Hibernia Building Ass'n v. McGrath

Citations

• 154 Pa. 296
• 26 A. 377
• 1893 Pa. LEXIS 883

Syllabus

<p>Gratuitous mandatory — Negligence—Fraud.</p> <p>A gratuitous bailee or mandatory is liable only for fraud or for such gross negligence as amounts to fraud.</p> <p>Treasurer serving without compensation — Negligence.</p> <p>A treasurer or director of a corporation may become a gratuitous bailee and his official position and designation will not in any degree change his liability as such bailee.</p> <p>Building associations — Payments by treasurer — Negligence.</p> <p>Under the by-laws of a building association the president was required to sign all orders drawn upon the treasurer for appropriations made by the board, the secretary to keep accurate minutes, to attest all orders drawn on the treasurer for appropriations made by the board, the treasurer to pay all orders drawn on him by order of the board, if signed by the president and attested by the secretary. The treasurer served without pay, but gave a bond for the faithful performance of the duties of his office. All applications for withdrawals of stock were required to be approved by the board of directors. The secretary, however, kept no record of withdrawals. It was a usual and customary thing to pay money to the secretary for the members. Certain orders for withdrawals were signed by the president and attested by the secretary in the usual form, and paid in good faith by the treasurer to the secretary, who absconded with the money. Held that, under the circumstances of the case, there was not sufficient evidence of negligence on the part of the treasurer to submit to the jury.</p>