In Yeaton v. The Bank of Alexandria, the Supreme Court ruled that a bank had no right to set off debts against deposits made by its customers. This case arose when the plaintiff, John Yeaton, deposited money in the defendant's bank and then borrowed additional funds from it. When he failed to repay his loan on time, the bank attempted to deduct what was owed from his deposit without notifying him or obtaining his consent first. The court held that this action constituted an illegal conversion of Yeaton's property and awarded damages accordingly. In doing so, they established a precedent for protecting customer deposits at banks and other financial institutions from being used as collateral for loans without their knowledge or permission.

In Yeaton v. The Bank of Alexandria, Chief Justice Marshall delivered a dissenting opinion in which he argued that the plaintiff had failed to prove his case and should not be awarded damages. He noted that the bank was established by an act of Congress and as such it could only be sued for its debts or contracts if authorized by law. Furthermore, he argued that even if the bank had acted improperly in this instance, there was no evidence presented to show how much damage had been caused to the plaintiff's property or reputation due to their actions. In conclusion, Chief Justice Marshall stated that without proof of actual injury suffered by Yeaton from any wrongful acts committed by The Bank of Alexandria, there could be no award granted for damages against them.