Wrongful employment of trust property: partners who had notice incur joint and several liability to beneficiaries. If a partner who is a trustee wrongfully employs trust-property in the partnership business, that partner alone is personally liable to the beneficiaries unless other partners had notice of the breach; partners with such notice are jointly and severally liable and may be required to account for profits derived from the misapplied trust capital. An indemnity to co-partners does not absolve co-partners who knowingly participated in the breach.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Wrongful employment of trust property: partners who had notice incur joint and several liability to beneficiaries.
If a partner who is a trustee wrongfully employs trust-property in the partnership business, that partner alone is personally liable to the beneficiaries unless other partners had notice of the breach; partners with such notice are jointly and severally liable and may be required to account for profits derived from the misapplied trust capital. An indemnity to co-partners does not absolve co-partners who knowingly participated in the breach.
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