Croisant v. Watrud

248 Or. 234, 432 P.2d 799 (1967)

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Nature of the Case

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Facts

Ds engaged in an accounting practice and held two offices, D Watrud was in charge of the Medford office. Croisant (P) was an owner of sawmill, timberlands and other property. In 1955, P employed the firm of Ds to advise her on tax matters and to prepare income tax returns for her business. In 1956, P sold her sawmill. Thereafter her business consisted of collection under the contract for the sale of mill, sale on timber rents and various disbursements. Subsequently, P moved to California and instructed Watrud to perform all of those activities, keep her financial books in order and prepare her financial statements and tax returns. The money collected were deposited in the account of the Lloyd Timber CO. in a Grants Pass bank. In 1957, P learned that D Watrud made unauthorized payments to P's husband. D was instructed not to make the payments, but the instructions were violated. D Watrud had continued to pay money to P's husband, and he had drawn a check payable to himself. Trial court held that the trust was independent trustee employment separate from activities of the partnership. P's appeals from a decree in favor of the defendants.