Mmm^:- Vfit'"-' ^^ mm mi I',' OJornfU Slam i^rljnnl Sjibrary Cornell University Library KD 674.S67 1912 The principles of equity :intended for t 3 1924 021 656 222 Cornell University Library The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924021656222 THE PRINCIPLES OF EQUITY THE PRINCIPLES OF EQUITY INTENDED FOR THE USE OF STUDENTS-AND OF PRACTITIONERS BY EDMUND H. T. ^ELL OF THE SUDDLE TEMPLE, BSQUIBB, BA^E!StER-AT-LAW ^ivttentf} . Eees, 466. Davidson, In re, 70, 457. — ij. Chalmers, 47. — V. Illidge, 222. Davies v. Davies, 456. — V. Gas Light & Coke Co., 517. — V. London Insurance, 411. — V. Makuna, 512. — V. Parry, 221. — V. Rees, 307. — V. Tagart, 133. — V. Thomas, 90, 384. — V. Town Properties, 513. — V. Wattier, 389. Davies' Policy, In re, 355. Davies's Trusts, In re, 219. Davis, In re. 111, 134. — V. Angell, 156, S44. — V. Freethy, 57. — V. Hutchings, 106, 267. — V. Ingram, 535. — V. Petrie, 45. — V. Whitehead, 293, 481. Daw V. Herring, 451. Dawes v. Creyke, 343. Dawson v. City EaU. Co., 48. — V. Clarke, 117. Day V. Brownrigg, 511. Deacon v. Smith, 181. Deakin, Se, 312. Dean v. M'Dowell, 449. Dearie v. Hall, 49. Dearsley v. Middle week, 116. Debenham v. Ox, 420. — V. Sawbridge, 502. De Brimond u. Harvey, 101. De Bussche v. Alt, 425. De Caux v. Skipper, 280. De Cordova v. De Cordova, 398. Dee Estates, In re, 315. Deeks v. Strutt, 147. Deering v. Bank of Ireland, 201. Deeze, Ex parte, 311. De Francesco v. Barnum, 477, 516. De Galve v. Gardner, 202. De Hoghton v. Money, 263, 494. Deighton & Harris, In re, 507. Deines v. Scott, 135. De Lassalle v. GuUdford, 509. Delves v. Gray, 110. De Mainbray v. Metcalfe, 303. De Mattos v. Gibson, 309. De Mestre v. West, 38. Dendy v. Evans, 324. De Nicholls v. Saunders, 52. Denne v. Light, 489. Dennis, In re, 210. Denny v. Hancock, 407. Denaham's Trade Mark, In re, 531. Dent V. Bennet, 423. — V. Dent, 93. — V. De Pothonier, 101. Denton's Estate, In re, 441. De Pass's Case, 421. De Pereda v. De Mancha, 374. De Pothonier v. De Mattos, 47. Dering v. Winchelsea, 439. De Rochefort v. Dawes, 229. Derry v. Peek, 408. Deschamps v. MiUer, 18. De Sousa v. British South Africa, 18, 19. Detmold v. Detmold, 40. Devereux, In re, 141. Deverges v. Sandeman, 301. De Visme, In re, 81. Deyes v. Wood, 255. Dibbins v. Dibbins, 240. Dick V. Fraser, 197, 224. Dickinson v. Barrow, 483. — V. Burrell, 13. — V. Dodds, 495. Dicks V. Brooks, 529. Dicksee's Case, 38. Diestal v. Stevenson, 322. Dilkes V. Broadmead, 198. Dillon V. Parker, 179. Dingle v. Coppen, 222, 244. Diplock V. Hammond, 48. District Bank, Ex parte, 351. Dixon V. Astley, 503. 62 XX INDEX TO CASES CITED. Dixon V. Brown, 396. — V. Dixon, 332. — V. Gayfere, 88. — V. Williamson, 229. — V. Winch, 271, 278. Dobson V. Laud, 441. Docker v. Somes, 109, 111. Dodd V. Dodd, 845. Dodson, l7i re, 163. Dodsou V. Downey, 456. Doe V. Foster, 546. — V. Gay, 147. — V. Lightfoot, 237. — V. Manning, 33. — V. Parratt, 356. — V. Eusham, 34. — V. Whitehead, 323. Doering v. Doering, 53. Doherty v. Allman, 519. Doig V. Birrell, 2. Dolphin V. Aylward, 35. Donaldson v. Donaldson, 99. Dooby V. Watson, 9, 279. Dormer v. Forteseue, 390. Dorrell v. Dorrell, 338. Dott's Case, 427. Doughty i;. Bull, 158. — V, Townson, 211. — V. Walker, 210. Douglas V. Bayea, 487. — V. Bolam, 98. — V. GulverweU, 239. — V. Simpson, 77, 350. Dow V. Wheldon, 426. Dowden-Pook v. Pook, 420. Dowling V. Hudson, 62. Downe V. Fletcher, 335. Downes v. Jennings, 372. Downs V. Collins, 448. Dowse V. Gorton, 127, 128. Dowsett V. Culver, 147, 224. Dowson & Jenkins, Re, 66. Drakeford v. Wilks, 7. Drant v. Vause, 160. Draycott v. Harrison, 350. Drayton v. Loveridge, 95. Dresel v. Ellis, 236. Drew V. Leng, 333. — V. Martin, 80. Dreyfus v. Peruvian Guano Co., 526, 546. Driffield Co. v. Waterloo Co., 524. Drover v. Beyer, 551. Drysdale v. Piggott, 247. Duberley v. Day, 327.* Dubouski V. Goldstein, 476. Duddell V. Simpson, 507. Duder u. Amsterdam Trustees, 18. Duffield V. Elwes, 143, 145. Duffln v. Duffin, 145. Dulaney v. Merry, 45. Dummer v. Pitcher, 178. Dunbar v. Dunbar, 55, 80. Duncan v. Dixon, 417. Duncan & Co., In re, 206. Duncan, Fox & Co. v. North and South Wales Bank, 438. Duncuft V. Albreoht, 478. Dundas v. Dutens, 36. Dungey v. Angove, 539. Dunkley, In re, 42. Dunlop Rubber Case, 49. Dunn V. Flood, 486, 492. Durham v. Legard, 491. Durrant v. Branksome District Council, 523. Dursley v. Fitzhardinge, 544. Duthy V. Jesson, 505. Dye V. Dye, 23. Dyer v. Dyer, 78, 79. Dyose v. Dyose, 148. Dyson & Fowke, In re, 63. — V. Morris, 291. Fames v. Hacon, 206. Eardley v. Knight, 244. Earle v. Bellingham, 152. — V. Kingscote, 343, 351. Earlom v. Saunders, 157, 162. Earnshaw v. Earnshaw, 345. Eastern Counties Ey. Co. v. Hawke, 493. Eastgate, In re, 305, 409. Bast India Co. v. Donald, 402. Eastman v. Comptroller, 531. Eastwick v. Smith, 118. Eastwood V. Vinke, 184. Ebbs V. Boulnois, 498. Ebrand v. Dancer, 78, 80. Eccles V. Mills, 213. Economic Life v. Usborne, 251, 284. Edgar u. Plomley, 468. Edge V. Worthington, 296. Edgington v. Fitzmaurioe, 407. Edmonds v. Robinson, 454. Edmondson v. Copland, 246. Edmunds v. Edmunds, 31. Edmundson v. Render, 515. Edwards, Ex parte, 314. Edwards v. Barnard, 457. INDEX TO CASES CITED. XXI Edwards v. Carter, 417. — V. Cheyne, 332. — V. Cluj, 301. — V. Grove, 379. — V. Harben, 31. — V. Hood-Barrs, 115. ^ V. Hope, 313. — V. Jones, 29, 143. — V. Ml/eay, 410. — V. Meyrick, 411. — V. Picard, 260. — V. Walters, 145. — V. We=t, 161. Edwards-Mo83 v. Marjoribanks, 295, 410. Egg V. Blayney, 501. Elder v. Pearson, 332, 333. Elderton (Infants), In re, 375. Elias V. Oxygen C!o., 283. Elibank v. Montolien, 360. Elliot V. Merryman, 62. EUiott V. Cordell, 361. — V. fisher, 162. — V. Turner, 319. — V. Turqnand, 467. EUis V. Atkinson, 337. — . Doman, 420. — V. Foster, 175. — V. Mico, 1S4. Hayward v. Att.-Gen., 71. Head v. Head, 444. — V. Gonld, 105, 138. Heap V. Tonge, 38. Heard v. Heard, 3io. — V. PiUey, 78. Hearle v. Grcenbank, 97, 174. Heath v. C3iapinaii, 77. — V. Crealock, 295, 408. — V. Sansom, 452. Heather Bell, The, 309. Heailey v. Thomas, 333. Hedlev v. Webb, 510. Heffield v. lleadows, 436. Helby v. >Iatthew3, 304. Hebnore v. Smith, 524. Helyar, In re, 373. Hemmings v. Sceptre Life, 409, Hemphill v. Hemphill, 365. Hendry v. Turner, 452. Henley & Co., Ltd., Se, 193. Henry v. Armstrong, 430. Hensman v. Fryer, 231. Henthom v. Fraser, 477. Henty v. Wrey, 151, 430. Hep worth V. Hepworth, 82. — V. Pickles, 513. Herey v. Birch, 448, 475. Herman Loog v. Bean, .524. Hermann v. Charlesworth, 419. Heslop V. iletoalfe, 315. Hetling k. ilerton. Me, 66. Hewett, In re, 336. Hewison v. Negas. 36. Hewitt V. Looiemore, 29-5. Heyne.i v. Dixon, 130, 248. Hickman v. Up -all, 247. Higgins V. Dawson, 213. — V. Pitt, 430. — V. Samel", 491. — V. Scott, 314. Higginson, In re,^211. Higginson & Dean, I/i re, 163. Highett & Bird, /,. re, 501. Higinbotham v. liolme, 4i|. Hill V. Barclay, 323. — -c. Bridges, 207. — V. Bnckley, 489. — V. Cooper, 343. — V. Edmonds, 361. — V. Fearis, 459. — V. Gonune, 41, 484. — V. Hickin, 466, 537. — V. Mathie, 356. — V. Eowlands, 246. HUl V. Schwarz, 432, 477. — V. Smith, 317. HiU's Case, 2.56. Hilliard v. Falford, 393. Hills V. CroU, 515. — V. Hills, 143. Hilton, In re, ViA. Hindson v. WeatherUl, 423. HipgroTB V. Case, 496. Hippisley v. Knee, 109. Hiram Maxim Lamp Case, 466. Hirth, Ue, 414. Hoare v. Bremridge, 406. — V. Osborne, 67, 73, 74. — V. Tasker, 243. Hobbs V. Hull, 370. — V. Wade, 464. — V. Wayet, 546. Hobday »." Peters, 138. Hoblyn v. Hoblyn, 422. Hobson V. Bass, 446. — V. Sherwood, 534. — V. Trevor. 46, 478. — V. Tulloch, 515. Hockey v. Western, 302. Hodge's Legacy, Be, 155. Hodge's Settlement, Re, 374. Hodges V. Hodjres, 341. Hodgson V. Bates, 123. — V. Braisby, 189. — V. Deans, 287. — V. Shaw, 438. Hod kin son v. Qtiinn, 64. Hodson V. Henland, 483. Hodson & Howe, He, 288. Hogg V. Scott, 530. Hoghtou V. Hoghton, 422. Holden, In re, 33. Holder v. Williams, 222. Holderness v. Lampert, 79. Holditch V. Mist, 2 5 Hole, In re, 385. Hole V. Bethune, 3i9. — i. Chard Union, 32i). Holford V. Acton Council, 516. — V. Holford, 155. Holgate V. Jennings, 124. — V. Shutt, 464. Holland, Ex pa,te, 335. Holland a. Evre, 495. — V. HoUand, 135. — V. Worley, 533. Holliwell V. Seacombe, 506, 508. Holloway v. HadcMe, 166. HoUoway Brothers v. Hill, 613. Holme V. BruuskUl, 437. — V. Guppy, 322. Holmes u. Holmes (1907, 2 Cti.), 199. XXVI INDEX TO CASES CITED. Holmes v. Penny, 32. Holmes, In re A. I>., 265. Holroyd v. Marshall, 46. Holt V. Frederick, 81. — V. Holt, 91, 133, 261. Holt & Co.'s Trade Mark, In re, 531. Holtby V. Hodgson, 336, 350, 356. Home & Colonial Stores v. Colls, 521. Honeyman v. Marryat, 491. Honner v. Morton, 366. Honywood o. Honywood, 225. Hood, In re, 140. Hood V. Hood, 215. — V. Mackinnon, 400. Hood-Barrs v. Catheart (1895, 1 Q. B.), 136. — V. Heriot, 136, 342. Hoole V. Smith, 287. Hooper «. Smart, 54. Hope, The, 316. Hope V. Hope, 331, 474. — V. Walter, 506. Hopkins, Ex parte, 375. Hopkins v. Gudgeon, 308. — V. Hemsworth, 52, 264. Hopkinson v. Forster, 49. Hore V. Becher, 399. Home and Hellard, In re, 276, 500. Hornsby v. Lee, 366. Hornsey District Council v. Smith, 283. Horrocks v. Eigby, 489. Horsnaill, In re, 534. Hosking v. Smith, 276. Hovenden v. Annesly, 15. How V. Winterton, 112, 461. Howard v. Digby, 257. — V. Fanshawe, 323, 324. Howarth, He, 150, 380. Howe V. Dartmouth, 123. — V. Kingscote, 226. — V. Smith, 506. Howe Trustees, Ex parte, 105. Howell V. Price, 240. — V. Young, 130. Howes V. Bishop, 422. Hudson, In re, 146. Hudson V. Cripps, 434. — V. Hudson, 113. — V. Spencer, 186. Hughes ('. Anderson, 16. — v. Britannia Society, 280. — V. Kearney, 87. — V. Morris, 482. — V. Wells, 133. — V. Wynne, 196. Hughes & Co., In re, 460. Hugill V. Wilkinson, 196, 248. 291. Huguenin v. Baseley, 408, 423. Humber v. Richards, 264. Humble v. Humble, 248. Hume V. Pocock, 499. Hunt, Re, 383. Hunt V. Blmes, 104, 298. — V. Fripp, 497. — V. Luck, 270. — V. Thome, 216. — V. Wenham, 197. Hunter v. A. G., 71, 75. — V. Daniel, 56. — V. Dowling, 137, 454, 459. — V. Young, 212. Huntingdon v. Huntingdon, 292. Hurrell v. Littlejohn, 92, 411. Hurst V. Beach, 145, 186. Hussey v. Horne-Payne, 494. Huttley V. Huttley, 56. Hyams v. Stuart-King, 54. Hyde v. Price, 331. Hyde Park Place Charity, In re, 69. Hyett V. Mekin, 163. Ideal Beddin|' Co.'s Case, 31. Imperial Gaslight v. Broadbent, 533. Imperial Loan Co. v. Stone, 415. Imperial Mercantile v. Coleman, 107, 109. Imperial Mercantile Credit Co., In re, 652. Imray v. Oakshette, 324. Income Tax Commissioners v. Pemsell, 67. Ind «. Eramerson, 12. Ind Coope & Co., In re, 253, 266, 275. Ingall V. Brown, 156. Ingle V. Richards, 115, 223. Inglefield o. Coglilan, 330. Ingram v. Papillon, 189. Innes v. Innes, 29. — V. Sayer, 72. International Marine v. Hawes, 219, 220. Ireland v. Rittle, 535. Irvine v. Sullivan, 60, 212. Irwin V. Parkes, 8. Isaacs V. Reginald, 160. — u. Towell, 507. INDEX TO CASES CITED. XXVll Isaacson, In re, 307. Islington Vestry v. Council, 623. Ives V. Wilians, 449. Hornsey J., In re, 387. J V. S , 453. J. H. & Co. V. F., 511. Jackson, Mx parte, 289. Jackson, In re, 376, 377. Jackson v. Barry R. C, 450. — V. Dickinson, 116, 440. — V. North-Eastern R. C, 290. Jackson's Case, 427. Jackson & Bassford, In re, 42, 415. Jacobs, In re, 444. Jacobs V. Revel, 502. — V. Seward, 464. Jacques Cartier v. Montreal City Bank, 135, 428. James, Ex- parte, 42, 425. James, In re, 208, 349. James v. Allen, 75. — V. Holmes, 80, 112. — V. James, 208. — V. London and County Bank, 201. — V. Rice, 296. — V. Rumsey, 261. — V. Smith, 79, 481. Jameson, In re, 148. Jane Turner, In re, 57. Jared v. Clements, 266. Jarrett v. Hunter, 495. Jarvis v. Birmingham Corp., 70. Jay V. Johnstone, 196, 224. — V. Robinson, 355. JefEerys v. JefEerys, 27, 475. Jelks V. Hayward, 541. Jenkins v. Jones, 498. Jenkins & Randall, Re, 131. Jenks V. Clifden, 521. Jenner v. Morris, 388, 418. Jenner Fust v. Needham, 285. Jennings v. Jennings, 459. — V. Jordan, 280. — V. Mather, 94. Jervis v. Berridge, 482. — V. Wolferstan, 211, 217. Jervoise v. Duke of Northumber- land, 24. — V. Jervoise, 357, '358. Jessop V. Watson, 165. Jesus College v. Bloom, 388, 462. Job V. Job, 194, 223, 392, 512. — V. Potton, 464. Jobson V. Palmer, 108. Joel's Case, 411. John V. John, 511. Johnson v. Bragge, 400. — V. Legard, 38. — V. Mounsey, 249, 286, 462. — V. Newnes, 526. — V. Ogilvy, 420. — V. Spratt's Patent, 237. — V. Wild, 439. Johnson Johnson, In re, 41. Johnstone v. Baber, 535. — V. Cox, 51. John Street Chapel Case, 69. JoUand v. Stainbridge, 263. Jones, In re (1893, 2 Ch.), 317. Jones V. Barker, 264. — V. Barnett, 405. — V. Carter, 516. — V. Clifford, 487. — V. Davies, 292. — V. Foxall, 135. — V. Gardiner, 504. — V. How, 183. — V. Lewis, 392. — V. Marshall, 301. — V. Merioneth Building Society, 548. — V. Morgan, 112. — V. Palmer, 68. — V. Powles, 11. — V. Selby, 144. — V. Smith, 267, 269. — V. Tankerville, 478. — V. Thomas, 538. — V. Trappes, 101. — V. Williams, 204, 207, 221. — V. Winwood, 65. Jones's Case, 523. Jones & Roberts, In re, 314. Jorden v. Money, 8. Jordeson v. Sutton Gas Co., 520. Jordeson's Case, 522. Joselyne, Ex parte, 201. Joseph, In re, 156. Joseph V. Lyons, 4. Joy V. Campbell, 114. Joyce V. Hatton, 41. Judd & Poland, In re, 507. Jukes, In re, 32. Jupp V. Buckwell, 356. XXVlll INDEX TO CASES CITED. Keaesley v. Cole, Hi. — V. Philips, 289. Keate v. Phillips, 297. Keatea «. Cadogan, 409. Keech v. Hall, 252. — V. Sandford, 91. Keene v. Biscoe, 239. — V. Thomas, 311. Keily v. Monck, 420. Keith V. G-aneia, 252. Kekewioh v. Maiming, 30. Kelland v. Fulford, 164. Kellook's Case, 201. Kelly V. Selwyn, 50. — V. Solari, 400. Kelsey v. Kelsey, 400. Kemble v. Farren, 321. Kemp V. Lester, 252. — V. Pryor, 389, 648. — V. Westbrook, 300, 301. — V. Wright, 256. Kemp's Case, 46. Kempster v. Kempster, 218. Kendall, JBx parte, 228. Kendall v. Hamilton, 457. Kennedy v. De Trafford, 287, 464. — u. Green, 271. — V. Kennedy, 474. — V. Lyell, 56. Kennell v. Abbott, 403. Kenny v. Wexham, 478. Kensington v. Mansell, 543. Kensit, In re, 141 . Kensit v. G. E. E. Co., 522. Kent V. Pickering, 220. Kent County Gas Light, In re, 497. Kerr v. Kerr, 56. Kerr's Policy, In re, 296. Kettlewell v. Watson, 90, 268, 272, 296. Kevan v. Crawford, 33, 37. Key V. Key, 403. Kibble V. Fairthorne, 249. Kidney v. Coussmaker, 179. Kilford V. Blaney, 213. Kilpin V. Ratley, 143. King «. Bird, 252. — V. Chick, 201, 206. — V. Chuck, 451. — V. Hamlet, 428. — V. Malcott, 217. — V. Savery, 426. — V. Smith, 65, 518. — V. Voss, 346. Kingsman v. Kingsman, 540. Kingston Cotton Co. v. Mouat, 32. Kinnaird «. TroUope, 292. Kinsman v. Rouse, 247. Kintrea, Ex parte, 421. Kirby v. Harrogate School Board, 514. Kirk V. Clark, 36. — V. Eddowea, 191. Kirkland v. Peatfield, 249. Kirkman u. Booth, 124, 125. Kitson, In re, 208. Knapman v. Wreford, 53. Knight, In re, 88, 304. Knight V. Bowyer, 56. — V. Gardner, 313. — V. Knight (1895, 1 Ch.), 232. Knox V. Gye, 9, 111, 455. — V. Hotham (Lord), 404. — v. Mackinnon, 104. Konig's Application, Re, 532. Krell V. Henry, 394. Kronheim v. Johnson, 22. Kuyper's Policy Trusts, 355. Lacey v. Hill, 458. Lacon v. Allen, 297. — V. Lacon, 519. — V. Mertins, 482. Lacy, In re, 85. Lagunas Nitrate v. Lagunas Syn- dicate, 4, 412. Laing v. Eadcliffe, 119. Lake, In re, 51, 105. Lake v. Bell, 96. — V. Craddock, 86. — V. De Lambert, 97. — v. Gribsou, 15. Lamb -o. Evans, 528. Lambert v. Still, 137. Lamplugh v. Lamplugh, 81. Lance v. Norman, 371. Lancefield v. Iggulden, 218, 232. Lander & Bagley's Contract, In re, 487. Landon v. Poyzer, 154. Lands Allotment Co., In re, 112. Lane-Fox, In re, 31. Lanoy v. Duke of Athole, 229. Larner u. Lamer, 353. Laver v. Botham, 220. Lavery v. Pursell, 483, 533. Law V. Glenn, 255, 258, 259. — V. Law, 409, 419. Law Guarantee v. Mitcham Brewery, 289. — V. Russian Bank, 310. Lawes v. Bennet, 159. INDEX TO CASES CITED. XXIX Lawes v. Lawes, 188, 189. Lawford v. Price, 219. Lawledge v. Tyndall, 317. Lawrence v. Fletcher, 314. — V. Smith, 526. Lawrie v. Att.-Gen., 71. — V. Lees, 496. Laxon & Co., In re, 418. Lea V. Cooke, 68. Leach v. Jay, 22. Leacroft v. Harris, 176. Leas Hotel Case, 255, 283. Le Brasseur & Oakley, In re, 316. Lechmere v. Earl of Carlisle, 180. Lee V. Abdy, 57. — V. Binns, 221, 468. — V. Butler, 304. — V. Eoundwood Co., 289. Leeds v. Cheetham, 393. Leeds (Duke) v. Amhurst, 461. Leeds Estate Co. v. Shepherd, 109. Leeds Forge Case, The, 548. Leeds Theatre v. Broadbent, 246. Lees V. Fisher, 295. — V. Nuttall, 425. — V. Patterson, 562. Lefroy v. Egmont, 94. Legate v. Sewell, 542. Legg V. Gold wire, 402. — V. MackreU, 140. Legh V. Warrington, 198. Leigh V. Burnett, 91. — V. Dickeson, 317. — V. Leigh, 374. Leigh's Estate, In re, 93. Le Lievre v. Gould, 429. Lemmon v. Webb, 620. Lempriere v. Lange, 417. Le Neve v. Le Neve, 263. Leney v. Callingham, 546. Leslie v.. French, 94. — V. Young, 628. Leslie's Hassop Estates, In re, 141. Lester, Ex parte, 350. L'Estrange v. L'Estrange, 236. Letton's Case, 444. Le Vasseur v. Soratton, 366. Lever, Re, 117. Lever v. Koffler, 475, 477. Leveson, In re, 235. Levine's Case, 427. Levy V. Walker, 462. Lewers v. Earl of Shaftesbury, 533. Lewin's Trust, Se, 369. Lewis V. James, 503. Lewis V. Nobbs, 101. — V. Eees, 34. — V. Sutton, 68. Lewknor v. Freeman, 32. Leyland and Taylor, Se, 492. Lidbitter v. Hatch, 236. Life Association of Scotland v. Siddall, 15, 362. Life & Reversionary v. Hand in Hand, 287. Liles V. Terry, 423. Lilley v. Foad, 250. Lillie V. Legh, 480. Lindlar's Case, 421. Lindo V. Lindo, 293. Lindsay Petroleum v. Hurd, 18. Lindsell v. PhilHps, 249, 446. Lingard v. Burnley, 46. Linton v. Linton, 56. Lipscomb v. Lipscomb, 229. Liakeard, &c., B. C, In re, 237. Lisle V. Eeeve, 238, 281. Lister v. Lister Co., 276. — V. Stubba, 131. Litchfield v. Dreyfus, 427. Little V. Kingswood Colliery, 524. Littledale v. Lonsdale, 522. Liverpool Bank v. Turner, 310. Llanover v. Homfray, 544, 545. Llewelliu ik Brown, 383. — v. Cobbold, 372. Lloyd v. Davies, 290. — V. Dimmack, 546. — ■ V. Grace, 486. — V. Lloyd, 244. — V. Nowell, 495. Lloyd-George, In re, 314. Lloyd-Phillips v. Davies, 73. Lloyds 1). Harper, 436. Lloyds Bank v. Bullock, 65, 66. — V. Medway Navigation, 6, 511. — V. Pearson, 52. Loane v. Casey, 222. Lock V. Queensland Investment Co., 414. — V. Venables, 154. Lockhart v. Hardy, 291. Looking v. Parker, 286. Lodge's Case, 427. LoflEus V. Maw, 8. Lomas v. Graves & Co., 45. London Assurance v. Mansel, 410. London, Bishop of, v. Whitely, 23. Loudon & Chartered Bank of Australia v. Lempriere, 333. XXX INDEX TO CASES CITED. London & County Bank v. Dover, 285. — V. Eatcliflfe, 506. — V. River Plate Bank, 54, 98. London Financial Association v. Kelk, 135. London Freehold v. Sheffield, 66. London & Globe Case, 311. London Joint Stock Bank v. Sim- mons, 268, 302. London & Midland Bank v. Mitchell, 302. Ijondon University v. Yarrow, 68. Long V. Benning, 485. Longford v. Kensington, 173. Longman v. Bath Electric, 428. Longmate v. Ledger, 417. Longstaffe v. Fenwick, 107. Lopes V. Hume-Dick, 121. Lord V. Lee, 394. Lord's Trustee's Case, 307, 311, 467. Lorriman v. Lorriman, 344. Loscombe v. Wintringham, 68. l/ound V. Grimwade, 14, 420. Lovatt V. Williamson, 8. Lovelace d. Anson, 154. Lovett V. Lovett, 348. Low V. Bouverie, 429. Lowe V. Dixon, 4S1. Lowes V. Lush, 485. lowis V. Rumney, 197. Lowther v. Fraser, 215. — V. Heaver, 325. Loyd V. Spillett, 155. Lucas V. Harris, 55. — V. James, 495. — V. Lucas, 358. Luddy's Trustee «>. Peard, 109, 426. Lumb V. Milnes, 330. Lumley, In re, 136, 338. Lumley v. Brooks, 316. — V. Wagner, 475, 515. Lupton V. White, 103. Lush's Trusts, In re, 14, 369. Lutwioh's Case, 281. Lynde's Case, 412. Lynes, In re, 336. Lyon V. Home, 423. — V. Tweddell, 453. Lyons v. Blenkin, 374. — V. Wilkins, 525. M., In re, 386. *Macbryde v. Weekes, 491. Maofarlane v. Lister, 314. Maokay v. Douglas, 32. Mackenzie v. Edwards-Moss, 343. — V. Robinson, 261. Mackinley v. Bates, 154. Maokinnon v. Stewart, 44. Mackintosh v. Pogose, 40. Mackreth v. Symmons, 87. Macleod v. Drummond, 126. — V. Jones, 258. Maomillau v. Dent, 530. Macpherson v. Watt, 426. Maddever, In re, 9. Maddison v. Chapman, 87. Maddock, In re, 7, 212. Madeley v. Booth, 488. Magnus, In re, 41. Magnus V. Queensland National Bani, 293. Makings i). Makings, 225. Makins v. Percy Ibotson, 255. Maiden v. Menill, 395, 398. Maling v. Hill, 500. Mallott V. Wilson, 35, 99. Manchester Royal Infirmary, In re, 120. Manchester Ship Canal v. Man- chester Racecourse, 494. Manchester, &c.. Banking Co. v. Parkinson, 6. Mander v. Falcke, 513. Manisty v. Churchill, 438. Manks v. Whiteley, 283 add. Mann, S.e, 68. Manning, Ex parte, 504. Mansell v. ManseU, 392. — o. Valley Co., 527. Manser v. Back, 481. Mansergh v. Campbell, 151. Manson v. Baillie, 100. Maori Case, The, 58. Maple's Case, 528. Margetson & Jones, In re, 316. Marker v. Kekewich, 100. Marriage Neave & Co., In re, 307. Marriott v. East Grinstead, 519. Marsh v. Joseph, 279. — V. Keating, 105, 461. Marsh & Granville, In re, 496. Marshall v. Berridge, 487. — V. Colman, 448. — v. Cruttwell, 82. * Note. — Cases beginning Mao, when spelt M- or Mc (and not Mac), are inserted lower down in this table of cases. INDEX TO CASES CITED. XXXI Marshall v. Shrewsbury, 282. — V. South Staffs. Tram. Co., 283. — V. Watson, 449. Marshfield v. Hutohings, 244. Martha Baggs, In re, 386. Martin, v. Laoon, 122. — V, Nutkin, 514. — V. Pycroft, 487. — V. Spicer, 434. — d. Tregonwell v. Strahan, 341. — V. Trimmer, 168. Martin's Case, 449. Marwick v. Hardingham, 247. — V. Lord Thurlow, 283. Maskell & Goldfinch, In re, 496. Maskelyne & Cooke's Case, 44. Mason, Re, 458. Mason v. Mercer, 112. — 1). Westoby, 255. Mason Orphanage, Se, 69. Masson v. De Fries, 231, 329, 358, 359. Matheson v. Ludwig, 457. Mathew v. Brise, 373. Mathewman's Case, 334. Matthews v. Euggles-Brise, 117. — V. Small wood, 324. — V. Usher, 6. — V. Whittle, 347. Maxfield v. Burton, 12. Maxwell v. Maxwell, 175. — V. Montacute, 481. — V. WettenhaU, 151. May V. Chapman, 54. — V. Piatt, 401, 412. — V. Thomson, 487. Mayer v. Murray, 259. Mayfair Property Co. v. John- son, 534. Mayhew v. Crickett, 446. M'Alpine v. Moore, 74. M'Bean v. Deane, 235. McCarthy v. Capital and Coun- ties Bank, 303. M'Donnel v. Hesilrige, 34. M'Graths, Re, 374. McGruther's Case, 500. M'Henry, In re, 250. M'Henry v. Da vies, 333. McLaughlin v. A.