Gottberg v. United States National Bank
New York Supreme Court
The United States National Bank loaned money to John J. Louth individually on a pledge by the latter of bonds which belonged to the estate of Mend-lick Gottberg, deceased, and which had come into Louth’s possession as one of the executors of the estate. The bonds, which had been registered in the names of the executors, were indorsed to the bank by Louth, in the name of both executors, but without the knowledge of his co-executor.
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The United States National Bank loaned money to John J. Louth individually on a pledge by the latter of bonds which belonged to the estate of Mend-lick Gottberg, deceased, and which had come into Louth’s possession as one of the executors of the estate. The bonds, which had been registered in the names of the executors, were indorsed to the bank by Louth, in the name of both executors, but without the knowledge of his co-executor. The bank acted in entire good faith, and without any knowledge of the fact that Louth was executor, as it did not see the bonds until after they had been…
1Opinion of the CourtBarrett, J.
Where one purchases property from a trustee, knowing that the subject is trust property, he is put upon inquiry as to the trustee’s power to change or vary the securities. But one who purchases property from an executor is not necessarily put upon even this inquiry. “On the death of a testator,” says Mr. Perry in his work on Trusts, (section 809,) “the personal estate vests wholly in the executor, and, in order that he may execute his office, the law permits him, with or without the concurrence of my co-executor, to sell or mortgage by actual assignment or equitable deposit, with or without *842a…
2Cases cited5 opinions
- Shaw v. SpencerMassachusetts Supreme Judicial Court · 1868
- Duncan v. JaudonSupreme Court of the United States · 1873
- Field v. SchieffelinNew York Court of Chancery · 1823
- Leitch v. . WellsNew York Court of Appeals · 1872
- Goodwin v. American National BankSupreme Court of Connecticut · 1881
3Cited by2 opinions
- Goodell v. MonroeSupreme Court of New Jersey · 1917
- Farmers & Merchants Bank v. SanfordSupreme Court of Alabama · 1907