Barroll v. Forman

Citations

• 88 Md. 188
• 40 A. 883
• 1898 Md. LEXIS 179

Syllabus

<p>Ratification of Auditor's Account — Liability of Co-trustees —Misappropriation of Money by one Trustee — Lin-authorized Payments to One of Two Trustees — Bona Fide Purchaser of Promissory Note — Liability of Bank for Aiding Trustee in Breach of Trust.</p> <p>An order finally ratifying an auditor’s account is conclusive as to the matters in controversy and can be vacated or revised only in the same manner as other decrees may be.</p> <p>After the ratification of an auditor’s account, distributing funds received from the sale of property, a subsequent order, directing an account to be stated of all the funds in the case, does not rescind the first order of ratification.</p> <p>When one of two trustees appointed to sell property authorizes his co-trustee to receive the money paid by the purchasers, confirms his acts in that respect and consents to the ratification of an auditor’s report distributing the sums so paid, he is responsible for a misappropriation of the money by his co-trustee and is estopped from asking to have the audit revoked so as to throw the loss on the purchasers of the property.</p> <p>When one of two trustees authorizes his co-trustee to receive money due to the estate, the persons making the payments are under no obligation to see that the money is deposited to the joint account of both trustees.</p> <p>When a promissory note, payable to two trustees, is used by one of them in payment of his individual debt, by his unauthorized endorsement of the other trustee’s name, the person receiving the note is chargeable with the same to the trust estate.</p> <p>A purchaser of property from two trustees, gave to one of them, in payment, a note of a third person payable to his order and endorsed in blank. The trustee receiving the note sold the same, in breach of trust, to a bona fide purchaser before maturity. Held, that the purchaser of the note acquired a valid title thereto.</p> <p>Property was sold by two trustees under a decree which provided that t