xr, ^0^ OlorttpU Ham irl^nol ICtbrary iHaraliall lEqutta Olollerttou (Sift of IE. 31. MarBhall, IC.iO. 1. 1B94 CORNELL UNIVERSITY LIBRARY 3 1924 085 503 773 Cornell University Library The original of this bool< is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924085503773 A TREATISE ON EQUITY JURISPRUDENCE, With particular reference to the present conditions of Jurisprudence in the United States. BY Christopher G. Tiedeman, Author of " Real Property," " Police Power," " Sales of Personal Property," Etc., and Professor of Law in the University of the City of New York. ST. LOUIS: THE F. H. THOMAS LAW BOOK CO. 1893. I3^^m Entered according to Act of Congress, in the year 1893, by CHRISTOPHER G. TIEDEMAN, In the Office of the Librarian of Congress, at Washington. St. Louis, Mo.; Press of Continental Priatir.g Co. PREFACE. In this one volume, the author has succeeded, with the ingenious aid of the publishers, in presenting the entire sub- ject of equity jurisprudence, as it now obtains in the United States. All temptations to enter into historical and philo- sophical disquisitions upon this remarkable branch of law have been successfully resisted, in order to bring within the compass of one portable volume, an exposition of all the principles of equity jurisprudence which now control human action, and determine civil rights. Inasmuch as the entire remedial law has undergone a radical change in a majority of the states, and has been materially modified in the remaining states, and in consideration of the demand for space in the presentation of the substantive principles of equity, which have not been materially affected by this modern legislation, the author has contented himself with a general discussion of equitable remedies and their nature, and has left the details of equity procedure and practice, as modified by statute, to be found in works upon procedure and practice. It is believed that the book has thereby been made more acceptable to the profession, as well as to the student. C. G. T. UNrVBKSITY OP THE CiTY OF NeW YoKK, April 3, 1893. TABLE OF CONTENTS. CHAPTER I. THE ORIGIN AND DEVELOPMENT OP EQCTTT JURISPRrDENCE. Section 1. The meaning of equity in general. 2. The CBguUas in the Roman law. 3. Equity in the English law. 4. Establishment of separate court of equity and system of jurisprudence. 5. The meaning of equity as a branch of American and English juris- prudence. 6. Subdivision of equity jurisprudence. 7. Nature and extent of equity jurisdiction. 8. Exclusive, concurrent and auxiliary jurisdiction. 9. Equity jurisdiction in the United States. 10. Equity jurisdiction in the United States Courts. 11. Divisions of the subject of equity jurisprudence and order of discussion. CHAPTER II. THE FUNDAMENTAL, PRINCIPLES AND MAXIMS OF EQUITY JURISPRUDENCE. Section 13. General propositions. 14. Utdjus, ibi rermedium — Where there is a right, there is a remedy. 15. Equity follows the law. . 16. Vigilantiims non dormienlnbus, ceqwitas subvenit — Equity relieves the vigilant, not those who sleep upon their rights. 17. He who comes into equity must come with clean hands. — He that hath committed iniquity shall not have equity. 18. He who seeks equity must do equity. 19. Equity looks to the intent rather than to the form. 20. Equity imputes an intention to fulfill an obligation. 21. Equity looks upon that as done which ought to have been done. 22. Equality Is equity. 23. Where the equities are in all other respects equal, the first in order of time shall prevail. 24. Where there Is equal equity the law must prevail. CHAPTER III. EQUITABLE RELIEF AGAINST PENALTIES AND FORFEITURES. Section 25. Penalties and forfeitures defined. 26. Penalties defined and distinguished from liquidated damages. 27. To secure payment of money or loan. 28. Liquidated damages. — General description. 29. Rule for determining liquidated damages and penalties. 30. Election to pay penalties or liquidated damages. 31. General principles governing the relief against forfeitures. V VI TABLE OF CONTENTS. Section 32. Relief against forfeiture in mortgages. 33. Agreements to repurchase. 34. Forfeitures arising from the sale of shares of stock. 35. Forfeitures in conveyances and leases. 36. Forfeiture in contract for the sale of land. 37. Equity will not enforce forfeitures. CHAPTER IV. EQUITABIiE DOCTRINE OV PBIOBITT, AND HEKEIN OF THE BIGHTS OF BONA FIDE FURCHASEBS. Section 40. Fundamental principles of the doctrine of priority. 