Massachusetts General Laws

Mass. Gen. Laws ch. 246, § 26 (2026)

Mutual demands between trustee and defendant; liability of trustee

✓ current as of July 2026

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Section 26. A trustee may retain or deduct from the goods, effects or credits in his hands all liquidated demands or judgments against the defendant of which, had he not been summoned as trustee, he might have availed himself upon a trial or by the set-off of judgments or executions between himself and the defendant, and he shall be liable for the balance only after all mutual demands, excluding therefrom any claim on either side for unliquidated damages for wrongs or injuries, between himself and the defendant have been adjusted.

Notes of Decisions

Cited in 5 cases, 1925–2003 · leading case: Fed. Trade Comm'n v. Am. Inst. for Rsch. & Dev., 219 B.R. 639 (D. Mass. 1998).

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Fed. Trade Comm'n v. Am. Inst. for Rsch. & Dev., 219 B.R. 639 (D. Mass. 1998). “Mass. Gen. Laws Ann. ch. 246, § 26 (1988).”

Sternheimer v. Harris, 148 N.E. 447 (Mass. 1925). “” It is provided in G. L. c. 246, § 26: “A trustee may retain or deduct from the *171 goods, effects or credits in his hands all demands against the defendant of which, had he not been summoned as a trustee, he could have availed himself by way of set-off on a trial or by the…”

Chang v. BankBoston, N.A., 787 N.E.2d 1144 (Mass. App. Ct. 2003). · cites it 3× “189, § 25, the antecedent of the currently applicable G. L. c. 246, § 26, which we shall discuss presently.”

Friedman v. First Nat'l Bank, 183 N.E.2d 722 (Mass. 1962). “G. L. c. 246, § 26. In view of our conclusion as to the defendant’s rights in set-off, there is no occasion for further discussion of the rulings to which the plaintiff has excepted.”

Chang v. BankBoston, N.A., 11 Mass. L. Rptr. 583 (Mass. Super. Ct. 2000). “G.L.c. 246, §26 states that a trustee “may retain or deduct from the goods, effects or credits in his hands all demands against the defendant of which, had he not been summoned as a trustee, he could have availed himself by way of set-off .”

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