In Matter of Weir

In In Matter of Weir (182 Misc. 845, 846-847, 46 N.Y.S.2d 551 Sur Ct, Kings County [1943]), the trustee, Lawyer's Trust Company, had invested funds of an estate in mortgage participation certificates which it had purchased from Lawyer's Title & Guaranty Company, a company which owned all of the stock in the trustee except qualifying shares. The companies also had common officers and directors. There, the court held that: "The account did not state that after such division, Lawyers Title and Guaranty Company owned all of the stock of the trust company and that there were common officers and directors. It is apparent, however, that objectants could easily obtained this information either by examination of the statute authorizing the division which permitted ownership of the trust company stick by the title and guaranty company, by reference to the certificate of division which evidenced the accomplished fact, reference to which was made in the account, or by examination of the fiduciary pursuant to section 263 of the Surrogate's Court Act. In the opinion of the court there was sufficient disclosure made in this manner to put the objectants upon inquiry; that having failed to make such inquiry or having made it, having then failed to object, they are now estopped from raising any issue with respect to the legality of the investments."