41. To what estates and interests the doctrine applies. — Not to legal estates. 42. Subsequent equity protected by the legal title. 43. Priority of time among equal equities. 44. Superior and inferior equities. 45. Inequality of equity determined by collateral circumstances. 46. Superior equity of a boTiafide purchaser. — General doctrine. 47. The doctrine of txmaflde purchase as modified by the recording acts. 48. Gases to which the doctrine of bona fide purchase applies. 49. Suit by holder of an equity. 50. AiErmative relief to a bona fide purchaser. 51. What constitutes a bona fide purchase. 52. What is a valuable consideration. 53. Antecedent debts as consideration. 54. Priority of unrecorded mortgages over judgment creditors. 55. Payment of consideration. 56. Effect of notice. 57. Time of giving notice. 58. Effect of notice on purchaser of equitable interest. 59. Effect of purchase without notice from an earlier purchaser. 60. Good faith necessary. 61. The doctrine of bona fide purchase applied to assignments of things in action. 63. Equities in favor of the debtor. 63. Notice to debtor necessary. 64. Equities between successive assignors and assignees. 65. Acquisition by such subsequent assignee of the legal title. 66. Assignment of things in action to successive assignees by same assignor. 67. Some principles applying to successive assignments by cestui gu.e trust. 68. Principles applying to assignments of certificates of stock. 69. Diligence of the assignee. 70. Equities in favor of third persons. 71. Effect of statutory provisions concerning assignments of things In action. CHAPTER V. NOTICE. Section 73. General statement and definition of notice. 74. Notice distinguished from knowledge. 75. Kinds of notice, actual or constructive. 76. Actual notice established by direct and indirect evidence. 77. What amount of information necessary to constitute actual notice. 78. By whom may the information be given. TABLE OF CONTENTS. vii Section 79. When presumption from constructive notice is conclusive. 80. When presumption from constructive notice Is rebuttable. 81. What constitutes a due inquiry. 82. How far one can rely upon information received 83. Registration of deeds and other instruments. 84. Requisites of a proper record. 85. To whom Is record constructive notice. 86. Of what is record constructive notice. 87. From what time does priority take effect. 88. Effect of other kinds of notice In the absence of registration, 89. Constructive notice arising from extraneous facts. 90. Recital In muniments of title. 91. Constructive notice arising from possession. 92. Extent and effect of the notice. 93. Nature and time of possession. 94. Whether presumption of notice from possession Is conclusive. 95. Lis pendens as constructive notice of rights. 96. To what kinds of statutes does the notice lis pendens apply. 97. What persons are affected by the notice. 98. A statutory notice of lis pendens. 99. Notice by judgment. 100. Notice as between principal and agent. — General statement of the scope and application of the doctrine. 101. Essential requisites of the constructive notice to principal. 102. Presumption of notice to principal not conclusive. CHAPTER VI. THE DOCTRINE OF EQUITABLE ESTOPPEL. Section 106. Equitable estoppel defined. • 107. Essentials of an equitable estoppel in pais. 108. What conduct necessary to constitute an estoppel. 109. How far fraud Is necessary to estoppel in pals. 110. Knowledge of the truth by the party estopped. HI. Ignorance of the truth by the other party. 112. The party estopped must have intended to influence the conduct of others. 113. The representation or concealment must have Influenced the conduct of another. 114. Operation and extent of estoppel as to persons. 115. Qxtosi-estoppel In the case of acquiescence. CHAPTER VII. THE EQUITABLE DOCTRINE OF MERGER. Section 117. Legal merger. 118. Equitable doctrine of merger. 119. Merger In cases of Incumbrances. 120 Cases of merger where the mortgage or incumbrance Is paid. 181. Law of merger as applied to equitable easements. CHAPTER VIII. ELECTION. Section 123. The fundamental principles of the doctrine, 124. The scope and effect of the doctrine. 