Opinion ID: 1148014
Heading Depth: 1
Heading Rank: 2

Heading: Do the plaintiffs have standing to sue the bank?

Text: Initially, the question of these plaintiffs standing to sue the bank arises. The prior cases of this Court state that a holder of a check has no cause of action against a bank, but must look to the drawer of the check. The drawer of the check can complain to the bank for dishonoring of the check. Deposit Guaranty National Bank v. B.N. Simrall & Son, Inc., No. 56,469 (Miss. April 8, 1987) (not yet reported); Citizens National Bank v. First National Bank, 347 So.2d 964, 968 (Miss. 1977); See also: Miss. Code Ann. § 75-3-409. However, factors that distinguish the instant case, making exception to the application of the above rule, are (1) the federal act designates payments for livestock as trust funds and (2) the depositor is acting as a fiduciary. 7 U.S.C.A. §§ 181-229 (1980). The majority rule on this point is stated in Bank of West Orange v. Associates Discount Corp., 197 So.2d 858 (Fla.App. 1967). The simple deposit of money, check or draft in a commercial bank on account of the depositor, without being complicated by any other transaction than that of depositing and withdrawing money, is a general deposit. However, when a draft is deposited with a bank for collection to be remitted, such deposit is special and right to the deposit remains in the depositor. The bank under such circumstance, becomes bailee, trustee or agent for the depositor. Collins v. State, 1894, 33 Fla. 429, 439 and 440, 15 So. 214, 217 and 218. A deposit in a bank is a general or special deposit depending upon the contract which results from the mutual understanding and intention of the parties. No particular form of such a contract is prescribed. Tunnicliffe v. Sears, 1932, 107 Fla. 669, 148 So. 197. The purpose and terms of a special deposit may be fixed by express agreement, or the intention of the parties may be inferred from their declarations at the time the deposit was made when considered in connection with their conduct and all the other circumstances surrounding the transaction. It also follows that, when a bank receives money to be applied to a particular purpose and it fails to properly apply it, such bank becomes a trustee and is answerable to the owner of the money as for a breach of trust. Bryan v. Coconut Grove Bank & Trust Co., 1931, 101 Fla. 947, 132 So. 481, 134 So. 229; Northern Sugar Corp. v. Thompson, 8 C.A. 1926, 13 F.2d 829, at p. 832; Central Bank and Trust Co. v. Shipman, Fla.App. 1961, 127 So.2d 706. Under such circumstances title to the deposit remains in the depositor, and the relation of debtor and creditor does not exist. See cases collected in 86 A.L.R. 375. 197 So.2d at 861-2. See also Citizens National Bank v. First National Bank, 347 So.2d 964, 967 (Miss. 1977); 10 Am.Jur.2d, Banks § 367 (1963); 9 C.J.S. Banks and Banking § 274a. (1938).