Corn Exchange National Bank v. Solicitors' Loan & Trust Co.

Citations

• 188 Pa. 330
• 41 A. 536
• 1898 Pa. LEXIS 612

Syllabus

<p>Banks and banking — Insolvency—Depositors—Trust.</p> <p>The acceptance of a deposit by an insolvent bank is a fraud upon the depositor, and if the money has not been used or mixed with the common funds, and can be identified, the depositor may maintain replevin for it.</p> <p>Banks■ and banking — Insolvency—Misrepresentation—Check— Trust— Equity.</p> <p>Equity has jurisdiction of a suit for restoration of a package of money which is impressed with a trust, and the title to which remains in plaintiff because possession of it was obtained by clearly implied misrepresentations as to solvency.</p> <p>A teller of a trust company which was at the time insolvent requested, by telephone, from a bank a number of small notes, and on a favorable response the teller sent the trust company’s check for the amount of the notes on another bank, where it had funds to meet it, by a messenger, who returned with the notes put up in packages. The bank was not a depositor of the trust company, and sent the notes merely as an accommodation, and without charge. Early on the following day the trust company, without opening its doors, made an assignment for creditors. The check was sent through the clearing house, but the bank upon which it was drawn having notice of the assignment refused to pay it. The notes remained in the packages unopened and passed into the hands of the assignee. A bill in equity praying for a decree for the return of the notes was filed against the assignee by the bank which had sent the notes to the trust company. Held, (1) that the jurisdiction of equity was sustainable because the package of money was impressed with a trust, the possession having been obtained by a plainly implied misrepresentation; (2) that the bank was entitled to a return of the packages containing the money.</p>