Bank of America Nat'l Trust & Sav. Ass'n v. Parnell
United States Supreme Court
352 U.S. 29 (1956)
In 1944, while Bank of America National Trust & Savings Association (B of A) (plaintiff) was preparing to submit bearer bonds to the Federal Reserve Bank for payment, the bonds disappeared. In 1948, Parnell (defendant), acting on behalf of Rocco (defendant), presented the bonds to First National Bank in Indiana (First National) (defendant). First National forwarded the bonds to the Federal Reserve Bank of Cleveland (FRB Cleveland) (defendant), which cashed them and paid First National. First National paid Parnell who then transferred the proceeds to Rocco minus a fee. On the basis of diversity, B of A filed an action for conversion against Parnell, Rocco, First National, and FRB Cleveland in Pennsylvania federal district court. Applying state law, the court instructed the jury that defendants bore the burden of proof that they had taken the bonds in good faith. The jury returned verdicts in favor of B of A. On appeal, the court of appeals ruled that federal, not state, law applied and that pursuant to Clearfield Trust Co. v. United States, 318 U.S. 363 (1943), B of A bore the burden of proof to show that defendants had notice and acted in bad faith. B of A petitioned the United States Supreme Court for certiorari.
Rule of Law
Holding and Reasoning (Frankfurter, J.)
Dissent (Black, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 166,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,800 briefs, keyed to 187 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.