National Bank v. Graham - 100 U.S. 699 (1879)
U.S. Supreme Court
National Bank v. Graham, 100 U.S. 699 (1879)
National Bank v. Graham
100 U.S. 699
1. A national bank is liable for damages occasioned by the loss, through gross negligence, of a special deposit made in it with the knowledge and acquiescence of its officers and directors.
2. Gross negligence on the part of a gratuitous bailee, though not a fraud, is in legal effect the same thing.
3. The doctrine of ultra vires has no application in favor of corporations for wrongs committed by them.
4. Sec. 5228 of the Revised Statutes, which provides that it shall be lawful for a national bank after its failure to "deliver special deposits," is as effectual a recognition of its power to receive them as an express declaration to that effect would have been.
5. The phrase "special deposits," so employed, embraces the public securities of the United States.
The facts are stated in the opinion of the Court.