Salt Bayou Drainage Dist. v. Futrall

72 F.2d 940, 1934 U.S. App. LEXIS 4735
CourtCourt of Appeals for the Eighth Circuit
DecidedSeptember 4, 1934
DocketNo. 9895
StatusPublished
Cited by3 cases

This text of 72 F.2d 940 (Salt Bayou Drainage Dist. v. Futrall) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salt Bayou Drainage Dist. v. Futrall, 72 F.2d 940, 1934 U.S. App. LEXIS 4735 (8th Cir. 1934).

Opinion

BOOTH, Circuit Judge.

This is an appeal from a judgment in a law case tried io the court, a jury having been duly waived.

The action was one brought by the Salt Bayou drainage district and the commissioners thereof against the receiver of the National Bank of Arkansas.

The complaint alleges that the hank, during the time under consideration, was the duly appointed depository of the district; that as such depository it had received various sums deposited for the credit of the district; that the bank thereafter had been duly placed in the hands of a receiver; that the district had duly proved its claim against the bank in ihe sum of $81,636.04; that the receiver had refused to allow the claim.

Judgment was prayed against the receiver in the sum stated; and that the judgment he declared a preferred claim against the assets of the bank in the hands of the receiver.

The answer of the receiver admits a balance on the books of the bank to the credit of the district in the sum of $13,193.06, after making a set-off; and alleges that the sum mentioned had been classified as a common claim.

An amendment to the answer alleges that one Walter C. Hudson, during the time under consideration, was one of the members of the board of commissioners of the drainage district and its secretary and treasurer; that he was also president of the National Bank of Arkansas; that by virtue of an agreement between Hudson and the other commissioners of (he district, he had borrowed from the district during the time under consideration, amounts aggregating $58,-900; that these sums had not been deposited in said bank; and that the hank never had any right, title, claim, or interest therein.

Trial was had by the court and a jury, resulting in a directed verdict for plaintiff, followed by judgment.

Thereafter the judgment and verdict were set aside and a new trial granted.

A jury was duly waived on the second trial and the ease was tried to the court.

Among the more important facts shown by uneontradicied evidence and bearing upon the origin and nature of the present controversy wore the following: Tlie county treasurers of the respective counties in the district were treasurers of the district; W. C. Hudson was the duly appointed secretary of the district, but was not its treasure}’; the National Bank of Arkansas was ihe duly appointed depository of the district; the county treasurer of Jefferson county (one of the counties in the district) delivered certain checks drawn by her, payable to the Salt Bayou drainage district, to said W. C. Hudson, who, at the time, was president of the National Bank of Arkansas and secretary of the drainage district. The checks represented taxes collected on behalf of the drainage district. These cheeks were receipted for in the name of: the district by W. C. Hudson, treasurer. Another similar check, but payable to W. C. Hudson, treasurer, was delivered by the same county treasurer to W. C. Hudson. The check was indorsed by W. C. Hudson, treasurer. Another cheek drawn by the same county treasurer on the National Bank of Arkansas, and payable to it, was delivered to the assistant cashier of that bank, Mr. Young, for Mr. Hudson.

No part of the moneys represented by these various checks was placed to the credit of the drainage district oil Ihe hooks of the bank. There was no substantial evidence supporting the borrowing agreement alleged in the amended answer.

The court made specific findings covering the foregoing facts and others, in accordance with the request of both parties; it also made the following two additional findings of fact asked by the defendant:

“Although the said W. C. Hudson, the former president of The National Bank of Arkansas, was not shown by the evidence to have been the duly elected and qualified treasurer of the plaintiff Salt Bayou Drainage District of Jefferson and Arkansas Counties, Arkansas, he acted as such, as well as the secretary thereof, at various times from the organization of said district until the suspension of the National Bank of Arkansas on July 23, 1930, and that his actions in so doing were ratified by the Board of Commissioners of said district, and that in so doing he became, in reality, the treasurer of said plaintiff, Salt Bayou Drainage District, as well as the secretary thereof.
“The various checks and items mentioned in the record and set forth in the findings of fact submitted by the plaintiff herein came into the possession of the said W. C. Hudson, the former president of The National Bank of Arkansas, not as the president of [942]*942said bank, but as either the secretary or treasurer of the plaintiff, Salt Bayou Drainage District, and that none of the said checks or items ever came into the custody of the bank or became a part of the assets of The National Bank of Arkansas.”

As conclusions of law, the court found, as requested by defendant, that the funds of the district sought to be recovered (except the amount of $13,193.06) never came into the possession of the bank, and never became part of its assets. Further, that Hudson, at the time of receiving the moneys and items in question, was acting as secretary or treasurer of the district, and not as president of the bank, and that none of the items of moneys so delivered to Hudson ever became part of the funds or assets of the bank.

No objection or exception was taken by plaintiffs to the denial by the court of the conclusions of law submitted by' plaintiffs. No objection or exception was taken by plaintiffs to the allowance by the court of the two additional findings of fact asked by the defendant. No objection or exception was taken by plaintiffs to the allowance by the court of the conclusions of law submitted and asked by defendant. No other equivalent action was taken by plaintiffs.

Judgment was entered on July 25, 1933.

On October 20, 1933, plaintiffs, in connection with their appeal from the judgment, filed assignments of error. In these assignments of error, it is alleged that the court erred in making the two additional findings of fact requested by defendant; erred in denying the conclusions of law requested by plaintiffs; and erred in allowing the conclusions of law requested by defendant.

The main attack of appellants is directed to the two findings of fact made by the court at the request of defendant (appellee). In fact, appellants say in their brief: “There is but one issue in this ease, and that is whether or not Mr. Hudson received the deposits as President of The National Bank of Arkansas or as a member of the Board of Commissioners.”

But the state of the record is such that this court cannot review the question whether the findings of fact are sustained by substantial evidence.

In Wear v. Imperial Window Glass Co., 224 F. 60, 63, this court, speaking by Judge Walter H. Sanborn, announced the rule as follows:

“When an action at law is tried without a jury by a federal court, and it makes a general finding, or a special finding of facts, the act of Congress forbids a reversal by the appellate court of that finding, or the judgment thereon, ‘for any error of fact’ (Revised Statutes, § 1011 [U. S. Comp. Stat. 1913, § 1672, p. 700 (28 USCA § 879)])*. and a finding of fact contrary to the weight of the evidence is an error of fact.

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Bluebook (online)
72 F.2d 940, 1934 U.S. App. LEXIS 4735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salt-bayou-drainage-dist-v-futrall-ca8-1934.