Is a debtor liable vicariously for the breach of fiduciary duty of an executor when the executor of an estate is found to have sold a debtor's assets?
federal, United States of America
The following excerpt is from Sachan v. Huh (In re Huh), 506 B.R. 257 (B.A.P. 9th Cir. 2014):
In Neal v. Clark, 95 U.S. 704, 24 L.Ed. 586 (1877), the debtor had purchased assets from the executor of an estate. It later was determined that the executor had sold the assets in violation of his fiduciary duties. In spite of the debtor's discharge in bankruptcy, the Virginia state courts held that the debtor still was liable vicariously for the executor's breach of fiduciary duty. Id. at 70405.
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