Document: 352 U.S. 29 377 S.Ct. 119 1 L.Ed.2d 93 BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, Petitioner,v.Gilbert S. PARNELL. Petitioner, v. FIRST IN INDIANA. Nos. 21, 22. Argued Oct. 18, 1956. Decided Nov. 13, Mr. Erwin N. Griswold, for the petitioner in both cases. Edward Dumbauld, Uniontown, Pa., respondent No. 21. Harvey A. Miller, Jr., Pittsburgh, Justice FRANKFURTER delivered opinion of Court. alleging diversity citizenship, brought suit District Court Western Pennsylvania that September and October 1948 two individual defendants, Parnell Rocco, corporate First National Bank Indiana Federal Reserve Cleveland, had converted 7o Home Owners' Loan Corporation bonds which belonged to petitioner. Only are respondents here, since was dismissed, on its motion, after presented case Court, Rocco did not appeal from Court's judgment. 2 At trial it appeared these were bearer with payment guaranteed by United States. They carried interest coupons calling semiannual payment. due mature May 1, 1952, but pursuant their terms, been called or about 1944. On 2, 1944, disappeared while getting them ready presentation In they behalf Rocco. The forwarded Cleveland. It cashed paid Bank, issued cashier's checks Parnell. then turned proceeds over less a fee—there conflicting testimony as whether fee nominal substantial. 3 principal issue at took good faith, without knowledge notice defect title. this judge charged: 4 'As I have indicated, however, case—and if you find plaintiff owned bonds, stolen it—then burden proof so far is concerned show fact, it, lost manner shown evidence. Then bank, claiming be owners value, conducts redemption, must come forward showing acted innocently, honestly, faith. * *' 5 jury verdicts against respondents. appeal, Appeals Third Circuit, seven circuit judges sitting en banc, reversed, three dissenting. held erred treating an ordinary regarding state law governing rights parties proof. 226 F.2d 297. considered our decision Clearfield Trust Co. States, 318 363, 63 573, 87 L.Ed. 838, controlling federal placed lack faith part court further found there no evidence bad 'overdue' matter when therefore directed entry judgment it. ordered new because erroneous instructions. 6 dissenters agreed applying doctrine determine nature contract duties States party private transferees among themselves. They, like majority, looked 'overdue paper' Bank. concluded bank knew call became demand paper unreasonable length time maturity, advanced call. 7 view dissenters, respect thereon. demonstrate sufficient support jury's verdict proving sustained even if, regarded taken 8 Petitioner sought writ certiorari review judgments Appeals. Because determination applicable raised important federal-state relations, we granted certiorari. 350 963, 76 433, 434. 9 suit, based jurisdiction, conversion pieces defined deemed itself which, claim, would govern. See Guaranty New York York, 326 99, 108, 65 1464, 1469, 89 2079. But them, compels application entire case. misconceived litigation holding controlled. recover express guaranty prior endorsements Government check forged endorsement governed law. basis stated unclouded explicitness: 10 'The issuance commercial vast scale transactions will commonly occur several states. law, conflict laws rules forum, subject exceptional uncertainty.' page 367, 575. 11 Securities generate immediate interests Government. These dealt Metropolitan 323 454, 354, 383. also radiate between parties. present purely does touch only possible situation one exclusively involving transfer persons, floating securities might somehow other adversely affected local rule particular State liability converter. This too speculative, remote possibility justify essentially concern. 12 We do mean imply necessarily precludes presence interest, all situations merely parties, beyond range legislation deal comprehensively paper. course foreclose such judicial legislative action appropriate concluding controversy represents transaction where place. governs interpretation obligations created A 'overdueness' holding, need elucidate. 13 conclusion requires reversal reinstatement originally consider points Moreover, light has decided what is, should decide. Likewise, casts assess standard. 14 Circuit reversed cases remanded proceedings conformity opinion. 15 Reversed remanded. 16 BLACK DOUGLAS, 17 believe 'federal merchant' 575, Indeed said 456, 355, 383, 'legal questions involved controversies papers resolved rather than law'. Not until today distinction drawn suits stop there. 'essentially transaction', Yet controlled Thus, govern some portion dispute concern' uncertainties inhere dichotomy obvious. Cf. Southern Pacific Jensen, 244 205, 37 524, 61 1086; Davis Department Labor, 317 249, 225, 246. 18 virtue uniform notes, provides certain definite guide subjecting vagaries many business go uniformity. policy surrounding choice convenience, certainty, definiteness having set government paper, contrasted multiple rules. If abandoned start afresh problem.

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