Studley v. Boylston National Bank
Citations
- 229 U.S. 523
- 33 S. Ct. 806
- 57 L. Ed. 1313
- 1913 U.S. LEXIS 2467
Syllabus
<p>Nothing in the Bankruptcy Act deprives a bank with which the insolvent is doing business of the rights of any other creditor taking money without reasonable cause to believe that a preference will result.</p> <p>In this case it having been found that the deposits and payments of notes were not made to enable the bank to secure a preference by the right of set-off, the bank had a right under its agreement to set off the deposits against the notes within four months of the bankruptcy. New York County Bank v. Massey, 192 U. S. 138.</p> <p>Section 68a of the Bankruptcy Act did not create the right of set-off but recognized its existence and provided a method for its enforcement even after bankruptcy.</p> <p>The right of set-off is recognized by the Bankruptcy Act and it cannot be taken away by construction because of possibility of its abuse; nor will the act be so construed by denying such right as to make-banks hesitate to carry on business and thus produce evils of serious consequence.</p>
How courts have described this case
Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.
- noting that setoff requires that “each debt be valid and enforceable”
- right of setoff \grounded on the absurdity of making A pay B when B owes A\
- right of setoff “grounded on the absurdity of making A pay B when B owes A”
- right to offset is “grounded on the absurdity of making A pay B when B owes A”
- prepetition setoff approved notwithstanding lack of mutuality in due dates because setoff would be permissible postpetition
- right to offset is “grounded on the absurdity of making A pay B when B owes A”
Source: CourtListener parenthetical corpus (CC0).
Judges: Lamar
Read full opinion on CourtListenerSourced from CourtListener / Free Law Project (CC0).
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