Nivin v. Chester County Trust Co.

Citations

• 231 Pa. 315
• 80 A. 534
• 1911 Pa. LEXIS 840

Syllabus

<p>Corporations — Negligence—Trusts and trustees — Corporation bonds — ■ Cancellation of security — Estoppel.</p> <p>In an action by the holder of certain corporate bonds against the trustee, holder of the mortgage security, for damages for the unauthorized satisfaction of the mortgage, a verdict for the plaintiff was sustained where it was conceded that plaintiff left his bonds with the defendant with the mutual understanding and direction that they were not surrendered; that they were to be paid before the mortgage securing them would be satisfied; and that the defendant satisfied the mortgage because its officer, through a failure to recall the facts, was under the impression that the bonds had been surrendered: and the evidence discloses nothing in the defendant’s course of conduct, nothing in the negotiations preceding the sale, in the contract of sale, or resolution thereafter enacted for the satisfaction of the old mortgage, that deprived the plaintiff of his right to enjoy the protection of the mortgage securing his bonds.</p>