Harvard College v. Amory 26 Mass (9 Pick) 446 (1830)[1] is a US trusts law case, which repeated the famous formulation of the "prudent man rule", that people in charge of other people's money must exercise due care and skill, and look after the money as if it were their own.
The proceeds from the investments were to be paid to his wife, in quarterly or semi annual payments.
Harvard College and the Massachusetts Hospital sued him, because the accounts showed a loss of money on the investments.
Justice Samuel Putnam wrote the opinion, saying,[2] All that can be required of a trustee is, that he shall conduct himself faithfully and exercise a sound discretion.
He is to observe how men of prudence, discretion and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of the capital to be invested… Do what you will, the capital is at hazard.