306 Mass. 313 | Mass. | 1940
The plaintiff, in this action of contract or tort, seeks to recover money which she alleges was wrongfully withdrawn by the defendant from a joint account deposited with the defendant and standing in her name and that of her husband. The case was heard upon an auditor’s report and oral evidence. The plaintiff excepted to the direction of a verdict for the defendant.
The plaintiff and her husband opened a joint account with the defendant on April 17, 1928. Each of them signed a joint account card which read: “Eloise W. Sawyer or F. H. Sawyer Either party to sign checks and in case of the death of either one the survivor is entitled to draw all the money or any part thereof.” On September 19, 1928, and on December 28, 1928, and at other times thereafter until this joint account was closed in March, 1932, Sawyer purchased certain securities through Gordon, who had general instructions from Sawyer “to buy for him anything he thought good and charge the same to said joint account.” Sawyer did not draw any check for the purchase of these securities but permitted them to be paid for by a charge slip transmitted to the defendant by an agent of the Shawmut Corporation. The plaintiff had but little money in the joint account after the December purchase. Her principal complaint is based upon the withdrawals for the purchases in September and December, 1928. The plaintiff learned of these purchases of September and December, 1928, in April, 1929; and in May, 1929, she demanded of Gordon that he restore to the account the money which she had contributed to the account. She made no request of her husband for the stock. She did not request him to sell the stock and turn the proceeds into the account. The stock could have been sold for at least its cost until August 1, 1929. The present action was commenced on December 24, 1934.
The joint account card, which the plaintiff and her husband signed at the time the joint account was opened, constituted a contract between them and the bank and established their rights in relation to the bank, irrespective of the interest either may have had in the account or of whatever rights therein they might have had between themselves. Kentfield v. Shelburne Falls Savings Bank, 273 Mass. 548. Barnes v. Chandler, 277 Mass. 395. Castle v. Wightman, 303 Mass. 74. One of the terms of the contract was that either party might withdraw the account or any part of it, and the bank
The whole or any part of the joint account could be withdrawn by the individual check of either the plaintiff or her husband. That authority came from the contract of deposit, which expressly provided that "either party [was] to sign checks.” In the absence of such a provision or a statute, the money could not be withdrawn except by joint action of the depositors. Neiman v. Beacon Trust Co. 170 Mass. 452. National City Bank of New York v. Harbin Electric Joint-stock Co. Ltd. 28 Fed. (2d) 468. See G. L. (Ter. Ed.) c. 167, § 14, as amended by St. 1933, c. 334, § 1. The defendant, accordingly, was bound to recognize the full power that each possessed in the disposition of the funds in this account and was required to honor the checks of either so long as the account was sufficient. Wiley v. Bunker Hill National Bank, 183 Mass. 495. Castaline v. National City Bank of Chelsea, 244 Mass. 416.
A bank may recognize the oral request of a depositor to withdraw funds. Watts v. Christie, 11 Beav. 546. Gaunt v. Alabama Bound Oil & Gas Co. Inc. 281 Fed. 653. First National Bank v. Hall, 119 Ala. 64. First National Bank v. Stapf, 165 Ind. 162. Neff v. Greene County National Bank, 89 Mo. 581. Ellis v. First National Bank of Woonsocket, 22
The relation existing between the plaintiff and her husband and the defendant was that of creditor and debtor, and the defendant held the funds subject to be paid out in accordance with the directions of either of the depositors. National Mahaiwe Bank v. Peck, 127 Mass. 298. Bachrach v. Commissioner of Banks, 239 Mass. 272. Lynch v. First National Bank of Jersey City, 107 N. Y. 179. Sundial Construction Co. Inc. v. Liberty Bank of Buffalo, 277 N. Y. 137. Sawyer had authority to direct the defendant to make payments out of the joint account. His power to withdraw funds from this account by checks included the power to withdraw them by charge slips. Payment by the defendant in compliance with these charge slips was valid.
Exceptions overruled.