Green v. Title Guarantee & Trust Co.

Headnote

Bonds — trustees — negligence — action by bondholder against trustee to recover for alleged negligence in failing to include certain properties in mortgage and in so drafting instrument that it was subsequently declared void as to creditors.

Green v. Title Guarantee & Trust Co., 223 App. Div. 12 , affirmed.

Appeal from a judgment, entered March 28, 1928, upon an order of the Appellate Division of the Supreme Court in the first judicial department, reversing a judgment in favor of plaintiff entered upon a verdict and directing a dismissal of the complaint. The action was to recover for the alleged negligence of the defendant in failing to include in an indenture of mortgage on which corporate bonds were issued certain properties and in so drafting the instrument that the mortgage was subsequently declared void as to creditors, so that bonds so issued and held by plaintiff were not entitled to priority over other claims against the issuing corporation.