Connelly v. Hundley

185 N.E. 309, 96 Ind. App. 439, 1933 Ind. App. LEXIS 165
CourtIndiana Court of Appeals
DecidedApril 26, 1933
DocketNo. 14,554.
StatusPublished
Cited by4 cases

This text of 185 N.E. 309 (Connelly v. Hundley) 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. Hundley, 185 N.E. 309, 96 Ind. App. 439, 1933 Ind. App. LEXIS 165 (Ind. Ct. App. 1933).

Opinion

Bridwell, J.

A receiver having been appointed for the Citizens Bank, Jonesboro, the appellant filed in the court below the following claim, which was duly verified, *440 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 1980. That he surrendered said office to his duly elected successor, Landess L. White, on December 31,1930. 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 the Citizens Bank, Jonesboro. And that on December 31,1926, Samuel A. Connelly, as Clerk, had a special deposit of trust funds in said Citizens Bank, Jonesboro, in the sum of twenty-five hundred ($2,500.00) dollars, evidenced by a certificate of deposit issued by said bank, which certificate of deposit, he endorsed and delivered to this claimant, as his successor in office in making settlement with him. That thereafter said certificate of deposit was renewed by the said Citizens Bank, Jonesboro 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 Citizens Bank, Jonesboro, 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, towit:

‘71-792 No. 29248
THE CITIZENS BANK
Jonesboro, Ind., July 1,1930 $2,500.00
H. L. Connelly, Clerk, has deposited in this Bank exactly Two Thousand Five Hundred Dollars, pay *441 able to the order of self in current funds on return of this Certificate properly endorsed.
W. D. Jay, Cashier.
Interest at 4 per cent per annum, if left 6 months.
No interest after 12 months.
Not subject to check.
Certificate CB of Deposit.’

“That Frank M. Hundley was duly appointed receiver of Citizens Bank, Jonesboro, by this court, on September 22, 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. That said receiver has recognized said deposit as a general 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 a payment on said certificate of deposit as follows: September 3, 1931, $500.00. That said payment was 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 two thousand ($2,000.00) dollars. That there are no set-offs or counterclaims to same.

“That this claimant is liable for the payment of said sum of two thousand ($2,000.00) dollars 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 finable 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 *442 since, the said bank knew that said deposit represented trust funds as aforesaid and that said deposit in the Citizens Bank, Jonesboro, 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 subj ect to check, and was not a general deposit.

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

“WHEREFORE, this claimant prays that said claim of two thousand ($2,000.00) dollars 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 Citizens Bank, Jonesboro, Indiana, 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 dividend of twenty (20%) per cent, has 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 Citizens Bank, Jonesboro, Indiana, with a trust in favor of the said Harry L. Connelly, for the amount of the said certificate of deposit.

(2) “It clearly appears upon the face of said complaint that the said certificate of deposit was issued to *443 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 as alleged, that The Citizens Bank of Jonesboro, Indiana, 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 preferred claim which would create any trust relationship, with reference to the said certificate of deposit, between the said payee thereof, Harry L. Connelly and Citizens Bank, Jonesboro, Indiana.” This motion was argued before the court and the ruling thereon taken under advisement. Thereafter the motion to strike from the files was sustained and the court rendered judgment as follows: “Come now the parties by counsel and the motion of the receiver herein to strike from the files the preferred claim of Harry L. Connelly, former Clerk, is now sustained, to which ruling of the court the claimant, Harry L. Connelly, at the time excepts, and said claimant is allowed 30 days to prepare and file his bill of exceptions herein.

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Cite This Page — Counsel Stack

Bluebook (online)
185 N.E. 309, 96 Ind. App. 439, 1933 Ind. App. LEXIS 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/connelly-v-hundley-indctapp-1933.