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Civil Procedure Keyed to Spencer
Guaranty Trust Co. of New York v. York
Citation:
326 U.S. 99 (1945)
ProfessorTodd Berman
CaseCast™ – "What you need to know"
Facts
Van Sweringen Corporation issued promissory notes to a number of individuals, including York (Plaintiff), in exchange for a total of $30 million. Guaranty Trust Co. (Defendant) was named trustee and given the obligation to protect the rights of the noteholders. Later, Van Sweringen realized it could not pay back the noteholders, and conspired with Defendant to buy back the notes at half value. Plaintiff filed a class action suit, alleging Defendant failed to protect the interests of the noteholders. Defendant responded that the suit was invalid because the state’s statute of limitations had passed.
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