A Practical Treatise On The Law of Trust Vol2
A Practical Treatise On The Law of Trust Vol2
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Author and Title
Lewin , Thomas
A practical treatise on the law of
trusts .
Name Location
Lewin , Thomas
A practical treatise on the law of
trusts .
KF
730
148
v.2
PRACTICAL TREATISE
ON
BY
(THE LATE)
Eighth Edition
BY
FREDERICK A. LEWIN.
BY
JAMES H. FLINT.
VOLUME II .
BOSTON :
KF
730
248
V. 2
Copyright, 1888,
OF ALLOWANCES TO TRUSTEES .
SECTION I. 1
Marcy's Ac'ct, 24 N. J. Eq. 451 ; Kenan v. Hall, 8 Ga. 417 ; but see Finch v.
Ragland, 2 Dev. Eq. 137 ; Gee v. Hicks, Rich. Eq . Cas. 5 ; mistake of judg
ment by trustee will not cut off his compensation ; Myers' App . 62 Pa. St. 104.
A trustee may waive all compensation and allowance ; Vestry v. Barksdale, 1
Strob. Eq. 197 ; Haglar v. McCombs, 66 N. C. 345 ; if the allowance is fixed in
the declaration of trust the trustee is bound by it ; College v . Willingham , 13
Rich. Eq. 195 ; or if it is mutually agreed upon ; Jackson v. Jackson, 3 N. J.
Eq. 113. A trustee cannot receive a double allowance ; Blake v. Pegram, 101
Mass. 592.
A trustee will always be allowed his expenses and he will have a lien on
the trust estate until he has been reimbursed ; and this is true whether it is
mentioned in the instrument declaring the trust or not ; Morton v. Barrett, 22
Me. 257 ; R. & S. R. R. Co. v. Miller, 47 Vt. 146 ; Jones v. Dawson, 19 Ala.
672 ; Lowe v. Morris, 13 Ga. 165. A trustee will be allowed his travelling
expenses ; Towle v. Mack, 2 Vt. 19 ; Burr v. M'Ewen, Bald. C. C. 154 ; also
for all legal advice which it may be necessary for him to have ; Brady v . Dil
ley, 27 Md . 570 ; Wilson's App. 41 Pa. St. 94 ; Beatty v. Clark, 20 Cal. 11 ;
and the subsequent avoidance of the trust is immaterial ; Hawley v. James, 16
Wend. 61 ; Stewart v. M'Minn, 5 W. & S. 100. Unless a trustee keeps an
accurate account of his disbursements the smallest possible sum will be
allowed him ; Green v. Winter, 1 Johns . Ch . 27 ; M'Dowell v. Caldwell, 2
M'Cord, Ch. 43 ; or none at all ; Wistar's App . 54 Pa . St. 60 ; Miller v . Whittier,
36 Me. 577. A trustee may be allowed the expense of necessary assistance,
such as clerks, agents, and the like ; Kennedy's App. 4 Barr. 150 ; Wade v.
848
CH. XXIV . S. 1.] ALLOWANCES FOR TROUBLE . *628
Pope , 44 Ala. 690. Expenses incurred where contrary to the wishes of the cestui
que trust may be refused ; Berryhill's App. 35 Pa. St. 245. If while a trustee is
in the exercise of due care, any portion of the trust estate is lost or stolen, the
loss will fall upon the estate ; Campbell v . Miller, 38 Ga . 304 ; Neff's App. 57
Pa. St. 91 ; Bryant v . Russell, 23 Pick. 546 ; and the same is true of invest
ments ; Neilson v. Cook, 40 Ala. 498. Trustees may pay any disbursements
which a Court, upon application, would surely order ; King v . Cushman, 41
Ill. 31 ; Murray v. De Rottenham , 6 Johns. Ch . 62. A trustee may pay any
necessary additional expense from the estate, if any is required because of the
insanity, infancy &c. of the cestui que trust ; Leonard v. Powell, 41 Ga. 598.
849
*629 ALLOWANCES FOR TROUBLE. [CH. XXIV. S. 1.
(g) Davis v. Dendy (the case of mortgage), 3 Atk. 518, per Lord
a mortgagee) , 3 Mad . 170 ; Stewart Hardwicke.
v. Hoare, 2 B. C. C. 633 ; and see (c) Macnamara v. Jones, 2 Dick.
Wilkinson v. Wilkinson , 2 S. & S. 587.
237 ; Re Westbrooke, 2 Ph. 631. (d) New v. Jones, Exch., Aug. 9,
[ (h) Re Brier, 26 Ch. D. 238. ] 1833 , cited 9 Jarm. Prec. 338 ; Hen
(a) Bonithon v. Hockmore, 1 Vern. derson v. M'Iver, 3 Mad. 275.
316 ; Chambers v. Goldwin, 9 Ves. (e) 3 M. & K. 26 ; and see Giles v.
272, per Lord Eldon. Dyson, 1 Stark. N. P. C. 32 ; Hop
(b) Godfrey v. Watson (as to a kinson v. Roe, 1 Beav. 180 ; Day v.
Croft, 2 Beav . 488.
855
* 634 EXPENSES OF TRUSTEES [CH. XXIV. S. 2.
SECTION II.
fills any other scientific capacity, but Ch. D. 588 , n. And see 45 & 46
because he is a person to be trusted Vict. c. 38 , s. 36. ]
with the property and capable of [ (d) S. 43. ]
managing it with the aid of profes (e ) Amand v. Bradburne, 2 Ch.
sional advice. Ca. 138 ; Ramsden v. Langley, 2
(a ) Cary, 14 ; Poole v. Pass, 1 Vern. 536 ; and see Fearns v. Young,
Beav. 600. 10 Ves. 184.
[ (b) Re Nicoll's Estates, W. N. (f) Lovat v. Fraser, 1 L. R. H.
1878, p. 154. ] L. Sc. 37, per Lord Kingsdown.
[ (c) Re Earl de la Warr's Es (g) Courtney v. Rumley, 6 I. R.
tates, 16 Ch. D. 587 ; 51 L. J. N. S. Eq. 99.
Ch. 407 ; Re Lord Rivers' Estate, 16
859
* 637 EXPENSES OF TRUSTEES. [CH. XXIV. S. 2.
(a) Caffrey v. Darby, 6 Ves . 497 ; but that if not proper, having regard
Courtney v. Rumley, 6 Ir. Eq . 99. to the nature of the trust, they can
(b) Peers v. Ceeley, 15 Beav. 209 ; only be recovered from the trustee
Leedham v. Chawner, 4 K. & J. 458. personally, and are not chargeable
(c) Johnson v. Telford, 3 Russ. as between the solicitor and the cestui
477 ; Allen v. Jarvis, 4 L. R. Ch . App. que trust.
616. As to the right of the cestui que (d) Gordon v. Trail, 8 Price, 416.
trust to obtain a taxation as against But if he pays off a debt carrying
the solicitor , see Re Drake, 22 Beav. interest, he stands in the place of the
438 ; Re Dickson, 3 Jur. N. S. 29, and creditor in respect of interest ; Re
cases there cited ; Re Dawson, 28 Beulah Park Estate, 15 L. R. Eq . 43 ;
Beav. 605 ; Re Press, 35 Beav. 34 ; Finch v. Pescott, 17 L. R. Eq. 554.
Re Brown, 4 L. R. Eq . 464, in which [ (e) Walters v. Woodbridge, 7 Ch .
it was held, that the costs are to be D. 504. ]
taxed as between solicitor and client ;
860
CH . XXIV. S. 2. ] EXPENSES OF TRUSTEES . * 638
these circumstances that Lord Mac [ (b) Stott v. Milne, 25 Ch. D. 710. ]
clesfield directed a conveyance of (c ) Smith v. Dresser, 1 L. R. Eq.
the estate, subject to the payment 651 ; 35 Beav. 378.
of Amy's expenses ; but on appeal (d) Woods v. Axton, W. N. 1866,
to the House of Lords the decree p. 207.
below was reversed. The question (e) Leedham v. Chawner, 4 K. &
appears to have been, not whether J. 458 ; in which case the Court held
Amy's expenses, due from the as that there was no lien even as against
signor, were a lien upon the estate, a cestui que trust who knew and ap
but whether the grants made to Amy proved of the proceedings , but other
had not been accepted by him as a wise remained passive.
full compensation . (f) Darke v. Williamson , 25 Beav.
(a) See Morison v. Morison, 7 De 622.
G. M. & G. 226 ; Re Exhall Coal [(g) Re Pumfrey, 22 Ch. D. 255,
Company, 36 Beav. 449. 262.]
864
CH. XXIV. S. 2.] EXPENSES OF TRUSTEES . *641
(a) Wilson v. Heaton, 11 Beav. 492. Eq. 577. [In Webb v. De Beauvoisin,
[ (b) Miles v. Harrison, 9 L. R. Ch. where the trust was for " payment of
App. 316 ; Harloe v . Harloe, 20 L. R. debts, testamentary and other expenses
Eq . 471 ; Sharp v. Lush, 10 Ch. D. and legacies under the will ," and in
468 ; Penny v. Penny, 11 Ch . D. 440 ; Coventry v. Coventry, 2 Dr. & Sm.
Morrell v. Fisher, 4 De G. & Sm. 422, 470, where the trust was "to pay fu
but see contra, ] Stringer v. Harper, neral and testamentary and legal ex
26 Beav. 585 ; Linley v. Taylor, 1 Giff. penses," it was held that the words
67 ; Webb v. De Beauvoisin, 31 Beav. included costs of administration. ]
573 ; Gilbertson v. Gilbertson, 34 (c) Alsop v. Bell, 24 Beav. 451,
Beav. 354 ; Hill v. Challinor, W. N. see p. 469.
1867, p. 139 ; Lees v. Lees, 6 I. R. [(d) Sharp v. Lush, 10 Ch . D. 468. ]
Eq. 259 ; M'Cormick v. Patten, 5 I. R. (e) Gilbertson v. Gilbertson, 34
Eq. 295 ; Re Biel's Estate, 16 L. R. Beav. 354.
869
*644 EXPENSES OF TRUSTEES. [CH. XXIV. S. 2.
(f) Lord Brougham v . Lord Poulett, 19 Beav. 119 ; and see Sanders v.
Miller, 25 Beav. 154.
870
* CHAPTER XXV . [* 645 ]
1 Discharge ofthe trustee. If the time during which a trust was to continue
has elapsed, or all the duties required of the trustee have been performed, the
trustee, upon proper accounting, will be discharged ; Cook v. Gardner, 130
Mass. 313 ; How v. Waldron , 98 Mass. 281 ; Manice v. Manice, 43 N. Y. 303.
Otherwise, a trustee can be discharged only by one of the three ways men
tioned in the text ; Webster v. Vandeventer, 6 Gray, 428 ; Craig v. Craig, 3
Barb. Ch . 76 ; Cruger v. Halliday, 11 Paige, 319 ; Drane v. Gunter, 19 Ala.
731. A trustee cannot abandon the trust and his responsibilities under it at
any time which suits his convenience ; Thatcher v. Candee, 3 Keyes, 157 ;
Webster v. Vandeventer, 6 Gray, 428 ; Henderson v. Sherman, 47 Mich. 267.
Nor can a trustee be discharged by consent unless all parties in interest unite
in consenting, and all cestuis que trust are sui juris ; Cruger v. Halliday, 11
Paige, 314. If the declaration of trust provides for the removal of a trustee,
the removal may take place in accordance with its terms, which must, how
ever, be strictly followed, as is the case with statutory enactments ; Tavenner
v. Robinson, 2 Rob . (Va . ) 280. If a trustee sues without compensation and
the trust is to continue for an unspecified time, he may obtain a decree of
court granting a discharge, when his duties become inconvenient or onerous
to him ; Bogle v. Bogle, 3 Allen, 158. Equity courts have power to remove
trustees, or to allow them to resign ; In re Eastern R. R. Co., 120 Mass . 412 ;
Bowditch v . Banaelos, 1 Gray, 220 ; Field v. Arrowsmith, 3 Humph. 442 ; De
Peyster v. Clendining, 8 Paige, 295. Trustees may, if a trust is divisible,
be allowed to resign a part, and continue as trustees of the remainder ; Craig
v. Craig, 3 Barb. Ch . 76 ; Curtis v. Smith, 6 Blatchf. 537 ; but they will not be
involuntarily removed from the control of a part ; Sturges v. Knapp, 31 Vt.
1. The usual method on application to the courts for the removal or appoint
ment of trustees is by a bill in equity ; Bowditch v. Banaelos , 1 Gray, 220 ;
Mitchell v . Pitner, 15 Ga . 319 ; Re Livingston, 34 N. Y. 567 ; Williamson v.
Suydam, 6 Wall. 723. Any of the parties interested, upon notice to all the
others, may seek the removal or appointment of a trustee ; Bradstreet v. But
terfield, 129 Mass . 339 ; Abbott, Pet'r, 55 Me. 580 ; Guion v. Melvin, 69 N. C.
242 ; but see Hartman's App. 90 Pa. St. 206.
871
*646 APPOINTMENT OF NEW TRUSTEES . [CH. XXV.
First. By consent.
1. Trustee may retire with consent of cestuis que trust.
As no cestui que trust who concurs in a breach of trust by
the trustee can afterwards call him to account for the mis
chievous consequences of the act, it follows, that where all
the cestuis que trust, being sui juris, lend their joint sanction
to the trustee's dismissal, they are precluded from ever
holding him responsible on the ground of delegation of his
office (a).
2. All must concur. But the trustee must first satisfy
himself that all the cestuis que trust are parties , for even in
the case of a numerous body of creditors the consent of the
majority is no estoppel as against the rest (b) .
3. Cestuis que trust not sui juris. - And the cestuis que trust •
who join must be sui juris, not femes covert or infants, who
have no legal capacity to consent. But a feme covert is con
sidered to be sui juris as to her separate estate where there is
no restraint against anticipation (e) ; and as to real estate she
can, with the consent of her husband , bind her interest by an
assurance under the Fines and Recoveries Act.
4. Not in existence. If the parties interested in the trust
fund be not all in existence, as where the limitation of the
property is to children unborn, it is clear, that as the
[ * 646 ] trustee cannot have the sanction of all the parties
interested, he cannot with safety be discharged from
the trust .
(a) Wilkinson v. Parry, 4 Russ. (b) See supra, p. 498, note (e) .
276, per Sir J. Leach. (c) See infra, chap . xxvii . s . 6.
872
CH. XXV. ] APPOINTMENT OF NEW TRUSTEES. * 646
trust estate (a) ; and the following section made the Act
apply to the case of a trustee dying in the testator's lifetime.
But it will be observed that the Act did not provide for the
case of a trustee going abroad, and it cannot be safely as
sumed, until a decision, that the word " refuse " was meant
to include a disclaimer (for a disclaiming trustee never was a
trustee (b) ) ; and its operation was, by the 34th
* section of the Act, restricted to instruments inter [ * 648 ]
vivos executed after the passing of the Act ( 28th Aug
ust, 1860) , and to wills and codicils made, confirmed, or re
vived after that date.
Two trustees in place of one. - It has been held that the
donee of the power under this Act could appoint two trus
tees in the place of an only trustee appointed by the settlor's
will (a) .
[5. 44 & 45 Vict. c. 41, s . 31. - The above provisions of
Lord Cranworth's Act have, however, been repealed by the
Conveyancing and Law of Property Act, 1881 (b) , and their
place supplied by sect. 31, which enacts, that " where a trus
tee, either original or substituted , and whether appointed by
a Court or otherwise, is dead, or remains out of the United
Kingdom for more than twelve months, or desires to be dis
charged from the trusts or powers reposed in or conferred
on him, or refuses, or is unfit to act therein, or is incapable
of acting therein, then the person or persons nominated for
that purpose by the instrument, if any, creating the trust, or
if there is no such person, or no such person able and willing
to act, then the surviving or continuing trustees or trustee
for the time being, or the personal representatives of the last
surviving or continuing trustee, may, by writing, appoint
another person or other persons to be a trustee or trustees."
And the Act authorises an increase or reduction in the num
ber of trustees, so that " except where only one trustee was
(a) 23 & 24 Vict. c. 145, s. 27. diction of the court to appoint in
(b) In Viscountess D'Adhemar v. proper cases an additional trustee ;
Bertrand , 35 Beav. 19, it was as and see Re Jackson's Trusts, 16 W.
sumed that a disclaiming trustee was R. 572 ; 18 L. T. N. S. 80 ; and post, p.
within the act, and it was held that 656.
an appointment of a new trustee by (a ) Re Breary, W. N. 1873, p. 48.
the continuing trustee under the act [ (b) 44 & 45 Vict. c. 41. ]
did not take away the general juris
875
* 649 APPOINTMENT OF NEW TRUSTEES. [CH. XXV.
under sect. 31 of the Act ; and North, J., observed, " the
intention of sect. 31 is that, whenever a person has been
nominated by the instrument creating the power as the person
to appoint new trustees, he has the power of filling up any
vacancy occurring under the provisions of the section " ( c) .
It will be observed, however, that the husband and wife
were in this case nominated to fill up vacancies in the trus
teeship generally, and not only in certain specified events ,
and the observations of the learned judge must be read by
the light of the existing circumstances, and the case is no
authority that where the settlement has given the power of
appointing new trustees in certain special events to A., he is
by the Act empowered to appoint new trustees in any other
event not mentioned in the settlement, but falling within
sect. 31. The proper construction of the Act would seem to
be that in such a case the power of appointing new trustees
is in the surviving or continuing trustees or trustee, or the
personal representatives of the last surviving or continuing
trustee .]
8. Whether a new trustee is actually such until transfer of
the estate to him . - The words contained in the ordinary
form which expressly confer all powers on the new trustee
before the estate has been conveyed, show that a doubt has
been felt by the profession, whether in the absence of these
words the powers could be exercised until after conveyance,
and the late Vice Chancellor of England, in a case where
the words referred to did not occur, but there was simply a
power of nomination and no direction for a conveyance,
expressed his opinion to be that the person to be appointed
was not invested with the character of trustee until
he had both been nominated to the office by the [* 650 ]
donee of the power, and the trust property had also
been duly conveyed or assigned (a ) . But in a more recent
case before Sir John Romilly, M. R. ( b) , where A. and B.
were appointed trustees of a settlement, and after a lapse of
18 years A. disclaimed , and B. was desirous of retiring, and
the old and new trustees to the uses, trusts, intents, and pur
poses of the settlement." Now the meaning obviously is,
that, as by the settlement an estate to preserve contingent
remainders, or, it may be, some other interest, was limited to
the trustees who are armed with the powers, should either of
the trustees die, &c., and a new trustee be appointed, such
estate pur autre vie, or other interest, should be transferred
to the old and new trustees jointly. But the practitioner ex
majori cautelâ, attached to the words, the possible , however
improbable construction, that on the appointment of a new
trustee the whole settlement should be re-opened, and that
the fee-simple should ab integro be conveyed to the old and
new trustees to all the same uses, &c., as were declared by
the original deed . For accomplishing this object it was nec
essary that two instruments should be prepared . By the
first, the new trustee was nominated by the donee of the
power, the old uses of the settlement were absolutely
[ * 652 ] revoked (the proviso, it was said, implying an * au
thority for that purpose) , and the use was appointed
to A. and his heirs, and the estate and interest vested in
the old trustees was assured unto and to the use of A.
and his heirs, by way of conveyance. When this had
been effected by one deed, and A. had become seised, or
was supposed to have become seised, of the inheritance
in fee-simple, he then, by conveyance, which was indorsed
on the former deed , reconveyed the premises to the old
and new trustees to the uses, trusts, & c., of the settlement,
in the same manner as if the new trustee had been origi
nally appointed. Thus, if the real intention was, that, on
the appointment of a new trustee a seisin to serve the uses
should be vested in the old and new trustees jointly, then
a power of revocation was implied, and the direction was
complied with. If the settlor had no such intention, then
there was no implied power of revocation, and the affected
exercise of it was a nullity, and the conveyance by the
old trustee, and the reconveyance to the old and new
trustees served only to pass the actual and vested interest.
These notions are now treated as old fashioned, and the
prevalent and better opinion is, that a simple conveyance
880
CH. XXV. ] APPOINTMENT OF NEW TRUSTEES . * 653
from the old trustee to the use of the old and new trustees
will be sufficient (a).
[ 10. New mode of vesting the trust property in new or con
tinuing trustees. By the Conveyancing and Law of Prop
erty Act, 1881 , sect. 34 , a new and simple method of trans
ferring trust property without conveyance or assignment has
been introduced, which is now generally adopted where ap
plicable . That section provides that, where a deed by which
a new trustee is appointed to perform any trust contains a
declaration by the appointor to the effect that any estate or
interest in any land subject to the trust, or in any chattel so
subject, or the right to recover and receive any debt or other
thing in action so subject, shall vest in the persons who by
virtue of the deed become and are the trustees for perform
ing the trust, that declaration shall, without any conveyance
or assignment, operate to vest in those persons, as joint ten
ants, and for the purposes of the trust, that estate, interest,
or right.
But the section does not extend to any legal estate or in
terest in copyhold or customary land, or to land conveyed
by way of mortgage for securing money subject to the trust,
or to any such share, stock, annuity, or property as is only
transferable in books kept by a company or other body, or in
manner prescribed by or under Act of Parliament.
It is to be observed that the declaration of vest
ing can only be made by the deed by which a new [ * 653 ]
trustee is appointed, and the section will not apply in
cases where the appointment is made otherwise than by deed.
The expression " the persons who by virtue of the deed be
come and are the trustees for performing the trust," is not
happily worded, but the intention of the legislature doubtless
was to vest the trust property in the persons who immedi
ately upon the execution of the deed of appointment are the
trustees for performing the trust, and it is conceived that
this intention is sufficiently expressed . ]
11. Stamps on appointment of new trustees. - By 33 & 34
Vict. c. 97, the appointment of a new trustee requires a 108.
(a) See Sugd. Powers, 884, note ( 1 ) , 8th ed.; Davidson's Preced. vol. 3,
p. 521, and vol. 4, 609, 2d ed.
881
* 654 APPOINTMEN OF NEW TRUSTEES . [CH. XXV .
T
" refusing " or " declining " may not refer exclusively to dis
claimer, and have no application to the case of a trustee who,
after having accepted the trust, refuses to act any longer in
it. This proposition is also thought to be untenable (b) ,
though some recent cases have an opposite tendency (e) .
18. Payment into Court is " declining." --- It has been held
that a payment of the trust money into Court, under the Trus
tee Relief Act, stamps the trustee with the character of a
"refusing or declining trustee " (d) .
19. Power to executors and administrators. - If a power of
appointing new trustees be given to a person, his executors
and administrators, and the donee of the power dies , having
appointed three executors , one of whom renounces, the acting
executors can exercise the power ( e ) .
[* 657 ] * [ 20. Limited administration for purpose of appoint
ing new trustees . ――――― In a case in Ireland, where the
power of appointing new trustees was given to the acting
executors or administrators of the last surviving trustee, and
the last surviving trustee was dead, but there was no legal
personal representative of his estate, and the persons entitled
to take out letters would not do so, the Court of Probate
granted administration to the guardian of the infant cestuis
que trust, limited to the purpose of appointing himself and
A. B. new trustees of the settlement, and to the purpose of
i
CH. XXV . ] APPOINTMENT OF NEW TRUSTEES . *658
transferring to, and vesting in, such new trustees the trust
funds (a). ]
21. Death of the trustee in the testator's lifetime. — Suppose
a testator to appoint two trustees with the usual power of
appointment of new trustees, and a trustee dies in the testa
tor's lifetime, can the surviving trustee appoint a new trus
tee ? The late Vice Chancellor of England in one case
expressed a doubt upon it (b ) , and in a subsequent case
decided in the negative (c) ; but this was a narrow construc
tion of the power, and it has since been ruled that a trustee
who has survived the testator may appoint a new trustee in
the place of one who predeceased the testator (d) .
22. In Morris v . Preston (e) , the proviso was, that “ in
case of the death of any or either of the two trustees during
the lives of the husband and wife or the life of the survivor,
the husband and wife or the survivor should, with the consent
of the surviving co-trustee or co-trustees, nominate and appoint
a new trustee or trustees, and that upon such nomination or
appointment the surviving co-trustee should convey and assign
the trust estates in such manner as that the surviving trustee
and trustees, and such person or persons so to be nominated
and appointed, should be jointly interested in the said trusts.
in the same manner as such surviving trustee and the person
so dying would have been in case he were living. " Both
the trustees died, and the wife, who survived her husband,
executed an appointment of two new trustees in the place of
the deceased trustees . A purchaser took the objection, that,
as the proviso clearly contemplated the case of one
trustee surviving, an appointment of new trustees [ * 658 ]
after the decease of both the original trustees was
not warranted by the power. The purchaser abandoned the
objection at the hearing without argument - a circumstance
the place of two ; and in Emmet v. conveyed, and assured so that the
Clarke, 3 Giff. 32 , three trustees were same should become vested in such
held to have been well appointed in surviving and continuing and such
the place of four ; and in Hillman v. new trustees, or such new trustees or
Westwood, 3 Eq . Rep. 142 , the Court trustee only as the case might require,
thought that two trustees could be and his or their heirs, executorɛ, ad
appointed in the place of one. In ministrators, and assigns, in the same
another case, not reported , the pro manner, and with the same powers,
viso was that " In case any of the authorities, and directions as if he or
several trustees therein named, or they had been originally appointed
any new trustee or trustees to be ap under that his will." There were five
pointed as thereinafter mentioned, trustees, Elizabeth Byrom, Ashton
should depart this life, or be desirous Johnson Byrom, Valentine Byrom,
to be discharged from the execution William Corrie, and George Orred.
of the aforesaid trusts, or should V. Byrom, A. J. Byrom, and G. Orred
reside abroad or become incapable, died, and in March, 1831 , Elizabeth
or neglect or refuse to act in the Byrom and W. Corrie appointed
trusts of the testator's will before the Henry Byrom in the place of V.
same should be fully performed, it Byrom, A. J. Byrom and G. Orred .
should be lawful for the remaining In July, 1831 , William Corrie died,
surviving or only acting trustee or and in May, 1833, Elizabeth Byrom
trustees, and he the said testator did died, and on June 4, 1833, Henry
thereby authorise him or them, by Byrom appointed Emma Byrom in
any instrument or instruments under the place of Elizabeth Byrom . On
his or their hand and seal, to be June 6, 1833, Emma Byrom , as the
attested by two or more credible remaining trustee, appointed Peter
witnesses , to nominate and appoint Ainsworth, Thomas Shaw Brandreth,
any other fit person to supply the and Edgar Corrie, in the place of
place of the one so dying or desiring Henry Byrom (then retiring ) , and of
to be discharged , residing abroad, or the said A. J. Byrom, V. Byrom, and
neglecting or refusing to act there George Orred , deceased. In an
under ; and thereupon on the happen amicable suit between cestuis que
ing of any of those events he or they trust and trustees for trying the
should immediately cease to be such validity of the appointments, it was
trustee as aforesaid, and be immedi declared by V. C. Wigram, " that the
ately released and discharged from appointment of the defendants Emma
such office ; and when and as soon as Byrom, Peter Ainsworth, Thomas
any such new trustee or trustees should Shaw Brandreth, and Edgar Corrie
be so nominated, substituted and ap respectively to be trustees under the
pointed as aforesaid, all and singular will of Ashton Byrom, deceased, in
the trust monies, stocks, funds, and the pleadings named, was valid and
securities, messuages, lands , tene proper, and duly authorised by the
ments, and hereditaments in or upon power of appointing new trustees
which the same or any part thereof contained in the said will." Corrie
should or might for the time being be v. Byrom, V. C. Wigram, 26 April,
invested, should immediately vest in 1845, M. S .; and see Re Breary, W.
him or them, or the same should with N. 1873, p . 48.
all convenient speed be assigned ,
891
* 661 APPOINTMENT OF NEW TRUSTEES . [CH. XXV.
(a) Lord Camoys v . Best, 19 Beav. 67, where power was expressly given
414.
to a declining trustee.
(b) See Sharp v. Sharp, 2 B. & Ald. (c) See Passingham v. Sherborn, 9
415; and Re Hadley, 5 De G. & Sm. Beav. 424.
897
*666 APPOINTMENT OF NEW TRUSTEES . [CH. XXV.
trust only, and that if a cestui que trust who has been ap
pointed a trustee sell real estate under a power of sale , he
may sign a receipt, and that the purchaser is not bound to
look to the proper exercise of the discretion in such a
case (d). Cestuis que trust are not absolutely incapacitated
from being trustees, as the Court itself under special
[ * 666 ] * circumstances appoints a cestui que trust a trus
tee (a) . The question is merely one of relative fit
ness. A fortiori, the circumstance of near relationship to the
cestui que trust creates no absolute disqualification for the
office of trustee, though Sir John Romilly, M. R. , objected,
where it could be avoided, to appoint relatives as trus
tees (b) .
[45. Appointment of tenant for life. ― The Court will not
appoint the tenant for life (c) , or the solicitor of the tenant
for life (d) , to be a trustee for the purposes of the Settled
Land Act, 1882 ; and has even refused to appoint two
brothers trustees, and required two independent persons to be
appointed (e) .]
46. Whether donee of power can appoint himself trustee.
The question is often asked, whether the donee of the power
can appoint himself a trustee, and, as no one can be judge in
his own case, such an appointment would be open to objec
tion (f) . Should the execution of the trust have been com
mitted to trustees and the survivor of them, his executors and
administrators, and the trustees die, and the power of ap
pointment is in the executor of the survivor, here it may be
said that as by the terms of the trust the executor was de
clared to be a proper person to execute the trust, the execu
tor has the settlor's warrant for the appointment of himself
and another. It may still, however, be observed, that the ex
ercise of every power should be regulated by the circum
(d) See Reid v. Reid , 30 Beav. [(c) Re Harrop's Trusts, 24 Ch. D.
388 ; Forster v. Abraham, 17 L. R. 717.]
Eq . 351 . [ (d) Re Kemp's Settled Estates,
(a) Ex parte Clutton, 17 Jur. 988 ; 24 Ch. D. 485. ]
Ex parte Conybeare's Settlement, 1 [ (e ) Re Knowles' Settled Estates,
W. R. 458 ; Forster v. Abraham, 17 27 Ch. D. 707. ]
L. R. Eq. 351 . (f) See ante, p. 316.
(b) Wilding v. Bolder, 21 Beav.
222 ; and see ante, p. 41.
898
CH. XXV. ] APPOINTMENT OF NEW TRUSTEES . *667
by the tenant for life, even without the consent of the alienee,
but it is submitted that this must be subject to the implied
condition that there is nothing in the appointment preju
dicial to the interest of the alienee. This condition has been
expressly recognised in several of the earlier cases (e) , and is
in accordance with sound principle ; and it is conceived that,
notwithstanding the recent case of Hardaker v . Moorhouse ,
it will be the wiser course to procure the consent of the
alienee to the appointment . ]
50. Trustee cannot retire in consideration of a premium, or in
favour of another who intends to commit a breach of trust . ―――
Advantage cannot be taken of the power for the purposes of
profit ; and therefore if the donee of the power appoint a
person a trustee in consideration of a sum of money paid by
him for the office, the appointment cannot stand (d) . And
if a trustee refuse, when solicited, to commit a breach of
trust himself, but declares his willingness to resign in favour
of some other person less scrupulous, the Court, acting upon
the principle of qui facit per alium facit per se, will hold the
trustee who retires responsible for the misbehaviour of the
trustee he has substituted (e) . And upon principle it would
seem that a bond of indemnity given to the retiring trustee
would be a very doubtful security against the consequences
of the act, for the bond itself if found to be infected with
fraud could afford no just ground for action (f) . However,
in a recent case, it was held by the Court of Exchequer that
the common law Courts have no such cognisance of
breaches of trust as to treat a bond of indemnity [ * 669 ]
against an act amounting in equity to a breach of
trust as necessarily containing anything illegal (a).
51. Improper appointment by donee of power. ➖➖➖ If a tenant
for life, with the power of appointment of new trustees ,
[(c) Alexander v. Mills, 6 L. Ch. B. 1844 , 771 ; Le Hunt v . Webster, 8
App. 124 ; Holdsworth v. Goose, 29 W. R. 434 ; reversed 9 W. R. 918 ;
Beav. 111 ; Eisdell v. Hammersley, 31 Clark v . Hoskins, 36 L. J. N. S. Ch.
Beav. 255 ; and see Re Cooper, 27 Ch. 689 ; Palairet v. Carew, 32 Beav. 567.
D. 565 ; and cf. 45 & 46 Vict. c. 38, (f) See Shep. Touch. 132, 371.
8. 50.] (a ) Warwick v. Richardson, 10 M.
(d) Sugden v. Crossland , 3 Sm. & & W. 284 ; and see Lord Newborough
G. 192. v. Schröder, 7 C. B. 342 ; Dugdale v.
(e) Norton v. Pritchard, Reg. Lib. Lovering, 10 L. R. C. P. 196.
901
*669 APPOINTMENT OF NEW TRUSTEES . [CH. XXV.
(b) Raikes v. Raikes, 32 Beav . 403. 106 ; Kennedy v. Turnley, 6 Ir. Eq.
(c) Warburton v. Sandys, 14 Sim. Rep. 399 ; [ Re Gadd, 23 Ch . D. 134 ;
622 ; Miller v. Priddon, 1 De G. M. & and see ante, p. 617. ]
G. 335. (f) Attorney-General v. Clack, 1
(d) Lancashire v . Lancashire, 2 Beav. 473, per Lord Langdale ; and
Ph. 657 ; 1 De G. & Sm. 288. see Cafe v. Bent, 3 Hare , 249.
(e) Webb . Earl of Shaftesbury, 7 (g) See ante, p. 379.
Ves . 480 ; Attorney- General v. Clack, (h) Palmer's Settlement, V. C. Kin
1 Beav. 467 ; Peatfield v. Benn, 17 dersley, 18 April, 1857 ; Carter v.
Beav. 552 ; Middleton v. Reay, 7 Hare, Sebright, 26 Beav. 376 ; see post, p. 672.
902
CH. XXV .] APPOINTMENT OF NEW TRUSTEES . * 670
fund readily available the costs are often paid by the tenant
for life.
55. Inrolment in case of charity. On the appoint
ment of new trustees of a charity, the * conveyance [ * 670]
(a) Ashton v. Jones, 28 Beav. 460 ; (c) Warter ". Anderson, 11 Hare,
and see Shelf. Mortm. 130. 301 ; S. C. 1 Eq. Rep. 266.
[(b) In appointments under the (d) Phipps v. Lovegrove, 16 L. R.
statutory powers this is expressly pro Eq. 80.
vided for ; 23 & 24 Vict. c. 145, s. 27 ;
44 & 45 Vict. c. 41 , s. 31. ]
903
*671 APPOINTMENT OF NEW TRUSTEES . [CH. XXV.
[ (e) Oppenheim . Oppenheim, 9 P. & Lat. 533 ; and see Forshaw v. Hig
D. 60 ; Maudslay v. Maudslay, 2 P. D. ginson, 20 Beav. 487.
256.] (b) Ardill v. Savage, 1 Ir. Eq. Rep.
(f) Hamilton v . Fry, 2 Moll . 458 . 79.
(a) Courtenay v. Courtenay, 3 Jon.
904
CH. XXV. ] APPOINTMENT OF NEW TRUSTEES. *672
tee. But every trustee may relieve himself from the liabili
ties of the office by submitting the administration of the
trusts to the jurisdiction of the Court (c) . In a case where
there was a power of appointing new trustees, with a direc
tion that the number might be augmented or reduced, and
one of the three trustees wished to retire, but no new trus
tee could be found, the Court, under the Trustee Acts, ap
pointed the two continuing trustees to be the sole trus
tees (d) ; [but in similar cases the Court now refuses to
make the order, and requires a new trustee to be appointed,
unless the whole of the fund is immediately divisible (e) . ]
3. How application to be discharged from the trust should be
made. ―――――――― Formerly the application to the Court to be dis
charged from the trust was in general made by bill,
*
in order to give the Court an opportunity of exam- [ * 672]
ining into the merits of the case (a) ; but if a suit
were already pending, the trustee might then solicit his dis
missal by petition or motion (b) . It was formerly not the
custom of the Court to look through the proceedings, but a
reference was ordered to the Master (c) . Under the present
practice the Court, except in cases of special difficulty ,
usually appoints a trustee without a reference to chambers,
and without a suit, under the provisions of the Trustee
Acts .
4. Part of the trust estate lost. _______ If part of the original
trust estate is supposed to be lost, or is not forthcoming, the
Court will not appoint new trustees of the residue, so as to
make them partial trustees only, but will appoint them trus
(d) Bennett v. Burgis, 5 Hare, 295. 3Jon. & Lat. 529 ; Gardiner v. Downes,
(e) Howard o. Rhodes, 1 Keen, 581 ; 22 Beav. 395 ; see ante, p. 669.
Porter v. Watts, 16 Jur. 757 ; Hamil (g) Barker v. Peile, 2 Dr. & Sm.
ton v. Fry, 2 Moll . 458. 340.
(f) Greenwood v. Wakeford, 1 (h) 1 Beav. 582 ; and see Aldridge
Beav. 581 ; Forshaw v. Higginson, 20 v. Westbrooke, 4 Beav. 212.
Beav. 486 ; Courtenay v. Courtenay, (a) Legg v. Mackrell, 1 Giff. 165 ;
2 De G. F. & J. 551.
906
CH. XXV.] APPOINTMENT OF NEW TRUSTEES. * 673
CHAPTER XXVI.
SECTION I.
the rents actually received, but for the whole rents legally
demandable from the tenants (e).¹
―
* 2. Exceptions to the rule. The rule which gives [ * 675 ]
the cestui que trust the possession is applicable only
to the simple trust in the strict sense, for where the cestui
que trust is not exclusively interested , but other parties have
also a claim, it rests in the discretion of the Court whether
the actual possession shall remain with the cestui que trust or
the trustee, and if possession be given to the cestui que trust,
whether he shall not hold it under certain conditions and
restrictions (a).
Thus a testator devised all his real estate to trustees in
fee, upon trust to convey the same for a term of 500 years
(the trusts of which were to raise certain annuities and sums
(c) Kaye v. Powel, 1 Ves. jun. 388 ; Pugh v. Vaughan, 12 Beav. 517 ;
408. Hoskins v. Campbell, W. N. 1869, p.
(a) Jenkins v. Milford, 1 J. & W. 59 ; Etchells v. Williamson, W. N.
629 ; Baylies v. Baylies, 1 Coll. 537 ; 1869, p. 61 .
and see Denton v. Denton, 7 Beav.
1 All benefits and profits of the estate go to the cestui que trust. Whether
the trustee or cestui que trust is entitled to the possession of the trust property
depends upon the character of the trust, the duties of the trustee and the
rights and privileges of the cestui que trust. If the care and management of
the trust estate requires the trustee to remain in possession he will do so ;
Matthews v. McPherson, 65 N. C. 189 ; Moseley v. Marshall , 22 N. Y. 200 ;
Young v. Miles, 10 B. Mon. 290. The trustee may cultivate the land ; May
field v. Kilgour, 31 Md . 240. If the cestui que trust is a female, it is all the
more probable that the trustee will be kept in possession ; Wickham v .
Berry, 55 Pa. St. 70. If it is plain that the settlor intended the cestui que trust
to have possession , as in the occupation of a residence as a home, the settlor's
intention must be carried out ; Campbell v. Prestons, 22 Gratt. 396. If the
trust property be personal in its nature, such as stocks, bonds, mortgages
and other personal securities, the trustee is ordinarily entitled to possession,
even if he has to obtain it from the cestui que trust ; Western R. R. Co. v.
Nolan, 48 N. Y. 513 ; Pace v . Pierce, 49 Mo. 393 ; Beach v. Beach, 14 Vt . 28 ;
Ryan . Bibb, 46 Ala. 323. The cestui que trust cannot legally question the
possession of the trustee ; White v. Albertson, 3 Dev. 241 ; Porter . Ray
mond, 53 N. H. 519. Any suit to obtain possession of chattels to be held in
trust, must be brought in the trustee's name ; Thompson v . Ford, 7 Ired . 418 ;
Parsons v. Boyd, 20 Ala. 112 ; Schley v. Lyon, 6 Ga. 530 ; Murphy v. Moore,
4 Ired . Eq . 118. The trustee must protect the rights of the cestui que trust in
every way ; Roden v. Murphy, 10 Ala . 804 ; Wood v . Burnham, 6 Paige, 513 ;
Blin v . Pierce, 20 Vt. 25 ; Welch v. Mandeville, 1 Wheat. 233. The trustee
being liable for all funds and personal property should control them, have a
vote on stocks held in trust, a right to foreclose a mortgage, and the like ;
In re Barker, 6 Wend . 509 ; and so may his executor or administrator ; Bunn
v. Vaughan, 3 Keyes, 345 ; North Shore Ferry Co. 63 Barb. 556.
909
* 676 CESTUI QUE TRUST'S POSSESSION. [ CH. XXVI. S. 1.
clear trusts : for where the equity was at all doubtful, the
rights of the parties were even then referred to the proper
tribunal (9) . " Lord Mansfield," as Lord Redesdale observed ,
"had on his mind prejudices derived from his familiarity with
the Scotch law, where law and equity are administered in
the same Courts " (h) . From the time of Lord Mansfield ,
and until the recent Act, it was established : ―――― First,
that a cestui que trust could * not recover in eject- [ * 678 ]
ment (a) , unless a surrender to him of the legal estate
could be reasonably presumed (b) , (which, of course, could
not be where the circumstance of the outstanding legal estate
appeared on the declaration or special case (e) , ) and the
cestui que trust had no alternative but to bring his action in
the name of the trustee, who was to be indemnified against
the costs (d) Secondly, that the trustee, as the tenant of the
legal estate, might recover in ejectment from his own cestui
que trust (e) ; and the cestui que trust had no defence to the
action at law, but must have had recourse to an injunction
in equity (ƒ) , and the clause in the Common Law Procedure
Act, 1854, which authorised an equitable defence at law did
not apply to ejectment (g) .However, a lessee under a feme
covert entitled to her separate use might protect himself by
equitable plea against trespass by the husband, in whom the
legal estate was vested (h) .
-
5. 36 & 37 Vict. c. 66. Now, generally, by 36 & 37 Vict.
c. 66, s. 24, equitable defences are to be recognised in all
the Courts, so that for the time to come the full merits,
(g) Doe v. Pott, Doug: 695, per see Doe v. Staple, 2 T. R. 696 ; Roe v.
Lord Mansfield ; Goodright v. Wells, Reade, 8 T. R. 122.
Id. 747, per eundem. (d) Annesley v. Simeon, 4 Mad.
(h) Shannon v. Bradstreet, 1 Sch. 390 ; and see Reade . Sparkes , 1
& Lef. 66. Moll . 11 ; Jenkins v. Milford , 1 J. &
(a) Doe v. Staple, 2 T. R. 684 ; see W. 635; Ex parte Little, 3 Moll . 67.
Barnes v. Crow, 4 B. C. C. 10 & 11 ; (e) See Roe v. Reade, 8 T. R. 122,
Doe v. Sybourn , 7 T. R. 3 ; Goodtitle 123.
v. Jones, 7 T. R. 45, and following (f) Shine v. Gough, 1 B. & B. 445.
pages ; Doe v. Wroot, 5 East, 138. (g) Neave v. Avery, 16 C. B. 328 ,
(b) Doe v. Sybourn, 7 T. R. 2 ; see and see Smith v. Hayes, 1 I. R. C. L.
Doe v. Staple, 2 T. R. 696 ; Goodtitle 333 ; Clarke v. Reilly, 2 I. R. C. L.
v. Jones, 7 T. R. 45, and following 422.
pages ; Roe v. Reade, 8 T. R. 122. (h) Allen v. Walker, 5 L. R. Ex.
(c) Goodtitle v. Jones, 7 T. R. 43 ; 187.
913
*679 CESTUI QUE TRUST'S POSSESSION. [CH. XXVI. S. 1.
the benefit of all parties interested (d) , and should the settlor
obtain them from the trustees, and thereby be enabled to
deal with the estate as absolute owner, the trustees, if it
appeared they had acted fraudulently, or under such gross
negligence as amounted to constructive fraud, would be held
personally responsible for the consequences (e ) . However,
a tenant for life, if the estate be legal, is entitled to the
custody of the deeds (ƒ) , and may bring an action of
detinue (g) , or, unless he has shown that he cannot be safely
trusted with the deeds (h) , may take proceedings in equity
for the recovery of them (i) ; and as equity follows law, the
Court, in the absence of special trusts requiring the posses
sion of the deeds by the trustees, will not take the deeds
from the tenant for life who has got possession of them (j) ;
and where the tenant for life in equity is not the settlor, and
therefore cannot by suppressing the settlement make a title
to the fee simple, has ordered the deeds to be de
livered to the tenant for life * in equity (a) , subject [ * 680 ]
of course to the remainderman's right to production
and inspection to a reasonable extent (b) . Where the legal
estate , whether of freeholds , copyholds, or leaseholds, is
(c) Smith v. Pavier, V. C. Wood, them during the life of Joel Smith .
18 July, 1852. In this case J. Smith On his death the infant children by
devised freeholds and leaseholds for their next friend, with two other
long terms to Wade and Pavier and persons as co-plaintiffs (being their
their heirs to the use of Joel Smith guardians appointed by the court )
for life with remainder to Wade and filed their bill against Pavier the
Pavier to preserve contingent remain surviving executor for delivery of
ders, with remainder to the children the deeds, and there being no allega
of Joel Smith (who were infants at tion of unpaid debts, the delivery of
the filing of the bill) and the heirs of the deeds to the two guardians was
their bodies, with remainders over, ordered.
including limitations to Wade and [(d) Ex parte Rogers, 26 Ch. D.
Pavier to preserve contingent remain 31.]
ders, who were also executors . Wade (e) Wynne v . Humberston, 27
and Pavier took possession of the title Beav. 421 .
deeds on the testator's death , and held
916
CH. XXVI. S. 1.] STATUTORY POWERS . *681
•
disqualified from sporting unless they had lands and tene
ments, & c., of the clear value of 100l. per annum ; and it was
decided that a cestui que trust of lands to that amount was
within the intention of the Act. Lord Mansfield observing,
that " the privilege was given to property, and the cestui que
trust was substantially the owner and the trustee only nomi
nally " (e). By the provisions of the late Game Act no
qualification is now necessary (ƒ) .
