Beacon Manufacturing Co. v. Hood

168 S.E. 523, 204 N.C. 349, 1933 N.C. LEXIS 400

• Court: Supreme Court of North Carolina
• Decided: March 15, 1933
• Status: Published

Opinion

Connor, J.

The plaintiff contends that on the facts alleged in the complaint and admitted by the demurrer, its title to the proceeds of the cheek which it deposited in the Central Bank and Trust Company on 7 November, 1930, did not pass to or vest in said Central Bank and Trust Company. This contention is founded upon the allegation in the complaint that plaintiff was induced to deposit said check by false and fraudulent representations made to it and the public by the Central Bank and Trust Company, through its officers and directors, by means of statements as to its financial condition published by said Bank and Trust Company prior to 7 November, 1930. It is not alleged in the complaint, however, that at or before the date of said deposit, any representation as to its financial condition was made to the plaintiff by the Central Bank and Trust Company or by any of its officers or directors in its behalf, other than statements published by the said Central Bank and Trust Company as inducements to the plaintiff and the public to make deposits in said Bank and Trust Company. In the absence of a false and fraudulent representation made specifically to the plaintiff, with respect to the financial condition of the Central Bank and Trust Company, the plaintiff has no equity superior to the rights of other depositors or creditors of the Central Bank and Trust Company, who made deposits in said company in reliance upon the statements published by said company, and there was no error in the judgment dismissing the action. Steele v. Allen (Mass.), 134 N. E., 401, 20 A. L. R., 1203. The judgment is

Affirmed.