-G., 67. — V. Penny, 224. McManus v. Cooke, 483. M'Myn, Re, 438. jIcNeillie v. Acton, 127. At'Queen v. Farquhar, 489. M'Rae, Re, 209. Measures, Ld. v. Measures, 514, 524. Meech, In re, 71. Megit V. Johnson, 85. Melbourne Bank Case, 287. Mellin v. White, 524. Mellison, In re, 207. Mellor V. South Australia, 217. Mellors's Trustee v. Maas, 308. Meluish v. Milton, 550. Menck's Case, 500. Mendes v. Guedalla, 101. Mendelssohn, In re, 207. Menier's Case, 415. Mercantile Investment Co. v. Eiver Plate Co., 18. Mercier v. Mercier, 81, 112, 332. Meredith v. Facey, 44. Merryweather v. Moore, 516. — V. Nixan, 440. Mersey Docks, Ex parte, 538. Mersey Steel Co. v. Naylor, 206, 467. Metcalfe v. Hutchinson, 199. Metropolitan Asylum v. Hill, 520. Meux V. City Electric Lighting Co., 520, 533. Michell V. Michell, 342. Michelmore v. Mudge, 367. Micklethwaite v. Micklethwaite, 518. Middlemas v. Stevens, 92. Middleton v. Moore, 153. — V. Spicer, 84. Mid-Kent Fruit Factory, In re, 303, 467, 468. Midland E. C. v. Silvester, 436. Midwinter v. Midwinter, 344. Midwood V. Manchester Corpora- tion, 520. Mignan v. Parry, 402. Mildmay v. Quicke, 164. Miles V. Harrison, 76. Miller, In re, 193, 205. Miller v. Collins, 167. — V. Daintree, 403. — , . Sharp, 483. — -e. Warmington, 534. Millett V. Davey, 259, 262. Mills, In re, 44, 51. Mills V. Farmer, 74. — p. Fowkes, 470. — V. Fox, 484. — V. Haywood, 491. — V. Johnston, 404. Milner's Settlement, In re, 236, 341. Milnes v. Gery, 495. XXXll INDEX TO CASES CITED. Milroy v. Lord, 31. Minet v. Leman, 169. Mirams, In re, 55. Mirehouse v. Scaife, 218. Mitchell, Ex parte, 377. Mitchell V. Hayne, 538. — V. Homfray, 409, 423. Mitchell's Case, 197. Mocatta v. Bell, 303. Moggridge v. Hall, 545. — V. Thackwell, 71. Mogridge v. Clapp, 272. Mogul SS. Co. V. Maegregor, 524. Molineux v. Evered, 432. Molony v. Brooke, 221. Molton V. Camroux, 415. Molyneux v. Hawtrey, 500. — V. Richard, 475. — V. Usher, 6. Molyneux'a Case, 415. Monckton & Gilzean, In re, 502, 507. Monetary Adv. Co. v. Cater, 307. Monro v. Taylor, 488. Montacute v. Maxwell, 36. Montagu, In re, 93. Montagu v. Sandwich, 182. Montenore v. Guedalla, 52. Moodie v. Bannister, 197. (Moody V. Penfold, 84. Moore, In re (21 Ch. D.), 98. Moore v. Darton, 143, 144. — V. Dixon, 209. — V. Knight, 451. — V. Moore, 144. — V. Shelley, 254. — V. Smee, 324. — V. Somerset, 71. — V. Wilson, 123. Mooreoroft v. Dowding, 320. Moors «. Marriott, 193. Mordaunt Brothers ii. British Oil Co., 304. Morgan v. Higgina, 424. — V. Hill, 439. — V. Mallesou, 143. — V. Richardson, 147. — V. Rowlands, 250. Morice v. Bishop of Durham, 70. Morley v. Bird, 17, 86. — v, Loughman, 416. — V. Morley, 103. Morrell v. Morrell, 550. Morret v. Paske, 274. Morris v. Chambers, 88. — V. Morris, 220. Morrison v. Arnold, 549. Mortimer v. Bell, 429. Mortimer v. Capper, 400. Mortlock v.. BuUer, 490, 493. Mosely v. Koffyfontein Mines, 414. Moses, In re, 124. Moss, Ex parte, 295. Moss, In re, 436. Mouflet V. Cole, 514. Moulis V. Owen, 54. Moxon V. Payne, 409. Mucklow V. Fuller, 100. Mullens v. MUler, 486. MuUer ». Trafford, 161, 514. Mullings -0. Trinder, 496. MuUina v. Smith, 152. Munns v. Burn, 135. Murray v. Barlee, 195, 327, 334. — V. Bogue, 527. — V. Parker, 400. Mutlow V. Bigg, 166, 168, 179. Mutton V. Peat, 469, 470. Myers, In re, 430. N. S. W. Bank V. O'Connor, 300. Nail V. Punter, 14. Nanson v. Gordon, 458. Nash V. Ash, 450. — u. Calthorpe, 372, 413. — V. De Freville, 517. — -u. Dix, 492. National Corporation, Re, 206. National Bank v. United Hand in Hand Co., 258. — Permanent Society, In re, 120. — Provincial Bank v. Marshall^ 515. — Trustees u. General Finance, 108. Native Lands Case, The, 91. Neal, Ex parte, 207. Neale v. Neale, 397. Nedby d. Nedby, 422. Neesom -v, Clarkson, 616. Neilson v. Betta, 461. — V. Mossend Iron Co., 452. Nelson v. Faber, 466. — V. Stooker, 372. Nelson Sons v. Nelson Line, 49^ Nevill v. Snelling, 426. — V. Wilkinson, 484. Nevill's Case, 444. Nevin (Violet), In re, 376. New, Re, 122. Newbigging v. Adam, 408. INDEX TO CASES CITED. xxxni Newbould v. Smith, 250. Newdigate v. Hope, 474. Newfoundland Government v, Newfoundland R. C, 465. New Land *Co. & Gray, In re, 497. Newlands v. Paynter, 331. Newlove v. Shrewsbury, 307. Newman, In re, 424. Newman v. Newman, 52. — V. Selfe, 285. Newstead v. Searles, 38. New York Breweries Case, The, 352. Newton v. Charlton, 437. — V. Newton, 12, 511. — V. Rolfe, 128. — V. Scott, 202. — V. Sherry, 211. Newton (Infants), In re, 376. Nicholas v. Ridley, 277. Nicholson, In re, 123. Nicholson v. Drury Buildings, 343. — V. Hooper, 92. — V. Revill, 443. — V. Smith, 496. Nickalls V. Merry, 418. Nickels v. Hancock, 493. — V. Nickels, 147. Nicol V. Nicol, 329. Niell V. Morley, 415. Nightingale v. Reynolds, 218. Nisbett & Potts, In re, 499. Nives «'. Nives, 88. Nixon u. Cameron, 126. Noble V. Brett, 147. — V. Edwards, 506. Noel V. Bewlay, 348. Nordenfelt v. Maxim Co., 420. Norfolk V. Herries, 94. Norris, Me, 107. Norris v. Frazer, 7, 60. — V. Jackson, 495. — V. Wilkinson, 297. North London R. Co. v. G. N. Rail. Co., 511. Norton v. Bell, 423. — V. Compton, 222. — V. Florence Land Co., 19. Norvell, Bm parte, 485. Nott V. Dunsany, 182. Nottingham, Ex parte, 361. Nottingham Co. v. Butler, 499. Nottley V. Palmer, 176. Nov V. Ellis, 95. — V. Pollock, 253, 277. Noyes v. Crawley, 456. Nutt V. Easton, 423. Nuttall V. Staunton, 437. Nyberg v. Handelaar, 302. Oakes v. Turquand, 412. Oatway, In re, 471. Obee V. Bishop, 112. Obert V. Barrow, 70. Oohsenbein v. Papelier, 388. O'Connor v. Spaight, 462. Oddy, In re, 141. Odessa Tramways v . Mendel, 476 . Official Receiver, Ex parte (1907, 1 K. B. 149), 497. — Ex parte (1907, 1 K. B. 865), 94. — Ex parte (1911, 1 Ch.), 497. — V. Tailby, 46. Ogden V. Fossick, 475. Oglander o. Baston, 367. Ogsdon v. Aberdeen Tramways, 522. Olde V. Olde, 507. Oldfield V. Oldfield, 58. Oldham v. Hughes, 167. Olive V. Westerman, 105. Oliver v. Brickland, 183. — V. Hinton, 9, 268, 278, 298, 517. Oliver's Settlement, In re, 173. OUey V. Fisher, 402. Oppenheim v. Schweder, 149. Orby V. Trigg, 239. Orchis, The, 310. Oriental Bank, In re, 205, 446. Ormes v. Beadel, 409. Ormrod v. Wilkinson, 68. Orr V. Diaper, 542. Orrell v. Orrell, 175. Osborne v. Williams, 421. Osborne's Case, 225, 525. Otter V. Vaux, 243. Otway V. Otway, 322. Overton v. Banister, 14. Owen, In re, 196. Owen V. Cronk, 129. — V. Delamere, 126, 208. — V. Gibbons, 218. — V. Homan, 435. — V. Richmond, 134. Oxford's (Earl of) Case, 511. XXXIV INDEX TO CASES CITED. Paddon v. Eiohardson, 119. Padwiek v. Stanley, 437. Pagani, Se, 385. Page V. Linwood, 260. Paget v. Ede, 18. — V. Marshall, 401. — V. Paget, 293, 342. Paine v. Meller, 393. Palllser v. Gurney, 335, 348. Palmer, In re, 385. Palmer v. Crawfurd, 150. — V. Emerson, 106. — V. Hendrie, 291. — V. Noake, 432. — V. Eleh, 86. — V. Young, 92. Panes v. Att.-Gen., 84. Pape V. Westaoott, 279. PapiUon i;. Voice, 26. Paquin v. Beauclerk, 349. — V. Snary, 55. Pardo V. Bingham, 195. Paris Skating Kink Co., In re, 57. Parker, In re, 441. Parker v. Clarke, 261. — V. First Avenue Co., 521. — V. Lewis, 408. — V. M'Kenna, 109, 461. Parker's Trust, In re, 139. Parkers, In re, 446, 458. Parkes v. White, 135, 340. Park Gate Waggon Works Co., In re, 57. Parkin v. Thorold, 491. Parkington v. Heywood, 206. Parnell v. Kingston, 83. Parr's Bank v. Yates, 251, 447. Parry, Re, 39. Parry & Hopkin, He, 519. Partington, Re, 102. Partridge v. Partridge, 417. Pasmore v. Oswaldtwistle D. C, 523 Patch V. Ward, 261, 398. — V. Wild, 260. Patman v. Ilarland, 269. Patrick v. Simpson, 83. Pattissou V. Gilford, 546. Pattle u. Hornibrook, 480. Paul V. Paul, 27. Pawley v. Pawley, 136, 342. Pawley & L. & P. Bank, In re, 95. Payne ■». Mortimer, 193. Peachy v. Duke of Somerset, 325. Peacock v. Monk, 330. — i). Penson, 516. Pearce, Ex 'parte, 207. Pearee, In re, 201, 232, 241. Pearce v. Bastable'a Trustee, 485. — V. Bullard, 201,*498. — V. Crutchfield, 378. — V, Gardner, 480. — V. Marsh, 95. — V. Morris, 245. Pearson v. AJnicable Assurance, 29. — V. Benson, 233. — V. Cardon, 539. — V. Wilcook, 208. Pease v. Courtney, 480. — V. Jackson, 276. — V. Pattinson, 68. Peat V. Clayton, 297. Pedder's Settlement, Re, 168. Peed's Case, 108. Peek V. Gurney, 408. Peers v. Lambert, 489. Pegler v. Gillatt, 175. — V. White, 493. Peltou Brothers v. Harrison, 336, Pembroke v. Friend, 215. Pendarves v. Hartley, 385. Penn v. Lord Baltimore, 17, 479. Pennell v. Franklin, 107. Peover v. Hassell, 61. Perceval v. Phipps, 530. Percival o. Dunn, 49. Percy v. N. P. Bank, 442. Perfect v. Lane, 426, 492. Perham v. Kempster, 270. Perkins v. Bagot, 431. — v. Ede, 489. Perry v. Holl, 66, 272. Perry-Herrick v. Attwood, 299. Persse v. Persse, 398. Petre d. Petre, 379. Pettiward v. Prescott, 15. Petty V. Taylor, 527. Peyton v. Bury, 156. Phillipo V. Munnings, 111. Phillips, In re, 51, 256. Phillips, ISx parte, 169, 376. Phillips ». Llano ver, 545. — 0. Miller, 265, 500. — u. Phillips (31 L. J. Ch.), 13. — V. Phillips (9 Hare), 462. — V. Phillips (29 Ch. Div.),91. — V. Silvester, 503. Phillipson v. Kerry, 403, 423. Phipps V. Lovegrove, 51. — V. Steward, 542. Phoenix OfHce v. Spooner, 438. Picard v. Hine, 477. INDEX TO CASES CITED. XXXT Kckard v. Sears, 428. Pickering v. Ilfracombe E. C, 74. Piokersgill v. Rodger, 177. Pidcook V. Bishop, 435. Pierse v. Waring, 422. Piggott V. Straton, 433, 516. Pike V. Cave, 353. — V. Fitzgibbon, 3341 Pilcher v. Arden, 313. Pile V. Pile, 289. PUgrem v. Pilgrem, 91. Pini V. Roncoroni, 450. Piper V. Piper, 346. Pitman v. Holborrow, 150. — V. Pitman, 158. Pitt V. Cholmondeley, 463. — V. Pitt, 81. Pizzi, In re, 501. Piatt, Re, 382. Piatt V. Mendel, 244. Playing Cards Case, 531. Pledge V. White, 279. Plowden o. Gayford, 339. Plumb u. Fluitt, 267. Plumtree's Marriage Settlement, In re, 182, 183. Plunket V. Lewis, 190. — V. Penaon, 192. Podmore v. Gunning, 7. Pole V. Pole, 93. Pollard, Mx 'parte, 18. Pollard, In re, 201. Pollard V. Greenvil, 391. — V. Photographic Co., 529. Pollard's Settlement, In re, 341. Pollock V. Rabbits, 503. — V. Worrall, 187. Ponsford v. Union Bank, 45, 303. Pontypool Guardians v. Buck, 81. Pooley V. Quilter, 109. Pope, In re, 202, 254, 256. Pope's Contract, In re, 121, Add. Porte V. Williams, 146. Porter v. Lopes, 536. — V. Moore, 410. Portsea Island v. Barclay, 129. Post V. Marsh, 491. Potter V. Sanders, 263. Pottinger, Ex parte, 205. Potts, In re, 202. Poulter V. ShackeU, 369, 467. Pound & Co., In re H., 283. Powell V. Birmingham, 532. — V. Glover, 109. — li V- Hemsley, 610. — V. Morgan, 15S. — V. Thomas, 14. Power V. Banks, 131. Power V. Hayne, 150. Powles V. Hargreaves, 472. Powys V. Blagrave, 519. — V. Mansfield, 188. Poyzer, In re, 154. Pratt V. Inman, 205. Prescott V. Phipps, 246. Erestou «. Tunbridge Wells, 255, 259. Preston's Trustee v. Cooke, 497, Price, In re, 115. Price V. Bury, 294. — V. Dyer, 488. — V, Jenkins, 34. — V. John, 216. — V. Macauiay, 490. — V. Neault, 428. — ». North, 198. — V. Price, 115, 199, 467. Priddy v. Rose, 133. Priest 1). Uppleby, 131. Priestley v. Ellis, 43. Pringle v. Gloag, 466. Probert v. Clifford, 231. Prodgers v. Langham, 33. Pressor v. Rice, 266. — V. Watts, 269. Protector Endowment Co. v. Grice, 256, 321. Prowse V. Abingdon, 234. Prudential Ass. Co. v. Knott, 512. Pryce, In re, 219. Pryse, In re, 98. Pryterch v. Williams, 254. Pudsey Gas v. Bradford Corp., 520. Pugh V. Heath, 248. PuUen V. Ready, 397. Pulman v. Meadows, 221. Pulsford V. Devenish, 211. Pulteney v. Darlington, 165, 168. — V. Warren, 388. Pulvertoft V. Pulvertoft, 34. Pumfrey v. Fryer, 187. Pump House Hotel Case, The, 48. Purcell V. Macnamara, 238. Purdew v. Jackson, 363. Pusey V. Desbouverie, 397. — V. Pusey, 478. Pye, Ex parte, 187. Pye V. Daubuz, 405. — V. Pye, 329. Pye's Case, 321. Pyle V. Pyle, 160. Pyle Works, In re, 237. Pym V. Blackburn, 393. — V. Lockyer, 190. Pyrke v. Waddingham, 496. XXXVl INDEX TO CASES CITED. QuAETBEMAiNE's Case, 201. Queeusberry (Duke) v. ShebJ beate, 530. Quioke, In re, 161. Rabbidge, Ex parte, 485. Raby v. Ridehalgh, 133. RadelifBe, In re, 194. Radoliffe v. Bewea, 431. — V. Rushvvorth, 460. Raffety v. King, 248. — V. Sohofield, 325. Raggett, In re, 280. Rainsford's Case, 428. Rains v. Buxton, 9. Ramsay v. Gilchrist, 73. Ramsden v. Dyson, 93. Ramskill v. Edwards, 440. Rand v. Cartwriglit, 241. Randall v. Morgan, 22. — V. Russell, 91. Randell, In re, 72. Randell v. Dixon, 72. Ranelagh's Will, In re, 91. Rankin v. Lay, 479. Raper's Case, 285. Ratcliff, In re, 98, 139. Ratcliffe v. Barnard, 278. Ravald v. Russell, 241. Rawley v. Rawley, 468. Rawlina v. Wickham, 409, 453. Rawson v. Samuel, 465. Eawstone v. Parr, 401, 435. Ray, Re, 383. Ray V. Grant, 185. Raybould v. Turner, 128. Rayner v. Rayner, 121. Read v. Brookman, 390. Reddaway v. Banliam, 530, 532. Reddiugton v. Reddington, 81. Rede v. Oakes, 104, 492. Redfern v. Bryning, 403. Redgrave v. Hurd, 406. Reed v. Norris, 441. Reea v. Bernardy, 56, 411. Reese River v. Smitli, 413. Reeve v. Att.-Gen., 281. — V. Jennings, 512. Reeves v. Barlow, 309. — V. Butcher, 245. Reg. V. Gyngall, 374. — ('. Leresehe, 344. Reg. V. London (Lord Mayor), 354. Reid V. BiokerstafE, 500, 501. — V. Reid, 347, 370. Reis, In re, 41. Renals v. Cowlishaw, 514. Rendall v. Blair, 69. Renshaw -v. Queen Anne's Man- sions, 450. Rex V. Gyngall, 374. — V. James, 353. — V. Sutton, 373. Reynard v. Arnold, 161. Reynell v. Sprye, 397. Reynolds v. Godlee, 164. Rhoades, In re, 220. Rhodes, Re, 388. Rhodes v. Bate, 423. — V. Muswell Hill, 155. — e. Rhodes, 383, 550. — V. Sugden, 313. Rice V. Noakes, 239. — V. Rice, 10. Rich V. Cocksll, 174, 332. Richard & Great Weateru R. C, In re, 504. Richards ». Chambers, 364. — V. Delbridge, 31. Richardson, In re, 437. Richardson v. Le Maitre, 450. — V. Smallwood, 32. — V. Smith, 495. Richeraon, Re, 164. Richmond v. White, 220. Riekard v. Barret, 232. Riokett V. Enfield Church- wardens, 515. — V. Eickett, 112. Ridd V. Thorne, 456. Rider v. Kidder, 80. Ridges V. Morrison, 186. Ridler v. Ridler, 32. Ridley v. Ridley, 222. Ridout V. Fowler, 494. — V. Lewis, 357. Rigby V. Bennett, 434. — V. Great Western R. C, 642. Riley & Streatfield's Contract, In re, 509. Rimmer v. Webster, 10. Ripon City, The, 311. Ritson V. Ritson, 216. Rivis V. Watson, 535. Roach V. Trood, 431. Robb V. Green, 524. Robbins v. Alexander, 194, 220. — V. Legge, 149. — • V. Whyte, 6, 253. Roberts v. Croft, 297. INDEX TO CASES CITED. XXX Vll Roberts v. Crowe, 444. — V. Roberts, 233, 397, 421. — V. Tunstall, 15. Robins v. Gray, 311. Robinson, In re, 55, 57, 331. Robinson v. Ashton, 451. — V. Brewery Co., 428. — V. CMc, Ltd., 255. — V. Harkin, 116, 439. — V. Lynes, 336. — Y.. Mollett, 426. — u. Wheelwright, 171. — V. Wilson, 438. — V. Workington Corporation. 523. Robson V. Plight, 140. — V. Smith, 275. Roch V. Cullen, 186. Rochester (Bishop) v. Le Fanu, 154. Rodiok V. Gandel, 49. Roe V. Pogson, 226. Roger Cholmeley's School v. SeweU, 324. Rogers v. Hosegood, 513. — V. Humphrey, 254. — V. Ingham, 396. — V. Jones, 177. — V. Rice, 324. Rolfe V. Gregory, 130. RoUand v. Hart, 263. Rolls V. Pearce, 144. Rolt V. Hopkinson, 274. Rooke V. Dawaon, 69. Roots V. Williamson, 12. Roper V. Doncaster, 337. — V. Ryland, 77. Rosefield v. Prov. Union Bank, 306. Roas V. Buxton, 316. — V. White, 455. Ross's Case, 27. Ross's Trusts, In re, 340. Roaaiter v. Miller, 495. Rourke v. Robinson, 300, 301. Rouse V. Bradford Bank, 443, 471. Routledge, In re, 140. Rowbotham v. Dunnett, 60. Rowe, In re, 469. Rowe V. Gough, 226. — V. Wood, 256, 259. Rowlands v. Evans, 453. Rowley v. Adams, 114. - — V. Ginnever, 91. Rowlls V. Bebb, 124. Rowsell V. Morris, 194. Roxburghe v. Cox, 55, 465. Royal Bristol Society v. Bomash, 490, 503. Royal British Bank v. Turquand, 271. Royal Corsets Case, 532. Roylance v. Lightfoot, 237, 248. Rudd V. Lascelles, 490, 508. Rmnney & Smith, In re, 65. Rush V. Lucas, 323. Rushmer v. Polsue, 521. Russell, Sx parte, 33. RusseU, In re, 424. Russell V. Jaekson, 60. — V. Russell, 294. Ruther V. Ruther, 345. Rutter «;. Everett, 50. Ryan v. Mutual Tontine, 475. Ryder, He, 385. Ryland, Me, 77. Saccharin Corporation Case, 533. Saokville-West v. Att.-Gen., 544. Sadd V. GrifBn, 316. Sadler v. Cobb & Co., 427. — V. Worley, 283. Saffron Waldeu v. Rayner, 51. Sainter v. Ferguson, 321. Salaman, Bx parte, 41. Sale V. Moore, 59. Salmon v. Duucombe, 1. — V. Matthews, 253. Salomon v. Salomon & Co., 414, Salt, £,e, 386. Salt V. Northampton, 44, 83, 238, 257. — V. Pym, 550. Salusbury v. Denton, 71. Sampson & Wall, In re, 378. Samuel v. Howarth, 442. — V. Newbold, 437. — V. Samuel, 322, 325. Samuel Allen, In re, 10. Sandbaoh & Edmundson'a Con- tract, In re, 486. Sander v. HeathHeld, 222. Sanders v. Sanders, 196, 197. Sanders-Clark's Case, 521. Sanderson's Trust, In re, 59. Sandon v. Hooper, 257, 259. Sanguinetti v. Stuokey's Bank, 40. Sankey Brook Co., In re, 237. Sansom & Narbethj In re, 503. Santley v. Wilde, 245. xxxvm INDEX TO CASES CITED. Sass, In re, 436, 446. Saull V. Browne, S12. Saumarez, In re, 45. Saunders, In re, 55. Saunders, Ex parte, 55. Saunders v. Dehew, H. — V. Shafto, 431. — V. Vautier, 75. Saunders-Davies v. Saunders- Davies, 218. Savery v. King, 109, 398. Savile v. Drax, 296. Sawyer v. Sawyer, 117, 136, 334. Sayer v. Sayer, 72. Sayre v. Hughes, 80. Soawin v. Soawin, 82. Scholey v. Peck, 314. Sehove v. Sohmincke, 528. Schroder v. Schroder, 175. Soobie v. Collins, 290. Scotney v. Lomer, 103. Scott V. Beecher, 215. — V. Coulson, 400. — V. Hengler, 418. — V. Jones, 196. — V. Leak, 149. — V. Lyon, 130. — V. Morley, 195, 336. - — V. Rayment, 448. — V. Scott, 155. — V. Spashett, 360, 370. — V. Surman, 132. Scott & Alvarez's Contract, In re, 509. Scottish Equitable Life, Re, 80. Scoworoft, Se, 68. Scriren v. Tapley, 368. Scrivener v. Aldridge, 225. Scudamore v. Scudamore, 162. Seabrooke, In re, 219, 333. Seager-Hunt, In re, 383. Searle v. Law, 28. Seaton v. Burnand, 435. — V. Seaton, 364, 378. Seaward v. Paterson, 525. Seddon v. Salt Co., 412. Seear v. Lawson, 57. Seed V. Bradley, 306. Seely v. Jago, 166. Sefton, Re, 382. Selby V. Cooling, 125. — V. Pomfret, 279. — V. Selby, 228. Sellack v. Harris, 7. Sellers v. Matlock Bath, 523. Sells V. Sells, 403. Selwyn v. Garfitt, 287. Sewell, In re, 469. Seymore v. Tresilian, 358. Seymour v. Pickett, 470. Shaftesbury v. Arrovvsmith, 543. Sharland v. Mildon, 352. Sharp V. Jackson, 44. — V. Lush, 208. — V. Eichards, 280. — V. St. Sauveur, 84. Sharpe v. Hodgson, 146. Shaw V. Buuney, 261. — V. Gates, 105. — o. Cunliffe, 155. — V. Marten, 219. Sheddon v. Goodrich, 175. Sheffield, Ex parte, 57. Sheffield v. Eden, 260, 261. Sheffield Banking Co. v. Clayton, 439. — Building Society v. Aizle- wood, 110. — Corporation v. Barclay, 429.. Shelfer's Case, 533. Shelley v. Westbrooke, 375. Shelmardine v. Harrop, 261. Shenstone v. Brock, 144. Shephard, In re, 6. Shepheard v. Bray, 440. — V. Walker, 491. Shepherd, Ex parte, 329. Shepherd v. Croft, 489. — V. Jones, 257. — V. Titley, 274. Sherwin v. Shakspear, 209, 505. Shiel, Ex parte, 351. Shillito V. Biggart, 310. — V. Hobson, 29. Shirley v. Stratton, 492. Shirreff v. Hastings, 193. Shove's Case, 256. Shrager v. March, 40. Shropshire Union Railway ), add a reference to Manks v. Whiteley, 1911, 2 Ch. 448. P. 289, — footnote (s), — In re Bladon, Dandy v. Porter, is now reported in 1911, 2 Ch. 350. P. 439, — in footnote («), add a reference to Stirling v. Burdett, 1911, 2 Ch. 418. P. 548, — ^The paragraph ending with the words " undue influence («), " — or for illegality («)," near top of page, is to be continued as follows: — "And {e.g.') in Woodhouse v. Shelley (2 Atk. " 535), where the plaintiff (who was an impulsive young " female and the child of wealthy parents) gave to the def en- " dant her fiance (who was a detrimental and a schemer) her " bond in 2,OO0Z., conditioned for payment to him of the " sum of 1,000Z. in cash, in case she did not marry him " before a certain date (which was specified in the condition), " — the Court ordered the peremptory delivery up and " cancellation of the bond." V MEMORANDUM. By tho Gonveyanoing Act, 1911 (1 & 2 Geo. 5, c. 37), which received th■ 'Tofjfie- Conveyancing Actj 1881, is repealed (andj in- •cidehtally, •Malins' Act is also repealed), — and th#.Iike - powers are how ; ma.de ;^eroiseable 'under this Act,: — = thoSowers now'J^liaSln'&'even to a mtoridd worn ' :.,i;n.tCTeSts il^ader her :own fla^i*^^^ ^' . -, ■pages- j^^; 280 . — By sect, 9, the; mortgagee, Vif a, feustee, . may now «xfercise the power of sale, although he has , 'tiecdime entitled by foreclosure absplut^^ — equally a^ >:^.., when his titli^ is become, absolute by adverse possession. ■ '~::~i§aigsl W7'.~-By sect. 5, _the purchaser .-flrom the selling v .i" " laortgagee is not now concerned at all, ' whether the ' notjofe; has been given or not. . . '. "'■;"' Page'2§8,^By sect. 4, certain useful powers are now made -'ineid:ental to the mortgagee's exercise of: his 'statutory i" power; of sale. „Pages-5O.0;and 513.— By.-sect. 11, a memorandum of the ■ - ■ restrictive covenant may now "be indorsed upon (or other- ,v ■-, wise Slinexed;. to) some niajberial title-deed, so -^ to ' L convey easpress notice of it to all'vvhom it may affect. THE PEINCIPLES OF EQUITY. PART I. INTRODUCTORY. CHAPTER I. THE JURISDICTION IN EQUITY. Equity, although it corresponds in a general way with Nature aud natural justice, is yet (as administered in the Courts) the^^Mkf- much less wide than natural justice, — comprising only that tion in equity. portion of natural justice which was of a nature to he judicially, enforced, but which the old Common Law Courts omitted to enforce (a) ; and accordingly it is the The older province of equity to " supply the defects " of the common definUions of law, and to "mitigate " (where, in the interests of justice, Ind^Spialued. it is proper to mitigate) the too extreme "rigours" of the common law. Equity was iq^gld times comparatively free from the Equity in control of preceo^ts, " the measure of the Chancellor's ™chtracterf. foot" having then been (and necessarily) the only measure of the equity jurisdiction. But a Court of Equity is now bound by precedents and by settled rules, as com- pletely as a Court of Common Law is bound; and there is not, in fact, a single principle of interpretation (6), or (a) Cowper v. Cowper, 2 P. Wms. 720, on pp. 753, 754. (b) Salmon v. Duncombe, 11 App. Cas. 627. THE JURISDICTION IN EQUITY. Origin of the jurisdiction in equity, — the causes of. (1) The in- elastic and inflexible pro- cedure of the common law. (2) " The Sta- tute in Con- simili Casu," — failure of the remedy thereby pro- vided. (3) The Lord Chancellor, by direction of the sovereign and of Parliament, personally in- tervened, at length, in 22 Edw. III. Bill or petition in equity. rule of evidence even (c), that is not now indifferently applicable in both the King's Bench and the Chanoery Divisions. (1) By the old common law, every species of civil wrong was supposed to fall within some particular class; and for every class, an appropriate remedy existed, called a ivrit or breve, — the writ being the first step in every action; and the litigant was required to choose the appro- priate writ, and any preliminary stumbling on his part in the choice of the writ used to be fatal to his action . (2) Where the alleged wrong did not fall within any of the recognised writs, the plaintiff was without any redress whatever, — Until, by the statute " In Consimili Casu " (13 Edw. I. s. 1, c. 24), it was enacted, that "whensoever from henceforth it shall fortune that in one case a writ is found, and in the like case (requiring the like remedy) none is found, the writ clerks shall agree in making the writ," — and failing to agree upon any form of writ, they were to adjourn the matter to the next Parliament. (3) The statute " In Consimili Casu " proved, however, a wholly inadequate remedy; and the only course which then remained open to suitors, was to petition the King in Council: Upon which petition, the King used to refer the matter (on each particular occasion) to the " Keeper of his Conscience " (the Chancellor) for his consideration; and eventually, in the reign of Edward III., the Court of the Chancellor (Scil., the Court of Chancery), became a permanent jurisdiction, distinct from the Common Law Courts, and empowered to give relief in all those cases which appeared to demand "extraordinary/" relief, — the ordinance 22 Edw. III. having referred, generally, aJl matters which were "of grace" to the Chancellor. And from the date of that ordinance, suits by petition or bill {without any preliminary writ) became the common course of procedure in the Court of Chancery, — On which bill or petition being presented, if the Chan- cellor (on personally looking into it) thought that the matter was one " of grace," and that it called for extra- {c) Boig V. Birrell, 1899, 2 Ch. 50. THE JURISDICTION IN EQUITY. < ordinary relief, u vxrit of subpoena was issued by him, summoning the defendant to appear and to answer the complaint, and to abide by the order of the Court. Latterly, the personal examination of the bill by the Chancellor was dispensed with, the signature of counsel to the bill being accepted as suf&cient for the issue of the writ of subpoena {d) ; and, by the Chancery Jurisdiction Act, 1852 (e), the writ of subpoena to appear and to answer the complaint was (as from the year 1852) super- seded altogether, being replaced by a mere indorsement to the like effect on the bill . By and in consequence of the Judicature Acts, 1873 — The modem 1910, and the rules and orders from time to time made andTq^ty*'' thereunder, law and equity have now been fused into one system, and a uniform procedure in the Chancery Division and in the King's Bench Division has been introduced, and has become established. And regarding such new procedure, it is sufficient to mention, that an action in the Chancery Division of the High Court is now commenced (as in the King's Bench Division) by issuing a writ, — the writ being now capable of expressing every form of pos- sible claim; and the writ may or may not be followed up by a statement of claim on the part of the plaintiff, — such statement of claim corresponding with the old bill to the Lord Chancellor, and being usually the first pleading on the part of the plaintiff in the action. Prior to the fusion of law and equity so effected, it was Oiassifioatiou usual (in Treatises on Equity) to classify the various sub- ?