16. Right of cestui que trust to vote at elections for members
of Parliament. ―――― By 6th Vict. c. 18, s . 74, “ no trustee of
lands or tenements shall in any case have a right to
[* 682 ] vote in any such election, * (i.e. for a Member of Par
liament) for or by reason of any trust estate there
in, but the cestui que trust in actual possession, or in the
receipt of the rents and profits thereof, though he may
receive the same through the hands of the trustee, shall and
may vote for the same notwithstanding such trust " (a) .
[ 17. Protector of the settlement. -- The person entitled
to the beneficial enjoyment of the rents and profits of the
settled property, under a settlement made since the Fines
and Recoveries Act, is the protector of the settlement under
section 22 of the Act, as owner of the prior estate, and not
the trustees in whom the legal estate is vested ; and in a set
tlement made before the Act, if the estates are equitable the
beneficial owner is also protector (b) . ]
good out of the profits earned during the life of the next
tenant for life and not out of the corpus (c) , unless a con
trary intention appears in the instrument creating the trust.¹]
21. Succession duty. ― The tenant for life of an estate
must bear the expense of accounts necessary to be taken for
the discharge of the succession duty payable by the tenant
for life as successor (d) , and must discharge the rates and
taxes payable during his life (e) .
――
22. Fencing. The expense of fencing newly acquired
enclosures will fall upon the corpus (ƒ) .
¹ Re Millichamp, 52 L. T. N. S. 758.
920
CH. XXVI. S. 1. ] JUS DISPONENDI. * 684
Of course the use of the chattels by the tenant for life does
not enable him to pawn them beyond the extent of his own
interest (c) .
―
[ 25. Heirlooms . By the Settled Land Act, 1882, s . 37, a
tenant for life may sell personal chattels settled as heirlooms ,
and the money arising by the sale is to be capital money
under the Act, and to be dealt with accordingly, or it may
be invested in the purchase of other chattels to be settled
and held on the same trusts . But no sale or purchase of
chattels under the section is to be made without an order of
the Court (d) . ]
26. Stock in the funds. - Where the trust fund consists
of stock, the cestui que trust is usually put in possession of
the dividends by a power of attorney from the trustee to the
cestui que trust's bankers, with a written authority from the
trustee to the bankers to credit the cestui que trust with the
dividends as and when received, by which arrangement the
trustee is spared the trouble of repeated personal attendances
at the Bank of England, and the entries in the books of the
private bankers are sufficient evidence of the receipt. In
cases where the cestui que trust is tenant for life, this course
seems free from objection ; but where his interest is one
which may determine in his lifetime, some risk is incurred of
the power of attorney and authority being acted upon by the
bankers after the determination of the cestui que trust's estate ;
and it is conceived that the trustee would be liable to the
other cestui que trust for any misappropriation thus taking
place . The trustee must be careful to see that the power of
attorney extends only to the receipt of the dividends, and
not to the sale of the stock itself ; otherwise, if the bankers
sell out the stock and the proceeds are misapplied, the
trustee will be answerable (e) .
[ and see Re Brown's Will, 27 Ch. D. [ (d) As to this section see ante, p .
179.] 566.]
(c) Hoare v. Parker, 2 T. R. 376. (e) See Sadler v. Lea, 6 Beav. 324.
921
*685 JUS DISPONENDI. [CH. XXVI. S. 1.
. (b) Hannah v. Hodgson, 30 Beav. tress." This claim was made by the
19 ; King v. King, 1 De G. & J. 663. trustees in Hogg v. Jones , reported
(c) Firmin v. Pulham, 2 De G. & upon another point, 32 Beav. 45, and
Sm. 99 ; Campbell v. Home, 1 Y. & M. R. ordered delivery of possession
C. C. C. 664. to the remainderman , on his under
(d) Palairet v. Carew, 32 Beav. taking in effect to use due diligence
564. in receiving the arrears and handing
(e) See Bacon's Abridg. " Dis them over.
924
CH. XXVI . S. 1.] CONVEYANCE BY TRUSTEES . *687
(c) Pearson v. Lane , 17 Ves . 101. per Lord Eldon ; Newton v. Askew,
(a) See Walter v. Maunde , 19 11 Beav. 152 ; Gray v. Haig, 20 Beav.
Ves . 429.
219 ; Burrows v. Walls, 5 De G. M.
(6) Springett v. Dashwood , 2 Giff. & G. 253.
521 ; Walker v. Symonds , 3 Sw . 58,
929
*691 ESTATE IN SPECIAL TRUST. [CH. XXVI. S. 2.
debts, the party entitled subject to the trust may say to the
trustee, What estates have you sold ? What is the amount
of the monies raised ? What debts have been paid ? &c . (e) .
It is therefore the bounden duty of the trustee to keep clear
and distinct accounts of the property he administers , and he
exposes himself to great risks by the omission (d) . It is the
first duty, observed Sir T. Plumer, of an accounting party,
whether an agent, a trustee, a receiver, or an executor (for
in this respect they all stand in the same situation ) , to be
constantly ready with his accounts (e).
6. Sanction of co-trustees' accounts. ―Not only is a trustee
bound to render accurate accounts, but if he stand by and
sanction the rendering of improper accounts by a defaulting
trustee, he becomes liable himself for the misrepresen
tation (f).
7. Legatee. - A legatee, as being a quasi cestui que trust, is
entitled to have a satisfactory explanation of the state of the
testator's assets and an inspection of the accounts, but not
to require a copy of the accounts at the expense of the
estate (g).
(c) Clarke v. Ormonde, Jac. 120, Kemp v. Burn, 4 Giff. 348 ; Wroe v .
per Lord Eldon. Seed, 4 Giff. 425 ; Payne v. Evens,
(d) Freeman v. Fairlie, 3 Mer. 43, 18 L. R. Eq . 356 ; Heugh v . Scard, 33
per Lord Eldon. L. T. N. S. 659 ; 24 W. R. 51 ; and
(e) Pearse v. Green, 1 J. & W. Jeffreys v. Marshall, ubi supra. In
140 ; and see Hardwicke v. Vernon, taking accounts against the trustee
14 Ves. 510 ; White v. Lincoln , 8 Ves. after a long lapse of time, the Court
363 ; Turner v. Corney, 5 Beav. 515 ; will show every indulgence it can to
Anon. 4 Mad. 273 ; Jeffreys v. Mar the trustee for enabling him to clear
shall, 23 L. T. N. S. 548 ; 19 W. R. his accounts, Banks v. Cartwright, 15
94 ; Underwood v. Trower, W. N. W. R. 417.
1867 , p. 83. As to the costs of suits (f) Horton v. Brocklehurst (No.
arising out of a refusal to render 2 ), 29 Beav. 504.
accounts, see Springett v. Dashwood, (g) Ottley v. Gilby, 8 Beav. 602.
2 Giff. 521 , and the cases there cited ;
930
* CHAPTER XXVII . [ *692]
SECTION I.
OF ASSIGNMENT.
(e) See an account of the fluctua (c) Philips v. Brydges, 3 Ves. 128,
tion in 3d edit . p. 601-604. per Lord Alvanley ; Salvin v. Thorn
(a) Penny v. Allen, 7 De G. M. & ton, Amb. 585 ; S. C. 1 B. C. C. 73,
G. 425. note.
(b) North v. Williams, 2 Ch. Ca. (d) Philips v. Brydges, 3 Ves. 126,
64, per Lord Nottingham ; Highway per Lord Alvanley ; 2 Ch. Ca. 49 ;
v. Banner, 1 B. C. C. 586 ; and see Marwood v. Turner, 3 P. W. 171 ;
Wickham v. Wickham, 18 Ves. 418. Goodrick v. Brown, 2 Ch. Ca. 49 ;
S. C. Freem. 180.
933
*695 EQUITABLE ENTAIL. [CH. XXVII. S. 1.
(a) See the law upon this subject equity, but personal to the parties,
collected by Lord St. Leonards in will not affect the assignee, Beresford
Allen v. Allen, 1 Conn . & Laws . 427 ; v. Chambers, 5 Ir. Eq. R. 482 ; Bur
and see Edwards v. Champion, 1 Eq. rough v. Moss, 10 B. & C. 558 ; Re
Rep. 419 ; Betty v. Humphreys, 9 I. Dublin and Rathcoole Railway Com
R. Eq. 332 ; Batteste v. Maunsell, 10 pany, 1 L. R. Ir. 98. ]
I. R. Eq. 97 , 314 ; [ Re Barber's Set (c) Choses in action are now made
tled Estates, 18 Ch . D. 624 ; Black assignable if notice in writing be given
hall v . Gibson, 2 L. R. Ir. 49 ] . to the debtor or trustee, [but they are
[ (b) A right of set off subsisting expressly made subject in the hands
between the assignor and the person of the assignee to the subsisting
against whom the equity is enforce equities ] . See 36 & 37 Vict. c. 66, s .
able being a right not attaching to the 25, subs . 6.
1 A purchaser will take subject to all the equities or charges upon an estate,
if he have notice of them ; Wright v. Dame, 22 Pick. 55 ; Caldwell v. Car
rington, 9 Pet. 86 ; Wormley v. Wormley, 8 Wheat. 421 ; Smith v. Walser, 49
Mo. 250 ; Peebles v. Reading, 8 Serg. & R. 495 ; Jones v. Shaddock, 41 Ala.
262 ; Lyford . Thurston, 16 N. H. 399. If a transfer is procured by fraud,
the purchaser or grantee becomes a trustee ; Sadler's App . 87 Pa . St. 154 ;
Lyons v. Bodenhamer, 7 Kans. 455 ; Smith v. Bowen, 35 N. Y. 83. A pur
chaser without notice, if for valuable consideration, is entitled to his priority,
not only at law, but in equity as well ; Dana v. Newhall, 13 Mass . 498 ; Boone
v. Chiles, 10 Pet. 177 ; Griffith v. Griffith, 9 Paige, 315 ; Dillayev. Commercial
Bank, 51 N. Y. 345 ; Boynton v. Rees, 8 Pick. 329 ; High v. Batte, 10 Yerg.
335 ; Trull v. Bigelow, 16 Mass. 406. But a legal title controls as against
equities ; Vattier v. Hinde, 7 Pet. 252 ; Flagg v. Mann, 2 Sumn . 486 ; Wailes
v. Cooper, 24 Miss. 208 ; Shirras v. Caig, 7 Cranch, 48 ; Daniel v . Hol
lingshead, 16 Ga . 190. The consideration must be a valuable one ; Pat
ten v. Moore, 32 N. H. 382 ; Swan v. Ligan, 1 McCord Ch . 232 ; Frost
v. Beekman, 1 Johns. Ch . 288 ; Boon v. Barnes, 23 Miss . 136. All the
935
*696 ASSIGNEE BOUND BY EQUITIES . [CH. XXVII . S. 1.
money should have been actually paid to protect the purchaser ; Worm
ley v. Wormley, 8 Wheat. 421 ; Wood v. Mann, 1 Sumn. 506. But see Par
ker v. Crittenden, 37 Conn. 148. If the money is secured, the purchaser is a
trustee ; Palmer v. Williams, 24 Mich. 333 ; Rhodes v. Green, 36 Ind. 10 ; Jew
ett v. Palmer, 7 John. Ch. 65 ; Parkinson v. Hanna, 7 Blackf. 400. And the
title must have passed before notice to protect the purchaser ; Abell v. Howe,
43 Vt. 403 ; Doswell v. Buchanan, 3 Leigh . 362 ; Bush v . Bush, 3 Strob. Eq.
131. Possibly, if there has been a partial payment, the benefit will result to
the purchaser pro tanto ; Lewis v. Bradford, 10 Watts , 67 ; Juvenal v . Jack
son, 2 Harris, 519 ; Paul v. Fulton, 25 Mo. 156. And the purchaser will be
entitled to an allowance for improvements made ; Farmers' Loan Co. v.
Maltby, 8 Paige, 361 ; Everts v. Agnes, 4 Wis . 343.
936
CH. XXVII. S. 1. ] ASSIGNEE BOUND BY EQUITIES . *697
(h) Burn v. Carvalho, 4 M. & Cr. ante, p. 242 ; and see Ex parte Ark
702 ; Bell v. London and North West wright, 3 Mont. D. & De G. 129 ;
ern Railway Company , 15 Beav. 552 ; Bartlett v. Bartlett, 1 De G. & J. 127 ;
Dufaur v. Professional Life Assurance Re Webb's Policy, ubi sup.; Daniel
Company, 25 Beav. 599 ; Re Lowe's v. Freeman, 11 I. R. Eq. 233, 638 ;
Settlement, 30 Beav. 95. Re Irving, 7 Ch . D. 419 ; where it
(i) Donaldson v. Donaldson, Kay, was held that the equitable assign
711 . ment created a trust for the assignee
(a) Justice v. Wynne, 12 Ir. Ch. and so took the case out of the order
Rep. 289 ; Re Webb's Policy, 36 L. J. and disposition clause ; Re Power, 11
N. S. Ch . 341. L. R. Ir. 93. ]
(b) Scott v. Hastings, 4 K. & J. (d) Cothay v. Sydenham, 2 B. C.
633. C. 391 ; Leslie v. Baillie, 2 Y. & C. C.
(c) 46 & 47 Vict. c. 52, s . 44. [ See C. 91 ; [and see Re Lord Southamp
1 S. C. pp. 445, 453. But see the observations of Brett, L. J., S. C. at p. 440.
946
CH. XXVII. S. 1.] NOTICE OF ASSIGNMENT . *704
time, but who may and probably will become such, confers
no right to priority.
Thus, where A. had a first charge, and
B. the second charge, on the proceeds to arise from the sale
of an officer's commission ; and B. first, and then A., gave
notice of their respective charges to the army agent of the
regiment ; but both notices preceded the time when the army
agent first actually assumed the character of trustee ; it was
held that A. retained his priority (a) . [ Where an officer
retires under " The Regulation of the Forces Act, 1871 " (b) ,
the amount payable on his retirement, though previously
lodged with the army agents and entered in their books under
the officer's name , cannot be affected by notice of an incum
brance created by him until after his retirement is gazetted (c).
But as soon as the retirement is gazetted , the amount lodged
becomes the money of the retiring officer in the hands of the
army agents, and is liable to set-off in respect of any monies
owing by the officer to the army agents (d) . ]
17. These cases do not disturb the great principle that
an equitable assignment is complete, if notice be given to
the person by whom payment of the assigned debt is to
be made, whether that person be himself liable, or is merely
charged with the duty of making the payment ; and it is
not material whether the right to receive the money and
the consequent obligation to pay is at the time when the
notice is given absolute or conditional, so long as the per
son who receives the notice is himself bound by some con
tract or obligation at the time when notice reaches him to
receive and pay over, or to pay over if he has previously
received, the fund out of which the debt is to be satisfied.
The cases on the sales of commissions turn upon the fact
that the notice was given to a mere possible agent before
he was an actual agent, ― before the time when he was in
any sense liable to make payment, neither being himself a
debtor nor at that time charged with the duty of paying the
money in question (e) .
18. Notice as between volunteers . -➖➖ -The doctrine of priority
by notice applies only in favour of purchasers ; for as between
two volunteers notice is not necessary, but qui prior est tem
pore potior est jure, whether the first assignee did or not give
notice (f).
[ *709 ] * 19. Simultaneous notices. Where two or more
notices are served simultaneously, the incumbrances
rank according to their respective dates (a) .
20. To whom notice should be given. - The notice , written
or unwritten (b) , but better written, should be given to the
trustees themselves, [ and notice to the solicitors of the trus
tees will be of no effect unless the solicitors are expressly or
impliedly authorised to receive such notices ( c) ; ] and where
there are two settlements, one original and the other deriva
tive, the notice should be given to the trustees of the origi
nal settlement who hold the property (d) . Where notice to
one trustee would be sufficient, it may be given to one who
is not the acting trustee, the law recognising no distinction
between an acting and a passive trustee (e ) . Where the
trust fund consists of shares in a company, the notice may be
sent to the secretary (f) ; but notice to A., a director, and
B., the actuary, was in one case considered sufficient (y) ;
(c) See Warburton v. Hill, Kay,478. (e) Warburton v. Hill , Kay, 470 ;
(d) Etty v. Bridges, 2 Y. & C. C. Re Holmes, W. N. 1885, p. 6. ]
C. 486. [ See as to the notice which [ (a ) As to the meaning of the
has been substituted in the place of words " not purporting to be by way
the writ of distringas Rules of the of charge only," see National Pro
Supreme Court, Ord. 46, R. R. 2 et vincial Bank v. Harle, 6 Q. B. D.
seq.; and post, Chap. xxxii, s. 1. ] 626 ; Burlinson v. Hall, 12 Q. B. D.
347.]
1 Newman v. Newman, 28 Ch. D. 674.
959
*713 "QUI PRIOR EST TEMPORE," ETC. [CH. XXVII. S. 1 .
Fourthly. Of the rule Qui prior est tempore potior est jure.
1. General rule. " The rule," observed V. C. Kinders
ley (b), " is sometimes expressed in this form : - ' As be
tween persons having only equitable interests, qui prior est
tempore potior est jure.' This is an incorrect statement of it ;
for not only is it not universally true, as between persons
having only equitable interests , but it is not universally true
even where their equitable interests are of precisely the same
nature, and in that respect precisely equal, as in the common
case of two successive assignments for valuable consideration
of a reversionary interest in stock standing in the names of
trustees, where the second assignee has given notice, and the
first has omitted it. Another form of stating the rule is
- _6
this : As between persons having only equitable inter
ests, if their equities are equal, qui prior est tempore potior
est jure. But even this enunciation of the rule (when ac
curately considered ) seems to involve a contradiction . For
when we talk of two persons having equal or unequal equi
ties, in what sense do we use the word ' equity ' ? For ex
ample, when we say that A. has a better equity than B., it
means only that, according to those principles of right and
justice, which a Court of equity recognises and acts upon, it
will prefer A. to B., and will interfere to enforce the rights
of A. as against B. And therefore it is impossible (strictly
speaking) that two persons should have equal equities, ex
cept in a case in which the Court of equity would altogether
refuse to lend its assistance to either party as against the
other. To lay down the rule, therefore, with perfect accu
racy, I think it should be stated in some such form as this : ―――――――――――――
'As between persons having only equitable interests , if their
equities are in all other respects equal, priority of time gives
"9
the better equity ; or qui prior est tempore potior est jure.'
" Questions of priority between equitable incumbrancers," said
L. J. Turner, “ are in general governed by the rule qui prior
est tempore potior est jure. The rule, as I conceive, is
founded on this principle, that the creation or declaration of
a trust vests an estate in the person in whose favour the
(f) Allen v. Knight, 5 Hare, 272, 170 ; [ and see Harpham v. Shacklock,
11 Jur. 527 ; Dixon v. Muckleston , 8 19 Ch. D. 207 ]. But see The Queen
L. R. Ch. App . 155. v. Shropshire Union Canal Company,
(g) Rice v. Rice, 2 Drew. 83. 8 L. R. Q. B. 420 ; 7 L. R. H. L. 496 ;
(h) Cory v. Eyre, 1 De G. J. & S. [Bradley v. Riches, 9 Ch. D. 189] .
149 ; [Bradley v. Riches, 9 Ch. D. [(a) Northern Counties of England
189] . Fire Insurance Company v. Whipp, 26.
(i) Cory v. Eyre, 1 De G. J. & S. Ch. D. 482, 491 ] .
962
CH. XXVII. S. 1.] EQUITIES . *716
(a) Hamilton v. Royse, 2 Sch. & (d) Aicken v. Macklin, 1 Dru. &
Lef. 315 ; Handcock v. Handcock, 1 Wal. 621.
Ir. Ch . Rep. 444. (e) Aicken v. Macklin, 1 Dru. &
(b) Handcock v . Handcock, 1 Ir. Wal. 621 ; Handcock v. Handcock, 1
Ch. Rep. 444 ; and see Re Roddy's Es Ir. Ch. Rep. 444 ; and see Hughes v.
tate, 11 Ir. Ch. Rep. 369 ; Aicken v. Williams, 3 M. & G. 690 ; Averall v.
Macklin, 1 Dru. & Walsh. 621. Wade, LI. & G. t. Sugden, 259.
(c) Hartley v. O'Flaherty, Beat. (f) See Hartley v. O'Flaherty,
61 ; Ll. & G. t. Plunket, 208 ; and see Beat. 69.
Re Roddy's Estate, 11 Ir. Ch . Rep.
369.
966
CH. XXVII. S. 1.] EQUITIES . *719
creditors, who had merely a general and roving lien , and did
not stand in the place of specific purchasers (g) , and even
where the settlement was voluntary and without a covenant
against incumbrances, it was ruled by the M. R. in Ireland
that the owners of other estates devised by the settlor had
no equity for contribution from the settled estate to pay off
a judgment to which both settled and unsettled estates were
subject at the date of the settlement ( h) . But on appeal the
decision was reversed (i) .
*
[ So where estates were expressed to be settled [ * 719 ]
for value, subject to charges amounting to 65,000l .,
with a covenant against incumbrances except " the charges
now existing thereon, amounting to the said sum of 65,000l.,"
and a power was reserved of further charging the property
to a specific amount, which power was subsequently exer
cised, but the charges upon the estates at the time of the
settlement in fact far exceeded 65,000l . , it was held that
the purchasers under the settlement were entitled to be re
couped the difference between the charges actually sub
sisting and the 65,000l . , in priority to the mortgagees under
the power (a) . ]
14. Law in England . - These principles, which have been .
acted upon in Ireland, will no doubt be followed to some
extent in England . If, for instance, A. , possessing Blackacre
and Whiteacre [which are subject to a common incumbrance, ]
mortgages Blackacre to B., and covenants that it is free from
incumbrances, this is a contract between A. and B. , and
every purchaser of Whiteacre with notice of the incumbrance
and of the contract must be bound by the contract.
15. Rule in equity in absence of contract. ― - But if there be
no express contract between A. and B., then the right of, B.
depends on a rule of equity, and as against A. himself it is
clear that B. can insist on throwing the whole incumbrance
on Whiteacre (b) ; and so as against any person claiming a
(c) See Averall v. Wade, Ll. & G. R. Eq. 110. As to the right of judg
t. Sugden, 252. ment creditors to marshall' inter se,
(d) Vend. & P. 746, 14th ed. see Re Lynch's Estate, 1 Ir. Rep. Eq.
(e) 4 De G. & J. 652, & MS. 396.
(f) 1 Y. & C. C. C. 401 ; Bugden (a) Re Grady, 13 Ir. Ch . Rep. 154.
v. Bignold, 2 Y. & C. C. C. 377 ; and See Wells v. Kilpin , 18 L. R. Eq.
see Re Lawder's Estate , 11 Ir. Ch. 298.
Rep. 346 ; In re Mower's Trust, 8 L.
968
CH. XXVII. S. 2.] DEVISE OF A TRUST . * 721
SECTION II.
OF TESTAMENTARY DISPOSITION.
(i) See ante, p. 248. does not state whether the will was or
(a) Hussey v. Grills, Amb. 300. not so executed . Amb. Blunt's edit.
The whole argument in this case as (b) Willan v. Lancaster, 3 Russ.
sumes that the will as opposed to the 108.
codicil was executed according to the (c) 1 Vict. c. 26.
Statute of Frauds, and yet the report (d) Lock v. Foote, 5 Sim. 618 ;
states that the will was in writing, Earl of Lincoln's case, 1 Eq. Ca. Ab.
"but not attested according to the 411 ; S. C. Shower's P. C. 154 .
Statute of Frauds." The Reg. Lib.
971
*723 SEISIN OF A TRUST. [CH. XXVII. S. 3.
ble seisin, the sister of the whole blood, as heir to the brother,
would exclude the brother of the half blood (b) .
3. Marquis of Cholmondeley v . Lord Clinton. The doc
trines of the Court upon the subject of equitable disseisin
cannot be better illustrated than by a statement of the
well-known case of the Marquis of Cholmondeley v. Lord
Clinton (c). The circumstances were briefly these : -
George, Earl of Orford, conveyed certain manors and here
ditaments to the use of himself for life, remainder to the heirs.
of his body, remainder as he should by deed or will appoint,
remainder to the right heirs of Samuel Rolle, with a power
reserved of revocation and new appointment. Some time
after, the Earl executed a mortgage in fee , which
operated in equity as a revocation of the settle- [ * 724 ]
ment pro tanto. In 1791 the Earl died without issue
and intestate, and upon his death the ultimate remainder
(which had been a vested interest in the Earl himself, as the
heir of Samuel Rolle at the date of the deed) , should have
descended to the right heir of the Earl, but, the parties mis
taking the law, the person who was heir of Samuel Rolle at
the death of the Earl was allowed to enter on the premises,
and continued in possession, subject to the mortgage, up to
the commencement of the suit. The bill was filed in 1812,
by the assign of the right heir of the Earl against the mort
gagee and the assign of the right heir of Samuel Rolle, for
redemption of the premises, and an account of the profits.
It was debated whether, as the legal estate was vested in the
mortgagee, and the heir of Samuel Rolle had held the posses
sion subject to a subsisting mortgage, the assign of the Earl's
heir, to whom the equity of redemption belonged in point of
right, had been disseised of his equitable interest, and was
now barred by the effect of time. Sir W. Grant argued,
that although there might be what was deemed a seisin of
an equitable estate, there could be no disseisin - first, be
cause the disseisin must be of the entire estate, and not of a
limited and partial interest in it ; and, secondly, because a
tortious act could never be the foundation of an equitable
(b) See now 3 & 4 W. 4, c. 106. (c) 2 Mer. 171 ; 2 J. & W. 1 ; and
see Penny v. Allen, 7 De G. M. & G. 422.
973
*725 SEISIN OF A TRUST . [CH. XXVII. S. 3.
OF MERGER.¹
¹ Merger. Where the legal estate and equitable estate come into possession
of the same person, the equitable becomes merged in the legal estate ; Hop
kinson v. Dumas, 42 N. H. 306 ; Healey v. Alston, 25 Miss. 190 ; Gardner v.
975
*726 MERGER . [CH. XXVII . S. 4.
both or were subsisting at the time of his death ; and the ques
tion of merger or non-merger is held to be an open one up to
the death of a testator (f) , and for the purpose of collecting
the intention parol evidence is admissible ( g) .
14. Rule where charge and inheritance become united.
Where a person is entitled to a charge and to the
* inheritance under the same instrument (a ) , or being [ * 730 ]
first entitled to the charge subsequently acquires the
inheritance as devisee ( b) , or heir ( c ) , or being first entitled
to the inheritance acquires the charge by bequest (d) , or by
succession as next of kin ( e ) , in all these cases, in the ab
sence of anything said or done by the owner of the charge
and of the estate to show what his intention was (ƒ) , the
Court presumes the charge to be merged or not according as
merger would or not be for the owner's benefit. If, there
fore, the owner would, as in the case of an infant previously
to the late Wills Act, have had a larger testamentary power
over the charge than over the inheritance (g) , or if the mer
ger would let in subsequent or competing incumbrances (h)
of substantial amount (i) , or the debts of the testator or
(j) Davis v. Barrett, 14 Beav. 552 ; (b) Gunter v. Gunter, 23 Beav. 571 ;
Sing v. Leslie, 2 H. & M. 68. and see Tyrwhitt v. Tyrwhitt, 32
(k) Price v. Gibson, 2 Eden, 115 ; Beav. 244.
Donisthorpe v. Porter, Ib. 162 ; Lord (c) Keogh v. Keogh, 8 I. R. Eq .
Compton v. Oxenden , 2 Ves. jun. 263 ; 179.
Swinfen v. Swinfen (No. 3) , 29 Beav. (d) Pitt v. Pitt, 22 Beav. 294 ;
199. Hood v. Phillips, 3 Beav. 513.
(a) Hood v . Phillips, 3 Beav. 513 ; [ (e ) Mohesh Lal v. Mohunt Bawan
Pitt v. Pitt, 22 Beav. 294 ; Gunter v. Das, 10 L. R. Ind. App. 62. ]
Gunter, 23 Beav. 571 ; Swinfen v.
Swinfen (No. 3) , 29 Beav. 199.
982
CH. XXVII. S. 4.] MERGER. *732
17. Tenant for life paying off a charge. - If the person pay
ing off the charge be tenant for life, the Court considers that
as his interest ceases with his death, he could never have
meant that the charge should be extinguished instead of
enuring to the benefit of his representatives (ƒ) ; and the
same rule applies though the tenant for life be or become
entitled (subject to remainders to his own issue which fail )
to the ultimate reversion in fee (g) . But even in the case of
tenant for life, positive evidence may be given by parol that
he meant to merge the charge (h).
18. Tenant in tail in possession and of age paying off a charge.
-As tenant in tail in possession, if of age, has an absolute
power of disposition over the estate, subject to his compliance
with certain forms, the presumption is, that if he pay off a
charge he meant to merge it (i) .
19. Special cases where charge has been kept on foot. - But
if tenant in fee-simple, subject to an executory limitation over,
which he cannot destroy (j) , or a tenant in tail under an Act
of Parliament, who is incapable of acquiring the fee-simple (k) ,
or tenant in tail in remainder during the existence of
the tenant for * life whose issue, if any, will be prior [ *732]
tenants in tail (a), pay off a charge, in all these cases ,
as the interest of the party required the charge to be kept on
foot, the presumption is that such was the intention. And
where a tenant in tail paid off a charge with the intention of
extinguishing it believing himself to be tenant in fee-simple,
and assuming that as the basis of the transaction, the Court
considered, on the ground of mistake, that the tenant in tail
had not merged the charge (b) .
(f) Pitt v. Pitt, 22 Beav. 294 ; hamshire v. Hobart, 3 Sw. 199 ; Keogh
Burrell v. Earl of Egremont, 7 Beav. v. Keogh , 8 I. R. Eq. 179.
205 ; Redington v. Redington, 1 B. & (j) Drinkwater v. Combe, 2 S. & S.
B. 131 ; Faulkner v. Daniel , 3 Hare , 340.
217 ; Lindsay v. Earl Wicklow , 7 I. R. (k) Shrewsbury v. Shrewsbury, 3
Eq . 192. B. C. C. 120 ; S. C. 1 Ves . jun . 227 ;
(g) Wyndham v . Earl of Egre see Earl of Buckinghamshire v. Ho
mont, Amb. 753 ; Trevor v. Trevor, 2 bart, 3 Sw. 200.
M. & K. 675. (a) Wigsell v. Wigsell, 2 S. & S.
(h) Astley v. Milles, 1 Sim. 298. 364 ; Horton v . Smith, 4 K. & J. 624.
(i) St. Paul v . Dudley, 15 Ves. (b) Earl of Buckinghamshire v.
173, per Lord Eldon ; Jones v. Mor Hobart, 3 Sw. 186 ; Kirkham v . Smith,
gan, 1 B. C. C. 206 ; Earl of Bucking 1 Ves. 258.
983
*733 MERGER. [CH. XXVII . S. 4.
SECTION V.
(a) Colt v. Colt, 1 Ch. Rep. 254 ; husband himself, and trusts originat
Bottomley v. Lord Fairfax, Pr. Ch . ing from a stranger, has been over
336 ; Attorney-General v. Scott, Cas. ruled by subsequent cases ; see Cur
t. Talb. 138 ; Chaplin v. Chaplin, 3 tis v. Curtis , 2 B. C. C. 630 ; D'Arcy
P. W. 229 ; Shepherd v. Shepherd, Id. v. Blake , 2 Sch. & Lef. 391 ; Burgess
234, note (D) ; Lady Radnor v. Roth v. Wheate, 1 Eden, 197.
erham, Pr. Ch. 65, per Lord Somers ; (b) Dixon v. Saville, 1 B. C. C. 326 ;
Godwin v. Winsmore , 2 Atk. 525. Reynolds v. Messing, cited 1 Atk. 604 ;
The distinction taken by Sir Jos. Casborne v. Scarfe, 2 J. & W. 194.
Jekyll in Banks v. Sutton, 2 P. W. (c) 3 & 4 W. 4, c. 105.
700, between trusts created by the
(b) Roberts v. Dixwell, 1 Atk . 609. But see contra, Moore v. Webster, 3
(c) Hearle v. Greenbank, 3 Atk. L. R. Eq . 267.
715, 716. [ (e) Cooper v . Macdonald, 7 Ch.
(d) Morgan v. Morgan, 5 Mad. D. 288. ]
408 ; Follett v . Tyrer, 14 Sim. 125 ; (f) Morgan v. Morgan, 5 Mad.
Appleton v. Rowley, 8 L. R. Eq. 139 ; 411 .
[Cooper v. Macdonald, 7 Ch. D. 288. ] (g) 2 P. W. 316.
988
CH. XXVII. S. 5. ] DOWER AND CURTESY OF A TRUST . *736
trustee for herself, and that the husband could not be a trus
tee for the wife, they both being one person, and , that conse
quently, as there was no trustee, the husband was entitled to
the estate beneficially. But the Court held that the husband
was a trustee for the wife, and observed, " though the hus
band might be tenant by the curtesy (viz . , of the legal
estate ) , yet he should be but a trustee for the heirs of the
wife ." The remark certainly implies that on the death of
the wife the husband would not be tenant by the curtesy of
the equitable estate, but that question had not been adverted
to at the bar, and apparently, from the context, was not
under the consideration of the Court. Even assuming the
remark to have been made advisedly, the view of the Court
may have been that the curtesy of the husband was excluded
on the ground now overruled, viz ., that the trust being not
simply for the wife and her heirs but during the coverture
for the separate use of the wife, and after her death for her
heirs, there was not a sufficient seisin as regarded the hus
band for the curtesy to attach upon (a) .
[ 9. Effect of Married Women's Property Act, 1882. - Under
the Married Women's Property Act, 1882, a married woman
is enabled to acquire, hold, and dispose of property as her
separate estate as if she were a feme sole, without the inter
vention of any trustee, and the question has been suggested
whether a husband can become entitled to curtesy out of
property which the wife has acquired as separate estate under
the Act. It is conceived that, in the event of the wife not
otherwise disposing of the property, he will be entitled to his
curtesy in the same manner as if the property had inde
pendently of the Act been settled for the separate use of the
wife (b).]
10. Distinction between dower and curtesy . - It must be
acknowledged, that as dower and curtesy stand exactly on
the same footing upon principle, either the rejection of dower,
or the admission of curtesy, was an anomaly. Some high
SECTION VI .
De G. M. & G. 687 ; Clarke v. Frank (i) This section in the third and
lin, 4 K. & J. 266. fourth editions was added to and
(h) Smith v. Spencer, 2 Jur. N. S. much improved by the author's friend,
778. the late Mr. F. O. Haynes.
Courts cannot interfere unless they are such as would have jurisdiction of the
trust assets ; Wheeler v . Bowen, 20 Pick. 563 ; Parsons v. Parsons, 9 N. H.
309 ; Allen v . Allen , 6 Ired . Eq . 293. A feme covert cannot claim a settlement
after giving her assent to a disposition of the property ; Smith v . Atwood, 14
Ga. 402 ; Wright v. Arnold, 14 B. Mon. 638. Where there are special reasons
why the husband should not reduce personalty to possession, the courts will
interfere, regardless of any technical objections to so doing ; Haviland v.
Myers , 6 Johns. Ch. 178 ; Rees v. Waters, 9 Watts, 90 ; Renwick v . Renwick,
10 Paige, 421 ; Chambers v . Perry, 17 Ala. 726. It is not necessary that the
property should be within the jurisdiction of the court ; Guild v. Guild, 16
Ala. 122. Such a settlement may be made for the wife, not only as against
the husband, but also as against his creditors or any one claiming by, through
or under him in any way ; Gassett v. Grout , 4 Met. 486 ; Andrews v. Jones, 10
Ala. 401 ; Hord v. Hord, 5 B. Mon. 81 ; Phillips v. Hassel, 10 Humph. 197 ;
Kenny v. Udall, 5 Johns . Ch . 464 ; Athey v. Knotts, 6 B. Mon. 24 ; Heath v.
Heath, Hill, Ch. 100. A settlement cannot be had in an estate in reversion
or remainder, until such time as they might be reduced to possession ; Good
win v. Moore, 4 Humph. 221 ; Reese v. Holmes, 5 Rich . Eq . 531 ; Sale v.
Saunders, 24 Miss. 24 ; but see Jackson v. Sublett, 10 B. Mon. 469 ; Weeks v.
Weeks, 5 Ired . Eq. 111 ; the amount involved is not material ; Roberts v.
Collett, 6 Sm. & Gif. 138. If a settlement has been made, courts will not com
pel another ; Martin v . Martin, 1 Comst. 473. The amount which will be
settled upon the wife depends upon circumstances ; Napier v. Howard, 3
Kelley, 205 ; Barron v. Barron, 24 Vt. 375 ; McVey v. Boggs, 3 Md . Ch . 94.
A settlement must be for wife and children ; Andrews v . Jones, 10 Ala. 401 ;
Udall v. Kenney, 3 Cow. 609 ; Howard v . Moffatt, 2 Johns. Ch . 206. Children
cannot ask it ; Martin v. Sherman, 2 Sandf. Ch. 341 ; but see Hill v. Hill, 3
Strob. Eq. 94 ; Mumford v. Murray, 1 Paige, 621.
Reduction to possession. — The husband must have done some act to reduce
the property into his possession ; Dunn v . Sargent, 101 Mass . 336 ; Hayward v.
Hayward, 20 Pick. 517 ; Rice v. Thompson, 14 B. Mon. 379 ; Searing v. Searing,
9 Paige, 283 ; Edwards v . Sheridan, 24 Conn. 165 ; Ross v . Wharton, 10 Yerg.
190 ; as if he uses the money for himself ; Ellis v . Baldwin, 1 Watts & S. 253 ;
or takes a legacy as his own ; Pierce v. Thompson , 17 Pick . 391 ; or sells the
property ; Dunn v. Sargent, 101 Mass. 336 ; Wardlaw v. Gray, 2 Hill, Eq.
644. If the property has not been actually received, it is not in possession ;
Smith v. Atwood, 14 Ga. 402 ; George v. Goldsby, 23 Ala. 333 ; Ryan v. Spruill,
4 Jones, Eq. 27. The bringing of a suit or even the obtaining of a judgment
is not sufficient for reducing the property to possession ; Probate Court r .
Niles, 32 Vt. 775 ; Pike v. Collins, 33 Me . 43 ; Knight v. Brawner, 14 Md . 1 ;
Mason v. McNeill , 23 Ala. 201 ; Hall v. McLain, 11 Humph. 425 ; there must
have been an execution or a transfer of the property ; Alexander v. Crittenden,
4 Allen, 342 ; a receipt for property is not in itself sufficient ; Hake v. Fink,
9 Watts, 336 ; McDowell v. Potter, 8 Barr, 191 ; the holding of the paper
securities is insufficient ; Hall v. Young, 37 N. H. 134 ; Barber v . Slade, 30 Vt.
191 ; Pickett v. Everett, 11 Mo. 568. The intention of the husband is material,
and certain acts may or may not reduce the property to possession according
to his intention ; Gochenaur's Est. 23 Pa. St. 460 ; McDowell v. Potter, 8 Barr,
191 ; Gray's Est. 1 Barr, 327. If the property has been actually reduced to
993
*739 ESTATE OF A FEME [CH. XXVII . S. 6.
*
[ * 739 ] regards cases not affected by the Married Women's
Property Act, 1882, and (B), the modifications intro
duced by that Act.
(A. ) As to cases not affected by the Married Women's
Property Act.
The cases to be considered under this head will be confined
to those in which property accrued before the 1st January,
1883 , to women who were married before that date . ]
1. Pure personal estate not settled to separate use. - As
respects pure personal estate (by which expression is meant
personalty exclusive of chattels real, such as chattels personal,
legacies, and other choses en action) , not settled to the wife's
separate use, the husband's power over the equitable estate is
regulated by his power over the legal estate . A personal
chattel, as furniture , held in trust for the wife , belongs in
action of the wife, and he receives it, it was discovered that the sale had
but does not pay it over to either taken place under circumstances which
husband or wife, his receipt neverthe it was contended rendered it voidable,
less operates as a reduction into pos and on the question as to who was
session by the husband, Huntley v. entitled to take proceedings to set
Griffith, F. Moore, 452, Goldsborough, the sale aside, it was held that the
2d ed. p . 159, pl. 91 ; and this will right to do so was in the husband's
also be the case, where the chose en representatives and did not survive to
action is the distributive share of the the wife. ]
wife in the estate of an intestate of (c) [ Wells v. Malbon, 31 Beav . 48 ; ]
which she is the administratrix , Re Re Insole, 35 Beav. 92 ; Prole v.
Barber, 11 Ch . D. 442. If the wife Soady, 3 L. R. Ch . App . 220 ; Johnson
with the assent of her husband re v. Lander, 7 L. R. Eq . 228 ; Heath v.
ceives a chose en action, it operates as Lewis, 4 Giff. 665 ; Swift v. Wenman,
a reduction into possession by him, 10 L. R. Eq. 15 ; and see Fussell v.
Rogers v. Bolton, 8 L. R. Ir. 69 ; but Dowding, 14 L. R. Eq. 421 ; 27 Ch. D.
the payment to the wife without the 237 ; Jessop v. Blake, 3 Giff. 639 ;
husband's assent will not prevent the Fitzgerald v. Chapman, 1 Ch. D. 563 .
husband, if he survive her, from suing [(d) Re Coward and Adam's Pur
for the chose en action as her legal per chase, 20 L. R. Eq. 179 ; Nicholson v.
sonal representative , S. C.] Drury Buildings Estate Company, 7
(b) Purdew v. Jackson, 1 Russ. 1 ; Ch . D. 48 ; Re Emery's Trusts , 50 L.
Honnor v. Morton, 3 Russ. 65. [In T. N. S. 197 ; 32 W. R. 357. ]
Widgery v. Tepper, 5 Ch . D. 516, af (e) Stiffe v. Everitt, 1 M. & Cr. 37 ;
firmed 7 Ch . D. 423 , a husband sold Harley v. Harley, 10 Hare, 325.
his wife's share as one of the next of (f) Ellison v. Elwin, 13 Sim. 309 ;
kin of an intestate in certain chattels Ashby v. Ashby, 1 Coll. 553 ; Baldwin
and received the purchase money for v. Baldwin, 5 De G. & Sm. 319 ; and
her share. After the husband's death, see Hamilton v. Mills, 29 Beav. 193.
which occurred in the wife's lifetime,
996
CH. XXVII. S. 6.] COVERT CESTUI QUE TRUST. *741
appears to have had its origin (g) in cases where the trustee,
declining to pay, transfer, &c ., the wife's possessory interest
to the husband, and the husband filing a bill against the
trustee to compel payment, transfer, &c ., the Court held
that those who seek equity must do equity ; and
declined to assist the husband in obtaining the [ *741 ]
wife's equitable interest, except upon the terms of
some portion of it being settled for the benefit of the wife
and her issue .
[ But where property is given to husband and wife, inas
much as by the unity of the persons in law they take by
entireties, and the husband is entitled in his own right to the
entirety during his life, the wife will have no equity to a
settlement out of any part of the property (a) . ]
3. Feme may assert her equity to a settlement actively.
Whatever may have been the source of this equity, it is
undoubtedly one which the wife has a right, according to the
now established practice of the Court, to assert actively,
either by an action (b) , or, in the case of an already existing
suit, by petition ( c) , at any time before the husband has finally
reduced the equitable interest into possession ; and possession
has dismissed the wife's bill with costs, and left the husband
at liberty to follow up his marital rights (a ) .
[6. Part of the fund retained in Court with liberty to apply.
-Where a married woman, upon being examined , expressed
a wish that part of the fund to which she was entitled should
be retained in Court, and the income paid to her, with liberty
for her to apply for payment of the capital at a future period,
if she desired it, the Court made the order, settling the fund
upon her for life, with remainder to her children , with liberty
for her to apply to the Judge at chambers for a transfer of
all or any of the capital to her, by way of revocation of the
settlement (b) . ]
7. How far life interest of wife is subject to equity to a set
tlement. —Upon principle it would seem that the wife's
equity to a settlement ought in all cases to be the same,
whether it be claimed against the husband or his trustee in
bankruptcy or his assignee for value . There is , however, an
exception where the subject matter against which the equity
is asserted is a life interest of the wife. In this case, so long
as the husband maintains the wife, he is entitled to receive
the income of her life estate, and there can be no equity to
a settlement (c) . If, however, he deserts her, or is divorced
by reason of his misconduct, the Court will not allow him to
receive the income without securing at least a portion of it
for the maintenance of the wife (d) ; and pari ratione where
the husband becomes bankrupt and the wife is left without
the means of subsistence , the same equity will be enforced
against the trustee in bankruptcy (e) . But where the hus
band assigns the income for value while duly discharging
(f) Tidd v. Lister, 10 Hare, 140 ; (c) Creed v. Perry, 14 Sim. 592 ;
3 De G. M. & G. 857 ; Re Duffy's Bean ". Sykes, Ib . 593 ; Lachton v.
Trust, 28 Beav. 386 ; [ and see Taun Adams, Ib. 594 ; Hall v. Hugonin , Ib.
ton v. Morris , 11 Ch . D. 779.] 595 ; Bishop v. Colebrook, 16 Sim .
(a) Osborn v. Morgan, 9 Hare, 39 ; Wilson v. Oldham, 5th March,
432. 1841 , MS .; see the opinion of the late
(b) 20 & 21 Vict. c. 57 ; see p. 23, Mr. Jacob in 3d . edit. p . 371.
supra.
1002
CH. XXVII. S. 6. ] COVERT CESTUI QUE TRUST. *746
(b) Re Carr's Trust, 12 L. R. Eq. W. 201, per Lord King. But this
609. was before the case of Purdew v.
(c) Lord Carteret v. Paschal , 3 P. Jackson, 1 Russ . 1.
1005
*748 ESTATE OF A FEME [CH. XXVII . S. 6.
the latt er under the Fines and Recoveries Act, dispose of the
equitable and of the legal interest ; and can bar an equitable
entail as they might a legal entail, by deed inrolled in Chan
cery ; [ and can dispose of an equitable reversionary interest
in free hold property, which has been purchased by trustees
in breach of trust and is still personal estate in equity (g) .]
