Philadelphia Nat. Bank v. Dowd

Citations

• 38 F. 172
• 2 L.R.A. 480
• 1889 U.S. App. LEXIS 2803

Syllabus

<p>1. Banks and Banking — -Collections—-Insolvency—Right to Follow Trust Funds.</p> <p>Plaintiff sent to defendant's bank paper indorsed “For collection and immediate return” to plaintiff, and tbe paper was collected, and the proceeds mingled with other moneys of the bank, instead of forwarded to plaintiff. The bill contained an uncontroverted allegation that defendant’s bank, at all times subsequent to the collection and at the time of defendant’s appointment as receiver, had on hand cash to a greater amount than that due plaintiff. The bill asked to have the balance due plaintiff paid in full on the ground that the bank by receiving the paper for collection and immediate return became a trustee, and that either its entire property or the money in its vaults became impressed with the trust. Held that, if the mingling of the funds was a breach of trust, it was a conversion; and plaintiff became a simple contract creditor, with no preference at law.</p> <p>2. Same.</p> <p>R was immaterial whether or not the bank stood in a fiduciary capacity to plaintiff, as tlic facts stated in the bill showed that the money collected could not be traced into any specific investment or fund, but had been indistinguishably mingled with the general assets.</p>