Marine Bank & Trust Co. v. Epley

Epley sued the bank to recover the proceeds of a $4,500 note he had .executed to it, which he charged it with having- misapplied and converted by crediting the amount on its books to the account of the Houston Trading Company, a corporate customer in which Epley himself was both a stockholder and treasurer.

In answer, the bank pleaded the connection between Epley and the trading company, alleging that he had borrowed the $4,500 from the bank, giving it the note therefor, and instructing its. officers to so credit the proceeds to the account of the trading company; that he knew, at the time it…