Fulton v. Escanaba Paper Co.

The claimants in these cases can prevail on one ground only, that they are owners of the funds they claim, either in law or in equity. They cannot prevail as preferred creditors. They fall within none of the classes of creditors which the law prefers in the distribution of an insolvent’s assets, and must therefore fail if they occupy the position of creditors at all.

Were they owners? Did they continue to own the funds deposited by them in the trust department of the bank, or had title passed from them in exchange for the bank’s obligation to pay to them or to their designees equivalent sums?

Bo…