Illinois Tuberculosis Ass'n. v. SpringField Marine Bank

282 Ill. App. 14, 1935 Ill. App. LEXIS 624
CourtAppellate Court of Illinois
DecidedOctober 10, 1935
DocketGen. No. 8,905
StatusPublished
Cited by16 cases

This text of 282 Ill. App. 14 (Illinois Tuberculosis Ass'n. v. SpringField Marine Bank) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Illinois Tuberculosis Ass'n. v. SpringField Marine Bank, 282 Ill. App. 14, 1935 Ill. App. LEXIS 624 (Ill. Ct. App. 1935).

Opinion

Mr. Presiding Justice Davis

delivered the opinion of the court.

The Illinois Tuberculosis Association, plaintiff appellee, recovered a judgment in. an action at law against the Springfield Marine Bank, defendant appellant, in the circuit court of Sangamon county, to reverse which defendant prosecutes this appeal.

Plaintiff alleges in its complaint that from January 4, 1933, until February 16, 1934, it deposited with defendant bank more than $26,721.80, and that on the latter date defendant was indebted to it in excess of $3,077.04 and that on demand the defendant refused to pay said sum to plaintiff.

The defendant, the Springfield Marine Bank, answered stating that the amount deposited was $26,121.80 and averred that the said sum of $3,077.04 together with other amounts had been withdrawn prior to November 6, 1933, by checks of plaintiff and that on the dates of plaintiff’s demand the balance was $142.18. By amendment to its answer it is alleged that during the period stated in the complaint the defendant had on or about the first day of each month issued a statement of the account between the parties showing correctly the amount of monies deposited by the plaintiff with the defendant and the amounts of money withdrawn by the plaintiff from its account and that tlie defendant delivered such statements, together with all the checks charged against the plaintiff’s account to the plaintiff on or about the date of the issuance of the statements and that at no time prior to November 6, 1933, did the plaintiff make any complaint or objection to the said statements of account.

The Illinois Tuberculosis Association is a charitable corporation in the State of Illinois, an affiliation of 101 county associations who elect a board of directors of 83, which in turn elects an executive committee or board of 13. The officers consist of a president, treasurer and an executive secretary who is the only salaried officer of the association. The executive office of the association is in Springfield. Dr. Edward S. Murphy was president, George E. Keys was treasurer until September, 1933, when he was succeeded by Dr. J. P. Denby, and W. P. Shahan was executive secretary.

During 1933 the association did their banking business Avith the Springfield Marine Bank and maintained a checking account. All checks that were issued required the signatures of the president, treasurer and executive secretary. The checks were drawn on the Springfield Bank and were first signed by the executive secretary at Springfield and were then mailed to the president who resided in Dixon, Illinois, Avith bills and voucher statements attached, and after being signed by him they were sent by him either to the treasurer Avho resided in Springfield or else back to the Springfield office, and after being signed by the treasurer were mailed or delivered to the payee.

The executive secretary was in charge of the office of the plaintiff and was responsible to the executive board or board of directors. He. employed the help to assist him, which consisted of a personal secretary and office secretary and Joseph. Roscetti Avho was the bookkeeper during 1933. The accounts of the association Avere audited every year covering the fiscal year which was from January 1 to December 31. . The board held executive meetings quarterly.

The checks drawn by plaintiff on its checking account were presented for payment in one of three Avays: By presentation to the paying tellers of whom there were two in the bank at that time, J. P. Rothermel and Oscar Pritchett, by mail and through the clearing house. The checks that, came by mail or through the clearing house went to the central desk and were examined as to signatures by the chief clerk, who up to May, 1933, was George W. Bettinghaus and from then on C. G. Lambert.

Check No. 1966 dated October 31, 1933, for $92.05, payable to W. P. Shahan and signed by him as executive secretary, was mailed to Dr. Murphy and from his office to Dr. Denby and then back to the Springfield office. W. P. Shahan was away at the time on a business trip and when the check was returned to the office it was supposed to have been put in the safe awaiting his return. When the check was not found in the safe and when Roscetti did not appear at work on that day, November 6, Shahan went over to the bank and found the check upon which the name of W. P. Shahan was forged with the name of Joseph Roscetti below that of the name W. P. Shahan. This check had not been charged to the account of the association and payment was stopped on the check.

An audit was made of the books of the association, which was begun on November 6, 1933. This audit covered the period from January 31, 1933, to November 6, 1933. The audit disclosed that there had been about $3,077.04 worth of checks paid by the bank which were not authorized by the association. The audits made of the books for the years 1930, 1931 and 1932, which had been kept by Mr. Roscetti showed that the accounts were in good condition and no irregularities were found by those audits prior to 1933.

The defendant bank during the period that this account was running issued statements to its customers on or about the first of each month, and the statements of the account of plaintiff with the bank were delivered to Mr. Roscetti. The defendant refused to pay the $3,077.04 demanded by plaintiff for the reason that it claimed the balance of plaintiff was only $142.18.

A jury trial was demanded by plaintiff and upon a trial of the cause the jury returned a verdict finding the issues for the plaintiff and assessing its damages at the sum of $4,194.13. A judgment was entered upon the verdict and thereafter and within 10 days an order was entered giving the defendant time within which to file its motion for a new trial and its motion for a judgment notwithstanding the verdict. The court denied the motion of the defendant for a new trial. The motion of defendant for judgment non obstante veredicto, which assigned as reasons the want of evidence to sustain the verdict was overruled by the court.

It is insisted by defendant that its own freedom from negligence and its affirmative defense of estoppel having been established by uncontradicted and undisputed evidence, the trial court erred in refusing to grant its motion for a directed verdict in its favor and in refusing to enter judgment for the defendant notwithstanding the verdict.

The evidence discloses that the chief clerks at the central desk, during the time this account of plaintiff was running, Bettinghaus until May, 1933, and Lambert during the balance of the time, had the general supervision of the bookkeeping of the bank and also had charge of the central desk where all the checks that came by mail or through the clearing house were examined as to being regular on their face and as to signatures. A great number of checks each day were passed upon. Bettinghaus while in charge of the central desk examined from fifteen hundred checks on some days to several thousand on other days, and Lambert while chief clerk examined from five to six thousand checks a day. From the very nature of their duties and the great number of checks passing through their hands every day it appears that not sufficient attention could be given each item.

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282 Ill. App. 14, 1935 Ill. App. LEXIS 624, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-tuberculosis-assn-v-springfield-marine-bank-illappct-1935.