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While Judge Boulware's decree held the act of 1930 unconstitutional, Associate Justice M. L. Bonham, in the majority opinion declared that the court's decision in the case of W. H. Witt against the Peoples State bank, upholding the act, had determined all questions on it. His opinion held that the Witt decision controlled in the Sanders case. but that Sanders had no preferred claim under the act or outside of it. Justice Bonham. while agreeing with the result of the circuit court's decree, said that the conclusions through which it was reached were in error. Associate Justice John G. Stabler and Acting Associate Justice C. A. Featherstone wrote concurring opinions, and Chief Justice Eugene S. Blease and Acting Justice W. C. Cothran handed down dissenting opinions. The chief justice held that while the Witt decision determined questions on the act of 1930, that the Senders case did not come within It and based his opinion on the -hearing on whether Sanders was entitled to preference independently. The amount involved in Sanders' petition was $3,173.40. He was given check made by a customer of the bank to M. K. Sanders, who endorsed Sanders presented the check at the counter on December 30, 1930, and took $100 in cash and draft for the remainder on the South Carolina National bank of Charleston The Bamberg Banking company had deposits of $7,000 in the Charleston bank. Sanders held the draft when the Bamberg bank closed its doors on January 15, 1931. He then brought suit to recover under the act of 1930, passed by the legislature to expedite collections of closed banks by establishing preferred claimants. Justice Bonham held that the draft on the South Carolina National bank at Charleston was accepted by Sanders as an unconditional credit and that the act of 1930 was not applicable in his case. The assets of the banking company were not swelled by the transaction, he pointed out. His opinion stated further that Sanders had not exercised ordinery care or due diligence in presenting his claim, as he held the draft for 15 days until the bank closed. It could not be argued that the Charleston bank was the payee, Justice Bonham ruled, as had not received proceeds of any items for collection.
