Leary v. United States,
224 U.S. 567 (1912)

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U.S. Supreme Court

Leary v. United States, 224 U.S. 567 (1912)

Leary v. United States

No. 508

Argued April 29, 30, 1912

Decided May 13, 1912

224 U.S. 567


In a suit brought by the United States to charge the defendant with a trust in respect to funds obtained by another through fraud against the United States, held that the personal representative of a third party claiming an interest in the funds under an agreement indemnifying him as bail of the party fraudulently procuring such funds was, under the circumstances of this case, entitled to intervene.

A contract that certain specific assets in the hands of a trustee should be held as security for a specific contingent claim is necessarily express, and is nonetheless so if conveyed by acts importing it than if stated in words.

Where the intervenor has not legal title and is not claiming against an admitted prior equity as a purchaser without notice, allegations of ignorance of facts not admitted and not finally established are not essential.

Bail no longer is the mundium, and distinctions between bail and suretyship are nearly effaced. Quaere whether a contract to indemnify bail which is legal by statute in New York where made is void as against the public policy of the United States.

Page 224 U. S. 568

In this case, as the intervenor did not know of the suit or the position taken by defendant, who was legally her trustee, she should not be held guilty of laches.

184 F. 433 reversed.

The facts are stated in the opinion.

Page 224 U. S. 573

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