Christian County v. Edward D. Jones and Company, L.P.

Summary

The Supreme Court of Missouri reversed summary judgment for Christian County in its action against Edward D. Jones & Co., L.P. concerning county funds deposited into a brokerage account by the county treasurer. The court held that Missouri law did not authorize the county to invest funds through Edward Jones, but concluded that Edward Jones was not liable for a second payment because it had disbursed the funds to the serving county treasurer before his malfeasance was known. The case was remanded.

Holdings

1. Christian County had no lawful authority under chapter 110 to deposit or invest county funds through Edward Jones because Edward Jones was a brokerage, not a banking corporation or association eligible to serve as a county depositary, and was not a federally insured institution eligible under section 110.270.
2. The account established with Edward Jones was void ab initio because the County did not comply with the statutory requirements governing the transfer and investment of public funds.
3. Edward Jones was not required to pay the County a second time because it paid the funds directly to Melton while he was still serving as county treasurer and acting as the County's statutory agent for receipt and disbursement of county funds.

Questions Presented

1. Whether Christian County was authorized under chapter 110, RSMo, to deposit or invest county funds through Edward D. Jones & Co., L.P., a brokerage rather than a banking corporation or federally insured institution.
2. Whether the circuit court properly entered summary judgment requiring Edward Jones to pay the County for funds that it had transferred to the serving county treasurer at his direction.
3. Whether the Court needed to address the County's prejudgment-interest award and Edward Jones's waiver and estoppel defenses after reversing the judgment.

Disposition

reversed_and_remanded