Davis v. First National Bank of Hazard

Court of Appeals of Kentucky (pre-1976)

Davis v. First National Bank of Hazard

44 S.W.2d 285, 241 Ky. 435, 1931 Ky. LEXIS 96

CourtCourt of Appeals of Kentucky (pre-1976)

DecidedDecember 11, 1931

StatusPublished

This text of 44 S.W.2d 285 (Davis v. First National Bank of Hazard) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Davis v. First National Bank of Hazard, 44 S.W.2d 285, 241 Ky. 435, 1931 Ky. LEXIS 96 (Ky. 1931).

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Opinion

Opinion of the Court by

Drury, Coommisstoner

Reversing.

R. O. Davis et al. set forth their grievance against the First National Bank in Hazard, in a petition which with the amendment thereto occupies nineteen pages of the record before us. A demurrer was sustained to it, their petition was dismissed, and they have appealed.

Briefly stated their complaint is that they were stockholders in the First National Bank of Hazard (hereinafter referred to as the old bank), and that the First National Bank in Hazard (hereinafter referred to as the new bank) by fraud and through a conspiracy entered into by the new bank with the unnamed directors of the old bank, induced and procured the directors of the old bank to turn over to the new bank assets of the old bank worth and aggregating $1,350,000, and induced the old bank to execute to the new bank its note for $100,000, thus making a total of $1,450,000 which the new bank thus obtained and that the only consideration given therefor *436 was the undertaking by the new bank to pay $948,466.77 which the old bank owed to its depositors.

If these things be true and for the purpose of this demurrer, we must so take them, then the old bank and its stockholders have by this arrangement been made to lose $501,533.23, and R. O. Davis et al. have been damaged thereby to the extent that their interest in the $100,000 of the capital stock of the old bank would entitle them therein. The demurrer was erroneously sustained.

The judgment is reversed.

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Opinion of the Court by

Drury, Coommisstoner

Reversing.

R. O. Davis et al. set forth their grievance against the First National Bank in Hazard, in a petition which with the amendment thereto occupies nineteen pages of the record before us. A demurrer was sustained to it, their petition was dismissed, and they have appealed.

Briefly stated their complaint is that they were stockholders in the First National Bank of Hazard (hereinafter referred to as the old bank), and that the First National Bank in Hazard (hereinafter referred to as the new bank) by fraud and through a conspiracy entered into by the new bank with the unnamed directors of the old bank, induced and procured the directors of the old bank to turn over to the new bank assets of the old bank worth and aggregating $1,350,000, and induced the old bank to execute to the new bank its note for $100,000, thus making a total of $1,450,000 which the new bank thus obtained and that the only consideration given therefor *436 was the undertaking by the new bank to pay $948,466.77 which the old bank owed to its depositors.

If these things be true and for the purpose of this demurrer, we must so take them, then the old bank and its stockholders have by this arrangement been made to lose $501,533.23, and R. O. Davis et al. have been damaged thereby to the extent that their interest in the $100,000 of the capital stock of the old bank would entitle them therein. The demurrer was erroneously sustained.

The judgment is reversed.

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Bluebook (online)

44 S.W.2d 285, 241 Ky. 435, 1931 Ky. LEXIS 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-first-national-bank-of-hazard-kyctapphigh-1931.