143 A. 206 | Pa. | 1928
Argued May 15, 1928. This action was brought by the receiver in bankruptcy of Brown Stevens, private bankers, against Southwestern National Bank to recover the amount of two certificates of deposit which it issued to Brown Stevens, one for $9,000, and the other for $25,000. The case was heard by the trial judge without a jury and his finding was for plaintiff for the full amount claimed. From the judgment entered defendant appeals.
There is no dispute as to the facts and only a single question is involved: Should defendant have been permitted to set off indebtedness incurred by Brown Stevens to it subsequent to the date of the certificates? The learned court below decided against the set-off; its conclusion was correct.
The certificates are similar in form. The first one issued is as follows: *4
"608. The Southwestern National Bank
Broad and South Sts.
"Certificate of Deposit.
"Philadelphia, March 11, 1918.
"Brown and Stevens has deposited in this Bank. Pay $9,000, and 00 cts. Dollars, payable to the order of themselves on the return of this certificate, properly endorsed. Interest payable to Brown Stevens without the return of this certificate from the State Treasurer. $9,000. WM. J. BARR,
Prest."
The certificates had both been obtained by Brown Stevens for the purpose of depositing them with the State Treasurer as part of the collateral required of private bankers by the Act of June 19, 1911, P. L. 1060, section 1. They were endorsed by Brown Stevens to the order of the State Treasurer and by him to the order of the Secretary of Banking. Brown Stevens suspended payment in February, 1925, the Secretary of Banking filed a certificate of insolvency against them and took possession of their assets and thereafter the use plaintiff was appointed receiver in bankruptcy for them and to him the certificates were surrendered.
When demand was made upon defendant bank for payment of the certificates, it refused to honor them, asserting the right to set off indebtedness due to it by Brown Stevens created after their date and issue and exceeding them in amount. In their brief, appellant's counsel, — while necessarily admitting the wording of the certificates showing that they were to go to the state treasurer and not denying that there was evidence that when each certificate was issued one of the partners of Brown
Stevens informed defendant's president of their intention to place it with the state treasurer, — take the position that because there was no evidence that the bank had ever received notice or had knowledge that the certificates had in fact been deposited *5
by Brown Stevens with the state treasurer, there was no notice to the bank of their actual assignment. Until such notice was received, the assignee's rights were not fixed, they contend, and the bank had the legal right to continue to deal with Brown Stevens as the parties to whom it was indebted upon the certificates and could avail itself of any defenses, by way of set-off, which it had acquired against them before the receipt of notice of the assignment of the certificates, which it is alleged was not until March 25, 1925, when all of the indebtedness claimed to be set off had accrued. In support of their contention, appellant's counsel cite Skobis v. Ferge,
Appellant's counsel argue that the case at bar is ruled by Schwartz's App.,
Certain other questions are discussed in the briefs, but they are not controlling and need not be considered.
The judgment is affirmed.