In re the Assignment of Petchell
New York Court of Common Pleas
Application to confirm the report of a referee upon an accounting by an assignee under a general assignment for the benefit of creditors. The facts are stated in the opinion.
1Opinion of the CourtVan Hoesen, J.
The assignee was not acting in the line of his duty when he borrowed money, hired clerks, hired shops, and bought goods for the purpose of carrying on the business which the assignor had formerly conducted. All the *103purchases and the profits or the losses which resulted from them are to be thrown out of consideration in making up the account. The assignee- cannot engage in business at the risk of the estate. If he uses the money of the estate in his business he is liable to the same penalties that are inflicted upon other trustees who use trust funds for their private benefit. If they embark…
2Cited by1 opinion
- In re Ripsom & Newland Fur Co.New York Supreme Court · 1900