*ris(£otioii— ject-matters falling within the jurisdiction of equity by prior to, and relation to the common law, — and accordingly to sub- affectedbV^ divide the jurisdiction under throe heads, viz., the the Supreme Exclusive, the Concurrent, and the Auxiliary ^VLvisAiotions Mature Act"'^'' in equity. But, by the Judicature Act, 1873, ss. 24, 1873. 25, in every civil cause or matter, law and equity are now to be administered concurrently, — each Division of the High Court exercising all the jurisdiction of the other Divisions (in addition to its own proper jurisdiction); and where there is any conflict or variance between the (rf) Langdell's Summary of Equity Pleading. (e) 16 & 16 Vict. 0. 86. b2 THE JTJEISDICTION IN EQUITY. The old dis- tinction be- tween the exeluaive and the concurrent jurisdictions, — ^importance of main- taining. rules of equity and the rules of the common law, the rules of equity are to prevail. However, by s. 34 of the Act, it is expressly enacted, that (subject to the general provisions of the Act) there shall be assigned to the Chancery Division all the causes and matters which are specified in the now stating section, and which comprise (roughly) all the various matters which (prior to the fusion) used to fall within the exclu- sive jurisdiction of equity. The effect, therefore, of the Judicature Acts has been (1) to nominally, put an end to the exclusive jurisdiction of the Court of Chancery, and yet (2) to retain as exclu- sive all that part of the jurisdiction which was origiually exclusive; but (3) it abolishes the auxiliary jurisdiction altogether, both nominally and practically, — Scil., rela- tively to the Common Law Courts, — Because the suitor in the King's Bench Division now no longer needs the aid (auxilium) of the Chancery Division for any purpose whatsoever. Therefore, the "exclusive" jurisdiction of equity must now be called the originally exclusive juris- diction, — the jurisdiction being now, iu all cases, " con- CUKEENT "; but with only that one (merely verbal) modi- fication, the distinction between the originally exclusive jurisdiction and the originally concurrent jurisdiction is still one of vital importance, — it being equitable estates rights and remedies which are regarded in the originally exclusive jurisdiction, while it is legal estates rights and remedies that are regarded in the originally concurrent jurisdiction (/): And, nota bene, the principles of equity differ very materially, according as it is sought to apply them in the one or in the other of these two jurisdic- tions {g) : Wherefore the old distinction is proper enough to be retained in treating of equity, — and it is convenient also to retain it. (/) Clements T. Matthews, 11 Q. B. D. 808, on p. 814 ; and the dis- tinction was approved on pp. 286, 287, in 15 Q. B. D. {Joseph v. Lyons), [g) Lagunas Nitrate Co. v. Lagunas Syndicate, 1899, 2 Ch. 392. CHAPTER II. THE MAXIMS OF EQUITY. Equity is pre-eminently a science, — and starts with and assumes certain maxims, which embody the fundamental notions (or postulates) of the science; and the maxims of equity are the twelve following, that is to say: — (1) Equity will not (by reason of a merely technical Maxims of defect) suffer a wrong to be without a remedy; *l™*y- (2) Equity follows the law; (3) Where there are equal equities, the first in time shall prevail; (4) Where there is equal equity, the law shall prevail; (5) He who seeks equity, must do equity; (6) He who comes into equity, must come with clean hands; (7) Delay defeats equities; (8) Equality is equity; (9) Equity looks to the intent, rather than to the form; (10) Equity looks on that as done, which ought to have been done; (11) Equity imputes an intention to fulfil an obliga- tion; and (12) Equity acts in per sonant. (1) Equity mil not (by reason of a merely technical (i) Equitywiii defect) suffer a wrong to be without a remedy. — For ex- "fa merely"" ample, where there was a legal mortgage and the mort- technical de- gagor wanted either to recover the possession or to T^rong\o^be^ ■distrain for his rent, he could not do it at law, — save in the without a name of (and as the bailiff of) the mortgagee; but he ^™^ ^' could do it in equity; and the rule of equity in theis© recovery of. respects is now (by the Judicature Act, 1873, s. 25, sub- s. 5) the rule at law also. But the mortgagee (being the legal owner) still remains the legal owner, for the purpose O THE MAXIMS OF EQUITY. of accepting a surrender of the lease (a), and for the pur- pose also of suing! the lessee on his covenants in the lease (6), and of giving the notice (before ejectment) which is now (by the Conveyancing Act, 1881, s. 14) re- quired to be given to the lessee (c), — although, semble^ the mortgagor may also (under s. 10 of that Act) sue for the lessee's breach of covenant (d) . Execution. Also, where a successful plaintiff could not have had legal execution, because of a prior legal mortgage, equity interposed and gave him " equitable relief in the nature of execution " (e), by the appointment of a receiver, with or without an injunction (/), or other incidental relief (^r); and the Common Law Courts also now grant the like relief. But, in all these cases of equitable execution, it is to be understood, that there is some technical difficulty in the way (whereby the proper legal execution, — ^whether by fi. fa. for goods (h), or by elegit for lands (i), — is not available), and that (but for that techaical difficulty) the proper legal execution could have issued. iowf?^^w^' ^^^ Equity follows the law. — That is to say, as regards legal estates, equity is strictly bound by the rules of law, and acts in obedience to them; and as regards equitable estates, equity, although not bound by the rules of law, yet acts in analogy to them, wherever an analogy exists, (a) Originally And, firstly, as regards Legal estates, — It is well settled, jmkdictSn: that equity follows the law, in applying (e.g.) all the Piimogeni- canons of descent, — ^and in particular the rule of primo- of'desoent™ ''^ geniture, although that rule may in any particular appli- generaliy. cation of it be productive of the greatest apparent hard- ship towards the younger sons, there being no equity to Following the the Contrary in their favour. And even where the special may at the Circumstances create an equity to the contrary, the Courts same tune pf Equity never break through the rules of law, — being effect, — ^^^ (a) Sorbins v. TThyte, 1906, 1 K. B. 126. li) Molyneux v. Richard, 1906, 1 Ch. 34. (c) Matthews v. Uther, 1900, 2 Q. B. 635. (rf) Turner v. Walsh, 1909, 2 K. B. 484. (c) Tn re Shephard, 43 Ch. D. 131. (/) Lloyds Bank v. Medway Navigation, 1905, 2 K. B. 359. (g) Weils V. Eilpin, L. R. 18 Eq. 298. (A) Manchester, ^c. Banking Co. t. Parkinson, 22 Q. B. D. 173. if) In re Shephard, supra. THE MAXIMS OF EQUITY. 7 bound thereby; but while maintaining these rules and even founding upon them, they will avoid them in effect. — For example, if an eldest son should prevent his father from executing a proposed will devising an estate to one of the younger sons hy promising to convey that estate to his younger brother, ,and the estate accordingly is left to descend at law to the eldest son as a consequence flow- ing from Ms promise, a Court of Equity would, in such a case, interpose and say, — " True it is, you (the eldest son) have the estate at law, — in other words, the legal estate; that .we don't deny or interfere with: hut precisely because you have it, you will make a convenient trustee of it for your younger brother, who (in our opinion) is equitably entitled to it, — 8cil., because, but for your pro- mise, he would have had it under the proposed devise of it" (A;). And equity interposes in such cases on the ground of Un the ground estoppel, — So that where there is a clear estoppel, it matters °* ^^*°pp<=1- not, whether the Court is dealing with the heir (entitled under an intestacy), or with the legal devisee or residuary legatee (entitled under a will(Z)); and the person en- titled at law under a fine even (m) or under a common recovery even (w), — which two conveyances were convey- ances by record (and therefore of the very highest legal efiScacy), — would have been declared to be (in such a case) a mere trustee in equity: Therefore, where the devisee en- titled under a will prevented the testator from making a codicil (o), — or where the residuary legatee did the like {p), — in each case by representing that he (the de- visee) or she (the universal legatee) would hold himself or herself bound to carry out the intended gift, the Court has made good the gift. Similarly, where the intended gift was of a bond in which the residuary legatee was the obligor (g) . ijc) Podmore v. Gunning, 7 Sim. 644, citing Sellack v. Sarris, 5 Vin. Abr. 521. (?) Nm-ris v. Frazer, L.B. 15Eq. 318. (m) Barnesby v. Powel, 1 Ves. Sr. 284. («) Ferres v. Ferres, 2 Ab, Eq. Q'd^. (o) Barrow t. Gremmgh, 3 Ves. 151. [p) In re Maddoek, 1902, 2 Ch. 220. {q) Drakeford t. Wilks, 3 Atk. 540. THE MAXIMS OF EQUITY. — instance of equity avoid- ing the law. Bileot, no estoppel. Also, where a testator in advanced years and in ill- health induced his niece to reside with him as his housekeeper, on the verbal representation that he had left her certain property by his will, — which in fact he had prepared and executed in her favour, but subse- quently by a codicil revoked, — the Court directed, that the trusts iof the will in favour of the niece should be performed, — Scil., upon the ground that a representation that property is given (even though by a revocable instru- ment) is fully binding and effective in equity, where the person to whom the representation is made has acted upon the faith of it to his or her detriment (r) . In other words, the complete legal conveyance, effected by the operative testamentary document, was left to subsist unaffected, but to subsist subject to the contract in favour of the niece, — upon the ground that the testator had already during his lifetime, and to the extent of that contract, fettered ■where his own free power of devise. It is to be noted, however, that where the representation is of an intention simply (or is a mere promise upon honour), it will not operate as an estoppel, — ^for the purpose of avoiding the legal effect of the document (s) ; and the estoppel (even where it is a true estoppel) may have been discharged, meanwhile (t) . (b) Originally exclusive juri sdiction : Words of limitation in deeds and wills, — trusts executed, and trusts execu- tory. Secondly, as regards Equitable estates. — In construing the words of limitation (of trust estates) in deeds and wills, Courts of Equity follow, in general, the " Rule in Shelley's case," and also observe all the other rules of law, — relative to the construction of (m) and necessity for {x) words of legal limitation, — Scil., in a conveyance, as distinguished from a mere contract for value to convey («/). (c) Originally concurrent and originally exclusive jurisdictions : The Statutes of Limitations. It is instructive also, in connection with this maxim, to observe the manner in which equity dealt with and deals with the statute for the limitation of actions and suits: That is to say, — Although the old Statutes of '»■) Loffus V. Maw, 3 Giff. 592 ; Coles v. Pilkington, L. R. 19 Eq. 174. '«) Jorden v. Money, 5 H. L. C. 185. (t) Stone V. Hoskins, 1905, P. 194. [ti] Lovattv. Williamson, 1894, 1 Oh. 661. ' (x) Irwin v. Farkes, 1904, 2 Ch. 752. («/) Trinrjham v. Greenhill, 1904, 2 Ch. 457. THE MAXIMS OF EQUITY. Limitation were applicable to Courts of law only, yet equity acted upon them by analogy, — and, in general, re- fused relief where the statutee would have been a bar at law. But further, equity always discountenanced laches, and held that, to an equitable demand, laches was as valid a defence in equity as the positive bar of time at law, — So that, in the case of equitable titles and equitable remedies, equity- required, in general, that the relief, whether as regards land {z) or as regards personal estate {a), should be sought within (at the latest) the period pre- scribed for the like relief at law: And in accordance with that old distinction (which still, in effect, continues), whenever equity is dealing with equitable rights or is granting equitable redress, and there has been laches or delay, equity is even stricter than the law, — For while there are no cases in which equity will give relief (where the statutes would be a bar at law), yet there are many cases where the statutes would not be ,a bar at law, in which equity will notwithstanding refuse relief (b) : In other words, equity, in its originally exclusive jurisdiction, never exceeds (although it may stop ehort of) the limit of time prescribed at law (c), and in its originally concurrent jurisdiction, equity never either exceeds or stops short lof the limit of time prescribed at law (d) . But, of course, in the case of fraud, the Statutes of Limitation run both at law and in equity, from the time of the discovery only of the fraud (e); and although, in actions for negligence, it may be otherwise (/) and although mere ignorance of one's right of action will not prevent the statutes from running (g), still negligence which amounts to fraud (h), or ignorance induced by fraud {i) will have that effect; and occasionally, but for the purposes of equitable relief only, a mere mistake will, in equity, be deemed a fraud (Jt) . (z) SechfordM. Wade, 17 Ves. 99. (a) Kmx V. Gye, L. R. 5 H. L. 656. (b) BWke V. Gale, 31 Ch. D. 196. (c) In re Maddever, Three Towns v. Maddever, 27 Ch. D. 523. {d] FuUwoody. Fullwood, U Ch. D. 176. (e) Gibbs v. Guild, 9 Q. B. D. 59. (/) Booby V. Watson, 39 Ch. D. 178. (y) Sains v. Buxton, 14 Ch. D. 537. (A) Oliver v. Sinton, 1899, 2 Ch. 264. (i) Mulli Coal Co. v. Osborne, 1899, A. C. 351. (k) See Banuing on the Limitation of Actions, 3rd ed., pp. 226, 227. 10 THE MAXIMS OF EQUITY. (3) Qui prior est tempore, potior estjur Illustration of the rule. (3) Where the equities are equal, the first in time shall prevail, — TLat is to say, as between persons having only True'statemeut equitable interests, if such equities, are in all other re.sp\ecfs of the rule. equal (and not otherwise), the first in time shall be th& first in right, — Qui prior est tempore, potior est jure : In other words, in a contest between persons having only equitable interests, priority of time is the ground of pre- ference last resorted to; and a Court of Equity never prefers the one to the other, — on the mere ground of priority of time, — until, on an examination of the rela- tive merits, it finds that there is no other gi'ound of pre- ference between them. (I). For example, where A., B., and C. (three vendors entitled in common to a piece of land) sold the land to D.; and on the day for the com- pletion of the purchase, they executed the deed of con- veyance to D.; and in the body of the deed the payment of the entire: purchase-money was acknowledged by A. and B., and also by C; and A. and B., and also C, severally also signed receipts endorsed on the deed of conveyance for their respective purchase-moneys; ajid thereupon C. (although in fact he had not been paid his proportion of the purchase-money) negligently let D. take away the deed of conveyance (together with the other title-deeds) in his bag; and D. the same afternoon de- posited the deeds with his bankers, — The Court held, that, as between the harikers (equitable mortgagees by deposit) and C. (unpaid vendor having equitable lien), the bankers, although second in date, were first in right, because of C.'s negligence {m): Which negligence, it is to be ob- served, consisted in a positive act of imprudence on C.'s part, — and of an imprudence which proximately led the bankers to accept the proffered security of the title- deeds (w). And but for such positive act on C.'s part, C. would have retained his priority (o), — Because, gene- rally, as between suooessive equitable estates, the first in time will prevail (p) . Limits of th6 rule. (?) CapellY. Winter. 1907, 2 Ch. 376. (m) Rice v. Rice. 1 Dre-w. 73. (m) Rimmer v. Webster. 19(12, 2 Ch. 163. (o) Shropshire Union Railirnt/y. Reg., L. R. 7 H. L. 196. \p) In re Samuel Allen, 1907, 1 Ch. 575. THE MAXIMS OF EQUITY. 11 (4) Where there is equal equity, the law shall prevail, (4) Where —That is to say, where the defendant has a claim to. the equHy\hTiaw passive protection of the Court, and his claim is equal to shall prevail, the claim which the plaintiff has to call for the active aid of the Court, the Court will do simply nothing, — So that the defendant who has the legal estate will prevail: And, for example, where the trustee of a sum of stock for T., had {in a suit instituted hy T .) transferred what purported to he T.'s trust fund into Court, and the fund had heen thereafter treated as belonging to T.'s estate, — And it appeared afterwards, that the trustee had provided himself with the means of paying T.'s fund into Court by fraudulently misappropriating funds which he held in trust for B., — ^Upon the question, whether B. had the- right to follow the money in Court as against T ., the Court held that B. had no such right, — Scil., Because B.'s right to follow the money was no greater than T.'s right to retain it; and the circumstanm of the legal title being held for T. was sufficient to create a preference in T.'s favour (g); and the principle of that decision has been followed in many modern cases. A defendant may therefore, in general, set up, and sue- Defence of oessfully set up, the defence that he has purchased the va[uabie con- property for value and without notice: Because, firstly, sideration _ where the defendant who sets up that defence has the / % p, • +jfl; legal estate, and has obtained it at the time of his pur- having equi- dhase, equity will grant no relief against him (r) ; and *^^^® defen- although he should not have obtained the legal estate at dant'iegai the time of his purchase, yet he may protect himself by equitahie subsequently getting in the legal estate (s), so long as estate both, he does it without becoming party to a breach of trust {t), — Scil., because the equities of both parties being equal, there is no reason why the purchaser should be deprived of the advantage which he subsequently obtains at law by his superior diligenro. Also, in the case of lands (m), (}) Thorndike v. Sunt, 3 De G. & J. 563. \r) Jones v. Fowles, 3 My. & K. 581. (s) Saunders v. Sehew, 2 Vem. 271. (t) Carter v. Carter, 3 K. & J. 617. (m) Wilmot V. Fike, 5 Hare, 14. 12 THE MAXIMS OF EQUITY. although not in the case of personal estate (x), where the purchaser has not actually obtained but has only the best right to obtain the legal estate, he will be entitled to its protection. And here note that, in the case of lands, a purchaser for value who obtains possession of all the title-deeds, — or who (failing that) takes a declaration of trust from the trustee, — is considered to have the best right to call for the legal estate in the lands, as against any other merely equitable purchaser who has neglected to do so (y) : All which rules apply also in favour of mort- -whether legal or equitable (z) . (b) Plaintiff having legal estate, and defendant equitable estate. (c) Plaintiff having equi- table estate only, defen- dant also having equi- table estate only. But, secondly, where the defendant who sets up the defence has only the equitable title, and the plaintiff has the legal title, — The defence, although it used to be good where the plaintiff applied to the auxiliary jurisdiction of the Court («), is not note, and since the Judicature Acts, 1873 — 75, has not been, a good defence at all, either to the diso'overy of, or to the delivery up of, the title-deeds of an estate (b). And even under the old law, the defence in question was never effective, in oases where the Court of Chancery (concurrently with the Courts of Common Law) afforde'd legal relief (c) ; or, generally, where the plaintiff could prove his case, without requiring the Court to aid him in doing so (d) . Thirdly, where neither the plaintiff nor the defendant had the legal estate, and neithet of them (in the case of lands) had any better right than the other to call for the legal estate, but each of them, had the equitable estate only, — The Court never gave any aid or preference to either, but determined their rights by reference to their respective dates; and the same rule still holds good, — Sdl., Because "every conveyance of an equitable in- («) Roots V. Williamson, 38 Ch. D. 485. \y) Buckle v. Mitchell, 18 Ves. 100. (z) MaxfieUy. 'Burton, L. R. 17 Eq. 15. (a) Basset v. Noaworthy, Rep. t. Pinch, 102 ; WaUwyn v. Lee, 9 Ves. 24. [h) Ind-v. Emmerson, 12 App. Ca. 300. (c) Newton v. Newton, L. R. 4 Ch. App. 143. [d) Cooper v. Veaey, 20 Ch. Div. 611. THE MAXIMS OF EQUITY. 1^ terest is an innooent conveyance, the grant of a person entitled in equity passing only that which he is justly entitled to, and no more, — so that, if the' estate be subject to (e.g.) a prior mortgage, the grantee takes subject to that, talcing only that which is left in the grantor" (e). Fourthly, where the plaintiff has an " equity " merely, — (d) Plaintiff an equity (e.g.) to set aside a deed for fraud, orto correct eqm'tymereiy, it for mistake or accident, — and the defendant has both and not an the legal and the equitable estate,— the Court will not in- estate^defen- terfere: Where, therefore, a man (already married) went dant having through the ceremony of marriage with a woman, and equitiwe' '^"'^ then he and she sold and assigned to the defendant for estate. value her life interest in a certain trust fund of the woman's, — it was held, that, though she might not have executed the instrument if she had been aware of the fraud practised upon her, still such fraud oould not affect the rights of the defendant (the bond fide purchaser (/)). And woto bene, although the "equity" of the plaintiff An equity is, (in such 3. case) to set aside the sale, is (for some pur- po^se^^n^"^' poses) an equitable estate, — and is descendible and de- estate. visable (g), — still such an equitable estate in the plaintiff is not permitted to prevail against the complete legal (and equitable) estate in the defendant. (5) He who seeks equity, must do equity . — The general (5) He who rule of the old common law having been, that when 3, must do'''*''' woman married, all her personal property (not being her equity,— iiius- separate estate) passed (in title) to her husband, including tSs'^axiiL her ehoses in action which he could (during the coverture) reduce into possession, — Therefore, the moment the hus- band was obliged to seek the aid of a Court of Equity towards the realisation of his wife's property, the Court told him, — on the principle of this maxim, — "We will help you to get this property on condition that you make a fair settlement out of it for the benefit of your wif) 60 & 61 Viot. c. 65, a. 2. EXPRESS PRIVATE TRUSTS. 