Tracy v. Central Trust Co

192 A. 869 (1937)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Defendant, having in its banking department and owning in its own right certain mortgages, sold them to the trust estate of Tracy of which it was one of the trustees and received from the trustees’ funds of the estate in payment thereof. The amount of the mortgages was $203,380. Under his will, decedent created a trust, the income was payable to his wife for life, principal in the main to named charities. The court found that Plaintiffs participated in the purchases of the mortgages and knew that the trust company owned them. There is no question of bad faith on the part of defendant. This proceeding in equity sought to compel the bank to take back the mortgages and to substitute the money it received for them. The bank obtained them by foreclosure. The trial court dismissed the bill in equity. This appeal resulted.