Erie Railway Co. v. Vanderbilt
New York Supreme Court
Appeal by plaintiff from a judgment entered on the decision of tide court dismissing the complaint. Officers of corporations to whom the care and management of the corporate property is by law confided, are trustees of that property, bound by the strictest rules of law to execute their trust literally, intelligently and honestly, and to that end to devote the corporate property to its appropriate and intended uses, and none other.
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Appeal by plaintiff from a judgment entered on the decision of tide court dismissing the complaint. Officers of corporations to whom the care and management of the corporate property is by law confided, are trustees of that property, bound by the strictest rules of law to execute their trust literally, intelligently and honestly, and to that end to devote the corporate property to its appropriate and intended uses, and none other. (Perry on Trusts, § é30; Morrett v. Paske, 2 Atk., 82; Powell v. Glover, 3 P. Wms., 251; Great Luxemburg Ry. Go. v. Magnay, 25 Beav., 586; Chaplin v. Young, 33 id.,…
1DissentDaNiels, J.
The object of this action was to rescind and annul the purchase or redemption of 50,000 shares of the plaintiff’s stock, and the recovery of the consideration paid for the same. It appeared by the evidence, that the defendant and other persons acting with him were engaged in buying the stock of the Erie Railway Company, late in the year 1867, and early in the year 1868, during which period he purchased it to the extent of $10,000,000, par value. The effect of the purchases, as they advanced, was to enhance the market-price of the stock; and during their progress the plaintiff issued…
2Cases cited5 opinions
- Bruff v. . MaliNew York Court of Appeals · 1867
- Stewart v. AhrenfeldtNew York Supreme Court · 1847
- Farmers' Bank of Amsterdam v. BlairNew York Supreme Court · 1865
- Adams v. . SageNew York Court of Appeals · 1863
- Palmer v. NorthNew York Supreme Court · 1861