Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1898-06-09
DECISION OF THE CHANCELLOR
n the Suit of Lieberman VS..
First National Bank.
A MOST INTERESTING OPINION
Reasons Given For Deciding
Against the Complainant.
The Case Fully Reviewed and Authorities
Cited--A Word of Warning to Future
Prospective B"ndsnen-A Paper OF Great
Interest ana Well Worth Saving,

Chancellor j. Il. Nicholeon yesterday
week delivered an opinion in the Huit
of Nathan hieberman, surety for Peter
4. E. Smith, late paying teller Of the
First National bank, against tho bank
and ex.Sherilf PIERCE Gould. The bank
sought to collect from Teller Smith a
surety after the defH cation, and after the |
matter had been placed in the hands OF
Sheriff Gould. MIR. fisherman brought |
Buit 10 tho Court of Chancery to RS
strain the parties from collecting on |
the bond. The case has attracted much |
attention and ia probably the most |
interesting that has been before the |
oourt for some time.
After this opinion had been delivered |
Bsniamin Nields, council for Mr..
fisherman, gave notice that he would |
take an appeal to the Supreme Court.
The court will meet on June 2let anil |
will DO composed OF all OF the State
judges, except the Chancellor.
The opinion denies the prayers OF
the bill and dissolves the injunction,
go far as to allow the hank to collect
tie amount of the dofalcation proved
and covered by the complainant's
bonds, with interest.
The aggregate amount of the Lieber-
man bonds is $40, 600. and under the
SEA, 900 may he collected on them. This
rapresents tho amount OF the Smith de
falcation within tbs six years following
the execution of each of the bonds,
with interest The opinion follows:
In ths Court of Chancery of the
Stats of Delaware, in and for New
Castle county-Nathan Lieberman va.
the First National Bank of Whining
ton, and Teirce Gould, sheriff.
This is bill in equity by une OF the
suraties On Official bond ct Peter 4. Il.
Smith. late raying teller of the First
National Bank of the city OF Whining
ton, to restrain the bank from proceed-
ing at Law to culleot fron the com
plainant any of caitain defaloations OF
the said Smith committed willis paying
teller of the said bank.
The bonda bore date respectively
November LIST, 1879. and July 9Th,
1885. The complainant was Que OF the
suretias in each bond. his co-sureties
on the first bond being John Sparkle,
Christian Messick and Joshua MariH,
and on the second bond John Sparks
and Hannah L. Sparks. Tho two bonds
were precisely alike in their terms,
being each 10 the penal sum OF Fifteen
Thousand Dollars, and upon condition
that If the above bounden Peter i.
W.
truly and diligently execute aud dis.
charge his trust as teller of the said
The First National Bank of Whining
tou, and faithfully perform all the
duties thereof and shall and do make
end give or cause to be made and given
unto the said 'The First National
Bank OF Wilmington and its success
soia and assigns for and during the
entire time the said Peter 4. Il. Smith
snail or may be employed in tho said
Office OF teller as aforesaid, full salts
faction, recompense and account of and
for all such moneys, bills, notes, goods,
wares, books. papers. accounts and
effects, or other things whatsoever of
and belonging to the said The First
National Bank Of Wilmington. or it's
successors and assigns, as he may have
the care, charge, supervision Or pos
session of in performing the duties
devolving upon him as teller as Rfore-
said and shall deliver to the said The
First National Bank of Wilmington
its SUCCESSORS or assigDs, all such prop
erty, books, papers and effects. Or other
things whatsoever belonging to the said
The Fret National Bank of Will
mington,' it's SUCCESSORS or assigns,
upon the conclusion OF hie sRid office
ne teller as aforesaid. aH he may have
parforming his duties as teller as
aforesaid, or had in his possession in
any way whatsoever, then the above
,hligation 10 be void, otherwise to be
and remain in full force and virtue.
Each bond contained warrant OF
attorney for confeasing judgment, which
had been executed by the entry OF
judgments February gath. 1893, in the
siuperior Court of the State Of Della
ware in and for New Castle county,
being No. 300 on the bond OF November
lat, 1879, and 3Ol on the bond of July
9th, 1885. .a
On the 10Th day of October. 1893, the
hank caused writ of execution fol
$3.50 to be issued upon said judg
ment No 30l directed to Peirce Gould
Sheriff, az aforesaid, who levied upor
and took in execution all the goods ant
chnttels of the complainant and wal
about to advertise and sell the same
wbsn the complainant filed his bill il
eoujty and the late Chancellor Jamel
Il. Wolcott granted the following pre-
liminary Injunction: "And now u
wit, this Sixth day of November. A
~, 1893, the foregoing bill of complain
having been read and considered, it i
ordered by the court that a preliminer!
Injunction be issued to restrain tn
First National Bank OF Wilmington, it
officers, agents and attorneys from TAX
ing AIRY action or proceedings upoi
said Judgment, and against Peirc
Guild, Sheriff Of New Castle county
his agents and attorneys. from dis
turbing, removing, advertising or sell
ing and OF the gouds and chattels. prop
srty or effects of the said complainant
under said writ of execution until tn
further order of this court upon III
complainant executing an injunction
bond in the penalty OF $50, 00O Wit
John Il. Dickey as surety"
Subsequently proofs were taken i
the Gauss. the testimony which wa
very voluninous being closed June 4th
1896. and it was finally brought to
hearing before me.
II appears from the evidence on th
mart OF the respondent. and it is nc
denied by the complainant, that dt
falcatious we're committed by Smith Q
naying teller during series OF man
yearH. They began several years pri'
b 10 November LIST, 1879, the time whe
Il the first bond on which the complaint
q bscame a surety WAS given, and col
tipued until Smiths detection an
vi resignation in February, 1893 when }
& made full confession and was indicte'
~ tried AMI sentenced TO a term of in
e prisonment.
II A.. .-boIa ,orio,l p,opav v