125. Doctrine applies both to wills and deeds. Till TABLE OF CONTENTS. Section 126. Intention to convey another's property essential. 127. Intention where donor has partial interest in property disposed of. 128. An independent substantial benefit necessary. 129. Ordinary cases of election where grantor has no interest in property. 130. Cases of election arising under powers of appointment. 131. Cases of election where the testator has attempted to dispose of his property by will which is inoperative. 132. Cases In which the donor has a partial interest in property donated. 133. Election by widow between her dower and the testamentary provision. 134. From what circumstances intention of election may be implied. 135. Statutory changes in this rule. 136. Election and devise of community property. 137. Election in the case of statutory provisions for widow's share in in- heritance of husband's property. 138. Who may elect, persons under disabilities. 139. Time of election. 140. Mode of election. 141. Effect of an election. 142. Equitable jurisdiction in matters of election. CHAPTER IX. EQUITABLE DOCTRINES OF SATISFACTION, ADEMPTION AND PERFOKMANCE. Section 145. Election distinguished from the subject of this chapter. 146. Admissibility of parol or extrinsic evidence. 147. Satisfaction and ademption distinguished. 148. Ademption of legacies by portions and advancements. 149. Donor in loco pa/rentis. 150. Subsequent jortion or advancement less than the legacy. 151. Circumstances which affect and do not affect the presumption. 152. Gift to husband of legatee. 153. Effect of subsequent codicil. 154. Satisfaction of legacies between strangers. 155. Satisfaction of portions or advancements by legacies. 156. Satisfaction of legacy by subsequent legacy. 157. Satisfaction of debts by legacy. 158. What prevents the presumption of satisfaction of debts by legacies. 159. Debt owing to a child or wife. 160. Legacy by a creditor to his debtor. 161. Equitable doctrine of performance distinguished from satisfaction. CHAPTER X. EQUITABLE DOCTRINE OF CONVERSION AND RECONVERSION. Section 164. Definition or general explanation. 165. What words are sufficient to produce conversion. 166. Conversion in a contract of sale. 167. Time from which conversion takes place. 168. Effect of conversion. 169. Conversion as between life tenant and remainder-man. 170. Conversion by paramount authority. — Involuntary sales under statute and by order of court. 171. Reconversion defined. 172. Double conversion. 173. Resulting trust upon failure of the purpose of conversion. 174. Conversion by deed. TABLE OF CONTENTS. IX CHAPTER XI. KQCITABLE BELIEF ON THE GROUND OF ACCIDENT AND MISTAKE. Section 175. Limitation of jurisdiction in cases of accident. 176. Cases in whicli the court will not grant relief from accident. 177. Equitable relief in suits on lost instruments. 178. Defective executions of powers. 179. Equitablerelief in non-execution of powers. 180. Accidental forfeitures. 181. Judgments at law, 182. Failure of subject-matter of the contract or bequest. 183. Mistake defined and distinguished from accident, fraud and negligence. 184. Kinds of mistake. 185. Mistakes of law. — General rule. — IgnoranUa juris non exoiisat. 186. Mistake of law accompanied by inequitable conduct of the other party. 187. Mistake of law between parties in relation of trust. 188. Mistakes common to all parties. — Mistakes as to legal effect of written instruments. 189. Relief where mistake is as to existent legal rights. 190. Compromises and settlements of disputes over legal rights as affected by mistakes of law. 191. Payment of money under mistake of law. 192. Mistakes of fact. — General statement. 193. The requisites to relief in mistakes of fact. 194. Compromises and speculative contracts. 195. Remedies and nature of relief. 196. Illustrations of cases in which affirmative relief may be granted. — Re- lief in cases of wills. 197. How mistakes may be proven. — When parol evidence is admissible. 198. Parol evidence in suits for specific performance. 199. Effect of the Statute of Frauds upon the admissibility of parol evidence. CHAPTER XII. ^ ACTUAL FRAUD. Section 303. Definition and general statement.— Kinds of fraud. 203. Material misrepresentation of facts. 204. Material misrepresentation by the seller. 305. Special fraud in auction sales. 206. Fraudulent devices of buyers. 207. Combination of bidders. 