Buffum v. Peter Barceloux Co., 289 U.S. 227 (1933)
U.S. Supreme Court, (April 10, 1933)
Docket number: 564
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RSSU.S. Court of Appeals for the 2nd Cir. - Ashley S. Orr, Receiver of American Partners, Inc., Plaintiff-Appellee-Cross-Appellant, v. Kinderhill Corporation; Thomas A. Martin; Kinderhill Investment Company; Virginia S. Martin and Vincent Teahan, as Trustee of a Thomas A. Martin Trust, Defendants, Key Bank of Eastern New York, Defendant-Appellant-Cross-Appellee., 991 F.2d 31 (2nd Cir. 1993) Receiver of American Partners, Inc., Plaintiff-Appellee-Cross-Appellant, v. Kinderhill Corporation; Thomas A. Martin; Kinderhill Investment Company; Virginia S. Martin and Vincent Teahan, as Trustee of a Thomas A. Martin Trust, Defendants, Key Bank of Eastern New York, Defendant-Appellant-Cross-Appellee.
U.S. Supreme Court - Granfinanciera, S. A. v. Nordberg, 492 U.S. 33 (1989)
U.S. Supreme Court BUFFUM v. PETER BARCELOUX CO., 289 U.S. 227 (1933)
[Page 289 U.S. 227, 237] 115 A. 249; Burwell v. Burwell's Guardian, 78 Va. 574, 582; Bate v. Scales, 12 Ves. 402; American Law Institute, Restatement of Law of Trusts, supra. Any other rule, it was said, would enable the wrongdoer to take advantage of his own wrong; to let the transaction stand, if the investment showed a profit, and by aid of a repurchase to charge the beneficiary with an intermediate decline. Cf. Barney v. Saunders, 16 How. 535, 543. The standard of duty is no different whether the trust to be enforced is actual or constructive. United States v. Dunn, supra; Independent Coal & Coke Co. v. United States, supra; Newton v. Porter, supra. The implication of a trust is the implication of every duty proper to a trust. Equity has its distinctive standards of fidelity and honor, higher at times than the standards of the market place. Meinhard v. Salmon, 249 N.Y. 458, 468, 164 N.E. 545, 62 A.L.R. 1. Whoever is a fiduciary or in conscience chargeable as a fiduciary is expected to live up to them. 4. The ruling of the trial court whereby the highest value of the property up to the time of the decree was made the measure of the recovery was not harmful to the defendant. The recovery would have been larger if the value at the sale with legal interest thereafter had been adopted as the measure. 5. The defendant may participate on the same basis with other creditors in the distribution of the assets. The decree of the District Court is erroneous in so far as the claim of the defendant is postponed to those of others. Moore v. Bay, supra. The decree of the Circuit Court of Appeals is reversed, and that of the District Court modified in accordance with this opinion, and as modified affirmed. It is so ordered. Footnotes Footnote 1 'The trustee may avoid any transfer by the bankrupt of his property which any creditor of such bankrupt might have avoided, and may recover the property so transferred, or its value, from the person to whom it was transferred, unless he was a bona fide holder for value prior to the date of the adjudication.' National Bankruptcy Act, 70e, July 1, 1898, c. 541, 30 Stat. 565, 11 U.S. Code, 110(e), 11 USCA 110(e).