18. But according to Lord Cottenham's decision in Sturgis
r. Champneys (h), the acts of the husband alone cannot affect
the wife's equity to a settlement, where the interest of the
wife can only be recovered through the medium of a Court
of equity (i).
* The propriety of the decision in this case was [ *749 ]
questioned by the late Lord Westbury (a) . But after
so long a lapse of time it is not likely that the principle of it
will be shaken. It has accordingly been held that as regards
an equitable freehold, that is, an estate to which a feme covert
is entitled in equity for her own life, she may proceed actively,
and institute a suit against the trustee of her bankrupt hus
band for a settlement of it upon herself ( b ) . But she has no
such equity against a purchaser, for value, from her husband,
who at the time was supporting her (c) . In short, the princi
ples which govern the wife's equitable interest for life in
realty, are the same as those which regulate the like interest
of the wife in personalty (d).
19. Equitable estates in fee simple or fee tail . - As to the
case of an equitable fee simple or fee tail to which a feme
covert is entitled, a distinction must be borne in mind between
[ 9) Re Durrant and Stoner, 18 the legal estate for his own life, ex
Ch. D. 106. ] cept by a conveyance which carried
(h) 5 M. & Cr. 97. the fee tortiously, as by a feoffment ;
( ) At law a husband during the Co. Lit. 30, a.
Coverture and before issue born has (a) See Gleaves v. Paine, 1 De G.
the estate for the joint lives of him J. & S. 87.
self and his wife, but in her right (b) Barnes v . Robinson, 1 New
only ; and even after issue born he Rep. 257 ; Sturgis v. Champneys, 5
has
no estate in his own right, for M. & Cr. 97.
curtesy does not commence until the (c) Tidd v . Lister, 10 Hare, 140 ;
death of the wife, Jones v. Davies , 8 3 De G. M. & G. 857 ; Stanton v. Hall,
Jur. N. S. 592. Until the late Act, 8 2 R. & M. 175.
& 9 Vict. c. 106, s . 6, a husband could (d) See ante, 744.
not during the coverture have passed
1007
*750 ESTATE OF A FEME [CH. XXVII. S. 6.
the husband's powers over a wife's personal, and over her real
estate. The husband can get possession of the absolute
interest of the former and make away with it ; and therefore
the Court settles the corpus or a competent part of it on the
wife and her children ; but as to realty, the husband has no
power over the corpus, but can dispose only of the interest
during the joint lives, or if there be issue, for his own life ;
and as this limited interest is all that the husband or those
claiming under him can deal with, and the husband has the
curtesy in his own right, it is only the interest during the
joint lives that requires to be settled. As to any ulterior
interest, the Court has properly nothing to do with it. If the
wife be tenant in fee, ――――― why should the heir be disinherited
in favour of the children ? and if the wife be tenant in tail ,
why should the issue in tail and remainderman be defeated ?
"In the case of the wife's real estate," observed V. C. Wood,
" she wants no protection out of the corpus of that estate,
for she cannot be deprived of it without her own concurrence,
which the law requires to be given in such a manner as will
protect her from her husband " (e). Where, therefore, the
wife is tenant in fee or in tail in equity, the claim
*
[* 750 ] of the wife stands on the same footing as where she
is tenant for life in equity, and has been so dealt with
accordingly (a) .
[ 20. Real estate held upon trust for sale. Where real
estate is held upon trust for sale and to pay the proceeds to
a married woman , the husband can , after the land has actually
[ (b) The contrary opinion is inti tions of the Act, the property to
mated in Wolstenholme & Turner's which administration was granted
Conveyancing Acts, 3d ed. p. 8, and went on her decease intestate " as the
the case of In the Goods of Worman, same would have gone if her husband
1 Sw. & Tr. 513, is cited in support had then been dead," the case is no
of it, but that was the case of an authority in construing the Married
application for administration to the Women's Property Act, 1882 , which
estate of a married woman who had contains no similar words.]
obtained a protection order under 20 [(c) The section is ungrammatical
& 21 Vict. c. 85, s. 21 , by reason of but this is apparently what is in
the husband's desertion, and the grant tended. The words " have or be sub
of administration was expressly lim ject to " seem to have been omitted
ited to " such property as the deceased from the last line. ]
acquired since her husband's deser [ (a ) Re Harris' Settled Estates,
tion," and inasmuch as, by the joint 28 Ch. D. 171.]
operation of the 21st and 25th sec
1012
CH. XXVII . S. 6.] PROPERTY ACT, 1882. *753
1 Separate estate. - Property may be settled upon a feme covert free from
the control or interference of the husband ; Fellows v. Tann, 9 Ala. 1003 ;
Robert v. West , 15 Ga . 123 ; Beaufort v. Collier, 6 Humph. 487 ; and it is not
even necessary that there should be an express trustee, the husband, if neces
sary, acting as a trustee ; Wilkinson v. Cheatham, 45 Ala. 337 ; Richardson v.
Stodder, 100 Mass. 528 ; Wade v. Fisher, 9 Rich. Eq. 362 ; Shirley v. Shirley,
9 Paige, 364 ; Hamilton v. Bishop, 8 Yerg. 33 ; Long v. White, 5 J. J. Marsh,
226 ; Barron v. Barron, 24 Vt . 375. The property must be clearly and un
equivocally given to the wife for her sole use, to bar the husband from his
1013
*754 WIFE'S SEPARATE ESTATE. [CH. XXVII . S. 6.
rights ; Hale v. Stone, 14 Ala. 803 ; Ashcraft v. Little, 4 Ired. Eq. 236 ; Rudi
sell v. Watson, 2 Dev . Eq. 430 ; Boal v. Morgner, 46 Mo. 48 ; Somers v. Craig,
9 Humph. 467 ; Nixon v . Rose, 12 Gratt. 425 ; but no exact form of words is
required ; Nightingale v . Hidden , 7 R. I. 115. The following expressions are
sufficient to bar the husband ; to the wife " exclusively " ; Gould v . Hill , 18
Ala. 84 ; "to be hers and hers only " ; Ozley v. Ikelheimer, 26 Ala. 332 ;
Ellis v. Woods, 9 Rich. Eq. 19 ; "for her sole and separate use " ; Petty v.
Boothe, 19 Ala. 633 ; " to her own use and benefit independent of any
other person "; Williams v. Maull, 20 Ala. 721 ; Ashcraft v. Little, 4 Ired.
Eq. 236 ; " solely for her own use " ; Jarvis v. Prentice, 19 Conn. 273 ; Fisher
v. Filbert, 6 Barr, 61 ; Goodrum v. Goodrum, 8 Ired . Eq . 313 ; " for her
own and her family's use during her natural life " ; Heck v . Clippenger,
5 Barr, 385 ; " for her support " ; Markley v. Singletary, 11 Rich. Eq . 393 ;
" for the use and benefit of the wife and her heirs " ; Good v. Harris, 2 Ired.
Eq. 630 ; "to be at her own disposal in true faith to her and her heirs forever " ;
Bridges v. Wood, 4 Dana , 610 ; " to her during her life, afterwards to her chil
dren "; Hamilton v. Bishop, 8 Yerg. 33 ; Tyson's App. 10 Barr, 221. Others
have been held not sufficiently clear and definite ; " not to be liable for hus
band's debts " ; Gillespie v. Burleson, 28 Ala. 551 ; but see Young v. Young,
3 Jones, Eq. 216 ; " to her use " ; Tennant v. Stoney, 1 Rich. Eq. 222 ; " for the
joint use of husband and wife " ; Geyer v. Bank, 21 Ala. 414 ; " to her during
her life , after her death to her issue " ; Bryan v. Duncan, 11 Ga. 67 ; " the
gift not to extend to any other person " ; Ashcraft v. Little, 4 Ired. Eq . 236 ;
66
to her heirs and assigns, for her or their own sole use " ; Houston v. Embry,
1 Sneed, 480. A mere conveyance to wife and her heirs ; Shirley v. Shirley,
9 Paige, 364 ; Fitch v. Ayer, 2 Conn . 143 ; nor a gift to a trustee ; Pollard v.
Merrill, 15 Ala. 170 ; Mayberry v. Neely, 5 Humph. 339 ; in general, the
words must clearly shut out the rights of the husband ; Good v. Harris , 2
Ired. Eq. 630 ; Jasper v. Howard, 12 Ala . 652. If property is conveyed to an
unmarried woman, to her sole and separate use, the effect of the conveyance is
no different from a general conveyance, until she marries, and she holds it free
from any control of her husband ; Blackstone Bank v. Davis, 21 Pick. 42 ;
Hamersley v. Smith, 4 Whart. 126 ; Hallett v. Thompson, 5 Paige, 583 ;
Snyder's App. 92 Pa. St. 504 ; Ogden's App . 70 Pa . St. 501 ; Wallace v. Coston,
9 Wall. 137 ; Talbot v. Calvert, 12 Harris, 328. Property conveyed properly
to the sole and separate use of a woman, is absolute, and she can deal with it
as she chooses ; Parker v. Converse, 5 Gray, 336 ; Williams's App . 83 Pa. St.
377. And such a conveyance bars the rights of all future husbands, as well
as those of the present or first one ; Roberts v. West, 15 Ga . 123 ; but see
Waters v. Tazeweil, 9 Md . 291 ; Shirley v . Shirley, 9 Paige , 364 ; as to legal
proceedings relating to separate estate, see Furguson v. Smith, 2 Johns . Ch .
139 ; Wilson v. Wilson, 6 Ired . Eq . 236 ; Sherman v. Burnham, 6 Barb. 403 ;
Grant v. Van Schoonhoven , 9 Paige, 255. The laws relating to separate prop
erty vary in the different states, and the different statutory provisions relating
thereto may lead to entirely different results.
1014
CH. XXVII. S. 6.] WIFE'S SEPARATE ESTATE. *754
[ (d) Ex parte Ray, Mad. 207, per [ (b) Lady Cowper's case, cited in
Sir T. Plumer ; Wills v. Sayers, 4 Graham v. Londonderry, 3 Atk. 393 ;
Mad. 409, per eundem ; Massey v. Lucas v. Lucas, 1 Atk. 270 ; Walter
Parker, 2 M. & K. 181 , per Sir C. v. Hodge, 2 Sw . 92 ; Ex parte White
Pepys ; Kensington v. Dollond, 2 M. head, 14 Q. B. D. 419. ]
& K. 188, per Sir J. Leach ; Moore v. [(c) Ashworth v. Outram, 5 Ch .
Morris, 4 Drew. 37, per V. C. Kinder D. 923 ; Ex parte Whitehead, 14 Q.
sley ; Fitzgibbon v. Pike, 6 L. R. Ir. B. D. 419 ; and see Slanning v. Style,
487. ] 3 P. W. 334 ; Calmady v. Calmady,
(a ) Darley v. Darley, 3 Atk. 399, cited in Slanning v. Style, Ib . 338. ]
per Lord Hardwicke ; Stanton v. [(d) Re Whittaker, 21 Ch. D. 657. ]
Hall, 2 R. & M. 180, per Lord Broug [ (e) In the Goods of Tharp, 3 P.
ham ; [and see Re Peacock's Trusts , D. 76.]
10 Ch. D. 490. ] [ (ƒ) 45 & 46 Vict. c. 75, s . 1.]
1016
CH. XXVII. S. 6.] WIFE'S SEPARATE ESTATE. *756
" her livelihood ” (g) , or “ that she may receive and enjoy the
profits " (h) , or " to be at her disposal " (i) , or " to be by her
laid out in what she shall think fit " (j) , or " for her own
use, independent of her husband " (k) , or " not subject to his
control " (1) , or " for her own use and benefit, independent
of any other person " (m) , or " to receive the rents from the
tenants while she lives, whether married or single," with a
direction that no sale or mortgage should be made during
her life (n ) for such expressions as these are considered
inconsistent with the notion of any interference on the part
of the husband. So , if the gift be accompanied with such
expressions as " her receipt to be a sufficient discharge " (0 ) ,
or " to be delivered to her on demand " ( p) ; for in these
cases the check put upon the husband's legal right to receive
could only have been with the intention of giving the
[ * 757 ] wife a particular benefit. So , if the gift be * to the
husband should he be living with his wife, but if
separate then half to the husband and the other half to the
wife " absolutely," for the context shows that by absolutely
is meant for the separate use (a) .
*
[ Where trustees have a discretion to " pay, apply, and dis
pose of" the income of a trust fund for the maintenance and
support of a married woman, they may pay the income to
her for her separate use (b) . ]
5. What words not sufficient. -- But if the trust be merely
"to pay to her," or " to her and her assigns " (c) , or the gift
(g) Darley v. Darley, 3 Atk. 399, (k) Wagstaff v. Smith, 9 Ves. 520.
per Lord Hardwicke ; and see Cape (1) Bain v . Lescher, 11 Sim. 397.
v. Cape, 2 Y. & C. 543 ; Ex parte Ray, (m) Margetts v. Barringer, 7 Sim.
1 Mad. 208 ; but see Lee v. Prieaux, 482.
3 B. C. C. 383 ; Wardle v. Claxton, 9 (n) Goulder v. Camm, 6 Jur. N. S.
Sim. 524, id qu. 113 ; 1 De G. F. & J. 146 .
(h) Tyrrell v. Hope, 2 Atk. 558. (0) Lee v. Prieaux, 3 B. C. C. 381 ;
But this was in marriage articles, Woodman v. Horsley, cited Ib. 383 ;
and under special circumstances , and Cooper v. Wells, 11 Jur. N. S. 923 ;
must not be taken to establish any Re Molyneux' Estate, 6 I. R. Eq .
general rule. 411 ; and see Stanton v. Hall, 2 R. &
(i) Prichard v. Ames, T. & R. 222 ; M. 180.
Kirk . Paulin, 7 Vin. 96. Secus (p) Dixon v. Olmius, 2 Cox, 414 .
probably if these words had occurred (a ) Shewell v. Dwarris, Johns . 172.
in a gift to a feme sole. [(b) Austin v. Austin , 4 Ch . D. 233. ]
(j) Atcherley v. Vernon, 10 Mod. (c) Dakins v. Berisford , 1 Ch . Ca.
531. 194 ; Lumb v . Milnes, 5 Ves. 517.
1018
CH. XXVII. S. 6.] WIFE'S SEPARATE ESTATE . *758
be " to her use " (d) , or " her own use " (e ) , or " her absolute
use " (f), or " in trust only for her, her executors, adminis
trators, and assigns " (g), or, "to her, her heirs, and assigns,
for her or their own sole and absolute use " (h), or " to pay
into her own proper hands for her own use " (i) , or " to pay
to her to be applied for the maintenance of herself and such
child or children as the testator might happen to leave at his
death " (j) , there is no such unequivocal evidence of an in
tention to exclude the husband.
6. Husband made a trustee for the wife. ――― - Where property
was vested in the husband jointly with another, as general
trustees of the will, upon trust (inter alia) , for the wife , it
was held not to be a gift to her separate use (k) . Had the
husband alone been appointed a trustee for the wife the
decision might have been different (7) .
[7. Resumption of cohabitation . - On the resumption of
cohabitation in cases where there has been a judicial separa
tion or a protection order, the property to which the wife is
entitled when such cohabitation takes place belongs to her
for her separate use (m) . ]
8. Effect after marriage of the trust for separate use. - If a
feme sole marry without having disposed of the property
settled to her separate use, the limitation to the separate use
will on the marriage take effect. This doctrine is
open to much observation * upon principle ( a) , but [ * 758 ]
Lord Cottenham, in the cases of Tullett v. Armstrong,
(d) Jacobs v. Amyatt, 1 Mad. 376, (i) Tyler v. Lake , 2 R. & M. 183 ;
n.; Wills v. Sayers, 4 Mad . 411 ; Anon. Kensington v. Dolland, 2 M. & K. 184 ;
case, cited 7 Vin. 96. Blacklow v. Laws, 2 Hare, 48 ; but see
(e) Johnes v. Lockhart, in note to Hartley v. Hurle, 5 Ves . 545, contra.
Lee v. Prieaux, 3 B. C. C. 383, ed. by (j) Wardle v. Claxton, 9 Sim. 524.
Belt (this case is erroneously cited as (k) Exparte Beilby, 1 Gl. & J. 167 ;
an authority to the contrary in Lumb and see Kensington v. Dollond, 2 M.
v. Milnes, 5 Ves . 520, and Ex parte & K. 184.
Ray, 1 Mad. 207) ; Wills v . Sayers, (1) Ex parte Beilby, ubi supra ; and
4 Mad. 409 ; Roberts v. Spicer, 5 Mad. see Darley v. Darley, 3 Atk. 399.
491 ; Beales v. Spencer, 2 Y. & C. C. C. [ (m ) 20 & 21 Vict. c. 85, s . 25 ; 21
651 ; Darcy v. Croft, 9 Ir. Ch . Rep. 19. & 22 Vict. c. 108, s. 8 ; 41 Vict. c. 19,
(f) Rycroft v. Christy, 3 Beav. 238. s. 4 ; Re Emery's Trusts, 50 L. T. N.
(g) Spirett v. Willows, 3 De G. J. S. 197 ; 32 W. R. 357.]
& S. 293. (a) Some observations upon this
(h) Lewis v. Mathews, 2 L. R. Eq. subject will be found in the 3d edit.
177. p. 124.
1019
*758 WIFE'S SEPARATE ESTATE. [CH. XXVII . S. 6.
1 And she cannot be compelled to give security for costs where she sues as
sole plaintiff, even though she may have no separate estate, and there is noth
ing upon which, if she fails , available execution can issue. Jacob v. Isaac,
30 Ch. Div. 418 ; but see Re Robinson, 27 Ch. Div. 160.
1021
*760 WIFE'S SEPARATE ESTATE. [ CH. XXVII. S. 6.
action is, was entered into before or should permit her to produce ; Cow
after the Act : Gloucestershire Bank dery v. Way, V. C. K. B. 2d Nov.
ing Company v. Phillipps, 12 Q. B. D. 1843. And see Callow v. Howle, 1 De
533. ] G. & Sm. 531 ; Beeching v. Morphew,
(f) Copperthwaite v. Tuite, 13 Ir. 8 Hare, 129 ; Clive v. Carew, 1 J. &
Eq. Rep. 68 ; [ Rules of Supreme H. 207.
Court, Order 11.] (i) Wilton v. Hill, 25 L. J. N. S.
[ (g) 45 & 46 Vict. c. 75, s . 1 , (2) ; Ch. 156.
Re Outwin's Trusts, 48 L. T. N. S. (a) Picard v. Hine, 5 L. R. Ch.
410.] App. 274.
(h) Allen v. Papworth, 1 Ves. 163 ; (b) Davidson v. Gardner, Sugd.
Clerk v. Miller, 2 Atk. 379 ; Bailey v . Vend. & Purch. 891 , 11th edit.; Stead
Jackson, C. P. Cooper's Rep. 1837-8, v. Nelson, 2 Beav. 248 ; and see Har
495. Husband and wife put in a joint ris v . Mott, 14 Beav. 169 ; Vansittart
answer, and the wife admitted certain v. Vansittart, 4 K. & J. 70 ; Milnes v.
indentures to be in her possession and Busk, 2 Ves . jun . 498.
claimed the estates to which the in (c) Farrington v. Parker, 4 L. R. '
dentures related to her separate use Eq. 116 .
for her life. The plaintiff moved for (d) Woodward v. Woodward, 3 De
production, but it was argued that the G. J. & S. 672.
answer was the husband's and could (e ) Allen v. Walker, 5 L. R. Ex.
not be read as an admission by the 187.
wife. However, the Court said though (f) Pride v . Budd, 7 L. R. Ch . App .
there was a logical difficulty, there 64.
was none in substance : that if the (g) Gaston v. Frankum, 2 De G. &
wife claimed the benefit of the separate Sm. 561 ; S. C. on appeal, 16 Jur. 507.
use she must take it with its disad (h) Re Leeds Banking Company, 3
vantages ; and ordered the production L. R. Eq. 781 ; and see Butler v.
by the wife, and that the husband Cumpston, 7 L. R. Eq. 16.
1022
CH. XXVII . S. 6. ] WIFE'S SEPARATE ESTATE. *761
(i) Peacock v. Monk, 2 Ves. 193, (k) Ottway v. Wing, 12 Sim. 90.
per Lord Hardwicke. (1) Keogh v. Cathcart, 11 Ir. Eq.
(j) Graham v. Fitch, 2 De G. & Rep. 280 ; and see cases cited Ib.
Sm. 246 ; Taylor v. Taylor, 12 Beav. [ (m ) 45 & 46 Vict. c . 75, s. 1 (2 ) . ]
271 ; Home v. Patrick (No. 1), 30 [ (n ) Weldon v. Winslow, 13 Q. B.
Beav. 405, in which case M. R. ob D. 784 ; Weldon v. De Bathe, 14 Q.
served that if the feme had not ob B. D. 339. ]
tained or concurred in the order to [ (a ) Ib. ]
answer separately there might be a [ (b) Weldon v. Neal, 51 L. T. N.
difficulty. S. 289. ]
1023
* 761 WIFE'S SEPARATE ESTATE. [ CH. XXVII. S. 6.
1 Re Prynne, 53 L. T. N. S. 465.
1024
CH. XXVII. S. 6.] WIFE'S SEPARATE ESTATE. *762
[(g) Sect. 19 ; and see post, p. 787.] 82 ; and see Digby v . Irvine, 6 Ir. Eq.
[ (h) See Re Price, 28 Ch. D. 709 ; Rep. 149.
and see ante, p. 753. ] (d) See Bolton v. Williams, 2 Ves.
[ (i) Morrell v . Cowan, 6 Ch . D. jun. 150 ; Greatley v. Noble, 3 Mad .
166 ; and see now 45 & 46 Vict. c . 75, 94 ; Stuart v. Kirkwall, Ib. 389 ;
s. 1 (2) . ] Aguilar v. Aguilar, 5 Mad . 418 ; Field
(a) See Bolton v. Williams, 2 Ves. v. Sowle, 4 Russ . 114.
jun. 142 , 150, 156 ; Whistler v. New (e) See Owens v . Dickenson, Cr.
man, 4 Ves. 145. & Ph. 53 ; Dowling v. Maguire, Rep .
(b) See Greatley v. Noble, 3 Mad . t. Plunket, 19 ; Master v. Fuller, 4 B.
94 ; Stuart v. Kirkwall, Ib . 389 ; Agui C. C. 19 ; Stead v. Nelson, 2 Beav .
lar v. Aguilar, 5 Mad. 418 ; Field v. 245 ; Bailey v. Jackson , C. P. Coop
Sowle, 4 Russ. 114 ; Chester v. Platt, er's Rep. 1837-8, 495 ; Francis v. Wig
Sugd. Vend. & Purch. 207, 14th edit. zell, 1 Mad. 261 ; Crosby v Church,
(c) See Murray v. Barlee, 4 Sim. 3 Beav. 489 ; Tullett v. Armstrong, 4
Beav. 323.
1026
CH. XXVII. S. 6.] WIFE'S SEPARATE ESTATE. *764
(f) It may be observed that the have conceived that any distinction
late V. C. of England while express existed between a written and un
ing his opinion upon the hearing written obligation ; see 4 Sim. 94.
below, that the general engagements (9) Murray v. Barlee, 3 M. & K.
of the feme covert did not affect the 223.
separate estate, does not appear to
1027
*765 WIFE'S SEPARATE ESTATE. [CH. XXVII . S. 6.
(a) Jones v. Harris, 9 Ves. 486 ; F. & J. 513 ; and see Shattock v.
Aguilar v. Aguilar, 5 Mad. 414 ; and Shattock, 2 L. R. Eq . 182 ; 35 Beav.
see Bolton r. Williams, 4 B. C. C. 297 ; 489.
S. C. 2 Ves. jun. 138. (c) Wright v. Chard, 4 Drew. 673.
(b) Johnson v. Gallagher, 3 De G. (d) Ib. 4 Drew. 685.
1030
CH. XXVII . S. 6.] WIFE'S SEPARATE ESTATE . * 767
erence to, and upon the faith or credit of, the separate es
tate. It would be very inconvenient that a married woman
with a large separate property should not be able to employ
a solicitor or a surveyor, or a builder or tradesman, or hire
labourers or servants , and very unjust if she did that they
should have no remedy against such separate property " (a) .
[ 21. Where a married woman is living separate from her
husband, and monies are advanced by a stranger in providing
her with necessaries , such monies constitute a debt binding
her separate estate (b) . ]
22. Liability of estate of feme covert to make good her
breaches of trust. - The inquiry now under consideration in
volves the question how far a feme covert [could before the
Married Women's Property Act, 1882, ] commit a breach of
trust for which her separate estate would be made liable.
Where the breach of trust resulted in the loss of the very
fund in which the feme had an interest to her separate use,
the Court treated her acts as amounting to a disposition of
the separate interest which she had power to bind (c ) . So
if a feme covert who was executrix or trustee had wasted the
trust estate, the ordinary right of retainer might be exer
cised against her separate estate under the same instru
ment (d) . And the separate estate of a married woman under
a settlement was held liable to make good the loss occasioned
by her wrongfully selling absolutely a valuable chattel in
which, under the same settlement, she had only a limited inter
est (e) . And the separate estate has been made to answer a
debt of the wife contracted before marriage (f) ; and by the
Married Women's Property Act, 1870 (g) , property belong
ing to a feme and settled by her to her separate use without
power of anticipation, was made liable to such a debt (h) .
(e) Hulme v. Tenant, 1 B. C. C. 20, and see as to the effect of the recent
21 ; and see Boughton v. James, 1 Açt ante, p . 766. ]
Coll. 26 ; Nantes v. Corrock, 9 Ves . [ (b) Pike v. Fitzgibbon, Martin v.
189. Fitzgibbon, 17 Ch. D. 454 ; Durrant v.
(f) See p . 779 and p. 803, note (c) . Ricketts, 8 Q. B. D. 177 ; 30 W. R.
[(a ) Pike v. Fitzgibbon, 17 Ch. D. 428 ; Gloucestershire Banking Com
451 ; reversing S. C. 14 Ch . D. 837 ; pany v. Phillipps, 12 Q. B. D. 533 ;
Flower v. Buller, 15 Ch. D. 665 ; and see Gallagher v. Nugent, 8 L. R.
Chapman v. Biggs, 11 Q. B. D. 27 ; Ir. 353. ]
1036
CH. XXVII. S. 6. ] WIFE'S SEPARATE ESTATE. * 772
11 Ir. Eq. Rep. 513. In the same Moore v. Moore, 1 Atk. 272 ; see
case the V. C. of England, when the Moore v. Earl of Scarborough, 2 Eq.
cause was before him, hesitated Ca. Ab. 156 ; Parker v. Brooke, 9
whether the general rule gave an Ves. 583 ; [ Dixon v. Dixon, 9 Ch. D.
account for a year or none at all ; 587.]
see Digby v. Howard, 4 Sim. 601. (c) Thrupp v. Harmon, 3 M. & K.
(a) Caton v. Rideout, 2 H. & Tw. 512 ; Corbally v. Grainger, 4 Ir. Ch.
41 ; see Dixon v. Dixon, 9 Ch. D. Rep. 173 .
587 ; Re Lulham, 53 L. J. N. S. Ch. (d) Foss v. Foss, 15 Ir. Ch. Rep.
928. 215.
(b) Ridout v. Lewis, 1 Atk. 269 ;
1044
CH. XXVII S. 6. ] WIFE'S SEPARATE ESTATE. * 778
such a case the husband's estate must account for the whole,
but will be entitled to an allowance for payments made for
the wife's benefit, and which ought properly to have fallen
on her separate estate (e).
43. In Howard v. Digby (f) , a woman's pin-money was
distinguished from ordinary separate use, and it was held as
to pin-money that the wife's representative (g) could make
no claim to any arrears. The ground upon which the House
proceeded was that pin-money was for the personal use and
ornament of the wife, and the husband had a right to see
the fund properly applied, and that if the husband himself
found the necessaries for which the pin-money was intended,
the wife or her representative could have no claim against
the husband's estate when the requirements for her personal
use and ornament had ceased (h ) . Lord St. Leonards has
justly questioned these principles (?) , and it remains
to be seen whether any distinction between pin- [ * 778 ]
money and separate use generally can be maintained.
44. Gift of corpus to husband not resumed. - As regards
the corpus of the separate estate no presumption arises in fa
vour of a husband who has received it . He is primâ facie a
trustee for his wife, and a gift from her to him will not be
inferred without clear evidence (a) . [ Thus, where a legacy
bequeathed to the separate use of a wife was paid by a bank
er's draft payable to her order, and she indorsed the draft
and handed it over to her husband, who paid it into his own
bank, and had the amount carried over to a deposit account
in his name, it was held that this was not sufficient to deprive
the wife of her right (b) . So where shares in a company,
which were appropriated to a married woman as part of her
share of a residue bequeathed to her for her separate use,
from the instrument itself, that the fee simple, and not the
mere life estate, was limited to the separate use (c) .
[The mere renunciation by an intended husband of his
marital rights in his wife's realty is not sufficient to clothe
her with a testamentary power, or to constitute a valid
declaration of trust of the fee (d) .
Under the recent Act ( e) , the whole interest in real es
tate given to a married woman belongs to her as her separate
estate , and can be disposed of by her accordingly (ƒ) .
49. Feme covert can bar an equitable entail. If a married
woman be equitable tenant in tail in possession of real estate,
which is settled to her separate use, she can under the pro
visions of the Fines and Recoveries Act bar the entail, with
the concurrence of her husband (g) , and the husband's
power of concurring will not be affected by his bank
ruptcy (h) ; and in cases falling within the recent Act the
concurrence of the husband is unnecessary (i) . ]
* 50 . Feme covert as protector. ---- If a legal estate [ * 781 ]
be limited to a married woman for her life for her
sole and separate use, without the interposition of a trustee ,
with remainder in tail, the wife is the sole protector of the
settlement, and the husband's consent in barring the entail
is not necessary (a) .
51. It still remains to treat of restraint of anticipation .
Clause restraining anticipation . The clause against the
feme's anticipation is of. comparatively modern growth . In
Hulme v. Tenant (b) it was held that a limitation to the
separate use simply did not prevent the feme from aliening.
In Pybus v. Smith (e) great pains had been taken in framing
the separate use, and the income was made payable as the
(i) Brown v. Bamford, 11 Sim. 127 . cellor in Brown v. Bamford had been
(a) Moore v. Moore, 1 Coll . 54 ; overruled, and cannot be considered
Harrop v. Howard, 3 Hare, 624 ; Har as law.
nett v. Macdougall, 8 Beav. 187. [(c) Heath v. Wickham , 5 L. R. Ir.
(b) 1 Ph. 620. The case of Medley 285 ; 3 L. R. Ir. 376. ]
v. Horton, 14 Sim. 222, was decided (d) Re Ellis's Trust, 17 L. R. Eq.
before the decision of the Vice-Chan 409 ; [Re Bown, 27 Ch. D. 411. ]
1052
CH. XXVII. S. 6. ] WIFE'S SEPARATE ESTATE. *784
(a) See The Queen v. Carnatic [(c) As the rents and profits here
Railway Company, 8 L. R. Q. B. 299. mentioned are not limited to those
(b) The amount coming to her as arising during the life of the married
next of kin appears to be without woman, it may be open to question
limit ; [so now decided Re Voss, 13 whether this provision does not bind
Ch. D. 504.] the corpus of the property, see Re
Voss, 13 Ch . D. 504. ]
1060
CH. XXVII . S. 6. ] PROPERTY ACTS . *790
1 Under this section a husband cannot maintain an action against his wife
for money lent to her or money paid for her before their marriage at her
request. Butler v. Butler, 14 Q. B. D. 831 .
1065
*794 JUDGMENTS AGAINST [CH. XXVII . S. 7.
SECTION VII.
[ (a) 46 & 47 Vict. c. 61 , s. 26. ] (c) Ib.; Sir E. Coke's case, Godb.
(b) Finch's Law, 471 . 290.
1066
CH. XXVII . S. 7. ] CESTUI QUE TRUST. *795
levy the debt from the present profits, as from the rents
payable by the tenants ( d) , and the emblements ( e) , that
is, the corn and other crops at the time growing on the
lands (ƒ) . If the sheriff, when he made his return , had
not levied the full amount of the debt, a new levari facias
might have issued, to be executed by the sheriff in like
manner (g) (1 ) .
* 2. Statute of Westminster. — In order to provide [ * 795 ]
for the creditor a more effectual remedy, the Statute
of Westminster (a) introduced the writ of elegit, and en
acted, that when the debt was recovered or knowledged, or
damages awarded , the suitor should at his choice (whence
the term elegit) have a writ of fieri facias ( b) , from the debt
or's lands and chattels, or that the sheriff should deliver to
him all the chattels of the debtor, except his oxen and beasts
of the plough, and one-half of his land, until the debt should
be levied upon a reasonable price or extent. It was by virtue
of this statute that judgment creditors were first enabled to
sue execution of one moiety of the debtor's lands, whether
(1) There was also another species of levari facias, of which the plaintiff
might under particular circumstances, have indirectly availed himself. In
case the defendant was outlawed in the action, the sheriff, on the issuing of the
capias utlagatum, took an inquisition of the lands of the debtor, and extended
their value, and made his return to the Exchequer. A levari facias from the
Crown then followed, commanding the sheriff to levy the extended value de
exitibus, from the issues of the lands, till the plaintiff should be satisfied his
debt. These issues were defined to be the " rents and revenues of the land,
corn in the grange, and all moveables, except horses, harness, and household
stuff ; " 13 Ed. 1 , c . 39 , st . 1 ; 2 Inst. 453. The sheriff might have agisted or
mown the grass ; Britten v. Cole, 5 Mod . 118, per Lord Holt. But if at the
date of the inquisition , the agistment was already let, the money agreed to be
paid was a sum in gross, and was not subject to the levari facias ; S. C. 1
Raym . 307, per eundem . The cattle of a stranger, if levant and couchant on the
land, were seizable under the writ, as included in the word " issues " ; S. C. Ib.
305. The lands were bound by the levari facias from the date of the writ,
so that any subsequent disposition, though it served to pass the freehold and
possession, yet did not interrupt the king's title to the profits ; Ib . 307, per
Lord Holt
1067
*796 JUDGMENTS AGAINST [CH. XXVII. S. 7.
[ (c) 46 & 47 Vict. c. 52, s . 146. ] 3 Drew. 326 ; Gore v. Bowser, 3 Sm.
(d) Pit v. Hunt, 2 Ch. Ca. 73 ; & G. 1 ; Smith v. Hurst, 1 Coll. 705 ;
Anon. case, cited 1 P. W. 445 ; and Partridge v. Foster, 34 Beav. 1 ; Hors
see Scott v. Scholey, 8 East, 485 ; ley v. Cox, 4 L. R. Ch. App. 92.
Estwick v. Caillaud, 5 T. R. 420 ; (a) Angell v. Draper, 1 Vern. 399 ;
Kirkby v. Dillon, C. P. Cooper's Rep. Shirley v. Watts, 3 Atk. 200 ; Smith
1837-38, 504 ; Simpson v. Taylor, 7 v. Hurst, 1 Coll. 705 ; Partridge v.
Ir. Eq. Rep. 182 ; Bennett v. Powell, Foster, 34 Beav. 1 .
1068
CH. XXVII. S. 7.] CESTUI QUE TRUST . *797
(
f) Foster v. Blackstone, 1 M. & K. 297 ; and see Browne v. Cavendish,
1 Jon. & Lat. 633.
1071
*799 JUDGMENTS AGAINST [CH. XXVII. S. 7.
(a) Cited Forth v. Duke of Nor pear whether the judgments were
folk, 4 Mad. 506 , note (a). entered up before the actual sale or
(b) 4 Mad. 503. the decree for sale.
(a ) Lodge v. Lyseley, 4 Sim. 75 ; (b) See Farrar v. Winterton, 5
and see Craddock v. Piper, 14 Sim. Beav. 1 ; Curre v. Bowyer, Ib. 6, note.
310, where, however, it does not ap
1072
CH. XXVII . S. 7. ] CESTUI QUE TRUST. *800
(1) It was ruled, upon a similar principle, that, where freeholds and copy
holds were blended in one mortgage , the equity of redemption of the whole
1074
CH. XXVII. S. 7. ] CESTUI QUE TRUST. *801
(a) A decree for an account merely paid ; Jones v. Williams, 11 Ad. &
is not within the section ; Chadwick Ell. 175 ; Doe v. Amey, 8 M. & W.
v. Holt, 2 Jur. N. S. 918 ; [ Widgery 565 ; though, as respects costs, the
v. Tepper, 6 Ch . D. 364. ] Neither is case is different ; Jones v. Williams,
a rule of a Court of Common Law 8 M. & W. 349 ; Doe v. Barrell, 10 Q.
which does not specify the sum to be B. 531.
1079
*805 JUDGMENTS AGAINST [CH. XXVII. S. 7.
-
*[(8.) Remedies under charging order. The judg- [ * 809 ]
ment creditor is entitled to the same remedies under
the charging order, as he would have had if the charge had
been created by contract between himself and the debtor ;
and must therefore, to enforce the charge, institute fresh
proceedings for foreclosure or sale, without which the Court
has no jurisdiction to order a sale of the shares (a) .
(1.) Order absolute cannot be discharged . ――― After the order
I
has been made absolute, it cannot be discharged, even upon
the application of a person who shows that the shares were
standing in the name of the judgment debtor as a mere
trustee for the applicant (b) . ]
21. 2 & 3 Vict. c. 11. - The 1 & 2 Vict. c . 110 , was soon fol
lowed by another statute (2 & 3 Vict. c. 11 ) , by which it was
enacted : - (1. ) By section 2 , that no judgment whatsoever
should affect any lands, tenements, or hereditaments as to pur
chasers , mortgagees, or creditors , unless previously registered
at the Common Pleas according to the provisions of the Act 1
&2 Vict. c. 110. (II.) By section 4, that all judgments, decrees,
rules, and orders registered , or to be registered , at the Common
Pleas, according to the provisions of the Act 1 & 2 Vict. c.
110, should, at the expiration of five years, be null and void
against lands, tenements, and hereditaments , as to purchas
ers, mortgagees, or creditors (e) , unless they should have again
(d) And see 18 & 19 Vict. c. 15, s . 6. spective, and therefore does not apply
(e) The Act speaks only of recog to recognizances entered up before
nizances to the Crown, and not of the passing of the Act, 29th July,
recognizances in general, as on re 1864. Recognizances to the Crown
ceiverships , which are also liens on are further provided for by 28 & 29
real property. The 27 & 28 Vict. c. Vict. c. 104, s . 48.
112, s. 1 , extends to recognizances (a) Westbrook v. Blythe, 3 Ell . &
generally ; but the Act is not retro Bl. 737.
1086
CH. XXVII. S. 7.] CESTUI QUE TRUST. *811
22. 3 & 4 Vict. c . 82. ――― This Act, however, still left open
the question whether, by analogy to the cases under the
Registry Acts, a purchaser, mortgagee, or creditor, if he had
actual notice of an unregistered judgment, was not bound
by it ; and a subsequent Act, 3 & 4 Vict. c . 82, was passed
to obviate this. It was thereby enacted, by the second sec
tion, that no judgment, decree, order, or rule (not mentioning
Crown debts ) should, by virtue of the said Act ( 1 & 2 Vict.
c. 110), affect any lands at law or in equity as to purchasers,
mortgagees, or creditors, until registration (b) under the
said Act at the Common Pleas, any notice of such judgment,
decree, order, or rule to any purchaser, mortgagee, or cred
itor, in anywise notwithstanding.
23. 18 & 19 Vict. c. 15. ―― It being, however, doubted
whether this Act protected a purchaser, mortgagee, or cred
itor from the effect of notice as to any remedy against him
which the judgment creditor had before, independently of 1
& 2 Vict. c. 110, or whether its effect was not limited to pro
tection against the additional remedy given to the judgment
creditor by that Act ( c ) , it was, in order to obviate
*
this inconvenience, enacted generally, by 18 & 19 [ * 811 ]
Vict. c. 15, s . 4, that no judgment, decree, order, or
rule (a) , which might be registered under 1 & 2 Vict. c. 110,
should affect any lands, &c ., at law or in equity, as to pur
chasers, mortgagees, or creditors, unless and until the mem
orandum, &c . should have been left with the proper officer,
any notice of any such judgment, decree, &c ., to any such
purchaser, mortgagee, or creditor, in anywise notwithstand
ing.
24. 22 & 23 Vict . c. 35. -The 22 & 23 Vict . c . 35 , s. 22,
puts Crown debts on the same footing as judgments as re
gards the necessity of re-registration from time to time, thus
reducing the period over which the search for Crown debts
should extend to five years, as in the case of judgments, &c .
(b) The framer of this Act appears with notice. This doubt is now set at
to have overlooked the intermediate rest by sect. 5 of 18 & 19 Vict. c. 15 .
Act of 2 & 3 Vict. c. 11 , and to have (c) See Beere v. Head, 3 Jon. &
left it doubtful whether re-registra Lat. 340.
tion within five years was necessary (a) N.B. - Not mentioning Crown
to exclude the title of a purchaser debts.
1087
*812 JUDGMENTS AGAINST [CH. XXVII. S. 7.
―
25. 23 & 24 Vict . c. 38. By the Law of Property Amend
ment Act, 23 & 24 Vict. c . 38 , s . 1 , freehold, copyhold and
leasehold estates, were, in respect of judgments (b), statutes
and recognizances, as against purchasers and mortgagees,
placed upon the same footing, and no such judgments, &c . ,
entered up after the date of the Act (23d July, 1860) , were
to affect lands in the hands of purchasers or mortgagees,
unless a writ of execution should have been issued and regis
tered before the conveyance or mortgage, and unless execu
tion should be put in force within three calendar months
from the registration . A purchaser, therefore, was thus pre
cluded from objecting to the title on the ground of his having
notice of a judgment entered up after the Act, and registered
at the Common Pleas, but upon which no execution had
been issued (c).
26. Who are purchasers . As to the meaning of the word
purchasers, it has been held that a wife and children are
purchasers under a marriage settlement of the interests
limited to them out of the husband's estate, but the husband
as to a life-interest limited to himself out of his own estate
is not a purchaser, and a judgment therefore would attach
upon it just as if it were not the subject of settlement (d) .
27. Construction of the Acts. ― And the construction of
the Acts extending the remedies of the judgment creditor,
is that as to equitable interests they are to receive the same
construction as the Statute of Frauds, and consequently that
simple trusts only can be taken in execution at law (e. )
28. 27 & 28 Vict. c. 112. ―-We now come to the
[* 812] more recent Act, 27 & 28 Vict. c . 112, * which enacts ,
by the first section, that no judgment, statute or recog
nizance to be entered up after 29th July, 1864, shall affect
any land until actual delivery of the land in execution by a
writ of elegit or other lawful authority. (a) . And by the
(b) This, by sect. 5 , includes de (d) Re Browne, 13 Ir. Ch. Rep. 283 .
crees, orders in equity and bank (e) Digby v. Irvine, 6 Ir. Eq. Rep.
ruptcy, and other orders having the 149.
operation of a judgment. (a) The provisions of this Act are
(c) Wallis v. Morris, 10 Jur. 740 ; by 28 & 29 Vict. c. 104, s. 48, ex
and see Thomas v. Cross, 2 Dr. & tended, as from 1st November, 1865,
Sm . 423. to Crown debts.
1088
CH. XXVII. S. 7.] CESTUI QUE TRUST. *812
(d) Bennett v. Powell, 3 Drew. 326. Ridg. P. C. 24. See the observations
(e) Neate v . Duke of Marlborough, of Lord Fitzgibbon, p . 61 ; Neate v.
3 M. & Cr. 416, per Lord Cottonham ; Duke of Marlborough , 3 M. & Cr. 416.
and see Godfrey v. Tucker, 33 Beav. [(g) Webb v. Stenton, 11 Q. B. D.
284. 518 ; see Re Cowan's Estate, 14 Ch.
(ƒ) Barnewall v. Barnewall, 3 D. 638. ]
1093
* 816 JUDGMENTS AGAINST. [CH. XXVII. S. 7.
SECTION VIII .
(e) Benham v. Keane, 1 J. & H. case, Godb. 293 ; the cases cited Id .
685 ; Tunstall v. Trappes, 3 Sim . 302 ; 294 ; Id. 298 ; Babington's case, cited
Davis v. Earl of Strathmore, 16 Ves. Id. 299 ; King v. Smith, Sugd. Vend.
427. & Purch. Append . No. xv. 11th edit.
(a) See Re Bailey's Trusts, 38 L. J. per Ch. Baron Macdonald.
N. S. Ch. 237. (c) Attorney General v. Sands,
(b) King v. Lambe , M'Clel. 422, Hard. 495, per Lord Hale.
per Sir W. Alexander ; Chirton's case, (d) See Sir E. Coke's case, Godb.
Dyer, 160, a ; S. C. cited Sir E. Coke's 294.
1095
*818 FORFEITURE OF A TRUST. [CH. XXVII. S. 9.
only the perception of the rents and profits, until the amount
of the debt was levied (e) . This defect was supplied par
tially by a statute of Elizabeth (f) , and more effectually by
25 G. 3, c. 35. It is by the latter statute enacted, that "it
shall be lawful for the Court of Exchequer, and the same
Court is thereby authorized, on the application of the Attor
ney-General (g) in a summary way by motion (h) to the
same Court, to order that the right, title, estate, and interest
of any debtor to the Crown, and the right, title , estate, and
interest of the heirs and assigns of such debtor, which have
been or shall be extended under or by virtue of any extent
or diem clausit extremum, shall be sold as the Court shall
direct, and the conveyance shall be made by the Remem
brancer in said Court of Exchequer or his deputy, under
the direction of the said Court, by a deed of bargain and
sale to be inrolled in the said Court."
[* 818] * 3. Equity of redemption. - By the effect of this
enactment, a trust or equity of redemption (a) of a
Crown debtor may now be sold upon summary application
to the Queen's Bench Division by motion .
SECTION IX.
OF FORFEITURE .
