81 F. 27 | U.S. Circuit Court for the District of Western Missouri | 1897
In 1885 the complainant, through James O. Thompson, oí Redalia, Mo., obtained from tbe defendant a loan of $25,000, secured by deed of trust upon real estate. On the maturity of the principal’ of this debt, she obtained, through said Thompson, an extension of the loan for five more years. As the coupons
“Sedalia, Mo., Oct. 3. 1893.
“Beceived of Mrs. M. D. Ilgenfritz five thousand dollars, part payment on loan
held by Mut. Ben. Life Ins. Oo.
J. O. Thompson, Oas.
“$5,000.00.”
On the 5th day of October, 1893, after the receipt of said $5,000, said Thompson wrote to the defendant, stating that complainant desired to make a payment on the principal of said debt, and asking permission, if she did, to reloan the money to some other person. He gave no intimation to the defendant of either of said prior payrnents having been made. On the 9th of October, 1893, the defendant replied as follows:
“We have your favor of the 5th inst., written over the matter of the probable payment about to be made by Mrs. Ilgenfritz on account of the principal if her mortgage. In reply, we would say we prefer, if payment is made by her, that the amount be sent to us. The company does not at present desire to make other loans in your section.”
“Sedalia, Mo., May 4, 1894.
“Mutual Beuefit Life Insurance Company, Newark, N. J.: At what dates did you receive tlie two payments made in 1892 and 1893, aggregating $12,-000.00, on the Malinda Ilgenfritz mortgage on her property In Sedalia? Answer at my expense.
“[Signed]
O. H. Ilgenfritz.”
The defendant not having received said money so paid by complainant, and the principal of said debt becoming due and remaining unpaid, the complainant, Mrs. Ilgenfritz, filed her bill herein, alleging a payment to defendant of $12,000 on the principal of said debt, and making tender of the balance due thereon, praying to have said mortgage satisfied and the whole of the debt declared paid. The defendant has filed a cross bill asking for a foreclosure of the mortgage. The question to be decided by the court is simply whether or not the payments made to the First National Bank of Sedalia were, in law, payments to the Mutual Benefit Life Insurance Company. The payments in question were made to the bank. The checks in the name of M. D. Ilgenfritz, the complainant, were written by her agent, C. E. Ilgenfritz. The one for $7,000 was drawn on the First' National Bank, in favor of said bank. The second one, for $5,000, was drawn on the Citizens’ National Bank of Sedalia, in favor of the First National Bank. Both sums went to the First National Bank, and, without the knowledge or consent of the defendant, were credited by the bank on its books to defendant, and were diverted by the bank to the credit of some other debtor of the bank, with the exception of $5,000 later credited hack to .the defendant. But the entire sum of $13,000 was absorbed by the bank in its business. The evidence not only fails to show that Thompson individually received or appropriated a dollar of the money, but his direct testimony is that he did not The face of this transaction, therefore, is that the $12,000 were paid by complainant to the First National Bank of Sedalia. To entitle her to credit therefor, the burden rests upon her to prove that the bank had authority from defendant to receive it, in the absence of ratification by defendant. There is scarcely a pretense for such a contention. It is not claimed that the bank had any express authority from the defendant to accept the payments. What is there, then, in the evidence to warrant a finding that such authority arose from implication? The only instances shown in which the bank hitherto had acted for the defendant were in collecting for it coupons of interest from Mrs. Ilgenfritz, and on other mortgage bonds; hut in every such instance the coupons were indorsed
“When the instrument is lodged with (he Panic for collection, the bank becomes the agent of the payee or obligee to receive payment. The agency extends no fmi her, and without special authority an agent can only receive payment of the debt clue his principal in the legal currency of the country, or in bills which pass as money at their par value by the common consent of the community. In the case at bar only one bond was deposited with the Farmers’ Bank. That institution therefore was only agent of the payee for its collection. It had no authority to receive payment of the other bonds for him, or on his account. Whatever it may have received from the obligors to be applied on the other bonds, it received as their agent, not as the agent of the obligee. If the notes have depreciated since in its possession, the loss must*32 be adjudged between tbe bank and. tbe depositors. It cannot fall upon tbe holder of the bonds.”
This case further holds that the collecting agent is limited by law to receive for the debt of his principal only that which the law declares to be legal tender, or which, by the consensus of the business world, is considered and treated as money. It would be more than a pleasure to me, personally, if the facts and law of this case permitted me, to follow my sympathies, and relieve this complainant of the hardship of having to pay this money over again, provided she fails to collect it from the bank. But I must follow where the evidence and the law direct. It results that the issues on complainant’s bill are found for the defendant, and the prayer of defendant in its cross bill is granted. Decree accordingly.