Davis v. . Stover

Decided October 6, 1874

New York Court of Appeals · decided 1874-10-06

This action was brought by plaintiff as receiver of the Ocean National Bank of the city of New York, upon four promissory notes, executed by defendant Brown as maker, and defendant Stover as indorser, held by said bank. Defendant Stover, alone was served. He set up as a counter-claim, a claim for services rendered by him upon the employment of plaintiff as receiver for the benefit of the estate.

Good law ✅— No negative treatment on recordhow we know

Decided 1874-10-06

How this case has been cited

Cited by 5 later decisions — most recently April 1935

5 state decisions

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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Rapallo, J.

¶1 It is well established, that a receiver, executor or trustee, has the right to defray, out of the trust fund in his hands, expenses necessary for its protection, and where a debtor to the estate is employed to perform necessary services for its benefit, we see no objection to the trustee or receiver applying to the payment of the expense thus incurred the demand which he, as receiver or trustee, had against the person employed. The same result could be accomplished by paying the party for his services and immediately taking back the money so paid in satisfaction of the debt due to the estate. This would seem an idle ceremony. In either case the true point of inquiry would be the propriety and bona fides of the expenditure and the reasonableness of the amount paid.

¶2 The judgment should be reversed and a new trial ordered, with costs to abide the event.

¶3 All concur.

¶4 Judgment reversed.