65 charged with the debts of the deceased or with any legacies . Where the sale purports to be in exercise of the power Assignee of of sale contained in a mortgage deed, and the sale purports ^"ef*i/7\(.i A -r." thereto, and intendment (o) o± the Act, — Being such uses as the repair of memorial windows (c), and of monu- ments (d) in churches; the repair of churchyards (e), and of the headstones to the graves therein (/) ; the repair (a) Income Tax Commissioners v. Pemsdl, 1891, App. Ca. 531. (*) 51 & 52 Vict. c. 42, s. 14, sub-s. 2. (c) Att.-Gen. v. Euper, 2 P. Wms. 125. {d) Soare v. Osborne, L. R. 1 Eq. 685. \e) Att.-Gen. v. Lucas, 1905, 1 Ch. 68. (/) McLuughlin v. Att.-Gen., 1906, 2 Ch. 184. f2 68 THE ORIGINALLY EXCLUSIVE JURISDICTION. of church organs, and the maintenance of church-chimes and of worship generally {g) ; the foundation of lecture- ships and professorships (A), but not of prizes for yacht- racing or the like (i) ; the supplying of towns with water, —or, generally, the sanitation or ornamentation of towns (it); the encouragement of good domestics (0, or of poor emigrants (m), and the pensioning off of " old and worn-out clerks" (w); the care and cure of useful quadrupeds (o); and the maintenance of village clubs and of reading-rooms {p), — or of other public institutes {q), — for the furtherance of religious knowledge (r), and the like: Cliarities, — are otjeots of a public character. But objects which (although charitable in a popular sense) are merely for the benefit of individuals (s), — for example, a bequest to ten poor clergymen of the Church of England, to be selected by J.S. (0, — are not chari- table: Also, a bequest to a private institution {e.g., an orphanage), maintained at the expense of an indi- vidual (m), is not a charitable gift, — although a gift to the vicar (or to the vicar and churchwardens) for the time being is {e-x necessitate rei) a charity (ck); and a bequest to "General William Booth" (of the Salvation Army), "for the spread of the gospel," is charitable (y), — as is also a trust to purchase land and build houses thereon, and thereafter to let the houses {at easy rents) to the poorer classes in populous districts (z); and a trust {g) Farquhar v. Bowling, 1896, 1 Ch. 50. (A) Tales v. University 'College, L. R. 7 H. L. 438. (i) Jones V. Palmer, 1895, 2 Ch. 649. (k) Faversham (Mat/or) v Sijder, .5 De G. M. & G. 350. (l^ Loicombev. Wwtringhmn, 13 Beav. 87. (m) Barclay v. Maxkelyne, i Jur. N. S. 1294. («) Gosling v. Smith, 1900, W. N. 15. (0) London Univerdty v. Yarrow, 23 Beav. 159. {p) In re Scowcroft, Ormrodv. WilJcinson, 1898, 2 Ch. 638. [g] In re Mann, Hardy \. Alt-Gen., 1903, 1 Cb. 232. {r) AU.-Gen v. Stepney, 10 Ves. 22. (s) Cooper-Bean v. Stevens, 41 Ch. D, 552. (1) Tease v. Fattinson, 32 Ch. Div. 154. (u) Slevin v. Eephurn, 1891, 2 Ch. 236. {x) Gordon T. Craigie. 1907, 1 Ch. 382. \y) Lea \. -Cooke, 34 Ch. Div. 628. \i) Lewis v. Sutton, 1901, 2 Ch. 640. CHARITIES. 69 also for indigent male persons occupied in scientific pur- suits (a) . The Court in general settles a "scheme" for the ad- Charitable ministration of charitable bequests, — on a reference to when and chambers (b), and the Court may also afterwards (and ^^"j''"* from time to time) amend (c), or vary (d), the scheme so settled; but a scheme will not be directed, when the legatee is evidently intended by the testator to have an absolute discretion in his application of the fund (e). The Charity Commissioners may also settle schemes (/), — and may (with the aid of the Court) summarily enforce the provisions of these schemes (gr), — and also from time to time, vary their schemes {h) . But a charity which is supported entirely (^), or in part (fc), by voluntary contributions is not liable to be controlled by the Com- missioners, — Scil., to the extent of such voluntary sup- port; and sometimes the jurisdiction of the Commis- sioners has been wholly divested out of them, and vested in (e.g.) the Board of Education (?). Although it is the Attorney-General who (most pro- Litigation perly) enforces charitable trusts, — they being a matter of concerning the public concern, — still any private individual may do so, _cer^S,te^' provided he first obtain the certificate of the Commis- of Commis- sioners to do it (m) : Which certificate may be obtained *^™™^ °- even pending the action («); But the certificate is only required, where the administration of the charity estates is materially involved in the action, — the object of the certificate being to protect the estates of the charity. (a) Wolr V. limm, 1908, A. C. 162. (A) Be Hyde Park Place Charity, 1911, 1 Ch. 67S. (c) Att.-Gtn. V. Worcester (Bp.), 9 Ha. 328. (d) In re Baton's Charity, 1908, 1 Oh. 205. (e) Walsh V. Gladstone, 1 Phil. 200. {/) The Weir Hospital, 1910, W. N. 82. Ig) John Street Chapel ease. 1893, 2 Ch. 618. (A) Re Mason Orphanage, 1896, 1 Ch. 54, 596. (») Me Clergy Orphan Corporation, 1894, 3 Ch. 145. {k) Ee Stockport Schools, 1898, 2 Ch. 687. (l) Berkhamsted Grammar Hchool erne, 1908, 2 Ch. 25. {)«) Roohc v. Dawson, 1895, 1 Ch. 480. (n) Bendall v. Blab; 45 Ch. D. 139. 70 THE ORIGINALLY EXCLUSIVE JURISDICTION. I. Eespects in which charities are favoured, — (1) General intention effectuated,— Provided the intention is charitaWe. Discretion, — in executors, as to choice of objects. (I) Charities are favoured above individuals in thef respects following: — (1) Firstly, — ^If the testator has expressed a general intention of charity, but has left uncertain the particular mode in vsrhich the intention is to be carried into effect, — or if the particular intention (as being, e.g.,ior a super- stitious use) is illegal (o), — the Court will uphold the in- tention of charity, — Because if any bequest be for a charity, and the purpose of charity be paramount, — it matters not that the objects are either uncertain or illegal. But, in all cases, the object must be distinctly charitable: For, if the bequest may be disposed of for any general pur- p:ose, whether charitable or otherwise — or for charitable or other general purposes at discretion, — the bequest will be void, as being not exclusively charitable (p). But if only the purpose be exclusively charitable, it will not render the gift void, merely to show, that there is (in fact) no such institute as that named in the will (q) . Also, objects which are described as " charitable and deserv- ing "(r), or as "charitable and benevolent " (s), will occasionally be construed simply as charitable objects, the added words being treated as merely restrictive (r), or being read ejusdem generis ( t) . But a gift expressed to be "for some one or more purposes, charitable or philan- thropic" (m), or "for charitable, religious, or other societies " (x), would not be so construed, — but would be void as not being exclusively charitable. A testator sometimes leaves it to the discretion of his executors, to choose among his charitable objects; and he may do that well enough (y), if only he shows a para-r mount intention of charity (0) ; but in the absence of suoh paramount intention, the gift will (in such a case) be void for uncertainty (a). Also, where some of the objects (0) Cnry v. AUot, 7 Ves. 490. (p) Moricc V. Bishop of Durham, 10 Ves. 622. (}) jSannen v. Eillyer, 1902, 1 Ch. 876. (r) Obert v. Barrow, 35 Ch. Div. 4 72. (s) Jarvis v. Birmingham Corporation, 1904, 2 Ch. 354. (i) JSargrmves v. Taylor, 1905, 2 Ch. 400. (!() Ill re Sidney, 1908, 1 Ch. 126, 488. (x) In re Davidson, 190.1, 1 Ch. 567. (S^) Crawford -a. Forshau; 1891, 2 Ch. 261. (z) Gordon \. Craigie, 1907, 1 Ch. 382. (o) Grimmdy Grimond, 1905, A. C. 104. CHARITIES. Tl are charitable, and the others are not so, yet if the executors have a discretion as to apportioning the bequest among the objects, the bequest will be good as a chari- table bequest (&). And here note, that a friendly society (being for the relief of poverty) will be (c), and other- wise it will not be {d), a charity; and a voluntary associa- tion {e.g., a sisterhood) may be (or may not be) a charity, — or may be a charity in part only (e); but an advowson is not a charity, nor is its purchase a charitable object (/), — at least, in the general case {g). Also, the Livery Com- panies of London are not charities {h) . (la) Where the literal execution of a charitable trust (la) Doctiin^ either originally is or afterwards becomes inexpedient or °* Q'-i'"*- impracticable (that is to say, impossible {i)), the Court will execute the trust cy-pres, — that is to say, as nearly as it can to the original purpose, — the failure of the particular mode in which the charity is to be effectuated not destroying the charity (;') . Also, if a legacy be given to a charity, and the charity survives the testator, but afterwards (and before receiving the legacy) ceases to exist, the legacy will be applied cy-pres (k) . But if the charity has ceased (l), — that is to say, has wholly ceased (to), — to exist before the testator's death, or becomes impossible either before or after the death, the bequest will fail(w). The doctrine of cy-pres being applicable, only where Limit to tite- the testator has manifested a paxamount intention of ?^"£"* charity, — If he has had but one particular object in his mind, — as, for example to build a church at W., — and that object cannot be answered, the doctrine will not be (*) Salushiry v. Benton, 3 K. & J. 529. (c) Bruty v. Uachaij, 1896, 2 Ch. 727. (rf) Braithwaite v. Att.-Gen., 1909, 1 Ch. 510. («) Cocks V. Manners, L. R. 12 Eq. 574. (/) Sunter v. Att.-Gen., 1899, A. C. 309. (V) Lawrie v. Jtt.-Oen., 1904, 2 Ch. 643. [h) In re Meeeh, Butchers' Co., 1910, 1 Ch. 426. (i) The Weir Hospital, 1910, 2 Ch. 124. [j) Moggridge v. Thackwell, 7 Ves. 69 ; Att.-Gen. t. The Ironmmgers^ Co., 2 Beav. 313. [k] Slevin v. Sepiurn, 1891, 2 Ch. 236. (l) Broadient v. Barrow, 29 Ch. D. S60 ; and distingoish Moore v. Sonierset, 1909, 2 Ch. 410. Im) EaywardY. Att.-Gen., 1907, 1 Ch. 166. («) Fowler y. Att.-Gen., 1909, W. N. 59. 72 THE ORIGINALLY EXCLUSIVE JURISDICTION. ^2) Defects in •conveyances supplied. applied (o); and if {e.g.) the bequest is upon trust to pay the income to the incumbent of the church of H. for the time being, so long as he permits the sittings to be occupied rent-free, there is no paramount intention of charity (p) . (2) Secondly, — In further aid of charities, the Court will supply all defects in conveyances (not being defects which are declared fatal by statute {q)), — although, in the case of private individuals, the imperfection in the con- veyance (being in favour of a volunteer) would prevent the trust from arising. (3) Eesulting (3) Thirdly, — Charities are favoured, in respect of re- to^charitieB^*^ suiting trusts, the following rules being applicable in such a case, that is to say: — (a) Where a person makes a valid gift (whether by deed or by will), and expresses a general intention of V , charity, but either particularises no objects (r), or such as do not exhaust the proceeds (.s), the Court will not suffer the property in the first case, or the surplus in the second, to result to the settlor (or to his representatives), but will take upon itself to execute the general intention: And (b) Where a person settles land for purposes which at the time exhaust the whole proceeds, but an excess of income subsequently arises, the Court will order the excess to be applied in the same or the like manner with the original amount (t). But (c) If the settlor do not give the land {Soil., the whole rent of the land) to the charity, but (noticing the land to be of a certain value) appropriates part only to the charity, — the surplus will result to the settlor (or to his heir-at-law or residuary devisee (u)); and such surplus will not be avail- («) Jiroadbent v. Barrow, 29 Ch. Div. 560. [p) In re Randell, Sandell v. Dixon, 38 Ch. Div. 213. (}) Sai/er v. Sat/er, 7 Hare, 377 ; Innes v. Sai/er, 3 Mac. & Gr. 660. (»•) Att.-Gen. v. Hcrriek, Amb. 712. (s) Att.-Gen. v. Tunna, 2 Ves. Jr. 1. (4 Beverley v. Att.-Gen., 6 H. L. Ca. 310. (m) Att.-Gen. v. Trin. Coll. Cainb., 24 Beav. 383. CHAEITIES. 73 able thereafter for the charity, even although the part appropriated should become insuffi- cient for the charitable purpose {x) . (4) Fourthly, — Gifts to charities are not within (nor (4) charities subject to) the Rule of Law against Perpetuities (?/), — from^rfeof That is to say, where there is a valid immediate giit to Perpetuities, one charity, a gift over to another charity is not subject to the rule (2) . Nevertheless, an immediate gift, which is timed not to take effect until the happening of a con-- tingency which is obnoxious to the rule of perpetuities, would be void, in the case of a charity equally as in the case of an individual (a) ; and a gift over to a charity following after a gift to an individual would also be void, if it was so limited as possibly not to take effect until the happening of some event which might not happen within the limits of the rule (6): Also, generally, if the gift is upon trust for the repair of some monument in a church (c), or is otherwise charitable, it is not subject to the rule; but if the gift is for a purpose not chari- table () .Rider y. Eidder, 10 Vea. 360. c)- Jttlnes V. Holmes, 4 De G. F. & J. 470. IMPLIED AND RESULTING TRUSTS. 81 hy CD. for A.B.'s benefit, — and was therefore recouped to C.D.'s estate (d). If a lawfully married woman should purchase in the Mother is name of her lawful child (e) — whom, of course, she is fifher^*""" not bound to maintain or to provide for (/), — or should liability being purchase in the name of her lawful husband (g), — That *". to the personal estate, — In every case, the title taken, is taken subject to the debts of the deceased being first paid out of tlie property taken, and to all the " testa- mentary expenses " (including the estate duty) being also first paid thereout. (3) Executors as Trustees of Residue. — Where a (3) Bseoyitors testator made no express disposition of the residue of his posed of resi- personal estate, the executors used to be entitled to it, — iw^f ly subject only to the debts being paid. But an intention c. 40,— now to exclude the executors might appear on the will; and repStnta- such intention would be inferred where an express legacy tives of was g^ven to them, — or (in the case of two or more execu- ^''^^^^ • tors) if equal legacies were expressly given to both or all of them {a). And the statute 1 Will. IV. c. 40 has now enacted, that (as to wills made after the 1st Septem- ber, 1830) the executors shall be deemed to be trustees for the persons (if any) who would be entitled (under the Statutes of Distribution) in respect of any residue not effectually disposed of by the will, — Unless it shall appear by the will itself, that the executors are intended to take such residue beneficially, — The effect of the statute being, to put upon the executors the onus of proving, that the testator intended them to take beneficially {as against, or in exclusion of, the next of Mn{b)). But if, in such a case, it should happen that there are no next of kin, the 1 Will. IV. c. 40, will be inapplicable, — So that (in such a case) the executor will (as against the crown) continue to be beneficially entitled to the unex- hausted residue (c) . (4) Resulting Trusts under the Doctrine of Conve)'- (*) Besuiting sion. — These are considered in Chapter IX., infra. thedoctiine of conversion. (x) Camp V. Coe, 31 Ch. Div. 460. {i/) Bowles V. Si/att, 38 Ch. J). 609. (z) Megit v. Johnson, 2 Doug. 542. (a) Att.-Gen. v. Jeferys, 1908, A. C. 411. (b) Morrison v. Barrison, 2 H. & M. 237. (c) In re Lacy, 1899, 2 Ch. 149. 86 THE' ORIGINALLY EXCLUSIVE JURISDICTION. (S) Implied trusts arising out of joint tenEmcies. Slight circum- Btances defeat surviTorship in equity. (5) Resulting Trusts in the Case of Joint Tenancies. — Where two or inore persons purchase lands, and advance the money in equal shares, and the conveyance is taken to them and their heirs, they will be joint tenants both at law and in equity ; and (upon the death of one of them) the estate will go to the survivor, — Soil., unless there has been a severance of the jointure in the meantime (cZ) . But equity, it will be remembered, always leans strongly against joint tenancy (with its one-sided incident of sur- vivorship): Therefore, firstly, where two or more per- sons purchase lands and advance the purchase-moneys in unequal proportions, and this appears on the deed itself, the survivor will be deemed in equity a trustee for the other, in proportion to the sum advanced by him (e) . And, secondly, where money is advanced by way of loan, either in eqUrUl or unequal shares, there will in equity be no survivorship, — ^although the mortgage should be joint (/); and if the mortgagees should afterwards pur- chase the equity of redemption, they will hold it as tenants in common, even although it should have been conveyed to them jointly (g). And the same rule is applicable, generally, to joint purchases by partners in trade, — this being in further- ance of the common law maxim. Jus accrescendi inter mercatores pro beneficio commercii locum non habet : But lands which have been devised in joint tenancy to part- ners will continue to belong to the partners in joint tenancy, both at law and in equity (h), — Soil., unless where an intention to the contrary can be inferred from their subsequent mod© of dealing with the land, — as if, in their yearly aooounts, they have consistently treated the devised land as as.sets of the partnership (i) . And similarly, there will be no survivorship in the case of partners who are joint patentees (Jc). [d) Palmer v. Mich, 1897, 1 Oh. 134. (e) Lake v. Craddoch, 3 P. Wms. 157. (/) MorUy v. Bird, 3 Ves. 631. Q) Aveling v. Knipe, 19 Ves. 440. (A) Balmain t. Shore, 9 Ves. 500. (t) Waterer v. Waterer, L. E. 15 Eq. 402. (k) 7 Edw. VII. o. 28, s. 1 ; and c. 29, ». 37. 87 CHAPTER V. CONSTEUCTIVE TETJSTS. A CONSTEUCTIVE trust is a trust raised by construction of equity, without reference to (and irrespectively of) any intention of the parties; and there are the five fol- lowing principal varieties of it, viz.: — (1) The Vendor's Lien on Land. — This lien is for the (i) Lien on amount of the unpaid purchase-money of the land sold; ,*".J° '~ and although that purchase-money should purport, upan lieuforun" the face of the purchase-deed and even by the receipt paid puxchase- indorsed thereon, to have been paid, yet if the money (or part of it) has not been paid in fact, a lien shall prevail for the money which remains unpaid (a) : Which lien, although it is a charge in equity only, is (for all purposes) real estate (&), and may be enforced and realised accord- ingly. The lien may, of course, be waived; but a mere per- Waiver or sonal security for the unpaid purchase-money (e.g., a ofifen°— what bond (c), or a bill of exchange or a promissory note (d), ]«, and what or a mere ledger-entry of payment (e)), — or the granting of an annuity secured by bond or covenant (/), — will not, of itself, be sufficient to discharge the lien. But if the circumstances show an intention, to look merely to the personal credit of the purchaser, — as if it appears, that the note, bond, entry, covenant, or annuity was substi- tuted for the consideration-money (g), — or was, in fact, 13 not. (a) Machreth v. Symmons, 15 Vea. 328. (b) Maddison v. Chapman, 1 J. & H. 470. (c) CiM'Hsv. Coriins, 31 Beav. 346. (d) Hughen v. Kearney, 1 Seh. & Lefr. 135. («) Wrout T. Dawes, 25 Beav. 369. ■/) Clarhe v. Royle, 3 Sim. 499. ') Fawell V. Seelis, 2 Diok. 485. 88 THE ORIGINALLY EXCLUSIVE JURISDICTION. the consideration bargained for, — The lien will be gone; and the vendor's remedy will (in that case) be on the note, bond, entry, or covenant only {h), and wiU not be by suit in equity to enforce or to realise his lien {%) . But where the purchase-money assumee the form of an an- nuity, the presumption rather is against the lien con- tinuing Qi) ; and the lien will not continue where, for example, the intention was, that the vendor should receive payment out of the sale-prooeeds to be received by the purchaser (on his re-sale of the property), or out of moneys to be raised by the purchaser on his mortgage of the property, — the intention of maJcing such a re-sale or such a mortgage being incompatible with the continued existence of the lien (Z). Against whom The vendor's lien binds the estate in the hands of the is not loliowing individuals, namely: — (1) The purchaser himself, and his heirs, and all per- sons taking under him or them as volunteers; (2) Subsequent purchasers for valuable consideration, who buy ivith notice of the purchase-money re- maining unpaid (m) ; and (3) The assignee {i.e., trustee) in bankruptcy of the purchaser, — ^for such assignee or trustee takes subject to all the equities affecting the bank- rupt (?2); Also, (4) Where the first purchaser has sold the estate to a bond fide second purchaser without notice, if and so long as the second purchase-money (or part thereof) has not yet been paid, the original vendor may proceed either against the estate for his lien, or against the second unpaid purchase- money, — For (in such a case) the second pur- chaser, not having yet paid his full purchase- money, becomes, on getting notice of the lien before he pays it, a purchaser ivith notice (to (A) B>/cMandv. Foc/cncU, 13 Sim. 406. (i) Mves V. Nives, 15 Ch. DiT. 649. {It) Dixon V. Gat/fere, 1 De G-. & J. 656. (I) In re BrenUoooA Brick Co., 4 Ch. D. 662. Im) Morris v. Chamben, 29 Beav. 246. \n) Ex parte Oolding, In re Knight, 13 Ch. Div. 628. CONSTKUCTIVE TRUSTS. 89 the extent that his purchase-money is unpaid), — and so becomes (in effect) a trustee for the original vendor, for the purpose of securing pay- ment to him of the unpaid portion of the original purchase-money (o). And the law is the same where a bond has been given for the unpaid balance of the purchase-money (p): Also, (5) If the legal estate be outstanding, the second pur- chaser for value (whether with or without notice) has only an equitable interest, — and will there- fore, in general, be postponed to the equitable lien, — For, " Qui prior est tempore potior est jure." The lien will, of course, not prevail against a bond fide second purchaser for valuable consideration without notice, who obtains the legal estate, — Scil., because "Where the equities are pqual, the law shall prevail." A vendor may also find his lien postponed through his own negligence; for in Rice v. Rice, as was mentioned on p. 10, supra, the defendants (the equitable mortgagees), although having only an equity, were held entitled (although posterior in date) to payment out of the estate in priority to the vendor, — on the ground of the negligenoe of that vendor. Moreover, a vendor's lien will, occa- sionally, be discharged and extinguished, by the Statutes of Limitation (q). And it has now been provided, gene- Conveyancing rally, by the Conveyancing Act, 1881 (r), s. 55, that (so ^"^^1^7,, far as regards a purchaser who subsequently buys an estate as to vendor's that remains subjeet to the lien of a previous vendor for ^'®"' his unpaid purchase-money) the acknowledgment in the body of the deed of the purchase-money having been paid, or the receipt for it on the back of the deed, — the acknow- ledgment or receipt being duly executed, and being in or on a deed executed after the 31st December, 1881, — shall protect him (being a bond fide purchaser) against suoh lien; .and the term "purchaser" includes (for this purpose) a subsequent mortgagee, — and also his sub- mortgagee. (o) Fawell v. KeiUs, Amb. 724. \p) Tounille v. Naish, 8 P. Wms. 306. {q) Toft V. Stephenson, 5 De G. M. & G. 735. (»•) 44 & 4.5 Viot. c. 41. 