TRUSTS -- SELF-DEALING OF THE TRUSTEE -- RIGHT TO LOOK THROUGH THE CORPORATE ENTITY

Authors

Abstract

One Northrop was appointed by the court as guardian, receiving $2,500 which he deposited in defendant bank of which he was the president, the general manager, and of which he was in complete control. Subsequently he exchanged this deposit for a mortgage owned by the bank. The bank became insolvent, and plaintiff, as substituted trustee, brought this action to have a preference adjudged out of the bank's assets in favor of the ward. Held, plaintiff could ignore the mortgage transaction but could only claim as a general creditor of the bank. Ottawa Banking and Trust Co. v. Crookston State Bank (Minn. 1931) 239 N. W. 666.

Recommended Citation

TRUSTS -- SELF-DEALING OF THE TRUSTEE -- RIGHT TO LOOK THROUGH THE CORPORATE ENTITY, 30 Mich. L. Rev. 982 (1932).
Available at: https://repository.law.umich.edu/mlr/vol30/iss6/31