James Megowan, Appellants v. Charles G. Peterson, Respondent

Summary

The New York Court of Appeals reversed the Appellate Division and ordered a new trial, holding that the trial court erred in directing a verdict for the trustee-defendant. The court ruled that a trustee who signs a promissory note as "trustee" without disclosing the trust on the face of the instrument is personally liable, and that a genuine issue of fact existed as to whether the plaintiffs accepted the note in the trustee's representative capacity, requiring jury determination.