12438. Medina State Bank (Medina, ND)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 12, 1917
Location
Medina, North Dakota (46.894, -99.300)

Metadata

Model
gpt-5-mini
Short Digest
7ac24e08

Response Measures

None

Description

Articles (May–Dec 1917) refer to the Medina State Bank as closed and placed in receivership (Michael Murphy, receiver). The receiver's suit alleges defendants failed to loan funds and thus caused the closing. No articles describe a depositor run; the bank is defunct and in receivership, so this matches a suspension followed by closure/receivership.

Events (3)
1. May 12, 1917 Receivership
Newspaper Excerpt
Michael Murphy, receiver of the Medina State bank, plaintiff and appellant, vs. L. B. Hanna, E. J. Weiser, and First National bank of Fargo, a corporation, defendants and respondents.
Source
newspapers
2. May 12, 1917 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Receiver alleges that Hanna and First National Bank of Fargo repudiated an agreement to advance money against bills receivable, refusing to provide funds to keep the bank solvent, causing its closing.
Newspaper Excerpt
This means that the case will come up for trial on its merits in the Cass county court. The action arises out of the closing of the Medina bank. The receiver contends that former Governor Hanna and the First National bank of Fargo failed to come to the rescue of the institution as they had planned.
Source
newspapers
3. December 5, 1917 Other
Newspaper Excerpt
Fargo—With the consent of all parties the famous Medina bank case has been postponed until the January term of district court... being charged by the receiver of the defunct Medina State bank with having caused the closing of that institution
Source
newspapers

Newspaper Articles (5)
1. May 12, 1917 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, May 12, 1917

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Article Text

HANNA LOSES ROUND IN FAMOUS MEDINA BANK LITIGATION Former Governor L. B. Hanna and the First National bank of Fargo lost a round in the famous Medina bank case litigation this afternoon, when the supreme court of North Dakota reversed the Cass county district court order sustaining a demurrer to the complaint, filed by Receiver Murphy, and remanded the case to the lower court. This means that the case will come up for trial on its merits in the Cass county court. The action arises out of the closing of the Medina bank. The receiver contends that former Governor Hanna and the First National bank of Fargo failed to come to the rescue of the institution as they had planned.

2. May 14, 1917 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, May 14, 1917

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Article Text

# Supreme Court Decisions From Cass County. Michael Murphy, receiver of the Medina State bank, plaintiff and appellant, vs. L. B. Hanna, E. J. Weiser, and First National bank of Fargo, a corporation, defendants and respondents. Syllabus: 1) In an action to recover damages for breach of an alleged executory contract to loan money where the complaint alleges no facts from which it can reasonably be inferred that the borrower had agreed to borrow any sum of money, or if borrowed, to retain the same for any period of time, paying interest therefor, the complaint states no cause of action for breach of a bilateral executory contract. (2) A complaint which alleges the understanding, with which, and the circumstances in which, parties were negotiating for a loan of money from one to the other, and where it further alleges acts done in pursuance of such understanding, which acts involve a detriment sustained by the one desiring to borrow money, which detriment is incurred in reliance upon the promise of the other to loan, the complaint states a cause of action for a breach of a unilateral contract obligation. (3) Where a complaint alleges that it was agreed between plaintiff and defendants that plaintiff should turn over to the defendants bills receivable approved by them, which they were to hold as security for a loan of money to plaintiff to enable plaintiff to continue its business, thus preventing the sacrifice of its assets and the loss of its good will, and that, in pursuance of this agreement plaintiff turned over to the defendants its bills receivable selected by them, of the alleged value of about $20,000, which bills receivable are alleged to have constituted the assets of the plaintiff that could be speedily converted into cash, and where it is alleged that defendants thereupon repudiated their agreement and refused to advance any money to plaintiff, such complaint states a cause of action for breach of contract. (4) Where a contractual obligation results from the conduct of parties in pursuance of an understanding or agreement, which understanding or agreement by reason of lack of mu-

3. May 17, 1917 Jamestown Weekly Alert Jamestown, ND
Article from Jamestown Weekly Alert, May 17, 1917

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Article Text

CASES DECIDED FROM STUTSMAN COUNTY Syllibus in the Medina Bank Case. Following is the syllabus of the supreme court's decision in the Medina State Bank case: Michael Murphy, Receiver of the Medina State Bank, plaintiff and appellant, vs. L. B. Hanna, E. J. Weiser, and First National Bank of Fargo, a corporation, defendants and respondents. Syllabus: (1) In an action to recover damages for breach of ar alleged executory contract to' loan money where the complaint alleges no facts from which it can reasonably be inferred that the borrower had agreed to borrow any sum of money, or if borrowed, to retain the same for any period of time, paying interest therefor, the complaint states no cause of action for breach of a bilateral executory contract. (2) A complaint which alleges the understanding with which, and the circumstances in which, parties wore negotiating for a loan of money from one to the other, and where it further alleges acts done in pursuance of such undertaking, which acts involve a detriment sustained by the one desiring to borrow money, which detriment is incurred in reliance upon the promise of the other 'to loan, the complaint state3 a cause of action for a breach of a unilateral contract obligation. (3) Where a complaint alleges that it was agreed between plaintiff and defendants that plaintiff should turn over to the defendants bills receivable approved by them, which they were to hold as security for a loan of money to plaintiff to enable plaintiff to continue its business, thus preventing the sacrifice of its assets and the loss of its good will, and that, in pursuance of this agreement, plaintiff turned over to the defendants its. bills receivable selected by them, of the alleged value. of about $20,000, which bills receivable are alleged to have constituted the assets of the plaintiff that could be speedily converted into cash, and where it is alleged that defendants thereupon repudiated their agreement and refused to advance any money to plaintiff, such complaint states a cause of action for breach of contract. (4) Where a contractual obligation results from the conduct of parties in persuance of an understanding or agreement. which understanding or agreement by reason of lack of mutuality of obligation does not amount to a mutually hind ing bilateral contract, it sential that the obligation shall be capable of precise measurement in advance. Its extent is controlled by the standard of reasonableness un-

4. May 17, 1917 The Bottineau Courant Bottineau, ND
Article from The Bottineau Courant, May 17, 1917

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Article Text

HANNA LOSES IN BANK CASE Judge Pollock Reversed By Unanimous Decision in Famous Medina Bank Case. Bismarck, N. D., May 12.-In a unanimous decision, the state supreme court today reversed former Judge Chas. A. Pollock of Cass county and held against former Governor L. B. Hanna and the First National Bank of Fargo in the Medina bank case. Michael Murphy, receiver for the Medina State bank of Medina, alleges that Governor L. B. Hanna, E. J. Weiser, and the First National bank of Fargo, took certain securities amounting to $20,000 being all of the available assets that could be easily converted into cash, and promised in return to loan it sufficient money to keep up it's credit. Mr. Murphy started suit for $50,000 damages. Governor Hanna and the First National bank entered a demurrer, which Judge Pollock sustained. Mr. Murphy appealed and the supreme court today reversed the judge, which means that the case goes back to district court to be tried on its merits. Justice Birdzell wrote the opinion. The justice maintains that where a complaint alleges that it was agreed that when a certain party promised to loan money in pursuance to securities deposited there-with and then refused to do it, that such complaint states a cause of action.

5. December 5, 1917 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, December 5, 1917

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Article Text

Fargo—With the consent of all parties the famous Medina bank case has been postponed until the January term of district court, it was announced yesterday. This action had been set for December 17. Former Governor L. B. Hanna and several of his associates in the banking business are the defendants in this case, being charged by the receiver of the defunct Medina State bank with having caused the closing of that institution.