Weinreich v. Franklin Savings & Loan Ass'n

27 Ohio Law. Abs. 198, 1938 Ohio Misc. LEXIS 1268
CourtOhio Court of Appeals
DecidedJanuary 24, 1938
DocketNo 1481
StatusPublished
Cited by1 cases

This text of 27 Ohio Law. Abs. 198 (Weinreich v. Franklin Savings & Loan Ass'n) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weinreich v. Franklin Savings & Loan Ass'n, 27 Ohio Law. Abs. 198, 1938 Ohio Misc. LEXIS 1268 (Ohio Ct. App. 1938).

Opinion

OPINION

By BARNES, PJ.

The above entitled cause is now being determined on appeal on questions of law from the judgment of the Court of Common Pleas of Montgomei-y County, Ohio.

In the trial court defendant interposed a demurrer to plaintiff’s petition on the ground that the same did not state a cause of action, which demurrer was sustained. The plaintiff, not desiring to plead further, judgment was rendered for the defendant, plaintiff’s petition dismissed and judgment entered for costs. The sole and only question for our consideration is that of the sufficiency of the petition.

The allegations of the petition, omitting the formal parts, are in substance as follows :

In the first paragraph it is alleged that the defendant is a corporation duly organized and existing, with its place of business at Dayton, Ohio, and is a building and loan association authorized by law to receive deposits of money.

The second paragraoh alleges that on or about September 29, 1933, the then Superintendent of Building and Loan Associations of the State of Ohio, ordered the liquidation of the defendant association, in accordance With §687-21 GC; that following such order the Board of Directors of the association ordered all persons having claims against the association to file proof of claim for allowance.

In the third paragraph it Is further stated that plaintiff was a depositor and creditor of the association, and that on or about October 3, 1934, in compliance with the above order, plaintiff filed a proof of claim in the sum of $502.67, which claim the association, with the approval of the Superintendent, approved and there was issued to plaintiff a certificate of claim, copy of which is attached to th- petition; marked Exhibit A.

The fourth paragraph of the petition, states that during the period of liquidation the Board of Directors of the association, with the approval of the Superintendent and the Common Pleas Court, declared and paid a total dividend of 35% of the face amount of the certificate of claim in the sum of $175.93, leaving a balance due and owing to plaintiff of $326.74, together with interest, which amount plaintiff claims is due and payable.

We set forth the fifth paragraph of the petition in full:

“Plaintiff further says that on or about December 23, 1936, Wm H. Kroegov, the duly appointed, quaiilled and acting Superintendent of Building and Loan Associations of the State of Ohio, unlawfully turned back the control and ownership of all the assets of the defendant association co its Board of Directors, without making any provision for the payment of claims of creditors, both as to principal and interest, which turn back this plaintiff believes is prejudicial to the rights of all of the creditors.”

We also set forth in full the sixth paragraph of the petition:

“Plaintiff further says that this Court should take jurisdiction over the assets of the defendant association for the purpose of protecting the rights of all of the creditors of defendant association; and that a Master Commissioner be appointed to take evidence to determine the true condition of the defendant association and to determine the right of this plaintiif and all other creditors to receive payment of their claims, together with lawful interest at the rate of 6%.”

In the seventh paragraph it is further-stated that plaintiff made due demand of the defendant association for payment of the amount due him, together with interest, but that the association, through its officers, and agents refused to make payment and will continue to refuse to pay [200]*200any claim of creditors for the principal amount due and interest, although olaintiff believes that defendant association has sufficient assets with which to pay ail creditors.

The eighth paragraph is an allegation in substance that the actic is brought as a class suit and is for the purpose of preventing a multiciplichy of suits.

The ninth paragrph of the petition is set forth in full:

“Plaintiff further says that the Board of Directors of defendant association are in possession of the assets and property of defendant association and are exercising ownership and control over all of the assets and that the Board of Directors ol defendant association will operate and manage the .property of defendant association without regard to the prior rights of this plaintiff as creditor and all other creditors, and to their (creditors) detriment and prejudice; that the defendant association is unable to meet its matured obligations, that a number of suits may be filed and judgments obtained and executions issue, all to the detriment of all the creditors. That the defendant association will retire certain stock obligations in exchange for assets of the association and retire and exhange assets, which wifi cause a preference, all to the detriment and prejudice of all of the creditors, and to prevent such actions on the part of the Board of Directors, and to protect the interest of all of the creditors, this court should make such orders and should control all matters relating to the sale, exchange or disposal of any assets, as would best protect the interest of all creditors, until such time as the claims of creditors, as found due by this Court, are fully paid and satisfied.”

The tenth paragraph contains the prayer of the petition and asks the following relief: «Judgment in the sum of $326.74, together with interest at the rate of 6% from September 29, 1933, to date, less a credit of interest on payments of dividend amounting to 35%; a finding and judgment as to the amounts due to all other creditors both ss to principal and interest; the appointment of a Master Commissioner to hear and determine the correct and true condition of defendant association and to determine the rights of this plaintiff and all other creditors to a finding and judgment against the defendant ^association both as to principal and interest; for an order of the court taking jurisdiction over the assets of said association and to make such orders and findings relating to the sale, exchange and disposition of assets of defendant association as will best protect the interests of all the creditors and to prevent the dissipation of the assets to the detriment of the creditors, and conserve the assets for the benefit of all creditors, and for all other relief, Both in. law and equity, to which plantiff and others similarly situated are entitled in the premises, and for costs.

The determination of the sufficiency of the petition requires an examination of the Eikenbary law and other cogent setions as contained in §§687 to 687-23 GC, inclusive, together with the decisions of our courts in construing various sections of the act.

The Supreme Court of Ohio, in 1931, rendered a decision in the case of State, ex Bettman, Attorney General v Court of Common Pleas of Franklin County, et, 124 Oh St 269. This was an original action in the Supreme Court, seeking a writ of prohibition restraining the Court of Common Pleas from appointing a receiver for the Columbian Building and Loan Association in an action then pending in that court wherein a depositor-creditor was plaintiff and the Columbian defendant. The action was brought as a class suit on behalf of the plaintiff and all persons similarly situated. The action sought an accounting and the appointment of a receiver. The substantive part of plaintiff’s petition in the Common Pleas Court was set out rather fully in the action brought in the Supreme Court.

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153 N.E.2d 335 (Ohio Court of Appeals, 1957)

Cite This Page — Counsel Stack

Bluebook (online)
27 Ohio Law. Abs. 198, 1938 Ohio Misc. LEXIS 1268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weinreich-v-franklin-savings-loan-assn-ohioctapp-1938.