Lewis County v. State Bank

170 P. 98, 31 Idaho 244, 1918 Ida. LEXIS 17
Idaho Supreme Court·Decided January 7, 1918·Published·Cited by 5 cases

Opinion

BUDGE, C. J.

This is an action in claim and delivery for the possession of certain promissory notes, or the value thereof in case delivery cannot be had.

It is alleged in the complaint: “That on the 6th day of February, 1915 . . . . , the said plaintiff, the county of [246]*246Lewis, .... was, and now is the owner of, and the said plaintiff, Luther T. McKee, treasurer of said Lewis county, Idaho, was, and now is entitled to the possession of for the use and benefit of the said plaintiff, Lewis county, Idaho, the following described promissory notes”; here follows a description of the various notes. The answer denies ownership in either of the plaintiffs or that either is “entitled to the possession of any. of the promissory notes in the said complaint mentioned; and denies that any of the said notes were made or executed for the use or benefit of plaintiffs, .... or any of them, were ever delivered to plaintiffs, or either of them, in trust or otherwise.” And it is affirmatively alleged that on the 18th day of April, 1914, the county, through its board of commissioners, let to Fike & Mitchell a contract for the construction of a public highway known as the ‘ ‘ Central Ridge Grade, ’ ’ for the sum of $7,250 ; that thereafter the contractors completed the work, and that in the course of performance modifications were made at the instance of the commissioners, acting as individuals, which greatly increased the cost and value of the work, and that the contractors actually disbursed for labor and material the sum of $11,396.79; that the notes in question were given by certain residents and property owners who considered themselves benefited by the highway, to provide a sum sufficient to complete the work over and above the amount allotted by the county; that the notes were delivered to one Ringsage, one of their number, to be kept until the contractors should be through with their work, at which time the notes, or the proceeds, were to be delivered to the contractors; that while the contractors were engaged in the work they kept a banking deposit in a bank a.t Nez Perce, Idaho, and that for convenience checks for labor and materials were from time to time cashed by respondent bank, cleared through its correspondent banks and paid by the bank at Nez Perce upon which the checks were drawn. That on the 5th day of February, 1915, the contractors presented a- claim to the county for extra work in the sum of $2,700, which the bodrd allowed; that the contractors arranged for the delivery of [247]*247the warrant to their bank at Nez Perce and arranged a credit with that bank upon the security thereof. That on the same day the contractors explained the situation to respondent bank; that during the day cheeks to laborers and materialmen upon the bank at Nez Perce amounting to $2,082.18 were cashed by respondent and cleared as usual. That afterward respondent learned that on the 6th day of February, 1915, the county, through its board, had refused to issue the warrant or pay the claim of the contractors. That after respondent had cashed the cheeks, Ringsage, with the consent of the maker of the notes, delivered them to respondent to be collected, respondent to be reimbursed out of the proceeds. The answer contains other affirmative matter not material here.

It appears that a petition, signed by certain of the interested residents of the county residing in the vicinity of Peek, was presented to the board of county commissioners requesting that the Central Ridge grade be built by the county; the commissioners decided to build the road and called for bids; on the 14th of April, 1914, the bids were opened and the bid of Fike & Mitchell accepted. At the meeting of the board, Ringsage was present with certain subscription lists which had theretofore been circulated among and signed by various residents and property holders, who agre'ed to pay certain sums to help in the construction of the proposed road; these lists were not delivered to the county but were' retained by Ringsage, who was advised by the county attorney to take out for circulation an escrow agreement; notes were to be taken from the subscribers and to be placed with the agreement with the bank at Nez Perce; this escrow was never delivered. The contract referred to in the answer was entered into on the 18th day of April, 1914; during that summer, largely through the efforts of Ringsage, certain notes were signed by the various subscribers, made payable on their face to Luther T. McKee, treasurer of Lewis county. These notes were never delivered to McKee but were retained by Ringsage, who kept them in his private box with the respondent bank. In December, 1914, it became necessary to [248]*248raise some money to help out the contractors; no more money was available under the terms of the contract at that time from the county, and Ringsage, acting with the knowledge of two members of the board of county commissioners, acting as individuals, gave his personal note to the respondent bank for $800, and, with the consent of the signers of some of the subscription notes, changed the name of the payee therein by scratching out the name of McKee as treasurer and writing in his own name, and these notes were put up by Ring-sage with respondent bank as collateral to his note. The $800 thus procured was checked out” by Ringsage from time to time upon the order of Fike & Mitchell in payment of various debts incurred in the construction work. On February 5, 1915, the commissioners accepted the road and at the same time allowed Fike & Mitchell’s bill for extras in the sum of $2,700, and ordered a warrant drawn therefor, and it was arranged to have Ringsage turn over the various subscription notes to respondent bank for collection. This action was reported to respondent bank, which thereupon, and during the same day, honored the checks of the contractors upon their bank at Nez Perce as alleged in the answer. On the following day the commissioners rescinded the action of the previous day, rejected Fike & Mitchell’s claim for extras in the sum of $2,700, and directed the auditor not to issue the warrant. Upon learning of this action, the bank at Nez Perce refused to cash the cheeks which had been honored by respondent bank and they were returned to respondent. On the 9th of February, 1915, Fike & Mitchell gave their note to respondent for $2;400 and Ringsage indorsed all of the subscription notes with the name of McKee by himself, and deposited them as collateral with the note of the contractors to reimburse respondent for the cheeks cashed on the 5th of February. The trial court found all of the facts substantially as alleged by respondent and entered judgment accordingly. This appeal is from the judgment.

Each separate finding of the court is assigned as error and the sufficiency of the evidence to support each and every [249]*249separate finding is attacked. There is no substantial conflict in the evidence and it supports the findings.

It is further specified that “the evidence is insufficient to sustain the judgment herein, in that it affirmatively shows that the grade was accepted by the board of county commissioners on the 5th day of February, 1915; that the notes then held by S. I.

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Lewis County v. State Bank, 170 P. 98, 31 Idaho 244, 1918 Ida. LEXIS 17 (Idaho 1918).

170 P. 98 (Lewis County v. State Bank) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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