Robertson v. Bank of Batesville

Citations

• 116 Miss. 501
• 77 So. 318

Syllabus

<p>1. Depositories. Effect of deposits. Ownership of funds.</p> <p>Funds paid by a county into a depository duly contracted with, are not funds of the county, and not trust funds, but become the funds of the depository bank.</p> <p>2. Depositories. Actions against depositories. Gross-hills.</p> <p>Where the proceeds of a bond issue for the construction of bridges and roads, and the amount of ad valorem and commutation taxes were paid into one common fund under the direction of the county auditor, and warrants were paid by the county depository without keeping the accounts of the two funds separate, and the state revenue agent sued the depository for an accounting and a restoration of the road bond fund, a cross-bill by the depository, asking that, if it should be held that it was not authorized to pay certain warrants from the proceeds of the bonds, it might be subrogated to the rights of the holders of such warrants and be allowed to collect the amount so paid from the road tax fund, was maintainable.</p> <p>3. Depositories. Actions against. Doing equity.</p> <p>Where the revenue agent comes into equity and seeks .equitable relief, he must be required to do equity, and the chancery court, in dealing with the matter, where the funds are commingled, will apply the funds as they ought to have been applied, applying to the bond funds such warrants as should properly have been paid from this fund, and allowing the depository to be subrogated to the rights of holders and to have funds paid in as ad valorem and road commutation funds applied to warrants which would have been paid out of such funds had the accounts been properly kept separate. If there should be any shortage in the road bond fund after so applying the warrants, then the judgment should be rendered to the amount of such funds so improperly paid out, and the revenue agent’s commission should be limited to such amount as may be due by the depository after properly applying the warrants to the appropriate fund