Security-First National Bank v. Walters

DORAN, J. The judgment herein appealed from by the various parties thereto, was entered in an action for declaratory relief instituted by the Security-First National Bank, and involved an alleged wrongful act of the bank in permitting access to a safe-deposit box rented by Bertha F. Walters [773]and William R. Walters, husband and wife. William R. Walters died on July 11, 1946, and Helen A. Walters, divorced wife of decedent, was appointed executrix of the estate.

On April 11, 1942, the Security Bank rented to Bertha F. Walters a safe-deposit box at its Highland Park Branch, a rental receipt and one key being then issued. Thereafter, on April 13, 1942, a corenters’ agreement in reference to said box was signed by Bertha F. Walters and William R. Walters and a key issued to the husband. Among other things the co-renters’ agreement provided that “Right of access to said box shall be had and surrender of same may be made by either of us without consent of or notice to the other. ” The safe deposit manual of the bank instructed its employees that if one party wrote or stated that the other corenter was not to be allowed access to the box, the box would be automatically sealed.

On or after September 27, 1945, Bertha F. Walters placed in the safe-deposit box six cashier’s checks in the total amount of $9,000, issued by the Security Bank on that date, and payable to the order of Bertha F. or W. R. Walters. The funds made use of in payment for these cashier’s checks were derived from the Bank of America in the amount of $5,000, and from the Security Bank as to the remaining $4,000. The trial court found that these funds “came from the business and operations of the Radienee Products Co. were . . . the community property of Bertha F. Walters and William R. Walters.”

At the time the cashier’s cheeks were placed in the safe-deposit box, and apparently furnishing an explanation for such action, Helen Walters, divorced wife of William R. Walters, had instituted an action against William R. and Bertha F. Walters for rescission of an agreement whereby William R. Walters purchased the partnership interest of Helen Walters in Radienee Products Company. This action came on for trial on October 1, 1945; Mr. Walters was then ill, and the litigation was finally settled by a payment of $2,000 to Helen Walters.

The trial court found that “on or about January 4, 1946, Bertha F. Walters orally instructed Security-First National Bank . . . not to let William R. Walters into said safe-deposit box No. 184 without her being present.” On February 4, 1946, William R. Walters in writing instructed the bank not