Legal Opinion
Davis v. Wells Fargo & Co. (In Re Haynes)
United States Bankruptcy Court, D. Arizona
Decided April 21, 2004No. Bankruptcy No. 2-00-01858-PHX-RJH. Adversary No. 02-00135Published
1Opinion of the Court
OPINION
RANDOLPH J. HAINES, Bankruptcy Judge.
The Court must here determine whether a debtor’s depository bank may exercise a setoff right to apply a debtor’s deposit toward an unsecured obligation owed to the bank, when the debtor deposited the funds with specific direction that they be applied to reduce another, secured debt owed the bank. The Court concludes that the bank’s setoff is avoidable by the trustee.
Background Facts
On December 30, 1999, Victoria Haynes deposited $24,775.33 into her checking account at Wells Fargo Bank (the “Bank”). 1 She instructed the Bank to apply these funds to…
2Cases cited7 opinions
- R. Anthony Dubay v. Everette H. Williams, Everette H. Williams v. Rose City Development Co., Inc., Robert J. Davis v. Everette H. WilliamsCourt of Appeals for the Ninth Circuit · 1969
- United States v. Butterworth Judson Corp.Supreme Court of the United States · 1925
- Nicholas Kassbaum, AKA Nick St. Nicholas v. Steppenwolf Productions, Inc. Steppenwolf, Inc. Joachim Fritz Kreudeldat, AKA John KayCourt of Appeals for the Ninth Circuit · 2000
- Sohappy v. HodelCourt of Appeals for the Ninth Circuit · 1990
- Union Trust Co. of Maryland v. PeckCourt of Appeals for the Fourth Circuit · 1927
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