Commonwealth Ex Rel. Schnader v. National Surety Co.

Opinion by

Mr. Justice Horace Stern,

The problem in this case, though superficially complicated, readily lends itself to solution by the application of well-recognized equitable principles.

On February 28,1933, Commercial National Bank of Philadelphia placed itself on a limited withdrawal basis and refused to honor the checks of its depositors: thereupon a Receiver was appointed to liquidate its affairs. Among the depositors were receivers and trustees in various bankruptcy proceedings who had on deposit in the bank sums totaling approximately $100,000. These funds were protected by two surety…