Schuyler v. Littlefield - 232 U.S. 707 (1914)
U.S. Supreme Court
Schuyler v. Littlefield, 232 U.S. 707 (1914)
Schuyler v. Littlefield
Argued January 29, 1914
Decided March 23, 1914
232 U.S. 707
Where one has deposited trust funds in his individual bank account and the mingled fund is at any time wholly depleted, the trust fund is thereby dissipated and cannot be treated as reappearing in sums subsequently deposited to the credit of the same account.
One seeking to charge a fund in the hands of a trustee for the benefit of all creditors as being the proceeds of his property and therefore a special trust fund for him, has the burden of proof, and if he is unable
to identify the fund as representing the proceeds of his property, his claim must fail, as all doubt must be resolved in favor of the trustee, who represents all creditors.
193 F. 24 affirmed.
The facts, which involve determining the relative rights to the bank balance of a bankrupt stockbroker, of the trustee and of a customer whose securities the bankrupt had sold, are stated in the opinion.