Hathaway v. Huntley

This is a suit in equity by a trustee in bankruptcy of a bankrupt corporation commenced in 1931 against one of its directors to compel restitution for losses sustained by the corporation through alleged misappropriation of its funds by its treasurer, on the ground that the defendant either knew or ought to have known of such misappropriations and utterly neglected her duty as a director. The corporation was adjudicated a bankrupt upon its own petition filed in June, 1930.

The case was referred to a master. The evidence is not reported. Therefore the findings of fact made by the master must be…