208. Fraudulent intent not to pay. 309. Seller's expression of opinion. — Dealer's talk. — His statement as to value and price. 310. Expressions of opinion by buyer. 211. When concealment is fraudulent. 313. Seller's concealment or silence, when a fraud. 313. Concealment of material facts by the buyer. 214. Intention to influence the conduct of another. 315. When and how far fraudulent intent is necessary in actual fraud. 316. Misrepresentation or concealment as defense in actions of specific performance. 217. Reliance upon representation.— Deceit must be successful. 218. Parties must be justified in relying upon misrepresentations. i J X TABLE OP CONTENTS. Section 219. Damage to parties deceived. 220. Liability of principals, partners, and joint owners of agent's fraudu- lent misrepresentations. 221. Remedies in general for actual fraud. 222. Equity jurisdiction over fraud.— Cancellation and reformation. CHAPTER XIII. CONSTRUCTIVE FRAUD. Section 226. Definition, essential elements, and classification. 227. Constructive fraud arising out of illegal contracts. — Equitable juris- diction for relief'in eases of illegal contracts. 228. Constructive fraud in cases of sales for an unlawful purpose. 229. Constructive fraud arising out of inadequacy of consideration. 230. Constructive fraud inferred from the condition and the relation of the immediate parties to the contract. 231. Constructive fraud arising from the mental incapacity of the party to the transaction. 232. Duress and undue influence. 233. Constructive fraud implied from confidential and fiduciary relations between parties. 234. Constructive fraud, how affected by acquiescence and lapse of time.- 235. Gifts made between parties in confidential relation to each other. 236. Frauds on creditors. — Transfers without consideration.— Voluntary conveyances. — Transfers for the purpose of hindering or delaying creditors. 237. Preferences by insolvents in transfer of property in payment of debts, when fraudulent. — Voluntary assignments for benefit of creditors. 838. Delivery, how far essential to transfer of title as against creditors and subsequent purchasers. 239. What delivery is sufficient as against creditors and subsequent pur- chasers. 240. Conflicting claims of vendor and vendee's creditors. CHAPTER XIV. JURISDICTION OVER PERSONS NON SUI JURIS. Section 244. Who are persons norisuijv/rls? 245. Origin of the equitable jurisdiction over infants. 246. Conditions of acquiring jurisdiction. 247. Extent and mode of exercising jurisdiction. 248. Jurisdiction over the custody of infants., 249. Jurisdiction over persons of unsound mind. CHAPTER XV. ANCIENT USES AND STATUTE OF USES. Section 252. Origin and history. 253. What is a use. 254. Enforcement of the use. 255. Distinction between uses and trusts. 256. How uses may be created. 257. Same— Resulting use. 258. Same — By simple declarations. TABLE OI^ CONTENTS. XI Section 259. Who might be /eo^ees to itse and eesfuis Qtteitse. 360. What might be conveyed to uses. 261. Incidents of uses. 262. Aliejiation of uses. 263. Estates capable of being created in uses. 264. Disposition of uses by will. 265. How lost or defeated. 266. History of the Statute of Uses. 267. When statute will operate. 268. A person seised to a use and i/n, esse. 269. Freehold necessary. 270. Use upon a use. 271. Feoffee and cestui que use. — Same person. 273. A use in esse. 273. Cestui que vise in esse. 274. Words of creation and limitation. 375. Active and passive uses and trusts. 276. Uses to married women. 377. Cases In which the statute will not operate. 278. Future uses. 379. Contingent future uses. — How supported. 280. Contingent uses. 281. Springing uses. 282. Shifting uses. 283. Future uses in chattel interests. 284. Shifting and springing uses. — How defeated. 285. Incidents of springing and shifting uses. CHAPTER XVI. MODERN TRUSTS. Section 286. What is a trust. 337. Class of trusts.— Modern legislation in regard to the same. 388. Active and passive trusts. 389. Modern statutory changes. 290. How express trusts were created. 291. Express trusts inferred by construction. 393. Power in trust distinguished from trust estates. 293. Executed and executory trusts. 294. Alienation of trust estate. 395. Merger of Interests. 396. Statute of Frauds as to trusts in real estate. SSn. Trusts of personalty when within the Statute of Frauds. 