Hancock v. Anderson

168 S.E. 458, 160 Va. 225, 1933 Va. LEXIS 201
CourtSupreme Court of Virginia
DecidedMarch 16, 1933
StatusPublished
Cited by18 cases

This text of 168 S.E. 458 (Hancock v. Anderson) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hancock v. Anderson, 168 S.E. 458, 160 Va. 225, 1933 Va. LEXIS 201 (Va. 1933).

Opinion

Holt, J.,

delivered the opinion of the court.

Under review is a judgment for damages which rests upon an alleged breach of trust and confidence.

Mr. Ira L. Anderson, father of Miss Jessie Anderson, was a citizen of Richmond and died in 1924. He did business with the Mechanics and Merchants Bank, and in 1923 placed with it for collection notes, the face value of which was $12,000. He had given these notes to his daughters, Miss Jessie Anderson and Miss Ruth Anderson. The proceeds, as collected, were to be credited to their several accounts in that bank. They were secured by a trust deed on what is known as the “Green House Property,” and were executed by its owner, their brother, Edward C. Anderson, from whom, for some reason not germane to. this litigation, they had been estranged.

Identical actions were instituted by these daughters at the same time and in the same court, and it was stipulated by counsel that they were entitled to the same recovery, if any. These actions were tried together; the same evidence was considered in both cases; the same rulings made; the same instructions given, and the same verdict entered; and they must stand or fall together.

J. H. Patterson was the active vice-president of this bank, and had been their father’s friend. They were women of limited business experience, and went to him for advice [229]*229about their estate and the manner in which it should be invested. He suggested the purchase of certain real estate bonds. These were bought. Hereafter, for convenience, we will deal with Miss Jessie’s suit alone. She then asked him should she, if the occasion arose, thereafter consult with him about like purchases or should she see Mr. Hancock, the bank’s cashier, and was told that she might see him, that he would do just as well, and on this advice all of her later dealings were with Mr. Hancock. She bought other securities from the bank, “bought numerous bonds there—not so many.” Some of these the bank itself owned and some it sold for outside parties. She also bought bonds during this time from the State-Planters Bank and Trust Company, and from the American Bank and Trust Company. Certainly, on one occasion, on her own judgment, she declined to buy a bond which Mr. Hancock recommended. They kept a running account at this bank and a checking balance which usually ran from $300 to $500, and went there as did other customers. Her dealings, as we have seen, were with the cashier, Mr. Hancock. She said that she regarded Mr. Hancock as a bank official rather than as an individual, and would have continued to deal with the bank had he left it. Miss Jessie’s share of the notes deposited was $6,000. On them her brother paid $2,000 and interest, but in 1928 he found himself unáble to make other payments and asked for renewal of his notes.

“Mr. Hancock told me my brother would like to renew the notes as he found it difficult to pay them. He thought after three years he could be in a better position to pay them, and I told Mr. Hancock to go ahead and renew them.

“Q. Who did you understand Mr. Hancock was acting for in that transaction ?

“A. For the bank.”

This suggestion and request, which came from the brother, Hancock thought well of, advised compliance, and the notes were renewed. In 1929 she became anxious and went again to see Hancock who told her that the property [230]*230was valuable, that she had a first mortgage on it, but that it was also covered by a second mortgage and in case of a sale her debt would be taken care of. Interest was still in default. In answer to her inquiries he said: “No, he hasn’t paid anything. We are going to sell him out.” “The second mortgage man hasn’t told me yet, but I know he is going to tell me to do it.” From time to time like inquiries were made and like answers given. In March, 1930, he told her that the second mortgage man was willing to pay her overdue interest, and said that if she would accept such a payment it would put off the sale. This she was willing to do. Only one interest note was paid. On March 23, 1930, in answer to a telephone call, she again went to see Hancock when this conversation occurred:

“A. When I went in there Mr. Hancock was busy. In a few minutes he came up and said, ‘Well, the second mortgage man is not going to sell your brother out and says if you sell him out he is not going to bid it in, so if you sell him out you will probably have to take it in because the way conditions are now I doubt if you can get a bid on it. I asked him what he would give you ladies for the notes.’

“Q. Mr. Hancock said he asked the second mortage man?

“A. Yes,—‘and he intimated he would give you $8,000.’ I said to Mr. Hancock, ‘Well, if we accept that what will the man do then? Will he sell my brother out?’ and he said, T don’t know.’ Then he said, ‘Let me think a minute.’ He sat on the top of the desk or table, whatever you call it, and said, ‘Let me think,’ and said, ‘He has asked you something; suppose you ask him something.’ He said, ‘Suppose I ask him if he will give your brother the use of the greenhouse for one year without interest and pay you $8,000,’ and I didn’t say anything. I came home and I saw Mr. Kemp and I told Mr. Kemp.”

Hancock also said: “The second mortgage man is not going to sell your brother out. He has decided to take his loss. If you sell it he is not going to bid it in and you will probably not get a bid on it and you will probably have [231]*231to take it yourself,” and that he wanted to give her time to think the matter over. He then told her that he was trustee in the second mortgage, “and couldn’t advise us in any way about it.”

Mr. George S. Kemp was a friend of the family, a business man of wide experience and trustee in the first deed of trust. To him she went for advice. He, in the meantime, had been told by Edward Anderson that he had actually deeded this property to Hancock himself. Hancock, on the other hand, was proceeding as if Anderson was still the owner. In the confusion thus created Kemp did not know what to do, and suggested that she consult a lawyer. That advice was not followed. On Friday, following the interview of March 23rd, Hancock called up Miss Jessie and asked her what they had decided to do. She told him they had made no decision and he then told her to call up Mr. Kemp and ask him. In the course of her conversation with Mr. Kemp she told him that she could not take over the greenhouse herself. Kemp told her of her brother’s claim. He tried in vain to secure an advance offer of $9,000. Finally, on Saturday, with Miss Jessie’s advice, Kemp ‘phoned from her home to Hancock that they would take the $8,000 offer, and on Monday, March 30th, the sale was completed at the bank. Miss Anderson in a note addressed to the bank, authorized sale at the price stated, and at the same time Hancock delivered the following certificate:

“Richmond, Va., March 30, 1931.

“This is to certify that I hold a letter from the holder of certain second mortgage notes of Edward C. Anderson secured by deed of trust on his property at Forest Hill, Richmond, Virginia (Green House property) instructing me to cancel the order to sell said property at auction and also stating that he will not sell at auction said property for one (1) year from date and that no interest will be charged Edward C. Anderson on the first or second mortgage for one (1) year from date.

“J. B. Hancock. Trustee.”

[232]

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Cite This Page — Counsel Stack

Bluebook (online)
168 S.E. 458, 160 Va. 225, 1933 Va. LEXIS 201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hancock-v-anderson-va-1933.