Hover v. Genesee Valley Trust Co.

The chief question on this appeal is whether the contract under which the trustee sold the wines imposed the risk of a net loss upon the bankrupt estate or upon the bank, as pledgee. If the bank had itself sold the wines, as presumably the agreement gave it power to do, it could not have charged the estate with such a loss; its expenses would have been on its own account, and the estate would suffer only to the extent of wiping out all credit upon the bank’s claim. We can find nothing in the agreement to shift this risk; on the contrary the Fifth Article expressly provides “that all expenses…