Lynch v. Wells Fargo Bank & Union Trust Co.

Plaintiff commenced an action against the defendant to recover a certain fund in the sum of $25,000. From a judgment in favor of the plaintiff the defendant has appealed.

Stephens & Company was a corporation transacting a stock-broker’s business in San Francisco. During that time it was banldng with the defendant. Under the rules of the defendant, Stephens & Company was required to keep a balance of $39,000 at all times. As from the beginning Stephens & Company maintained its general commercial account with the defendant bank. For some time prior to February 20, 1925, Stephens & Company had made such arrangements with the plaintiff that the plaintiff had deposited in one of the banks at Los Angeles $25,000 and received therefor a certificate of deposit payable to Stephens & Company, bearing interest at four per cent and maturing in six' months. On maturity of one of these certificates it was renewed and another one issued. When one was issued it was given by Stephens & Company to plaintiff and that company paid plaintiff six per cent interest. Upon the maturity of the third certificate of deposit Stephens & Company expressed its desire to change the form of the deposit and also…