398. Words of limitation in the creation of trusts'in lands. 399. Doctrine of remainders applied to trusts. 300. Voluntary trusts. 301. Interest of the cestui que trust. 303. Liability for debt. 303. Classes of active trusts. 304. Voluntary assignments for the benefit of creditors. 305. Deeds of trusts to secure debts. 306. Public and charitable trusts. 307. Certainty or uncertainty in the creation of a charitable trust. 308. Trusts arising by operation of law.— Classes. xa TABLE OF CONTENTS. Section 309. Implied trusts. 310. Resulting trusts to donor. 311. Resulting trusts to parties paying considerations. 312. Constructive trusts. CHAPTER XVII. POWERS, DUTIES AND LIABILITIES OE TRUSTEES. Section 313. How trusts are affected by want of a trustee. 314. Refusal of trustees to serve. 315. Rights and powers of surviving trustees. 316. Removal of trustees. 317. Duties and liabilities of trustees in general. 318. Trustees must conform to the directions of the trust. 319. Trustees must use due care and diligence. 320. Duty of trustees as to investments. 321. Good faith in dealing with trust property. 322. Trustee cannot delegate his authority. 323. Trustee's duty to account. 324. Duty to surrender trust property. 325. Right to compensation and allowance for expenses. 326. Breach of trust and liability therefor. 327. Right of contribution among co-trustees. 328. Liability of third persons for performance of the trust. 329. Liability of qxtosi- trustees or other fiduciary persons. CHAPTER XVIII. POWERS OE APPOINTMENT. Section 330. The nature of powers in general. 330 a. Powers of appointment. 330 b. Kinds of powers. 330 c. Suspension and destruction of powers 330 d. How powers may be created. 330 e. Powers distinguished from estates. 330 f. Powers enlarging the interest, with which it is coupled. 330 g. Who can be donees. 330 h. By whom the powers may be executed. 330 k. Mode of execution. 330 1. Who may be appointees. 330 m. Execution by implication. 330 n. Excessive execution. 330 p. Successive execution. 330 s. Revocation of appointment. 330 1. Defective executions and non-executions. — How and when cured. 330 u. Rules of perpetuity. 330 V. Rights of donee's creditors in the power. 330 w. The rights of creditors of the beneficiary. CHAPTER XIX. BIGHTS OE PROPERTY AND CONTRACTUAL POWERS OF MARRIED WOMEN IN EQUITY. Section 331. Legal status of married women. 332. A married woman's equitable separate estate. 333. By what modes and instruments separate property may be settled. TABLE OF CONTENTS. XUl Section 334. Her power of disposition. 335. Restraint upon anticipation. 336. Disposition of separate estate on death of wife. 337. The condition of the law in the American states. 338. Contracts of married women.— General doctrine. 339. Married women's power to contract In the United States. 340. Statement by wife in fraud of the marriage. 341. Wife's equity to a settlement. 842. Husband's estate by the curtesy. 343. Maintenance. 344. Pin-money and paraphernalia. 345. Alimony. CHAPTER XX. ABMHaSTKATION OF DECEDENTS' ESTATE, AUD HEREIN OF GIFTS CAUSA MORTIS. Section 347. Foundation for jurisdiction of equity. 348. Effect of establishment of probate courts upon the equitable jurisdic- tion. 349. Kinds of legacies. 350. Ademption of specific legacies. 351. General legacies. 353. Demonstrative legacies. 353. Annuities. 354. Abatement of legacies. 355. Effect of appropriation of funds by executor. 356. Lapsed legacies. 357. Gifts causa mortis; distinction from testamentary disposition. 358. Equitable jurisdiction over gifts causa mortis. 359. The characteristics of dcmatio mmtis causa. CHAPTER XXI. CONTRACTS IN EQUITY. SECnoN 361. A general statement as to contracts in law and equity. 363. Whether a seal imports a consideration. 363. Equitable easements arising from covenants. 364. Equitable contracts by representation and acts. 365. Contracts for necessaries supplied to parties under legal disability 366. Liability of the estate of a deceased joint debtor in equity. 367. Equitable remedies for the enforcement of contracts. CHAPTER XXII. EQUITABLE ASSIGNMENT. Section 371. Assignments of chosesin action at law and in equity.— Present state of the law in respect to the same. 372. What things in action are not assignable? 373. Assignments of mere possibilities and expectancies. 374. Assignments of property to be acquired in the future.