(e) Rex v. Blunt, 2 Y. & J. 122, (a) King v. De la Motte, Forr. 162.
per Baron Hullock. (b) Attorney - General v. Sands ,
( f ) 13 Eliz . c. 4 . Hard. 495, per Lord Hale ; 1 Hale's
(g) See Rex v. Bulkeley, 1 Y. & J. P. C. 247 ; Jenk. 190 .
256. (c) Gilb. on Uses, 38.
(h) See Rex v. Blunt, 2 Y. & J. 120.
1096
CH. XXVII. S. 9. ] FORFEITURE OF A TRUST. *819
(d) This includes the general (a) King v. Daccombe, Cro . Jac.
statutes of the realm, as opposed to a 512.
special Act attainting a particular
individual.
1097
*820 FORFEITURE OF A TRUST. [CH. XXVII. S. 9.
66
uses " can be no argument that " trusts " were not intended,
for at that day both words were employed indifferently, as
terms perfectly synonymous .
In support of this reasoning may be cited the opinions
expressed by Baron Turner and Lord Hale, in the well
considered case of Attorney-General v . Sands (a) . And
Lord Hale afterwards recurs to the subject in his Pleas of
the Crown (6), and argues the point there with considerable
strength of reasoning : - " By the statute of 27 H. 8, " he
says, " all uses were drowned in the land ; but there have
succeeded certain equitable interests called trusts, which
differ not in substance from uses ; nay, by that very statute
they come under the same name - viz . uses or trusts . By
the statute 33 H. 8, there is a special clause that the person
attainted shall forfeit all uses ' ; and what other uses there
could be at the making of the statute 33 H. 8, but only
trusts such as are now in practice and retained in Chancery,
I know not . It was agreed in the Earl of Somerset's case,
and so resolved in Abington's case, that a trust of a freehold
was not forfeited by attainder of treason . But how this
resolution in Abington's case can stand with the statute of
33 H. 8, I see not ; for certainly the uses there mentioned
could be no other than trusts ; and therefore the equity or
trust itself, in cases of attainder of treason, seems forfeited
by the statute, though possibly the land itself be not in the
King " (c).
7. Whether equities of redemption subject to forfeiture .
Equities of redemption appear to have been made forfeitable
for attainder of treason by 33 H. 8, (d) ; for the statute enu
merates conditions, and the interest of the mortgagor is a
condition, which, though broken at law, is saved whole to
him in a Court of equity.
8. Trusts of chattels forfeitable upon conviction. - Trusts of
(a)FrHard
S. C. eem .. 1495
30. ; S. C. Nels . 131 ; the statute ; but according to Free
(b) 1 P. C. 21 8. man (p. 130 ) , that the estate was to
Attorney-General be executed in the King by a Court
(c ) In
it was laid down, accordingv.toSands, of equity, which seems the better
Nel
son's report (p. 131) , that the estate opinion.
was executed in the King by force of (d) Anon. case, cited Reeve v. At
torney- General, 2 Atk. 223.
1099
*821 FORFEITURE OF A TRUST . [CH. XXVII. S. 9.
* SECTION X. [* 822 ]
OF ESCHEAT.¹
1 Trustees hold either real or personal property subject to the State if the
cestuis que trust die leaving no heirs or relatives ; Crane v. Reeder, 21 Mich. 25 ;
Matthews v. Ward, 10 G. & J. 443 ; McCaw v. Galbraith, 7 Rich . L. 75 ; Re
Adams, 4 Chy. Chamb. 29.
1101
*823 ESCHEAT. [CH. XXVII. S. 10.
SECTION XI.
1 A trust estate may be devised, but an assignment for the benefit of cred
itors does not convey the trust estate ; Chace v . Chapin , 130 Mass . 128 ;
Kelly v. Scott, 49 N. Y. 595 ; Abbott, Petr. 55 Me. 580. A general devise of
real estate will pass property held in trust unless the intention plainly appears
to be to the contrary ; Ballard v. Carter, 5 Pick . 112 ; Richardson v . Wood
bury,
es tates43 Me.
; Ba ng206
s ; Hughes v. Caldwell , 11 Leigh, 342 ; as a devise of all my
v. Smith, 98 Mass . 273 ; Stone v. Hackett, 12 Gray, 237 ; Wil
lard v. Ware, 10 Allen, 263 ; mortgage estates will also pass ; Asay v. Hoover,
5 Barr, 35. In some states, trust property does not descend upon death or
be appointed
removal
will of trustee, but comes into
; McDougald v. Carey, 38 Ala.of320
the control the courts,v.and
; Clark Crego, trustees
new47 Barb.
599; Hook v. Dyer, 47 Mo. 214.
1103
*824 DESCENT OF A TRUST. [CH. XXVII. S. 11.
estate, and will descend in the maternal line, and, failing the
heirs on the part of the mother, will rather absolutely de
termine, than pass into the paternal line (e) . But
*
[ * 824 ] if one seised ex parte materna devise to A. and his
heirs upon trust for a person for life, and then in
trust to convey to the testator's heir at law, this breaks the
descent, and the heir ex parte paterna is entitled to the equi
table remainder (a).
3. Gavelkind . ―――― If the land be subject to gavelkind, borough
English, or other custom, the equitable interest will follow
the same course of inheritance (b) .
4. Copyholds . And a trust of copyholds as well as of
freeholds is governed by the descent of the legal estate (c) .
5. Possessio fratris . The analogy to law is so strictly
preserved, that, until a late Act, if the last cestui que trust
had no seisin of the equitable estate corresponding to pos
sessio fratris at law, the trust would have descended to
the brother of the half blood, not to the sister of the whole
blood (d) . By the late Act, the half blood is now in all
cases (but subject to the preferable claim of the whole blood)
capable of inheriting estates, whether legal or equitable (e) .
6. Proceeds from sale of gavelkind lands. - If a settlement
contain a power of sale with a trust to reinvest the proceeds
in a purchase to the same uses, and the lands are sold, but
the proceeds are not reinvested, though the bulk of the es
tate sold was of gavelkind tenure, yet if one of the uses
be to A. and his heirs , the proceeds of the sale will descend
to the heirs of A. at common law, and not to the heirs by the
custom of gavelkind (ƒ) .
SECTION XII .
OF ASSETS.¹
lien ; Pettingill v. Pettingill, 60 Me. 412 ; Trinity Church v. Watson, 50 Pa. St.
518 ; there is danger, that in providing for some debts, the liens of other cred
itors may be terminated ; Cadbury v. Duval, 10 Barr, 267 ; Gardner v. Gardner,
3 Mason, 178. Debts of an estate must be paid out of the personal property,
if it is sufficient for the purpose , and this applies to debts which are secured
by collateral ; Hewes v. Dehon, 3 Gray, 206 ; Hancock v. Minot, 8 Pick . 29 ;
Marsh v. Marsh, 10 B. Mon. 360 ; Lewis v. Thornton, 6 Munf. 87 ; Leavitt v.
Wooster, 14 N. H. 551 ; Schermerhorn v. Barhydt, 9 Paige, 29 ; Martin v .
Fry, 17 Serg. & R. 426 ; but this does not apply to an incumbrance on land
at the time of its purchase by the deceased ; Andrews v . Bishop, 5 Allen, 490 ;
Cumberland v. Codrington, 3 Johns. Ch. 229. As to priority of liability of
various parcels of real estate for debts, see Livingston v. Livingston, 3 Johns.
Ch. 148 ; Commonwealth v. Shelby, 13 Serg. & R. 348 ; Ruston v. Ruston, 2
Yeates, 54 ; Warley v. Warley, 1 Bail. Eq. 398 ; Plimpton v. Fuller, 11 Allen,
140 ; Stroud v. Barnett, 3 Dana, 394. The testator may provide for the pay
ment of all debts out of his realty ; see notes to Aldrich v. Cooper, 2 Lead. Cas .
Eq . 56, and Ancaster v. Mayer, 1 Lead . Cas. Eq . 505 ; in which case the heir or
devisee becomes a trustee for the payment of the debts ; Stevens v. Gregg, 10
G. & J. 143. The payment of legacies from the real or personal estate will
be controlled by language similar to that used in reference to the payment of
debts ; Sherman v . Sherman , 4 Allen , 392 ; it depending on the testator's in
tention, as shown by his language ; Gridley v. Andrews , 8 Conn. 1 ; Paxson v .
Potts, 2 Green, Ch . 322 ; Montgomery v. M'Elroy, 3 Watts & S. 370 ; Lupton
v. Lupton, 2 Johns . Ch . 618. Legacies to be payable from the real estate,
must have clear provision made to that effect ; Owings' Case, 1 Bland. 290 ;
Adams v. Brackett, 5 Met. 282 ; and the residuary clause usually includes
both real and personal ; Canfield v . Bostwick, 21 Conn . 550 ; Tracy v. Tracy,
15 Barb. 503. Ordinarily the real estate is to be used in payment of legacies
only after the personalty has been exhausted ; Lewis v. Darling, 16 How. 10 ;
Fenwick v. Chapman, 9 Pet. 466. If the debts are to be paid out of realty,
legatees will be paid out of personalty ; Bardwell v. Bardwell, 10 Pick. 19 ;
Smith v. Wyckoff, 11 Paige, 49 ; Miller v. Harwell, 3 Murph. 194. Where
realty is devised to executor or trustee to pay legacies, he becomes personally
liable for the payment ; Bugbee v. Sargent, 23 Me . 269 ; Dodge v. Manning,
11 Paige, 334 ; Larkin v. Mann, 53 Barb. 267 ; and the realty charged can be
followed by the devisees or legatees in case of non-payment to them ; Solliday
v. Gruver, 7 Pa. St. 452 ; Aston v . Galloway, 3 Ired . Eq. 126 ; Hallett v. Hallett,
2 Paige, 15.
1106
CH. XXVII. S. 12. ] A TRUST AS ASSETS. *826
(c) Pratt v. Colt, 1 Ch. Ca. 128 ; (f) 2 Ch. Rep. 143.
S. C. Freem. 139 (g) 1 Vern. 172.
(d) Trevor v. Peryor, 1 Ch. Ca. (h) R. L. 1683, A. fol . 166.
148 . (i) R. L. 1684, A. fol. 210.
(e) Hard. 490 ; S. C. Freem. 131 ; (a) 1 Vern. 282, Raithby's edit.
S. C. Nels. 134. (b) 29 Car. 2, c. 3.
1108
CH. XXVII. S. 12.] A TRUST AS ASSETS . *828
(c) The former part of the clause, ries' opinion in Solley v. Gower, 2
which enables the sheriff to take a Vern. 61.
trust in execution , was construed not (ƒ) Anon. Freem. 115 ; Acton v.
to include a complicated trust, and Peirce, 2 Vern. 480 ; Plunket v. Pen
therefore it is presumed the latter son, 2 Atk. 290.
part of the clause could not be differ (g) See post, 831.
ently interpreted . (h) Cox's case, 3 P. W. 341 , and
(d) Plunket v. Penson, 2 Atk. 293, note Ib.; Hartwell v. Chitters, Amb.
per Lord Hardwicke ; Solley v. Gower, 308 ; Clay v. Willis, 1 B. & C. 372.
2 Vern. 61, per Lord Jeffries. (i) Cook v. Gregson, 3 Drew. 549.
(e) 1 Vern. 411 ; Reg. Lib. 1686, (a) Hawkins v. Lawse, 1 Leon.
B. fol. 181 , 844 ; and see Lord Jeff 155, per Periam, J.; Anon . case, 1
1109
* 828 A TRUST AS ASSETS . [CH. XXVII . S. 12.
(a) Kinderley v. Jervis, 22 Beav. 1. tion of the rule, allowing the right of
(b) See cases, p. 249, note (g) . retainer out of the real estate to an
(c ) Foster v. Handley, 1 Sim. N. heir at law or devisee being a specialty
S. 200 ; more fully reported, 15 Jur. creditor, was, that he might not be
73 ; Re Burrell, 9 L. R. Eq . 443 ; [but under a disadvantage by not being
see Re Illidge, 24 Ch. D. 654, in which able to sue himself ; since, if he could
the earlier cases were not cited, where not retain, other creditors might have
it seems to have been assumed by obtained priority over him by suing
Chitty, J., that the assets were to be him. But a simple contract creditor
administered as equitable assets ; and could not get a judgment giving him
see S. C. on appeal, 27 Ch . D. 478. ] priority, and so the rule had no ap
[ (d) Re Illidge, 24 Ch . D. 654 ; 27 plication in his case. There appears
Ch. D. 478 ; explaining Ferguson v. to be nothing in 32 & 33 Vict. c. 46
Gibson, 14 L. R. Eq. 379. The founda to take away from a creditor by
1112
CH. XXVII. S. 12.] A TRUST AS ASSETS . *831
1 A trust will not be allowed to fail for want of a trustee, as if the trustee
dies, is disabled, or otherwise becomes unable to perform the duties of his
office ; Bundy v. Bundy, 38 N. Y. 410 ; Crocheron v. Jaques, 3 Edw. Ch. 207 ;
Vidal v. Girard, 2 How. 128 ; McCartney v . Bostwick, 32 N. Y. 53 ; the same
is true if there has never been a trustee, as the courts will appoint one ; Treat's
App . 30 Conn. 113 ; Gibbs v. Marsh, 2 Met . 243 ; Malin v. Malin, 1 Wend. 625 ;
King v. Donnelly, 5 Paige, 46. The person who chances to hold the legal title
may become a trustee ; Adams v. Adams, 21 Wall. 186. If a trustee is ille
gally appointed, the courts will appoint another ; Levy v. Levy, 40 Barb. 585 ;
Vidal v. Girard, 2 How. 188 ; Winslow v. Cummings, 3 Cush. 358 ; or if he
refuses to act ; De Peyster v. Clendining, 8 Paige, 295 ; Field v. Arrowsmith, 3
Humph. 442 ; Hawley v. James, 5 Paige, 318 ; likewise if the office in any way
becomes vacant ; Wilson v. Towle, 36 N. H. 129 ; White v. Hampton , 13 Ia.
259 ; Pool v. Cummings, 20 Ala. 563 ; Gibson's Case, 1 Bland, 138. One
sometimes becomes a trustee without an appointment, as if a husband conveys,
or attempts to convey, property directly to his wife, he becomes a trustee for
her ; Garner v. Garner, Busbee, Eq. 1 ; Huntly v. Huntly, 8 Ired . Eq. 250.
Courts will also aid in the execution of trusts ; Eldredge v. Heard , 106 Mass.
582 ; Greenough v. Welles, 10 Cush. 576 ; and in some cases where powers
partake strongly of the nature of trusts, they will also assist in their execu
tion ; Babbitt v. Babbitt, 26 N. J. Eq . 44 ; Erickson v. Willard, 1 N. H. 217 ;
Miller v. Meetch, 8 Barr, 417 ; Wilkinson v. Getty, 13 Ia. 157. If courts have
to restrain or remove trustees, they will provide for the vacancies ; Sloo v .
Law , 3 Blatchf. C. C. 459.
1116
CH. XXVIII. ] FAILURE OF THE TRUSTEE. *834
ker v . Brooke , 9 Ves. 583 ; and see was some doubt : Harvey v. Harvey,
Roberts v. Spicer, 5 Mad . 491 ; Wills 1 P. W. 125 ; Burton v. Pierpoint, 2
v. Sayers, 4 Mad. 409 ; Rich v. P. W. 78.
Cockell, 9 Ves. 375. At first there (e) Brown v. Higgs, 8 Ves. 574.
1118
CH. XXVIII.] FAILURE OF THE TRUSTEE. * 835
(e) 2 Ves . 110 ; and see Liley v. Broom, 7 Ves. 124 ; Salusbury v.
Hey, 1 Hare, 580. Denton, 3 K. & J. 536 ; Penny v.
(a) Doyley v. Attorney-General , Turner, 2 Ph. 493 ; Izod v. Izod, 32
2 Eq. Ca. Ab. 195 ; Fordyce v. Beav. 242 ; Gray v. Gray, 13 Ir. Ch.
Bridges, 2 Ph. 497 ; Longmore v. Rep. 404 .
(b) 2 Eq. Ca. Ab. 195. See Down and Doyley v. Attorney-General was
v. Worrall, 1 M. & K. 561 ; but there not cited : see V. C. Wood's observa
the two sets of objects were con tions, 3 K. & J. 538.
nected not by " and," but by "or; "
sitous " would not extend the construction of the word " relations " to those
out of the statute. Thus there appears to be no authority for holding the
words to be nugatory as among the relations within the statute, while on the con
trary side of the question there are, as we shall see, direct decisions. In
Brunsden v. Woolredge, Amb . 507, a testator gave 500l . to be distributed
amongst his mother's poor relations, and Sir T. Sewell directed the fund to be
distributed amongst the poor relations of the mother within the statute who
were objects of charity. In Mahon v. Savage, 1 Sch . & Lef. 111, a testator gave
10007. to be distributed amongst his poor relations, or such other objects of
charity as should be mentioned in his private instructions to his executors .
No instructions were left, and Lord Redesdale held , that Lynam, one of the
next ofkin within the statute, was not entitled to a share, unless he was a poor
person at the time of the payment of the legacy. We may also add the
dictum of Lord Thurlow in Green v. Howard, 1 B. C. C. 33 : — " The word
'relations ,"" he said, " must be confined to the statute, but not always in the
proportions of the statute : where the testator has said, to relations according
to their greater need, the Court has shown particular favor to one." The argu
ment that the Court cannot distinguish between the degrees of poverty as
amongst the relations within the statute is also answered by the case of
Gower v. Mainwairing , cited in the text, in which a direction for such a dis
tinction was actually made.
1122
CH. XXVIII . ] FAILURE OF THE TRUSTEE. *838
rule has been thus laid down by Lord Cottenham: " When
there appears a general intention in favour of individuals of
a class to be selected by another person, and the particular
intention fails from that selection not being made, the Court
will carry into effect the general intention in favour of the
class " (h).
10. In favour of what objects the Court will exercise a power
imperative. - The question in favour of what objects a power
imperative, whether of distribution merely, or of
*
selection, will be executed by the Court, viz . , whether [ * 840 ]
in favour of those living at the death of the testator,
or those living at the death of the donee of the power, remains
to be considered ; and it is conceived that, in reference to
this question, the following results may be deduced from
the authorities :
Case where an immediate exercise of the power is contem
plated. — First. Where a testator bequeaths property with a
power imperative in favour of a class, whether of children ,
relations, or others, and it appears to be the intention that
the distribution or selection should take place as soon as con
veniently may be after the testator's death, then the Court
will execute the power in favour of the class as existing at
the date of the testator's death (a) .
Where an immediate exercise not contemplated . ― Secondly.
Where the frame of the will does not of necessity point to an
immediate exercise of the power, as where the donee of the
power takes a life estate expressly, or by implication , the
nature ofthe power given to the donee has to be taken into
consideration :
a. Where power testamentary. —If the devise or bequest
be in the form not of a gift, but of a power to be exercised
by will only, then, inasmuch as the objects of the power are
necessarily those only living at the death of the donee, the
Court executes the power in favour of those members of the
(h) Burrough v. Philcox, 5 M. & where a life estate being given to the
Cr. 92. donee of the power, the donee dies in
(a) Brown v. Higgs, 4 Ves. 708, the testator's lifetime ; see Penny v.
&c.; Longmore v. Broom, 7 Ves. 124 . Turner, 2 Ph. 493 ; Hutchinson v.
The result will, of course, be the same Hutchinson, 13 Ir. Eq. Rep. 332.
1125
* 841 FAILURE OF THE TRUSTEE. [CH. XXVIII .
class only who are in esse at the death of the donee ( b) . But
the rule applies only where the class take through the medium
of a power, for if there be a gift to them in the first instance,
in such shares, &c., as the donee of the power shall appoint
by will, then, in default of exercise of the power, the whole
class take, whether they survive the donee of the power or
not (c).
B. Where power not merely testamentary . ――― Where the
power given to the tenant for life is not merely testamentary,
but may be exercised either by deed or will, the question ,
whether the class to take is to be ascertained at the death of
the testator or of the donee of the power, is involved in still
further difficulty. The decisions which support an execu
tion of the power in favour of the class of objects as existing
at the death of the donee (d ) , and those which support
[* 841 ] an execution in favour * of the class as existing at
the death of the original testator (a) , are almost evenly
balanced ; but the apparent absence of any full consideration
of the question, and the circumstance that in some of the
cases the power, though not expressly limited to an exercise
by will, did not in terms authorise an execution by deed or
writing, and may perhaps have been viewed by the Court as
testamentary, detract from their value as authorities upon
this point .
Upon principle, too, as well as upon authority, the question
is attended with difficulty. On the one hand, the power
may be properly exercised by the donee at any time before
his death, and there is no obligation to exercise it earlier,
and if any members of the class die before the power is exer
(b) See also observation by V. C. trustees, who both died before the
Wood in Re White's Trusts, Johns. tenant for life.
659, 660, a case different, however, [(c) See Wilson v. Duguid, ubi
from any of those discussed in the supra.]
text, the donees of the power being [ (a ) Re Jackson's Will, 13 Ch. D.
189.]
1127
* 842 FAILURE OF THE TRUSTEE . [CH. XXVIII.
is observable that the power in this case was only one of dis
tribution ; but in a still later case (b) , where the power was
one of selection and distribution, the objects who had died in
the lifetime of the donee of the power were held entitled to
participate ; but the decision in the latter case was also based
upon other grounds . The cases in which an intention ap
pears that there should be a personal enjoyment by the objects
of the power stand on a different footing, and in these cases
there is good ground for holding that the object must sur
vive the donee of the power in order to participate (e) ; but
apart from any such indication it is conceived that the true
principle is that all persons in whose favour the power could
at any time have been exercised are objects, and that they
all are equally entitled to participate . ]
y. Whole purview of instrument must be regarded. It is
clear that where the donee tenant for life may exercise the
power by deed or will, the members of the class in existence
at the date of the death of the donee will alone take, if, upon
the purview of the original instrument, they alone appear to
be the objects of the power (d) .
11. Construction of the word " relations ." .- - Power of selec
tion and power of distribution. Where there is a power of
appointment in favour of " relations," the donee of the dis
cretion, if he have a power of selection , may appoint to re
lations in any degree (e ) , and it is only in those cases where
he has a mere power of distribution that he must confine
himself to the relations within the Statute of Distribution
of Intestate's Estates (f) . But the Court, except where
the sons of N. filed a bill to have the benefit of the trust, and
the Court decreed the trustees, within a fortnight next after
the entry of the order, to nominate such one of the plaintiffs
as they should think fit, upon whom to settle the lands of
the testator ; and if the trustees should fail to nominate
within that time, or there should be any difference between
them concerning such nomination, then the Court would
nominate one of the plaintiffs , it being the testator's intent
that his estate should not be divided, but settled upon one
person.
In Richardson v. Chapman (c) , Dr. Potter, Archbishop of
Canterbury, gave all his options to trustees upon trust, that
in disposing thereof " regard should be had according to
their discretion to his eldest son , his sons in law, his present
and former chaplains, and others his domestics , particularly
Dr. T., his chaplain , and Dr. H., his librarian ; also to his
worthy, friends and acquaintance, particularly to Dr. Rich
ardson ." The trustee tried first to give the option in ques
tion to himself. He then fixed upon a person , with whom
he appeared to have made an underhand bargain. When
this failed , he, in breach of his duty, presented a Mr. Venner.
On a bill filed to set aside the presentation , Lord
Northington considered the trust to be of a kind [ * 845 ]
that the Court could not execute, and dismissed the
bill. Dr. Richardson appealed against this decision to the
House of Lords, and the other person, who stood prior to
him, not appearing, the House reversed the decree , and
ordered the presentation to be made to the appellant.
" This case," says Lord Alvanley, " shows, that however diffi
cult it may be to select the persons intended, and though it
must depend from the nature of the trust upon the opinion
of the trustees as to the merit of the persons who are the
objects, yet the Court will execute even a trust of that
nature, if the trustee shall either neglect to execute , or be
disabled from executing, or shows by his conduct any inten
tion not to execute it as the testator intended he should.
When one reads the nature of this trust, how difficult it was
(a) Brown v. Higgs, 5 Ves. 504. though he would not decide the point,
In this case (see 4 Ves. 718, 719 ; 5 that the children of Samuel Brown
Ves. 508) , an estate was devised "to could not establish a claim ; but the
one of the sons of Samuel Brown as ground of this opinion was not that
John Brown should direct by a con a trust had been created which the
veyance in his lifetime, or by his Court could not execute, but that the
last will and testament ; " and John intention of the testator as collected
Brown not having executed the power, from the will was to communicate a
Lord Alvanley was inclined to think, mere power.
1132
* CHAPTER XXIX . [* 846 ]
As the estate of the cestui que trust depends for its continu
ance upon the faith and integrity of the trustee, it is reason
able that the cestui que trust, whose interest is thus materially
concerned, should be allowed by all practical means to secure
himself against the occurrence of any act of misconduct.
We shall, therefore, next consider the rights of the cestui que
trust that are calculated to arm him with this protection.¹
1 The removal of trustees . - The cestui que trust and all others in interest are
entitled to have the trust property in the hands of proper custodians, and to
have a sufficient number of them ; Cooper v. Day, 1 Rich. Eq. 26 ; Greene v.
Borland, 4 Met . 330 ; Dixon v. Homer, 12 Cush. 41 ; Hospital v . Amory, 12
Pick. 445 ; if a trustee moves away, or for any reason cannot continue to per
form his duties, he may be removed ; Curtis v. Smith, 60 Barb. 9 ; Lill v .
Neafie, 31 Ill . 101 ; Ketchum v. Railroad, 2 Woods, 532 ; Farmers' Loan &
Trust Co. v. Hughes, 11 Hun, 130 ; Dorsey v. Thompson, 37 Md . 25 ; Brown
v. Strickland, 28 Ga. 387 ; likewise if he is guilty of misconduct ; Thompson
v. Thompson, 2 B. Mon. 161 ; Re Wiggins, 29 Hun, 271 ; or conducts the
estate to his own profit ; Clemens c. Caldwell, 7 B. Mon. 171 ; or if a husband
as trustee is guilty of cruelty ; Smyth v. Oliver, 31 Ala . 39 ; Kraft v. Loh
man, 79 Ala. 323 ; but see Abernathy v. Abernathy, 8 Fla. 243 ; or if he be
comes a lunatic ; In re Wadsworth, 2 Barb. Ch . 381 ; or a drunkard ; Bayles
v. Staats, 1 Halst. Ch . 513 ; Fisk v. Stubbs, 30 Ala . 335 ; or if money is not
invested properly or as desired ; Deen v . Cozzens, 7 Rob. (N. Y. ) 178 ;
Lewis v . Cook, 18 Ala. 335 ; Cavender v. Cavender, 114 U. S. 464 ; or
if the trust property is endangered ; Matthews v. Murchison, 17 Fed . Rep.
766 ; Nickels v. Philips, 18 Fla. 732 ; Harper v. Straws, 14 B. Mon. 57 ;
Scott v. Rand, 118 Mass. 215 ; Sparhawk r. Sparhawk, 114 Mass. 358 ; in
most of these cases proper and regular proceedings for removal must be
taken, up to which time the trustee may continue to act ; Howard v . Waters ,
19 Md . 529 ; People v. Norton, 5 Seld . 176 ; Hodgdon v. Shannon, 44 N. H.
572. If a trustee is appointed for a certain time, his duties end with the
expiration of the time as a matter of course ; Webb v. Neal, 5 Allen , 575.
A mistake or misjudgment is insufficient ground for removal ; Lathrop v.
Smalley, 23 N. J. Eq . 192 ; In re Durfee, 4 R. I. 401 ; so is a disagreement
between the trustee and cestui que trust ; Gibbes v . Smith, 2 Rich. Eq . 131 ;
Clemens v. Caldwell, 7 B. Mon. 171. Courts will not discharge trustees
against the wishes of the cestui que trust when proceedings are pending to com
1133
*846 SUBSTITUTION OF TRUSTEES . [CH. XXIX.
pel them to sell land ; Longstreth's Est. 12 Phila. 86 ; the calling in of funds
well invested by the trustee, that he may use them in his own business is not
sufficient unless mala fides is shown ; Massey v. Stout, 4 Del. Ch. 274 ; but a
refusal to join in a conveyance because it would interfere with his own
advantage to be derived therefrom is sufficient ; Re Frisbie, 3 Dema. ( N. Y.)
22 ; Re Morgan, 3 Dema. (N. Y. ) 612 ; a trustee appointed by the Court ex
parte may be removed on the application of an interested party ; Re Mayfield,
17 Mo. App . 684 ; in proceedings for removal, all the beneficiaries must be
made parties ; Bear v. American Rapid Tel. Co. 36 Hun, 400 ; one denying
that he is a trustee should be removed and a new one appointed ; Irvine v.
Dunham, 111 U. S. 327 ; a trustee may be removed for cause shown, and if
the trust estate is in jeopardy, no additional cause is necessary ; Hilles' Est.
13 Phila. (Pa . ) 402 ; a non-resident alien may be removed, though he never
signified his acceptance, nor assumed the duties of trustee ; Lane v. Lewis, 4
Dema. (N. Y. ) 468 ; charges against a testamentary trustee must be specific
and certain, not vague and indefinite, in order to remove him ; Ferris v. Ferris,
2 Dema. (N. Y. ) 336 ; a trustee may be removed for neglect ; Stevens v. El
dridge, 4 Cliff. C. C. 348 ; a trustee may be removed because of waste ;
Mandel v. Peay, 20 Atk. 325 ; Lucich v . Medin, 3 Nev. 93 ; if a trustee is
incapable of acting, an enabling act might be passed ; Fellows v . Miner, 119
Mass. 541 ; Williams's App . 73 Pa. St. 249 ; incompetency or dishonesty is
sufficient ground for removal ; Savage v. Gould , 60 How. Pr. 234 ; ill-will and
unnatural dislike may be ; McPherson v. Cox, 96 U. S. 404 ; a trustee may
not, without his consent, be removed from the management of a part of the
trust property only ; Sturges v. Knapp, 31 Vt. 1. Removal of trustee is in
discretion of the Court when the cestui que trust requests it ; Ward v. Dortch,
69 N. C. 279 ; good cause must be shown ; Stevenson's App . 68 Pa. St. 101 ;
refusal of trustee to exercise his discretionary powers may be a ground for
removal ; Atty.-Gen . v. Garrison, 101 Mass . 223 ; illiteracy, poverty, immoral
conduct, and misunderstanding are not ; Emerson v . Bowers, 14 N. Y. 449 ;
Stephenson v. Stephenson, 4 Jones, L. 472 ; Berry v. Hamilton, 12 B. Mon.
191 ; Fairbairn v. Fisher, 4 Jones, Eq . 390 ; Gregg v. Wilson, 24 Ind . 227 ;
neither is the non-residence of the trustee ; Cutler v . Howard, 9 Wis. 309 ;
Jones v. Jones, 12 Rich. 623 ; Ex parte Barker, 2 Leigh, 719 ; but see Max
well . Finnie, 6 Cold . 434 ; costs of proceedings to remove on account of
trustees leaving the state are to be paid out of the trust estate ; Bloomer's
App. 83 Pa. St. 45. A trustee may not be removed for a breach of trust or
failure to do his duty, if the trust property is not thereby endangered ;
Lathrop v. Smalley, 23 N. J. Eq. 192 ; especially if the cestuis que trust do not
wish it ; Berry v. Williamson, 11 B. Mon. 245. Trustee may not remove
from the state without accounting ; Harris v. Dillard , 31 Ala. 191. There
are numerous other causes for removal ; Quackenboss v . Southwick, 41 N. Y.
117 ; Preston v. Wilcox, 38 Mich . 578 ; Holcomb v. Coryell, 12 N. J. Eq . 289 ;
Re Clute, 80 N. Y. 651 ; Belknap v. Belknap, 5 Allen, 468 ; Johnson's App.
9 Barr, 416 ; Cooper v. Day, 1 Rich. Ch . 26 ; Piper's App . 20 Pa. St. 67.
Bankruptcy of trustees. The bankruptcy or insolvency of a trustee does
not ordinarily interfere with his fiduciary relation ; Belknap v. Belknap, 5
Allen , 468 ; Shryock v. Waggoner, 28 Pa . St. 430 ; Cooper v. Cooper, 5 N. J.
Eq . 9 ; Dwight v. Simon, 4 La. Ann. 490.
1134
CH. XXIX .] SUBSTITUTION OF TRUSTEES . *846
upon it, the cestui que trust may compel the trustee on a
proper indemnity to lend his name to the cestui que trust, to
enable him to sue (e) . Otherwise, should the trust
[* 854 ] property be lost, and the trustee himself become
insolvent, the cestui que trust's equitable interest
would be absolutely destroyed .
2. Tenant for life of renewable leaseholds neglecting to
renew . - If a tenant for life of leaseholds be bound to
renew, and by his threats or acts manifest an intention not
to renew, the remainderman may institute proceedings and
have a receiver appointed for the purpose of providing the
renewal fine out of the rents and profits of the estate ; and
if the period of renewal has already expired, a receiver may
be appointed on proof of the tenant for life's default (a) .
3. Trustee giving security. -— In one case, where a suspicion
was entertained that the trustee would not fairly execute
his trust, the Court required of him, if he continued in the
office , to enter into securities for his good faith (b) .
4. Cestui que trust may have a contingent interest secured.
And generally a cestui que trust, who can allege an existing
interest, however minute or remote, may, upon reasonable
cause shown, apply to the Court to have his interest properly
secured.
5. Possibility upon a possibility. ― But a distinction must
be taken between an existing interest, whether vested or
contingent, and the mere possibility of a future event, which,
if it occurs, may give birth to an interest. Thus where a one
fifteenth share of a residue was bequeathed to Isaac for life,
if he married Esther, and after his death for Isaac's eldest
or only child living at his decease, and who should attain
twenty-one, with a gift over in case Isaac should not marry
Esther, and Isaac married Isabella while Esther was still
living, it was held by M. R. (e) , and affirmed by Lord West
bury (d), that the eldest child of Isaac, an infant, as his
Though
the1.cestui quethe damage would not be irreparable. -It is clear
trust would be entitled to an injunction where
SECTION I.
The cestui que trust may follow the trust property into the possession of a
holder for value, if he had notice of it ; Jones v. Shaddock, 41 Ala . 262 ; McLeod
v. Bank, 42 Miss. 99 ; and into the hands of a volunteer, without notice ; Ly
ford v. Thurston, 16 N. H. 399 ; Barr v . Cubbage, 52 Mo. 404 ; as to what is
sufficient notice, see Gunnell v. Cockerill , 79 Ill. 79. The cestui que trust may
follow property which is not transferable into the hands of a purchaser, and
charge the property with all the equities attaching to it ; Gray v. Ulrich, 8
Kan. 112 ; Lathrop v. Bampton, 31 Cal. 17 ; trustees not having any right to
1150
CH. XXX . S. 1.] FOLLOWING THE ESTATE. *858
lowed into his hands, whether he had notice of the trust (a) ,
or not (b) ; for though he had no actual notice, yet
*
the Court will imply it against him where he paid [ * 858 ]
no consideration . But if the alienee be a purchaser
of the estate at its full value, then (subject as aforesaid ) if
he take with notice of the trust, whether the notice be actual
or constructive (a) , he is bound to the same extent and in
the same manner as the person of whom he purchased (b) ,
even though the conveyance was made to him by fine with
non-claim (e) ; for, knowing another's right to the property,
(h) Harrison v . Forth , Pr. Ch . 51 ; Salsbury v . Bagott, 2 Sw. 608, per Cur.;
Bradwell v. Catchpole, stated Walker [ Re Barrow's case, 14 Ch. D. 432. ]
v. Symonds, 3 Sw. 78, note ( a ) ; Mer (a) Bovy v. Smith, 2 Ch. Ca. 124 ;
tins v. Joliffe, Amb. 313, per Lord S. C. 1 Vern. 60, 84, 144 ; Kennedy v.
Hardwicke ; Brandlyn v. Ord, 1 Atk. Daly, 1 Sch . & Lef. 379, per Lord
571 , per eundem ; Sweet v . Southcote, Redesdale.
2 B. C. C. 66 ; M'Queen v. Farquhar, (b) See Bovy v. Smith, 2 Ch. Ca.
11 Ves. 478, per Lord Eldon ; Lowther 126.
v. Carlton, 2 Atk. 242 ; S. C. 3 Barn. [(c) Per Jessel, M. R. Re Barrow's
358 ; S. C. For. 187 ; Andrew v. case, 14 Ch. D. 445. ]
Wrigley, 4 B. C. C. 136, per Cur.; (d) 2 Eden, 347 ; S. C. Amb. 516.
1154
CH. XXX. S. 1.] FOLLOWING THE ESTATE. *861
1 Statute of Limitations. — Time does not bar a direct trust, but if there has
been extreme laches, equity might refuse to render any assistance ; Hallett v .
Collins, 10 How. 174 ; Powell v. Murray , 2 Edw. Ch. 644 ; Anderson v. Bur
well, 6 Gratt. 405 ; Chicago & East . Ill . R. R. Co. v. Hay, 119 Ill . 493 ; Mc
Callam v. Carswell, 75 Ga. 25 ; University v. Bank, 96 N. C. 280 ; Churchman
v . City of Indianapolis, 110 Ind . 259 ; Thompson v. Lyon , 20 Mo. 155 ; 61 Am.
Dec. 599 ; Presley v. Davis, 7 Rich. Eq. 105 ; 62 Am. Dec. 396 ; Tarleton v.
Goldthwaite's Heirs, 23 Ala . 346 ; 58 Am. Dec. 296 ; Gordon v. Small , 53 Md.
550. Rights of cestui que trust under express trust, cannot be barred so long as
the trust exists ; Pratt v. Thornton, 28 Me. 355 ; Commonwealth v. Moltz, 10
Pa. St. 527 ; 51 Am. Dec. 499 ; Railroad Co. v. Durant, 95 U. S. 576 ; Lewis v .
Hawkins, 23 Wall . 119 ; Haynie v. Hall's Ex'r, 5 Humph. 290 ; 42 Am. Dec.
427. If the statute runs against and bars the trustee, it will also bar the
cestui que trust ; Clayton v. Cagle, 97 N. C. 300 ; Williams v. Otey, 8 Humph.
563 ; 47 Am. Dec. 632 ; Bryan v. Weems, 29 Ala. 423. When the possession
of the trustee becomes adverse to the cestui que trust, the statute will begin to
run; Edwards v. University, 1 Dev. & Bat. Eq . 325 ; 30 Am. Dec. 170 ; Speidel
v. Henrici, 120 U. S. 377 ; Bacon v. Rives, 106 U. S. 99 ; Boone v. Chiles,
10 Pet. 177 ; Robinson v. Hook, 4 Mason, 139 ; Hill v . Bailey, 8 Mo. App.
85 ; Davis v. Coburn, 128 Mass. 377 ; Hubbell v . Medbury, 53 N. Y. 98.
" The trusts intended by courts of equity not to be reached by the stat
ute of limitations, are those technical and continuing trusts which are not
at all cognizable at law, but fall within the proper, peculiar, and exclu
sive jurisdiction of this court " ; Kane v. Bloodgood, 7 Johns. Ch. 90 ; 11
Am. Dec. 417. Trustees' right of action may be barred, though the cestui que
trust is an infant, and this also defeats the infant's rights ; Coleman v. Walker,
3 Met. (Ky. ) 65 ; 77 Am. Dec. 163 ; but see Auding v . Davis, 38 Miss. 574 ; 77
Am. Dec. 658. Directors of corporations are not such trustees as are debarred
from setting up the statute ; Baxter v. Moses, 77 Me. 465 ; 52 Am. Rep. 783 .
Statute does not apply to lands held by city in trust for benefit of the public,
where city holds under limited and defined trusts ; City of Alton v. Ill . Transp.
Co. 12 Ill. 38 ; 52 Am. Dec. 479 ; Logan Co. v. Lincoln , 81 Ill. 156. Implied
trusts are barred by lapse of time ; Speidel v . Henrici, 120 U. S. 377 ; they
are not ; Astor v. L'Amoreux, 4 Sandf. 524 ; constructive trusts and all save
purely equitable or express trusts, are subject in equity to the statute of limi
tations ; Wood, Limitations , 2258, 215 ; Prevost v. Gratz , 6 Wheat. 481 ;
1158
CH. XXX. S. 1. ] STATUTE OF LIMITATIONS . *863
Pick. 212 ; Glass v. Gilbert, 58 Pa. St. 266 ; Gay v. Edwards, 30 Miss. 218 ;
Weaver v. Leiman, 52 Md. 710 ; Manion v . Titsworth, 18 B. Mon. 582. Statute
running in favor of a purchaser without notice ; Merriam v. Hassam, 14 Allen,
516 ; when it does not run against a resulting trust ; Dow v. Jewell , 18 N. H.
340 ; when it does ; Brawner v . Staup, 21 Md . 328 ; what determines lapse of
time that will bar ; Dean v. Dean, 9 N. J. Eq. 425 ; Mumford v. Murray, 6
Johns. Ch. 1 ; Halsey v. Tate, 52 Pa . St. 311.
Presumption . - Certain acts are presumed to have been done after a great
lapse of time ; Bass v. Bass, 8 Pick. 187 ; Clemenston v . Williams, 8
Cranch, 72 ; Ashhurst's App. 60 Pa . St. 290 ; Hawkins v. Chapman, 36 Md.
100 ; it is presumed that a trustee holds for the advantage and benefit of his
cestui que trust ; Whiting v. Whiting, 4 Gray, 237 ; Colvin v. Menefee, 11
Gratt. 92.
1160
CH. XXX. S. 1.] STATUTE OF LIMITATIONS . *864
(a) See cases cited p. 886 , infra, (e ) See Scott v. Scott, 18 Jur. 755 ;
note (e). 4 H. L. Cas . 1065.
(b) Crowther v. Crowther, 23 Beav. (ƒ) Blair v. Bromley, 2 Ph. 354 ;
305. But see Quinton v. Frith, 2 I. Rolfe v. Gregory, 11 Jur. N. S. 97 ;
R. Eq. 414. S. C. 4 De G. J. & S. 576 ; Cotterell
(c) See Allen v. Sayer, 2 Vern . 368, v . Purchase, Cas. t. Talbot, 63, per
corrected from R. L. Treat. on Trusts, Lord Talbot ; Medlicott v. O'Donel , 1
3d edit. App. X., and the author's B. & B. 166, per Lord Manners ; Arran
remarks at p. 720 of the same edition ; v. Tyrawly, cited Ib. 170 ; Alden v.
Wych v. East India Company, 3 P. W. Gregory, 2 Eden, 280 ; Morse v . Royal,
309 ; The Earl . Countess of Hunting 12 Ves. 374, per Lord Erskine ; Bick
don, cited Ib. 310, note (G) ; Thomas nell v. Gough, 3 Atk. 558 ; South Sea
v. Thomas, 2 K. & J. 79. Company v. Wymondsell, 3 P. W. 143 ;
(d) See p. 876, infra. Booth v. Warrington, 4 B. P. C. 163 ;
1166
CH. XXX. S. 1.] BAR FROM PRESUMPTION . *869
a right to say, " You shall not bring this matter under dis
cussion at this distance of time ; it is entirely your own
neglect that you did not do so within the period limited by
the statute " (a) .
( 12) . How defendant may take advantage of the statute .
[ The defendant may avail himself of the Statute of Limita
tions, by pleading it himself (b) ; but, if he neglect to do so , ]
he cannot shelter himself under the statute at the time of
the hearing (e) ; though it seems the Court itself may still,
in its own discretion , refuse to grant relief after the limited
period (d).
―――――――――――
(13 ) . In cases of fraud. Even when the plaintiff charges
fraud, the defendant may plead [ the statute ] ( e ) . If the
plaintiff allege that he only discovered the fraud within the
period limited by the statute, the defendant must either
deny the fraud, or insist that the plaintiff had knowledge of
it (f) .
―
II. Bar from presumption . The Court, after great length
of time, will presume some act to have been done , which , if
done, is a bar to the demand (g) .
-
III. Bar from public or private inconvenience. Though
the plaintiff's demand cannot be met by an absolute bar, and
no release of right can be presumed ; yet, thirdly, relief will
not be granted where, if administered, it would lead to great
public or private inconvenience (g) .
―――
(1) . In action for account a settlement may be presumed.
Thus in an action for an account against an executor or
administrator, who is in equity a trustee, and was
formerly not * protected by any statute of limita- [ * 871 ]
tions (a) , though the presumption of a final settle
ment may be rebutted by positive evidence, the Court will
not open the account at any distance of time, when it is
probable that most of the parties are dead, and the vouchers.
and receipts are lost (b) .
(2 ) . Instances of great delay . Where a suit was prose
cuted after a delay of threescore and two years, Lord
Keeper Wright said, that " the cause being now within one
year of the grand climacteric, it was fit it should be at
rest " (e) . But bills have been dismissed at the end of
sidered the length of time to bar the plaintiff's demand ; but in this case the
parties were equitable tenants in common, and as between them the presumption
of ouster did not arise.
1169
* 872 BAR FROM PRESUMPTION. [CH. XXX. S. 1.
(a) 2 Ves. jun. 582, and following (f) Harcourt v. White, 28 Beav.
pages. 303.
(b) See the cases, p. 495, supra. (g) Blair v. Ormond, 1 De G. &
(c) See Gresley v. Mousley, 4 De Sm . 428.
G. & J. 78 ; and the cases there (h) Tatam v. Williams, 3 Hare,
cited ; and Lyddon v. Moss. Ib. 104. 347 ; and see Harcourt v. White , 28
(d) Roberts v. Tunstall, 4 Hare, Beav. 303.
257. (i) Southcomb v. Bishop of Exeter,
(e) Clegg v. Edmondson, 8 De G. 6 Hare, 213 ; Alloway v. Braine, 26
M. & G. 787 ; 3 Jur. N. S. 299 ; Isald Beav. 575 ; Sharp v. Wright, 28 Beav.
v. Fitzgerald, cited Amb. 735, 737 ; 150.
and see Pennell v. Home, 3 Drew. (j) Hope v. Corporation of Glou
337 ; Norris v. Le Neve, 3 Atk. 38 ; cester, 1 Jur. N. S. 320.
Jackson v. Welsh, Ll. & G. Rep. t.
Plunk. 346.
