Latzko v. Equitable Trust Co. - 275 U.S. 254 (1927)
U.S. Supreme Court
Latzko v. Equitable Trust Co., 275 U.S. 254 (1927)
Latzko v. Equitable Trust Company
Nos. 48 and 49
Argued October 19, 1927
Decided November 21, 1927
275 U.S. 254
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. 275 U. S. 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. 275 U. S. 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.