Manhattan Bank of Memphis v. Walker

Citations

• 130 U.S. 267
• 9 S. Ct. 519
• 32 L. Ed. 959
• 1889 U.S. LEXIS 1747

Syllabus

<p>A state bankgave a receipt or certificate, stating that J., agent for W\\, had placed with it, on special deposit, $5200 of railroad mortgage bonds, and a note for $5000. The receipt was sent by the bank by mail directly to W., on the request of J. At the same time the bank entered the nóte • and the bonds in its special deposit book as deposited by J., agent for W. Afterwards, with the concurrence of J., but without authority from W., the bank discounted the note and applied its avails- to pay a debt due to it from a.firm whose business J. managed, and delivered up the bonds-to J., knowing that he intended to pledge them as security to another bank for a loan of money to the same firm. The bank also knew that J. held the note and bonds as investments for W., and that it was not a safe investment to lend their avails to the firm: Held, that the bank was liable to W. for the amount of the note and the value of the bonds.</p> <p>A suit in equity by W. against the bank for the return of the property or the payment of its value, would lie, as it was a suit to charge the bank, as a trustee, for a breach of trust in regard to'a special deposit.</p>