90 THE ORIGINALLY EXCLUSIVE JURISDICTION. (b) Vendee's lien for pur- chase-money, — paid in whole or in part. Begistration of vendor's lieu, — none in Middlesex ; Sees, — in Yorkshire. (lb) The Vendee's Lien on Land. — Somewhat analogous to the lien of the vendor for his unpaid purchase-money, is the lien of the vendee upon the estate in the hands of the vendor for any instalment of his purohase-money already actually paid (s), — Scil., where the purchase (through no fault of the purchaser) goes off: And this lien of the purchaser will exist, not only as against the vendor, but also as against a subsequent mortgagee with notice (t), — and in fact, generally, against all the like persons above enumerated, against whom the vendor's lien would prevail; and it extends also to include interest on the instalment or deposit paid, and all the costs and ex- penses (thrown away) of the purchaser. But the pur- chaser's lien will not, of course, prevail against a prior mortgagee (whether legal or equitable). Also, note, that the lien of the unpaid vendor (or, semble, of the paying purchaser) holds good also upon a sale (or purchase) of chattels (m), — at least, of specific chattels (such as a ship in the course of building), — Scil., where the contract is specifically enforceable (x); and it holds good also as to leaseholds (y) ; and as to the profits from patent-rights (z), and the like. As regards lands in a Register County, — No provision exists for the registry of a vendor's lien on lands in Middlesex; and therefore the lien on lands in Middlesex, although it is unregistered, holds good (a). But as re- gards lands in Yorkshire (not being, of course, lands of copyhold tenure), it has now been provided, by the York- shire Registries Act, 1884 (h), s. 7, as regards any lien arising on or after 1st January, 1885, that a memorandum of such lien not only may, but must, be registered, — for that no such lien shall (unless and until a memo- randum of it is registered) have any priority as against any purchase deed (or mortgage deed) duly registered; but the Act makes, of course, an exception in the case of (s) Turner T. Marriott, L. R. 3 Eq. 744. (t) WaUon V. Hose, 10 H. L. Ca. 672 ; Whitbread v. Watt, 1902, 1 Ch. 835. (m) Collins V. Collins, 31 Beav. 346. {x) Stucley v. Kektwieh, 1906, 1 Ch. 67. {y) Dmies v. Thomas, 1900, 2 Ch. 462. (z) Bmisk V. Snell, 1908, 2 Ch. 127. (a) EeitlemllT!. Watson, 26 Ch. D. 501. \b) 47 & 48 Vict. c. 54, amended by- 48 & 49 Vict. oc. 4, 26. CONSTEUCTIVE TRUSTS. 91 fraud, — Scil., fraud actual (c), and not merely con- structive {d) . (2) Renewal of Lease by Fiduciary Lessee. — Upon the ^j^g^™^""^ renewal of a lease by a trustee or executor, although in trustee in hiii his own name and professedly for his own benefit, — and own name; even upon the refusal of the lessor to grant a new lease to the cestui que trustee), — the renewed lease shall be held upon trust for the peTSons entitled to the old lease (/), — and that, whether the lease is a renewable lease or is not a renewable lease (gf). And this rule is applicable or by tenant also (but as regards renewable leases only, and not also °^ ^' ordinary leases (h)) to persons having limited interests in the lease: Therefore, a tenant for life, who renews the lease in his own name, will (subject to his own life interest therein) be a trustee of the renewed lease for those entitled in remainder (i) ; and the rule is applic- able (but as regards renewable, leases only, and not also ordinary leases (it)), if the tenant for life purchases the fee simple reversion on the lease (Z), — ^or purchases adjoin- ing land under a right of pre-emption annexed to the original settled land (m), — For it is but fair, that a tenant for life, who gets some special benefit through the advantage of his own possession, should share that benefit with the remaindermen. Also, if a partner renews a lease of the partnership or by a premises on his own account, he will, in general, be a P*^"®"^- trustee of it for the firm (w): And the like rule applies to a mortgagor (o), and to a mortgagee (p), renewing a lease of the mortgaged premises: And the rule applies, generally, to all persons occupying fiduciary or quasi- (c) Battison v. jffobson, 1896, 2 Ch. 403. (d) Native Lands ease, 1905, A. C. 176. (e) Keieh v. Sandford, Cha. Ca. 61. (/) Filgrem v. Pilgrem, 18 Ch. Div. 93. [g) Randall v. Emsell, 3 Mer. 190. (h) Beian v. Webb, 190.5, 1 Ch. 620. (i) In re Lord Sanelagh's mil, 26 Ch. Div. 590. (i) Bevan v. Webb, aupra. (l) rhillips T. Fhillips, 29 Ch. Div. 673. [m) Eoaley v. Ginnever, 1897, 2 Ch 503. (n) Clegg v. Fishwie/e, 1 Mac. & G. 394. (o) Leijfh V. Burnett, 29 Ch. Div. 231. Ip) Holt V. Holt, 1 Ch. Ca. 190. 92 THE ORIGINALLY EXCLUSIVE JURISDICTION. Settled Land Act, 1882,— tenant for life under. fiduciary relations (g). Also, by the Settled Land Act, 1882 (r), s. 53, a tenant for life, in exercising any power under the Act, is to have regard to the interests of all parties entitled under the settlement, — and is to be deemed in the position of a trustee for those parties: And, accord- ingly, he is (as regards, e.g., the exercise of his dis- cretionary powers) restrainable by the Court, exactly as a trustee would be (s) ; and he may not sell at an under- value, — being a conscious undervalue (t); and, in the exer- cise of his statutory powers, he may not lease or sell to hirnself (u), — ^although, in the exercise of an express power of leasing (or of selling), he might (possibly) have leased (or sold) to himself (x) . Co-tenants, — case of. But, nota bene, one of a group of next of kin, whose intestate was entitled to a lease (even, semble, a renewable lease), may keep for his own benefit any new lease which he may obtain of the demised premises (y); and one of several joint tenants is (apparently) no longer to be deemed in a fiduciary relation towards his co-tenants (z), — although the contrary used always to be supposed (a), — Soil., as regards only renewable leases. (3) Allowance for payments, where same are necessary and perma- nently bene- ficial. (3) Allowance for Permanent Improvements. — Where a person is only part owner of an estate (or where he erroneously supposes himself to be the fee simple owner of it), and he (in entire good faith) permanently benefits the estate by repairs or improvements, — The rule is (1) Firstly, that as against the true owner who is ignorant of (and does not encourage him in) the expenditure, he has no title to be repaid the amount expended (&); But (2) Secondly, that if it become necessary for the true owner to proceed in equity, he. will only be entitled to relief in equity upon the terms of his doing equity, — i.e., {q) Cooper v. Phibbs, L. R. 2 H. L. 149. ()■) 45 & 46 Vict. 0. 38. (s) Bulteel-v. Law(Jeshayne, 1906, 2 Ch. 11. (t) ffurrell v. Littlejohk, 1904, 1 Ch. 609. [uY Miidlemas v. Stevens, 1901, 1 Ch. 574. \x) Sevan V. Eahgood, 1 J. & H. 222. \y) Siss V. Biss, 1903, 2 Ch. 40. (z) Bins V. BisSy supra. {a) Palmer v. Young, 1 Vern. 276. (*) NiohoUon v. Mooper, 4 My. & Cr. 186. CONSTRUCTIVE TRUSTS. 93- by making compensation for the expenditure, — Scil., so far as (and only so far as) the expenditure was necessary, and has proved permanently Tbeneficial (c) . A person who lays out money on the property of another with full knowledge of the state of the title (d), — or who lays out money unnecessarily or improperly, or otherwise mala fide (e), — will, of course, have no such equity; but where a tenant for life under a will has gone on to finish improvements improvements begun by the testator, equity says, that by tenant for (in respect of his expenditure) he is entitled to a ' charge (/), or lien (g), — and directs an inquiry, for the purpose of ascertaining whether the outlay has been for the benefit of the inheritance (h), — Scil., the permanent benefit of the estate, aa .distinguished from outlays on ordinary "repairs" (i). By reason of the Improvement of Land Act, 1864 (k), Under and other subsequent Acts in pari materia (such as, e.g., Jf'^and Ac"* the Agricultural Holdings Act, 1908 (I)), a tenant for 1864; life, instead of expending his own money in improve- ments, now expends money borrowed from some Land Loan Society for the -purpose; and the Acts make the repayment of the moneys a charge upon the lands im- proved, repayable by yearly instalments by the successive tenants for the time being, — the instalments (which used to extend, in general, over twenty-five years only) now extending over any period (not exceeding forty years) which the Board of Agriculture and Fisheries may sanction (to). Also, by the Settled Land Act, 1882 (w), or under s. 21, capital money arising under the Act may (subject ^^j. igg2_ as therein expressed) be applied in payment of any improvement authorised by the Act; and the classes of improvements thereby authorised are those specified iu s. 25 of the Act. But where such an application of the (c) In re CooVh Mortgage, 1896, 1 Oh. 923. [A) Ramsden v. Sysoyi, L. E. 1 H. L. 129. (e) Pole T. Pole, 2 De G-. & Sm. 420. (/) Dent V. Dent, 30 Beav. 363.' (y) In re Montagu, 1897, 2 Ch. 8. (A) In re Leigh's Estate, L. R. 6 Ch. App. 887. (i) In re Willis, 1902, 1 Ch. 15. (A) 27 & 28 Vict. u. 114, amended by 62 & 63 Vict. e. 46. (?) 8 Edw. VII. e. 28. (m) 62 & 63 Viet. u. 46. (») 45 & 46 Vict. u. 38. 9*4 THE OBIGINALLY EXCLUSIVE JURISDICTION. money is intended to be mad© by a tenant for life, he ought, in general, to first submit a scheme for the execu- tion of the improvements to the trustees of the settlement, or else to the Court (o); but while he acts with bona fides, he has a large discretion (p) . Trustee has a lien on trust fund for expenses of renewal. Salvage pay- ments gene- rally, — lien for. charges,— receivers. of A trustee or executor (or other fiduciary person), who renews a lease, has a lien upon the estate for the costs and expenses of the renewal with interest; and he may either pay himself such costs and expenses out of any free moneys in his hands, or he may raise the same by a mortgage of the trust estate {q), — the lien being confined, of course, to the trust estate {r) . Also, generally, where payments have been made, in the nature of salvage, in order to prevent {&■§■) the lapse of a policy of life assur- ance, the person making such payments (not being a mere volunteer) is entitled to a lien on {e.g.) the proceeds of the policy for the amount of his payments (s), — but not so as to have priority (like in the case of a true salvage lien) over a mortgagee of the policy {t) . Also, a charge given by the receiver in a debenture holder's action, — Scil., for the maintenance of the debenture security, — is in the nature of a salvage charge, and is valid, — and (subject to the costs lawfully payable in priority) it takes precedence of the debentures (m) \ and any one who (as an officer of the Court) receives moneys which have been, in fact, earned through the exertions of another, must repay that other what in conscience is right {x) . (4) Heir of mortgagee, trustee for personal repre- sentatives, — still so, as to copyholds. (4) Heir a Trustee for Next of Kin. — When a mort- gagee in fee, who has not foreclosed, dies intestate, the legal estate in the mortgaged premises used to descend to his heir, but as a trustee only for the personal repre- sentatives of the deceased mortgagee, — for the purpose of securing the due payment otthe mortgage moneys to (o) Norfolk V. Herries, 1900, 1 Ch. 461. \p) Lefroy v. JEgmont, 1906, 2 Ch. 151. (q) Trustee Act, 1803 (56 & 57 Vict. c. 53), s. 19. (j) In re Winchdsea' s Policy Moneys, 39 Oh. D. 168. (s) Leslie v. French, 23 Ch. Div. 552; Jennings v. Mather, 1902, K. B. 1. (t) Falclce v. Scottish Imverial Insurance, 34 Ch. Div. 234. («) Smth V. Lubhock, 1901, 2 Ch 357. [x) In re Tyler, Ex parte 0. M., 1907, 1 K. B. 865. CONSTRUCTIVE TRUSTS. 9S these latter, to be paid over by them to the next of kin (or other the persons entitled to the personal estate) of the deceased mortgagee {y) . And that was so, even where the deceased intestate was in possession as mortgagee {z), — and even in adverse possession {a), — 8cil., where the possession of the deceased had not already (at the date of his death) fully matured into the absolute and irre- deemable fee simple estate (&), — although, of course, if the possession of the deceased should have then already so matured, his heir would be and remain entitled bene- ficially himself (c) . And now. Firstly, under the Conveyancing Act, 1881 {d), s. 4, the executor or administrator of the deceased may himself reconvey the legal estate on pay- ment of the mortgage money; and, by s. 30, that legal estate now descends (under that Act) into him, whether the deceased die testate or intestate, — but the old law still holds good as to the legal estate in mortgaged copy- holds (e). And, Secondly, under the Land Transfer Act, 1897 (/), all real estate (other than the legal estate in (4a) Legal re- copyhold hereditaments {g)) now vests (upon the death, \ll^l^^^l^ whether testate or intestate, of the beneficial fee simple December, owner) in the legal personal representatives of such owner, ^^l~'f'^ exactly as if it were a chattel real (s. 1), — Soil., as beneficial trustees for the persons who by law are beneficially en- devisees, titled thereto (s. 2). And, exactly like executors may do as regards bequests of leaseholds, so these representa- tives may assent to any devise of the real estate (s. 3); or the devisee himself may enforce a conveyance thereof to him from them (ss. 2, 3) Qi). But, nota bene, all the executors (as well the proving executors as also the exe- cutors who have not yet proved) are the persons in whom the real estate so vests {i). Also, it is the general execu- te) Thornbrmgh v. Baker, 1 Ch. Ca. 283, 1046. (z) ^''ol/ V. Elks. 2 Ch. Ca. 2-'0. (a) Iirayton v. Loveridge, 1902, 2 Ch. 859. (i) Clarkson t. Bowyer, 2 Vern. 61. (c) Pearce v. Mirsh, 1904, 1 Ch. 518. {d) 44 & 45 Vict. c. 41, a. 30. (e) Copyhold Act, 1894 (57 & 58 Vict. o. 46), o. 88. (/) 60 & 61 Vict. 65. (?) In re Stmerville and Turner, 1903, 2 Ch. 583. (A) In re Gary and Lott, 19(11, 2 Ch. 463. (i) In re JPawley and L. ^ P. Bank, 1900, 1 Ch. 58. THE ORIGINALLY EXCLUSIVE JURISDICTION. (5) Surplus sale proceeds, — on a sale by mortgagee Equity's manner of oonstructitir/ trusts, ex- plained. tors (as distinguished from the special executors, if any) who are to give the assent or to execute the con- veyance (/c) . And here note, that by legal estate in copyholds it is intended to denote that the deceased (testate or intestate) was the "tencmt" on the Court rolls at the date of his death; and if he was not then the admitted tenant, — but was merely an unadmitted surrenderee or devisee himself, or had the equitable estate only (or the incomplete legal estate only) in the copyholds, — ^then the Conveyancing Act, 1881, s. 30, equally with the Land Transfer Act, 1897, s. 1, would be fuUy applicable; and the copyholds of the mortgagee (or trustee) would in that case descend into the legal personal representatives of the deceased (I), semble : (5) Solicitor of Selling Mortgagee, receiving the Sur- plus Sale Proceeds. — If a mortgagee, in the due exercise of his power of sale, sells the mortgaged hereditaments, and there is a "surplus" of the sale-proceeds, he becomes a trustee (although a constructive trustee only) of that surplus : and if the solicitor (who is acting for the selling mortgagee) receives (and retains) any part of the surplus sale-proceeds, he (the solicitor) thereby becomes also chargeable as a constructive trustee of the surplus sale- moneys so received and retained by him, — So that ,the legal personal representative of the mortgagor (in oaee of the mortgagor's death) would be entitled to recover these surplus sale-moneys from the solicitor, — or from his estate, if he should be since dead (m) . The constructive trusts above exemplified are con- structed by a Court of Equity on the foundation of the legal estate, equity building up, — that is, constructing, — on that foundation, and in the due exercise of its judi- cial discretion (w), the trust for which it perceives an equity. (k) Cohen's Executors' case, 1902, 1 Oh. 187. [l) In re Somervillit and Tnrner, supra. (m) Lake v. Bell, 34 Ch. D. 462. («) Cowper V. Cowper, 2 P. Wma. 720, on pp. 753, 764. 97 CHAPTER VI. TRUSTEES AND OTHERS STANDING IN A FIDUCIARY RELATION. A TRUSTEE should be a person capable not only of taking "^^o may fce but also of holding the. legal estate, and should be of -who should, or good natural capacity also. Therefore: — Aoidd not, be Trustees. Firstly, an infant is unsuitable as a trustee, — either of lands or of goods (a) . Secondly, A corporation (which, by the way, cannot be "seised to a use at all" (6)), is unsuitable as a trustee of lands (c), — although suitable enough as a trustee of goods. A corporation may also, now, be a co-trustee of goods (d), — and where it can hold land without any licence in mort- main, even of lands (e). And, nota bene, the public- trustee, constituted under the provisions of the statute 6 Edw. VII. c. 55, is a corporation. Thirdly, A married woman used to be unsuitable as a trustee (/), — Scil., because of the legal unity of husband and wife (g) ; but an unmarried female, whether widow or spinster, was free from objection, — assuming always that she was a woman of practical common sense; and simi- larly, now, even a married woman, semble (h) . And, Fourthly, Any alien, although being and remain- ing an alien, is now as capable as a native-born subject, even as regards real estate (i), — differently from what used (a) Hearle t. Greenlanh, 3 Atk. 712. (*) ChalUs, K. P., 2nd ed., pp. 354, 355. (c) Att.-Gen. v. St. John's Hospital, 2 De Gr. J. & Sm. 621. ((?) 62 & 63 Vict. 0. 20. (e) Thompson v. Alexander, 1905, 1 Ch. 229. (/) Lake v. De Lambert, 4 Ves. 595. {g) In re Harkness and Alkopp, 1896, 2 Ch. 358. (A) 7 Edw. VII. c. 18, s. 1. (i) 33 & 34 Vict. c. 14, s. 3. H. S8 THE ORIGINALLY EXCLUSIVE JURISDICTION. to be the case (fc) . But, nota bene, an alien (or anyone usually resident out of the jurisdiction) is not a desir- able or convenient trustee. Equity never ■wants a trustee. Wherever a trust exists, and there is no trustee to exe- cute it, equity decrees him a trustee in whom the legal estate is, — the want of a trustee not affecting the bene- ficial interest: Therefore, where property has been be- queathed in trust without the appointment of any ex- press trustee, — If it is personal estate, the personal repre- sentative is deemed the trustee; and if it is real estate, the heir or devisee would have been, — and now, under the Land Transfer Act, 1897 (l), the legal personal repre- sentative will be, — the trustee. Also, where there is no executor (or the executor becomes incapable), the Court may appoint a trustee to discharge the duties of the exe- cutor {being duties which the executor ivould as a trus- tee execute (m)), — but, more usually, a legal personal repre- sentative will (in such a case) be constituted by the Pro- bate Division (w) . Also, under the provisions of the Judicial Trustees Act, 1896 (o), and the rules of August, 1897, made under that Act, the Court may, in its discre- tion (p), appoint the official solicitor of the Court (or some other person (q)), to be a judicial trustee, — and that either alone or jointly with any existing trustee, or exe- cutor or administrator. Disclaimer by Where real estate (or, in fact, any property Avhatever) ■ea?ctof'"~ '^^ conveyed by deed to A.B., as a trustee upon specified -when the trust trusts, — and A.B. disclaims the estate by express deed IS by deed. ^j disclaimer (his acceptance of the estate being, in the absence of an express disclaimer, assumed (r)), — In such a case, the real estate remains in (or results or reverts (k) Fish T. Klein, 2 Mer. 431. {[} 60 & 61 Vict. 0. 65. (m) In re Moore, 21 Ch. Div. 778. («) Se Bradley, 8 Prob. D. 215 ; Re Prysse, 1904, P. 301 ; Re Edith Mary French, 1910, P. 169. (o) 59 & 60 Viot. e. 35. \p) In re Ratclif. 1898, 2 Ch. 352. ((?) Douglas v. Bolam, 1900, 2 Ch. 749. [r) London and County Bank v. River Plate Bank, 21 Q. B. D. 535, on p. 641. TRUSTEES STANDING IN A FIDUCIARY RELATION. ' 99 to) the settlor who conveyed it; and he (the settlor) holds it as a trustee and upon the specified trusts, exactly as A.B. would have done, if he had accepted the estate (s). And similarly, where the trust is created by will, and the devisee-trustee disclaims, the heir-at-law would, of course, take the devised estate, — and become the trustee thereof: And, semble, the disclaimer need not be (although it usually is) by deed, — but may be in pais (t). A trustee must observe all the rules of equity, relative in what sense to trustees, — and he departs therefrom at his own parti- the servaTt^ cular peril. But (subject to that) the trustee is a servant and in what to his cestuis que trustent ; and any cestui que trust may ^^^i^er^of'his assign his beneficial interest without the consent of the cestui que trustee (m); and a majority of the cestuis que trustent *''""^' may (x), — and, in a proper case, a minority even may (y), — demand back the trust money from the trustee. And a cestui que trust, although entitled for a limited in- terest only {e.g., as tenant for life only), may (under certain restrictions) insist upon being let into the pos- session of the trust property (z), — but he will not, as a general rule, be given the custody also of the title-deeds, there being a danger in that. Also, the cestuis que trustent (or any one or more of them) may compel the trustee to the execution of any particular duty; and if {e.g.) a cestui que trust has reason to suppose, that the trustee is about to do an act not authorised by the trust, he may have an injunction to restrain him («). The Court exercises, as regards all trustees, a e-eneral Ti'ustees,— controlling influence over them, — even in respect of their —when and ' discretionary powers (6): For example, where the plain- ?°7i *|'l'^°2," tiff sought to restrain the trustees of certain settled estates Court. ^ (of which he was the tenant for life) from raising a sum of £30,000 by sale or mortgage, and contended that they should raise the sum by timber-cuttings (the trustees (s) Mallott V. Wihon, 1903. 2 Ch. 494. (i) Birchall v. Ashton, 40 Ch. D. 436. (k) Donaldson v. Dotialdson, Kay, 711. (x) Wilsons. Ohurch, 13 Ch. Div. 1. (y) ColUngham v. Shp-r, 1893, 2 Ch. 96. {£) West V. Wythes, 18H3, 2 Ch. 369. (a) Balk t. Strutt, 1 Hare, 146. \b) Tempest v. Lord Camoys, 21 Ch. D. 671. 