Hopkins v. Easton National Bank

Parke, J., delivered the opinion of the Court. A certain William Hermon Hopkins died intestate on September 19th, 1934, and letters of administration were granted to his surviving widow, Grace Russell Hopkins, on October 23rd, 1934. At the time of his death there was on deposit in the Easton National Bank the sum of $5,229.44 to the credit of William Hermon Hopkins, agent. The administratrix has made demand upon the depositary for the payment of this amount to her in the representative capacity, and the Isla Corporation, a body corporate, has given notice that the intestate had the cusody of the money as its agent.

The bank thereupon filed its bill of complaint, which alleged the recited facts and further that, while it was ready to pay the amount to the true owner, it could not decide between the conflicting claims, nor safely make any payment until the ownership of the fund was settled authoritatively by a court of competent jurisdiction. The bank, also, averred its desire and tendered itself willing to pay the amount into court to await a judicial settlement of the controversy. The bill of complaint was verified, and the affidavit contained the further statement that the bill of complaint was not collusive. The two claimants were made parties defendant, and the relief prayed was that they might be required to interplead and be restrained, pending the litigation, from prosecuting or commencing any action ¹³³ at law in respect of the subject matter, and for general relief.

The defendants to the bill of interpleader were summoned. The administratrix answered and denied the corporation was entitled to any part of the fund, but stated that the account was originally so opened by the intestate as the agent of Dr. John Jay Russell, his father-in-law, and that subsequently the money of the intestate was deposited to his account, so that the fund now is the commingled private funds of the intestate and of his father-in-law, who has requested the respondent, who is his daughter, to act as his agent, as did her husband with reference to that portion of the deposit which is the property of the said Russell. After replying to the allegations of the bill of complaint, the administratrix claimed the benefit of her answer as if she had specially demurred to the bill. On March 16th, 1936, the corporation defendant not having appeared nor answered, the matter was submitted, and the court decreed that the defendants interplead and made the corporation the plaintiff and the administratrix the defendant.

The chancellor further decreed that the plaintiff be at liberty to retain the costs as should be taxed by the clerk, and the sum of seventy-five dollars as a fee to its solicitor for his services, and that the residue of the deposit, with any accrued interest, should be paid into court. The decree concluded with a stay of all further proceedings in the cause between the plaintiff and the defendants, and that, on the payment of the fund into court, an injunction issue to restrain the defendants from the prosecution of any suit or action against the plaintiff in reference to the fund involved. The chancellor rightly ignored the attempt of the administratrix to demur. In addition to being defective in form, rule 18 of the General Equity Rules was not complied with, as there was no affidavit that the purporting demurrer was not intended for delay.

Code, art. 16, sec. 173. Furthermore, the decree recites that the cause was submitted for decree, and so, there being no ruling on the demurrer, no question as to the legal sufficiency ¹³⁴ of the bill of complaint arises on this appeal. If the answer could be treated as a demurrer, the bill of complaint gratifies the requirements of good pleading. Home Life Ins.

Co. v. Caulk, 86 Md. 385 , 38 A. 901 ; Ammendale Normal Institute v. Anderson, 71 Md. 128 , 17 A. 1030 . At the time the proceedings were submitted to the chancellor, both defendants had 'been summoned, but one had neither appeared nor answered. On the failure of a defendant to appear, the party is in contempt, and the allegations of the bill may be taken as true against him. Rust v. Lynch, 54 Md. 636 .

On the pleadings, and the tacit admission by the defendant in default of the truth of the allegations of the bill of complaint as they are averred, the defendant who has answered and the