Tolleson v. People's Savings Bank

11 S.E. 599, 85 Ga. 171
CourtSupreme Court of Georgia
DecidedApril 14, 1890
StatusPublished
Cited by11 cases

This text of 11 S.E. 599 (Tolleson v. People's Savings Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tolleson v. People's Savings Bank, 11 S.E. 599, 85 Ga. 171 (Ga. 1890).

Opinion

Simmons, Justice.

On the 26th of January, 1889, the People’s Savings Bank, a corporation under the laws of Alabama, presented to the judge of the superior court its petition, wherein it alleged that the Mercantile Banking Company, a corporation in the city of Atlanta, was indebted to the petitioner in the sum of $781.84, which was due, and payment of which had been demanded and refused; that of this indebtedness $505 was for one State of Alabama six per cent, bond which the petitioner had purchased for the defendant at its instance and request, paying cash therefor; and that the remainder of the indebtedness was a balance due on collections made by the defendant on account of the petitioner. It was further alleged that by reason of false representations, fraud and deception, the- petitioner was induced to credit the defendant and buy for it said State bond; that the bond was bought for and went into the hands of Colvin, who gave the defendant his note therefor, and that the note had not yet become due,but that the defendant claimed to have sold the note, which was denied by the petitioner. It was further alleged that Tolleson and Richards, the alleged president and cashier of the defendant, were the original and only stockholders of said corporation. The petition charged that the defendant owed a large amount of money to its correspondents for collections made and not remitted for; that it was insolvent and was preparing to dispose of its assets by transfer or otherwise, to the injury of the petitioner and other creditors; and that there was an immediate and pressing necessity for the appointment of a receiver to take charge of all the defendant’s assets and hold the same for the benefit of creditors; that the only available assets of the defendant were its office furniture and safe, but that the defendant received by every mail large remittances in collections which it failed to apply to its [174]*174creditors. The prayer of the petition was, that a temporary receiver he appointed to take charge of the assets and all the property of the defendant, books of account, choses in action, credits of every kind, and hold the same until the hearing; that injunction issue, restraining the defendant, its agents and officers, from interfering in any manner with the assets, disposing Qf the same or making any collection thereof, and that they be required to turn over to the receiver to be appointed all of the defendant’s assets and property of every kind; and that the petitioner have a decree turning over to it the proceeds of said note to Colvin, if the same could be done, and if not, that the petitioner have judgment for its entire debt against the defendant.

When this petition was presented to the judge of the superior court, he ordered that the defendant show cause on the 80th instant at nine o’clock A. m., why an injunction should not issue and a receiver be appointed as prayed for in the bill; and he also appointed a temporary receiver to take charge of all the assets of the defendant, to hold until the further order of the court; and that the defendant turn over all the assets belonging to it in accordance with the prayer of the bill. On the 28th of January the receiver reported to the court that he had demanded .of Tolleson, the president of the defendant corporation, possession of all the assets and property of every kind belonging to it; that Tolleson stated that he was-in possession of everything, or words to that effect, but.only tuimed over a small number of notes and bills in the main past .due, of small amounts and of nominal value, and the books of the corporation; and that he failed to turn over any money or property representing the capital stock, or make any excuse for such failure. He further represented that to the best of Ms knowledge, information and belief, Tolleson had not in good faith complied with the order of the court [175]*175in turning over the assets of the defendant to him ; and he stated his reasons for this belief. He prayed that an order might issue, requiring Tolleson to show cause instanter why he should not be attached for contempt of the order of the court in refusing to turn over the assets of the corporation to him as receiver. On the same day the judge granted an order that Tolleson show cause before him, at two o’clock in the afternoon of that day, why he should not turn over all the assets of the defendant corporation. This order was served upon Tolleson at ten o’clock on the morning of that day. When the hour for the hearing arrived, Tolleson appeared in person and answered under oath that he neither had then, nor did he have at the time said rule was served upon him, any money, property or effects belonging to the Mercantile Banking Company in his possession, custody or control. After the hearing upon the rule, the judge passed the following order:

“On hearing the above stated motion of said receiver, and on consideration of the evidence, it is ordered that J. R. Tolleson he and he is hereby committed to the common jail of Fulton county, there to remain until he complies with the order of the court heretofore made with respect to the delivery of the- assets of the defendant corporation to said receiver.”

On the next day (the 29th), the plaintiff’ filed an amendment to its original petition, setting up other facts which it is unnecessary to mention now. Another amendment to the original petition was filed, making the Prairie State National Bank a party plaintiff'; and .in this amendment other allegations of indebtedness were made, of which it is unnecessary to say more than that the amendment prayed that Tolleson be made a party to the petition, and he was accordingly made a party defendant. In April 1889, other creditors had themselves made parties to the original petition, and alleged indebtedness to them. Under the order of the [176]*176judge, Tolleson was committed to the common jail of Pulton county, and was still detained there when, on the 9th of November, he filed his petition to the judge of the superior court, setting out in substance the facts already detailed, and asking that he be discharged from custody, on the following grounds :

(1) “Because the receiver’s prayer was that petitioner show cause why he should not be attached for contempt in not turning over the assets. The order on that prayer was, not that he should show cause why he should not be attached for contempt, but that he show cause why he should not turn over the assets; and the judgment was that he be committed to jail until he complied with the order of January 28th. He was brought into court to have it determined whether he should turn over the assets, and was sent to jail for not having done it before that time. He is now confined for failure to comply with an order that was made before there was any attempt to make him a party to the suit.

(2) “Because the proceedings under which he was committed to jail and is now confined, were brought by the receiver, and not by the plaintiff'.

3. “There is no averment in the original petition in the ease, or in the side petition of the receiver, that this petitioner had in .his custody or control any assets of the defendant corporation ; nor is there any description of such assets nor what they are, nor that he has failed to turn them over and is therefore in contempt. There is no judgment of the court that there are any assets, or what they are, or that petitioner had them ; nor was he ordered to produce them, nor is there a judgment that he could produce them and did not.

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Bluebook (online)
11 S.E. 599, 85 Ga. 171, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tolleson-v-peoples-savings-bank-ga-1890.