Richter v. Farmers' State Bank

195 N.W. 552, 50 N.D. 244, 1923 N.D. LEXIS 94
CourtNorth Dakota Supreme Court
DecidedOctober 13, 1923
StatusPublished

This text of 195 N.W. 552 (Richter v. Farmers' State Bank) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richter v. Farmers' State Bank, 195 N.W. 552, 50 N.D. 244, 1923 N.D. LEXIS 94 (N.D. 1923).

Opinion

[251]*251' Statement.

Bronson, Oh. J.

This is an action to recover damages for malicious prosecution. The jury returned a verdict for $500 in plaintiff's favor. From the judgment entered thereupon, and from an order denying judgment non obstante, or, in the alternative, for a new trial, defendants have appealed. The facts arc: — Plaintiff was cashier of defendant bank at Forbes, North Dakota, from February, 1917, to about January 1st, 1920. As such, he managed the bank and conducted in connection with the bank a sort of real estate, insurance and loan business out of which he received commissions in addition to his salary. In this business he used his own automobile under an oral agreement with the directors, as he claims, that the bank should pay its running expenses. In the fall of 1919 plaintiff sold his stock in the bank and tendered his resignation effective January 5th, 1920. On December 8th, 1919, plaintiff made to himself an expense check for $750.86 with the notation, “for car expense for three years, less $150 drawn out.” On December 31st, 1919, he credited the amount of this check to his own account in this bank. As defendants claim in the testimony, this [252]*252was clone without any bill being presented, to the board of directors, without their knowledge or consent, and after the examining committee of the board of directors had adjourned. Plaintiff, in his testimony, admitted making a mistake of $100 in this expense account and other minor mistakes in calculations. After severing his connections with the bank, plaintiff went to his former home in Mapleton, Minnesota, with the knowledge of defendant’s officers. He left in the bank a checking account, and with the bank, certain promissory notes belonging to his father. He took with him certain certificates of deposit issued by the bank to him. He then was the owner of certain real property in Dickey county, North Dakota. In March and October, 1920, plaintiff visited Forbes on business matters, called at the bank and talked with the officers of the bank. Again, in May, 1921, plaintiff visited Forbes and talked with officers of the bank. It appears that the directors began to investigate the actions of plaintiff as cashier. A^ stockholders and directors mootings in July, 1921, action was taken to continue such investigations. Certain notes which plaintiff had discounted were questioned. In correspondence had, plaintiff denied any liability thereon. During this year, plaintiff was sued by the bank to recover for bank funds claimed to have been wrongfully appropriated in subscribing to stock in a certain electric-light company. This action reached this court and was determined adversely to the bank’s contentions. See Farmers State Bank v. Richter, 48 N. D. 1233, 189 N. W. 242. Later, it appears that the bank officers and directors determined that the facts disclosed warranted proceedings against plaintiff for the embezzlement of the proceeds of the expense check for $180.86. The state’s attorney was consulted. He authorized the issuance of a criminal complaint charging the plaintiff with such embezzlement. Then, the plaintiff was at his home in Mapleton, Minneapolis. Accordingly, 'papers for the extradition of plaintiff were presented to the Governor by defendants’ officers and directors. In these papers, such officers and directors made affidavit to the effect that plaintiff left this state secretly and was a fugitive from justice in Minnesota. Extradition was awarded and plaintiff was thereby returned to this state. Upon the criminal complaint issued, a full preliminary hearing was had in February, 1922, before a police magistrate, who, finding the existence of probable cause, bound the [253]*253defendant over to the district court to answer for the crime alleged. In February, 1922, a demand was served on plaintiff to refund $750.8(5, the amount claimed to have been embezzled, and also other sums aggregating some $8,000. After the preliminary hearing the bank brought action against plaintiff to recover such amounts. Plaintiff was arrested under arrest and bail proceedings. He furnished bail. This action was tried in October, 1922, and a verdict returned in the bank’s favor for $325. In March, 1922, after arraignment and plea of not guilty by this plaintiff, trial of the criminal action was had in the district court. After the state had rested, the then defendant moved the court for an advised verdict of acquittal upon the ground that the evidence was insufficient to establish any embezzlement. A colloquy then took place between counsel and the court. The state asked permission to reopen the case so as to introduce further proof. This motion was granted and an adjournment taken. After the court reconvened, the Slate’s Attorney frankly stated to the general effect that he did not believe a certain fact could be shown; that he did not believe the matter should go to the jury; and that the State moved that the case be dismissed. The court thereupon stated, “the motion of the State will be granted and the action will be dismissed.” The court inquired whether the bondsmen should be exonerated. The State’s Attorney replied that the bondsmen should be exonerated. The then defendant’s counsel stated that defendant, preferred a verdict of acquittal. Then the court inquired whether defendant objected to the motion. His counsel replied that defendant did not object but he would like to have a verdict of acquittal.' Then the court said, — “I feel that the State has acted very fairly in this matter, realizing that they are here to do their public duty and not to prosecute anybody who may be innocent, and the fact that they have voluntarily come in here and asked the court to dismiss the action is an acquittal at the hands of the State and court and the court will make the order that the action be dismissed.” In April, 1922, tliis action was instituted to recover $50,000 damages. Defendants, in separate answers, alleged misappropriation of the expense check for $750.8G; their full and bona fide statement of all the facts to the State’s Attorney and to an attorney; the advise of attorneys and the issuance of the criminal complaint and their action without malice and in good faith to protect the property of the bank. The trial [254]*254extended over a week and has produced a voluminous record. The facts concerning the dismissal of the criminal ease were established by the testimony of the official court reporter and by his transcript of such proceedings. Plaintiff also introduced the minutes of the trial judge, as follows: — “Tried to jury; not guilty.” Plaintiff also sought to introduce the minutes of such proceedings as made by the clerk of court at the trial. The court refused to receive the same in evidence. The court, however, stated that it was apparent from the record and what the clerk said that there was no verdict and that the case was dismissed on the motion of the State’s Attorney; that they would have to consider it in that light. During the course of the trial various newspaper articles concerning the arrest of plaintiff upon the charge of embezzlement were received in evidence. These articles were in the nature of news items. Some were published in newspapers within the state and and some in newspapers in Minnesota. No attempt will be made to state further in extenso the evidence at the trial. At the close of the trial, defendant made a motion to direct the verdict. The trial court denied the motion accompanied with the request that a motion be made thereafter either for judgment non obstante or for a new trial.

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Related

Root v. Rose
72 N.W. 1022 (North Dakota Supreme Court, 1897)
Shong v. Stinchfield
47 ND 495 (North Dakota Supreme Court, 1921)
Farmers State Bank v. Richter
189 N.W. 242 (North Dakota Supreme Court, 1922)

Cite This Page — Counsel Stack

Bluebook (online)
195 N.W. 552, 50 N.D. 244, 1923 N.D. LEXIS 94, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richter-v-farmers-state-bank-nd-1923.