1171
* 873 LAPSE OF TIME---LACHES . [CH. XXX . S. 1.
[ (a) The existence of a trust term , 1 Dru. & Walsh , 668 ; Blair v. Nugent,
the trusts of which never actively 3 Jon. & Lat. 658, 9 Ir. Eq. Rep. 400 ;
arise, and under which possession is Ravenscroft v. Frisby, 2 Coll. 16 ;
never taken, cannot be set up by the Massy v. O'Dell, 10 Ir. Ch . Rep. 22 ;
person entitled subject to the term O'Reilly v. Walsh, 6 I. R. Eq . 555 ;
as an answer to a defence founded and see Dixon v. Gayfere , 17 Beav.
upon the statute ; Twaddle v. Mur 421 ; Mutlow v. Bigg, 18 L. R. Eq.
phy, 8 L. R. Ir. 123. ] 246.
(b) Browne v. Radford, W. N. (d) Petre v. Petre, 1 Drew. 371 .
1874, p . 124. (e) Attorney- General v. Davey, 4
(c) Sturgis v. Morse , 24 Beav. 541, De G. & J. 136 ; Attorney-General v.
3 De G. & J. 1 ; Heenan v. Berry, 2 Payne, 27 Beav. 168.
Jon. & Lat . 303 ; Salter v. Cavanagh,
1176
CH. XXX. S. 1. ] LATE LIMITATION ACTS . * 877
(
ƒ
Hare Attorney-
,)147. General
But see Careyv. v.Flint,
Cuth 4 6 H. L. Cas . 189, see p. 215 ; Life
Association of Scotland v . Siddal, 3
bert, 7 I. R. Eq . 542 ; 9 I. R. Eq . De G. F. & J. 58 ; Shaw v . Keighron,
330.
3 I. R. Eq . 574 ; and see Butler v.
(a) Thompson v. Simp
& War. son , 1 Dru . Carter, 5 L. R. Eq . 276 ; Quinton v.
Magdale 489 ; Attorney-General v. Frith, 2 I. R. Eq. 396.
n College, 18 Beav . 239 , 250 ;
1177
*878 LATE LIMITATION ACTS . [CH. XXX. S. 1.
(b) Knox v. Kelly, Ir. Eq. Rep. Donations v. Wybrants, 2 Jon. & Lat.
279 ; Toft v. Stephenson, 7 Hare, 1 ; 182, 7 Ir. Eq. Rep. 580.
Hodge v. Churchward, 16 Sim. 71 ; (e) Dundas v. Blake, 12 Ir. Eq .
Francis v. Grover, 5 Hare, 39 ; Hughes Rep. 138, and cases there cited . The
v. Kelly, 3 Dru. & War. 482 ; [ Cun 40th section, as from 1st January,
ningham v. Foot, 3 App. Cas . 974 ; ] 1879, has been repealed by 37 & 38
and see Harrison v. Duignan , 2 Dru. Vict. c. 57, s . 9. See the 8th section
& War. 295. of the latter Act.
(c) Dickinson v . Teasdale, 31 Beav. (f) Hunt v. Bateman, 10 Ir. Eq.
511 ; 1 De G. J. & Sm. 52. Rep. 360, and cases there cited ; Wat
(d) Commissioners of Charitable son v. Saul, 1 Giff. 188 ; and see Bur
rowes v. Gore, 6 H. L. Cas. 907.
1180
CH. XXX. S. 1. ] LATE LIMITATION ACTS . *880
enforce the trust against the trustee and any person claiming
through him (e), but both trustee and cestui que trust may be
ousted by the intrusion of a third title, and if so, the statute
will begin to run from the dispossession of the trustee and
cestui que trust. Thus, in 1810, a legal estate was vested in
trustees upon trust for five tenants in common , but from
1819 to the filing of the bill in 1842 , four of the tenants in
common received the rents to the exclusion of their co-tenant
and of the trustees, who never executed their duty ; and it
was held that there had been an ouster of both trustees and
cestui que trust, and that the right of such cestui que trust
was barred by the statute (ƒ) .
[* 881 ] * 18. Possession by one of the cestuis que trust.
A cestui que trust in actual possession is tenant at will
to his trustee (a) , and the 7th section of the Act enacts that
" when any person shall be in possession as tenant at will, the
right of the person entitled subject thereto to make an entry
shall be deemed to have first accrued at the determination
of such tenancy, or at the expiration of one year from the
commencement of such tenancy. Provided that no cestui que
trust shall be deemed to be a tenant at will within the mean
ing of the clause to his trustee." The exception was intro
duced in relief of the trustee that he might not be obliged
to take active steps lest the tenancy at will should be deemed
to have expired, and so the statute should begin to run . In
other words, the tenancy should not be determined at the
end of one year (b) . The statute , therefore, does not run
against the trustee so long as the cestui que trust is in actual
possession. [A mortgagor, where the mortgage debt has
been fully paid but no reconveyance has been made, is
a tenant at will of the mortgagee, but is not a cestui
que trust of the mortgagee within the meaning of the pro
viso, and time therefore runs against the mortgagee, and
profits, the possession is still that of the trustee , and the cestui
que trust is regarded in the light of the bailiff or agent of the
trustee. But it is always a question for the jury, or the
Court sitting as a jury, to say whether the cestui que trust
was in receipt of the rents as bailiff or agent of the trustee,
or was in receipt of the rents as claiming the beneficial owner
ship independently of the trustee . In the former case, the
statute of limitations would not run , but in the latter case it
would (b).
20. Disseisin by cestui que trust. If cestui que trust under
a will hold adverse possession of an estate supposed to pass,
but which did not in fact pass by the will to a trustee and
eventually the true owner is barred , the legal estate gained
by the disseisin vests in the trustee of the will, under colour
of which the possession was taken, and not in the cestui que
trust (c) .
21. 42d section. ―― The 42d section of the Act, limiting
the recovery of arrears of rent or interest to the last six years
only, has no application to cases of express trusts within the
25th section , but the cestui que trust could, prior to the 1st
of January, 1879, have recovered from his trustees the whole
arrearages from the commencement of the title (d) .
[ Subsisting term. ] - And where there was a subsisting
term not barred, upon which the trustee might obtain posses
sion, the whole arrearages [ could, prior to the 1st of January,
1879, have been] recovered (e) .
1 Trustees cannot receive any personal gain nor advantage from the trust,
other than what they may be fairly entitled to as compensation for services,
it being their duty to give the cestuis que trust all the profits, benefits and in
come arising from the estate ; Sloo v. Law, 3 Blatchf. C. C. 457 ; Parshall's
App. 65 Pa. St. 233 ; Van Horne v. Fonda , 5 Johns. Ch . 388. The advantages
of any purchase result to the cestuis que trust ; King v . Cushman, 41 Ill. 31 ;
Quackenbush v. Leonard, 9 Paige, 334 ; Schoonmaker v . Van Wyck, 31 Barb.
457 ; Barksdale v. Finney, 14 Gratt. 338. The trustee must not make any
contract disadvantageous to the cestui que trust, nor receive presents from him ;
Green v . Winter, 1 Johns. Ch . 26 ; Andrews v . Hobson , 23 Ala . 219 ; unless
the dealings are clearly just and fair, the burden of proof being upon the
trustee ; Harrington v. Brown, 5 Pick. 519 ; Jones v. Smith, 33 Miss . 215 ;
Smith v. Isaac, 12 Mo. 106. The testui que trust is entitled to all profits aris
ing from any purchases made by his trustee ; Wiswall v . Stewart, 32 Ala. 433 ;
Mason v. Martin , 4 Md . 124 ; Smith v. Lansing, 22 N. Y. 530 ; Beeson v. Bee
son, 9 Barr, 279 ; if trustees trade or speculate, all the profits inure to the
cestuis que trust, but any losses must be borne by the trustees ; Penman v.
Slocum, 41 N. Y. 53 ; Brown v . Rickets, 4 Johns. Ch. 303 ; Durling r. Ham
mer, 5 C. E. Green, 220 ; Martin v. Raborn, 42 Ala. 648 ; Raynes v. Raynes,
54 N. H. 201. A trustee must account for all profits received by him ; Van
Epps . Van Epps , 9 Paige, 237 ; Richardson v. Spencer, 18 B. Mon. 450 ;
attorneys who are trustees can make no charges for professional services in
addition to their compensation as trustees, though they may employ other
attorneys at the expense of the estate ; Binsse v. Paige, 1 Keyes, 87 ; Morgan
v. Hannas, 49 N. Y. 667 ; but see Perkins's App. 108 Pa. St. 314 ; 56 Am. Rep.
208 ; one reason for this is that a trustee cannot make a contract with himself;
Jenkins v. Fickling, 4 Des. 470 ; Mayer v. Galluchat, 6 Rich. Eq . 2. A trus
1188
CH. XXX . S. 1. ] MESNE RENTS AND PROFITS . *886
tee cannot deny his title ; Von Hurter v. Spengeman, 2 Green, Ch . 185 ; nor
make any claim hostile to his cestui que trust ; Benjamin v. Gill , 45 Ga . 110 .
Trustees must account for all trust property which comes into their possession,
including the income or improvement ; King v. Wise, 43 Cal . 628 ; Carr v.
Houser, 46 Ga. 477. Any losses occurring when the trustee acts with the con
sent, and at the request of cestuis que trust who are sui juris, must be borne by
the estate ; Poole v. Munday, 103 Mass . 174.
1189
*887 MESNE RENTS AND PROFITS . [CH. XXX . S. 1.
(b) See observations of L. J. Tur Bridges, Pr. Ch. 252 ; Owen v. Aprice,
ner, Hicks v. Sallitt, 3 De G. M. & 1 Ch. Rep. 32 ; Anon . case, 1 Vern.
G. 816. 105, contradicted 3 Atk. 129.
(c) Stackpoole v. Davoren, 1 B. (i) Mundy v. Mundy, 2 Ves. jun.
P. C. 9. 122 ; D'Arcy v. Blake, 2 Sch. & Lef.
(d) Howell v. Howell, 2 M. & 387 ; Wild v. Wells, 1 Dick . 3 ; Meg
Cr. 478 . got v. Meggot, 2 Id . 794 ; Goodenough
(e) Macartney v. Blackwood, Ridg. v. Goodenough, 2 Id . 795 ; Curtis v.
Lapp. & Sch. 602. Curtis, 2 B. C. C. 620 ; Moor v. Black,
(f) Vandebende v. Levingston, 3 Cas. t. Talbot, 126 ; and see Dormer
Sw. 625. v. Fortescue, 3 Atk. 130 ; Pulteney v.
(9) Hall . Coventry, 2 Ch . Ca. Warren, 6 Ves. 89 ; Agar v. Fairfax,
134 ; Wright v. Chard, 4 Drew. 673. 17 Ves. 552.
(h) Barnewall v. Barnewall, 3 Ridg. (j) See Dormer v. Fortescue, 3
P. C. 66. See also Dormer v. Atk. 130 , 134 ; S. C. Ridg. Rep. t.
Fortescue, 3 Atk. 130 ; Tilly v. Hardwicke, 183, 191 ; Pulteney v.
1195
*891 MESNE RENTS AND PROFITS . [CH. XXX . S. 1 .
66
was disallowed (c) ; for " An abuse of trust," said Lord Ellen
borough, " can confer no rights on the party abusing it, nor
on those who claim in privity with him ” (d) .
2. 66 Money has no earmark." - Bank notes and negotiable
bills . It was said by Lord King that " money had no earmark,
insomuch that if a receiver of rents should lay out all the
money in the purchase of land, or if an executor should
realise all his testator's estate, and afterwards die insolvent,
yet a Court of equity could not charge or follow the
land " (e) ; and bank notes and negotiable bills, have been rep
resented as possessing the same quality. But the notion
seems to have originated from some misconception , and can
not be supported . Lord Mansfield observed, " It has been
quaintly said that the reason why money cannot be
[ * 893 ] * followed is because it has no earmark, but this is
not true. The true reason is upon account of the cur
rency of it - it cannot be recovered after it has passed in
currency. Thus, in the case of money stolen , the true
owner cannot recover it after it has been paid away fairly
and honestly upon a valuable and bona fide consideration :
but before the money has passed in currency an action may
be brought for the money itself. Apply this to the case of
a bank note — an action may lie against the finder, it is true,
but not after it has been paid away in currency " (a) . And
Lord Ellenborough observed, " The dictum that money has no
earmark must be understood as predicated only of an undi
vided and undistinguishable mass of current money ; but
money kept in a bag, or otherwise kept apart from other
(c) The same point has been viewed Joyce, 1 Jon. & Lat. 401 ; Trench v.
as not maintainable in several previous Harrison, 17 Sim . 111 ; Harford r.
cases, as in Whitecomb v. Jacob, 1 Lloyd, 20 Beav. 310 ; Frith v. Cart
Salk. 160 ; Lane v. Dighton, Amb. 409 ; land, 2 H. & M. 417.
Ryal v. Ryal, Ib. 413 ; Balgney v. (d) Taylor v. Plumer, 3 M. & S.
Hamilton, Ib. 414. N. B. Wilson v. 574.
Foreman, 2 Dick. 593 , is misreported ; (e) Deg v. Deg, 2 P. W. 414 ; and
see Lench v. Lench, 10 Ves, 519. The so his Lordship seems to have decided
subsequent cases are Lord Chedworth in Cox v. Bateman, 2 Ves. 19 ; and
v. Edwards, 8 Ves . 46 ; Greatley v. see Waite v. Whorwood, 2 Atk. 159 ;
Noble, 3 Mad. 79 ; Buckeridge v. Whitecomb r. Jacob, 1 Salk. 160.
Glasse, Cr. & Ph . 126 ; Murray e. Pink (a ) Miller v. Race, 1 Burr. 457,
ett, 12 Cl. & Fin. 784 ; Sheridan v. 459.
1198
CH. XXX. S. 2. ] THE TRUST PROPERTY. *894
(a) Lane v. Dighton, Amb. 409 ; Knight Bruce, p. 381 , are well worth
Lewis v. Madocks , 17 Ves. 57, 58 ; a careful perusal. [Re Hallett's
Price v. Blakemore, 6 Beav. 507 ; Estate, 13 Ch . D. 696 ; Birt v . Burt,
Hopper v. Conyers, 2 L. R. Eq. 549 . 11 Ch. D. 773, note ; and see Ex
(b) See Pennell v. Deffell , 4 De G. parte Hardcastle, 44 L. T. N. S. 523 ;
M. & G. 382 ; Ex parte Sayers, 5 Ves. 29 W. R. 615, where the case failed
169 ; Ernest v. Croysdill, 2 De G. F. on the identification of the trust
& J. 175 ; Frith v. Cartland, 2 H. & funds. ]
M. 417 ; [ Re Hallett's Estate, 13 Ch. [(e) Re Hallett's Estate, 13 Ch. D.
D. 696. ] 696, where the earlier cases are dis
(c) See pp. 277, 278, supra. cussed ; Birt v. Burt, 11 Ch. D. 773,
(d) Pennell v. Deffell , 4 De G. M. note.]
& G. 372. The observations of L. J.
1200
CH. XXX . S. 2. ] THE TRUST PROPERTY. *895
cific purpose and not applying it for the purpose for which it
was advanced (f) . It was formerly held that ] as against the
cestui que trust the general rule must prevail that the
sums drawn out must be attributed to the earliest [ * 895 ]
deposits, according to the order in which they were
paid in ( a) ; [ but, where the question is only between the
cestui que trust and the trustee, the rule has been modified,
and so long as the trustee has monies of his own standing to
the account, drawings by him for his private purposes will
be attributed to his private monies, leaving the trust monies
intact (b) . This follows from the general principle that
where a man does an act which may be rightfully performed,
he cannot say that that act was intentionally, and in fact,
done wrongly ; so far as possible the honest intention of
drawing out his own money must be attributed to the
trustee . Where, however, the trustee has exhausted his
own monies, and the account at the bank is composed of
monies belonging to different trusts, the general rule will
prevail, and the sums drawn out will, in the absence of
evidence to the contrary, be attributed to the earliest de
posits (c) . ] If trust money be paid into a bank to an ac
count headed in such a way that the banker cannot fail to
know, and must be taken to know that it was a trust account,
though the bankers are not bound to enquire into the pro
priety of the trustee's cheques upon that account, yet if the
trustee becomes bankrupt and has overdrawn his private
account, the bank cannot apply the credit of the trust account
by way of set-off against the debit of the private account (d) .
[But where a banking company were employed as agents to
collect money and to remit it to their employers, and they
received the money in cash and placed it with the other cash
of the bank, and informed their employers that the money
(g) Lench v. Lench, 10 Ves . 517 ; 507 ; Mathias v. Mathias, 3 Sim. & G.
Hopper v. Conyers, 2 L. R. Eq. 549. 525.
(h) Sealy v. Stawell, 2 I. R. Eq. (j) Perry v. Phelips, 4 Ves. 108,
326. see 113, 117.
(i) See Anon. case, Sel. Ch. Ca. (k) Denton v. Davies , 18 Ves. 499.
57 ; Price v. Blakemore, 6 Beav. (1) 8 Ves. 150 ; S. C. 17 Ves . 48.
1203
*897 CONVERSION OF TRUST PROPERTY . [CH. XXX. S. 2.
land for the trust money and interest (a ) ; but where the
entire land is clearly the fruit of the trust fund, the cestuis
que trust must upon principle have a right to take the land
itself, whether the purchase was or not of the description
authorised by the trust (b).
[11. Trustee may follow trust money though he has concurred
in breach. ――― A trustee, who has himself concurred in a breach
of trust whereby the trust estate has been improperly spent
upon buildings upon his co-trustee's property, may, notwith
standing such concurrence , take proceedings against his co
trustee to follow the trust property ( c) . ]
12. Statute of Limitations . ― Where trust money is fol
lowed into the hands of a person who, as having received it
by collusion, or with express notice of the trust, becomes
himself a trustee, he is precluded from pleading the Statute
of Limitations (d) .
[ 13. Repayment of trust money not a fraudulent preference.
- It is not a fraudulent preference on the part of a trustee
who has misappropriated trust money to make it good on the
eve of bankruptcy (e) .
14. Money obtained by fraud cannot be followed into the
hands of persons who take it in satisfaction of a bona fide
debt without notice (f). ]
(a) 24 & 25 Vict . c . 96, ss . 80, 86, Vict. c. 54, which had been repealed
re-enacting substantially 20 & 21 by 24 & 25 Vict. c. 94.
1 If the trustee has been guilty of a breach, the cestui que trust may proceed
against him personally, especially if the trust property cannot be traced ;
Roberts v. Mansfield, 38 Ga . 452 ; Freeman v. Cook, 6 Ired . Eq . 379 ; Calhoun
v. Burnett, 40 Miss . 599 ; Flagg v. Mann , 3 Sumn. 86 ; it may be that the
cestui que trust must elect whether he will proceed against the person or
the property ; Baker v. Disbrow, 18 Hun , 29 ; Barker v. Barker, 14 Wis. 131 ;
the cestui que trust may have an action at law against his trustee, if the latter
has been guilty of neglect ; Bennett v. Preston , 17 Ind . 291 ; likewise after an
accounting, though not before, for the balance ; Hall v . Harris , 13 Ired . Eq.
289 ; Prescott v. Ward, 10 Allen, 203 ; Dias v . Brunell , 24 Wend. 9 ; Under
hill v . Morgan, 33 Conn. 105 ; Penobscot R. R. Co. v. Mayo , 60 Me. 306 ; ordi
narily a resort should be had to equity, unless, as above, there is some legal
cause of action , Brooks v. Brooks, 11 Cush. 18 ; Dorsey v. Garey, 30 Md .
489 ; Hearne v. Hearne , 55 Me. 445 ; Hukill v . Page, 6 Biss. 183 ; Peabody v.
Harvard Coll. 10 Gray, 283. A legal action is proper to compel the payment
of money due ; Farrelly v. Ladd, 10 Allen, 127 ; Baker v. Biddle, Bald . 394 ;
Catlin v. Birchard , 13 Mich. 110. If a trustee sells at the wrong time, he is
liable for the most the estate could sell for ; Melick v. Voorhees, 24 N. J. Eq.
305 ; if a trustee sell, the cestui que trust may compel him to buy property
equivalent in value ; Norman v. Cunningham, 5 Gratt. 72 ; Freeman v. Cook,
6 Ired . Eq . 375 ; or to make the value of it as estimated when a bill was filed
against him ; Hart v. Ten Eyck, 2 Johns. Ch . 62 ; or the value at the time of
1205
*898 REMEDY FOR BREACH OF TRUST. [CH. XXX . S. 3.
alone exist, but is one to be dealt Dunne v. Doran, 13 Ir. Eq. Rep. 545 ;
with on the equitable relation of Brereton v. Hutchinson, 3 Ir. Ch. Rep.
trustee and cestui que trust."] 361 ; Carroll v. Hargrave, 5 I. R. Eq.
[(c ) Re Flitcroft's case, 21 Ch. D. 123.
519.] (f) Philips v. Pennefather, 8 I. R.
(d) Woodhouse v. Woodhouse , 8 Eq. 486, per Sir Jos. Napier, C. S.
L. R. Eq. 514 ; see p. 521 . [(g) Metropolitan Bank v. Heiron,
(e) Story v. Gape, 2 Jur. N. S. 5 Ex. D. 319. ]
706 ; Obee v. Bishop, 1 De G. F. & J. (a) See ante, p. 885.
137 ; Brittlebank v. Goodwin, 5 L. R. (b) Eager v. Barnes, 31 Beav. 579.
Eq. 545. But see the Irish cases ,
1210
CH. XXX . S 3. ] REMEDY FOR BREACH OF TRUST . *902
S. C. Id. 235 ; and see ante, pp. 335 , monies secured by a policy can be
336. created in favour of a mere stranger,
(a) Fenwick v . Greenwell , 10 Beav. or a part owner by payment of pre
412. miums are the following : 1. By con
[(b) Cleary v. Fitzgerald, 7 L. R. tract with the beneficial owner of the
Ir. 229. ] property. 2. By reason of the right
(c) Devaynes v. Robinson, 24 of trustees to an indemnity out of
Beav. 86 ; Sculthorpe v. Tipper, 13 their trust property for money ex
L. R. Eq . 232. pended by them in its preservation.
(d) Marriott v. Kinnersley, Taml. 3. By subrogation to this right of
470. trustees of some person who has at
(e) Now so decided, Hobday v. their request advanced money for the
Peters (No. 3) , 28 Beav. 603. preservation of the property. 4. By
(f) Clack v. Holland, 19 Beav. reason of the right of a mortgagee to
273, 276, per Cur.; Ke . Layton's add to his charge any money paid by
Policy, W. N. 1873, p. 49 : and see him to preserve the property ; Re
Johnson v. Swire, 3 Giff. 194 ; Todd Leslie, 23 Ch . D. 552. ]
v. Moorhouse, 19 L. R. Eq. 69. [The (g) Hill v. Trenery, 23 Beav. 16 ;
only cases in which a lien upon the Beresford v. Beresford, Ib. 292.
1212
CH. XXX. S. 3. ] REMEDY FOR BREACH OF TRUST . * 904
(h) Kingdon
J.N. S. Ch. 448. ]v. Castleman , 46 L. (b) As to what particulars are
(a ) Nant-y-G and Blaina Iron within the operation of the clause,
wo[
rks Company lo v. Grave , 12 Ch . D. see [ 46 & 47 Vict. c. 52, s. 44 ; and
738.] ante, p . 242.]
(c) Macnamara v. Carey, 1 Ir.
Rep. Eq. 9.
1213
*905 REMEDY FOR BREACH OF TRUST. [CH. XXX. S. 3.
(c) Clough v. Bond, 3 M. & Cr. (b) Palmer v. Jones, 1 Vern. 144.
496. (c) Harnard v. Webster, Sel. Ch.
(d) Wiles v. Gresham, 2 Drew. Ca. 53.
258 ; see p. 271. (d) Pybus v. Smith, 1 Ves. jun.
(a ) Dimes v. Scott, 4 Russ. 195 ; 193, per Lord Thurlow ; Palmer v.
and see Fletcher v. Green, 33 Beav. Jones, 1 Vern. 144, per Lord Notting
426. ham.
1218
CH. XXX. S. 3.] REMEDY FOR BREACH OF TRUST. *909
(d) Trafford v. Boehm , 3 Atk. 440 ; Rep. 351 ; Bently v. Robinson, 9 Ir.
Greenwood v. Wakeford, 1 Beav. 580 ; Ch. Rep. 479 ; and see Walsham v .
Booth v. Booth, 1 Beav. 125 ; Lord Stainton, 1 H. & M. 337 ; [ Butler
Montfort . Lord Cadogan, 17 Ves. v. Butler, 5 Ch. D. 554 ; 7 Ch . D.
485 ; 19 Ves . 635 ; S. C. 2 Mer. 3 ; 116. ]
Birks v. Micklethwait, 33 Beav. 409 ; (b) Jacubs v. Rylance, 17 L. R.
and see Howe v. Earl of Dartmouth, Eq . 341 .
7 Ves. 150 , 151 ; Jacob v. Lucas, 1 (c) Woodyatt v. Gresley, 8 Sim.
Beav. 436 ; Lincoln v. Wright, 4 Beav. 183 ; Ex parte Mitford, 1 B. C. C.
432 ; Tickner v. Old , 18 L. R. Eq. 398 ; see Priddy v. Rose, 3 Mer. 105 ;
422 ; Vaughan v. Vanderstegen, 2 Burridge v. Row, 1 Y. & C. C. C. 183,
Drew. 165, 363 ; Hobday v . Peters 583 ; Lincoln v. Wright, 4 Beav. 432,
(No. 2) , 28 Beav. 354 ; Fetherstone per Lord Langdale ; Fuller v . Knight,
v. West, 6 I. R. Eq . 86. 6 Beav. 205 ; M'Gachen v . Dew, 15
(e) 7 De G. M. & G. 108. Beav . 84 ; Vaughton v. Noble , 30
(a ) Brown v. Maunsell, 5 Ir. Ch. Beav. 34.
1222
CH. XXX . S. 3. ] REMEDY FOR BREACH OF TRUST. *912
was a debtor to the testator, the debt was a lien on the devised
estate, but the Court not finding any precedent did not allow
the claim (b).
38. Bankruptcy of the trustee . If the trustee become
bankrupt, the loss may be proved against his estate ( c) ,
and without proceeding in equity to establish the breach
of trust ( d) , and if interest would have been decreed in
equity against the trustee himself, it will constitute part of
the debt in the proof against his estate in the hands of his
trustee in bankruptcy (e) , and if the breach of trust was a
sale of stock, the cestui que trust may, at his option, prove for
the proceeds of the sale , or for the value of the stock at the
date of the bankruptcy (ƒ) , and if the bankrupt be a debtor
to the trust, and entitled himself to a reversionary interest
in the debt, the trustee may nevertheless prove for the whole
debt, without any set-off for the reversionary interest (g) .
And if a trustee prove for the whole debt he may still retain
any beneficial interest of the bankrupt in the trust estate by
way of lien or set-off in further discharge of the debt (h) ,
[ for the trustee cannot be allowed by an act of this kind to
prejudice the cestuis que trust (i ) . ] But if an executor who
benefit of the mortgage also (d) : and if the trust money had
been invested, but improperly, the cestui que trust has a right
to elect to prove for the money and interest, or for the value
of the securities and profits (e) .
41. Trustee not a partner and lending money to the firm or
the partners . - If the trustee was not one of the firm, but he
lent the trust fund to the bankrupt firm, proof can be made
as for an ordinary debt against the joint estate . If the trus
tee lent the money, not to the firm, but to one of the members
of the firm, and the partners had no notice of the source
from which it came, proof can only be made against the
separate estate of the partner who received, though the
money may, in fact, have been applied to partnership pur
poses (f) . But if the other partners had notice of the
source of the money, proof can be made against the joint
estate of the firm (g) , but not, it seems, against the separate
estate of each partner (h) , unless the firm by their dealings
with the cestuis que trust constituted themselves trustees
directly for them (i) . Nor can proof be made on
[ * 914 ] * the mere ground of notice for the profits made by
the use of the money, for the partners in the firm are
regarded not as actual but only as constructive trustees, that
is, having notice of the trust they are accountable for the
money, but not being clothed with any special duty, they do
not come within the rule that " a trustee shall not profit by
his trust " (a).
42. Apportionment between tenant for life and remaindermen
of amount recovered from bankrupt trustee. -It was held by
Lord Romilly, M. R. , that where a trustee had proved against
a bankrupt's estate for 69857. 19s. 7d. principal money made
away with by the bankrupt, and for 27447. 98. 11d. interest
(which should have been paid to the tenant for life ) , making
together a sum total of 97301. 98. 6d., all dividends received
under the bankruptcy should first make up the lost capital,
and that the tenant for life had no lien for his lost income ,
but was entitled only to the interest of the capital sums
received by way of dividend under the bankruptcy (b) .
The natural course would have been to apportion the fund
as between the tenant for life and remaindermen according
to their respective losses, as otherwise it would work occa
sionally a great hardship . Suppose for instance the tenant
for life, though entitled for the last ten years, had received
nothing and then died before the dividend was paid. The
whole would go to the remainderman, and the executor of
the tenant for life would receive nothing, though a large
part of the dividend was recovered in respect of the life
estate (c) .
Since these remarks were written, the case has in effect
been overruled. In Cox v. Cox ( d) , A. covenanted on his
marriage that his executors, within three months after his
death should pay to the trustees a sum of 60007. with inter
est, from his death, at 4 per cent. , to be held in trust for his
widow for life, with remainder to the children . A. died in
1862, and his estate was administered by the Court. The
assets were insufficient to satisfy the principal and interest,
and the question was, how the amount recovered was to be
dealt with as between the tenant for life and the remainder
men, and V. C. Sir W. James said , " The true principle in
all these cases is, that neither the tenant for life nor the
remainderman is to gain an advantage over the other, neither
is to suffer more damage in proportion to his estate and in
terest than the other suffers from the default of the obligor.
Assuming that 55007. is the sum that will be recov
ered, a calculation must be made back. * What [*915]
principal, if invested on the day of the obligor's
I. Of concurrence.
1. Concurrence of the cestui que trust in the breach of trust.
-
— If a cestui que trust concur in the breach of trust he is for
ever estopped from proceeding against the trustee for the
consequences of the act (e) , and à fortiori a cestui que trust,
who is also a trustee , cannot hold his co-trustee responsible.
for any act in which they both joined (d) .
2. Ignorance. ― But persons cannot be held to have con
curred in a breach of trust who had not the means of know
ing that the acts to which they were parties involved a breach
of trust (e) .
3. Femes covert and infants cannot concur. ――――― And persons
cannot concur in a breach of trust, who, as femes covert (ƒ)
French, 2 Atk. 243 ; Needler's case, hill v . Cahill, 8 App . Cas . 437 ; see S.
Hob. 225 ; Lench v. Lench, 10 Ves. 517, C. nom. Cahill v. Martin, 5 L. R. Ir.
per Sir W. Grant ; Lord Montford v. 227 ; 7 L. R. Ir. 361. ]
Lord Cadogan, 19 Ves. 639, 640, per (b) See the cases at note (h) p. 39,
Lord Eldon ; and see Parkes v. White, supra.
11 Ves . 221 ; Bateman v . Davis , 3 (c) See ante, p. 759.
Mad. 98 ; Cresswell v. Dewell, 4 Giff. (d) Keays v. Lane, 3 I. R. Eq . 8,
460. per Cur.
(g) See supra, pp. 37, 39 ; and Wil (e) Whistler v. Newman, 4 Ves.
kinson v. Parry, 4 Russ. 276. 129 ; Hughes v. Wells , 9 Hare , 773 ;
(a ) Ryder v. Bickerton, cited and see Walker v. Shore , 19 Ves.
Walker v. Symonds, 3 Sw. 82, per 393.
Lord Hardwicke ; and see Savage v. (ƒ) Cocker v. Quayle, 1 R. & M.
Foster, 9 Mod . 35 ; Lord Montford v. 535 ; Walrond v. Walrond , Johns. 24 ;
Lord Cadogan, 19 Ves. 640 ; Vande Leedham v. Chawner, 4 K. & J. 465 ;
bende v. Levingston, 3 Sw . 625 ; Evans Clive v. Carew, 1 J. & H. 199 ; Pem
v. Bicknell, 6 Ves . 181 ; Jones v. Kear berton v. McGill, 8 W. R. 290 ; Fletcher
ney, 1 Dru. & War. 166 ; Davies v. v. Green, 33 Beav. 426 ; Arnold v .
Hodgson, 25 Beav. 187 ; Sharpe v. Woodhams, 16 L. R. Eq. 29 ; [ Stanley
Foy, 4 L. R. Ch. App. 35 ; Re Lush's v. Stanley, 7 Ch . D. 589 ; Heath v.
Trusts, 4 L. R. Ch . App . 591 ; Green Wickham, 3 L. R. Ir. 376 ; 5 L. R. Ir.
v. Lyon, 21 W. R. 695, reversed on 285 ; ] and see Wilton v. Hill, 25 L. J.
the facts, Ib. 830 ; Arnold v. Wood N. S. Ch. 156 ; Derbishire v. Home, 3
hams, 16 L. R. Eq . 33, per Cur.; [ Ca De G. M. & G. 102 , 113.
1233
*920 CONCURRENCE IN BREACH OF TRUST. [CH. XXX . S. 3.
II. Of acquiescence.¹
1. Acquiescence of cestui que trust. - Again, a cestui que
trust, though he did not concur at the time, may debar him
self from relief by having acquiesced (c) in the breach of
trust subsequently (d) .
2. Whether mere knowledge and abstinence from suing a bar
in cases of breach of trust. - How far the mere knowledge of
a right to sue in respect of a breach of trust, and the abstain
¹ Acquiescence may prevent a cestui que trust from obtaining relief ; Villines
v. Norfleet, 2 Dev . Eq. 167 ; but there can be no technical acquiescence unless
the cestui que trust actually knows of the breach ; Beeson v. Beeson, 9 Barr,
300 ; Prevost v. Gratz, 6 Wheat. 487 ; and has possession of all the facts ;
Briers v. Hackney, 6 Ga . 419 ; Shartel's App. 64 Pa. St. 25 ; Maul v . Rider, 51
Pa . St. 377. The cestui que trust should have suitable advisors, especially if
1237
*923 ACQUIESCENCE IN BREACH OF TRUST . [ CH. XXX . S. 3.
he has but recently become sui juris ; Kirby v. Taylor, 6 Johns. Ch. 242 ;
Williams v. Powell, 1 Ired . Eq. 460 ; Waller v. Armistead, 2 Leigh, 11. Cred
itors may, on legal grounds, have their claims secured ; Iddings v. Bruen , 4
Sandf. Ch . 223 ; but the cestui que trust, who is sui juris , is the only one who
can concur or acquiesce in, or waive a breach of trust ; North Carolina R. R.
Co. v. Wilson, 81 N. C. 223 ; Wilson v. Troup, 2 Cow. 195.
1238
CH. XXX . S. 3.] ACQUIESCENCE IN BREACH OF TRUST. *924
* SECTION IV . [ * 927 ]
(k) Re Royston Free Grammar Charity, Jan. 26, 1849, before the V.
School, 2 Beav. 228 ; Re Berkham C. of England ( the case of a willing
stead Free School, 2 V. & B. 134 ; purchaser) ; Suir Island Female
Re Shrewsbury Grammar School , 1 Charity School , 3 Jon. & Lat. 171 .
Mac. & G. 324 ; 1 Hall & Tw. 401 . As to the jurisdiction of the Court
(1) Attorney-General v. Bishop of generally to sell charity lands, see
Worcester, 9 Hare, 328. supra, p. 539.
(m) Bignold v . Springfield , 7 Cl. & (c) Re Manchester New College,
Fin. 71 . 16 Beav. 610.
(a) Re West Ham Charities, 2 De (d) Corporation of Ludlow v .
G. & Sm. 218. Greenhouse, 1 Bligh, N. S. 51 , 52, 82,
(b) Re Parke's Charity, 12 Sim. per Lord Redesdale ; Ex parte Skin
329 ; Re Ashton Charity, 22 Beav. ner, 2 Mer. 456, per Lord Eldon .
288 ; Re Overseers of Ecclesall , 16 (e) Attorney-General v. Green, 1
Beav. 297 ; and see Re Lyfford's J. & W. 305.
Charity, Ib. note ; Re Alderman New (f) Re Dovenby Hospital, 1 M. &
ton's Charity , 12 Jur. 1011 ( the case Cr. 279.
of an exchange) ; Re Sowerby's
1247
*931 SIR S. ROMILLY'S ACT. [CH. XXX. S. 4.
[ (e ) The words suit or other pro Gregg, 21 Ch. D. 513 ; and see At
ceeding do not include an action at torney-General v. Sidney Sussex Col
law. Thus, the sanction of the lege, 15 W. R. 162 , 21 Ch. D. 514,
Charity Commissioners was held not note. The authority of the Com
to be requisite, where the Governors missioners must be given formally in
of an Endowed School commenced the manner directed by the Act, and
an action against the master to re a letter signed by the secretary of
strain him from presenting himself the board stating that "they were
at the school, or continuing to occupy prepared to issue their certificate
the schoolhouse, on the ground that authorising the proceedings ; " that
he had never been properly appointed " any difficulty in the application to
to the mastership, was unfit to fulfil the Court would probably be obviated
its duties, and had been removed by by the production of the letter," and
a resolution of the Governors, Holme that "the certificate would be pre
v. Guy, 5 Ch. D. 901. But they in pared and issued in due course," was
clude a mandamus to compel the held by Frye, J., in a pressing case
rendering of proper accounts ; At of an application for an injunction
torney-General v. Dean and Canons to be insufficient ; Thomas . Har
of Manchester, 18 Ch. D. 596. As to ford , 48 L. T. N. S. 262. ]
what cases fall within the section , (g) Re Markwell's Legacy, 17
see Brittain v. Overton, 25 Ch . D. 41 , Beav. 618 ; In re Skeetes, 1 Jur. N. S.
n.; Benthall v. Earl of Kilmorey, 25 1037 .
Ch. D. 39. ] (h) Re London, Brighton and
[ (f) But this provision does not South Coast Railway Company, 18
apply to the Charities exempted from Beav. 608.
the Act by sect. 62 ; or to Places of (i) Re Lister's Hospital, 6 De G.
Religious Worship falling under sect. M. & G. 184 ; Re St. Giles and St.
9, of 18 & 19 Vict. c. 81 , Glen v . George, Bloomsbury, 25 Beav. 313 ;
1250
CH. XXX. S. 4.] CHARITABLE TRUSTS ACTS . *933
Braun
d v . Earl of Devon , 3 L. R. Ch.
App. 800 ; [Re Will Drew. 324 ; both, however, decided
iam of Kyngeston
Charit , 30 W. R. 78. ] previously to the appeal decisions in
y p. 932, note (i) .
(a ) Re Jarvis's Chari , 1 Dr. &
Sın. 97 ; ty (b) See pp. 540, 547, supra, for
2 D r e a s R B
w. 2n8d3 ; Ree Feord'nsglCehyarSicho,ol3,
e i powers of sale, leasing, &c. given by
ty the Acts.
1251
*934 ACCOUNT OF MESNE RENTS [CH. XXX. S. 4.
(c) See 16 & 17 Vict. c. 137, s . 28. pany, 1 Mer. 498, per Sir W. Grant ;
(d) Ib. s. 32. see Incorporated Society v. Richards,
(a) As to the effect of the 5th 1 Conn. & Laws. 58 ; 1 Dru. & War.
section, see Re Hackney Charities, 34 258.
L. J. N. S. Ch . 169 ; Re Burnham (c) Anon. case , 2 Eq . Ca. Ab. 12,
National Schools, 17 L. R. Eq. 241 . pl. 20 ; Love v. Eade, Rep. t. Finch,
(b) Attorney-General v. Mayor of 269.
Exeter, Jac. 448, per Sir T. Plumer ; (d) See cases in note (b).
Attorney-General v. Brewers' Com (e) See p. 884, ante.
1252
CH. XXX . S. 4. ] IN CHARITY CASES . *935
SECTION I.
(a) Walker v. Denne, 2 Ves. jun. 29, per Sir J. Leach ; Earl of Buck
183, per Lord Loughborough ; Foone ingham v. Drury, 2 Eden , 65, per
v. Blount, Cowp. 467 , per Lord Mans Lord Hardwicke ; Guidot v . Guidot,
field ; Holland v. Hughes, 16 Ves. 3 Atk. 256, per Lord Hardwicke ;
114, per Sir W. Grant ; Gaskell v. Crabtree v. Bramble, Ib. 687, per
Harman, 11 Ves. 507 , per Lord El eundem ; Trafford v . Boehm, Ib. 446,
don ; Stead v. Newdigate, 2 Mer. 530, per eundem ; Astley v . Earl of Essex,
per Sir W. Grant ; Pulteney v. Darl 6 L. R. Ch. App. 898 ; & c.
ington, 1 B. C. C. 237 , per Lord Thur (b) Philips v. Brydges, 3 Ves . 127,
low ; Burgess v. Wheate, 1 Eden, 186, per Lord Alvanley ; Earlom v. Saun
per Sir T. Clarke ; Lechmere v. Earl ders, Amb. 242, per Lord Hardwicke ;
of Carlisle, 3 P. W. 215, per Sir J. Selby v . Alston, 3 Ves. 341, per Sir
Jekyll ; Fitzgerald v. Jervoise , 5 Mad. R. P. Arden.
1257
*939 CONVERSION OF MONEY INTO LAND . [CH. XXXI . S. 1 .
county of 1 or elsewh
ere (b), though in the latter case it
was very plausibly contended , that the testator could not
have referred to money , but must have alluded to something
that possessed a local character . [ But where the money is
subjec to a genera powe of appo tment by will, and there
t l r in
is no intermediate interest in any person who after the death
of the donee of the power would have a right to call for its
investment in land, and the donee has shown an intention in
his lifetime to make the money personal estate so far as he
can , it will pass under a general bequest by the donee of all
his personal estate (e) . ]
8. Is subject to judgments. ―― So money to be converted
into land was bound by a judgment (d) , and was never
accounted personal assets, and therefore was not until the
late Act (e) , liable to the payment of simple contract
debts (f).
9. Orphanage share. - So a gift by a parent (a freeman of
the city of London ) to a child, of money to be laid out in land
was considered a purchase by the father and a donation of the
estate, and consequently, under the law existing before the
late Act (g) , the child was not bound, before receiving his
orphanage share, to bring the purchase into hotch-pot (h) .
10. In what cases money to be laid out on land goes to the
______
heir. With respect to the heir of the person upon whom
the lands, when purchased, are directed or agreed to be set
tled, it is necessary, for ascertaining his rights, to distinguish
between the cases where the real representative claims as
against a stranger, and where he claims as against the exec
utor of his own ancestor.
the 31st December, 1881 , the land de [(c) But since the recent Act the
volves upon the executor.] estate in the hands of the heir will be
[ (b) Now by 44 & 45 Vict. c. 41 , s . subject to the repayment to the exec
4, where the death has occurred since utor of the purchase-money paid by
the 31st December, 1881 , if the con him ; 40 & 41 Vict. c. 34 ; Re Cock
tract is enforceable against the heir croft, 24 Ch. D. 94. ]
or devisee of the vendor, his personal (d) Lechmere v. Lechmere, Cas. t.
representatives can convey the land Talb. 90.
for the purpose of giving effect to the (a) Wheldale v. Partridge, 8 Ves.
contract ; and see also sect . 30. ] 235.
1264
CH. XXXI. S. 1.] CONVERSION OF MONEY INTO LAND. * 944 .
16. Conversion at " the request " or " with the consent " of a
party. - And, where the uses are thus exclusively applicable
to real estate, the direction or agreement will be regarded as
imperative though the settlement require the purchase to be
made at the request of a person ( e) , for the insertion of such
a clause has been taken to mean, not that a conversion may
not be effected before but that it shall certainly be effected
after request (d) . And the construction is the same, though
the purchase be directed to be made with a person's consent
and approbation (e) ; for upon a convenient purchase being
proposed, the Court, said Sir J. Jekyll , will take upon itself
to judge thereof, and, without some reasonable objection
made, will order the money to be laid out in it, so that such
a proviso seems to be immaterial, and as if omitted (f) . But
of course the instrument may be so strongly expressed as to
show the intention of the parties, that the request or consent
of a particular person should be a substantial ingredient, and
that no conversion should take place unless it is given (g) .
[In all these cases the real question is whether it appears
from the whole tenor of the instrument that the intention
was that the personalty should be converted into realty, and
where such an intention appears a trust for conversion may
be implied (h) . But a mere gift of personalty with limita
tions appropriate to real estate, a great part of which limita
tions must necessarily fail as soon as the personalty vests in
any one who, if it had been real estate, would have taken an
estate tail, does not raise an implied trust for conversion into
realty (i) . ]
been actually made before the felon had worked out his pun
ishment, the Crown was entitled (e) . But if the felon had
worked out his punishment before the time of sale had
arrived, there, as the Crown had no equity to compel the
conversion, the discharged felon and not the Crown was
entitled ( d ) . Money paid into Court as representing land
taken under the provisions of an Act of Parliament and
liable to be laid out again in the purchase of land retained ,
as against the Crown, its character of real estate, and was
therefore not forfeitable on conviction for felony (e).
22. Proceeds cannot be bequeathed to a charity . - It was at
one time held that if real estate was stamped with a trust
for conversion , and a portion of the proceeds of sale was
given to A., and A. died having by his will given his personal
estate to charity, his interest in the proceeds of sale was to
be regarded as pure personal estate, and the bequest
was good (f) ; but this doctrine has since been [ * 951 ]
overruled (a). And where a testator gave to A. a
legacy 30007., payable out of the testator's personal estate,
and the proceeds from the sale of his real estate , and A.
bequeathed the 30007. to a charity, it was ruled that the
whole bequest was void, and that the charity was not entitled
to claim so much of the 30007. as on an apportionment of
the original testator's real and personal estate would be
found payable out of the pure personalty (b) ; [ but in a
subsequent case, where a testator gave a share of his re
siduary personal estate to charity, and the residuary estate
consisted of pure personalty, and of a legacy from another
testator payable out of the proceeds of his real and per
sonal estate, an apportionment was directed, and the bequest
was held to fail only so far as it arose from the portion
of the legacy attributable to the realty, or to the person
(b) Wright v. Rose, 2 Sim. & St. Y. & C. C. C. 580 ; Emuss v . Smith ,
323 ; and see Clarke v. Franklin, 4 2 De G. & Sm. 722. [This retrospec
K. & J. 260 ; Bourne v. Bourne, 2 tive conversion is, however, implied
Hare, 35 ; Re Cooper's Trust, 4 De G. only as between the real and personal
M. & G. 768. representatives of the person giving
(c) Lawes v. Bennett, 1 Cox, 167 ; the option, and does not apply as
Collingwood v. Row, 4 Jur. N. S. 785 ; between the vendor and the pur
Weeding v . Weeding, 1 J. & H. 424 ; chaser ; Edwards v. West, 7 Ch . D.
