John Cragie, Respondents v. Sterling G. Hadley, as Receiver

Summary

The Court affirmed the judgment for the plaintiffs, holding that a bank, as a corporation, may be liable for fraud and that plaintiffs who were induced to deposit drafts can rescind the contract and recover their property despite the bank's insolvency. The Court further held that the bankruptcy statutes prohibiting preferential transfers do not bar the plaintiffs' claim because they seek to reclaim their original title, not to enforce a creditor claim.