Mulcay v. Augusta Fire Department Credit Union

142 S.E.2d 231, 220 Ga. 805, 1965 Ga. LEXIS 638
Supreme Court of Georgia·Decided April 8, 1965·No. 22895·Published

Opinion

Candler, Justice.

The Augusta Fire Department Credit Union, a Georgia corporation, filed a suit in the Superior Court of Richmond County against Daniel E. Mulcay, Jr. on January 29, 1963. Its petition as amended alleges in substance: The defendant was its secretary and treasurer from 1937 until his removal on January 12, 1963. As such officer he had custody of the money and all other assets of such credit union and was also custodian of its books and records. He was authorized to make disbursements of its funds for the purpose of carrying on its business. During the period of his service as such secretary and treasurer, he wrongfully abstracted, embezzled and converted to his own use $157,092.64 of the credit union’s funds. As such officer, it was his duty to make an annual report to the credit union of its financial condition and a like semi-annual report to the Superintendent of Banks of the State of Georgia. He kept inaccurate records and made false reports to the credit union and to the Superintendent of Banks respecting its financial condition. He is concealing assets of the credit union at his home in Richmond County and at other specified places. He is insolvent and is concealing certain books, record, and cash assets of the credit union. The prayers are for process, a judgment against him for the amount of the credit union’s money he has embezzled and wrongfully converted to his own use, the appointment of a receiver of his property, a temporary and permanent injunction restraining and enjoining him from disposing of his property. The petition was verified by C. J. Smith, president of the credit union. The Superintendent of Banks for the State of Georgia, filed a certificate with the Clerk of the Superior Court of Richmond County on February 18, 1963, in which he gave notice that he had taken possession of the credit union’s assets for the purpose of liquidation. On the filing of such certificate the petition was amended so as to have it allege that the suit was brought by “Augusta Fire Department Credit Union, by and through W. D. Trippe, as Superintendent of Banks for the State of Georgia,” later succeeded by W. M. Jackson as superintendent of Banks. Following the allowance of this amendment, the defendant moved to dismiss the amended petition on the ground that petitioner had no right to further [806] prosecute its suits against him since the certificate filed by the Superintendent of Banks operated to vest in him sole and exclusive right to pursue any remedy or remedies the petitioner may have had before such certificate was filed. The motion was overruled and the defendant excepted to that order. The defendant demurred generally to the amended petition on the grounds that it set forth no cause of action against him, it is without equity, and it alleges no facts which would authorize the appointment of a receiver. Special demurrers were also interposed to several paragraphs of the petition as amended. All of these demurrers were overruled and the defendant excepted to that judgment. By his answer, the defendant denied that he had embezzled or converted to his own use any money or property belonging to the credit union or that he was concealing any of its assets. He denied that he was insolvent and alleged that there was no necessity for receivership. Paragraph 17 of his answer avers that if the petitioner ever had a cause of action against him, its right to prosecute it terminated when the Superintendent of Banks filed his certificate of possession for liquidation purposes in the office of the Clerk of the Superior Court of Richmond County. The petitioner demurred and moved to strike this paragraph of the defendant’s answer on the ground that the Superintendent of Banks under the law of this State can, in the name of the credit union continue to prosecute a pending action such as this one. The motion to strike this paragraph of defendant’s answer was sustained and the defendant excepted to that order: Held:

1. The petition in this case was brought against Daniel E. Mulcay, Jr. and the process attached thereto directed the Sheriff of Richmond County to perfect service on him. A deputy sheriff of that county served the defendant a copy of the petition and process personally but his entry of service shows that he served “Daniel E. Mulcay.” The petitioner filed a motion to allow the deputy sheriff to amend his entry of service so as to show that he had served “Daniel E. Mulcay, Jr.” This motion was granted and the deputy sheriff’s entry of service was accordingly corrected by him. The defendant excepted to this order and also to an order overruling his motion to quash the amended entry of service. These assignments of error are without merit since the court may always permit an officer thereof, such as a deputy sheriff, to [807] amend and correct his return of service so as to make it speak the truth. Code § 24-2815. Marsh v. Phillips, 77 Ga. 436 (2).

2. The allegations of the petition in the instant case were neither verified positively nor shown to be true by other satisfactory proofs as required by Codie § 81-110. The petitioner’s president in verifying the petition swore that its allegations were true “to the best of his knowledge and belief” and it is argued in the brief of counsel for the plaintiff in error that the petition was for want of proper verification or other satisfactory proofs, fatally defective and should have been dismissed on his general demurrer. This contention is not sustainable. Failure to positively verify a petition like the present one is an amendable defect and a special demurrer specifically attacking the sufficiency of the petition for want of proper verification should have been timely interposed thereto. Kilgore v. Paschall, 202 Ga. 416 (43 SE2d 520); Carter v. Hayes, 214 Ga. 782 (2) (107 SE2d 799).

3. There is clearly no merit in the contention that the amended petition failed to state a cause of action for the relief sought. It alleges that the defendant had embezzled and wrongfully converted to his own use a.large sum of money belonging to the petitioner and that he was insolvent. A petition which states a cause of action for any of the substantial relief sought is not subject to general demurrer. Waycross Military Assn. v. Hiers, 209 Ga. 812 (1) (76 SE2d 486).

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Mulcay v. Augusta Fire Department Credit Union, 142 S.E.2d 231, 220 Ga. 805, 1965 Ga. LEXIS 638 (Ga. 1965).

142 S.E.2d 231 (Mulcay v. Augusta Fire Department Credit Union) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Carter v. Hayes
107 S.E.2d 799 (Supreme Court of Georgia, 1959)
Waycross Military Association v. Hiers
76 S.E.2d 486 (Supreme Court of Georgia, 1953)
Kilgore v. Paschall
43 S.E.2d 520 (Supreme Court of Georgia, 1947)
Marsh v. Phillips, Jr. & Co.
77 Ga. 436 (Supreme Court of Georgia, 1886)
Shannon v. Mobley
143 S.E. 582 (Supreme Court of Georgia, 1928)
Ferris v. Union Savings Bank
165 S.E. 450 (Court of Appeals of Georgia, 1932)