Drovers' & Mechanics' National Bank v. Roller

Citations

• 85 Md. 495
• 36 L.R.A. 767
• 37 A. 30
• 1897 Md. LEXIS 54

Syllabus

<p>following Trust Funds — Agency—Assignment for Benefit of Creditors — Money Collected from Sales by Commission Merchants and Spent Before Assignment for Benefit of Creditors is Made —Rights of Creditors of Party ¡folding Funds in Fiduciary Capacity — Partnership—Share of Profits.</p> <p>When goods are consigned to a commission merchant for sale, the title does not vest in the latter but remains in the consignor, and the money arising from a sale oí them is the money, not of the agent, but of the owner of the consigned property. Hence, whenever such money can be traced it may be claimed by its owner; and if the agent makes an assignment for the benefit of creditors the trustee thereunder can have no greater right to the money than his grantor had.</p> <p>If money held by a person in a fiduciary character is paid by him to his account at his banker’s, the person for whom he held the money can follow it and has a charge on the balance in the banker’s hands. And if a person who holds money in a fiduciary character pays it to his account at his banker’s, and mixes it with his own money, and afterwards draws out sums by checks in the ordinary manner, the drawer must be taken to have drawn out his own money in preference to the trust money.</p> <p>But when the money received by a fiduciary has been spent or dissipated by him in the payment of his other debts, and upon his becoming insolvent there is no balance at his banker’s, the cestui que trust or owner of such money has no lien for the same upon the general assets of the debtor in preference to his other creditors, because in such case the trust funds do not remain in the insolvent estate and go to swell it.</p> <p>A shipped goods to commission merchants for sale ; they sent to A a check on a bank for the amount of the net proceeds of the sale of a part of the goods. Before this check was presented for payment, the commission merchants made an assignment for the benefit of creditors, and there were at that time- no f