11 2 100 THE ORIGINALLY EXCLUSIVE JURISDICTION. having it in their discretion to raise the amount in either of these two ways), — The Court said, that the trustees must exercise their discretion in the way which should affect the successive limited owners in the least preju- dicial way (o) . Eelease of A trustee who has accepted the trust cannot afterwards modeTof" renounce it; and an executor-trustee, by proving the will, formerly and is deemed to have accepted the trusts of the will {d) : A now,. trustee may, however, obtain a release from the trustee- ship; and as regards that matter, the mode in whioh a trustee formerly obtained his release was either under an order of the Court, — Soil., where there was no express power to release him in the instrument creating the trust; or else all the parties interested must have executed the release (e). But now, under the Trustee Aot, 1893, s. 11 (repeating the like provision contained in the Convey- ancing Act, 1881, s. 32), a trustee may by deed retire from the trust, — provided two trustees remain, and pro- vided these two trustees and the person (if any) entitled to appoint new trustees express their consent to his retire- ment; and, under the Judicial Trustees Act, 1896, and and in the case Rule 23 of the rules made under that Act, a judicial tniBtS"**^ trustee may retire, on giving notice to the Court of his desire in that behalf. Trustee can- not delegate his office, — Save hy statute, — or where (incidentally) a necessity for it. The office of trustee (being one of personal confidence) cannot, in general, be delegated, — trustees who take upon themselves the management of property for the benefit of others having no right to shift their duty in that parti- cular on to other persons, — Delegattis non potest delegare. A limited power of delegation, however, has now been conferred on trustees (including executors and adminis- trators), by the Trustee Act, 1893, s. 17, — repeating a similar provision contained in the Trustee Act, 1888, s. 2, — That is to say, a trustee may now depute his soli- citor to receive the purchase-money of an estate sold; or may depute his solicitor (or any banker) to receive moneys payable under a policy of (life) assurance, — the (c) Murker v. Kekewioh, 8 Ha. 291. 'd) MuMoiv V. Full'.r, Jac. 198. '«) Manson v. Baillie, 2 Macq. H. L. Ca. 80. TRUSTEES STANDING IN A FIDUCIARY AlATJOM?''^ yl f/ 101 trustee remaining liable, of course, to see to or safety of the purchase-moneys and of other the moneys so received, — and being bound also to show diligence in that (/), — iSciZ., reasonable diligence (gr) . Also, trustees and executors may, of course, always justify their administration of the trust fund through the instru- mentality 61 others, where there is either a moral or a legal necessity for so doing {Jni): Also, under exceptional circumstance, when portion of the trust money ifi.g.^ has been invested on the mortgage of a building estate, and (in the course of the development of that estate) frequent reference to the title-deeds is a necessity, — The trustee may legitimately leave such title-deeds with his soli- citors (^), — although he ought, in the general case, to hold the title-deeds himself. On the other hand, there can hardly be any reason Securities and justifying the trustee for leaving indefinitely with his ^todv^rf"" solicitors, — although he may safely enough leave with his bankers (/c), — convertible securities (such as bonds) which are payable to bearer; and in the case of judicial trustees, the title-deeds, and all certificates and other documents evidencing the title of the trustee to the trust property, must be deposited either with the bank at which the trust account is kept, or else with such other custodian as the Court may direct (Z). But, nota bene, where there are two trustees, and one of them already has the custody of the title-deeds, the other may (in the general case) safely leave him in the custody and possession thereof, — not hav- ing, in fact, any legal right to alter that custody (m) . Generally, the rule is, that trustees are not liable for Care to be employing agents, when as prudent men of business they any delegation would do so if acting on their own behalf : But that rule by trustee,— is no protection to them, if they fail to exercise common prudence, either in their original selection of the agent, (/) Wyman v. Patterson, 1900, A. 0. 276. Ig) Be Brimont v. Harvey, 1911, 1 Ch. 50. \h) Mendes v. Guedalla, 2 J. & H. 259. (i) FieUv. Field, 1894, 1 Ch. 425. (k) lewis V. Wobbn, 8 Ch. Div. 591. {I) Dent V. J)e Fothonier, 1900, 2 Ch. 529. {m) Jones v. Trappes, 1903, 1 Ch. 262. 102 THE OEIGINALLY EXCLUSIVE JURISDICTION, security. For example, Or in their subsequent supervision of his acts : For ex- '^Son of * ^Diple, if they employ a solicitor to act as a valuer,- — or if a proposed they accept their solicitor's recommendation of a valuer, mortgage mtJiout Satisfying themselves (hy independent inquiry) that the suggested valuer is a proper agent in that behalf (n) ; or if they do not supply the agent (being a valuer selected by themselves) with true a-nd sufEcient particulars of the property he is appointed to value (o), — or accept from him a vague general report, not showing the necessary details to enable them to judge for them- selves (p), — all these precautions being such as prudent men of business would observe in lending their own moneys on mortgage, — they will, usually, be liable for the resultant loss; Trustee Act, 1893,— pro- visions of, as to delegation of duties. That is to say, unless the provisions of the Trustee Act, ' 1893, s. 8, may have altered the rules of equity in these respects: But these last-mentioned provisions amount in fact only to this, that the trustee shall not be liable (as for a breach of trust, in respect of an investment of the trust estate on an inadequate security), when " the Court is satisfied," Firstly, that the trustee in making the loan " was acting upon a report, as to the value of the joropercy, made by a person whom the trustee reasonably believed to be an able practical surveyor or valuer, instructed and employed independently of any owner of the property;" and, Secondly, that the amount of the loan does not exceed two equal third parts of " the value of the property as stated in such report;" and, Thirdly, that the loan was made " under the advice of such surveyor or valuer ex- pressed in such report," — The ptinciple underlying these provisions being this, that if an independent valuer of reputation, sufficiently instructed to make a just valua- tion, will state (i.e., represent) the value as sufficient, and will expressly advise the acceptance of the security, — Icnowing the consequent liability ivMch he {the valuer) mill thereby personally incur if his representation and advice are erroneous, — the trustee may safely be taken (k) /« re Weall, 42 Ch. Div. 674. (o) Re Partington, 67 L. T. N. S. 654. (p) Whitelcy v. learoyd, 12 App. Ca. 727. TKTJSTEES STANDING IN A FIDUCIARY RELATION. tOS: to have done all that his duty, in this particular re- quires {q). If trustees take the same care of the trust property that The oai-e ana a man of ordinary prudence would take of his own, they requS^of will not be liable for any accidental loss, — whether by a trusteea, robbery of the property while in their own possession {r) ; ^ regards,,— or by a robbery of the property while in the possession of others with whom it has {in the ordinary course of busi- ness) been entrusted (s); or by a depreciation in the value of the securities upon which the trust funds have been rightfully invested (t). But, in fact, in determining the liability or non-liability of a trustee for any loss sustained by the trust estate, the Court distinguishes between, Firstly, the duties imposed upon him, and, Secondly, the discretions vested in him, as a trustee. And, Firstly, as regards his Duties, — The utmost dili- (a) Duties; gence in observing same {i.e., exacta diligentia) is his only protection against liability for any loss; and no cir- cumstance of mere hardship will excuse him {u) . There- fore, if a trustee permits the trust fund to remain {e.g.) in the hands of a banker (not being, in the case of a judicial trustee, the banker of the trust) more than a year after the testator's death, and after the debts, &o. have been paid {x), — or mixes the trust property with his own, or (by associating with himself the authority of another person) parts with his exclusive control over the fund {y); or if the fund is left to the entire control of a co- trustee {z), — or be lent to such co-trustee {a), — In all these cases, it will be at the trustee's risk (&). And, nota bene, it is considered a breach of trust, to invest the trust funds on a contributory mortgage (c) ; and it used to be considered a breach of trust, to concur in a contributory (q) Sotnerset v. Harl Fowlett, 1894, 1 Ch. 231. (r) Morley v. Morley, 2 Ch. Ca. 2. {«) Speight v. Gaunt, 9 App. Ca. 1. {t) Cocks Y. Chapman, 1896, 2 Ch. 763. (m) Caffrey v. Danby, 6 Ves. 488. (») Sarhe v. Martyn, 1 Beav. 525. (i/) Lupton T. White, 15 Ves. 432 ; Webb v. Jonas, 39 Ch. Div. 660. (z) Scoiney v. Lomer, 29 Ch. Div. 535. («) Stickney v. Sewell, 1 My. & Cr. 8. (i) Castle t. Warland, 32 Beav. 660. [c) Webb V. Jonas, supra. iOi THE ORIGmALLY EXCLTJSIVE JUEISDIGtION . sale of the trust real estate (d); but, where the trust has been created since the 31st December, 1881, a contributory sale, if duly conducted, is now lawful enough (e) . t, 1904, 2 Ch. 785. [a) Rnhinson v. Harlcin, 1896, 2 Ch. 415. (J) Butler V. Butler, 7 Ch. D. 116. TRUSTEES STANDING IN A FIDUCIARY RELATION. 117 «u3ts or defaults of his co-trustees, — but for his own acts clauses,— and defaults only; and also a further express clause that gene^i°*' ™ the trustees may reimburse themselves out of the trust estate their costs, charges, and expenses properly incurred. But, as equity infuses such provisions into every trust deed (c), a person can have no better right from the ex- pression of that which (if not expressed) would be implied (d); and the Trustee Act, 1893, s. 24 (continuing the like provision contained in Lord St. Leonards' Act, •s. 31) has adopted this principle of equity, — That is to say, trustees are not to be thereby further indemnified (or reimbursed) than they were before; and a "wider in- demnity (or reimbursement) clause is therefore often expedient, — and is not unusually inserted in trust instru- ments (whether deeds or wills). The reimbursement is, in general, out of residue, — but may be out of any part of the estate (e), — and even out of income (/), — the trustee's right being paramount to the rights of all the cestuis que trustent ; but there is norule of law, requiringi that the reimbursement (or the indemnity) shall be at the cost of the tenant for life exclusively {g) ; nor may the right of indemnity, in general, be so exercised as to defeat (or exhaust) the trust altogether Qi) . Apparently, the liability of the cestui que trust to indemnify his trustee, continues even after the cestui que trust has sold and assigned his whole beneficial estate and interest {i), — although, in such a case, the purchaser may be also liable, and primarily liable. As regards reimbursing or recouping trustees their Costs of litiga- -costs of litigation, — and whether the trustees are the against trus- plaintiffs or are the defendants, — tees,— nght of Firstly, If they have obtained the leave of the Court imburaement. to sue or (as the case may be) to defend, — which leave they will obtain, if the litigation appears to be prima {e) Dawson v. Clarke, 18 Ves. 254. (i^) TT'orrall-T. Harford, 8 Ves. 8. (e) Stott V. Milne, 25 Ch. Div. 710. (/) Sawyer v. Sawi/er, 28 Ch. Div. 695. (g) In re Lever, 1897, 1 Ch. 32. \K) Darke v. Williamson, 25 Beav. 622. \i) Matthem v. Buggies -Brise, 1911, 1 Ch. 194. 118 THE ORIGINALLY EXCLUSIVE JURISDICTION. facie proper and in the interest of the estate, — They are protected thereby against their own cestuis que trustent, however the litigation may result, — and will therefore (in such a case) be entitled to be reimbursed their costs out of the trust estate; But, Secondly, If they have omitted the precaution of obtaining such leave, — The rule is, that they are entitled (in that case also) to be reimbursed (out of the trust estate) their expenditure in costs (including even the extra costs incurred by the trustees in their own personal defence against a charge of personal fraud alleged against them), — 8cil., where the charge is in respect of some- thing incidental to their administration of the trust estate (fc), — but not in any case, if the litigation is specu- lative and (in the ultimate result) unsuccessful (l). Generally, as regards the powers, duties, and responsi- bilities of trustees, — It is to be observed. Firstly, that upon the death of one of the trustees, the entire rights and powers survive over into the survivor or survivors, — So that the trustees or trustee " for the time being" may, in general, exercise all these rights and powers, — and (as regards powers) even powers which are discretionary (to); and the entire future responsibilities also so survive over, — ^without prejudice, nevertheless, to any responsibility which has accrued before the death, and which is (or may be) of a character to entitle the cestuis que trustent (or any of them) to proceed against the estate of the deceas- Duty of trustee ing trustee: And it is to be observed, Secondly, that trtSTproperty. ^^^ primary duty of a trustee is to carry out the directions of the person creating the trust, — and (subject to that) to place the trust property in a state of security: (1) Eeduction If, therefore, the trust fund be an equitable interest, of OT qmsi-^"''™ which the legal estate cannot for the moment be got in, poBsession. it is the trustee's duty to lose no time in giving notice to (k) Walters v. Woodbridge, 7 Ch. D. 504 ; Brinklow v. Singleton, 1904 1 Ch. 648. (t) In re Yorke, Sarloui v. Yorke, 1911, 1 Ch. 370. Im) JBastwiek v. Smith, 1904, 1 Ch. 139. TEUSTEES STANDING IN A FIDUCIARY RELATION. 119 the person in whom the legal interest is vested; and if the trust fund be a chose in action which may be reduced into possession, it is the trustee's duty to get it in, and any unnecessary delay in that will be at his own risk. And, further, an executor is not to allow the assets of the (2) Reaiisa- testator to remain outstanding upon personal security, ou^tandine^n though the debt was a loan by the testator himself on personal what he deemed an eligible investment ; and a trustee is ^'"'"" y- not justified in himself lending on personal security, — although he may continue such loans (and also make new loans on personal security), if expressly empowered to do so by the instrument creating the trust (w), — exercising his discretion (in such case) in an honest and reasonable way (o), — and even loaning, to one of the beneficiaries themselves, if he deems it prudent to do so (p). As regards the Range of Investments for trust funds, (3) Thein- " The Trustee Act, 1893 " (56 & 57 Vict. c. 53), repealing trasrfiui(£. but re-enacting "The Trustee Investment Act, 1889" (52 & 53 Vict. 0. 32), now authorises (by s. 1) trustees to invest trust funds in or upon (among the other securities to be presently mentioned) any of the securities in or upon which " cash under the control of the Court " may be invested {q) ; and the Act applies to all trusts, whether created before or after the 22nd September, 1893. Prior to the Trust Investment Act, 1889, and indepen- W In^'est- T 1 n -1 ments dently oi any power given by statute, trustees exe- authorised before Trust Investment (m) Paddon v. Richardson, 7 De 0-. M. & a. 56. Act, 1889. (o) Smiths. Thompson, 1896, 1 Oh. 71. \p) Laing t. Radelife, 1899, 1 Ch. 593. (q) By Ord. XXII. r. 17, oasli under the control of (or subject to the order of) the Court, may be invested in (among others) the following- stocks, funds or securities, viz. : 2J per cent. Consols ; stock under the Local Loans Act, 1887 ; Bank Stock ; London County CouncU 3^ per cent, stock ; India 3j per cent, stock ; India 3 per cent, stock ; Indian guaranteed railway stocks or shares, not being redeemable within fifteen years from the date of investment ; stocks of Colonial Governments guaranteed by the Imperial Government ; mortgages of freehold and copyhold estates respectively in Enf^land and Wales ; debenture, prefer- ence, guaranteed, or rent-charge stocks of railways in Great Britain or Ireland, having (for ten years next before the date of investment) paid a dividend on their ordinary stock or shares, — Soil., being guaranteed by the railway company ; and nominal debentures, or nominal debenture stock, under the Local Loans Act, 1875, not being redeemable within fifteen years from the date of investment. 120 THE ORIGINALLY EXCLUSIVE JURISDICTION. cutors or administrators might lawfully have invested in Government securities, or in Consolidated Bank annuities (?-) ; and trustees were enabled (by successive statutes) to invest in divers other investments and secu- rities, — That is to say, by Lord St. Leonards' Act (22 & 23 Viet. c. 36), s. 32 (s), by Lord Cranworth's Act (23 & 24 Vict. c. 145), s. 25, and by the Settled Land Act, (b) Invest- 1882 (45 & 46 Vict. o. 38), s. 21. And now, under the Trustee Act^ express provisions of the Trustee Act, 1893 (which is 1892- in large measure a consolidating Act, and which has been extended, quoad investments, by the Colonial Stock Act, 1900 {t)), — Trustees, unless expressly forbidden by the instrument (if any) creating the trust, — or unless (semhle) their investments are controlled by some special Act (as the investments of building societies are (m)), — may (if they have power to invest at all (x)), invest the trust funds in any of the following investments (besides those already specified for " cash under the control of the Court"), — That is to say: Parliamentary stocks or public funds, or Government securities of the United Kingdom; real securities in Great Britain or Ireland; stock of the Bank of England or of the Bank of Ireland; India three and a half per cent, stock, and India three per cent, stock, or any future issues of such stock; securities the interest of which is guaranteed by Parliament; certain listed Colonial Stocks: London County Council stock; debenture stock of any railway company in Great Britain or Ireland incorporated by special Act of Parliament (and having during each of the ten years last past before the date of investment paid a dividend at the rate of not less than three per centum per annum on its ordinary stock); debenture stock of any railway company in India the interest on which is paid or guaranteed by the Secre- tary of State in Council of India (y) ; debenture or guaran- teed or preference stock of any company in Great Britain (f) Baud V. Fardell, 7 De G. M. & G. 628. (s) In re Wedderburn's Trusts, 9 Ch. Div. 112. {t) 63 & 64 Viet. o. 62. (m) In re National Permanent Society, 43 Ch. Div. 431. (x) In re Manchester Eoyal Infirmary, 43 Ch. Div. 420. {y) Topham v. Armitage, 1906, 2 Ch. 399. TRUSTEES STANDING IN A FIDUCIARY RELATION. 121 or Ireland, established for the supply of water for profit, and incorporated by special Act of Parliament or by Royal Charter (and having during each of the ten years last past before the date of investment paid a dividend of not less than five pounds per annum on its ordinary stock) ; and nominal or inscribed stock lawfully issued by any municipal borough, having (according to the returns of the last census prior to the date of investment) a popula- tion exceeding fifty thousand, — or lawfully issued by any County Council, or lawfully issued by any Commis- sioners incorporated by Act of Parliament for the purpose of supplying water, and having a compulsory power of levying rates over an area having (according to the returns of the last census prior to the date of investment) a popu- lation exceeding fifty thousand, — besides certain other stocks and debentures. And as regards any investments of the kind specified in the Act, — and whether made under the Act or before the Act, — the trustees may " vary" the same for other like investments {z), — and also (by the Trustee Act, 1894 (a), s. 4) may " continue " any of these authorised investments, notwithstanding that (since the investment of the trust funds therein) they may have ceased to be an authorised investment (6). But the trust instrument itself usually contains an express power to "vary'' investments, and to "retain" or "continue" ex- isting investments (c), — or existing securities (d) . A power to invest in "real securities" does not, of rftS^"— ™' course, authorise the trustees to invest in the " pur- meaning of chase" of lands, — Scil., because that is an alienation out t'^^P"^*^^- and out of the trust property; and for such an alienation an express power is required. And any "purchase" which may have been lawfully made under an express power, is regarded as an "investment," — so as to be realisable again by a sale thereof (e), — the sale being a sort of " variation " of the investment, and the rule being (z) Zopes v. Hume-Biek, 1892, A. C. 112. (a) 57 & 58 Vict. u. 10. [h) Cocks V. Chapman, 1896, 2 Ch, 763. (e) Smith v. Zewis, 1902, 2 Ch. 667. ((/) Rayner v. Rayner, 1904, 1 Ch. 176. (e) In re Gent and Eason, 1905, 1 Ch. 386. ^'^2 THE OEIGINALLY EXCLUSIVE JURISDICTION. applicable also to the realisation of any real estate (origi- nally mortgaged to the trustees) which they have (by foreclosure) acquired the absolute title to (/). " Real Securities " mean and intend first mortgages only; but (subj^ect to that) they extend to comprise lease- holds for long terms of years at a peppercorn rent, and which are not subject to onerous covenants, — but not any other leaseholds or terms of years (gr), — the leaseholds pre- scribed by the Trustee Act, 1893, s. 5, being leaseholds having not less than two hundred years unexpired, and) which are not subject to any rent greater than a shilling a year. . " Real Securities " were supposed, until recently, t-o comprise also local rates, ha,rbour duties, tolls, and the like, levied directly hy local or other public authori- ties (h) ; and this opinion, although afterwards doubted (i), has been now in great measure accepted again (k) ; and the Trustee Act, 1893, s. 5, now expressly authorises (as investments) improvement charges under the Improve- ment of Land Act, 1864 (or mortgages of such charges). Breaches of An investment which is not authorised, either by the in cases of ' Aots above referred to or by the express investment authoraedb'^^ clause Or olauises contained in the trust instrument, can- the Court. not, in the general case, be sanctioned by the Court even (l), — although, in cases of " emergency," the Court may (under proper safeguards) sanction such an invest- ment (m) . And, similarly, when a power of sale is exer- ciseable by the trustees of a will on the death of the tenant for life, the power may not be exercised by them in the lifetime of such tenant, — not even with his consent; and the Court may not (nor will) sanction the accelerated exercise of the power (n), — unless in ease of some grave emergency . (/) Chapman Y. Browne, 1904, 1 Ch. 785. {(j) In re Chennell, 8 Ch. Div. 492, (A) I'inch V. Squire, 10 Ves. 41. (i) Martin t. Lacon, 33 Ch. Diy. 332. {k) In re Crosdey, 1897, 1 Ch. 928. (V) In re New, 1901, 2 Ch. 534. (m) In re Tollemaehe, 1903, 1 Ch. 457, 965. («) Blackhto v. Laws, 2 Ha. 40, on p. 46. TRUSTEES STANDING IN A FIDUCIARY RELATION. 