Lieberman v. First National Bank

Citations

• 8 Del. Ch. 229

Syllabus

<p>Negligence on the part of the officers and directors of a bank in the management of its affairs and the examinations of its books, so as to discover the defalcations of a paying teller, will not discharge his sureties on his official bond, given for the faithful performance of his duties.</p> <p>The fact that it was made part of the duty of the paying teller of a bank to act also as book-keeper, so far as to keep the individual deposit ledger, is not a defense to a suit, on his official bond although the defalcations made have been connected with and made possible by reason of his employment in the bank as such book-keeper; it having been shown that it was the custom, at that time, of a large majority of the banks of the State, to impose that duty upon the paying teller, and was considered by those banks to be a legitimate part of his duty.</p> <p>No statements made by the cashier of a bank could in any way affect the responsibility of a surety for the paying teller, they being fellow employees, and the cashier having no more authority to represent the corporation, in such a matter, than any clerk or . book-keeper in its employ.</p> <p>Incorrect reports of the condition of a national bank made pursuant to sec. 5211 of the Revised Statutes of the United States cannot be reasonably held to have operated as an inducement to anyone to become surety on the bond of an employee of a bank, and cannot be so considered as to make the validity of the bond depend upon their correctness.</p> <p>The object of the publication of statements of the condition of a national bank under U. S. Rev. Stat., sec. 5211, is to notify the stockholders and depositors and those intending to become such, or who might in any manner entrust their money to the bank, of its financial condition; but such statements can have no bearing upon the subject matter of the contract of suretyship.</p> <p>A warrant of attorney to confess judgment has no effect, in this State, to take a case out of the statut