UNITED STATES SUPREME COURT DECISIONS ON-LINE

A bank, receiving on deposit from a factor, under the circumstances set forth in this case, moneys which it must have known were the proceeds of property of the factor's principal, consigned to him by the principal clubjuris

Page 137 U. S. 412

for sale on the principal's account, of which moneys the principal was the beneficial owner, cannot, as against the latter, appropriate the deposits to the payment of a general balance due to the bank from the factor, and if it attempts to do so, the remedy of the principal against the bank is in equity, and not at law.

Chapman v. Forsyth, 2 How. 202, and Hennequin v. Clews, 111 U. S. 676, distinguished from this case.