Penn Mutual Life Insurance v. Bank of America National Trust & Savings Ass'n

This appeal is from judgments aggregating the sum of $7;261.31, with interest and court costs, rendered in favor of the trustee in bankruptcy of Mullin-Acton Company, a corporation, and Associated Indemnity Corporation, and against a portion of the proceeds of three life insurance policies issued upon the life of Spencer J. Johnson, Jr., held as a trust fund by appellant bank for certain purposes which will hereafter appear. Said judgment of $7,261.31 represents premiums paid by Mullin-Johnson Company on said policies of insurance issued on the life of Johnson. Said trustee in bankruptcy and Associated Indemnity Corporation, as judgment creditors of Mullin-Johnson Company, claim that said payments were made without consideration and said funds should be applied to payment of MullinJohnson Company’s indebtedness. An attorney’s fee in the sum of $750 was awarded to the attorney of appellant bank, trustee, payable out of said trust fund.

The Bank of America National Trust and Savings Association, by merger proceedings, became the successor in interest to the Humboldt Bank in the trust agreement and is prosecuting this appeal. It is taken as a matter of fact that MullinActon Company…