Latzko v. Equitable Trust Co., 275 U.S. 254 (1927)

Please note: this case begins in mid-page. It therefore shares a citation with the last page of the previous case. If you are attempting to follow a link to the last page of 275 U.S. 248, click here.

Latzko v. Equitable Trust Company

Nos. 48 and 49

Argued October 19, 1927
Decided November 21, 1927
275 U.S. 254

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE SECOND CIRCUIT

Syllabus

Claimants, who were bankers of Budapest, desiring to procure credit with a New York banking firm (the bankrupts herein) with which they had a checking account, procured to be deposited with it (1), a cashier’s check of a New York bank payable to the bankrupt’s order, "favor" of claimants, and (2), a check of another New York banker drawn on its account with the bankrupt and payable to the bankrupt’s order accompanied by a letter stating that it was "for account of" the claimants. The bankrupts immediately credited both checks to the claimants, but they were not collected until after the bankruptcy petition had been filed on the following day.

Held, following Equitable Trust Co. v. Rochlin, ante p. 248, that the effect of the words "favor" and "for account of" was not to make the bankrupts agents for collection, but was to indicate the account to be credited; that ownership of the checks passed to the bankrupts, and that claimants were only general creditors. P. 256.

10 F.2d 935 reversed in part and affirmed in part.

Certiorari, 271 U.S. 654, to a judgment of the circuit court of appeals, which affirmed in part and reversed in part, a judgment of the district court dismissing a petition for reclamation of funds traced into the hands of a trustee in bankruptcy.