1.99 See Answer

Question: The trustees of a labor union pension

The trustees of a labor union pension fund delivered various stocks and bonds to a bank under an agreement that provided that the bank would act as the trustees’ agent in investing the fund’s assets. The agreement also provided that the bank was “authorized to invest any assets . . . of the investment fund or to dispose of any such asset or property and invest the proceeds of such disposition, as in its absolute and uncontrolled discretion it deem(ed) suitable.” The results of the bank’s investments were disappointing. The trustees claimed that since trustees may not delegate their power, the bank breached its contract of agency by making unauthorized investment decisions that decreased the value of the fund. Does it appear that the trustees delegated power to the bank to make the investments? [Local Union 422, U.A. of Joliet, v. The First National Bank of Joliet, 417 N.E.2d 1077 (Illinois)]
Principle of Law:


See Answer