Bear River State Bank v. Merrill

LARSON, Justice.

This is an appeal from a judgment of the District Court dismissing the plaintiff’s complaint. Plaintiff, Bear River State Bank, formerly the Wellsville State Bank, sued the defendants, former officers and directors of the Wellsville bank, claiming assets of the bank had been converted by the defendants, and seeking an accounting. The claim arose out of two transactions, the facts of which we state briefly.

The first transaction arose because of the impaired capital of the Wellsville State Bank in 1988. Notes of the face value of approximately $15,000 had been eliminated by the…