City State Bank in Wellington v. Wellington Independent School Dist.

173 S.W.2d 738, 1943 Tex. App. LEXIS 523
CourtCourt of Appeals of Texas
DecidedJune 28, 1943
DocketNo. 5565.
StatusPublished
Cited by21 cases

This text of 173 S.W.2d 738 (City State Bank in Wellington v. Wellington Independent School Dist.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City State Bank in Wellington v. Wellington Independent School Dist., 173 S.W.2d 738, 1943 Tex. App. LEXIS 523 (Tex. Ct. App. 1943).

Opinion

PITTS, Chief Justice.

This is a suit for debt brought by appellant, the City State Bank of Wellington, Texas, against the Wellington Independent School District, appellee, on checks issued by appellee for teachers’ salaries during the school year of 1941-42, which checks were paid by appellant, who claims appellee is liable to it for said checks in the total sum of $6,474.60.

Appellant alleged that it was the legal depository for the school funds belonging to appellee and attached a copy of its depository bond to its pleadings; that during the scholastic year of 1941-42 appellee issued checks against its state and county available fund to the teachers for their salaries in the total sum of $6,474.60 on the appellant as the legal depository of its funds; that said checks were endorsed by the payees and paid by appellant; that appellee did not have on deposit with appellant as depository any money for the payment of said checks and. has failed and refused to make such deposits or otherwise pay such checks; that the amount, in question, together with all other operation and maintenance expenses for said year was within the reasonable anticipated revenues for said scholastic year; that the amount claimed by appellant constituted a part of the maintenance and operation expenses; that said claim was an obligation against delinquent maintenance taxes due appellee and that the amount of delinquent maintenance taxes due appellee was then $15,000.

Appellee answered with a general denial and answered further that all the checks upon which appellant based its claim were drawn against the state and county available funds as appellant pleads and not against the local maintenance fund and that appel-lee deposited with appellant as its deposi *739 tory for said year in said fund more money for the maintenance and operation of the schools than the total amount of checks, drafts and warrants drawn by it against said fund; that appellant was the holder of all such funds belonging to appellee and that if appellant held any such unpaid checks for said year it was because of its own 'wrongful conduct in converting said funds or misapplying them and, in either event, appellee denied liability.

The case was tried without a jury before the court who sustained appellee’s motion for judgment when appellant rested and rendered judgment for appellee denying recovery for appellant , without prejudice to its right to pay the checks in question out of the state and county available school fund for said year belonging to ap-pellee, from which judgment an appeal was perfected to this court.

At the request of appellant the trial court filed his findings of fact, which are, in effect, as follows, to-wit: That appellant was the legal depository of appellee; that appellant was the owner and holder of the checks in the total sum of $6,474.60, all of which were drawn upon appellant against the state and county available fund for the year 1941-42; that the total receipts for said year for said state and county available fund deposited with appellant was $38,-096.71; that the total amount of all checks, warrants and vouchers, including the checks in question drawn by order of appellee upon appellant against said fund for said year was $36,587.75; that appellee had never failed or refused to pay said checks and had never in any manner hindered appellant from paying same from said fund; that appellant, its officers and employees knew that all of said funds were appropriated for said scholastic year of 1941-42 and could be used only for paying checks, warrants and vouchers for said year; that appellee had on deposit with appellant in said fund for said year sufficient funds with which to pay all checks, warrants and vouchers, including the checks sued on, drawn against said fund.

The court concluded as a matter of law that appellant was not entitled to recover but that judgment should be rendered for appellee without prejudice to appellant’s recovery out of the state and. county available fund for the year 1941-42.

At the -further request of appellant the trial court made an additional finding of fact that .the uncollected delinquent maintenance taxes of appellee for years 1942 and prior thereto would be approximately $15,000.

The record discloses that appellant and appellee agreed that appellant used $7,813.29 out of the state and county available school fund for the scholastic year of 1941-42 for the purpose of paying checks dated prior to September 1, 1941, which checks were issued for teachers’ salaries and teachers’ retirement fund assessments accruing prior to said date of September 1, 1941, each check showing the month for which it was issued and the purpose for which it was issued.

The law provides that the fiscal school year runs from September 1st to August 31st of the next succeeding year.

Appellant presents three points or assignments of error as follows, to-wit: That the trial court erred in sustaining appellees’ motion for judgment; that he erred in rendering judgment for appellee rather than for appellant and that he erred in not rendering judgment for appellant against the delinquent maintenance taxes- to be collected by appellee. Appellee challenges each of said points with a counter point and both parties grouped them together for argument and they will be grouped together for disposal by this court.

The record clearly discloses that appellant paid checks drawn for the scholastic year 1940-41 in the total sum of $7,813.29 out of current funds belonging to the state and county available fund for the year 1941-42, thus creating a deficit in said fund for the year 1941-42. It is clear that because of said deficit appellant did not have sufficient funds in the state and county available fund for the year 1941-42 to pay all of the current expenses that accrued and for which checks were lawfully issued for said year.

Appellant concedes that it may be that it “should not have debited the 1940-1941 checks against the 1941-1942 funds but this in itself is not sufficient to justify the plaintiffs losing the thousands of dollars it paid out for the sole benefit of the school district” and it insists that said 1940-41 checks were drawn to pay teachers’ salaries and teachers’ retirement funds for said year and that the schools got the benefit of the money. Appellee contends that the law prohibits the appellant as depository from exhaust-, ing the current funds of appellee for the *740 year 1941-42 by the. payment of expenses for the previous year and then recover on checks issued against state and county available funds for the current year without showing some authorization by appellee for such and without showing that such expenses for the previous year were valid obligations of appellee. Appellee further contends that the checks for expenses for the previous scholastic year created a deficiency debt and that said debt was thus void since the law prohibits the making of contracts with teachers for any fiscal year that will create a deficiency for said year and prohibits a school 'depository from paying checks issued in excess of the current funds for any fiscal school year.

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173 S.W.2d 738, 1943 Tex. App. LEXIS 523, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-state-bank-in-wellington-v-wellington-independent-school-dist-texapp-1943.