Linn County v. Farmers' & Merchants' Bank

75 S.W. 393, 175 Mo. 539, 1903 Mo. LEXIS 77
Supreme Court of Missouri·Decided June 9, 1903·Published·Cited by 1 cases

Opinion

BUEGESS, J. J.

— This is an action to recover $424.50, claimed to be the balance due plaintiff by defendants as depository of its funds for two years from the 4th day of May, 1897, at four and one-twentieth per cent interest, on daily balances. Plaintiff had 'judgment for the sum of $359.70. Defendants appeal.

The facts briefly stated are, that the Farmers ’ and Merchants’ Bank was at the time of the institution of this suit on April 18,1900, and prior thereto, a partnership banking institution, and C. W. Trumbo, O. E. Trumbo, Marion Cave, Lee Meyer and James Brown were the partners and as such its owners.

At the May term, 1897, of the county court of Linn county, said defendant bank was selected by said county court depository for plaintiff for the two years next following said May term of said court. A contract was then entered into between plaintiff and defendant bank by which the bank was to pay plaintiff four and [542] one-twentieth, per cent interest, computed bn daily balances, and remaining as a credit to plaintiff, in monthly payments to the treasurer of said county, one C. E. Kelley. The bank became the depository of the county funds on the 10th day of May, 1897, and continued as such until the 2d day of May, 1899.

During that time Kelley, county treasurer, deposited the county’s funds with defendant bank, and from timé to time, the cashier 'of defendant bank, O. E. Trumbo, entered credits on Kelley’s bank book of interest due the county on daily balances, and when such credits were entered there was nothing said as to whether such credits were the full amount of interest due the county on daily' balances to its credit at the time such credits were made, or not, and no settlement was had with the bank. No dispute arose and the treasurer did not know whether the defendant bank had given the county credit on his bank book for all the interest due the county under said contract or not until about the time the contract between plaintiff and defendant 'expired, but about the time the term of the defendant as depository expired, George W. Adams, county clerk for plaintiff county, at the instance of the county court, took Kelley’s bank book showing the account of plaintiff and defendant bank, and made a computation on the daily balances to plaintiff’s credit with defendant at the rate of four and one-twentieth per cent, and it was then discovered for the first time that the interest due plain - tiff under said contract was $1,147.27, whereas, the defendant bank had paid plaintiff and entered on Kelley’s book only $722.77, leaving the balance due the county, as shown by the said contract, Kelley’s bank book, and Adams’s computation, of $424.50. When the attention of the officers of defendant bank was called to the discrepancy of $424.50, and demand made on the bank for a settlement with plaintiff, they contended for the first time that some part of the county’s fund deposited with [543] the bank belonged to the capital school fund, and that on such part as was capital school fund the county could not require interest under the said contract, and also asserted that the bank had paid the county all it owed under said contract, after the interest on the capital school fund was deducted, so that no dispute arose until the time of settlement between plaintiff and defendant' bank arrived, and then the only dispute was the question of whether or not the county was entitled to interest on the capital school fund, if any, which was deposited in defendant bank — the officers for the bank contending that the capital school fund was exempt from the terms of said contract, under the law, and the county court contending that the county was entitled to interest on its daily balances regardless of the question of the capital school fund — and the defendant bank failing to pay the balance of $424.50 claimed by the county, this suit was brought.

The case was tried by the court, a jury being waived.

No declarations of law were asked by plaintiff.

Defendant asked the court to declare the law as follows:

1. That the sum of $722.77 paid the county on daily balances at the rate of 4-1-20 per cent interest, by the defendant .to C. E. Kelley, treasurer, for the term of two years from the 10th day of May, 1897, to May, 1899, monthly, upon the county funds- was a payment to the plaintiff to be placed to the credit of the road or bridge fund, as the county court might order, and if said sum of $722.77 was a less amount than the county was entitled to, the'excess can not be recovered, as nothing was shown, and no attempt on the part of plaintiff was made on the trial to show fraud or mistake of fact by said C. E. Kelley, treasurer, in receiving said daily balances.

2. That no fraud, collusion, of mistake of fact, was pleaded or shown by plaintiff in the receipt of the [544] comity funds by C. E. Kelley, treasurer of Linn county. Therefore no recovery can be had by the plaintiff in this action.

3. . That O. E. Kelley, county treasurer, had full authority as such treasurer to receive four and one-twentieth per cent upon county funds (except capital school fund) computed upon daily balances, monthly, and after the receipt of said interest by him as county treasurer, in behalf of said plaintiff, no claim for excess of interest on daily balances could be made by plaintiff unless fraud, collusion, or mistake of fact was first shown.

4. That no demand for any sum in excess of $722.72 was made prior to this suit of defendant by tho county court, or any authorized agent of the plaintiff.

5. That the monthly settlements made by the defendant with County Treasurer'Kelley in behalf of Linn county, covering the entire term of two years úp to May 2,1899, on daily balances at four and one-twentieth per cent of the county funds, aggregating the sum of $722.77, were prima facie evidence of payments in full of all interest due plaintiff, and as no fraud or mistake of fact- has been shown, the finding should be for defendant.

'Which declarations of law the court refused, to which refusal the defendants then and there excepted at the time.

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Linn County v. Farmers' & Merchants' Bank, 75 S.W. 393, 175 Mo. 539, 1903 Mo. LEXIS 77 (Mo. 1903).

75 S.W. 393 (Linn County v. Farmers' & Merchants' Bank) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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