— The rale in law. 375. The rule in equity. 376. Requisites of an assignment of after-acquired property.— The extent of the doctrine. 377. Rationale of the doctrine. XIV TABLE OF CONTENTS. Section 378. Equitable assignments of a fund by order or otherwise. — General doctrine. 379. The effect of a bill of exchange. 380. Bill of exchange for apart of fund. 381. Bill of exchange for whole of fund. 383. The right of cheek-holder to sue the bank. CHAPTER XXIII. BQUIXABI.B I.IX;NS. SECTioif 384. Their general nature and definition. 385. Liens arising from express contract. 386. Equitable lien on property to be acquired in the future. 387. Form and nature of the agreement. 388. Lien or mortgage by deposit of title deeds. 389. Continued — Notice to subsequent purchasers. 390. Continued — Their recognition in this country. 391. Continued — Foreclosure. 393. Liens arising from Implied contracts. 393. Liens upon joint owners and co-tenants. 394. Expenditure by a life tenant. 395. Improvements made upon the land of another. — Betterment laws. 396. Equitable lien on life insurance policies. 397. Vendor's and grantor's liens distinguished. 398. Characteristics of the vendor's lien. 399. Grantor's lien. 400. Continued— Discharge of waiver of the lien. 401. Continued — In whose favor raised. 403. Vendee's lien. 403. Grantor's lien by express reservation. 404. Enforcement of grantor's, vendor's and vendee's lien. 405. Liens arising from charges by will or by deed. 406. Liens by express charges. 407. Liens arising from the implied charges. 408. Mechanics' and maritime liens. — Statutory liens. CHAPTER XXIV. MOKTGAGES OI" BEAL ESTATE AS AFFECTED BV EQUITY. Section 411. Mortgage at common law. 413. Equity of redemption. 413. The mortgage in equity. 414. Influence of equity upon the law. 415. The form of a mortgage. 416. The defeasance clause in equity. 417. The admissibility of parol evidence. 418. The mortgagor's interest. 419. The mortgagee's interest. 430. Devise of the mortgage. 431. Merger of interests. 433. Possession of the mortgaged premises. 433. Special agreements in respect to possession. 434. Rents and profits. 435. Mortgagee's liability for rents received. 436. Insurance of the mortgaged premises. TABLE OF CONTENTS. XY Sectiow 437. Assignment of the mortgage. 428. Assignment under the lien theory. 439. Assignment of the mortgagor's interest. 430. The effect of a discharge. 431. When payment will work an assignment. 433, Action for waste. 433. Process to redeem. 434. Who may redeem. 435. Accounting by the mortgagee. 436. Continued— What are lawful debits ? 437. Continued— What are lawful credits ? 438. Making rests. 439. Balance due. 440. Foreclosure.— Nature and kinds of. 441. Continued — Who should be made parties ? 442. Parties to foreclosure— Continued. 443. Effect of decree in foreclosure upon the land. 444. The effect of foreclosure upon the debt. 445. Mortgages with power of sale. 446. Character of the mortgagee in relation to the power. 447. Purchase by mortgagee at his own sale. 448. Extinguishment of the power. 449. Application of the purchase money. 450. Deeds of trust. 451. Contribution to redeem. — General statement. 453. Mortgagor v. his assignees. 458. Contribution between the assignees of the mortgagor. — Effect of re- lease of one of them. 454. Contribution between the surety and the mortgagor. 455. Between heirs, widow, and devisees of the mortgagor. 456. Between the mortgaged property and the mortgagor's personal estate. 457. Special agreements affecting the rights of contribution and ex- oneration. 458. Marshaling of assets between successive mortgagees. CHAPTER XXV. CHATTEL MORTGAGES AND FLEDGES IN EQUITY. Section 463. Chattel mortgages defined. — Conflict of common law and equitable theories. — Equity of redemption. 464. Parol defeasance, when enforcible. 465. Can a chattel mortgage cover after-acquired property ? 466. How far mortgages of after-acquired property is invalid. — The mort- gage in equity. 467. The mortgagor's right of redemption. 468. The mortgagor's right of possession after forfeiture. 469. Foreclosure of the mortgagor's equity of redemption in equity and at law. 470. Pledges. CHAPTER XXVI. GENEBAIi EXPLANATION CONCERNING EQUITABIiE REMEDIES. Section 473. General statement. 473. General classification. 474. Equitable remedies operating