Rector v. City Deposit Bank Co. - 200 U.S. 405 (1906)
U.S. Supreme Court
Rector v. City Deposit Bank Co., 200 U.S. 405 (1906)
Rector v. City Deposit Bank Company
Submitted December 12, 1905
Decided February 19, 1906
200 U.S. 405
Where a trustee in bankruptcy seeks to recover in a state court what is asserted to be an asset under the bankrupt law, the denial of the asserted right is a denial of a right or title specially claimed under a law of the United States, and presents a federal question reviewable in this Court by writ of error under § 709, Rev.Stat.
While a certificate of a court of last resort of a state may not import into a record a federal question not otherwise existing, such certificate serves to elucidate whether such federal question does exist.
While this Court is bound by the facts found by a state court, where that court does not find the facts, but instructs a verdict on the ground that the evidence justifies no other verdict, a question of law, reviewable by this Court, is raised as to whether the jury could have found otherwise under any reasonable view of the evidence.
Where a bank fails and the clearing house, having notice of such failure, returns all of the debit items to the other banks, it cannot apply the credit item to payment of claims of other banks against the insolvent bank; under the provisions of the Bankrupt Act forbidding preferences, it is its duty to pay those funds over to the trustee in bankruptcy.
See also Rector v. Commercial National Bank, post, p. 200 U. S. 420.
The facts are stated in the opinion.