Francis v. United Jersey Bank

Mrs. Pritchard was a director, alongside her sons, of Pritchard & Baird, a reinsurance broker holding millions in client funds in an implied trust; her sons siphoned large sums out as purported "loans," eventually driving the company insolvent. Throughout this period, Mrs. Pritchard never visited the office, never read a financial statement, and knew nothing about the company's business, despite her late husband having specifically warned her to watch her sons before he died. After she died, the bankruptcy trustee, representing defrauded clients, sued her estate (defendant) to recover the siphoned funds, and the appellate court ruled for the trustee.