New York Court of Appeals
City Bank Farmers Trust Company, as Trustees, Respondents v. Eugene T. Cannon, Defendants, and…
October 21, 1943291 N.Y. 125
Summary
The Court affirmed the lower court's judgment, holding that the corporate trustee breached the duty of undivided loyalty by retaining National City Bank stock after affiliating with the bank, and that the settlor's reserved power to amend or revoke the trust and her approval of the investment estopped the guardian and infant beneficiaries from objecting to the transaction.