Merchants & Planters Bank & Trust Co. v. Deaton

141 S.W.2d 543, 200 Ark. 828, 1940 Ark. LEXIS 147
CourtSupreme Court of Arkansas
DecidedMay 27, 1940
Docket4-5974
StatusPublished
Cited by1 cases

This text of 141 S.W.2d 543 (Merchants & Planters Bank & Trust Co. v. Deaton) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merchants & Planters Bank & Trust Co. v. Deaton, 141 S.W.2d 543, 200 Ark. 828, 1940 Ark. LEXIS 147 (Ark. 1940).

Opinion

Mehaeey, J.

On July 22,1935, J. W. Thompson was appointed guardian of the persons and estates of James Deaton, Edward Deaton, Patricia Deaton, aid Peggy Deaton, minors, and the said Thompson, on said date, executed a bond in the sum of $3,000 upon which Merchants & Planters Bank & Trust Company was surety, and later, on April 17, 1937, the said J. W. Thompson executed another bond in the sum of $3,000 with the United States Fidelity & Guaranty Company as surety.

This action .was instituted in the Pulaski circuit court by Mrs. Arlege Deaton, guardian in succession of the above mentioned minors, against the United States Fidelity & Guaranty Company, Merchants & Planters Bank & Trust Company and J. W. Thompson. The appellee prayed judgment against each of the defendants for the sum of $2,558.90 with interest. Copies of the bonds were filed with the complaint.

About July 22, 1935, J. W. Thompson filed a petition asking that he be appointed guardian of the estate and persons of the minors above named. He was thereupon appointed guardian.

It is alleged in the complaint that no order has ever been made by the Clark county probate court releasing or discharging the principal or surety of either of said bonds. The guardian was appointed by the Clark probate court. After qualifying as guardian of said minors, the said J. W. Thompson took charge of all property belonging to them, receiving and paying out various amounts, and filed his final report September 29, 1938. On October 11, 1938, the Clark probate court, on petition of Mrs. Arlege Deaton, made an order removing J. W. Thompson as guardian and appointing Mrs. Arlege Deaton as guardian in succession, and ordered the issuance to her of letters of guardianship upon her making bonds in the sum of $5,000. On the same day she filed the bond and the same was approved by the probate court and letters issued. Mrs. Deaton, as guardian of said minors, filed exceptions to the final report of J. W. Thompson, and on December 6, 1938, the Clark probate court, on hearing of said exceptions, made an order correcting and restating the account of J. "W. Thompson, and ordering and directing said Thompson to pay over to Mrs. Deaton, as guardian in succession, the sum of $2,540 with interest; that the time provided by the order for the payment by Thompson had expired.

Summons was served on the United States Fidelity & Guaranty Company in Pulaski county, Arkansas, and on J. W. Thompson and the Merchants & Planters Bank & Trust Company in Clark county, Arkansas.

The United States Fidelity & Guaranty Company filed a demurrer to the complaint.

. The appellant, Merchants & Planters Bank & Trust Company, appearing for that purpose only, filed its motion to quash service. The court overruled the motion, and the appellant then filed a motion to dismiss, alleging that .it was a corporation organized under the laws of Arkansas with its principal place of business in Clark county, Arkansas; that the complaint does not state facts sufficient to constitute a cause of action against it. It also stated in its motion to dismiss that it was empowered to engage only in a general banking business and is prohibited from becoming surety upon a bond. The court overruled appellant’s motion to dismiss.-

The appellant thereupon filed its separate answer, denying the allegations of the complaint and alleging that it was a banking corporation and expressly prohibited from doing any other kind of business or lending its credit or becoming surety, indorser or guarantor for another; that it did not have power to sign the bond; that the execution of the bond was ultra vires and beyond the power and authority of appellant, and said'bond is void; that the suit is prematurely brought; that the amount due the appellee from J. W. Thompson, if any, had not been determined, and that appellee has no cause of action against the appellant.

Thereafter the United States Fidelity & Guaranty Company filed separate answer.

The plaintiff filed reply to answer of defendant, Merchants & Planters Bank & Trust Company.

On October 3, 1939, the appellee filed an amendment to the complaint, changing the amount sued for to $2,382.11 with interest.

The case was tried before a jury, and a verdict returned under the instruction of the court against J. "W. Thompson in the sum of $2,382.11 with 6 per cent, interest from December 6, 1938. The jury also returned a verdict against the defendant, United States Fidelity & Guaranty Company in the same amount, and also returned a verdict against the Merchants & Planters Bank & Trust Company for the same amount and interest, and judgment was entered • accordingly. Motion for new trial was filed and overruled, and the. case is here on appeal.

No appeal was taken by either Thompson or the •United States Fidelity & Guaranty Company.

Appellant first says that its contentions are as follows:

“First. That the plaintiff had no right to institute a suit in the Pulaski circuit court and have service of process served upon it in Clark county, and that the court below should have granted the motion to quash service of summons as to it.

‘ ‘ Second: That it had no right and power to execute said bond; that its Board of Directors had not authorized the execution of said bond; that the execution of said bond was ultra vires; that the law expressly prohibits a bank from going surety on a bond and that said bond was and is void and that the court below should have granted the motion to dismiss said cause as to it.

“Third: That the plaintiff failed to introduce sufficient proof to entitle her to recover against it and that the court below erred in overruling its motion for a directed verdict at the close of plaintiff's case.

“Fourth: That the court below erred in refusing to permit it to introduce in evidence a certified copy of the order of Clark probate court substituting bond executed by J. W. Thompson, as principal, and United States Fidelity & Guaranty Company, as surety, in place and stead of the bond executed by J. W. Thompson, as principal, and it, as surety.

“Fifth: That the court below erred in refusing to give to the jury instruction No. 1 requested by it, which directed a verdict in favor of said bank.

“Sixth: That the court below erred in a number of ways as is specifically set out in the motion for a new trial and that, as a matter of law, justice and right, said cause as against it should be reversed and dismissed."

In support of its contention, appellant cites and relies on Lingo v. Swicord, 150 Ark. 384, 234 S. W. 261, and also the case of Hoyt v. Ross, 144 Ark. 473, 222 S. W. 705. These cases hold that in order to get service in another county than that in which the suit is pending, the person summoned in the other county must be jointly liable with the person served in the county where the suit is pending.

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Gibson v. Talley
174 S.W.2d 551 (Supreme Court of Arkansas, 1943)

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Bluebook (online)
141 S.W.2d 543, 200 Ark. 828, 1940 Ark. LEXIS 147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merchants-planters-bank-trust-co-v-deaton-ark-1940.