New York Court of Appeals

New York Credit Men's Adjustment Bureau, Inc., as Trustee in Bankruptcy of W. F. Irish Co., Inc., Bankrupt v. Milton…

January 15, 1953305 N.Y. 1

Summary

The Court affirmed the Appellate Division's order directing a new trial to assess damages, holding that the directors/officers, as fiduciaries, bear the burden of proving that the liquidation sale obtained full value when they failed to give creditors notice. The dissent argued that no liability exists absent fraud or bad faith.