Whitmore v. Douglas, cited Ripley v. 858. ]
Waterworth, 7 Ves. 436 ; Townley v. [ (d) Re Adams and the Kensing
Bedwell, 14 Ves . 590 ; [ Re Adams ton Vestry, 24 Ch . D. 199 ; 27 Ch. D.
and the Kensington Vestry, 27 Ch. 394.]
D. 394 ; but see Drant v. Vause, 1
1275
*953 ELECTION. [ CH. XXXI. S. 1.
(d) See Henley v. Webb, 5 Mad. to her husband ; and see Standering
407. v. Hall, 11 Ch. D. 652. ]
(e) Oldham v. Hughes, 2 Atk. 453. [(a ) Standering v . Hall, 11 Ch. D.
(f) Binford v. Bawden, 1 Ves. 652 ; see ante, p. 750. ]
jun. 512 ; [ and from a subsequent re [ (b) Wallace v. Greenwood, 16 Ch.
port of this case, 2 Ves. 38, it appears D. 362 ; but see Re Shaw, 49 L. J. N.
that the feme covert on being exam S. Ch. 213. ]
ined elected to have the money paid
1278
CH. XXXI. S. 1. ] ELECTION. *955
(f) 4 De G. & Sm. 289 ; and see (d) Re Gardiner's Trust, 1 Eq.
observations of Lord St. Leonards in Rep. 57 ; Mutlow v. Bigg, 1 Ch . D.
his essay on the Real Property Sta 385 ; [Meek v. Devenish, 6 Ch. D.
tutes, 240. 566.1
(a) Re Alge, 2 I. R. Eq . 485. (e) Lingen v. Sowray, 1 P. Wms.
[ (b) 45 & 46 Vict. c. 75.] 172 ; Harcourt v . Seymour, 2 Sim. N.
[(c) Re Davidson, 11 Ch. D. 341. ] S. 12 ; Re Skeggs, 2 De G. J. & S. 533.
1280
CH. XXXI. S. 1.] ELECTION. *957
(c) See Trafford v. Boehm, 3 Atk. Binford v . Bawden, 1 Ves . jun . 512 ;
440, and the cases cited under note Holderness . Carmarthen, 1 B. C. C.
(c) , p. 960. 382, per Lord Thurlow ; and see the
(d) 3 P. W. 13. preamble of 39 & 40 G. 3, c. 56.
(e) 3 P. W. 14, note (G). (h) Trafford v. Boehm, 3 Atk. 448 ;
(f) See Benson v. Benson, 1 P. and see Earl of Bath v. Earl of Brad
W. 130, note (1). ford, 2 Ves. 590 ; but see Pearson v.
(9) Trafford v. Boehm, 3 Atk. 447, Lane, 17 Ves. 106.
per Lord Hardwicke ; Cunningham (a) Pulteney v. Darlington, 1 B.
v. Moody, 1 Ves. 176, per eundem ; C. C. 236.
1283
*959 ELECTION. [CH. XXXI. S. 1.
But the concluding remark must have been intended (as Mr.
Serjeant Hill, in a note on the passage, has justly observed (b) )
to apply, not to every tenant in tail, as, not to tenant in tail
with remainder to himself in fee, but only to tenant in tail,
with remainder to a stranger ; for in a subsequent case , where
the tenant in tail had executed an assignment of two sums
of money directed to be laid out in lands, his Lordship said,
" As to the 5007. the assignor was tenant in tail, remainder to
a stranger, remainder to himself in fee ; as to the 10007. he
was tenant in tail, with remainder in fee to himself. I am
clear, that in regard to the 10007. he had the absolute domin
ion over it, having the immediate remainder in fee ; but as
to the 5007. I am equally clear the other way, because of the
intermediate remainder " (c).
14. 39 & 40 G. 3, c. 56. — By 39 & 40 G. 3, c. 56 (d) , the
inability of the tenant in tail with remainders over of money
to be laid out in the purchase of land to obtain possession of
the money, except through the medium of a fictitious pur
chase (e) , was removed ; and the Court was empowered, on
the petition of the first tenant in tail of such money-land, and
of the parties (if any) having antecedent estates therein
(with a provision for the separate examination of married
women) , to order the money to be paid to the petitioners or
as they should appoint (f) ; so that a kind of statutory
power of election was thus conferred on tenants in tail.
15. Fines and Recoveries Act. — By the Act for the aboli
tion of Fines and Recoveries (g) , a tenant in tail may, with
the consent of the protector of the settlement, if any, dispose
absolutely of the lands entailed at any time, whether in term
or vacation, and by the 71st section of the statute it is en
acted, that " money to be invested in the purchase of lands
to be settled so that any person, if the lands were purchased,
would have an estate tail therein, shall be treated as the
(b) Ib. note (a) , Lord Henley's (e) See Henley v. Webb, 5 Mad.
edit. 407.
(c) Holdernesse v. Carmarthen, 1 (f) See 5 Ves. 12, note ( 8 ) , as to
B. C. C. 382 . the qualification introduced by the
(d) Repealed and extended by 7 Court in making orders for payment
G. 4, c. 45, which in its turn was under this Act.
repealed by 3 & 4 W. 4, c. 74, s. 70. (g) 3 & 4 W. 4, c. 74, s . 71.
1284
CH. XXXI. S. 1. ] ELECTION. *960
[* 963] * SECTION II .
THE ACT OF THE TRUSTEE SHALL NOT ALTER THE NATURE OF THE
CESTUI QUE TRUST'S ESTATE .
(a) Ex parte Grimstone, cited Oxen Bromfield, 1 Ves . jun. 462 ; Ex parte
den v. Lord Compton , 4 B. C. C. 235, Grimstone, Amb. 708 ; S. C. cited 2
note, per Lord Apsley. Ves. jun. 75, note ( r ) , and 4 B. C. C.
(b) Ex parte Phillips, 19 Ves . 123, 235, note ; Ex parte Phillips, 19 Ves.
per Lord Eldon . 123 ; Dormer's case, 2 P. W. 265 ; Ex
(c) Oxenden v. Lord Compton, 2 parte Chumley, 1 Ves. jun. 297 ; Ex
Ves. jun. 72 ; and S. C. 4 B. C. C. 233, parte Baker, 6 Ves. 8.
per Lord Thurlow ; and see Ex parte
1289
*964 TRUSTEES FOR LUNATICS. [CH. XXXI. S. 2.
field, 1 Ves. jun. 455, 457 ; Re Mary (d) Oxenden v. Lord Compton, 2
Smith (a lunatic) , 10 L. R. Ch. App. Ves. jun. 73.
84, per L. J. James. (e) Ib. per Lord Loughborough.
(f) Ex parte Bromfield , 1 Ves. jun . (f) Sergeson v. Sealey, 2 Atk.
453 ; S. C. 3 B. C. C. 510 ; Oxenden 414, per Lord Hardwicke ; Ex parte
v. Compton, 2 Ves. jun. 69 ; S. C. 4 Grimstone, Amb. 708 ; S. C. cited
B. C. C. 231 ; Shelley's case , cited 1 Oxenden v. Lord Compton, 4 B. C. C.
Ves. jun. 457 ; Ex parte Phillips, 19 237, note, per Lord Apsley ; 2 Ves.
Ves. 124, per Lord Eldon. The dic jun. 72, per Lord Loughborough ;
tum in Marquis of Anandale v. Mar Newport's case, cited Ib.; [ Re Gist,
chioness of Anandale, 2 Ves. 384, 5 Ch . D. 881 ; ] Re Badcock, 4 M. &
must be considered as overruled . Cr. 440. But it was said in the last
(a ) Oxenden v. Lord Compton, 2 case, that "if the money were laid
Ves. jun. 72 ; per Lord Loughbor out in a purchase of land, or, what
ough . was the same thing, in building a
(b) Sergeson v. Sealey, 2 Atk. 414, farm house, it would be right that the
per Lord Hardwicke ; Dormer's case, sum so laid out should retain its char
2 P. W. 262 ; [ Re Gist, 5 Ch . D. 881. ] acter of personalty ."
(c) See Justice De Grey's argu (9) Justice De Grey's argument
ment in Ex parte Grimestone , cited in Ex parte Grimstone, ubi supra ; but
Oxenden v. Lord Compton, 2 Ves. see Degg's case, cited Oxenden v.
jun. 75 , note. Lord Compton, 4 B. C. C. 235, note.
1291
*966 TRUSTEES FOR LUNATICS . [CH. XXXI. S. 2.
(h) Ex parte Ludlow, 3 Atk. 407. per Lord Apsley ; Sergeson v. Sealey,
(i) Exparte Bromfield, 1 Ves. jun. 2 Atk. 414, per Lord Hardwicke.
463, and 3 B. C. C. 515 , per Lord (a) See Ex parte Bromfield, 1 Ves .
Thurlow ; and see Re Mary Smith jun. 462 .
(a lunatic) , 10 L. R. Ch. App . 79. (b) Anon . case, 2 Freem. 114 ;
(j) Oxenden v. Lord Compton, 2 Awdley v. Awdley, 2 Vern. 292 ; Mar
Ves. jun. 76, and 4 B. C. C. 238, per quis of Anandale v. Marchioness of
Lord Loughborough . Anandale , 2 Ves . 384, per Lord Hard
(k) Oxenden v. Lord Compton, 2 wicke ; and see Ke Badcock, 4 M. &
Ves. jun. 73, per Lord Loughborough ; Cr. 440 .
Ex parte Grimstone, cited in Oxenden [(c ) Re Gist, 5 Ch. D. 881. ]
v. Lord Compton, 4 B. C. C. 235, note, (d) Ex parte Grimstone, Amb.
1292
CH. XXXI. S. 2. ] TRUSTEES FOR LUNATICS . *966
PRACTICE .
CHAPTER XXXII.
SECTION I.
OF DISTRINGAS.¹
[(a ) In the sixth and earlier edi or be sued have been considered at
tions of this work, the subjects of par some length, but in referring to those
ties to suits relating to trusts, and of editions the recent changes in the
the order and manner in which trus practice of the Court must be borne
tees and cestuis que trust ought to sue in mind .]
(c) Ib. 1 Ph. 203 ; and see 15 & 16 Vict. c. 86, s. 59.
1301
*974 DISTRINGAS. [CH. XXXII. S. 1.
(a) XXVII Cons . Ord. 1860. See [ (b) See Rules of the Supreme
Orders , 17 Nov. 1841 , 3 Beav. xxxiii.; Court Ord. 46 , superseding the similar
and 10 Dec. 1841, 3 Beav. xxxviii. Rules of April, 1880.]
1302
CH. XXXII. S. 1.] DISTRINGAS. *974
[(a) The proper course is to obtain [ (b) See note (a) , p. 973.]
an interim order, ex parte, over the (c ) See Etty v. Bridges, 1 Y. & C.
next motion day, which must be C. C. 486.
served on the legal owners of the (d) Note (a) , p. 972, supra.
stock ; Re Blaksley's Trusts , 23 Ch. (e ) Re Marquis of Hertford, 1
D. 549. ] Hare, 584 ; 1 Ph. 129.
1303
*975 PRODUCTION . [CH. XXXII. S. 2.
SECTION II.
OF PRODUCTION.
1 If a trustee does not keep clear, intelligible, and plain accounts, any
doubtful points or questions will be decided adversely to him ; Blauvelt v.
Ackerman, 23 N. J. Eq. 493 .
1305
*977 COMPULSORY PAYMENT INTO COURT. [CH. XXXII . S. 3.'
SECTION III.
-
1. General rule. The general rule as laid down by Lord
Eldon, and which has ever since been acquiesced in , is, that
to call for payment of money into Court, " the plaintiff must
either be solely entitled to the fund or have acquired in the
whole of the fund such an interest, together with others, as
entitles him on his own behalf, and the behalf of those others,
to have the fund secured in Court " (f) . It is not indis
pensable that the plaintiff should be the person exclusively
interested ; for if he have a partial or contingent interest (g) ,
it is enough, provided all the other persons interested in the
fund are before the Court (h) ; and occasionally the Court
will make orders for payment into Court, although
[ * 977 ] some of the persons interested in the money are * not
1 If a trustee fails to pay money into court as ordered, he is liable for the
principal, and compound interest, during such failure ; Lathrop r . Smalley's
Ex. 23 N. J. 192 ; Winder v. Diffenderffer, 2 Bland, 166 ; McElhenny's App . 46
Pa. St. 347 ; Durling v. Hammar, 5 C. E. Green, 220. When the trustee does
pay the fund into the court, either voluntarily or involuntarily, no interest
can be claimed from him since such payment ; Young v. Brush, 38 Barb. 294 ;
Lane's App . 24 Pa . St. 487 ; Brandon v . Hoggatt, 32 Miss. 335. There can be
no objection to the payment of the money into court by the trustee, if he
chooses to do it ; Smith v. Atwood, 14 Ga . 402 ; Wright v. Arnold , 14 B. Mon.
638. If a trustee has been guilty of misconduct, he will be ordered to pay
the funds into court ; Hosack v . Rogers, 9 Paige, 468 ; Conteer . Dawson, 2
Bland, 264 ; but a clear case and good reason must be shown to induce courts
to make such an order ; McTighe v. Dean, 7 C. E. Green, 81.
1306
CH. XXXII . S. 3.] COMPULSORY PAYMENT INTO COURT. *977
before it (a) , or the defendant does not admit that all are
before it ( b ) . Where the other persons interested are not
necessary parties to the suit , payment into Court, if con
sistent with the relief sought in the suit, may be obtained
without service on them of the notice of motion (e) ; but
where cestuis que trust had been served with the copy of a
bill which prayed the appointment of new trustees, and a
transfer of the fund not into Court but to the new trustees,
the Court held that the parties served with a copy of the
bill must be served with notice of the motion to transfer the
fund into Court (d) .
2. Plaintiff may move upon a possible title. - If the defend
ant admits himself to be a trustee for some one, but it re
mains to be ascertained whether he is a trustee for the
plaintiff or for other parties, the plaintiff may move upon
his possible title, where all persons are before the Court
among whom there will be found some one who is en
titled (e) . “ In a contest as to the title to any particular
property," said Lord Cottenham, "the Court will, in some
cases, take possession of the subject-matter of the contest
for security until it adjudicates upon the right . Such cases
generally arise when the property is in the hands of stake
holders, factors , or trustees who do not themselves claim any
title to it. In ordering money into Court under such cir
cumstances, the Court does not disturb the possession of any
party claiming title , or direct a payment before the liability
to pay is established " (f) .
3. Payment of a share . —— Occasionally, where the fund is
clear, and is divisible between the plaintiff and defendant in
certain proportions, the Court has ordered the defendant to
pay into Court the share only of the plaintiff (g) .
(h) Beaumont v. Meredith, 3 V. & into Court. ] The 59th sect. of 15 &
B. 181 , per Lord Eldon ; Richardson v. 16 Vict. c. 86, directing the defend
Bank of England , 4 M. & Cr. 171 , 175, ant's answer to be viewed merely as
per Lord Cottenham ; Dubless v. Flint, an affidavit in motions for injunction
4 M. & Cr. 502 ; Black v. Creighton, or receiver, &c . , did not touch motions
2 Moll. 554, per Sir A. Hart ; and for payment into Court.
see Green v. Pledger, 3 Hare, 171 ; (a ) Boschetti v. Power, 8 Beav.
Hagell v. Currie, 2 L. R. Ch. App. 98.
452. [ However in Jervis v. White, 6 [ (b ) London Syndicate v. Lord , 8
Ves. 738 , Lord Eldon took the affida Ch . D. 84. ]
vit of the plaintiff charging the de [ (c) Freeman v. Cox, 8 Ch. D. 148 .
fendant with having a sum of money In a recent case in Ireland, V. C.
in his hands and an affidavit of the Chatterton declined to follow Free
defendant before answer together as man v. Cox ; see Nesbitt v. Baldwin,
an admission, and ordered the money 7 L. R. Ir. 134. ]
1308
CH. XXXII. S. 3. ] COMPULSORY PAYMENT INTO COURT. *979
SECTION IV.
OF RECEIVERSHIP.¹
(c) Brodie v. Barry , 3 Mer. 695 ; Mansfield v . Shaw, 3 Mad. 100 ; and
Beaumont v. Beaumont, cited Ib. 696 ; see Anon. 12 Ves . 4 ; Middleton v.
see Browell v. Reed, 1 Hare, 435. Dodswell, 13 Ves. 266 ; Havers v.
(d) Manners v. Furze, 11 Beav. Havers, Barn. 23.
30 ; Tylee v. Tylee, 17 Beav. 583. (h) Gladdon v. Stoneman, 1 Mad.
(e) Anon. 12 Ves. 5 per Sir W. 143, note ; Langley v. Hawk, 5 Mad.
Grant ; and see Middleton v. Dods 46 ; [Re Hopkins, 19 Ch. D. 61. ]
well, 13 Ves. 266 ; Howard v. Papera, (i) Middleton v. Dodswell, 13
1 Mad . 142 ; Richards v. Perkins, 3 Ves. 266.
Y. & C. 299 ; Evans v. Coventry, 5 (a) Bainbrigge v. Blair, 3 Beav.
De G. M. & G. 911 . 421 .
(f)Earl Talbot v. Scott, 4 K. & J. (b) Everett v. Prythergch, 12 Sim.
139. 367, 368.
(g) Scott v. Becher, 4 Price, 346 ;
must be good cause shown before a receiver will be appointed, but if the trust
property is in danger, there will be no hesitation about it ; Ogden v. Kip,
Johns. Ch. 160 ; Poythress v . Poythress, 16 Ga. 406. A receiver will ordinarily
pay claims without preference ; yet there may be some legal preferences ;
M'Dermutt v. Strong, 4 Johns. Ch. 687 ; Austin v. Bell, 20 Johns. 442 ; Le
Prince v. Guillemot, 1 Rich. Eq . 220 ; Gracey v. Davis, 3 Strob. Eq . 58.
When necessary an heir will be regarded as a trustee, and rents and profits
may accumulate in his hands, for the benefit of an executory devisee, until
the vesting of the estate, but the court may in its discretion appoint a receiver
of them for that purpose ; Rogers v. Ross, 4 Johns . Ch . 388 ; 8 Am . Dec. 575.
1314
CH . XXXII . S. 4.] RECEIVERSHIP. *983
* SECTION V. [* 985] *
OF COSTS OF SUIT.¹
1 Costs. - Generally as between the trustee and cestui que trust, the costs
will be paid from the trust fund, or by the cestui que trust ; Bliss v. American
Bible Society, 2 Allen, 334 ; Bendall v. Bendall, 24 Ala. 295 ; Morton v. Bar
rett, 22 Me. 257 ; Hosack v. Rogers, 9 Paige, 463 ; Graver's App. 50 Pa . St.
189 ; Minuse v. Cox, 5 Johns. Ch. 451. If the cestui que trust brings any pro
ceeding against the trustee, without due cause, he must pay the costs ; Down
ing v . Marshall, 37 N. Y. 380 ; a trustee can make no additional charge for
his own services as attorney in such cases ; Mayer v . Galluchat, 6 Rich. 1 .
Trustees generally receive costs whether they are plaintiffs or defendants ;
Towle v . Swasey, 106 Mass . 108 ; Sargent v. Sargent, 103 Mass . 297 ; Bowditch
r. Soltyk, 99 Mass. 136 ; Hepburn's App. 65 Pa . St. 472 .
If a trustee fails to account, the costs will come upon him ; Burnham v.
Dalling, 1 Green ( N. J. ) 310 ; so if he mixes trust funds with his own ; Bogle
v. Bogle, 3 Allen, 158 ; or follows out a capricious notion ; Lathrop v . Smalley,
23 N. J. Eq . 192 ; Brinton's Est. 10 Barr, 408 ; or does not do his duty ; Ibid ;
Kent v. Hutchins, 50 N. H. 92 ; Lathrop v. Smalley , 23 N. J. Eq . 192. If a
1317
#985 COSTS OF SUIT OF TRUSTEES. [CH. XXXII. S. 5.
trustee seeks to collect an unjust bill from the cestui que trust, the former pays
the costs ; Waterman v. Cochran, 12 Vt. 699 ; or refuses to let the cestui que
trust use his name in a proceeding beneficial to the trust estate ; Guyton v .
Shane, 7 Dana, 498 ; or institutes proceedings for his own benefit ; Ingram v.
Kirkpatrick, 8 Ired . Eq . 62 ; Manning v. Manning, 1 Johns. Ch. 535 ; but see
Atcheson v. Robertson, 4 Rich. Eq . 44. For any charge against the trustee,
the costs are upon him; Bickham v. Smith, 55 Pa . St. 335 ; likewise if he
make an ungrounded defence ; Burnham v. Dalling, 1 Green, Ch. 310 ; Duns
comb v. Dunscomb, 1 Johns. Ch. 508. If a trustee is guilty of any breach,
he will receive no costs ; Spencer v. Spencer, 11 Paige, 159 ; or has made a
mistake ; Robertson v. Wendell, 6 Paige, 322. If a trustee makes it necessary
to audit his accounts, he can receive no costs, though he pays none ; Norris's
• App. 71 Pa. St. 115. If a trustee is in doubt as to the course he should
pursue, he may ask the court for instructions, and receive his costs in con
nection therewith ; Armstrong v. Zane, 12 Ohio, 287 ; Dustan v. Dustan, 1
Paige, 509.
If it is necessary to obtain from the courts an interpretation of a declara
tion of trust, the costs come out of the trust estate, and as it is the fault of
the settlor, it is proper that they should ; Sawyer v . Baldwin, 20 Pick. 378 ;
Bowditch v. Soltyk, 99 Mass. 136 ; Bigelow v. Morong, 103 Mass . 287 ; Monks
v. Monks, 7 Allen, 401 ; King v . Strong, 9 Paige, 94. In case of particular
legacies where the decision will neither aid nor hinder the trust estate , the
costs may come from that particular legacy ; Birdsall v. Hewlett, 1 Paige, 32.
If the trustees are either plaintiffs or defendants in suits with strangers,
the party succeeding will receive costs from the other ; Knowles v. Knowles,
86 Ill. 1 ; Hanson v. Jacks , 22 Ala. 549 ; Knox v. Bigelow, 15 Wis . 415 ; Rose
v. Rose, 28 N. Y. 184 ; Buckels v. Carter, 6 Rich. 106. If trustees bring un
justifiable suits, they must pay the costs ; Roosevelt v. Ellithorp , 10 Paige,
415 ; Savage v . Dickson, 16 Ala. 260. If trustees are entitled to costs, they
are allowed them in their accounts ; Cassey's Est. 47 Pa . St. 424 ; Knox v . Picket,
4 Des. 92 ; Graver's App. 50 Pa. St. 189 ; Long v. Israel, 9 Leigh, 556 ; Hardy
v. Call, 16 Mass . 530 ; Miles v. Bacon, 4 J. J. Marsh. 457 ; Abbott v. Brad
street, 3 Allen , 587 ; Collins v . Townley, 21 N. J. Eq . 353 ; Drew v. Wake
field, 54 Me. 291. Parties disputing a will may be held for costs ; Perrine v.
Applegate, 1 McCarter, 531 ; Nickerson v. Buck, 12 Cush. 343 ; Collins v.
Townley, 21 N. J. Eq. 353 ; Woodbury v. Obear, 7 Gray, 472. A cestui que
trust incurring costs at law against his trustee in defending a legal title,
instead of coming at once into equity, cannot recover costs, but is entitled to
be reimbursed for any costs paid the trustee ; Keaton v. Cobb, 1 Dev. Eq.
439 ; 18 Am. Dec. 595 ; Allen v. Gilreath, 6 Ired. Eq . 252 ; Murphy v. Grice,
2 Dev. & B. Eq. 199. If strangers force trustees into court, the latter may have
their costs ; Ibid ; Wood v. Vandenburgh, 6 Paige, 278. Yet if the stranger is
defeated, the courts may throw the costs upon the trustee, the amount to
come from the trust estate ; Kreitz r. Frost, 55 Barb . 474 ; State v. Tolan, 33
N. J. L. 195 ; there must be a special order, to give either party costs ; Ibid.
1318
CH. XXXII . S. 5.] COSTS OF SUIT OF TRUSTEES. * 985
The party winning may be ordered to pay the costs ; Gray v. Dougherty, 25
Cal. 266 ; Coleman v. Ross, 46 Pa. St. 180. Courts have a large discretion in
the matter of costs ; Taylor v. Root, 48 N. Y. 687. Where a trustee set up
an improper claim to property, and a bill was filed to compel him to give it
up, the court charged him with costs ; Fisher v. Wilson, 2 Chy. 260. A trustee
refusing to allow his name to be used in a defence, cannot have costs ; Ellis
v. Ellis, 7 Chy . 102 ; also one making a separate, instead of a joint defence ;
Gibson v. Annis, 11 Chy. 481 ; Lavin v . O'Neill, 13 Chy. 179 ; costs in eject
ment are allowed ; Edinburgh Life Assur. Co. 23 Chy. 230 ; are not allowed in
some suits to establish a trust ; English v. English, 15 Chy. 330. Surviving
trustee and representatives may get individual costs ; Reid r. Stephens ,
Chy. Chamb. 372 ; for other cases, see Wiard v. Gable, 8 Chy. 458 ; Hope r.
Beard , 11 Chy . 212 ; Meighen v. Buell, 25 Chy. 604 ; Morgan v. Holland,
7 P. R. 74.
1319
*986 COSTS OF SUIT OF TRUSTEES . [ CH. XXXII . S. 5.
even as against the plaintiff, for the Court will not take the
fund out of his hands until his costs are paid (h).
(h) Bennet v. Going, 1 Moll. 529 ; trustee, or mortgagee, who has not
Tipping v. Power, 1 Hare, 405 ; Ott unreasonably instituted or carried on
ley v. Gilby, 8 Beav. 603 ; Tanner v. or resisted any proceedings, of any
Dancey, 9 Beav. 339. right to costs out of a particular es
(i) 1 Eq . Ca. Ab. 125, note (a) ; tate or fund to which he would be
Hall v. Hallet, 1 Cox, 141 , per Lord entitled according to the rules previ
Thurlow ; Attorney-General v. City ously acted upon in the Chancery
of London, 3 B. C. C. 171 ; Norris v. Division ; see Re Hodgson, W. N.
Norris, 1 Cox, 183 ; Sammes v. Rick 1884, p. 117, where the action had
man, 2 Ves. jun. 38, per Lord Chief been instituted before the order came
Baron Eyre ; Rashley v. Masters, 1 into operation. Re McClellan, 29
Ves. jun. 201 ; Rock v. Hart, 11 Ves. Ch. D. 495. ]
58 ; Maplett v. Pocock, Rep. t. Finch, (a ) Mohun v. Mohun, 1 Sw. 201 ,
136 ; Landen v. Green, Barn. 389 ; per Sir T. Plumer ; Moore v. Frowd,
Taylor v. Glanville, 3 Mad . 176, etc.; 3 M. & Cr. 49, per Lord Cottenham .
[Re Love, 29 Ch. D. 348. By Order (b) Attorney-General v. Cuming, 2
65, R. 1 , of the Rules of the Supreme Y. & C. C. C. 155 ; but see Edenbor
Court, 1883 , the costs of all proceed ough v . Archbishop of Canterbury, 2
ings, including the administration of Russ . 112.
estates and trusts, are in the discre (c) Saunders v . Saunders, 3 Jur.
tion of the Court, but this is not to N. S. 727 ; Mohun v . Mohun, 1 Sw.
deprive an executor, administrator, 201 .
1321
*988 COSTS OF SUIT OF TRUSTEES . [CH. XXXII. S. 5.
(b) Martin v. Persse, 1 Moll. 146. Finch, 259 ; Earl Powlet v. Herbert,
(c) Snow v. Hole, V. C. of Eng 1 Ves. jun. 297 ; Caffrey v. Darby, 6
land, March 8, 1845 ; and see Gold Ves. 488 ; Littlehales v. Gascoyne, 3
smith . Russell, 5 De G. M. & G. 547, B. C. C. 73 ; Ashburnham v. Thomp
556 ; Daking . Whimper, 26 Beav. son, 13 Ves. 402 ; Hide v. Haywood,
571 ; Ponsford v. Widnell, W. N. 2 Atk. 126 ; Adams v. Clifton, 1 Russ.
1869 , p. 81 ; Travis v. Illingworth, 297 ; Mosley v. Ward, 11 Ves . 581 ;
W. N. 1868, p. 206 ; Ex parte Tom Piety v. Stace , 4 Ves. 620 ; Seers r .
linson, 3 De G. F. & J. 745 ; and see Hind, 1 Ves. jun . 294 ; Fell v. Lut
ante, p . 640. widge, Barn. 319, see 322 ; Brown v.
(d) Elsey v. Cox, 26 Beav. 95 ; How, Barn. 354, see 358 ; Sheppard
Crossley v. Elworthy, 12 L. R. Eq . 158. r. Smith, 2 B. P. C. 372 ; Haber
(e) Turquand v. Knight, 14 Sim . dashers' Company . Attorney-Gen
643. eral, 2 B. P. C. 370 ; Franklin v.
(f) Smith v. Dresser, 1 L. R. Eq . Frith, 3 B. C. C. 433 ; Whistler v.
651 ; S. C. 35 Beav. 378. Newman, 4 Ves. 129 ; Stacpoole v.
[(g) Dutton v. Thompson, 23 Ch. Stacpoole, 4 Dow, 209 ; Crackelt v.
D. 278. ] Bethune, 1 J. & W. 586 ; Baker v.
(h) Mohun r. Mohun, 1 Sw . 201. Carter, 1 Y. & C. 252, per Lord Abin
(i) Springett v. Dashwood, 2 Giff. ger, C. B.; Hide v. Haywood, 2 Atk.
521 ; Byrne v. Norcott, 13 Beav. 346 ; 120 ; Wilson v. Wilson , 2 Keen, 249 ;
Attorney-General v. Hobert, Rep. t. Attorney-General v. Wilson , Cr. & Ph.
1324
CH. XXXII . S. 5. ] COSTS OF SUIT OF TRUSTEES . *990
content itself with not giving him costs (c) , or will punish
him with payment of part of the costs only (d), or will even
allow him his costs (e) ; [ but an official liquidator who is a
paid agent is not entitled to the same latitude in the matter
of costs as a gratuitous trustee (ƒ ) . ]
15. Administration suit mainly caused by a breach of trust.
-Though, as a general rule, where a trustee commits a breach
of trust he must pay the costs of a suit to repair it, yet he
will be entitled to his subsequent costs relating to the ordi
nary taking of the accounts ( g) .
16. Misconduct of the trustee discovered in the progress of
the suit. If the suit did not originate from any necessity of
enquiring into the conduct of the trustee , but, in the course
of the proceedings instituted upon other grounds, it appears
the trustee has in some particular instance been guilty of a
breach of trust, the Court will not award against the trustee
the costs of the whole suit, but only of so much of it as con
nects itself with his misconduct, and as to the rest of the
suit will allow him his costs (h).
17. Clearance of default. The Court never gives costs to
a defaulting trustee while he continues in default, but the
Court says, " when you have paid in the balance found due
from you, then you shall have your costs " (i) . But a bank
rupt [ formerly ceased ] from the date of the bank
ruptcy to be a debtor to the trust estate, and was [ * 992]
therefore entitled to his costs from the date of the
bankruptcy (a) .
(c) O'Callaghan v . Cooper, 5 Ves. [ (f) Re Silver Valley Mines, 21
117 ; Mousley v. Carr, 4 Beav. 49 ; Ch. D. 381. ]
Attorney- General v. Drapers' Com (g ) Hewett v. Foster, 7 Beav. 348 ;
pany, Ib. 71 ; Devey v. Thornton, 9 and see Bate v. Hooper, 5 De G. M. &
Hare, 222 ; [ Ryan v. Nesbitt, W. N. G. 345 ; Re King, 11 Jur. N. S. 899.
1879, p. 100. ] (h) Tebbs v. Carpenter, 1 Mad .
(d) East v. Ryal, 2 P. W. 284. 290, see 308 ; Newton v. Bennet, 1 B.
(e) Taylor v. Tabrum, 6 Sim. 281 ; C. C. 359 ; Pride v . Fooks, 2 Beav.
Flanagan v. Nolan, 1 Moll. 84 ; Tra 430; Heighington v. Grant, 1 Ph. 600.
vers v. Townsend , Ib. 496 ; Attorney (i) Birks v. Micklethwait, 33 Beav.
General v. Caius College, 2 Keen, 409 ; Watson v. Row, 18 L. R. Eq.
150 ; Bennett v. Attkins, 1 Y. & C. 680 ; [ Lewis v. Trask, 21 Ch . D. 862 ;
247 ; Fitzgerald v. O'Flaherty, 1 Moll. Re Basham, 23 Ch . D. 195 ; McEwan
347 ; Attorney- General v. Drummond, v. Crombie, 25 Ch . D. 175. ]
2 Conn. & Laws . 98 ; Royds v. Royds, (a) Bowyer v. Griffin , 9 L. R. Eq.
14 Beav. 54. 340.
1327
*992 COSTS OF SUIT OF TRUSTEES . [CH. XXXII. S. 5.
- The liability
[ 18. Where defaulting trustee a bankrupt.
of a trustee for his breaches of duty was, however, by the
Bankruptcy Act, 1869, s . 49, continued notwithstanding his
discharge, and there has been some conflict of opinion as to the
right of a bankrupt trustee since that Act to his costs as from
the date of the bankruptcy, but the better opinion seems to
be that he is not entitled to such costs until he has made
good his default ( b) . By the Bankruptcy Act, 1883 ( c) , the
liability of a trustee for a breach of trust (except in cases of
fraudulent breaches ) is released by the order of discharge,
and it follows that under that Act, except in cases of fraud,
a bankrupt trustee will, as from the date of his discharge, be
entitled to his costs.
19. Apportioning costs in action against executor of default
ing executor. ― - If an action be brought against the executor
of a defaulting executor to administer the original testator's
estate , the defendant's costs ought strictly to be borne, as
to those incurred solely in reference to the original testator's
estate out of that estate, as to those incurred in seeking relief
against the defaulting executor out of his estate, and as to
the remaining costs out of the two estates equally ; but to
avoid the complication and expense of thus apportioning the
costs, the Court has allowed the defendant the costs of taking
the account of the original testator's estate, and half the rest
of his costs out of the original testator's estate (d) . ]
20. Costs of discussing a doubtful point of law . - An exec
utor, instead of accumulating a fund as directed by the will,
had improperly kept the balance in his hands ; but, as the
amount of costs had in great measure been occasioned by the
enquiry what rule the Court ought to adopt with respect to
the computation of interest, it was thought hard under the
circumstances to fix the executor with payment of costs even
relatively to the breach of trust ; and therefore the Court
gave no costs (e) .
(d) Parrot v. Treby, Pr. Ch. 254 ; (j) Avery v. Osborne, Barn . 349 ;
Eglin v. Sanderson, 3 Giff. 434. Reech v. Kennegal, 1 Ves. 123.
(e) Attorney-General v. Brewers' (k) Norbury v. Calbeck, 2 Moll.
Company, 1 P. W. 376 . 461.
(f) Fozier v. Andrews, 2 Jon. & • (1) Sandys v. Watson, 2 Atk. 80 .
Lat. 199. (a ) Re King, 11 Jur. N. S. 899.
(g) Gresham v. Price, 35 Beav. 47. [But under the Rules of the Supreme
(h) Boynton v. Richardson , 31 Court now in force, an executor in
Beav. 340 ; Kemp v. Burn, 4 Giff. stituting proceedings to have the
348 ; Wroe r. Seed, 4 Giff. 425 ; Un accounts taken must, to entitle him
derwood . Trower, W. N. 1867 , p . 83 ; to costs, be able to satisfy the Court
[Re Radclyffe, 50 L. J. N. S. Ch. 317. ] that under all the circumstances of
(i) Sheppard v. Smith, 2 B. P. C. the case the institution of the action
372 ; and see Flanigan v. Nolan, 1 was reasonable. See Order 65 , R. I. ]
Moll. 86. (b) Talbot v. Marshfield, 4 L. R.
Eq. 661, 3 L. R. Ch . App . 622 .
1330
CH. XXXII. S. 5. ] COSTS OF SUIT OF TRUSTEES. *995
the existence of any such rule has since been denied (b) .
The meaning of Lord Thurlow probably was, that where the
suit was occasioned by the misconduct of the trustee, and
the charge against him was shown to be well founded by the
Court's fixing him with interest, the costs of the suit in that
case would be consequential upon the relief (c) .
No. I.
"An Act for better securing Trust Funds, and for the Relief of Trustees."
(22nd July, 1847.)
(a) The owner of an estate charged the estate under the power of sale
with a sum in favour of another is not and pay the purchase-money into
a trustee of that sum within the Act, Court under the Trustee Relief Act ;
for he has not the monies in his Cox v. Cox, 1 K. & J. 251. See Trus
hands ; and if it were held otherwise , tee Act, 1850, sect. 48.
the money might be paid into Court, A sum of money was payable by
and the incumbrancer would have instalments , and the trustee after re
to bear the costs of getting it out, ceiving one instalment paid it into
whereas the nature of a charge is Court, and on a petition of the cestui
that the beneficiary is entitled to have que trust the Court not only admin
it raised out of the estate together istered the instalment paid in , but
with the costs of raising it ; Re Buck also gave directions to the trustee as
ley's Trusts , 17 Beav. 110 ; and see to the future instalments ; and said
Re Cooper's Legacy, 17 Jur. 1087 ; the order would give ample indem
Warburton v. Cicognara, 3 I. R. Eq. nity to the trustee ; Re Wright's Set
592. But see Trustee Act, 1850, tlement, 1 Sm. & Giff. App. v. The
sect. 48. Court had, in fact, no jurisdiction as
It has been thought that where to the instalments payable in future,
there is a power of sale without a and the order would be an indemnity
power of signing receipts for the pur in this sense only, that the trustee
chase-money, the purchaser may take would be acting in a way which had
1333
*996 TRUSTEE RELIEF ACT.
from the taking possession, lease, sale, as interested ; but if a person inter
mortgage, or other disposition under ested cannot be found the notice may,
the act of any mortgaged property, by leave of the court, be dispensed
as if he were a trustee . ] with ; Re Hansford, 7 W. R. 199 ; [ Re
(a) Trustees are at liberty to pay Whitaker's Trusts, 47 L. T. N. S. 507 ;
in, but they are not bound to pay in, 31 W. R. 114 ; ] and where the parties
if they are willing to execute the trust are extremely numerous, the Court
without the aid of the Court ; Moun may give leave to substitute notice
tain v. Young, 18 Jur. 769 ; and see on some of them ; Re Colson's Trust,
Handley v. Davies, 5 Jur. N. S. 190. 2 W. R. 111.
(b) The affidavit must not go into Where a person interested in the
the whole history of the trust, so as fund was not named as such in the
to show upon the accounts how the affidavit upon which the money was
particular sum arose, or the trustee paid into Court, it was held that he
will be deprived of his costs ; Re could not make his claim upon peti
Waring, 16 Jur. 652. All the trustees tion, but the Court gave him leave to
should properly join in the affidavit file a bill ; Re Jephson , 1 L. T. N. S.
as all may have some information to 5. But this case has not been fol
contribute, but under particular cir lowed in subsequent practice . [ See
cumstances the Court (as the Act is Re Puttrell's Trusts, 7 Ch. D. 647 ;
silent who is to make the affidavit) Pelling v. Goddard, 9 Ch. D. 185. ]
will order the Paymaster-General to When an executor, after paying
receive the money on the affidavit of money into Court, discovered debts of
one of several co-trustees ; v. the testator, he was allowed to have
-, 1 Jur. N. S. 974. the money paid back to him out of
(a) The payment into Court may Court on his undertaking to apply it
of course be made without an order properly ; Ex parte Tournay, 3 De G.
of the Court ; Re Biggs, 11 Beav. 27. & Sm. 677.
And annuities or Stocks of the Bank (b) The money must not be paid
of England, or of the East India in by an executor to an account "the
Company, or South Sea Company, or trusts of the testator's will ," for this
Government or Parliamentary secu implies not a particular trust, but a
rities, may be transferred into Court general administration of the testa
without an order, but private securities tor's estate. The executor must take
can only be deposited under the Trus on himself the responsibility of sever
tee Relief Amendment Act, 12 & 13 ing the fund from the testator's assets
Vict. c. 74, by an order to be made on and appropriating it to the particular
petition. [But see Re Ross's Trusts, purpose, and then pay it in to the
28 W. R. 418, where V. C. Malins limited account. If it has already
held that Railway Stock might be been paid in to an account too gen
transferred into Court under the eral for the Court to deal with, it may
Trustee Relief Act. ] be carried over to the correct account,
Notice of the payment into Court and the Court will then proceed to
must by the general orders be given adjudicate upon the rights of the par
to the persons named in the affidavit ties ; Re Joseph's Will, 11 Beav. 625 ;
1335
*999 TRUSTEE RELIEF ACT.
the same by the names of the parties, as accurately as may be, for the
purpose of distinguishing it ) , in trust to attend the orders of the said
Court (c) ; and that all trustees or other persons having any annuities or
stocks standing in their name in the books of the Governor and Com
pany of the Bank of England or of the East India Company or South Sea
Company, or any Government or Parliamentary securities (d)
[*999 ] standing in their names (e) , or in the names of any deceased
persons of whom they shall be personal representatives, upon
any trusts whatsoever, or the major part of them, shall be at liberty to
transfer or deposit such stocks or securities into or in the name of the
said Accountant-General, with his privity, in the matter of the particular
trust ( describing the same as aforesaid ) , in trust to attend the orders of
the said Court ; and in every such case the receipt of one of the cashiers
of the said Bank for the money so paid, or in the case of stocks or secu
rities the certificate of the proper officer, of the transfer or deposit of such
stocks or securities , shall be a sufficient discharge to such trustees or other
persons for the money so paid, or the stocks or securities so transferred
or deposited (c).
II. And be it enacted , That such orders as shall seem fit ( b) shall be
from time to time made by the High Court of Chancery in respect of the
trust monies, stocks , or securities so paid in, transferred , and deposited
as aforesaid, and for the investment (c ) and payment (d) of any
such monies, or of any dividends or interest on any such stocks [ *1000 ]
or securities, and for the transfer and delivery of any such stocks
and securities, and for the administration of any such trusts gen
erally, upon a petition ( a) * to be presented in a summary way [* 1001 ]
to the Lord Chancellor or the Master of the Rolls, without bill,
order made upon such petition shall have the same authority and effect,
and shall be enforced and subject to re-hearing and appeal, in the same
manner as if the same had been made in a suit regularly insti
tuted in the Court (b), and if it shall * appear that any such [*1002 ]
trust funds cannot be safely distributed without the institution
of one or more suit or suits, the Lord Chancellor or Master of the Rolls
may direct any such suit or suits to be instituted (a).
* IV. And be it enacted , That the Lord Chancellor, with the [ * 1003 ]
assistance of the Master of the Rolls or of one of the Vice-Chan
is justified, having regard to her right 194 ; [Re Hoskin's Trusts, 5 Ch. D.
to a settlement, in paying it into 229, 6 Ch . D. 281. But if a trustee
Court , Re Swan , 2 H. & M. 34. But is without sufficient reason deprived
see contra, Re Roberts's Trusts, 38 L. of his costs, he may semble appeal for
J. N. S. Ch . 708. them ; Turner v. Hancock, 20 Ch . D.
But a trustee who , after accepting 303, 307 ; disapproving, Re Hoskin's
the trust, throws it up from caprice Trusts, ubi supra ; and see supra, p.
soon after, and pays the money into 990. ]
Court, will not have his costs of ap If the person who pays in is the
pearing on the tenant for life's peti personal representative of a testator
tion ; Re Leake's Trusts, 32 Beav. 135. whose will creates the difficulty , the
When the trustee has paid in the executor should take his costs of pay
fund abusively, as in order to avoid ing in the fund out of the testator's
an action about to be brought against estate, but the subsequent costs come
him , he will have no costs ; Re Wa out of the fund ; Re Cawthorne, 12
ring, 16 Jur. 652 ; and Re Fagg's Beav. 56 ; Re Jones, 3 Drew. 679 ;
Trust, 19 L. J. N. S. Ch. 175. And secus, however, if the trust fund has
on the other hand, where a trustee been severed from the testator's estate,
refuses in a proper case to pay the and is paid in by a trustee and not by
fund into court, and obliges the cestuis the executor ; Re Lorimer, 12 Beav.
que trust to bring an action, the Court 521 ; Ex parte Lucas, V. C. Knight
will not allow him all his costs of Bruce, 6 July, 1849.
suit, but only such costs as he would The Court cannot direct the costs
have got had he paid the money into to be paid out of another fund , also
Court, and then the plaintiff had pre paid in by the trustee, but standing
sented a petition ; Weller v. Fitzhugh, to a different account, though it may
22 L. T. N. S. 567 ; Gunnell v. Whit form part of the testator's residuary
ear, 10 L. R. Eq . 664. And where he estate, and therefore be, per se, liable
has transferred the fund into Court to costs ; Re Hodgson , 18 Jur. 786 ;
without sufficient reason , though he S. C. 2 Eq. Rep. 1083 ; nor out of the
may be allowed his costs of the trans testator's residuary estate when it has
fer, he will not be allowed the costs not been paid in ; Re Bartholomew's
of appearing on the petition ; Re Will, 13 Jur. 380 ; and see Re Sharpe's
Covington's Trust, 1 Jur. N. S. 1157 ; Trusts, 15 Sim. 470 ; Re Feltham's
Re Heming's Trust, 3 K. & J. 40 ; Trusts, 1 K. & J. 534. But see Re
and see Croyden's Trust, 14 Jur. 54 ; Trick's Trusts, 5 L. R. Ch. App. 170.
