180 So. 650 | La. Ct. App. | 1938
The issues and facts in these cases were accurately and clearly stated in our opinion on the original hearing (172 So. 546), and a repetition of them here is deemed unnecessary.
On the former hearing we held that, in view of the provisions of Act No.
These cases, in our opinion, clearly provide a situation where the bank has received checks "for collection and remittance or delivery to its principal and not for deposit." Consequently, we think the provisions of Act No.
In the case of In re Hibernia Bank Trust Co., Pan-American Life Ins. Co., Intervener,
The decision in the Pan-American Life Insurance Company Case was referred to and approved in Re Interstate Trust Banking Company,
Our holding in the instant cases does not appear to be in conflict with the above-cited authorities. Here the bank in its capacity of collecting agent was obligated to collect the funds "for remittance or delivery" to its principal, the tutor bank, for investment, and it possessed no authority whatsoever to deposit them.
In the opinion on the original hearing we stated and held that the minor Ora Brandon was entitled to be paid the penalty, in the form of interest, provided for in article 347 of the Civil Code, because of the bank's failure to invest the minor's revenues; and a preference payment of it was decreed. The penalty, we think, was properly imposed, but we are now of the opinion that it is not a privileged claim. The imposition of the interest penalty results by reason of the bank's neglect, in its capacity of tutor, to invest the funds of the minor, and not because of its failure, as a collecting agent, to remit the collected funds. Act No.
Accordingly, our former decrees are amended to the extent that the interest penalty therein ordered shall be paid as an ordinary claim instead of by preference, and as thus amended such decrees are reinstated and made the final judgments of this court.