Stephen D. Stephens, Respondent v. the Board of Education of the City of Brooklyn, Appellant

Summary

The Court held that a plaintiff cannot recover money that was fraudulently obtained by a third party and subsequently paid to a bona fide creditor for valuable consideration; the creditor's receipt of the money in good faith vests title and shields it from the original owner. Accordingly, the judgment of the lower court was reversed and a new trial was ordered.