Aetna Life & Casualty Co. v. Union Trust Co.

The principal issue in this appeal is whether, under the circumstances of this case, a bank is liable to a trust beneficiary for obeying the fiduciary’s instruction to transfer funds out of the fiduciary’s general trust account in payment of the fiduciary’s personal obligation to the bank. The defendant, Union Trust Company, appeals1 from the judgment of the trial court holding it liable to the subrogee of the trust beneficiary for participation in a breach of trust. The plaintiff, Aetna Life and Casualty Company,2 in addition to claiming that the trial court was correct, proposes as…