Elliott v. Attaway

PARKER, Circuit Judge.

This is an appeal by the receivers of the failed People’s State Bank of South Carolina, from a decree adjudging the claim of the creditors’ committee of the Mann Electric Supply Company to be a preferred claim and entitled to payment from assets in the hands of the receivers ahead of the claims of general creditors. The learned judge below was of opinion that in handling funds for the auditors’ committee the bank was acting in a. fiduciary capacity; that a trust existed with respect to moneys deposited by that committee; and that these moneys had been traced into the…