Freiberg v. Stoddard

Citations

• 161 Pa. 259
• 28 A. 1111
• 1894 Pa. LEXIS 682

Syllabus

<p>Trusts — Following specific trust funds — Banks.</p> <p>To entitle one claiming to be a trust creditor to preference in the distribution of an assigned estate, he must trace the trust money into some specific property, or into some particular fund or account of the assignor with which the latter has mingled it.</p> <p>Plaintiffs drew a draft on a debtor and indorsed it to the order of a bank for collection. The drawee was a depositor in the bank. The draft was accepted, and the account of the drawee was charged therewith. The bank, which was insolvent at the time, sent to plaintiffs a draft on a bank in another city. Before this draft was presented for payment the bank failed, and made an assignment for the benefit of creditors. It did not appear that the bank received any money as the proceeds of the draft deposited for collection, or that any part of the money in the bank had ever been set apart, or in any manner appropriated to the payment of the draft. Held, that plaintiffs were not entitled to priority of payment before the general creditors of the bank.</p>