Re Leake's Trusts, 32 Beav. 135 ; But where five-sixteenths of a fund
and in cases of gross misconduct in paid into Court had lapsed , the Court
paying in the fund, the Court has threw the whole costs on the lapsed
jurisdiction to throw upon the trustee shares as constituting part of the
personally the costs of the petition ; residue ; Re Ham's Trust, 2 Sim. N.
Re Woodburn's Will, 1 De G. & J. S. 106.
333 ; Re Cater's Trust, 25 Beav. 361, If a trustee deducts his costs be
366 ; Re Knight's Trusts, 27 Beav. 45 ; fore paying in the fund, the Court
Re Foligno's Mortgage, 32 Beav. 131 ; has no jurisdiction as to the sum de
Re Glendenning, W. N. 1867, p. 191 ; ducted ; Re Bloye's Trust, 1 Mac. &
Re Robert's Trusts , 38 L. J. N. S. Ch . G. 504 ; 2 Hall & Tw. 153 ; Re Bar
708 ; Re Wise's Trust, 3 I. R. Eq. ber, 9 Jur. N. S. 1098 ; Re Fortune's
599 ; Re Elliott's Trusts, 15 L. R. Eq. Trusts, 4 I. R. Eq. 351. But where
1341
113
*1004 TRUSTEE RELIEF ACT.
1 [ *1004] cellors, shall have * power and is hereby authorised to make such
the trustee is allowed the costs of the 152 , Lord Romilly wished the point in
petition, his costs will be taxed, in question to be submitted to the Lord
cluding those which he had deducted ; Chancellor, who directed the costs to
Re Hue's Trusts, 27 Beav. 337 ; and be paid out of the corpus .
where a trustee has deducted costs But the costs cannot be thrown on
improperly, an action may be brought corpus without service on the remain
against him for recovery of the costs derman ; Ex parte Peart, 17 L. J. N.
so improperly deducted, and the costs S. Ch . 168 ; Ex parte Fletcher, 17 L.
of the action will be thrown upon the J. N. S. Ch. 169 ; or on those who
trustee ; Beaty v. Curson , 7 L. R. Eq. sufficiently represent them ; Re Green
194. land's Trust, 1 W. R. 46. And as the
It has been held, though the policy necessity of serving the remainder
of the decision may be doubtful, that men would lead to great inconven
the trustee who is served with a peti ience and expense, it was resolved by
tion will not be allowed in taxation all the judges that for the future the
the costs of taking copies of the affi costs of a petition for payment of divi
davits filed by the parties beneficially dends should be thrown upon the income,
interested ; Re Lazarus , 3 K. & J. 555. and service upon the remaindermen be
Whether on a petition by tenant dispensed with; Re Marner's Trusts,
for life for payment of the dividends 12 Jur. N. S. 959 , 3 L. R. Eq. 432 ;
the costs should come out of the cor Re Cameron, 1 I. R. Eq. 258. The
pus or out of the income is a point on rule therefore now is, that upon a
which the practice has much varied. petition for payment of dividends
In favour of payment out of the corpus only, while the costs, charges and
are the following cases : Re Ross's expenses properly incurred by the
Trust, 1 Sim. N. S. 196, V. C. Cran trustee in paying the money into
worth ; Re Staples's Settlement, 13 Court will, where not previously de
Jur. 273, 273, V. C. E.; Re Field's ducted, be directed to be paid out of
Trusts, 16 Beav . 146 ; Re Butler's the corpus (Re Whitton's Trusts, 8 L.
Trust, 16 Jur. 324 ; and Re Leake's R. Eq. 353) , the costs of the peti
Trusts, 32 Beav . 135, Sir J. Romilly ; tioners and of all persons appearing
and in support of the contrary view ; on the petition will fall upon the in
Ex parte Fletcher, 12 Jur. 619 ; 17 L. come ; Re Mason's Trusts, 12 L. R.
J. N. S. Ch. 169 ; Ex parte Peart, 12 Eq. 111 ; Re Whitton's Trusts , 8 L. R.
Jur. 620 ; 17 L. J. N. S. Ch . 168, V. Eq . 353. It was held in some cases,
C. Knight Bruce ; Re Lorimer, 12 that the costs of the trustee's appear
Beav. 521 , Lord Langdale ; Re Bang ance upon the petition were an excep
ley's Trust, 16 Jur. 682 ; Re Ingram, tion, and ought to be borne by the
18 Jur. 811 , V. C. Kindersley ; Re corpus (Re Gordon's Trusts, 6 L. R.
Jepson, 6 March, 1859, V. C. Wood ; Eq. 335 ; Re Wood's Trusts, 11 L. R.
and Re Hamersley's Settlement, 23 Eq . 155 ) , but this has since been de
Beav. 267 , Sir J. Romilly. termined otherwise ; Re Evans ' Trusts,
In other cases the costs have been 7 L. R. Ch . App . 609 ; Re Smith's
divided, and the cost of the tenant Trusts, 9 L. R. Eq . 374. " It is said,"
for life thrown on the income, and observed L. J. James, " that a differ
the costs of the trustees and remain ence ought to be made with respect
derman on the corpus ; Re Whitling's to the appearance of the trustees, but
Settlement, 9 W. R. 830 ; Re Tchit I think that Re Marner's Trusts was
chagoff's Will, 12 W. R. 1100 ; Re intended to apply to all the costs of
Hadland's Settlement, 23 Beav. 266 . the petition ; and I am the more dis
In Re Turnley, 1 L. R. Ch. App. posed to follow that construction, be
1342
TRUSTEE RELIEF ACT. *1005
orders as from time to time shall seem necessary for better [* 1005 ]
carrying the provisions of this Act into effect (a ).
cause the reasonable course for a Parry's Trust, 12 Jur. 615 ; Re Smith ,
tenant for life to pursue, when about 3 Jur. N. S. 659.
to present a petition, is to write to If the money was paid in from the
the trustee and tell him that he does unreasonable claim of a person who
not seek to affect the corpus, but only is served with and appears upon the
wants his income, and therefore that petition, and opposes it, the Court has
there is no occasion for the trustee to jurisdiction to throw the costs upon
incur the costs of appearing. In such such wrongful claimant ; Re Arm
a case, if the title of the tenant for ston's Trusts, 4 N. R. 450 ; S. C. 4
life be clear the trustee ought not to De G. J. & S. 454.
appear." But it was probably in If the petition be presented by an
tended by the L. J. that the letter incumbrancer, whose debt will swal
must be accompanied with the tender low up the whole fund, and be served
of a sufficient sum to cover the ex on a subsequent incumbrancer with
pense of the trustee's consulting his notice that his costs of appearing will
solicitor ; [see now rule 27 ( 19 ) of be resisted, such subsequent incum
Order 65 of Rules of the Supreme brancer, if he appear, will not have
Court, 1883. ] his costs ; Roberts v . Ball, 24 L. J.
If a person not appearing by the N. S. Ch . 471.
affidavit to have an interest, but who The costs in all cases are in the
made a claim, be served with the discretion of the Court ; Roberts v.
petition and disclaim at the bar, he Ball, 24 L. J. N. S. Ch . 471.
will not be allowed his costs ; Re
(a) [This section has become obsolete, and was repealed by 42 & 43 Vict.
c. 78. The general rules and orders relative to this Act now in force are as
follows : -
SUPREME COURT FUNDS RULES, 1884 .
RULE 41. When a trustee or other person desires to lodge (1 ) funds in
Court in the Chancery Division , under the Act 10 & 11 Vict. c. 96, he shall
annex to the affidavit to be filed by him pursuant to the said Act a schedule in
the same printed form as the lodgment schedule to an order, setting forth
(a) His own name.
(b) The amount of money and description and amount of securities pro
posed to be lodged in Court.
(c) The ledger credit to be opened in the Pay Office books, in the matter
of the particular trust to which the funds are to be placed .
(d) A statement whether legacy or succession duty (if chargeable ) or any
part thereof has or has not been paid.
(e) A statement whether the money or the dividends on the securities so to
be lodged in Court, and all accumulations of dividends thereon, are
desired to be invested in any and what description of Government
securities, or whether it is deemed unnecessary so to invest the same.
The paymaster on receipt of an office copy of such schedule (which is to
be retained by him) shall issue the necessary direction for giving effect to
such lodgment.
[(1) 66 Lodge in Court " means pay or transfer into Court or deposit in
Court ; see Rule 3. ]
1343
*1006 TRUSTEE RELIEF ACT.
RULE 74. When it is stated in the schedule to the affidavit made pursuant
to Rule 41 , that it is desired that any money to be lodged in Court, or the
dividends accruing on any securities to be lodged in Court in pursuance of
the Act 10 & 11 Vict. c. 96 , and the accumulations thereof, shail be invested
in any description of Government securities, the Paymaster shall ( if or so
soon as such money shall amount to or exceed £40, or so soon as dividends
accruing on such securities shall amount to or exceed £ 10 ) invest the same
accordingly, without any order or further request for that purpose. If such
money does not amount to £40 ( and is not less than £ 10) , the Paymaster
shall place such money on deposit without a request for that purpose, unless
the said schedule contains a statement that it is deemed unnecessary to place
such money on deposit, or unless notice in writing be left at the Pay Office of
an order having been made , or of an intended application to the Court affect
ing such money, securities, or dividends. Dividends accruing on funds or on
investments or accumulations of funds lodged in Court under the said Act
prior to the commencement of the Chancery Funds Rules, 1872, may, when,
or so soon as they amount to or exceed £ 10, be invested without request.
CHANCERY FUNDS AMENDED ORDERS, 1874.
ORDER 5. A person having made a payment or transfer of money or secu
rities into, or a deposit of securities in Court under the above-mentioned Act
of the 10th & 11th Vict. c. 96, shall forthwith give notice thereof to the sev
eral persons named in his affidavit ( 11) to be made in pursuance of Rule 34
of the Chancery Funds Consolidated Rules , 1874, and the said Act, as inter
ested in or entitled to such money or securities (a) .
ORDER 6. The persons interested in or entitled to any money or securities
so paid or transferred into, or deposited in Court, in pursuance of the said
Act of the 10th & 11th Vict. c. 96, and named in the affidavit, or any of
such persons, or the person so paying or transferring into or depositing in
Court may apply by petition, or, in cases where the fund does not exceed 300!.
cash or 300l. in securities (b ) , by summons as occasion may require, respecting
[ (1 ) Where the person mentioned the recent Rules, Pearson, J., in order
in the affidavit could not be found, to protect the trustees and prevent
the Court declined to give any direc useless litigation, directed that notice
tions as to what would be sufficient of the affidavit should be served in
notice, but intimated extra-judicially the same way and upon the same par
what, under the circumstances, would ties as it would have been if the 34th
probably be held to be sufficient ; Re Rule of the Chancery Funds Consoli
Hardley's Trusts, 10 Ch. D. 664. It dated Rules, 1874, had remained in
will be observed that, under the Su force ; Re Stening's Trust, 50 L. T.
preme Court Funds Rules, 1884, which N. S. 586. ]
repealed the Chancery Funds Consoli (a) Where a cestui que trust was
dated Rules, 1874, it is not necessary believed to be in New York, but the
to state in the affidavit the names of address was unknown, the Court al
the persons interested in or entitled lowed publication in two New York
to the fund, and this order, though papers to be sufficient notice : Re
not expressly repealed, has become Goodsman's Will, W. N. 1870 , p . 152.
inapplicable to the practice under the [ (b) Now extended by Rules of
Rules of 1884 ; but in a case under the Supreme Court, Order 55, R. 2,
1344
TRUSTEE RELIEF ACT. *1006
the Lord Chancellor, Lord Keeper, and Lords Commissioners for the cus
tody of the Great Seal of Great Britain for the time being.
(5) to cases where the money or se where a person has gone abroad many
curities in Court do not exceed years ago and has not since been
£1,000 or £1,000 nominal value.] heard of ; Re Whitaker's Trusts, 47
[(c) This notice may be dispensed L. T. N. S. 507 ; 31 W. R. 114 ; Re
with under special circumstances, as Hansford, 7 W. R. 199, 254. ]
1345
[*1007 ] *No. II.
" An Act for the further Relief of Trustees." ( 28th July, 1849.)
[(a) Under these words the deben (b) Where of three trustees, one
ture stock of a Railway Company, the was invalided and two petitioned , the
consolidated stock of a Railway Com Court made the order ; Re Broad
pany, and India 4 per Cent. stock wood's Trust, 8 L. T. N. S. 632.
have been ordered into Court ; Re (c) The non-concurring trustee
Gledstane's Trusts, W. N. 1878 , p . 26. ] must be served with any petition
under the Act.
1346
# TRUSTEE RELIEF AMENDMENT ACT. *1008
"An Act to consolidate and amend the Laws relating to the Transfer of
Real and Personal Property vested in Mortgagees and Trustees." (5 Aug
ust, 1850.)
WHEREAS an Act was passed in the first year of the reign of His late
Majesty King William the Fourth, intituled An Act for amending the
Laws respecting Conveyances and Transfers of Estates and Funds vested in
Trustees and Mortgagees, and for enabling Courts of Equity to give effect to
their Decrees and Orders in certain cases : And whereas an Act was passed
in the fifth year of the reign of His late Majesty King William the
Fourth, intituled An Act for the Amendment of the Laws relative to Es
cheats and Forfeitures of Real and Personal Property holden in Trust :
And whereas an Act was passed in the second year of the reign of Her
present Majesty, intituled An Act to remove Doubts respecting Conveyances
of Estates vested in Heirs and Devisees of Mortgages : And whereas it is
expedient that the provisions of the said Acts be consolidated and en
larged, ― Be it therefore enacted by the Queen's most Excellent Majesty,
by and with the advice and consent of the Lords Spiritual and Temporal,
and Commons, in this present Parliament assembled , and by the author
ity of the same (a) .
I. ( This section was repealed by " The Statute Law Revision Act,
1875.")
II. And, whereas it is expedient to define the meaning in which cer
tain words are hereafter used : It is declared that the several words here
inafter named are herein used and applied in the manner following
respectively (that is to say) ,
The word " lands " shall extend to and include manors, mes
[* 1010] suages, tenements, and hereditaments, corporeal and in
corporeal, of every tenure or description, whatever may be
the estate or interest therein (a) :
(a) The Court has no jurisdiction order, and the property comprised
under the Trustee Acts to decide on rent-charges, the order was amended
a disputed question of title ; Re Drap by adding the word " hereditaments ; "
er's Settlement, 9 W. R. 805. Re Harrison, 1 Set. on Dec. 516 , 4th
(a ) In one case, where the word edit.
" lands " only was used in the vesting
1348
TRUSTEE ACT, 1850 . * 1011
The word " stock " shall mean any fund, annuity, or security transfer
able in books kept by any company or society established or to be
established, or transferable by deed alone, or by deed accompanied
by other formalities, and any share or interest therein (b) :
The word " seised " shall be applicable to any vested estate for life or
of a greater description, and shall extend to estates at law and in
equity (c ), in possession or in futurity, in any lands :
The word " possessed " shall be applicable to any vested estate less
than a life estate, at law or in equity, in possession or in expectancy,
in any lands:
The words " contingent right," as applied to lands, shall mean a con
tingent or executory interest, a possibility coupled with an interest,
whether the object of the gift or limitation of such interest or
possibility be or be not ascertained, also a right of entry, whether
immediate or future, and whether vested or contingent :
The words " convey " and " conveyance " applied to any person, shall
mean the execution by such person of every necessary or suitable assur
ance for conveying or disposing to another lands whereof such person
is seised, or entitled to a contingent right, either for the whole estate
of the person conveying or disposing, or for any less estate, together
with the performance of all formalities required by law to the
validity of such conveyance, including the acts to be performed by
married women and tenants in tail in accordance with the provisions
of an Act passed in the fourth year of the reign of His late Majesty
King William the Fourth, intituled An Act for the abolition of Fines
and Recoveries, and the substitution of more simple modes of Assur
ance (d), and including also surrenders and other acts which a tenant
of customary or copyhold lands can himself perform
* preparatory to or in aid of a complete assurance of such [ * 1011 ]
customary or copyhold lands (a):
The words " assign " and " assignment " shall mean the execution and
performance by a person of every necessary or suitable deed or act
(b) The word stock includes shares Goddard v. Macaulay, 6 Ir. Eq . Rep.
in joint-stock companies ; Re Angelo, 221 .
5 De G. & Sm . 278 ; and shares in (d) Thus, where there is an adult
ships, 18 & 19 Vict. c. 91 , s. 10. tenant for life with remainder to an
(c ) In suits where all parties bene infant tenant in tail with remainders
ficially interested are before the Court, over, a vesting order of the infant's
it is sufficient for the purchaser to take estate with the consent of the tenant
a conveyance of the legal estate, for for life as protector will bar the entail,
the equities of the parties are bound and all remainders over ; Powell v.
by the order of sale, and no vesting Matthews, 1 Jur. N. S. 973 ; see form
order as to the equitable estate is re of order, 1 Set. on Dec. p. 535, 4th
quired or will be made ; Re Williams's edit.
Estate, 5 De G. & Sm. 515. See the (a) See, as to copyholds, Rowley
analogous case under the prior Act, v. Adams, 14 Beav. 130, and post, p.
1025, note (a) .
1349
*1012 TRUSTEE ACT, 1850.
(b) As to the question upon the estate to an infant, and the executors
former Act, 1 W. 4, c. 60, whether prayed that the infant might be de
the word " trust "" included a " mort clared a trustee within the Act, and
gage," see note ( c) , p . 836 , 3d edit. that the property on payment of the
(c) A vendor, after a contract , has purchase-money might be conveyed
been held to be a trustee of shares in to the purchaser who had accepted
a joint-stock bank for the purchaser ; the title, and the prayer was sup
Re Angelo, 5 De G. & Sm. 278. But ported by the infant's counsel, the
in cases of real estate, if not univer Court made the order ; Re Lowry's
sally, at least where the alleged trus Will, 15 L. R. Eq . 78. [ This point
tee can possibly dispute the trust, the is, however, not likely to arise in the
constructive trust must first have been future in the case of freeholds , as by
declared by the decree of the Court, the Conveyancing and Law of Prop
and the infant heir of the vendor who erty Act, 1881 , s . 4, the personal
died intestate after having contracted representative of the vendor is em
to sell real estate is not a constructive powered to convey, where at his death
trustee for the purchaser unless so an enforceable contract is subsisting . ]
declared by decree ; Re Carpenter, 1 If the owner of copyholds covenant
Kay, 418 ; Re Burt, 9 Hare, 289 ; Re to surrender, and declares that in the
Dickenson, 17 L. T. 231 ; Cust v. meantime he will stand seised upon
Middleton, 7 Jur. N. S. 151 ; Re Weed trust for the covenantee, the cove
ing's Estate, 4 Jur. N. S. 707 ; Re nantor is a trustee within the Act ;
Faulder, W. N. 1866, p. 83 ; Jackson Re Collingwood's Trusts, 6 W. R. 536 ;
v. Milfield, 5 Hare , 538 ; Re Milfield, and see Steele v. Waller, 28 Beav. 466.
2 Ph. 254 ; [ Morgan v. Swansea Urban And even where there is no such de
Sanitary Authority, 9 Ch. D. 582. ] claration, yet if the contract be not
Re Wise, 5 De G. & Sm. 415, is dis in fieri, but has been carried out and
tinguishable ; and see Re Propert's completed, the covenantor is a trustee
Purchase, 22 L. J. N. S. Ch. 948. But within the Act ; Re Cuming, 5 L. R.
where a vendor died before accept Ch. App . 72 .
ance of the title having devised the If the cestui que trust has sold his
1350
TRUSTEE ACT, 1850. *1012
equitable interest, and the sale has ficial owner of stock standing in his
been completed, the purchaser is then name, subject to a provision or direc
the cestui que trust, and may apply for tion for his maintenance which is
a transfer of the legal estate ; Re vested in some other person, is a con
Wilkinson's Trust, 10 Jur. N. S. 716 ; structive trustee within the Act ;
Re Groom, 11 L. T. N. S. 336. Gardner v. Cowles, 3 Ch. D. 304. ]
Where a testator had signed an Where a feme covert is a trustee of
agreement to convey certain ease stock, the husband, as the Bank acts
ments in compromise of an action, an upon his directions, is a constructive
infant devisee, no title being in ques trustee within the Act ; Re Wood, 7
tion, was held to be a constructive Jur. N. S. 323. [ See now 45 & 46
trustee within the Act ; Re Taylor, Vict. c. 75. ]
W. N. 1866, p. 5. An heir who takes by descent, but
Where a compulsory sale had been has bound himself on the doctrine of
made to a railway company, and the election to hold upon the trusts of the
purchase-money had been paid and will, is a trustee within the Act ;
possession taken in the lifetime of the Dewar v. Maitland, 2 L. R. Eq . 834 .
ancestor, the case was held to be Three persons were appointed as
within the Act ; Re Russell's Estate, signees of a bankrupt , and one of
12 Jur. N. S. 224 ; and see Re Bad them resigned his office and went
cock, 2 W. R. 386. abroad, and his resignation was ac
A vendor who refused to convey cepted by the creditors, and the Court
after tender of a deed settled by the held that the one who had resigned
judge, or to receive the purchase and gone abroad was a trustee within
money, was declared a trustee, and the Act ; and an order was made for
on the purchaser paying his purchase vesting the legal estate in the two
money into Court, his solicitor was to acting assignees ; Re Joyce's Estate,
execute the conveyance for the ven 2 L. R. Eq. 576 ; 12 Jur. N. S. 1015.
dor ; Warrender v. Foster, 1 Set. on [(a ) A trustee may by virtue of
Dec. 438, 4th edit. this definition be appointed to per
An executor holding a legacy be form the duties of an executor ; Re
queathed to persons successively is Moore, 21 Ch . D. 778. ]
a constructive trustee ; Re Davis's (b) See Re Wakeford, 1 Jon. &
Trusts, 12 L. R. Eq. 214. Lat. 2 (under 1 W. 4, c. 60) ; Re
[ An infant who is the sole bene Jones, 6 Jur. 545.
1351
*1013 TRUSTEE ACT, 1850 .
(a) By 25 & 26 Vict. c. 37, s. 10, the Lords Justices is now, by the 7th
the Trustee Act, 1850, is made to section of 38 & 39 Vict. c. 77 , exer
extend to a trustee or trustees of the cisible by such of the Judges of the
private estates of Her Majesty, her High Court of Justice or Court of
heirs or successors , and any petition Appeal as are intrusted by the
or other proceeding for obtaining the Queen's sign manual with the care,
benefit of the Act shall be in the &c., of lunatics. ]
name or names of any person or per In cases of lunacy or unsoundness of
sons authorised by any writing under mind, the application must be made
the sign manual. exclusively to the Judges so intrusted
(b) Where the unsoundness of as aforesaid, as the other Judges
mind is contested, the case is not have no jurisdiction ; Jeffryes v.
within the Act ; Re Walker, Cr. & Drysdale, 9 W. R. 428 ; Re Ormerod,
Ph. 147 ; Re Campbell, 18 L. T. 202. 3 De G. & J. 249 , and cases there
(c) See definition of Trust, p . 1011. cited ; and see Re Irby, 17 Beav.
(d) See definition of Mortgage, 334 ; Herring v. Clark, 4 L. R. Ch.
ante, p. 1012. [ Semble, that the Court App. 167 ; Re Mason, 10 L. R. Ch.
has no jurisdiction under this section App . 273 ; [ Re Stamper, 46 L. T. N.
to make an order for the transfer of S. 372. ]
a mortgage vested in a lunatic . The As the section speaks of convey
lunatic's interest may, however, be ance and assignment, the Court has no
sold under sect. 116 of the Lunacy authority under it to vest a power
Regulation Act, 1853 ; Re Brown, 50 though an imperative one ; Re Porter's
L. T. N. S. 373. ] Will, 3 W. R. 583. See post, 1031.
(e) It was doubted whether the [Where the person of unsound
Lords Justices, though they were in mind is tenant in tail, it is not nec
fact intrusted under the Queen's sign essary in the vesting order to refer
manual with the care, &c ., of lunatics, to the Fines and Recoveries Act, or
had power to exercise the jurisdiction to the manner in which the trustee
given by the Act to the Lord Chan could have conveyed if sane . The
cellor intrusted, &c.; Re Waugh's order should simply direct the prop
Trust, 2 De G. M. & G. 279 ; Re Pat erty to vest for all the estate which
tinson, 21 L. J. N. S. Ch. 280. See, the person of unsound mind could
however, 15 & 16 Vict. c. 87, s. 15, convey if sane ; Mason v. Mason, 7
removing the doubt, and the 11th Ch . D. 707. ]
section of the Trustee Extension Act, Where one of several trustees is a
post, p . 1044. [ This jurisdiction of lunatic, and it is desired to obtain
1352
TRUSTEE ACT, 1850. * 1014
intrusted by virtue of the Queen's sign manual with the care of the per
sons and estates of lunatics, to make an order that such lands be
vested (a) in such a person or persons (b) in such manner and [ * 1014 ]
for such estate as he shall direct ; and the order shall have the
same effect as if the trustee or mortgagee had been sane, and had duly
executed a conveyance or assignment (c) of the lands in the same manner
for the same estate (d) .
IV. And be it enacted , that when any lunatic or person of unsound
mind shall be entitled to any contingent right in any lands upon any trust
or by way of mortgage, it shall be lawful for the Lord Chancellor,
intrusted as aforesaid, to make an order wholly releasing such lands from
such contingent right, or disposing of the same to such person or
persons as the said Lord Chancellor shall direct ; and the order shall
have the same effect as if the trustee or mortgagee had been sane,
and had duly executed a deed so releasing or disposing of the contin
gent right.
V. And be it enacted, that when any lunatic or person of unsound
mind shall be solely entitled to any stock or to any chose en action upon
any trust or by way of mortgage, it shall be lawful for the Lord Chan
cellor, intrusted as aforesaid, to make an order vesting in any person or
persons ( e) the right to transfer such stock, or to receive the dividends
or income thereof, or to sue for and recover such chose en action , or any
from the Court an appointment of [ (b) The Court will not on the
new trustees in the place of the petition of a person absolutely enti
lunatic and others with a vesting tled vest the property in the person
order, the petition should be intituled so entitled, but will appoint a new
in Lunacy and in the Chancery trustee and vest the property in him,
Division ; [ Re Pearson , 5 Ch . D. 982 ; leaving the petitioner to take further
Re Chell, 49 L. T. N. S. 196 ; ] Re steps to put an end to the trust ; Re
Davidson, 20 L. J. N. S. Ch. 644. Holland, 16 Ch . D. 672 ; but see Re
And see Trustee Extension Act, sect. Currie, 10 Ch . D. 93. ]
10. (c) See definition of Conveyance
As to a person " of unsound mind," and Assignment, pp. 1010, 1011 .
who is an infant, see p. 1015, post, (d) As to costs, see sect. 51 , and
note (c). post, p. 1037, note (b) .
As to the parties to be served, see [(e) The Court of Lunacy will not
p. 1033, post, note (c) . under this section make an order
(a ) The vesting order being a con vesting the right to transfer the stock
veyance, should be so worded as to in the persons beneficially entitled to
make it clear by the description what it, as that would in effect be an ad
property passes ; Re Ord's Trust, 3 ministration of the trust in Lunacy
W. R. 386. which the Court always refuses, but
Where the circumstances require on a petition intituled in the Chan
a severance of the property, the cery Division as well as in Lunacy
Court will make two vesting orders the Court will appoint the benefi
instead of one general one ; Brader ciaries new trustees of the settlement,
v. Kerby, W. N. 1872 , p. 174. and vest the right in them in that
capacity ; Re Currie , 10 Ch . D. 93. ]
1353
*1015 TRUSTEE ACT, 1850.
lawful for the Court of Chancery ( d) to make an order vesting such lands
in such person or persons in such manner and for such estate as the said
Court shall direct ( e ) ; and the order shall have the same effect
as if the infant trustee or mortgagee, had been twenty-one years [* 1016]
of age, and had duly executed a conveyance or assignment of the
lands in the same manner for the same estate (a).
VIII. And be it enacted, that where any infant shall be entitled to
any contingent right in any lands upon any trust or by way of mortgage,
it shall be lawful for the Court of Chancery to make an order wholly
releasing such lands from such contingent right, or disposing of the same
to such person or persons as the said Court shall direct ; and the order
shall have the same effect as if the infant had been twenty-one years of
age, and had duly executed a deed so releasing or disposing of the con
tingent right.
IX. And be it enacted, that when any person solely (b) seised or
possessed of any lands upon any trust ( c) shall be out of the jurisdiction of
infant need not be served with the would have to acknowledge the deed,
petition ; Re Tweedy, 9 W. R. 398 ; vested it in such person or persons as
Re Willan, Ib. 689. the executor and executrix should ap
(d) As to the County Courts, see point, and in default thereof, in the
post, p. 1045. executor and executrix ; Re Powell,
(e) It is now settled, notwithstand 4 K. & J. 338.
ing the doubts entertained at first (a) Tenant for life with remainder
(see Re Howard's Estate, 5 De G. & to an infant in tail. A vesting order
Sm. 435 ) , that the Court will make as to the estate of the infant with the
an order, vesting an estate on a pur consent of the tenant for life, will
chase to the uses commonly called bar the entail and remainders over ;
the uses to bar dower ; but will not Powell v. Matthews, 1 Jur. N. S. 973.
incorporate a declaration that no See the interpretation clause as to
woman shall be entitled to dower, the words " convey," and "' convey
this being no part of the conveyance ; ance."
but as uses to bar dower have not (b) [ It has been held] that a co
that effect as to a woman married parcener who has no beneficial inter
since Jan. 1 , 1834, a woman so mar est, but holds in trust for the other
ried will be entitled to dower unless coparcener, is solely seised as trustee
otherwise barred ; Re Lush's Estate, for such coparcener ; McMurray v.
5 De G. & Sm. 436 ; Davey v. Miller, Spicer, 5 L. R. Eq. 527 ; [ but see Re
17 Jur. 908. Greenwood's Trusts, 27 Ch . D. 359.]
An order has been made to vest (c ) An heir who takes the trust
the legal estate in the devisees of a estate by the disclaimer of the trus
mortgagor, subject to a charge cre tees, Wilks v. Groom, 6 De G. M. &
ated by his will ; Re Ellerthorpe, 18 G. 205, [ or by the death of the trus
Jur. 669. tee in the testator's lifetime, Re Gill,
Where the executor and executrix 1 Set. on Dec. 4th edit. 520, ] is a
(a married woman) of a mortgagee trustee within the section. And an
applied for a vesting order, the Court heir of a mortgage who had taken
instead of vesting the property in the possession has been held to be a trus
executor and executrix, when the tee for the mortgagee's executors ; Re
feme covert in order to part with it Skitter's Mortgage, 4 W. R. 791 ;
1355
* 1017 TRUSTEE ACT, 1850.
see post, 1019, note (b) ; [ and see 44 gees ; a new trustee was afterwards
& 45 Vict. c. 41 , s. 30. ] appointed in his place, and on a peti
A person had contracted to sell an tion for a vesting order, it was held
estate, which in equity had converted that he was a trustee within the mean
it into personalty, but before he exe ing of the Act for the transferee of
cuted the conveyance died intestate, the mortgage ; Re Walker's Mortgage
and it was held that the heir was a Trusts, 3 Ch . D. 209.]
trustee for the personal representa [ ( ) This section applies where
tive ; Re Badcock, 2 W. R. 386. See the trustee out of the jurisdiction is of
ante, p. 1011 , note (c) ; [and see 44 & unsound mind ; Re Gardner's Trusts ,
45 Vict. c. 41 , s . 4. ] 10 Ch. D. 29. ]
(d) A temporary absence, as where [ (a) The words " seised jointly "
the captain of a merchantman was are not limited to a legal joint ten
abroad on a voyage, is not within the ancy but are used in a wide sense, and
Act ; Hutchinson v . Stephens, 5 Sim. apply to the case of lands descending
499 (a case under the old Act, 11 G. to the co-heiress and the surviving heir
4 & 1 W. 4, c. 60) . [ A trustee may or (if the case fall within sect. 30 of
be treated as out of the jurisdiction, the Conveyancing and Law of Prop
although he appears by counsel ; Still erty Act, 1881 ) the personal repre
well v. Ashley, 1 Set. on Dec. 4th sentative of a deceased co-heiress of
edit . 520. ] the deceased trustee ; Re Greenwood's
(e) A defendant against whom an Trusts, 27 Ch. D. 359 ; Re Templer's
absolute decree of foreclosure upon Trusts, 4 N. R. 494 ; but see McMur
an equitable mortgage was made, but ray v. Spicer, 5 L. R. Eq. 527. ]
who could not be found, was deemed (b) The word " trustee " does not
to be a trustee for the mortgagee include a joint mortgagee. One of the
within the Act, and a vesting order mortgagees being out of the jurisdic
was made accordingly ; Lechmere v. tion, the mortgage money was paid to
Clamp, 30 Beav. 218 ; 31 Beav. 578. the joint account of the joint mortga
See p. 1026 , post, note (e) . gees, but the Court refused to make
[One of three joint mortgagees, an order ; Re Osborn's Mortgage, 12
who were trustees, refused to concur L. R. Eq. 392.
in a transfer of the mortgage which (c) The concluding words of this
was executed by the other mortga section (as a conveyance by one of
1356
TRUSTEE ACT, 1850. *1018
XI. And be it enacted , that when any person solely entitled to a con
tingent right in any lands upon any trust shall be out of the jurisdiction
of the Court of Chancery, or cannot be found, it shall be lawful for the
said Court to make an order wholly releasing such lands from such con
tingent right, or disposing of the same to such person or persons as the
said Court shall direct ; and the order shall have the same effect as if
the trustee had duly executed a conveyance so releasing or disposing of
the contingent right.
XII. And be it enacted, that when any person jointly entitled with
any other person or persons to a contingent right in any lands upon any
trust shall be out of the jurisdiction of the Court of Chancery, or cannot
be found, it shall be lawful for the said Court to make an order disposing
of the contingent right of the person out of the jurisdiction or who can
not be found, to the person or persons so jointly entitled as
aforesaid, or to such last-mentioned person or persons together [* 1018 ]
with any other person or persons ; and the order shall have the
same effect as if the trustee out of the jurisdiction, or who cannot be
found, had duly executed a conveyance so releasing or disposing of the
contingent right.
XIII. And be it enacted, that where there shall have been two or
more persons jointly seised or possessed of any lands upon any trust, and
it shall be uncertain which of such trustees was the survivor, it shall be law
ful for the Court of Chancery to make an order vesting such lands in
such person or persons in such manner and for such estate as the said
Court shall direct ; and the order shall have the same effect as if the sur
vivor of such trustees had duly executed a conveyance or assignment of
the lands in the same manner for the same estate.
XIV. And be it enacted, that where any one or more person or per
sons shall have been seised or possessed of any lands upon any trust, and
it shall not be known , as to the trustee last known to have been seised or
possessed, whether he be living or dead, it shall be lawful for the Court of
Chancery to make an order vesting such lands in such person or persons
in such manner and for such estate as the said Court shall direct ; and
the order shall have the same effect as if the last trustee had duly exe
cuted a conveyance or assignment of the lands in the same manner for
the same estate.
several trustees would have the effect If one of the co-heirs of a mortga
of severing the joint tenancy) led to gee be out of the jurisdiction, he is a
a doubt at one time whether the Court trustee within the 10th section of the
had power under this section to vest Act for the persons entitled to the
the lands in the joint owner within mortgage money, and the entirety on or
the jurisdiction and another as joint their petition may be vested in the co
tenants; Re Watt's Settlement, 9 Hare, heir within the jurisdiction ; Re Tem
106 ; Re Plyers' Trust, Ib. 220. But pler's Trusts, 4 N. R. 494 ; and see
the doubt has since been dispelled ; Re Hughes' Settlement, 2 H. & M. 695.
Smith v . Smith, 3 Drew. 72 ; Re Mar See p. 1019, note (b) .
quis of Bute's Will, Johns. 15.
1357
* 1019 TRUSTEE ACT, 1850 .
XV. And be it enacted, that when any person seised of any lands
upon any trust shall have died intestate as to such lands without an heir,
or shall have died and it shall not be known who is his heir or devisee, it
shall be lawful for the Court of Chancery to make an order vesting such
lands in such person or persons in such manner and for such estate as the
said Court shall direct ; and the order shall have the same effect as if the
heir or devisee of such trustee had duly executed a conveyance of the
lands in the same manner for the same estate (a).
XVI. And be it enacted, that when any lands are subject to a contin
gent right in an unborn person or class of unborn persons who upon com
ing into existence would in respect thereof become seised or possessed of
such lands upon any trust, it shall be lawful for the Court of Chancery
to make an order which shall wholly release and discharge
[ * 1019 ] * such lands from such contingent right in such unborn person
or class of unborn persons, or to make an order which shall vest
in any person or persons the estate or estates which such unborn person
or class of unborn persons would upon coming into existence be seised or
possessed of in such lands.
XVII. and XVIII.— ( These sections were repealed by the Extension Act.
See post, p. 1041.)
XIX. And be it enacted, that when any person to whom any lands
have been conveyed by way of mortgage shall have died (a) without having
entered into the possession or into the receipt of the rents and profits
thereof, and the money due in respect of such mortgage shall have been
paid to a person entitled to receive the same, or such last-mentioned
person shall consent to an order for the reconveyance of such lands (b),
(a ) This section does not apply to they were chattels real, it is conceived
leaseholds for years ; Re Mundel's that this section has ceased to have
Trust, 8 W. R. 683 ; Re Harvey, Set. any application to lands held by a
on Dec. 520, 4th edit. But a vesting trustee dying after the 31st Decem
order as to leaseholds for years may ber, 1881. ]
be made on the appointment of new [(a) Where the death has occurred
trustees under the 34th section ; Re since the 31st of December, 1881 , it
Driver's Settlement, 19 L. R. Eq. 352 ; is now unnecessary to have recourse
Re Rathbone, 2 Ch. D. 483 ; Re Dal to this section, see 44 & 45 Vict. c.
gleish's Settlement, 4 Ch . D. 143, 41 , s. 30. ]
reversing S. C. 1 Ch. D. 46 ; Re Mun (b) The personal representative of
del's Trust, 6 Jur. N. S. 880 ; Re Mat a mortgagee who had not taken posses
thew's Settlement, 2 W. R. 85. See, sion, or the assignee of the represen
however, Re Robinson's Will, 9 Jur. tative, may obtain an order vesting
N. S. 885. the legal estate, which has descended
[ An order vesting the property in to the heir, notwithstanding the word
a person absolutely entitled can be "re-conveyance " points in strictness
made under this section ; Re Godfrey's to a conveyance to the mortgagor ;
Trusts, 23 Ch. D. 205. Re Boden's Trust, 1 De G. M. & G.
Now that by 44 & 45 Vict. c. 41 , s. 57 ; 9 Hare, 820 ; Re Quinlan's Trust,
30, trust estates devolve upon the 9 Ir. Ch . Rep . 306 ; Re Lea's Trust,
legal personal representatives as if 6 W. R. 482 ; overruling Meyrick's
1358
|
then in any of the following cases it shall be lawful for the Court of
Chancery to make an order vesting such lands in such person or persons
in such manner and for such estate as the said Court shall direct ; that is
to say :
When an heir or devisee (c ) of such mortgagee shall be out of the juris
diction of the Court of Chancery or cannot be found :
When an heir or devisee of such mortgagee shall, upon a demand by a
person entitled to require a conveyance of such lands or a duly
authorised agent of such last-mentioned person, have stated in writ
ing that he will not convey the same, or shall not convey the same
for the space of twenty-eight days next after a proper deed ( d ) for
conveying such lands shall have been tendered to him by a person
entitled as aforesaid, or a duly authorised agent of such last-men
tioned person :
When it shall be uncertain which of several devisees of such mortgagee
was the survivor :
When it shall be uncertain as to the survivor of several de
visees of such mortgagee, or as to the heir of such mort- [ *1020]
gagee whether he be living or dead :
When such mortgagee shall have died intestate as to such lands, and
without an heir, or shall have died and it shall not be known who is
his heir or devisee :
And the order of the said Court of Chancery made in any one of the
foregoing cases shall have the same effect as if the heir or devisee or sur
viving devisee, as the case may be, had duly executed a conveyance or
assignment of the lands in the same manner and for the same estate.
XX. And be it enacted, that in every case where the Lord Chancellor,
intrusted as aforesaid, or the Court of Chancery, shall, under the pro
visions of this Act, be enabled to make an order having the effect of a
conveyance or assignment of any lands, or having the effect of a release
or disposition of the contingent right of any person or persons, born or
unborn, it shall also be lawful for the Lord Chancellor, intrusted as afore
said, or the Court of Chancery, as the case may be (a) , should it be
deemed more convenient, to make an order appointing a person to convey ,
Estate, 9 Hare, 116 ; and see Re 791 ; or under the 15th section, Re
Hewitt, 27 L. J. N. S. Ch. 302. Keeler, 11 W. R. 62.
If the mortgagee died intestate, (c) See the interpretation clause,
and was illegitimate, the Court will p. 1012, ante, as to the meaning of
make the vesting order on service of the word " devisee ."
the petition on the Crown ; Re Min (d) As to the instrument to be
chin's Estate, 2 W. R. 179. tendered in the case of copyholds, see
If the mortgagee had taken posses Rowley v. Adams,, 14 Beav. 130,
sion the executors of the mortgagee where the question arose upon the
may obtain an order for vesting in 17th section, since repealed.
them the legal estate, which has de- (a) In the case of an infant trus
scended to the heir, under the 9th tee being a "person of unsound mind,"
section ; Re Skitter's Trusts , 4 W. R. the case falls, not under lunacy, but
1359
*1021 TRUSTEE ACT, 1850.
or assign such lands, or release or dispose of such contingent right ; and the
conveyance or assignment, or release or disposition , of the person so
appointed (b) , shall, when in conformity with the terms of the order by
which he is appointed, have the same effect, in conveying or assigning
the lands, or releasing or disposing of the contingent right, as an order
of the Lord Chancellor, intrusted as aforesaid, or the Court of Chancery,
would in the particular case have had under the provisions of this Act.
And in every case where the Lord Chancellor, intrusted as aforesaid, or
the Court of Chancery, shall, under the provisions of this Act, be enabled
to make an order vesting in any person or persons the right to transfer
any stock transferable in the books of the Governor and Company of the
Bank of England, or of any other company or society established or to
be established, it shall also be lawful for the Lord Chancellor, intrusted
as aforesaid, or the Court of Chancery, if it be deemed more convenient,
to make an order directing the Secretary, Deputy Secretary, or Accountant
General for the time being of the Governor and Company of the Bank of
England, or any officer of such other company or society, at once to transfer
or join in transferring the stock to the person or persons to be
[* 1021 ] named in * the order ( a) ; and this Act shall be a full and com
plete indemnity and discharge to the Governor and Company of
the Bank of England, and all other companies or societies, and their
officers and servants, for all acts done or permitted to be done pursuant
thereto (b) .
XXI. And be it enacted, that as to any lands situated within the
Duchy of Lancaster or the counties palatine of Lancaster or Durham, it
shall be lawful for the Court of the Duchy Chamber of Lancaster, the
Court of Chancery in the county palatine of Lancaster, or the Court of
Chancery in the county palatine of Durham, to make a like order in the
under the ordinary jurisdiction of (a) The person here meant is not
the Court ; Re Arrowsmith's Trusts , a beneficiary, but where a person has
4 Jur. N. S. 1123 ; see p. 1015, ante, become absolutely entitled, the Court
note (c). can appoint him a trustee, and direct
(b) The conveyance should con a transfer to him ; Re Dickson's Set
tain a recital showing that it is made tlement, 27 L. T. N. S. 671 ; 21 W. R.
in obedience to the order of the Court, 220 ; [and see Re Currie, 10 Ch. D..
and should be executed by the per 93. ]
son appointed to convey in his own name ; (b) The Court under this section
though the late Vice-Chancellor of can only direct the bank officer to
England in a case arising upon the transfer in the place of the person
1 W. 4, c. 60, seems to have consid creating the difficulty, and therefore
ered that the execution by the person where the stock was standing in the
appointed to convey, of a deed pur names of two persons, one of whom
porting to be the conveyance of the was out of the jurisdiction , it was
trustee who refused, would, with a necessary to order the person within
mere reference in the attestation the jurisdiction to join in the trans
clause to the order appointing the fer ; Wade v. Hopkinson ; Hodgson
person to convey, be sufficient ; Ex v. Hodgson, 1 Set . on Dec. 521 , 4th
parte Foley, 8 Sim. 395. edit.
1360
TRUSTEE ACT, 1850. * 1022
same cases as to any lands within the jurisdiction of the same Courts
respectively as the Court of Chancery has under the provisions herein
before contained been enabled to make concerning any lands ; and every
such order of the Court of the Duchy Chamber of Lancaster, the Court of
Chancery in the county palatine of Lancaster, or the Court of Chancery
in the county palatine of Durham, shall, as to such lands, have the same
effect as an order of the Court of Chancery : provided always that no
person who is anywhere within the limits of the jurisdiction of the High
Court of Chancery shall be deemed by such local Courts to be an absent
trustee or mortgagee within the meaning of this Act (c) .
XXII. And be it enacted, that when any person or persons shall be
jointly entitled with any person out of the jurisdiction of the Court of
Chancery (d), or who cannot be found, or concerning whom it shall be
uncertain whether he be living or dead, to any stock or chose en action upon
any trust (e) , it shall be lawful for the said Court (ƒ ) , to make
an order * vesting the right to transfer such stock, or to receive [* 1022 ]
the dividends or income thereof ( a ) , or to sue for or recover such
chose en action, or any interest in respect thereof, either in such person or
persons so jointly entitled as aforesaid, or in such last-mentioned person or
persons together with any person or persons the said Court may appoint ( b) ;
(c) This section does not (nor (f) If the Court be asked to
does 17 & 18 Vict. c. 82 ) , enable the transfer the stock to new trustees
provincial Courts to make orders in appointed under a power, it must first
lunacy; Re Ormerod , 3 De G. & J. 249. be satisfied of the fitness of the per
(d) Where the trustee out of the sons proposed, and all parties inter
jurisdiction is incapacitated from lu ested must be served ; Re Maynard's
nacy or infancy, the power of the Settlement, 16 Jur. 1084. See p.
