26 A.2d 105 | Vt. | 1942
This case, which by permission of Court has been reargued, presents the question to what extent, if any, the defendant is liable as insurer of an account standing in the names of the plaintiffs at the time the Winooski Savings Bank was placed in the hands of a receiver. The case was tried by the Court and judgment was entered for the defendant, with exceptions to the plaintiffs. The findings, as far as here material, disclose that the Winooski Savings Bank was an insured bank under the terms of the act by which the defendant was created. *381 Prior to December 13, 1937, Connor had on deposit in that bank in account No. 11202 the amount of $8146.75. On that day he transferred from this account $3200.00 to another account, No. 29567 in favor of "John Connor or sister, Marie Young, or survivor." Mrs. Young is the other plaintiff in this action. At the time of the transfer it was the intention of John to make a gift to his sister. On the date of the transfer the treasurer of the bank wrote Connor a letter stating that the transfer had been made and that in the event of Connor's death, under the present Vermont law, the money on the new account would go to his sister. The deposit card No. 29567 was signed by John but not by Mrs. Young. Since the date of the transfer, at all times material, Connor has retained possession of the deposit book on this latter account and neither he nor his sister have made any withdrawal from it. Prior to December 13, 1937, Connor had told Mrs. Young that he was going to open an account in their joint names and subsequently to that date he informed her that he had done so. After the creation of the joint account it was the understanding of Mrs. Young that the money was "just as much mine as his and his just as much as mine." On July 28, 1938, the Winooski Savings Bank was placed in the hands of the defendant as receiver and the latter has paid Connor the sum of $5000.00, being the amount in deposit No. 11202 and $3.79 on account of account No. 29567. Proper claim has been made by Connor on the defendant for payment of the balance in account No. 29567.
Section 12 B of the Federal Reserve Act, as added to by the act of June 16, 1933, C. 89, sec. 8, 48 St. at L. 168, and amended by subsequent acts, 12 U.S.C.A. sec. 264, provides for the creation of a Federal Deposit Insurance Corporation. The material portions of this act as set forth in 12 U.S.C.A. sec. 264 are as follows: In subsection (a) it is stated that the Corporation shall insure, as hereinafter provided, the deposits of all banks which are entitled to the benefits of insurance under this section. By subsection (c) which defines various terms used in the act, in paragraph 12 it is provided that "deposit" means the unpaid balance of money or its equivalent received by a bank in the usual course of business and for which it has given or is obligated to give credit to a commercial, checking, savings, time or *382 thrift account, or which is evidenced by its certificate of deposit * * *." By paragraph 13 of subsection (c) it is provided that, "The term `insured deposit' means the net amount due to any deposit or deposits in an insured bank (after deducting offsets) less any part thereof which is in excess of $5000.00. Such net amount shall be determined according to such regulations as the board of directors may prescribe, and in determining the amount due to any depositor, there shall be added together all deposits in the bank maintained in the same capacity and the same right for his benefit either in his own name or in the names of others, except trust funds which shall be insured as provided in paragraph 9 of subsection (h) of this section." In subsection (1) paragraph 6 it is provided that in any case where the Corporation is not satisfied as to the validity of a claim for an insured deposit it may require the final determination of a court of competent jurisdiction before paying such claim.
The plaintiffs claim, in effect, that under the findings they are entitled to a judgment for the full amount of the joint account on the theory that as a result of the transfer they became joint owners of that account, which was not maintained by Connor in "the same capacity and the same right" as his individual account. The defendant in support of the judgment claims, in substance, that the transfer has no legal effect because there was no delivery of the deposit book of the joint account to Mrs. Young and thus no completed gift of any interest in the joint account to her so that both accounts are in fact and in law those of John Connor only. Both parties take the position in their briefs and in oral argument that the answer to this question depends largely, if not wholly, upon the construction to be given to our holdings in Rice et al., Exrs. v. BenningtonCounty Savings Bank,
It is true that the above quoted statements were not necessary for the decision in the Patch case under the issues presented by the pleadings but it is equally true that they set forth correctly the purpose of the statute and the results flowing therefrom. No limitations on the conclusive presumption raised by the statute are stated or indicated in the opinion in that case confining such presumption to the persons named in the statute. The quoted statements were applied to the factual situation there presented which was similar, as far as the point here under discussion is concerned, to that in the present case. From these statements, and especially the sentence last above quoted, it is apparent it was considered that the presumption was not restricted in its effect to such named persons but also applied in its consequences to third persons. A reasonable construction of the statute discloses that no such restriction was intended by the Legislature.
In general the validity of a gift is a question entirely between the donor and those claiming under him, and the donee. 28 C.J. 655, sec. 54. If a gift is valid as between the donor and donee no third person can complain unless in some manner his rights have been illegally infringed because of the gift. Neither the language of the statute nor any reasonable inference to be drawn therefrom warrants the holding that the Legislature intended therein to nullify or restrict the above common law rules applying to gifts generally.
It follows that the gift by Connor to his sister of an interest in the joint account was as complete and perfect as it would have been under the common law, as recognized by us, if there had been a delivery of the pass book by him to her. By virtue of the statute she became an owner with him of this account. It is apparent that the Legislature by including words of survivorship in the statute intended to attach the attributes of a joint tenancy rather than those of a tenancy in common to the absolute joint account which it created. No fraud is claimed in connection with the creation of the joint account. As far as appears it was made in good faith in the ordinary course of business. The fact that the interest of Mrs. Young in the account came to her as a gift does not relieve the defendant from its liability as insurer. Federal Deposit Insurance Corporation v. Barton, 10 Cir.,
The case of Moskowitz v. Marrow,
The defendant concedes that if we should hold as we have on the question of joint ownership the joint account is insured under the Federal act separate from the individual deposit of Connor. Consequently the plaintiffs are entitled to recover from the defendant the amount of the joint account subject to the terms of that act. The findings do not show the exact amount of the account as of the date that the defendant became liable as insurer to pay the same. Thus the case must be remanded for a determination of this amount. In determining the amount due an adjustment must be had for the payment heretofore made by the defendant to Connor on the joint account.
Judgment reversed and cause remanded for the purpose ofascertaining the amount of the joint account, in accordance withthe views herein expressed, at the time the defendant becameliable as insurer for payment of the same under the act ofCongress incorporating the defendant. When this amount has beendetermined let judgment be entered for the same in favor of theplaintiffs, without costs below or in this Court. The defendantto be fully protected in the judgment order in its subrogationrights as set forth in said act. *386