252 Mass. 363 | Mass. | 1925
This is a suit in equity whereby the plaintiff seeks to impose a constructive trust in its favor upon property of the trust company in the hands of the commissioner. The salient facts are these: The president of the trust company, Max Mitchell, solicited an additional deposit from Charles M. Rudginsky, treasurer of the plaintiff, on August 23, 1920, on the ground that he desired “to show a big balance” in deposits at the end of the month, at the same time representing that the trust company was a growing and strong institution. On the day following the treasurer handed a check of the plaintiff to the president of the defendant for $25,000 and received twenty-five certificates of deposit from the trust company, all in the same form, each certifying that there had been deposited with the trust company $1,000 payable to the order of the plaintiff upon surrender of the certificate. There is set forth at length in the report of the master a description of typical instances of a large number of loans made by the trust company to a great number of corporations and other persons engaged in various mercantile enterprises, either upon no security at all or upon utterly insufficient security or credit. Without reciting these in detail, it is sufficient to quote the conclusion of the master’s report.
The case at bar is governed in every particular by the legal principles declared in Yesner v. Commissioner of Banks, ante, 358, just decided. So far as there are differences between the facts of the two cases, they relate to matters indifferent to the controlling rules of law.
The facts fail to establish any special equity in favor of the plaintiff above all others who may have become depositors during the period of the insolvency of the trust company.
There is no fund into which the deposit of the plaintiff can be traced. It became a part of the general assets of the trust company as distinguished from special property or a particular fund. Hence, under the principle of Lowe v. Jones, 192 Mass. 94, no trust can be established in favor of the plaintiff.
A decree is to be entered dismissing the bill with costs.
So ordered.