286 Mass. 570 | Mass. | 1934
This is a petition against the commissioner of banks to establish an account in the savings department of the Exchange Trust Company (hereinafter called the bank) or in the alternative, if the petition be denied, to establish a special deposit in the commercial department of said bank. The case was heard after the completion of the pleadings and the filing of a master’s report, which was confirmed, by a single justice of this court, who ruled against the granting of the petition on the principal ground of relief sought and ordered a final decree to be entered in accord with his rulings, which are set out in the record. The case is before this court on appeal of the petitioner from said final decree.
On November 23, 1918, one Thornton B. Lewis left with the bank for safe keeping three “Third Liberty Loan Bonds” of $100 each; on December 24, 1918, he deposited the sum of $100 in the savings department of the bank and received a pass book No. 61023; thereafter he left with the bank for safe keeping, on September 23, 1919, three “Victory Liberty Loan Bonds” of $100 each; on April 27, 1920, two “Third Liberty Loan Bonds” of $100 each and one “Third Liberty Loan Bond” of $500; and on September 30, 1920, three “Third Liberty Loan Bonds” of $100 each. Upon receipt of each of said bonds the bank gave said Lewis a
It is plain that the authority of the bank, as agent of Thornton B. Lewis or as bailee of the bonds of Thornton B. Lewis, was suspended during the insanity of Lewis and terminated upon his death, although the bank had no means of knowing that Lewis had died when it performed the agreement which it was required to perform but for Lewis’s incapacity and death. Brown v. Cushman, 173 Mass. 368, 372. Long v. Thayer, 150 U. S. 520. Am.
On September 14, 1928, the bank presented to the Federal Reserve Bank of Boston for redemption the remaining bonds, which were to mature the next day, that had been deposited with the bank by said Lewis in 1918 and 1920. The principal and interest due and payable on these remaining bonds amounted to $1,300 principal and $27.67 interest. The Federal Reserve Bank of Boston credited said sum of $1,327.67 to the commercial account of the Exchange Trust Company. The commercial department issued its check for $23,133.40, which included the sum of $1,327.67, accompanied by a deposit slip to the savings department to be deposited to the Thornton B. Lewis account, and the teller of the savings department stamped the deposit slip as follows: “Bonds matured September 15, 1928 and credited to the above account. Teller.” He added in his handwriting the initials “F. X. B.” and the figures “$1,327.67.” On the following day, September 15, 1928, Robert E. Fay, vice-president of the bank, notified the savings department that the sum of $1,327.67 had been improperly deposited in that department and caused the
Decree affirmed with costs.