Improved Industrial Order of Wisemen v. Muskogee Security Nat. Bank

1929 OK 391, 280 P. 1087, 139 Okla. 16, 1929 Okla. LEXIS 202
CourtSupreme Court of Oklahoma
DecidedOctober 1, 1929
Docket18445
StatusPublished
Cited by2 cases

This text of 1929 OK 391 (Improved Industrial Order of Wisemen v. Muskogee Security Nat. Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Improved Industrial Order of Wisemen v. Muskogee Security Nat. Bank, 1929 OK 391, 280 P. 1087, 139 Okla. 16, 1929 Okla. LEXIS 202 (Okla. 1929).

Opinion

LEACH, C.

This action was commences in the district court of Muskogee county b¡, the Improved Industrial Order of Wisemen, as plaintiff, against the Muskogee Seeuritj National Bank and the Grand United Order of Odd Fellows, as defendants. Later, up on motion, L. R. Kershaw, who had been ap pointed receiver of the defendant bank, wav made a party to the suit.

Plaintiff alleged, in substance, in its petition, that it was a fraternal insurance company, with its principal office at Muskogee; that the Muskogee Security National Bank is the consolidated bank of the Muskogee National and Central State Banks, and as such assumed the obligations and liabilities of the Muskogee National Bank; that the Grand United Order of Odd Fellows is a fraternal insurance company with headquarters at Muskogee: that, on the 18th of March, 1921, the plaintiff transferred from its checking account in the Muskogee National Bank the sum of $2,000, and placed it on time deposit and received therefor a certificate of deposit, a copy of which is as follows:

‘■The Muskogee National Bank No. 4248. “Certificate of Deposit.
“(Not subject to cheek) Muskogee, Okla., Mar. 18, 1921.
$2000.00
“Improved Industrial Order of Wisemen. E. N. Guillory, Treas., has deposited in this bank Exactly Two Thousand Dollars. Exactly —_Dollars
100
“Payable to the order of E. N. Guillory, Treas., in current funds, 6 months after date on the return of this certificate properly in *18 dorsed, with interest until maturity only at 4 per cent per annum.
“No interest after maturity;
“This bank reserves the right to demand 30 days notice of withdrawal.
“L. O. Parmenter.
“Vice President.”

That before six months had expired, and without the knowledge, consent, or approval of the plaintiff, the Muskogee National Bank, through its officer, J. M. Sproles, and the Grand United Order of Odd Fellows, through its officer or agent, E. N. Guillory, did wrongfully, knowingly, and jointly, acting together, with the purpose of defeating this plaintiff of its rights in and to said certificate of deposit, transfer said certificate of deposit of $2,000 to the credit of the defendant, the Grand United Order of Odd Fellows; that after the expiration of six months from the date of the certificate of deposit, the plaintiff made demand on the Muskogee National Bank to pay it the said $2,000 with interest, but said bank paid plaintiff only $1,000; that it does not know which one of the defendants now 'holds the remainder, but that both of the defendants are indebted to plaintiff for the balance of $1,000, with interest thereon, and prayed judgment therefor.

The Muskogee Security National Bank filed its answer in the ease, in which it generally denied the allegations of plaintiff’s petition, specifically denied that it was a consolidated bank or assumed the obligations and liabilities of the Muskogee National Bank; and alleged that about June 7, 1921, E. N. Guillory, mentioned in the certificate of deposit referred to in plaintiff’s petition, was the treasurer for plaintiff and in custody and eliarge of the funds of the plaintiff, and did on said date present the certificate of deposit duly endorsed to the Muskogee National Bank and demanded and received payment thereon of the full amount due, and that the bank thereupon was discharged of further liability on the certificate ; that later the plaintiff demanded payment of said indebtedness from the Muskogee National Bank, but the bank denied liability therefor; that, on October 12. 1921. the said bank, still denying its liability, submitted to the plaintiff a proposition of settlement in writing wherein the bank offered to pay the plaintiff the sum of $1,000 in full settlement of the alleged claims growing out of the issuance of the certificate, such payment being conditioned that the governing body of the plaintiff adopt a resolution accepting the offer of settlement, and that the bank be subrogated to any claim or recovery which the plaintiff might have against E. N. Guillory; that the board of managers of the plaintiff company met on October 19, 1921, pursuant to call, and by resolution duly accepted the bank’s offer, and thereupon such bank paid the plaintiff the sum of $1,000 in accordance with the offer and resolution and took receipt there for.

The Grand United Order of Odd Fellows filed its verified answer in the cause wherein it generally denied the allegations of plaintiff’s petition, except it admitted it was a domestic fraternal benefit society, and that the Muskogee National Bank issued to plaintiff a certificate of deposit as alleged, but denied that the same was for funds belonging to the plaintiff. Further answering, it alleged that E. N. Guillory was, on November 6, 1920, and at all time thereafter up to and including March IS, 1921, treasurer of the plaintiff, and was at the same time treasurer of the burial department of the answering defendant, and as such officer of the answering defendant had funds belonging to it in the sum of $1,410; that on November 6, 1920, the plaintiff, by its president, W. T. Hodges, and E. N. Guillory, as treasurer of defendant order,, conspired, confederated, and acting together with the purpose and intent of cheating and defrauding the defendant, entered into an agreement by which the said E. N. Guillory, in pursuance thereof, procured, took from defendant, and delivered to the plaintiff, without the consent of the answering defendant, the sum of $1,410 and did place the same on deposit in the Muskogee National Bank to the credit of the plaintiff and that plaintiff thereafter converted and used the same for its own benefit and has retained and withheld said sum from the answering defendant; that the answering defendant did not know of the fraudulent taking of said sum, nor of the appropriation thereof by the plaintiff until April, 1925, and prayed judgment against the plaintiff for the sum of $1,410 with interest and attorneys’ fees.

The plaintiff filed a reply generally denying the new matter set up in the answers, and further alleged that the plaintiff's board of managers were without authority to settle and compromise the liquidated obligation owing by the bank; and that the purported settlement and compromise was procured by fraud and misrepresentation on the part of the officers of the bank, and that such *19 aettlement was repudiated by tbe Supreme Grand Session.

On tbe issues so framed, a trial was bad, and at tbe conclusion of plaintiff’s evidence, tbe court sustained tbe demurrer of tbe Muskogee Security National Bank to the plaintiff’s evidence, and tbe trial proceeded on tbe issues between the plaintiff and Grand United Order of Odd Fellows, resulting in a verdict for tbe Grand United Order of Odd Fellows against tbe plaintiff, for tbe sum of $1,410, without interest, and judgment was entered accordingly from which tbe plaintiff appeals, and as grounds for reversal sets up several assignments of error in its petition filed herein.

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

Related

St. Louis-S. F. Ry. Co. v. Matthews
1935 OK 775 (Supreme Court of Oklahoma, 1935)
Forrest E. Gilmore Co. v. Gladden
1932 OK 251 (Supreme Court of Oklahoma, 1932)

Cite This Page — Counsel Stack

Bluebook (online)
1929 OK 391, 280 P. 1087, 139 Okla. 16, 1929 Okla. LEXIS 202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/improved-industrial-order-of-wisemen-v-muskogee-security-nat-bank-okla-1929.