Summary

Vetterlein v. Barnes — Opinion of the Court

But in a suit brought against a trustee by a stranger, for the purpose of defeating the trust altogether, the beneficiaries are not necessary parties, if the trustee has such powers, or is under such obligations, with respect to the execution of the trust, that 'those for whom he holds will be bound by what is done against him, as well as by what is done by him.' In such cases of representation by trustees, the beneficiaries will be bound by the judgment, 'unless it is impeached for fraud or collusion between him and the adverse party.' Kerrison v.
Source: Wikisource

Vetterlein v. Barnes — Opinion of the Court

Indeed, they could not otherwise have fully discharged the obligations they assumed as trustees. They were entitled to represent the beneficiaries in their claim for the insurance money, and were under a duty to defend any suit, the object of which was to prevent the discharge of that duty, and set aside the transfer of the policies as fraudulent and void. It results that the wife and children of Theodore H. Vetterlein were not necessary parties defendant.
We perceive no error in the record, and the decree is affirmed.
Source: Wikisource

Get perspective with Kwize: daily news enlightened by great literature