Hough v. First National Bank

173 Iowa 48
CourtSupreme Court of Iowa
DecidedDecember 16, 1915
StatusPublished
Cited by4 cases

This text of 173 Iowa 48 (Hough v. First National Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hough v. First National Bank, 173 Iowa 48 (iowa 1915).

Opinion

Weaver, J.

The plaintiff brings this action at law, alleging that, on August 15, 1913, be deposited with the defendant bank the sum of $3,125.59, for which the bank, by its cashier, made and delivered to him a deposit ticket; and that thereafter, on August 16, 1913, he demanded of the bank repayment of the amount so deposited and repayment was refused. Upon this showing, plaintiff demands judgment in his favor for the full amount of the deposit, with interest. The defendant admits that, on the day named in the petition, [50]*50it issued to plaintiff a deposit slip for the sum of $3,125.59, but denies that it represented money received from plaintiff or for his use or account. It is alleged that the deposit slip represented a sum of money which had been placed in its hands as a special deposit by one Thorp, to be paid over to the clerk of the court in discharge of a certain judgment rendered in the district court against the said Thorp in favor of the plaintiff Hough; that plaintiff, well knowing the conditions upon which Thorp had made the deposit, stated to the defendant that the judgment had been discharged in full, and that, by reason thereof, he had become entitled to be credited with,the full amount of the deposit; although, in truth and in fact, the judgment had not been discharged or released and no settlement or adjustment thereof had been made, and defendant, relying upon the truth of said representations, gave credit to plaintiff and issued him the ticket. Defendant further alleges that, after issuing the deposit ticket, it ascertained the true condition of the record relating to the judgment, and thereupon withdrew the credit it had given the plaintiff on its books and remitted the full amount of money yeceived from Thorp to the clerk of the district court of said county, to be applied to the satisfaction of such judgment.

The mere reading of the issues as formally set forth in petition and answer naturally gives rise to the thought that the controversy involves no substantial right, and that, even if plaintiff’s demand upon the bank was refused, as alleged by him, he has only to go to the clerk’s office and draw the same amount of money paid in there to his credit, for the satisfaction of the judgment against Thorp. The puzzle is solved, however, when, upon going further into the record, we discover that plaintiff’s attorneys, who procured the judgment in his favor, had filed, or attempted to file, a lien thereon for their services in that case, and that plaintiff is unwilling to recognize or pay such claim. For this reason, plaintiff refuses to acknowledge the payment made to the clerk, and insists that the bank, by its act in crediting him with the [51]*51amount of money left in its hands by Thorp, paid to him the full amount of the judgment, and that the money thereupon became his property as completely and absolutely as if Thorp had in person paid that sum directly into his hands. The issue was tried to a jury and, at the close of the testimony, the court, upon defendant’s motion, directed a verdict in its favor, and judgment was rendered thereon against plaintiff for costs. Plaintiff appeals.

1. Banks and banking: deposits: erroneous or improper credit right to correct. It is undisputed that Thorp left the money with the defendant bank to pay the judgment. Concerning the circumstances of this payment or deposit, Thorp testifies: “I left the money with the cashier, Hanson, on the 13th or 14th of August. I instructed him to send ^ next to the clerk of the eour£ a£ West Union to pay the judgment which Hough had against me. I did not give any other or different instructions to the bank with reference to this money.” Hanson, tfie cashier, who transacted the business with both Thorp and plaintiff, says: “Mr, Thorp told me to satisfy the judgment against him by sending the money to the clerk of the court. He never gave me any other or different instructions.” These statements harmonize and, as there is no evidence to the contrary, their truth may be considered established, for the purposes of this case. As to what took place between plaintiff and the cashier, their testimony is more widely at variance. Plaintiff’s story is to the effect that, responding to information by telephone from the cashier that the judgment had been paid, ór that the money was there for such payment, he went to the defendant bank, on August 15, 1913, where Hanson showed him a memorandum indicating that the amount due on the judgment was $3,125.59, and then asked, “What will you have for this?” Plaintiff having suggested that he would take either draft or certificate of deposit, Hanson went behind the counter a moment, and when he returned, said, “I just credited your account. You can check it out. You probably won’t need it all right away”; [52]*52and with that, he gave the defendant the deposit slip. At the same time, plaintiff signed and left with Hanson a receipt, as follows:

‘ ‘ $3,125.59
Oelwein, Aug. 15, 1913.
“Received of First Nat’l Bank for B. E. Thorp, Thirty-one Hundred Twénty-five & 50/100 Dollars, in full satisfaction of judgment in action B. E'. Thorp v. J. W. Hough. •
“John W. Hough.”

On the next day, plaintiff returned to the bank and presented a check .for the amount of the deposit slip, and payment was refused, because Hanson had discovered the alleged attorney’s lien and that plaintiff was refusing to recognize it. Hanson, for the defendant, swears that he told plaintiff that Thorp had left the money with the bank “to satisfy the judgment at West Union”; but witness expressed the thought that he could turn it over to plaintiff direct. Plaintiff then suggested that he would take the money, but the witness responded, “No, I will give you a deposit slip for it as a receipt.” At the interview next day, when payment of the cheek was refused, the1 cashier says he explained to plaintiff the embarrassment caused by the attorneys’ lien, — that the bank could not pay the money over to him and expose itself or Thorp, or both, to liability for the amount of such lien, — ■ and that, if plaintiff would clear the record in this respect, the ■ bank would at once pay the full amount of the deposit. He further says that, finding himself unable to agree with the plaintiff, he transmitted the full sum to the clerk at West Union. The deposit account of the defendant was corrected by charging it with “error”, to the amount of the deposit slip. Plaintiff denies that Hanson informed him that the money had been left at the bank by T'horp with instructions to pay it to the clerk. It is also shown that, after the money covering the full amount of the judgment had been paid into the clerk’s office by the bank, Mr. W. J. Ainsworth, an [53]*53attorney at law, who represented plaintiff in procuring the judgment, and whose authority to appear and act for him in the case had never been withdrawn, received and receipted for the full amount of the recovery and interest. There is other evidence having bearing upon the validity of the attorneys.’ lien; but, in our view of the rights of the parties to this action, that is a question we are not called upon to decide.

For two sufficient reasons, we hold that the lower court correctly directed a verdict for the defendant:

(1) It is shown without dispute that Thorp, having a credit at the defendant bank, specifically directed the.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Citizens' Bank of Headrick v. Citizens' State Bank of Altus
1919 OK 157 (Supreme Court of Oklahoma, 1919)
American Nat. Bank of Stigler v. Funk
1918 OK 282 (Supreme Court of Oklahoma, 1918)
Lyon County State Bank v. Schaefer
171 P. 1159 (Supreme Court of Kansas, 1918)
Butler v. Farmers National Bank
173 Iowa 659 (Supreme Court of Iowa, 1916)

Cite This Page — Counsel Stack

Bluebook (online)
173 Iowa 48, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hough-v-first-national-bank-iowa-1915.