Trustee accountable for profits
Defined in 1 dictionary — Case Law
Definitions from Case Law
From 57 U.S. 535 - Mary Barney by Her Next Friend Maxwell Woodhull v. David Saunders Roger C Weigtman and Samuel C Barney · 1853Most cited · 67 citing opinions
It is a well-settled principle of equity, that wherever a trustee, or one standing in a fiduciary character, deals with the trust estate for his own personal profit, he shall account to the cestui que trust for all the gain which he has made. If he uses the trust money in speculations, dangerous though profitable, the risk will be his own, but the profit will inure to the cestui que trust . Such a rule, though rigid, is necessary to prevent malversation.