Farmers State Bank v. Jones

Full title: FARMERS STATE BANK v. Morris W. JONES, Trustee In Bankruptcy for Zaepfel…

Court: Circuit Court of Appeals, Sixth Circuit

Date published: Feb 15, 1943

135 F.2d 215 (6th Cir. 1943)

Opinion

Nos. 9140, 9141.

February 15, 1943.

Appeals from the District Court of the United States for the Western District of Kentucky; Shackelford Miller, Jr., Judge. In 9141:

Leo T. Wolford and Bullitt Middleton, both of Louisville, Ky., and D.E. Wooldridge, of LaGrange, Ky., for appellant First State Bank.

D.A. Sachs, Jr., and Burwell K. Marshall, both of Louisville, Ky., for appellees.

In No. 9140:

Leo T. Wolford and Bullitt Middleton, both of Louisville, Ky., M.J. Hennessey, of Augusta, Ky., and D.E. Wooldridge, of LaGrange, Ky., for appellant.

D.A. Sachs, Jr., and J.H. Gold, both of Louisville, Ky., for appellees.

Before SIMONS, HAMILTON, and McALLISTER, Circuit Judges.

PER CURIAM.

It appearing that the claims of both banks assert an equitable lien to the reserved percentage of a building contract in the hands of the Trustee, superior to the lien of the surety for the contractor and it being the view of the court that the cases may not be distinguished from that adjudicated by us in Farmers' Bank v. Hayes, 6 Cir., 58 F.2d 34, upon the authority of Prairie State Bank v. United States, 164 U.S. 227, 17 S.Ct. 142, 41 L.Ed. 412, and other cases; and it being also the view of the court that there is no merit to the contention of the First State Bank that it has a set-off against funds on deposit with it at the time of the adjudication in bankruptcy, because such funds were never the property of the contractor: It is ordered that the judgments below, 49 F. Supp. 709, be and they are hereby affirmed.