123 Where a testator subjects the resid/ue of his personal (4) Conversion estate to a series of limitations, such part of the residue and^^CTsSn- as may be wearing out (such as leaseholds) must, in ary property, general, be converted, — and put in some permanent state ^^ed^r™' of investment; and if the residue comprises property of siduary devise a reversionary nature, that also must, in general, be °^ ^"^"^^ ' converted, — and made at once income-producing (o) . And the like rule is applicable also to unauthorised investmentis generally, — even although they should not be of a weaxing out character (p). But this duty to convert does not arise when the trust instrument is a deed (q), — nor, of course, where the bequest is not residuary at all, but is specific (r) . And it is to be here observed, that a residuary bequest may specifically enumerate divers properties, afid yet continue (and usually it will continue) residuary, even as regards the specifically mentioned properties (s), — although it may, occasionally, be in fact specific (and not residuary), . as regards the specifically mentioned properties (t) . The duty to convert may be excluded (1) by any express direction of the testator to the contrary; ox even (2) by the sufficient indication of any intention on his part to exclude it. For example, the duty to convert does not arise where there is a discretionary power in the trustees to convert ufhen and as they shall deem expedient {ii), — or where the testator expressly authorises the retention Enjoyment f 7 • 1 • / \ T 1 1 • 1 ^^ specie^ — 01 unauthorised investments (x), — thereby making them excludes the (for the time being) authorised investments (y) . The ^"^^g*^ duty to convert will also be excluded, if the testator ex- pressly gives the income of the residue to be enjoyed in specie (z) ; and an enjoyment in specie may be even im- pliedly directed, — e.g., from an enumeration of particu- lars (not being a mere expansion of what is comprised in (o) ffowe V. Lord Dartmouth, 7 Vee. 137. ip) Jn re Nwhohon, 1909, 2 Ch. 111. (q) BoiisteaiY. Cooper, 1901, 2 Ch. 779. \r) Moore Y. Wikon, 1907, 1 Ch. 394. («) Baldock v. Green, 40 Ch. D. 610. [t) Castle V. Oillett, L. K. 16 Eq. S30. {u) Brandreth v. CoMn, 1896, 2 Ch. 199. [x) Brown v. Qellatly, L. R. 2 Ch. App. 751. («^) Bodgson v. Bates, 1907, 1 Ch. 22. f«) Moore v. Wilson, 1907, 1 Ch. 394. 124 THE ORIGINALLY EXCLUSIVE JURISDICTION. the word residue (a)). But the right to enjoy in specie will not be readily implied (6); and even where an en- joyment in specie is directed, all such parts of the residue as consist of "debts " owing to the estate (c), or of " shares in a partnership business" (d), must be converted. An' enjoyment in specie may arise also by force merely of the local law (e). Time for conversion. Where the duty to convert exists, it is a duty which must, in general, be fulfilled within a year from the testator's death (/); a ad where the trustees have a dis- cretion as to the time for converting (e.g., a reversionary interest in Consols), something (on the footing of income) must in the interim be paid, — in the general case (g), but not invariably (h), — to the tenant for life. If there is a trust to convert, but with a discretionary power in the trustees to retain, — and the trustees disagree as to retaining, the trust to convert is paramount, and becomes absolute (i) . (5) Distin- guishing be- tween capital and income. Where the residue is given on a series of limitations, and the duty of immediate conversion is excluded, the testator may either give the whole actual income of the existing securities until conversion to the tenant for life (/c), or he may not do so: And where he has done so, no question arises, — at least, in the general case(Z); but where he has not done so, then it appears, in questions between the tenant for life and the remainderman, — (1) That the tenant for life is entitled to the actual in- come of so much of the residue as is at the testator's death invested on authorised securities; and (2) That, {a) Re TuotaVs Estate, 2 Ch. Div. 628. (J) Gcime\. Young, 1897, 1 Ch. 881. (<;) Solgate v. Jennings, 24 Beav. 623. (d) Kirkman v. Booth, 11 Beav. 279. \e) In re Moses, 1908, 2 Ch. 235. (/) Qrayhnrn v. Clarlcson, L. E,. 3 Oh. App. 606. (g) Sdwils V. Sebb, 1900, 2 Ch. 107. (A) Yates v. Yates, 28 Beav. 637 (a case of building land lying idle). (i) In re Hilton, Oibbes v. Hale-Hinton, 1909, 2 Ch. 548. (k) Chamellor v. Brown, 26 Ch. Div. 42. {I) Askew V. Waodhead, It Ch. D. 27. TRUSTEES STANDING IN A FIDUCIARY RELATION. 126 with regard to the unauthorised securities (whether wasting or not (m)), he is entitled to only some appor- tioned part of that income, — being either (1) the income which would be produced by the authorised investments of these moneys if made at the end of one year from the testator's death, — or else (2) the interest on the then value, computed at the rate of 3 (and not 4) per cent, per annum (w). And where there are outstanding in- convertible securities, and they eventually fall in (o), — or where there is a bond-debt which is not realised until a great many years after the death (p), — the apportion- ment between capital and income is made, by ascertain- ing the sum which (put out at interest at three per cent, per annum on the day of the testator's death) would, with the accumulations of that interest at three per cent., and with yearly rests, have produced (on the day of the securities falling in) the amount actually received, and by treating the sum so ascertained as capital, and the rest as income; and where (in such a case) the full amount is not realised, the loss or deficiency must be similarly apportioned (q). Trustees, if they are to mortgage the trust estate, must Mortgages by have express power to do so: Which express power carries executors — with it, in general, a power to insert in the mortgage deed a power of sale (r) . But, this latter point having been doubted, it is better, in giving trustees a power to mortgage, to say that they may mortgage with or without a power of sale to be inserted in the mortgage deed (s). As regards executors, on the other hand, they may, of (a) Personal course, sell or pledge whatever portion of the assets vests in them virtute officii, — and it will be intended (in the absence of fraud), that the sale or pledge is for the purpose of paying the testator's debts (t), and it seems to follow, that the executor may also mortgage, in (m) In re Woods, 1904, 1 Ch. 4 ; Chayter t. Born, 1905, 1 Gh. 233. [n) Kirkman v. Booth, supra; In re Woods, supra. (o) In re Chesterfield's Trmfs, 24 Ch. Div. 643. Ip) Turner \. Newport, 2 Phill. 14.' (q) In re Atkinson, 1904, 2 Ch. 160. \r) Re Chawtier'.s Will, L. K. 8 Eq. 669. (s) S'-lbt/ V. Cooling, 23 Beav. 418. (*) Solomon V. Attenhorough, 1911, 2 Ch. 169. 126 THE ORIGINALLY EXCLUSIVE JURISDICTION. Immediate sale, trust for, — excludes the right to mort- general, such assets, with or without a power of sale in the mortgage deed (m) . But as regards the assets which did not vest in the executor virtuU officii, — i.e., real estate devised to the executor, — It appears, that the executor might, occasionally, — but only occasionally, — have created a valid mortgage of that (x) ; but when the will con- tained a trust for sale, and there was no power to postpone the sale, the executor might not have made any such (b) Real assets, interim mortgage («/) . However, now, and as re- gards all testators and intestates dying after the 1st January, 1898, the whole real estate of the deceased (other than the legal estate in his copyholds) vests (with the personal estate) in the executor or administrator as the legal representative, — and in a manner virtiite officii, — by virtue of the express provision in that behalf con- tained in the Land Transfer Act, 1897 (z), s. 1, — the real estate being for this purpose regarded simply as p. leasehold or chattel real: So that, by virtue of that Act, the legal representative may now, in his discretion, either sell or mortgage such real estate for any lawful purpose of the administration, — ^during (at least) the first year after the death and before any assent to the beneficial devolution of the estate (a) . Executors, — carrying on the business of their testator. (1) Where no power in the will to do so. Executors have not any authority (merely virtute officii) to carry on the business of their testator, and to use his estate therein, — although the will may, either ex- pressly (6) or impliedly (c), empower them to do so: And, firstly, it is to be observed, that if the business is, in fact, carried on (whether under a power in the will to do so, or without any power in the will to do so), — the executors become (in either case) personally liable to the creditors, on the contracts which they (the executors) make with them, — So that the creditors may (in all cases) sue the executors on these contracts, and get personal judgment against them for the debts (J): And where. (m) M'Leod V. Drummond, 17 Ves. 154. [x] Corser v. Carlwright, L. R. 7 H. L. 731. (y) Haldenby v. Spofforth, 1 Beav. 390. (z) 60 & 61 'Vict. c.'65. («) Ibid. s. 2, Bub-s. 2. (b) Arnolds. Smith, 1896, 1 Ch. 171. («) Nixon V. Cameron, 26 Ch. D. 19. ((?) Owen V. Delamere, L. E. 15 Eq. 134. TRUSTEES STANDING IN A FIDUCIARY RELATION. 127 in such a case, personal judgment against the executor has been obtained, then (so far as regards the estate of the testator whose representatives the executors are), the question of indemnity is one which arises only as between the executors on the one hand and the beneficiaries on the other hand(e). Therefore, secondly, where (under the will) the executors have a power to carry on the busi- ness, the carrying on of the business (in that case) is a lawful execution by them of the trusts of the will, — and the creditors will then (by subrogation to the executors) have this other or further right, namely, — a right to go against the assets of the deceased testator, to be paid their debts thereout: which latter right is, apparently, alternative (and not cumulative (/)), — and is exercised and enforced according to the distinctions following, that is to say: — The testator sometimes limits the power of the execu- (2) where a tors to a specific part of his assets; and sometimes he ESiT!'^ j**^^. declares, that his whole estate (or general assets) shall be available for the purposes of the business; and some- times he does neither the one of these two things nor the other. And, firstly, if he do neither of them, then it appears, ^*X^^.^ "^ that (as a general rule) the property which was in the pertyaireiS™ business at the date of the testator's death (and that pro- in the business, perty only) may lawfully continue to be used therein (^f), perty oniy^^^s — In which case, the creditors of the executors have not ayaiiable; any right (by subrogation or otherwise) against the general assets (i^). Secondly, if the general assets have been expressly made (h) Cases in available for the purposes of the business, the whole estate ^hcSe esfcite becomes (in effect) a fund for the creditors of the execu- (or the general tors, — Scil., by subrogation to the executors, — In which avdiabiT-^ case, the creditors of the executors have priority (semble) over the creditors of the testator at the date of his (e) Brooke v. Brooke, 189t, 2 Ch. 600. (/) Dowse V. Gorton, 1891, A. C. 190. [g] McNeilUe v. Aeton, i De G. M. & G. 744. \h) Strickland v. Symons, 26 Ch. D. 245. 128 THE ORIGINALLY EXCLUSIVE JURISDICTION. death («), — the right of the executors to a full and com- plete indemnity (at the expense even of the testator's own creditors at the date of his death) being (in this case) open to no question at all: (c) Cases in Thirdly, where the testator empowers his executors to mecfficToJ employ only a limited portion of his assets for the purpose limited) assets of carrying on the business, — The executors have (in this aval ab e. case) a right to resort to the limited assets only : hence it follows, that (in this case) the creditors also are entitled (by subrogation) to obtain payment of their debts out of such limited assets only (and not out of the general assets (Jt)). And, nota bene, this right of the executora (and right, by subrogation, of the creditors) extends also to damages recovered against the executors, in respect of a tort committed by them (being a tort naturally arising in the due carrying on of the business (I)). Executor in When th© executor is himself in default to the limited effect ofThat °'' specific assets (which are available for the purposes on Mm, and on of the business), he (the executor) is not (in such a case) the tm^es^s^ °* entitled himself to any indemnity (except upon the terms of first making good his own default); and the creditors are in no better position (m) ; but where there were three executors, and one only of them was in default, the creditors were held entitled in respect of the other two (n) . Indemnity, — when a receiver and manager is, or is not, en- titled to it ? As regards a receiver and manager appointed by the Court (in the winding-up of an estate or of a company, or in a debenture holders' action, or the like), — Seeing tliat (equally with an executor carrying on the business) he contracts a personal liability, therefore (equally with an executor) he is entitled to an indemnity out of the estate (o), — Soil., out of the estate only (p), and to the ex- tent only that he has been acting on behalf of the estate (g). (i) Dowse V. Gorton, supra. (k) Ex parte Garland, 10 Ves. 52, 120. {!) Rayhould\ Turner, 1900, 1 Ch. 199. (m) r.rans v. Evonx, 34 Ch. D. .597. (n) Nmton v. Rnlfe, 1902, 1 Ch. 342. (o) Bi'rtM. Bull, 1895, 1 Q B. 276; Slrapp y. Bull, 1895, 2 Ch. 1. Ip) Boehmv. Goodall. 1911. 1 Ch. 155. (}) Brinklow v. Singleton, 1904, 1 Ch. 048. TRUSTEES STANDING IN A FIDUCIARY RELATION. 129 but SO as to include money, lawfully borrowed for the purpose of carrying! on the business {r) . On the other hand, a receiver and manager not so appointed, but who is appointed by (e.g.) a mortgagee in the ordinary way, is not entitled to any indemnity, — Scil., because he incurs no personal liability, but is merely an agent for his prin- cipal (s) . Now, if the receiver is entitled to be indemnified, then also the creditors, dealing with the receiver in connection with the estate, are entitled (by subrogation) to be paid their debts out of the estate; but that right of the general creditors, even where it exists, is not (in the case of a company) available as against the debenture holders, or other the secured creditors of the company (<). Also, a loan which was ultra vires the receiver would not (under the doctrine of subrogation) be entitled to be paid or re- paid out of the assets of the company, — Scil., in com- petition with any of the other creditors of the com- pany {u), but only (if at all) by subrogation to the rights of the creditors (if any) whose debts had b^een, in fact, discharged by, means of the loaa (x). Where the executor or trustee has no right to carry on Executors the business of the deceased testator, and he nevertheless t^"Z™?™ 1/1 \ ' (* ■ ^ 1 11 • ^^^ business, — carries it on, he (the executor), if entitled at ail to an m- and making a demnity, will not be entitled to an indemnity as a matter i^^^^^t^'t of course, — Whence it follows, that (in such a case) the tion according creditors have no right (by subrogation or otherwise) to ^^^®?^^" be paid out of the assets of the teetator (?/) ; and if (in have not such a case) the executor makes a loss and makes also a power to carry gain, he is not entitled to set off the loss against the gain {z), but is personally liable to make good the loss. And it is precisely in these respects, that an executor (or trustee), who carries on the business under an express or implied power in the will to do so, differs from (and is (r) Walifax Sank v. British Power, 1907, 1 Ch. 528; and see {S.C.), 1910, 2 Ch. 470. (s) Owen V. Cronk, 1895, 1 Q. B. 265. (t) In re Wrexham, #c. S. C, 1899, 1 Ch. 400. (k) Fortsea Island v. Barclay, 1895, 2 Ch. 298. (x) Blackburn Societi/ v. Cunlifes, 22 Ch. D. 71. (y) Strickland v. Symons, 26 Ch. D. 245. (e) Wiles v. Gresham, 1 Drew. 258. S. K 130 THE ORIGINALLY EXCLUSIVE JUEISDICTION . How varying profits and losses are to be dealt with, — in case of business being lawfully carried on. more favourably circumstanced than) an executor or trustee who carries on the business without any such power {a) . When the executors carry on a trade under a power or direction in that behalf contained in the will, and there are successive tenants for life and remaindermen, succes- sively entitled under the will, the will ought to provide (as between these beneficiaries) for the possible alternation of profit and loss during the successive tenancies; and if the will has neglected to so provide, then the losses, (1) so far as they are ordinary losses (such as bad debts), will be made good out of the subsequent profits (6); but (2) so far as they are not of that character, they will be written off against (and in reduction of) capital (c), semble. Remedies of cestui que trusty in event of a breach of trust. (1) Personal remedies. (2) Beal remedies. The remedies of a cestui que trust (for a breach of trust) comprise. Firstly, the remedy in respect of the personal liability of the trustees (which is a joint and several liability) ; and (in certain cases) even the solicitors for the trustees (d), — and third parties generally (e), — will (in respect of the breach of trust) be substantively liable to the cestuis que trustent, and also collaterally liable to the trustees themselves, — Scil., for negligence (/). And, nota bene, although these third parties (where liable at all) would be liable as constructive trustees only, yet (under exceptional circumstances) they have been held to be liable as express trustees, although de son tort only (g), — and sometimes even as fraudulent receivers (fe) : And comprise, Secondly, the following other remedies, — sometimes called the real remedies of the cestuis que trustent, because they affect the trust property itself, and in a manner follow it, — That is to sa,y: — Firstly, If the alienee of the trust estate is a volunteer, (i; Eight of trusTestate. ^ then the estate may be followed into his hands (whether (a) Scott V. It/on, 34 Beav. 434. (*) Upton V. Brown, 26 Ch. Div. 588. (c) Frowde v. Hengler, 1893, 1 Ch. 686. (d) Blyth V. Flarlgate, 1891, 1 Ch. 337. («) Seynes v. Dixon, 1900, 2 Ch. ."iei. (/) Howell V. Young, 5 B. & C. 2.i9. (g) Barney v. Barney, 1892, 2 Ch. 265. (h) Rolfe T. Gregory, 4 De G. J. & S. 577. TRUSTEES STANDING IN A FIDUCIARY RELATION. 131 he had notice of the trust or not); and if the alienee is a purchaser for value (but loith notice), the same rule applies. But, nota bene, this remedy is not availabk, unless the funds are trust funds: And therefore it is not available in the case of mere debts («'), — ^nor (usually) against bankers, in respect of trust funds transferred from the trust account of a customer to the private account of the customer (fc) . And, if the alienee of trust funds is a purchaser for value without notice, and obtains the legal estate, his title cannot be impeached {I); but if he has, in the first instance, taken only an equitable conveyance, the trust estate may, in the general case, be followed (m); nor (in such latter case) would it help the purchaser, even although he should afterwards (on discovering the trust) have obtained a voluntary conveyance of the legal estate (to) : Secus, if such subsequent conveyance is not purely voluntary (n) . Nota Bene, — If a trustee (who has been guilty of a ^^'^^'^^ °* breach of trust) makes good the breach out of his own goodbytmstee property (although it should be immediately prior to his ii™seif. own bankruptcy), the trust estate is, in general, entitled to retain the benefit of that: That is to say, the general creditors of the trustee cannot set aside the transaction as a fraudulent preference (o), — Scil., Because it is con- sidered an honest fraudulent preference (p). Also, where the breach of trust consists in having made an un- authorised investment, the trustee may (or his executors may) sell the investment, — towards recouping his liability for the breach (q) ; and the sale may, in general, be made without first giving to the cestiiis que tnistent any notice of the intention to sell (r), — an unauthorised investment being (in that particular) different from an insufiicient but authorised investment (s) . (i) Lister v. Stuhbs, ih Ch. Div. 1. (k) Coleman v. Bucks Bank, 1897, 2 Ch. 243. [J) .Frnser v. Murdoch. 6 App. Ca. 855. \ni] Carter v. Carter, 3 K. & J. 617. («) Taylor v. Susiell, 1892, A. C. -lil. (o) Ex parte Stuhbins, 17 Ch. Div. 58. [p) Small V. Bradley, 2 P. Wins. 427. (q) Bower v. Bank^, ItOl. 2 Ch. 4S7, 496. ()■) In re Jenkin- and Banda'l, 1903, 2 Ch. 362. (s) Briest v. Uppleby, 42 Ch. D. 351. k2 132 THE ORIGINALLY EXCLUSIVE JURISDICTION. (2) Eight of following the property into which the trust fund has been con- verted. Secx)ndly, If the trust estate has been tortiously dis- posed of by the trustee, the cestui que trust may also follow the property (whether land or any other property) that has been substituted in its plaoe, — Scil., so long as the substituted property can be traced (f). Money even may be followed by the rightful owner, — also bills and' notes, — unless where they have been paid away or nego- tiated without notice of the trust (m) ; and, in fact, the only difference between money on the one hand and notes and bills on the other is, that money is not ear-marked, — • and therefore cannot (except under peculiar circumstances) be traced (x); but notes and bills, from carrying a number or a date, can (in general) be identified by the owner without difficulty {y) . But the necessity for identification does not arise, where the trust property is still in the hands of the trustee, — Scil., Because if the trustee mixes the trust money with his own money, the cestui que trust is entitled to every portion of the blended property which the trustee cannot prove to be his own (2). If the trust estate has been invested (under an express power in that behalf) in the purchase of land, and the trustee adds money of his own in order to make up the full purchase-moneys, — or raises such extra money by an "attempted mortgage" of the purchased lands, — He (the trustee), and also his mortgagee, have a right to be in- demnified out of the purchased property the extra money so paid (or raised) ; but their right of indemnity is sub- ject to the prior right of securing the full amount of the trust money, — and (subject to such prior right, and to the right of indemnity) the purchase enures wholly for the benefit of the trust (a) . Also, if the trust estate has been wrongfully applied in the purchase of land, — And afterwards the trustee dies intestate and without heirs; and the land accordingly escheats, — if freehold, to the {() Wilson V. Foreman, 2 Dick. 593. (m) In re Eallett ^ Co., 1894, 2 Q. B. 237. (:c) Scott V. Stcrman, Willes, 400. (j/) £irt V. Burt, 11 Ch. D. 773, u. (z) Hancock \. Smith, 41 Ch. Div. 456. (a) Worcester Banh v. Blick, 22 Ch. Div. 255. TRUSTEES STANDING IN A FIDUCIARY RELATION. 133 crown; or if copyliold, to the lord, — The land may still be followed notwithstanding (&). Thirdly, If a trustee who has been guilty of a breach i^^-J'^l^S'?j!p of trust has any beneficial interest under the trust instru- equitable) of ment, — and his interest is equitable, — the Court will not ^^^^g*®^' allow him to receive any part of the trust fund in which interest of the he is iequitably interested, and relative to which the breach g^^^*^'*' of trust has been committed (c), until he has made good paxticipatiag the breach of trust, — which remedy is called "impound- trust, maybe ing" his beneficial interest ((i) ; but the Court cannot "impounded." apply this remedy, if (or so far as) the trustee's beneficial interest under the deed or will is legal (e), — " the Court having no power to lay hold of the legal interest in order to recoup the breach of trust." In like manner, the bene- ficial interest of any Cestui que trust (who has participated in the breach of trust) may be impounded to make good the breach, — Scil., if such interest is equitable (which it usually is)(/); and this remedy is now available in the case of a married woman beneficiary, even where she is restrained from anticipation (g) . Also, and upon the like principle, legatees of residue (who are indebted to the estate) must first pay up their debts before they are permitted to share in the residue (h), — and that is so, even where the debts in question are statute-barred (^) ; and even specific legatees are subject to this rule(fc). Also, covenantors in settlements (I), — and in separation deeds (to), — must fijst make good their breaches of ■covenant, before they will be permitted to receive their beneficial interests (whether legal or equitable) under the deed. The equitable right of impounding the beneficial interest has priority over the right of a mortgagee of the (A) Sughes V. Wells, 9 Ha. 749. (c) In re Towndroiv, Gratton v. Machen, 1911, 1 Ch. 662. (d) Woodyatt v. Oresley, 8 Sim. 180. (e) Fox V. BucJcley, 3 Ch. Div. 508. (/) Raby v. Ridehatgh, 7 De G. M. & a. 104. (g) Holt^. Bolt, 1897, 2 Ch. 525. (A) Cowtenay v. Williams, 3 Ha. 539. (i) Akerman v. Akerman, 1891, 3 Ch. 212. \h) Taylors. Wade, 1894, 1 Ch. 671. (Z) Fr^dy t. Rose, 3 Mer. 86. [m] Bavies v. Tagart, 1900, 2 Ch. 64. 