First National Bank v. Gaddis

Citations

• 31 Wash. 596
• 72 P. 460
• 1903 Wash. LEXIS 675

Syllabus

<p>CONVERSION-UNAUTHORIZED LOAN BY BANK CASHIER-PLEADING-IMMATERIAL ALLEGATIONS.</p> <p>In an action against bank officers for the conversion of funds, allegations in the complaint to the effect that the converted funds were pretended to be loaned by defendants to a speculative corporation without mercantile credit were immaterial.</p> <p>SAME-EVIDENCE-MATERIALITY.</p> <p>Where defendants in such an action are charged with converting money of the bank to their own use, evidence that the corporation to which they claimed the funds had been loaned was of a speculative character, without property, and unworthy of credit was properly excluded because of its immateriality.</p> <p>SAME — RATIFICATION OF LOAN BY DIRECTORS.</p> <p>The directors of a bank are estopped to deny the authority of-the cashier and assistant cashier in the extension of credit to a speculative corporation in which the latter were stockholders, where the directors had known of the course of dealing for a period of five years without making objection thereto, and consequently the loan of the bank’s money to such corporation under such circumstances is insufficient to establish a conversion of the funds.</p> <p>STATUTE OF FRAUDS-PROMISE TO ANSWER FOR DEBT OF ANOTHER.</p> <p>The oral promise of bank officers to repay to the bank money that they have loaned out of its funds to an insolvent corporation is not binding, because a promise to answer for the debt of an-another, and not in writing.</p>