Connelly v. Calender

185 N.E. 338, 96 Ind. App. 432, 1933 Ind. App. LEXIS 164
CourtIndiana Court of Appeals
DecidedApril 26, 1933
DocketNo. 14,555.
StatusPublished
Cited by4 cases

This text of 185 N.E. 338 (Connelly v. Calender) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Connelly v. Calender, 185 N.E. 338, 96 Ind. App. 432, 1933 Ind. App. LEXIS 164 (Ind. Ct. App. 1933).

Opinion

Bridwell, J.

A receiver having been appointed for the Gas City State Bank, the appellant filed in the court below the following claim, which was duly verified, to-wit.: “Harry L. Connelly, former Clerk of the Grant Circuit Court of the State of Indiana, being duly sworn upon his oath says as follows: That he was Clerk of the Grant Circuit Court of the State of Indiana, during the years 1927, 1928, 1929 and 1930. That he surrendered said office to his duly elected successor, Landess L. White, on December 81, 1930. That for eight years prior to the term of this claimant as Clerk of the Grant Circuit Court, Samuel A. Connelly was Clerk of said Court, and this claimant succeeded him as said officer on December 31, 1926. That during the time Samuel A. Connelly was Clerk of said Grant Circuit Court, he made various special deposits of trust funds held by him as such officer in First State Bank and after October 4, 1926, in The. Gas City State Bank. And on December 31,1926, Samuel A. Connelly, as Clerk, had a special deposit of trust funds in said The Gas City State Bank, in the sum of Twenty-five hundred dollars ($2,500.00), evidenced by a certificate of deposit issued by said bank, which certificate of deposit, he endorsed and delivered to this claimant, as *434 his successor in office in making settlement with him. That thereafter said certificate of deposit was renewed by The Gas City State Bank at intervals of approximately three months each and new certificates of deposit issued to this claimant as Clerk of the Grant Circuit Court, representing said special deposit of trust funds. That the last renewal certificate was issued and delivered to claimant as Clerk of the Grant Circuit Court by The Gas City State Bank on July 1, 1930, as evidence of said special deposit of trust funds in said bank. Said certificate of deposit is in the words and figures as follows, to wit.:

‘71-762 No. 12778
THE GAS CITY STATE BANK
Gas City, Ind., July 1,1930 $2,500.00
H. L. Conley Clerk has deposited in this Bank Registered
568100....................2500 Dol’s 00 Cts.....................Dollars
payable on demand to the order of same in current funds on the return of this Certificate properly endorsed.
With interest for even periods of 3 months at 4 per cent per annum if left 3 months.
J. W. Ball Cashier
No interest allowed after one year from date This certificate is not subj ect to check.
Certificate of Deposit.’

“That this claimant was named as ‘H. L. Conley, Clerk,’ instead of ‘H. L. Connelly, Clerk,’ as he should have been, but that said name in said certificate of deposit represented this claimant.

“That Rome T. Calender was duly appointed receiver of said The Gas City State Bank, by this court, on September 15, 1930, and duly qualified as such receiver and is now the receiver of said bank.

“That at the time said receiver took possession of the assets of said bank, said certificate was wholly unpaid. *435 That said receiver has recognized said deposit as a geera! claim and has recognized this claimant as the proper party to whom distribution dividends on said Certificate of Deposit should be paid; and since his appointment, the receiver has made payments on said certificate of deposit as follows: November 26, 1930, $420.05; January 17, 1931, $252.02; April 14, 1931, $252.02. That said payments were accepted by this claimant and paid by him to his successor in office, Landess L. White, as Clerk of the Grant Circuit Court.

“That there is now due and unpaid on said certificate of deposit the sum of one thousand five hundred and seventy-five dollars and ninety-one cents ($1,575.91). That there are no set-offs or counterclaims to same.

“That this claimant is liable on his bond for the payment of said sum of one thousand five hundred seventy-five dollars and ninety-one cents ($1,575.91) to his said successor in office; and the State Board of Accounts of the State of Indiana, by two of its duly appointed and acting field examiners, has found that said' sum is due from him and has not been paid to said successor. That this claimant has been unable to make full settlement of said trust funds with his successor in office on account of the insolvency of' said bank.'

“That said special deposit consisted of trust funds held by the Clerk and when so deposited and at all times since, the said bank knew that said special deposit represented trust funds as aforesaid and that said special deposit in The Gas City State Bank was impressed with a trust in favor of this claimant as said Clerk, and his successor in office. Said deposit as hereinbefore averred was not subject to check, and was not a general deposit.

“That this claimant says that this claim is a preferred claim and he is entitled to the full payment of the balance due on same to enable him to settle his account with his successor in office.

*436 “WHEREFORE, this claimant prays that said claim of one thousand five hundred seventy-five dollars and ninety-one cents ($1,575.91) be allowed as a preferred claim, and that the receiver be ordered to pay same in full, either to this claimant or to Landess L. White, his successor in office and present Clerk of the Grant Circuit Court, for the benefit of this claimant; and for all other proper relief.”

Appellee filed his motion to strike said claim from the files for each of the following reasons: (1) “It appears upon the face of the said preferred claim that the said claim of the said Harry L. Connelly is based upon a certificate of deposit, issued by The Gas City State Bank on the 1st day of July, 1930, in the principal sum of Two Thousand Five Hundred ($2,500.00) Dollars, and that his said claim has already been recognized and allowed by this Receiver as a general claim, and dividends of 16 2/3 per cent., 10 per cent., and 10 per cent., have already been paid thereon; and there are no facts stated -in the said alleged preferred claim, which, under the law of Indiana, would entitle the said Harry L. Connelly to a preference on the said certificate of deposit; nor are there any facts alleged which would impress the property of The Gas City State Bank with a trust in favor of the said Harry L. Connelly, for the amount of said certificate of deposit.

(.2) “It clearly appears upon the face of said complaint that the said certificate of deposit was issued to the said Harry L. Connelly in the regular course of business, and the word ‘Clerk’ appearing after his name is only descriptio personae, and the fact, if it be the fact alleged, that The Gas City State Bank knew that the said funds were trust funds in the hands of the said Harry L. Connelly, would not impress the said funds with a trust in the hands of the Bank.

(3) “There are no facts stated in the said alleged pre *437

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Bluebook (online)
185 N.E. 338, 96 Ind. App. 432, 1933 Ind. App. LEXIS 164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/connelly-v-calender-indctapp-1933.