Bank of Marin v. England
United States Supreme Court
385 U.S. 99 (1966)
- Written by Steven Pacht, JD
Facts
England (plaintiff) was the trustee for a bankrupt debtor. The debtor maintained a checking account with the Bank of Marin (bank) (defendant). The debtor wrote certain checks before voluntarily filing for bankruptcy; the bank honored the checks after the debtor filed for bankruptcy. However, the bank did not know about the debtor’s bankruptcy when it honored the checks. England sued the bank, seeking payment in the amount of the checks that were honored after the bankruptcy. The court of appeals ruled that, pursuant to the Bankruptcy Act, the debtor’s checking accounts were instantly frozen as a matter of law. The court of appeals thus reasoned that the trustee—who was vested with the debtor’s rights as of the date of the bankruptcy filing—was entitled to recovery against the bank. The bank appealed.
Rule of Law
Issue
Holding and Reasoning (Douglas, J.)
Dissent (Harlan, J.)
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