Hess v. Union State Bank

60 N.E. 305, 156 Ind. 523, 1901 Ind. LEXIS 80
Indiana Supreme Court·Decided April 24, 1901·No. No. 19,160·Published·Cited by 2 cases

Opinion

Hadley, J.

The evidence ’tends to prove that on February 7, 1891, appellant, Henry G. Hess, executed to the United States National Bank of Chicago, controlled by its president, Zimri Dwiggins, his two notes for $5,000 each. For a year previous Hess had been conducting at Bremen, Indiana, a private bank known as the Union Bank of [524] Bremen, and had been, employing Dwiggins’ bank as his Chicago correspondent. On February 14, 1891, the United States National Bank was'merged into the Columbia National Bank of Chicago, Dwiggins becoming cashier and manager of the new bank, and the new bank succeeding to the assets of the merged bank, among which were Hess’ two notes. February 28, 1891, Hess succeeded in accomplishing the organization of the Union State Bank of Bremen, appellee, into which he merged his private bank, and became cashier of the State Bank, and selected Dwiggins’ new bank, the Columbia National, as the Chicago.correspondent of the new Union State Bank of Bremen. March 6, 1891, Hess, having.no individual account with the Columbia National, drew his personal check upon that bank for $10,000 in payment of his two notes. Dwiggins accepted the check, and canceled and returned to Bless his two notes as paid, and' with the knowledge'of Hess charged the face amount of the check, $10,000 and $62 additional as accrued interest to the Union State Bank of Bremen, appellee, with the letters H. (x. H. set opposite the entry. Hess was the cashier of said Bremen bank, and as such officer early in April,’ 1891, received from the Chicago bank its monthly statemént of account with the Bremen bank for March, 1891, which statement disclosed the particular charge of $10,062 against the Bremen bank, resulting from the payment of his notes, but said charge was neither then nor at any subsequent time placed upon the books- of the Bremen bank by Hess or any one else. February 28, 1893, Hess deposited of his own-money with the Chicago bank $7,593.36, and had the same credited to the Bremen bank, of 'which he was still the cashier,' and received from the Chicago bank a deposit1 ticket showing the fact. This credit to the Bremen bank, like the charge against it of $10,062 about two years before, both appearing upon books of the Chicago bank in its account with the Bremen bank, was not at any time placed upon the books of the Bremen bank by Hess or any one else. Hess [525] never in any way or part reimbursed appellee bank for the $10,062 caused by him to be charged against its account by the Chicago bank when he took up his two notes, except by the deposit of said $7,593.36. May 11, 1893, the Chicago bank went into the hands of a receiver, and about the same , time Hess resigned as cashier of the appellee bank, and about four years later, to wit, on May 14, 1897, demanded of appellee payment of the $7,593.36 the sum so deposited by him with the Chicago bank for the use of appellee, and upon its refusal he brought this suit to enforce such pay-.m.ent.

The complaint in substance charges the deposit of the ■$7,593.36 with the Columbia National bank for the use and benefit of appellee; that.appellee accepted the deposit, drew against it, and appropriated the same to its own use, and had refused to pay it to appellant upon his demand. The general. denial is .the only answer to which evidence was addressed. Verdict and judgment for defendant. The error assigned is the overruling of appellant’s motion for a new trial.

. It is urged through many pages of brief that the verdict is contrary to law because reached by incompetent evidence and a consideration of erroneous principles of the law' given the jury by'the court. The argument being that the deposit of the $7,593.36 with the Chicago bank on the 28th of February., 1893, to the credit of the Bremen bank, its acceptance and use by the Bremen bank, and the demand and refusal of payment, being the only issues tendered by the complaint, the general issue only authorized evidence of such pertinent and contemporaneous facts as directly tended to negative one or more of the propositions affirmed in the complaint, and that the wide range allowed the inquiry, as indicated above, was an exploration of facts without the issues, and therefore erroneous. Our code provides that “under a mere denial of any allegation, no evidence shall be introduced which does not tend to negative what the party [526] making the allegation is bound to prove.” §380 Burns 1894, §377 R. S. 1881 and Horner 1897. By this is not meant tiiat ail evidence under the general denial must be directly negative in character, but facts independent of those averred in the complaint, of a nature affirmative, but which have‘a negative effect upon the issues, are admissible. Farmer v. Calvert, 44 Ind. 209; Pomeroy’s Code Rem. (3rd ed.), §671 et seq.

Here, under the allegation of indebtedness to the plaintiff on account of the deposit, it was surely competent for the defendant, under the general denial of such indebtedness, to prove by any fact or circumstance that it never incurred or owed the debt. Under the facts of the case it would seem that no other maintainable answer would meet the issues tendered. It is conceded by appellee that the appellant made the deposit of $7,593 with the Chicago bank, that the deposit was made with appellant’s own money, and that appellee’s credit account with the Chicago bank, thus increased, was disbursed by appellee’s checks and ’ drafts drawn against it.’ But all these things may be true, and no indebtedness or liability to appellant be incurred thereby. This, in fact, is the exact controversy.

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Hess v. Union State Bank, 60 N.E. 305, 156 Ind. 523, 1901 Ind. LEXIS 80 (Ind. 1901).

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