Court must be sought for in the sec 1030, note, and p . 1033, note (c) .
tions applicable to cases of lunatics (a) Of four trustees of stock one
and infants, and not in this section. was out of the jurisdiction , and M. R.,
Consequently, in a case arising be without disturbing the capital, vested
fore the Trustee Extension Act (see the right to receive the dividends in
3d section) , the Court had no au the three trustees. The Bank ap
thority to make a vesting order with pealed from this, on the ground that
respect to stock held by an infant the section did not authorise an un
trustee out of the jurisdiction ; Cra limited severance of the dividends
mer v. Cramer, 5 De G. & Sm. 312. from the capital, and the L. JJ. con
The order should recite the fact fined the order to the dividends to
that the trustee is out of the jurisdic accrue during the lives of the three
tion ; Re Mainwaring, 26 Beav. 172. trustees ; Re Peyton's Settlement, 2
As to what will amount to being De G. & J. 290 ; 25 Beav. 317.
out of the jurisdiction , see ante, p . (b) Where the stock is vested in
1016, note (d) . two trustees, one of whom is out of
(e) The husband of an executrix is the jurisdiction, the Court has no
a trustee within the Act ; Ex parte authority under the first branch of
Bradshaw, 2 De G. M. & G. 900 ; the section to vest the right in the
and see Re Wood, 3 De G. F. & J. 125. person who asks for it as being the
[But see now 45 & 46 Vict. c. 75, ss. absolute owner ; Re Brass's Trust, 4 W.
1, 2, 5, 18. ] R. 764 ; but see Ex parte Bradshaw,
1361
* 1023 TRUSTEE ACT, 1850.
and when any sole trustee (c ) of any stock or chose en action shall be out
of the jurisdiction of the said Court, or cannot be found, or it shall be
uncertain whether he be living or dead, it shall be lawful for the said Court
to make an order vesting the right to transfer such stock, or to receive
the dividends or income thereof, or to sue for and recover such chose en
action, or any interest in respect thereof, in any person or persons the
said Court may appoint.
XXIII. And be it enacted, that where any sole trustee (d) of any
stock or chose en action shall neglect or refuse to transfer such stock, or to
receive the dividends or income thereof, or to sue for or recover such chose en
action or any interest in respect thereof, according to the direction of the
person absolutely entitled thereto (e) , for the space of twenty-eight days
next after a request in writing (ƒ) for that purpose shall have
[*1023 ] been made to him by the person entitled thereto, it shall be
lawful for the Court of Chancery to make an order (a) vesting
the sole right to transfer such stock, or to receive the dividends or income
thereof (b), or to sue for and recover such chose en action, or any interest
in respect thereof, in such person or persons as the said Court may
appoint.
2 De G. M. & G. 900. It does not ing, or, which is more likely, because
appear from the report what jurisdic the petitioner's title was disputed.
tion the Court had to make the order (e) A tenant for life is not a per
in Re Ryan's Settlement, 9 W. R. 137. son absolutely entitled within the mean
The stock was standing in the names ing of the Act, except for the purpose
of two deceased trustees, and the sur of an application limited to the in
vivor of them had died intestate, and come only ; nor is one of two trus
as letters of administration to him in tees ; Mackenzie v. Mackenzie, 5 De
volved no inconvenience, but only G. & Sm. 338 ; more fully reported
expense, the case was not within the 16 Jur. 723. But persons duly
purview of the Act, except on the appointed new trustees are " abso
appointment of new trustees ; see pp. lutely entitled" ; Ex parte Russell, 1
1028, note ( a) , and 1031 , note (e) . Sim. N. S. 404 ; Re Baxter's Will, 2
(c) A. and B. being trustees, the Sm. & G. App. v.; Re Ellis's Settle
Master found that it was uncertain ment, 24 Beav. 426.
whether A. was living or dead, but (f) The case of a trustee refusing
that B. was living. Afterwards B. to obey the order of the Court was
died . Held that A. was not a sole not within this section ; Mackenzie v.
trustee within the meaning of the Mackenzie, 5 De G. & Sm. 338. But
22d section, as he was not originally see now sect. 4 of the Trustee Exten
the sole trustee ; Re Randall's Will, sion Act.
1 Drew. 401. (a) As to the person to be served
(d) Sole trustee may mean the under this and the following section,
rhole number of the co-trustees ; see see post, 1033, note (c) .
interpretation clause, ante, p. 1013. (b) The Court cannot, under this
Re Hartnall, 5 De G. & Sm. 111 ; [Re section, make any order as to divi
Hyatt's Trusts, 21 Ch. D. 846. ] See dends accrued due subsequently to
Re Spawforth's Settlement, 12 W. R. the date of the request, and à fortiori
978, in which case the order was re not as to prospective dividends ; Re
fused , but it does not appear whether, Hartnall, 5 De G. & Sm . 111. See
because the request was not in writ now sect. 4 of Extension Act.
1362
TRUSTEE ACT, 1850. *1024
XXIV. And be it enacted, that where any one of the trustees of any
stock or chose en action shall neglect or refuse to transfer such stock, or to
receive the dividends or income thereof, or to sue for or recover such chose en
action according to the directions of the person absolutely entitled thereto,
for the space of twenty-eight days next after a request in writing for that
purpose shall have been made to him or her by such person, it shall be
lawful for the Court of Chancery to make an order vesting the right to
transfer such stock, or to receive the dividends or income thereof, or to
sue for and recover such chose en action, in the other trustee or trustees of
the said stock or chose en action, or in any person or persons whom the
said Court may appoint jointly with such other trustee or trustees (c) .
XXV. And be it enacted, that when any stock shall be standing in the
sole name of a deceased person, and his or her personal representative shall
be out of thejurisdiction of the Court of Chancery, or cannot be found (d),
or it shall be uncertain whether such personal representative be living or dead,
or such personal representative (e) shall neglect or refuse to transfer such
stock, or receive the dividends or income thereof, according to the direction
of the person absolutely entitled thereto, for the space of twenty-eight days
next after a request in writing for that purpose shall have been made to
him by the person entitled as aforesaid, it shall be lawful for the Court
of Chancery to make an order vesting the right to transfer such stock,
or to receive the dividends or income thereof, in any person or persons
whom the said Court may appoint.
" XXVI. And be it enacted, that where any order shall have [ * 1024 ]
been made under any of the provisions of this Act vesting the
right (a ) to any stock in any person or persons appointed by the Lord
Chancellor, intrusted as aforesaid, or the Court of Chancery, such legal
right shall vest accordingly, and thereupon the person or persons so ap
pointed are hereby authorised and empowered to execute all deeds and
(c) See Re White, 5 L. R. Ch. App. whether he intends doing so , and has
698. neglected to transfer ; Re Ellis's Set
[ (d) Where stock was standing in tlement, 24 Beav. 426 ; [ and where
the names of two original trustees the executor of the executor of the
(both deceased) , and the survivor of last surviving trustee refuses to prove ;
them had died intestate, and there Re Price's Settlement, W. N. 1883 , p .
had never been any representation 202 ] ; and see under 1 W. 4, c . 60 ;
taken to his estate, but new trustees Cockell v. Pugh, 6 Beav. 293 ; Re
had been appointed under a power, Lunn's Charity , 15 Sim. 464 ; and the
the Court reappointed the new trus Court seems to have made a similar
tees, and made an order vesting the order when the next of kin who was
right to call for a transfer of and to entitled to take out administration
transfer the stock in the new trus had refused to make the transfer ;
tees ; Re Crowe's Trusts, 14 Ch . D. Re Stroud's Trusts, W. N. 1874 , p.
304, 610 ; and see Re Hilliard's Set 180 .
tlement Trust, 42 L. T. N. S. 79. ] (a) See Sect. 6 of the Trustee Ex
(e) This enactment applies where tension Act, and p. 1043, note (b) ,
the executor of a surviving trustee post.
has not proved, and declines to say
1363
*1025 TRUSTEE ACT, 1850.
manor whereof such lands are holden, then the lands shall, without any
surrender or admittance in respect thereof, vest accordingly ; and whenever,
under any of the provisions of this Act, an order shall be made either by
the Lord Chancellor, intrusted as aforesaid, or the Court of Chancery,
appointing any person or persons to convey or assign any copyhold or cus
tomary lands, it shall be lawful for such person or persons to do all acts
and execute all instruments for the purpose of completing the assurance
of such lands (b) ; and all such acts and instruments so done and executed
shall have the same effect, and every lord and lady of a manor, and every
other person, shall, subject to the customs of the manor and the usual
payments, be equally bound and compellable to make admittance to such
lands, and to do all other acts for the purpose of completing the assurance
thereof, as if the persons in whose place an appointment shall have been
made, being free from any disability, had duly done and executed such
acts and instruments.
XXIX. And be it enacted, that when a decree shall have been made
by any Court of equity directing the sale of any lands for the payment
of the debts (c ) of a deceased person, every person seised or possessed of
such lands, or entitled to a contingent right therein as heir, or under the
will of such deceased debtor, shall be deemed to be so seised or possessed
or entitled, as the case may be, upon a trust within the meaning of this
Act ; and the Court of Chancery is hereby empowered to make an
* order wholly discharging the contingent right, under the will [ * 1026 ]
of such deceased debtor, of any unborn person (a).
XXX. And be it enacted, that where any decree (b) shall be made by
any Court of equity for the specific performance of a contract concerning
any lands (c), or for the partition (d ) or exchange of any lands, or generally
when any decree shall be made for the conveyance or assignment of any
lands (e), either in cases arising out of the doctrine of election
[* 1027] or * otherwise, it shall be lawful for the said Court to declare that
any of the parties to the said suit wherein such decree is made are
(b) See Trustee Extension Act, s. making an absolute decree for fore
1, which applies not only to a decree closure and directing a conveyance,
but to any order of the Court. can add a declaration that the mort
(c) See such an order under this gagor is a trustee for the mortgagee,
Act and the Trustee Extension Act, and make a vesting order ; Lechmere
in Ex parte Mornington , 4 De G. M. v. Clamp (No. 2 ) , 30 Beav. 218 ; S.
& G. 537. [ In suits for the specific C. (No. 3 ), 31 Beav. 578 ; [ and in a
performance of a contract for a lease recent case of an equitable mortgage,
the Court has on several occasions where the mortgagor had died having
made orders under this section ap devised his estate to trustees upon
pointing a person to convey, or vest trust for sale, and the trustees having
ing the interests of unborn persons ; disclaimed, the legal estate descended
see Hodgson v. Bower, Howell v. to the heir of the mortgagor, who
Palmer, 1 Set. on Dec. 4th edit . pp. was an infant and was made a de
529, 530 ; Hall v. Hale, 51 L. T. N. S. fendant to a foreclosure action , the
226 ; but in Grace v. Baynton, 25 W. Court, in making the usual foreclos
R. 506, the late M. R. expressed his ure decree , inserted a declaration
opinion that in such a case the Court that." in case the plaintiffs were not
had no power either to appoint a redeemed within six months , the
person to convey in the place of a infant should be a trustee for them
party refusing to execute the lease, within the Act, and that his mother,
or to make a vesting order.] who was executrix of the mortgagor,
(d) In a partition suit, instead of should be ordered to convey on his
giving an infant entitled to a share a behalf " ; Foster v. Parker, 8 Ch. D.
day to show cause, the Court may 147 ; but where the mortgagor who
declare him to be a trustee of such had created an equitable mortgage
parts of the property as are allotted by deposit died intestate, and the
to other parties ; Bowra v. Wright, 4 estate descended to the infant heir
De G. & Sm. 265. subject to the mortgage, the judg
Where a lunatic was interested in ment directed the infant to convey
an undivided share, and a partition when he attained twenty-one , and
was decreed with a declaration that gave him a day to show cause ;
the lunatic was a trustee within the Mellor v. Porter, 25 Ch . D. 158.
Act, the L. JJ. authorised the com "This section applies to all cases
mittee of the estate to convey by an where there is a judgment against an
order made under the Trustee Act, infant for an immediate conveyance,
and under 16 & 17 Vict. c. 70 ; Re but this is not the form of a judg
Bloomar, 2 De G. & J. 88. But it ment for foreclosure in the case of
has since been held that the L. JJ. an equitable mortgagee," per Kay, J.
have jurisdiction to make a vesting Mellor v. Porter, ubi sup.] In another
order under the Trustee Act ; Re case the Court required a separate
Molyneux, 4 De G. F. & J. 365. application to be made ; Smith v.
(e) In a foreclosure suit by an Boucher, 1 Sim . & G. 72.
equitable mortgagee, the Court in In Weston v. Filer, 5 De G. & Sm.
1366
TRUSTEE ACT, 1850 . *1027
trustees of such lands or any part thereof, within the meaning of this
Act, or to declare concerning the interests of unborn persons ( a) who
might claim under any party to the said suit, or under the will or voluntary
settlement of any person deceased who was during his lifetime a party to
the contract or transactions concerning which such decree is made, that
such interests of unborn persons are the interests of persons who, upon
coming into existence, would be trustees within the meaning of this Act,
and thereupon it shall be lawful for the Lord Chancellor, intrusted as
aforesaid, or the Court of Chancery, as the case may be, to make such
order or orders as to the estates , rights and interests of such persons, born
or unborn, as the said Court or the said Lord Chancellor might under the
provisions of this Act make concerning the estates, rights and interests
of trustees born or unborn.
XXXI. And be it enacted , that it shall be lawful for the Lord Chan
cellor, intrusted as aforesaid, or the Court of Chancery, to make declara
tions and give directions concerning the manner in which the right to any
stock or chose en action vested under the provisions of this act shall be
exercised ; and thereupon the person or persons in whom such right
shall be vested shall be compellable to obey such directions and declara
tions by the same process as that by which other orders under this Act
are enforced (b) .
XXXII . And be it enacted, that whenever it shall be expedient (c)
608, where an estate had been ordered (c) Where a trustee appointed by
to be sold for payment of costs, there a will is an infant, the Court deems it
was no decree for a conveyance, so expedient to appoint a trustee in his
that the case was not within the place ; Re Porter's Trust, 2 Jur. N. S.
section ; and V. C. Parker considered 349 ; Re Gartside's Estate, 1 W. R.
that it could not be deemed a case of 196. But the order should be with
constructive trust, but as to which out prejudice to an application by
see Jackson v. Milfield , 5 Hare 538, the infant on his coming of age to be
and the other cases on sect. 18 of the restored to the trust ; Re Shelmerdine,
1 W. 4, c. 60 , note (e) , p. 839, of 3d 33 L. J. N. S. Ch. 474 ; [ Re Brunt, W.
edit. of this work. N. 1883 , p. 220.
In cases falling within the 30th sec Where a trustee is by age and in
tion, the vesting order may now be firmity incapable of acting as a trus
obtained at chambers ; [ Rules of the tee the Court considers it expedient
Supreme Court, Order 55, R. 2 ( 8 ) . ] to appoint a new trustee in his place ;
(a) The expression " unborn per Re Lemann's Trusts, 22 Ch . D. 633. ]
sons "" has been construed liberally, Where there is a great difficulty
and has been held to include the in obtaining administration to the de
"heirs of a person now living; Bas ceased trustee, or last surviving trus
nett v. Moxom, 20 L. R. Eq . 182. tee, the Court considers it expedient
(b) Under this section the Court to appoint new trustees ; Davis v .
has no jurisdiction to order the fund Chanter, 4 Jur. N. S. 272 ; Re Mat
into Court ; Re Parby, 29 L. T. 72. thews, 26 Beav. 463 ; or generally
But it can direct trustees to transfer where there is no personal represen
into court under the Trustee Relief tative of a surviving trustee ; Re
Act ; Re Thornton's Trusts, 9 W. R. Davis's Trust, 12 L. R. Eq . 214.
475. Where two trustees were desirous
1367
* 1028 TRUSTEE ACT, 1850 .
of retiring, and it was doubtful whether ing a trustee for misconduct or other
the power of appointing new trustees cause , the application to the Court
in the settlement applied to the case, should be by suit, as it was not the
it was deemed expedient to appoint intention of the Act to deprive retir
new trustees ; Re Woodgate's Settle ing trustees of their right to have
ment, 5 W. R. 448 ; Re Armstrong's their accounts taken in the presence
Settlement, Ib. of their cestuis que trust, or of their
A trustee had become bankrupt, lien upon the trust estate, for any
had never surrendered and absconded, balance due to them ; Re Blanchard,
and the Court under the Trustee Act, 7 Jur. N. S. 505. Even a solicitor,
1850 , and the Bankruptcy Act, 1849, though an officer of the Court, is not
s. 130, appointed a new trustee in his removable by petition against his
place ; Re Renshaw's Trusts , 4 L. R. will, on grounds of misconduct in the
Ch . App . 783. character, not of solicitor, but of trus
The three trustees appointed by a tee ; Re Blanchard, 3 De G. F. & J.
testator died in his lifetime, and the 131. But where one of the trustees
Court appointed new trustees ; Re had gone to Australia, and it was
Smirthwaite's Trusts, 11 L. R. Eq . 251 . not known where he was, the Court
Under the combined effect of this appointed a new trustee in his place ;
section, and of the Bankruptcy Act, Re Harrison's Trusts, 22 L. J. N. S.
[ 1883 , s. 147 , which in substance re Ch. 69. And where an assignee in
enacted the 117th section of the Bank bankruptcy had resigned his office
ruptcy Act, 1869 ] the court has power and gone abroad, and the creditors
to appoint a new trustee in the place had accepted his resignation, the
of a trustee who has become bank Court made a vesting order ; Re
rupt, whether he voluntarily resigns Joyce's Estate, 2 L. R. Eq . 576 ; and
or not ; Coombes v. Brookes, 12 L. R. in another case where a trustee had
Eq . 61 . gone abroad to reside permanently
(a ) The Court cannot under the the Court appointed a trustee in
Act remove a trustee who is willing his place ; Re Bignold's Settlement
to act ; Re Hodson's Settlement, 9 Trusts, 7 L. R. Ch . App. 223. [Un
Hare, 118 ; Re Hadley, 5 De G. & Sm. der the Bankruptcy Act, 1883, s. 147 ,
67 ; Re Garty's Settlement, 3 N. R. as was the case under the Bankruptcy
636 ; [ Re Combs, 51 L. T. N. S. 45. ] Act, 1869, s . 117 , a bankrupt trustee
Thus where one of the two trustees may be removed against his will, both
was residing out of the jurisdiction , these sections containing the words
but it did not appear whether such "whether voluntarily resigning or
residence was likely to be permanent, not "; Re Adams's Trusts, 12 Ch. D.
the Court refused to appoint a new 634. ]
trustee in his room ; Re Mais , 19 Jur. (b) Where there is a power of ap
608 ; see Re Lincoln Primitive Meth pointment of new trustees, and the
odists, 1 Jur. N. S. 1011. [ Where it donee is willing to exercise it, the
was alleged that a trustee was of un Court will not appoint new trustees
sound mind, but the trustee disputed upon a suggestion that the power will
his insanity and was unwilling to be be improperly exercised ; Re Hodson's
removed, the Court refused to make Settlement, 9 Hare, 118. But where
an order ; Re Combs, 51 L. T. N. S. the parties having the power of ap
45. ] If there be ground for remov pointing new trustees were resident
1368
TRUSTEE ACT, 1850 . *1028
or trustees, * shall have all the same rights and powers as he [ * 1030 ]
or they would have had if appointed by decree in a suit duly
instituted.
(a) The Court has no power under proper securities, the Court vested in
this section to vest the right to the stock the new trustees the right to call for
itself, but only the right to call for a a transfer of the funds to themselves,
transfer ; and an order professing to or to any purchaser or purchasers, the
vest the right to the stock was ac trustees undertaking to hold the pro
cordingly discharged ; Re Smyth's ceeds on the trusts of the settlement ;
Settlement, 4 De G. & Sm. 499 ; but Re Peacock, 14 Ch. D. 212. ]
see now sect. 6 of the Trustee Exten (1) A vesting order vests the
sion Act, and p. 1043, post, note (b) . estate from the date of the order ;
The Court has power under this Woodfall v . Arbuthnot , 3 L. R. P. &
section to vest the right as to stock D. 108 .
standing in the name of a deceased (c) A person contingently entitled
person who has no personal represen to a beneficial interest is within the
tative ; Re Herbert's Will, 8 W. R. meaning of the Act ; Re Sheppard's
272. [ See Re Crowe's Trusts, 14 Ch . Trusts, 8 Jur. N. S. 711 , reversed 1
D. 304, 610. ] N. R. 76 ; 4 De G. F. & J. 423.
The Court will not make a vesting In sales by the Court the purchaser,
order which would lend any sanction as beneficially interested in the prop
to a past breach of trust ; Re Har erty sold, is within the meaning of
rison, 22 L. J. N. S. Ch . 69. And the section ; Ayles v . Cox, 17 Beav.
the Court as distinct from the L. C. 584 ; Rowley v. Adams, 14 Beav. 130 .
& L. J. J. will not make a vesting And the plaintiffs in the suit, as
order where the old trustee in whom beneficially interested in the proceeds,
the property is vested is a lunatic ; are also within the meaning of the
Re Smith's Trusts , 4 I. R. Eq . 180 . section ; Re Wragg, 1 De G. J. & S.
[Where part of the trust funds 356. And of course the purchaser or
had been invested in unauthorised several purchasers and the plaintiffs
securities, and it was desired to sell can join as co-petitioners ; Rowley v.
them and reinvest the proceeds in Adams, 17 Beav. 130, see 135.
1373
*1033 TRUSTEE ACT, 1850 .
[* 1033] * trustee thereof; and that an order under any of the provisions
hereinbefore contained concerning any lands, stock, or chose en
action subject to a mortgage, may be made on the application of any person
beneficially interested in the equity of redemption, whether under disability
or not, or of any person interested in the monies secured by such mortgage.
XXXVIII . and XXXIX. ( These sections were repealed by " The Statute
Law Revision Act, 1875. ")
XL. And be it enacted, that any person or persons entitled in manner
aforesaid to apply for an order from the said Court of Chancery, or from
the Lord Chancellor intrusted as aforesaid , may, should he so think fit,
present a petition (a) in the first instance to the Court of Chancery, or to
the Lord Chancellor intrusted as aforesaid, for such order as he may
deem himself entitled to, and may give evidence by affidavit or other
wise (b) in support of such petition before the said Court, or the Lord
Chancellor intrusted as aforesaid, and may serve such person or persons
with notice of such petition as he may deem entitled to the service there
of(c).
Committees of a lunatic cestui que certificates and affidavits of identity ;
trust are not beneficially interested Re Hoskins, 4 De G. & J. 436.
within the meaning of the section ; Where it is proposed to appoint
Re Bourke, 2 De G. J. & S. 426. new trustees in substitution for existing
(a ) When a petition has been trustees the petition must be served
presented, it may be amended by on the old trustees, Re Sloper, 18
order of the Court by adding co Beav. 596 ; who will have their costs ;
petitioners without being re-answered ; Futvoye v. Kennard, 3 L. T. N. S. 687.
Re Cartwright's Trust, 8 W. R. 492 . [But where a trustee is permanently
(b) In practice the evidence ad resident abroad, Re Bignold's Settle
duced is universally by affidavit, but ment Trusts, 7 L. R. Ch . App . 223 ;
under the words " or otherwise " the Re Martin Pye's Trusts, 42 L. T. N. S.
applicant is not confined to evidence 247 ; or where a trustee has absconded
by affidavit. and cannot be found, Re Nicholson's
(c) In petitions for the appoint Trusts, W. N. 1884 , p . 76 ; Hyde v.
ment of new trustees, all the cestuis Benbow, W. N. 1884, p. 117 ; service
que trust ought, as a general rule, to is unnecessary.]
be served ; Re Richards' Trust, 5 De Where an order is asked against
G. & Sm. 636 ; Re Sloper, 18 Beav. recusant trustees under the 23d or
596 ; Re Fellows's Settlement, 2 Jur. 24th section, the trustees need not be
N. S. 62 ; Re Maynard's Settlement, served ; Re Baxter's Will, 2 Sim. &
16 Jur. 1084 ; and see Re Lonsdale's G. App. v.; and see the following
Trust, 14 Jur. 1101 ; Re Thomas's cases, decided under 1 Will. 4, c. 60,
Trust, 15 Jur. 187 ; Re Prescott's s. 8 ; Re Third Burnt Tree Building
Trust, 19 L. T. 371. But in special Society, 16 Sim. 296 ; Re Bradburne,
cases the Court relaxes the rule ; Re 12 L. J. N. S. Ch . 353.
Smyth's Settlement, 2 De G. & Sm. In orders against a lunatic trustee,
781 ; Re Blanchard , 3 De G. F. & J. the committee of the estate must be
137 ; Re Blanchard's Estate, 2 N. R. served, as the lunatic trustee may
386 ; [ Re Lightbody's Trusts, 52 L. have some claim for costs or other
T. N. S. 40. ] The devolution of the wise ; Re Saumarez, 8 De G. M. & G.
beneficial title may be traced by 390 ; and see Re Wood, 7 Jur. N. S.
affidavit, without strict evidence by 323. But in other cases service on
1374
TRUSTEE ACT , 1850 . *1034
* XLI. And be it enacted, that upon the hearing of any such [* 1034 ]
(motion or) (a) petition it shall be lawful for the said Court, or
for the said Lord Chancellor, should it be deemed necessary, to direct a
reference to one of the Masters in Ordinary of the Court of Chancery to
inquire into any facts which require such an investigation, or it shall be
lawful for the said Court or the said Lord Chancellor to direct such
(motion or) (a) petition to stand over, to enable the petitioner or petitioners
to adduce evidence or further evidence before the said Court, or before the
said Lord Chancellor, or to enable notice or any further notice of such
(motion or) petition to be served upon any person or persons.
XLII. And be it enacted, that upon the hearing of any such (motion
or) (b) petition, whether any (certificate or ) report from a Master shall
have been obtained or not, it shall be lawful for the Court, or the Lord
Chancellor, intrusted as aforesaid, to dismiss such (motion or) petition,
with or without costs, or to make an order thereupon in conformity with
the provisions of this Act.
XLIII. And be it enacted, that whensoever in any cause or matter,
either by the evidence adduced therein, or by the admissions of the parties,
or by a report of one of the Masters of the Court of Chancery, the facts
necessary for an order under this Act shall appear to such Court to be
sufficiently proved, it shall be lawful for the said Court , either upon the
hearing of the said cause, or of any petition or motion in the said cause or
matter, to make such order under this Act (c).
the lunatic or his committee was a person out of the jurisdiction ; Re
deemed unnecessary ; Re East, 8 L. Wycherley's Trusts, 1 L. R. Ir. 12. ]
R. Ch . App. 735 ; Re Green, 10 L. R. [ (a) The words " motion or " in
Ch. App. 272. The guardian of the this section are repealed by " The
infant heir of a trustee need not be Statute Law Revision Act, 1875."]
served with a petition for a vesting [ (b) The words " motion or " and
order upon the appointment of new "certificate or " in this section are
trustees ; Re Little, 7 L. R. Eq . 323. repealed by "The Statute Law Revis
But the adult heir of the last surviv ion Act, 1875."]
ing trustee must be served, for he (c) An order may be made in a
may have some claim to costs ; Re suit without a petition ; Wood v. Beetle
Oxenham's Trusts, W. N. 1875, p. 6 . stone, 1 K. & J. 213 ; Collard v. Roe,
[ But see 44 & 45 Vict. c. 41 , S. 4 Jur. N. S. 431 ; 4 De G. & J. 525 ;
30.] Lechmere v. Clamp, 9 W. R. 860 ;
Where an estate is subject to an Hargreaves v. Wright, 1 W. R. 408 ;
annuity, a vesting order may be made Hughes v. Wells . 2 W. R. 575 ; but
without service on the annuitant ; Re see Gough v. Bage, 25 L. T. N. S.
Winteringham's Trust , 3 W. R. 578. 738. The High Court has no such
As to service on the lord of a jurisdiction to make a vesting order
manor, in respect of copyholds, see respecting property which is vested
ante, p. 1025, note (a) . in a lunatic, but there must be a peti
As to service on the remainderman, tion in lunacy ; Jeffryes v. Drysdale,
where the trust estate is a term of 9 W. R. 428. [ In Frodsham v . Frod
years, see ante, p. 1031 , note (d) . sham, 15 Ch. D. 317 , it was held by
[ The Court has jurisdiction to the Court of Appeal, reversing the
order service of the petition upon late M. R., that, having regard to the
1375
*1035 TRUSTEE ACT, 1850.
shall have been duly appointed by any power contained in any deed or
instrument, or by the decree of the said Court of Chancery, or by order
made upon a petition to the said Court under any statute authorising
the said Court to make an order to that effect in a summary way upon
petition.
* XLVI. And be it enacted, that no lands , stock, or chose en [*1036]
action vested in any person upon any trust or by way of mortgage,
or any profits thereof, shall escheat or be forfeited to her Majesty, her
heirs, or successors, or to any corporation , lord or lady of a manor, or
other person, by reason of the attainder or conviction for any offence of
such trustee or mortgagee, but shall remain in such trustee or mortgagee,
or survive to his or her co-trustee, or descend or vest in his or her repre
sentative, as if no such attainder or conviction had taken place (a) .
XLVII. And be it enacted, that nothing contained in this Act shall
prevent the escheat or forfeiture of any lands or personal estate vested in
any such trustee or mortgagee, so far as relates to any beneficial interest
therein of any such trustee or mortgagee, but such lands or personal
estate, so far as relates to any such beneficial interest, shall be recoverable
in the same manner as if this Act had not passed (b ).
XLVIII. And be it enacted, that where any infant or person of un
sound mind shall be entitled to any money payable in discharge of any
lands, stock, or chose en action conveyed, assigned, or transferred under
the Act, it shall be lawful for the person by whom such money is payable
to pay the same into the Bank of England, in the name and with the
privity of the Accountant- General, in trust in any cause then depending
concerning such money, or, if there shall be no such cause, to the credit
of such infant or person of unsound mind, subject to the order or dispo
sition of the said Court ; and it shall be lawful for the said Court, upon
petition in a summary way, to order any money so paid to be invested in
the public funds, and to order payment or distribution thereof, or pay
ment of the dividends thereof, as to the said Court shall seem reasonable ;
and every cashier of the Bank of England who shall receive any such
money is hereby required to give to the person paying the same a receipt
for such money, and such receipt shall be an effectual discharge for the
money therein respectively expressed to have been received .
XLIX. And be it enacted, that where in any suit commenced or to
be commenced in the Court of Chancery it shall be made to appear to
the Court by affidavit that diligent search and enquiry has been made
apply to the judge at chambers for 4, c. 23. See now section 8 of the
any order which may be made by such Extension Act, giving the Court
judge, notwithstanding any lunacy ; power to appoint new trustees in the
Re Davenport's Charity, 4 De G. M. place of persons convicted of felony .
& G. 839 ; and see p. 852 , supra. (b) This is a re-enactment of sect.
(a) This section is a re-enactment 5 of the Escheat and Forfeiture Act.
almost verbatim of section 3 of the See now 33 & 34 Vict. c. 23.
Escheat and Forfeiture Act, 4 & 5 W.
1377
*1037 TRUSTEE ACT, 1850 .
after any person made a defendant, who is only a trustee, to serve him with
the process of the Court, and that he cannot be found, it shall be lawful
for the said Court to hear and determine such cause, and to make such
absolute decree therein against every person who shall appear to them to
be only a trustee, and not otherwise concerned in interest in the matter
in question, in such and the same manner as if such trustee had been
duly served with the process of the Court, and had appeared and
[ * 1037] * filed his answer thereto, and had also appeared by his counsel
and solicitor at the hearing of such cause : Provided always, that
no such decree shall bind, affect, or in anywise prejudice any person
against whom the same shall be made, without service of process upon
him as aforesaid, his heirs, executors, or administrators, for or in respect
of any estate, right, or interest which such person shall have at the time
of making such decree for his own use and benefit, or otherwise than as
a trustee as aforesaid (a) .
L. (This section was repealed by "The Statute Law Revision Act,
1875.")
LI. And be it enacted, that the Lord Chancellor intrusted as afore
said, and the Court of Chancery, may order the costs and expenses of and
relating to the petitions, orders , directions, conveyances, assignments,
and transfers to be made in pursuance of this Act, or any of them, to
be paid and raised out of or from the lands or personal estate, or the
rents or produce thereof, in respect of which the same respectively shall
be made, or in such manner as the said Lord Chancellor or Court shall
think proper (b).
* LII. And be it enacted, that upon any petition being pre- [* 1038]
sented under this Act to the Lord Chancellor intrusted as afore
said, concerning a person of unsound mind, it shall be lawful for the said
Lord Chancellor, should he so think fit, to direct that a commission in the
(a) A decree made before the pass debts ; and consequently where the
ing of this Act is within the operation decree for sale had been made in order
of this clause ; Wake v. Wake , 17 to provide a fund available for the
Jur. 545. The decree or order binds payment of costs, the Court had no
only the parties to the suit, and there power to make a vesting order ; Wes
fore in an administration suit, if the ton v . Filer, 5 De G. & Sm. 608. This
legal estate has descended to the heir enactment remedies the inconven
of the testator who is not a party, the ience ; Hancox v. Spittle, 3 Sm. & G.
Court has no jurisdiction to make a 478. And now in cases falling under
vesting order ; Gunson v. Simpson, 5 this section, a vesting order may be
L. R. Eq. 332 ; and see Gough v. Bage, obtained in Chambers ; see [ Rules of
W. N. 1871 , p. 237 ; 25 L. T. N. S. the Supreme Court, Order 55, R. 2,
738. Art. 8. The section applies to the
[ By 47 & 48 Vict. c. 71 (The Intes case where the person to convey is not
tates Estates Act, 1884) , s . 5, on a sale under disability, per V. C. Bacon ; Re
under that Act of any estate or inter Lee, Kenyon v. Lee, 1 Set. on Dec.
est of the Crown, this section is to 4th edit. 537 ; Beckett v. Sutton, 19 Ch.
apply as if such estate or interest were D. 646 ; but see Strong v. Padmore,
vested in a subject. ] contra, 1 Set. on Dec. 4th edit. 537. ]
[(b) This section applies to a sale [ (d) A devisee of real estate
under the Partition Acts ; Beckett v. charged with debts who had become a
Sutton, 19 Ch . D. 646. ] lunatic , and had subsequently by his
(c) The 29th section of the Trustee committee, with the sanction of the
Act, 1850 , applied only to decrees Master in Lunacy, commenced an ac
directing a sale for the payment of tion for the administration of his tes
1382
TRUSTEE EXTENSION ACT. *1041
tator's estate, is bound by an order a vesting order against her late hus
for sale of the real estate made in the band.
action, and is a trustee within the sec (e) Under the 17th & 18th sections
tion ; Re Stamper, 46 L. T. N. S. 372. ] of the Trustee Act, 1850, the power
(a ) And the Court of Chancery of the Court arose only upon written
had jurisdiction even where the party refusal to convey, or neglect or refusal
seised or possessed was of unsound so to do after tender of a proper deed.
mind, but not found lunatic ; Herring The former contingency was of rare
v. Clark, 4 L. R. Ch. App . 167 . occurrence, and considerable difficulty
(b) As to the persons to present was often experienced in bringing the
the petition where lands are sold in case within the terms of the latter.
several lots to different purchasers , In copyholds , for instance, vested in a
see ante, p. 1032, note (c) ; 1038, note. feme covert, who could only surrender
As to the costs of the petition, see with consent of the husband, and on
ante, p. 1038, note. being privately examined, how could
(c) A married woman is capable of a proper deed be tendered ? See
refusing; Rowley v. Adams, 14 Beav. Rowley v. Adams, 14 Beav. 130.
130. Where a mortgagor covenanted to
(d) In Knight v. Knight, 14 L. T. surrender copyholds to the mortgagee,
N. S. 161 , a divorced woman obtained and refused to surrender for twenty
1383
*1042 TRUSTEE EXTENSION ACT.
III. That when any infant shall be solely entitled to any stock
[* 1042 ] upon * any trust, it shall be lawful for the Court of Chancery to
make an order vesting in any person or persons the right to
transfer such stock, or to receive the dividends or income thereof (a) ;
and when any infant shall be entitled jointly with any other person or
persons to any stock upon any trust, it shall be lawful for the said Court
to make an order vesting the right to transfer such stock, or to receive
the dividends or income thereof, either in the person or persons conjointly
entitled with the infant, or in him or them together with any other per
son or persons the said Court may appoint (b) .
IV. That where any person shall neglect or refuse to transfer any
stock or to receive the dividends or income thereof, or to sue for or
recover any chose en action, or any interest in respect thereof, for the
space of twenty-eight days next after an order of the Court of Chancery
for that purpose shall have been served upon him (c ) , it shall be lawful
for the Court of Chancery to make an order (d) vesting all the right of
such person to transfer such stock, or to receive the dividends or income
thereof, or to sue for and recover such chose en action, or any interest
eight days, the Court made a vesting and vested the right to receive the
order, and service on the mortgagor, dividends in the guardian during the
who could not be found, was dispensed infant's minority ; Re Morgan, 1 Set.
with ; Re Crowe's Mortgage, 13 L. R. on Dec. 516, 4th edit.
Eq. 26. (b) In Cramer v. Cramer, 5 De G.
(a) An order was once made by & Sm. 312, Vice-Chancellor Parker
mistake under this Act, where the in held that, the Trustee Act, 1850,
fant was entitled beneficially ; Re having conferred no general power in
Westwood, 6 N. R. 61 ; but the order the case of an infant trustee of stock
was afterwards corrected, and made within the jurisdiction, the Court had
under the proper Act, viz., 1 W. 4, c. no authority to make a vesting order
65, s. 32 ; Re Westwood, 6 N. R. 316. with regard to stock held by an in
Agents of executors invested a fant trustee out of the jurisdiction.
sum of stock in the names of infants, Hence this clause ; see Sanders v.
who had an interest under the will, Homer, 25 Beav. 467.
instead of in the names of the execu [The section applies to the case of
tors, and the Court made a vesting stock to which an infant is benefi
order for the transfer into the names cially entitled standing in the joint
of the executors ; Rives v. Rives, W. names of the infant and another per
N. 1866, p. 144 ; 14 L. T. N. S. 351 . son ; Re Harwood, 20 Ch. D. 536. ]
So where executors had invested (c) In Mackenzie v. Mackenzie, 5
stock in the names of themselves and De G. & Sm. 338, it was held that the
an infant, and the infant was the sur case of a person refusing to transfer
vivor ; Gardner v. Cowles, 3 Ch. D. stock in obedience to an order of the
304. Court, was not provided for in the
Where stock was standing in the Trustee Act, 1850. Hence the pres
names of three trustees and (lege for) ent remedial enactment.
an infant, and two of the trustees (d) The order under this section
were dead and the third was out of need not be made upon a petition,
the jurisdiction, the Court appointed but may be made upon motion ; Re
a guardian, and allowed maintenance, Holbrook's Will , 5 Jur. N. S. 1333.
1384
TRUSTEE EXTENSION ACT. * 1043
all companies and associations whatsoever, and all persons, for any act
done pursuant thereto ; and it shall not be necessary for the Bank of
England, or such company or association or person, to enquire con
cerning the propriety of such order, or whether the Lord Chancellor
intrusted as aforesaid, or the Court of Chancery had jurisdiction to
make the same .
VIII. That when any person is or shall be jointly or solely seised or
possessed of any lands or entitled to any stock, upon any trust,
[* 1044] and such person has been or shall be convicted of felony, it
shall be lawful for the Court of Chancery, upon proof of such
conviction, to appoint any person to be a trustee in the place of such convict,
and to make an order for vesting such lands, or the right to transfer such
stock, and to receive the dividends or income thereof, in such person to be
so appointed trustee ; and such order shall have the same effect as to lands
as if the convict trustee had been free from any disability and had duly
executed a conveyance or assignment of his estate and interest in the
same.
IX. That in all cases where it shall be expedient to appoint a new
trustee, and it shall be found inexpedient , difficult, or impracticable so
to do without the assistance of the Court of Chancery, it shall be lawful
for the said Court to make an order appointing a new trustee or new
trustees, whether there be any existing trustee or not at the time of making
such order (a) .
X. In every case in which the Lord Chancellor intrusted as afore
said (b) has jurisdiction under this Act, or the Trustee Act, 1850, to
order a conveyance or transfer of land or stock, or to make a vesting
order, it shall be lawful for him also to make an order appointing a new
trustee or new trustees, in like manner as the Court of Chancery may do
in like cases, without its being necessary that the order should be made
in Chancery as well as in Lunacy, or be passed and entered by the Regis
trar of the Court of Chancery (c) .
XI. That all the jurisdiction conferred by this Act (d) on the Lord
Chancellor, intrusted by virtue of the Queen's sign manual with the care
of the persons and estates of Lunatics, shall and may be had,
exercised, and performed by the person or persons for the time [ * 1045 ]
being intrusted as aforesaid.
XII. That this Act shall be read and construed according to the
definitions and interpretations contained in the second section of the
Trustee Act, 1850, and the provisions of the said last-mentioned Act
(except so far as the same are altered by or inconsistent with this Act)
shall extend and apply to the cases provided for by this Act, in the same
way as if this Act had been incorporated with and had formed part of
the said Trustee Act, 1850.
XIII. That every order to be made under the Trustee Act, 1850, or
this Act, which shall have the effect of a conveyance or assignment of any
lands, or a transfer of any such stock as can only be transferred by
stamped deed, shall be chargeable with the like amount of stamp duty as
it would have been chargeable with if it had been a deed executed by
the person or persons seised or possessed of such lands, or entitled to
such stock ; and every such order shall be duly stamped for denoting
the payment of the said duty.
appointed, and three died and the J. N. S. Ch . 280. The doubts there
fourth was a lunatic, a petition for raised as to the jurisdiction of the
the appointment of four new trustees Lords Justices under the Trustee
was held to be properly intituled Act, 1850, were removed by 15 & 16
under this section in Lunacy only ; Vict. c. 87, s . 15 (date of Royal
Re Owen, 4 L. R. Ch. App. 782 ; Re Assent 1 July, 1852) , and therefore
Mason, 10 L. R. Ch. App. 273 ; see after the Trustee Extension Act, to
Trustee Act, 1850, s . 32, and ante, p . which the Royal Assent was given on
1013, note (e). 30 June, 1852. See ante, p. 1013,
(d) See Re Waugh's Trust , 2 De note (e).
G. M. & G. 279 ; Re Pattinson, 21 L.
1387
INDEX .
I
INDEX .
DEBTOR'S ACTS (32 & 33 Vict. c. 62 ; 41 & 42 Vict. c. 54) , 900 note (b).
defaulting trustee when liable to imprisonment under, 916 et seq.
1444
INDEX.
INDEX.
1619
TABLE OF AMERICAN CASES.
v. Sparhawk,
Spear v. Spear, 423 v. Gregg, 1106
v. Tinkham, 1258 v. Stevens, 197
Speidel v. Henrice, 1158 Stevenson's App., 1134
Speigle v. Meredith, 575 Stevenson v. Stevenson, 1134
Speiglemyer v. Crawford, 247 Stewart v. Duffy, 248
Spencer's App . , 249, 656 v. Fletcher, 390
Spencer v. Spencer, 363, 1318 v. Kirkland, 57, 398
Spering's App., 424 v. Mather, 248
Spindle v . Shreve, 133 v. M'Minn, 48
Spooner v. Lovejoy, 177 Still v . Ruby, 42
Sprague v. Sprague, 149 Stimson v. Fries, 688
v. Woods, 73, 198 Stine . Wilkson , 574
Sprigg v. Bank, 250 Stinson v. Stinson, 390
Spring v. Hight, 197 St. Mary's Church v. Stockton, 614
Springer v. Berry, 39 Stockbridge v. Stockbridge, 289, 573
v. Springer, 195 Stokes's App., 294
Spurr v . Scoville, 58 Stokes v. Payne , 574
Staats v. Bergen, 654 Stone v. Bishop , 95
Stackpole v. Robbins, 69 v. Denny, 247
Stagg v. Beekman, 329 v. Hackett, 92, 311, 1103
Stoll v . Cincinnati, 574, 613 v. King, 75
v. Macalester, 575 v. Wood, 249
Stanley v. Brannon, 197 Stonestreet v. Doyle, 717
v. Colt, 718 Storrs v. Barker, 248
Stanwood v. Stanwood, 994 v. Scougale, 250
Star Co. v. Palmer, 656 Stout v. Levan, 994
Starke v. Starke, 994 v. Smith, 248, 250
Starkweather v . Am. Bible Soc. , 718 Stowe v. Bowen, 362
Starr v. Ellis, 976 Stratton v. Dialogue, 195
v. Starr, 72 Street v. Hallett, 200
v. Wright, 30 Stretch v. Gowdey, 389
State v. Brown, 278 Strimpfler r. Roberts, 179, 194
v. Foy, 1206 Strong v. Carrier, 689
v. Guilford, 347, 362 r. Glasgow, 63
v. Hearst, 278 Willis, 271
v. Koch, 976 Stroud v. Barnett, 703, 1106
v. Nicols, 278 Stuart v. Kissam, 379
v. Rusk, 37 Stucky v. Stucky, 196
v. Simpson, 424 Sturgess . Knapp, 871, 1134
v. Tolan, 1318 Sturtevant . Jaques, 198
v. Warren, 718 Sudbury v. Belknap, 37
State Road in Lehigh & Buck Sugden v. Crossland, 271
Cos., 356 Summers . Rose, 74
Statesville Bark v . Simonton , 251 Sumrall v. Chaffin, 575
Stearly's App., 386, 388 Suter . Hilliard, 716
Stearns v. Brown, 467 Sutherland . Brush , 369
v. Palmer, 17 r. Meehan, 195
1631
TABLE OF AMERICAN CASES.