General Motors Acceptance Corp. v. Larson

Bigelow, V. C.

I will first take up the mortgages. Meding, the mortgagee named, claims no interest in them. He readily admits that he was a trustee for the refrigerating company. Now, as to the title of the acceptance corporation.

When the refrigerating company, by fraud, obtained from the acceptance corporation first $24,714.07 and then $9,456, it became, by operation of law, a trustee for these monejrs; the beneficial title remained in the acceptance corporation. Ashby v. Yetter, 79 N. J. Eq. 196. The rule that the ceslui que trust may follow the trust property in whatever form it assumes is…