Carr's Adm'r v. Morris

Citations

• 85 Va. 21
• 6 S.E. 613
• 1888 Va. LEXIS 4

Syllabus

<p>1. Fiduciaries&emdash;Liability.&emdash;It is well settled that trustees investing trust money in an unauthorized security, are responsible for any future loss traceable to their error.</p> <p>2. Idem&emdash;Case at bar.&emdash;A receiver is ordered by the court to lend a trust fund at six per cent, per annum interest, on bond secured by trust deed on real estate, payable to himself, with interest, recoverable by suit upon default, and entire debt to .be payable upon two successive defaults of interest, and to make report of his actions. He lends this money at eight per cent, per annum, on notes payable to another, secured by trust deed on real estate, and neglects to enforce the debt upon default and to report; the trust money is lost;</p> <p>Held :</p> <p>The receiver is chargeable with the loss, though no bad-faith is shown.</p>