Hudson v. Union Trust Co.

⁴⁴² Adkins, J., delivered the opinion of the Court. The bill of complaint alleges that Ralph C. Hudson died testate on January 12th, 1932, and that plaintiff qualified as administratrix c. £'. a. of his estate; that said decedent was indebted to the Union Trust Company of Maryland, one of the defendants, in the sum of approximately $190,-000, for which indebtedness there were pledged shares of capital stock in several corporations and life insurance on the life of the decedent to the amount of $45,000; that prior to December 31st, 1930, it held all of the collateral security listed in the bill of complaint, except life insurance policies which on that day were assigned and delivered to said defendant; that the collateral held prior to said date was not sufficient to fairly margin said loans and said defendant requested the decedent to furnish additional collateral, and in pursuance of said request said insurance policies were assigned and delivered to said defendant under the express agreement and condition “that the assignment of said policies would be cancelled by the Union Trust Company of Maryland, and the policies of insurance returned to the said Ralph C. Hudson upon the loans of said Ralph C. Hudson with the Union Trust Company of Maryland, being paid off, or upon the value of the collateral being sufficient to fairly margin said loans,” which agreement was embodied in a letter from said company to said decedent dated December 31st, 1930; that subsequent to the death of the decedent and the qualification of the plaintiff as administratrix, she had a number of conferences with officials of said defendant company, and was led to believe that it would carry out and perform said agreement; that on or about June 9th, 1933, said defendant advised plaintiff that it had collected the proceeds of said policies, and that “as soon as the other collateral reaches a market price that will pay in full (or before if deemed advisable by our committee), we will be compelled to dispose of the collateral”; that plaintiff protested against the sale of said collateral at the then' market price or value thereof, and insisted that said defendant carry out its agreement of December 31st, 1930; ⁴⁴³ that said defendant refused to accede to said demand, and advised plaintiff that it would sell said collateral as it had advised plaintiff on June 9th, 1933, it would do; that said defendant had stated to plaintiff that it was holding said collateral because of the agreement and understanding with said decedent that it would be held until such time as the value thereof was sufficient to adequately margin said loans. The prayer of the bill is (1) that the defendant, John J. Ghingher and