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In re Erie Trust Co.

Pennsylvania Supreme Court
191 A. 613 (1937)


The Erie Trust Co. (the Company) (defendant) served as the trustee of the estate of W.W. Gingrich (the Estate) (plaintiff). The Company improperly withdrew $25,819.80 as commissions from the Estate. The funds were placed in the general cash funds of the Company. Between the removal of the funds from the Estate and the institution of this action, the lowest cash balance in the general bank account was $2,865.40. The Company also maintained other cash items of $1,937.63 and deposits in other banks, which had a lowest cash balance of $6,373.23 during the same period. The Company used some of the funds to purchase certain securities, including bonds and a mortgage. The Company became insolvent and was appointed a receiver. The Estate sought to have priority for the funds improperly taken over other creditors of the Company. The trial court denied the request, and the Estate appealed to the Pennsylvania Supreme Court.

Rule of Law


Holding and Reasoning (Stern, J.)

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