Anglo California National Bank v. Far West Lumber Co.

WARNE, J. pro tem.

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This is an appeal by defendant Phelps B. Gooeh from a judgment in favor of plaintiff and against Gooeh and Far West Lumber Company, a corporation.

Phelps E. Gooch was the president and manager of the Far West Lumber Company. The company maintained a bank account with the plaintiff at its branch bank in Redding. Due to an error on the part of its bookkeeper, the bank, during the period of May 14, 1953, to May 18, 1953, paid 16 checks of Far West Lumber Company in the amount of $3,609.50 when the company had only the sum of $14.26 on deposit. On May 18, 1953, when the error was brought to the attention of the bank officials, Mr. Gooeh was notified of the overdrafts, and he informed the bank that funds would be available to cover them by the end of the week. He stated that a deposit would be made on May 23, 1953.

On May 25, 1953, Mr. Gooch went to the bank where the matter was again discussed with Mr. Thies, the manager of the plaintiff’s branch bank at Redding, and with Mr. Sander-son, the assistant manager. At this meeting the two bank officials discussed with Mr. Gooch his failure to live up to his promise of the preceding week to have the funds by the end of that week, the unavailability of the expected money and the financial affairs of Far West Lumber Company as well as Mr. Gooch’s personal affairs. At this meeting the bank learned that Far West Lumber Company was insolvent. Mr. Thies testified that Mr. Gooch was asked about his personal affairs in order ”. . . to determine whether he had sufficient funds to back up his statement that he would be willing to reimburse the bank for any loss that occurred after . . . Far West Lumber Company, had paid as much as they could on the draft.”

At this meeting Mr. Gooch was told that unless some satisfactory arrangements were made with the bank, the bank was going to bring an action, or ‘‘do something” immediately. Mr. Thies testified that ”... the arrangements he seemed to make with us was [to] assure us the funds would be forthcoming either from Far West Lumber Company or through his earnings as a lumber man. He said that he could—he

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had a truck and he could drive that and that he would have earnings there that would be sufficient in a period of time to clear the overdraft. We therefore gave him the additional time to bring the funds in from the Rocky Mountain Manufacturing Company, monies that were due, or from Mr. Olcott’s contracts in the Bay area. Then he told us to contact him in a few days.”