Bank v. Turnbull & Co. was a case heard by the United States Supreme Court in 1872. The case involved a dispute between a bank and a company over a loan. The bank had loaned money to the company, but the company had failed to repay the loan. The bank sued the company for the money, but the company argued that the loan was invalid because the bank had not complied with certain state laws. The Supreme Court ruled in favor of the bank, finding that the loan was valid and that the bank was entitled to repayment. The Court held that the state laws in question did not apply to the loan, as the loan was made in another state. The Court also held that the bank had acted in good faith and had not acted fraudulently or negligently. The Court's decision in Bank v. Turnbull & Co. established that state laws do not apply to loans made in other states. It also established that banks are entitled to repayment of loans made in good faith. This decision has been cited in numerous cases since then, and it remains an important precedent in the area of banking law.

In Bank v. Turnbull & Co, the Supreme Court was tasked with determining whether a bank could be held liable for failing to pay out on an accepted check due to insufficient funds in the account of the person who wrote it. The majority opinion found that banks were not liable for such losses, as they had no contractual obligation to do so and did not have any knowledge of their customer’s financial situation when accepting checks from them. However, Justice Field dissented from this decision and argued that banks should bear some responsibility for these losses since they are aware of their customers’ accounts at all times and can easily determine if there is sufficient money in those accounts before cashing a check or issuing payment against it. He further noted that banks often advertise themselves as reliable institutions where people can safely deposit their money without fear of loss; thus, he believed that allowing them to avoid liability would undermine public confidence in banking services overall.