Defendant insurer excepted to plaintiff’s petition as stating no right and no cause of action. By agreement of counsel the exceptions were referred to the merits but were never ruled upon by the trial court. Said defendant having neither appealed nor answered the appeal by plaintiff herein is presumed to have abandoned its exceptions.

Plaintiff’s entire case is predicated on the premise the law of this state is to the effect that a deposit slip and passbook issued by a depository bank in exchange for a cash [865]*865deposit which has been counted by the bank’s employee is conclusive and binding upon the institution receiving the deposit and the correctness thereof may not subsequently be disputed or refuted. On this ground, in the trial below, plaintiff objected to all evidence offered by defendant in support of the express allegation plaintiff’s account was erroneously credited with an excess of $4,500. The trial court overruled plaintiff’s said objection of which ruling plaintiff complains on this appeal.

Defendant, however, contends the rule which obtains in this state is that deposit slips and passbooks are but prima facie proof of the deposits indicated or entered thereon, the presumption of receipt thereof being rebuttable upon proof of mistake, fraud or error.

An excellent summary of the law governing the legal inference to be drawn from bank passbooks and deposit slips is contained in Volume 7, Am.Jur. pages 329 and 330, Sections 460 and 461, respectively, the pertinent portions of which read as follows :

“§ 461. Effect of Deposit Slip upon Deposit Account — A deposit slip, whether made out by a customer or executed by a bank arid delivered to a depositor, is not a written contract in which all oral negotiations and stipulations are merged, but is merely a receipt constituting prima facie evidence that the bank received the sum stated at that time; it may be explained or contradicted by parol evidence on behalf of the depositor or of the bank.” 7 Am.Jur. 330, Sec. 461.
“§ 460. The Passbook Generally— Ordinarily, whenever a deposit is made, the amount and date thereof are entered by the cashier or teller in the bankbook or passbook of the depositor; and such entries, when made by the proper officer, bind the bank as admissions. An entry in the passbook, however, is not a written contract within the rule that parol evidence is inadmissible to vary a written contract; rather, such an entry is in the nature of a receipt and is prima facie evidence that the amount credited was received by the bank and the entries may be explained or contradicted on behalf of the depositor or of the bank. However, in some cases a much stronger effect has been given to an entry in the depositor’s passbook; and when it is made at the time of the deposit, as contradistinguished from a subsequent entry from the books of account of the bank, it has been held conclusive on the bank as an original entry.” 7 Am.Jur. 329, Sec. 460.

As a general rule deposit slips and passbooks are ordinarily accorded similar treatment and interpretation as indicated by the following appearing in 42 A.L.R.2d page 602, §2:

“§ 2. Summary. Since deposit slips and the entries in a passbook are both generally considered to be in the nature of receipts, the admissibility of extrinsic evidence to explain or contradict them is governed, in general, by the rules in that regard with reference to receipts generally.” 42 A.L.R.2d page 602, § 2.

Similar statements of the law are contained in Volume 9 C.J.S. Banks and Banking §§ 270 and 271a, pages 552, 553, in which we note:

“§ 270. Deposit Slips. A deposit slip is a mere acknowledgment by the bank that the amount named has been received, and an indication of the customer’s purpose to make a deposit. While such slip constitutes an admission by the bank that the relation of debtor and creditor has been created, and furnishes evidence of the date and amount of deposit, it is not conclusive, and the true state of the accounts and not the deposit slip or bank entry determines the rights of the parties.” 9 C.J.S. § 270, p. 552.
[866]*866“§ 271 * * * A pass book is prima facie evidence of the matters therein, and while in law it is nothing more than evidence of a debt owing by the bank to the depositor, and not conclusive in the first instance, it may become conclusive if unexplained or not objected to. * * * ” 9 C.J.S. § 271a, p. 553.

The early jurisprudence of this state was indeed to the effect that entries on deposit slips and passbooks issued by banks were conclusive and binding upon the bank receiving the deposit. In Mechanics’ & Traders’ Bank v. Banks, 1837, 11 La. 260, it was held that entries in a bankbook by a clerk authorized to make them are, in the absence of fraud or collusion, conclusive upon the bank. The rule enunciated in the cited authority was subsequently modified in Hepburn v. Citizens Bank of La., 1847, 2 La.Ann. 1007, wherein it was held the conclusive presumption applied only in those cases wherein the entry was made at the time of the deposit and did not obtain with respect to subsequent entries from the bank’s books entries of the latter character being open to explanation and contradictions upon proper showing.

However, in the comparatively recent case of Smith v. Richland State Bank, 1942, 9 So.2d 327, 331, the Court of Appeal, Second Circuit, clearly and expressly stated the rule to be that deposit slips and passbooks are but prima facie evidence of deposits and may be explained or contradicted in the event of error, the burden of proof with respect thereto resting upon the depository institution. We observe in the Richland case, supra, the following pertinent language:

“Plaintiff’s counsel objected to introduction of testimonial proof to contradict the verity of the deposit of $1,-400. The objection was overruled and properly so. Early jurisprudence of the state supports plaintiff’s position. It was held in these cases that unless there was evidence of fraud or collusion between the receiving officer and the depositor, the bank was estopped to traverse the correctness of a credit entry in the depositor’s passbook, or checking account.

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