Camm & Hedges Co. v. Bank of Covelo

LANGDON, J.

This action was brought to recover damages for alleged fraudulent representations and promises. Motions for nonsuit as to each of the individual defendants were granted at the close of plaintiff’s case and at the conclusion of the trial judgment was entered in favor of the defendant bank on a directed verdict. The plaintiff appeals.

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A. W. Biggers was engaged in constructing a school building near the town of Covelo for the Round Valley Union School District. He was indebted to the Bank of Covelo for overdrafts and loans in the sum of about $6,100 and assigned to that bank all moneys due and to become due him under the contract. Plaintiff supplied materials for the school building and had an unpaid claim therefor of over $3,200. Mr. Owens, representing plaintiff, went to Covelo on January 21, 1924, for the purpose of collecting this claim. While there, he met some of the defendants who are alleged to have made fraudulent statements and false promises which' prevented plaintiff from filing a “stop” notice, and thus diverting the last payment on the contract to the payment of plaintiff’s claim.

The money due Biggers was collected by the bank and after satisfying its own claim, the balance was placed in the checking account of Biggers and was disbursed by him.

It is contended by appellant, first, that defendants, by their statements and promises substituted themselves for and in place of A. W. Biggers as principal debtors. The contention is not supported by the evidence. The testimony of Owens is to the effect that he first made inquiry of defendant Long, thinking he was the secretary of the board of trustees. Long introduced him to defendants Johnson and Rohrbough, who at the time were standing on the sidewalk in front of the Bank of Covelo. A general conversation followed. Defendant Long was a stockholder and officer of the bank. Defendants Johnson and Rohrbough were each directors and stockholders of the Bank of Covelo, the latter being president and the owner of a majority of the capital stock. Mr. Owens testified: “Mr. Rohrbough told me that there was $11,000 of money that was yet to be paid on account of the contract for the school building; that there was sufficient money there to pay our bill, together with all other bills, and Mr. Rohrbough said that all of the money was being paid through the Bank of Covelo and that the bill of Camm & Hedges would be paid together with all bills, because there was sufficient money with which to pay it. Q. Now, at that time state whether or not Mr. Rohrbough said to you all of the accounts are being paid through the bank? A. He positivély stated all bills are being paid through the Bank of Covelo.