Third Nat. Co. v. Commerce Union Bank

1 Citing case

  1. In re Cannon

    277 F.3d 838 (6th Cir. 2002)   Cited 202 times
    Holding that in light of the impracticality of establishing separate accounts for each client, the commingling of client funds held in an express trust in escrow accounts of the debtor-attorney did not alter their character

    Under the common law, a trustee can maintain an action in law or equity against a third person to remedy an injury with respect to trust property as if he held the property free of the trust; generally, beneficiaries of the trust cannot. See, e.g., Third Nat'l Co. v. Commerce Union Bank, 181 Tenn. 509, 512, 181 S.W.2d 759, 760 (1944); Louisville Nashville Terminal Co. v. Lellyett, 114 Tenn. 368, 85 S.W. 881, 885 (1905); Coleson v. Blanton, 4 Tenn. (3 Hayw.) 152 (1816) (per curiam). See also RESTATEMENT (SECOND) OF TRUSTS §§ 280-82; BOGERT § 869.