Freiberg v. Stoddard
Freiberg v. Stoddard
Opinion of the Court
We concur in the conclusions reached by the learned master and the court below. If at the time of the assignment the plaintiffs’ notes had been found by the assignee uncollected, he should have returned them. If a draft or bond or a specific package of money received in paj^ment of the notes had been found among the assets coming into his hands, it should have been turned over to the plaintiffs. But neither the notes, nor any security nor sum of money received in payment of them came into his hands. He holds nothing which he or the plaintiffs can identify with the notes or trace as a payment of them. This is clearly pointed out in the opinion of the learned judge of the court below, and we think the case may very properly be affirmed upon his opinion.
The judgment is affirmed.
Reference
- Full Case Name
- Freiberg v. Stoddard, Assignee of Rockafellow & Co.
- Cited By
- 21 cases
- Status
- Published
- Syllabus
- Trusts — Following specific trust funds — Banks. 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. 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.