United States Fid. & Guar. Co. v. Wooldridge, 268 U.S. 234 (1925)

United States Fidelity & Guaranty Company v. Wooldridge

No. 352

Argued April 29, 1925
Decided May 11, 1925
268 U.S. 234

ERROR TO THE CIRCUIT COURT OF APPEALS

FOR THE FIFTH CIRCUIT

Syllabus

1. Where a guaranty company executed a bond guaranteeing the fidelity of the president of a national bank, and another to a depositor of the bank insuring payment of deposit, and the bank thereafter became insolvent through the fraud of the president and the guarantor paid the depositor and took an assignment of the depositor’s claim against the bank with approval of the bank’s receiver, held that this claim could not be set-off by the guarantor as assignee or subrogee in an action by the receiver upon the bond first mentioned. P. 237.

2. The doctrine of relation is a legal fiction invented to promote justice, and never allowed to defeat the collateral rights of third persons. Id.

295 F. 847 affirmed.

Error to a judgment of the circuit court of appeals affirming a judgment of the district court in favor of the receiver of a national bank in an action against the surety of one of its officers.