134 THE OEIGINALLY EXCLUSIVE JURISDICTION. beneficial interest of the beneficiary {n) ; and also over the right of the trustee in bankruptcy of the bene- ficiary (o), — Sail., when the indebtedness is a true in- debtedness {i.e., a debt, and not a mere liability (p)) of the beneficiary. But if (and so far as) there has been an appropriation to meet and answer the beneficiary's legacy or share, the mortgagee would, semble, have priority over the equitable right of impounding {q) . Interest payable by trustees, on a breach of trust. If a trustee is guilty of any undue delay in investing or in transferring the fund, he will be answerable to the cestui que trust for interest during the period of his laches, — the rate being usually four (and not three) per oent.(?-). Also, the Court will charge more than four per cent, (that is to say, will charge five per oent.), — and will still charge that (s), — upon balances in the hancfe of a trustee, in the following cases, that is to say: (1) Where the trustee ought to have received more^ — as where he has improperly called in a mort- gage carrying five per cent. ; (2) Where he has actually received more than four per cent, {t); (3) Where he must be presumed to have received more, — ^as if he has traded with the money ; and (4) Where the trustee is guilty of direct breaches of trust or of gross misconduct (m) . The Court will also, in a proper case, charge a trus- tee {x), — ^and also an executor («/), — with Gompound in- terest ; and half-yearly rests will sometimes be directed in the account, — but not as a rule (z) . And when a trustee (rt) Bolton Y. Curm, 1896, 1 Ch. 541. (o) Titrner v. Watson. 1896, 1 Ch. 925. (p) Zee V. Binns, 1896, 2 Ch. 584. (?) Supra, p. 54. (>•) Owen V. Eiehmond, 1895, W. N. p. 29. (s) In re Davis, 1902, 2 Ch. 314. (t) Emmet V. Emmet, 17 Ch. Diy. 142. (m) Townendv. Townend, 1 Giff. 212. («) Barclay v. Andrew, 1899, 1 Ch. 674. [y) Emmet v. Emmet, supra. {%) Burdick v. Garrick, L. E. S Ch. App. 233. TRUSTEES S,TANDING IN A FIDUCIARY RELATION. 135 has himself traded with the trust money, the cestui que trust may (at his option) take, in lieu of the iive per cent, interest, the whole of the trade-profits (a), — Leaving all the trade-losses to remain with the trustee (&); but, of course, a trader who has borrowed the trust money from the trustee, is not subject to any such rule, — even although he knows that the money lent to him is trust money (c) . The debt created by a breach of trust being only a Remedies simple contract debt, the trustee's acceptance by deed of ^ugtee— for the trust not making it a specialty debt (d), — The remedy a breach of for it will now (under s. 8 of the Trustee Act, 1888) be (^g'^y^^*' barred after six years from the date of the breach, — or will be then (in effect) barred, — Scil., unless where the breach of trust is a fraudulent one; and a fraudulent trustee will not, now, be released (e), even if he go bank- rupt, and obtain his discharge under s. 30 of the Bank- ruptcy Act, 1883. The remedy against a trustee may also be barred by the (2) By , . , ,T • /j:\ 1 J. tu I, acquiescence; cestui que trust s acquiescence (j) ; but there can be no acquiescence without knowledge (g), — Scil., Because acquiescence is (or amounts to) an implied release, and even an express release (executed without full knowledge) would not be binding (h) . Also, the concurrence of the (3) By cestui que trust in a breach of trust is, of course, a full breach of discharge of the trustee from all liability therefor, to such trust. concurring person (and to all others subsequently claim- ing under him) (i), — Excepting that concurrence implies capacity, and persons under disability (as married women (fc), or infants (Z)) may still successfully proceed concurrence in (a) Jones v. Foxall, 16 Beav. 392. (b) Wiles V. Gresham, 1 Drew. 258 ; Deines v. Scott, i Euss. 195. (c) Stroud V. Gimjer, 2S Beav. 1 30. {t) Holland v. Holland, L. R. 4 Oh. App. 449. (e) Munns v. Sum, 35 Ch. Div. 266. (/) London Finanoial Association -v . Kelk, 26 Ch. Div. 107. [g) Jacques Cartier v. Montreal City Banh, 13 App. Ca. 111. (A) Walker v. Symmonds, 3 Swanst. 1, 463. (i) Bridger v. Deane, 42 Ch. Div. 9. {k) ParicesT. White, 11 Ves. 221. __ (I) Wilkinson v. Parry, 4 Russ. 276. 136 THE ORIGINALLY EXCLUSIVE JURISDICTION. against the trustee for the breach of trust, — unless they have themselves been actively participant therein (m) ; In which latter case, it would be fraudulent on their parts to seek relief. But, as regards married women, who had been actively participant in the breach, — Where they were entitled for their separate use and without power of anticipation (w), they sometimes proceeded, — and proceeded successfully, — against the trustee. It is true, that some of the judges demurred occasionally to that (o), — ^and occasionally gave the trustees liberty to retain their costs {e.g.) out of the married woman's income notwithstanding the restraint. But, in the general case, the trustee was, in effect, remedi- less against such a cestui que trust, — Until the Married Women's Property Act, 1893 (p) : Whereby it was en- acted (by s. 2), that a married woman's separate estate, although restrained, should be liable for such costs(g), — lSc^7., for the costs of litigation instituted by her (r); and not therefore also for her costs of defence (s), — or for her costs of appealing {t). And the Trustee Act, 1893(m), s. 45 (re-enacting the like provision contained in the Trustee Act, 1888, s. 6), has now provided, tliat when the breach of trust has been committed at the " instigation or request" (or with the "written consent") of the married woman (x), the Court may order her beneficial estate or interest to be impounded, — Scil., by way of remedy for the breach: (4) By A cestui que trust may also, by subsequent confirma- of breach 0? tion, prevent himself from taking proceedings against trust. his trustee for a breach of trust ; but the purported confirmation will not be binding on him, unless he had m) Sawyer v. Sawyer, 28 Ch. Div. 595. n) Bateman v. Faher, 1898, 1 Ch. 144. o) Ellis V. Johnson, 31 Oh. D. 532. p) 56 & 67 Vict. c. 63. q) Pawley v. Pawley, 1905, 1 Ch. 593. )•) In re Lumley, 1894, 3 Ch. 135. s) Eood-Barrs v. Cathcart, 1895, 1 Q. B. 873. t) Eood-Barrs v. Seriot, 1897, A. C. 177. ■ 56 & 57 Viot. 0. 53. Griffith V. Btighes, 1892, 3 Ch. 106. TRUSTEES STANDING IN A FIDUCIARY RELATION. 137 a full knowledge of the facts of the case {y), — A con- firmation being (in this respect) exactly like a releajse (0) . A trustee is entitled to have his accounts examined and Settlement of settled, — and at the cost of the trust estate (a) : That is to say, if the cestui que trust is satisfied, that nothing more is due to him, he ought (being sui juris) to settle the account, — For he is not to keep a Chancery suit hang- ing indefinitely over the head of the trustee: And upon ^®l.®ff®."?^^ the question, whether a trustee (including an executor) is * ' "^ entitled on the conclusion of his trust (or executorship) to demand a release under seal, or must be content with the common receipt as his acquittance, — the better opinion (and the practice also) is, to give him a release under seal (&); and, semhle, whenever any indemnity may law- fully be required, the discharge should be by release under seal, — the indemnity and the release being included in one and the same deed, of course. As a rule, settled accounts are not opened {i.e., taken ®"^^''fY^^ over again throughout, or in toto) ; but in an action for an *" suymg. account, — or which involves an account, — when the plea of settled account is put forward in defence (c), — The practice of the Court is, upon proof of one clear omission or insertion that is erroneous, to give liberty to the plain- tiff to surcharge the omission and to falsify the insertion, together with all other erroneous omissions and insertions: Which liberty is commonly called the " liberty to sur- charge and falsify" (d); and the errors need not be of a fraudulent (e), — but must be of a substantial (/), — charac- ter: But the account will be readily opened in toto, if the defendant (the party accountable) is in a fiduciary relation (g) . Under the Trustee Act, 1893 (56 & 57 Vict. c. 53), JlT/^^lf"*' r»ir At • • 1 1 •! - • • 1 • lo93, — tru3- ss. 2,0 — 41, — continuing the like provisions contained m tee's release under, on (y) Burrows v. Walk, 6 De G. M. & a. 254. (2) Walker t. Symmonds, supra. (a) Cooper y. Skinner, 1904, 1 Ch. 289. (*) Se Cater's Trusts, 25 Beav. 366. (c) Bunter v. Bowling, 1893, 1 Ch. 391. (d) Blai/rave v. Mouth (Mortgage for Bill of Costs), 2 K. & J. 509, 522. («) Williamson v. Barbour, 9 Ch. Div. 529. (/) Lambert y. Still, 1894, 1 Ch. 73. (}) Coleman v. Mellerah, 2 Mao. & G. 309. 138 THE ORIGINALLY EXCLUSIVE JUEISDICTION . appointment of new trus- tees. the Trustee Act, 1850 (h), and in the Trustee Extension Act, 1862 («■), — the Court may appoint a new trustee or new trustees, either in substitution for or in addition to any existing trustee or trustees, — whenever it is expedient to make such appointment, and it is inexpedient, difficult, or impracticable to 'do so without the aid of the Court. But, nota bene, as regards any breach of trust then already committed (or liability then already incurred), no such appointment is to operate further or otherwise (as a dis- charge to the retiring trustee) than the like appointment under an express power in the instrument of trust would have done. And it is to be here observed, Firstly, that a new trustee, as regards all (if any) breaches of trust which have happened or been committed before his appointment, is under the like duty to recover the outstanding damages therefor, as he would be under, if these damages were some original parcel of the trust property still left out- standing (fc), — only if the proceedings would be hopeless of any good result, the new trustee need not proceed at all (I) . And it is to be here observed, Secondly, as regards a trustee who has retired, although he will not, in general, be responsible for any breach of trust committed subse- quently to his retirement, still if it appear that the breach of trust was, in fact, contemplated at the time of his re- tirement, and that his retirement was the means adopted to facilitate its being committed, he will (or may) be held liable for that (m) . Provisions of the Convey- ancing Acts, 1881, 1882 and 1892 ; The occasions for having recourse to the Trustee Acts, 1850 and 1852, were latterly very much diminished by and in consequence of the Conveyancing' Act, 1881 (w), ss. 31 — 34, which provided for the appointment of new trustees [by the person in that behalf referred to in the Act], and for the vesting of the trust property in these new trustees jointly with any of the old (and continuing) trustees, — the appointor merely making for ■ this latter purpose a declaration that the property should so vest; and (h) 13 & 14 Vict. c. 60. (i) 1.5 & 16 Vict. 0. 55. (A) Hobday v. Peters, 28 Beav. 603. (I) In re Forest of Sean Coal Co., 10 Oh. D. 450. (m) In re Broaden, 38 Ch. D. 546 ; Heady. Gould, 1898, 2 Ch. 250. («) 44 & 46 Vict. 0. 41. TRUSTEES STANDING IN A FIDUCIARY RELATION. 139 the new appointment operated, in general, to release the retiring trustee or trustees; and these provisions of the Act of 1881 were retrospective. Also, under the Con- veyancing Act, 1882 (o), s. 5, as amended by the Con- veyancing Act, 1892 (p), 8. 6, on the appointment of new trustees, separate sets of trustees might have been appointed for separate properties held upon sepatate or distinct trusts (g) : and all these provisions (as well of And now of the Conveyancing" Act, 1881, as also of the Conveyancing 1893/^ " ' Acts, 1882 and 1892), although nominally repealed, are (in substance) continued, by the Trustee Act, 1893, ss. 10— 12(r). Also, apart altogether from legislation, the Court Removal of always had (and still has) an inherent jurisdiction, to g™eraUy. remove old trustees and to appoint new ones in their places (s) ; and the Court assumes (and also exercises) jurisdiction, where Ith© interests of the beneficiaries appear to require it, — and even in cases where no personal fault is attributable to the old trustees (t), — and even as against trustees who are executors (u), — Soil., Because' the interests of the trust are the matter of paramount regard with the Court. And, e.g., if a trustee becomes a bank- rupt, that is a ground for his removal (u) ; but it does not follow,, that the Court will, in fact, remove him on that ground, — the Court only doing it where the security of the estate may appear to require the removal {x) . And here it is important to observe, that, upon the death of the last survivor of two or more trustees, his legal personal representative may, — in general, but not invariably {y), — either accept (and continue to execute) (0) 45 & 46 Vict. xy. 39. ^ (jo) 55 & 56 Vict. c. 13. ' (q) In re Parker's Trusts, 1894, 1 Ch. 707. ()■) Wheelers. Se Rochow, 1896, 1 Ch. 316. (s) In re Wrightson, 1908, 1 Oh. 789. {t) In re Moss's Trusts, 37 Ch. Diy. 518. (m) In re Ratcliff, 1898, 2 Ch. 352. \v) 66 & 67 Vict. 0. 53, s. 25. \x) Bowen v. Phillips, 1897, 1 Ch. 174. [y) In re Orunden and Meux, 1909, 1 Ch. 690. 140 THE ORIGINALLY EXCLUSIVE JURISDICTION. the trust (z) or decline to do so (a), — Scil., until there is a new appointment of trustees (6). Trustee Act, 1893,— trus- tee's release under, on payment or transfer into Court. Under the Trustee Act, 1893, s. 42 (continuing" the like provisions contained in the Trustee Relief Acts, 1847, 1849 (c)), trustees and executors, or the mUjor part of them, may, — on affidavit, and without either action or other legal proceeding, — pay trust moneys into the Bank of England to the account of the Paymaster-General (Chancery Division) in the matter of the particular trust, • — and also transfer or deposit trust stocks and securities into or in the name of such Paymaster-General, a pro- ceeding which is, of course, only to 1)6 taken in a case of difficulty (d) : and a life assurance company also may (but only in the like case of difficulty) pay the policy moneys into Court (e). After such payment or transfer into Court (and to the extent thereof), the trustees are dis- charged of all control over the trust, and of all duties as trustees or executors (/); but they must give the cestuis que trustent notice of their having made the payment or transfer; and thereafter the Court ta"kes charge of the trust fund and invests it, — and upon petition (or, as the case may be, on summons) by any person claiming title thereto, the Court will (upon notice to the trustees or executors) make an order for the payment out of the fund, — first deciding any question of law or of fact inci- dental to such payment out, — unless (which rarely hap- pens) the Court finds that the difficulties are such as to justify the institution of an action for the determination of the question involved (g) . Public Trustee, — constitution of; By the Public Trustee Act, 1907 (6 Edw. VII. c. 55), — an Act which came into operation on the 1st January, {z) In re TTaidanis, 1908, 1 Ch. 123. (a) Leffff T. MacTcrell, 2 De G. P. & J. 551 ; Robson v. Flight, i De G. J. & S. 608. {b) In re Routledge, 1909, 1 Ch. 280. (e) 10 & 11 Vict. c. 96 ; 12 & 13 Vict. c. 74. [d) Re Hood, 1896, 1 Ch. 270. («) 69 & 60 Vict. 0. 8. (/) Tie Coe, 4 K. & J. 199. (^) Re Bloye, 1 Mac. & G. 488. TKUSTEES STANDING IN A FIDUCIARY RELATION. 141 1908, — a public trustee has been established (s.l), — and he is a corporation; and (by s. 2) such trustee may (on being requested to do so) accept the administration of estates of small value (Scil., estates not exceeding, at the date of the application (h), £1,000), — and may accept also the administration of the property of convicted felons. But (save as aforesaid) he is not to accept the administra- tion of any trust which involves the carrying on of any business, — nor the.administration of an insolvent estate, — nor the execution of the trusts of any " Deed of Arrange- ment," — nor the execution of any religious or charitable trust. And when he accepts any trust, he may do so, and varieties either as a custodian trustee merely or as an ordinary trustee. of. Where the public trustee has been appointed a trustee, PuMc and his appointment has been only as a custodian trustee, ^g is a cus- — Then (by 6. 4) all the trust property is to be transferred todian trustee, to and vested in him, as if he were the sole trustee; and relatively to ' all the securities and documents of title belonging to the ^J?^,'^'™/™^'"*' trust or relating to the trust property are also to be delivered over into his sole custody; and the private trustees of the deed or will (and who in the Act are called the "managing trustees") continue, in that case, to execute the trusts,- — the custodian trustee concurring only with them (where and so far as his concurrence is necessary), and affording them access to (and reasonable inspection of) the securities and documents of title. Where the public trustee has been appointed a trustee. Public and he has been appointed an ordinary trustee, — Scil., by t^sanOTdi™ the deed or will creating the trust, — he is like any other naiytrustee,— ordinary trustee, — excepting that he may exercise limited ^°^^ ™ ° ' judicial powers subject to appeal (i) ; also, he may be either the sole trustee or one of several co-trustees; and on any appointment of new ordinary trustees, the public trustee may be appointed either as one of the new trustees (k), or as the sole new trustee (s. 5, sub-s. 1 (I)). Also, where (h) In re Severeux, Toovey v. P. T., 1911, July 29, The Times Report. (i) In re Oddy. 1911, 1 Ch. 632. (k) In re Xensit, 1908, W. N. 23.'i. {[] In re Leslie's Ilaisep Estates, 1911, 1 Ch. 611. 142 THE ORIGINALLY EXCLUSIVE JURISDICTION. and retirement the publio Itruste© has been appointed (either originally or ^the other subsequently) a co-trustee with others, these others may (if they choose to do so) afterwards retire, leaving the public trustee to remain the sole trustee (s. 5, sub-s. 2). The public trustee (when appointed by will) may obtain a grant of probate or of administration (s. 6, sub-s. 1); and an executor or administrator who has already obtained probate or administration may (subject to observing cer- tain formalities) transfer to the public trustee the whole future administration of the estate, — and (in that way) escape from all liability in respect of the further admink- tration "(s. 6, sub-s. 2). But, nota 'bene, the publio trustee, being a corporation, cannot be (admitted to the copyhold hereditaments (if ainy) which are subject to the trust (m). (m) Scriv. on Copyholds, 7th ed., 1896, on p. 137. 143 CHAPTEE VII. DONATIONES MORTIS CAUSA. A donatio mortis eausd is a gift, made "in the expeeta- (i) Must be tion of death," and on condition to be absolute only on ^^^^ ™. the death (a) ; and if the donor recovers from the illness death T '°" ° (or, while still living, resumes the possession), the gift (2) On con- will not take effect (h) . '^"i™ *° ^\ ^ / come absolute on donor*s Delivery is essential to the validity of a donatio mortis fnf*i 'j^*"* causa; — and if there be no delivery, the gift (although is essential, intended) is ineffectual (c), — and will not be aided, in equity, in favour of a volunteer (d) : But if only there be delivery (e), the gift will be good, — although the writing (if any) which accompanies it should not be attested at all (/), and although there should be no writing at all (g) ; and there may be annexed to the gift an express condition, — as (e.g.) that the donee shall pay the funeral expenses of the donor (h) . But, nota bene, an antecedent delivery to the donee in the character of bailee will not suffice, unless the quality of the possession be changed before th& death ii) . Delivery being essential, it follows, that, without de- what is a livery, neither a testamentary gift (which is ineffectual deUvCTv! as such (/<:)), nor a gift inter vivos (which is ineffectual as (^n to donee such), will be supported as a donatio mortis causa {I), or donee's agent. {a) Duffi-U V. Elwes, 1 Bligh, N. S. 530. (*) Edwards v. Jones, 1 My. & Or. 233. [c) Rigden v. rallier, 2 Ves. Sr. 25S. [d) Morgnn v. Malleson, L. R. 10 Eq. 475. [e) Ei/pin v. Satlei/, 1892, 1 Q. B. 682. (/) Moore v. Jjartm, 4 Be G. & Sm. 519. (g) Tate v. Gilbert, 2 Ves. Jr. 120. (h) Hills V. Sills, S Mee. & W. 401. (i) Cain V. Moon, 1896, 2 Q. B. 283. [k] Treasury Solieitor v. Lewis, 190IJ, 2 Ch. 812. (Z) Edwards v. Jones, 1 My. &Cr. 226. 144 THE OEIGINALLY EXCLUSIVE JURISDICTION. Also, delivery to an agent for the donor will amount to nothing (m), — for an effective delivery naust be to the (b) Delivery donee, or to the donee's agent (n) . And where the chattel means^o/^ itself is not delivered, the delivery of a mere ineffective obtaining the symbol of it is not sufficient (o), secus, the delivery of property. some effective means of obtaining it, — for example, the key of a box (p), or (in the case of a chose in action) the savings bank book {q), or other essential document (r). Examples of Where the key of a box, conta-ining some bonds labelled dXSy : " The first five of these bonds belong to and are H. D.'s (a) Deliveiy property," was given into the custody of H. D. (who to donor's -^ras the tcstator's housekeeper), — the Court was of opinion that the testator gave the key to H . D . in her character of housekeeper only, and for the purpose of talcing care (b) Delivery to qj {f jq^ jiig benefit Only (s) . And similarly, where A. coupled with ' (being in his last illness) ordered a box containing wear- retention of ing apparel to be carried to the defendant's house, to be owners ip. delivered to the defendant; and on the next day, the defendant brought back the key of the box to A. (who desired it to be taken back, saying he should want a pair of breeches out of the box), — the Court held this also not to be a good donatio mortis causa {t) . What may, There cannot, of course, be any danatio mortis causa of and what may ^gal estate; and there could not, it seems, be a good dona- ! donatio^^ tio mortis caus.a of South Sea annuities (m), — nor can there be of Government stock {x), railway stock {y), or building society shares {z) . And as regards the donor's own cheque upon his bankers, it appears, that if the cheque is paid before the death (a), — or is presented and (the account being in credit) is acknowledged for payment (although (m) Farquharson v. Caw, 2 Coll. C. C. 367. («) Shenstone v. Broe/i, 36 Ch. Div. 541. (o) Snellgrove v. Baily, 3 Atk. 214. {p) Jones V. Selby, Preo. in Ch. 300. {q) Bartholomew v. Menzies, 1902, 1 Ch. 680. {r) Moore v. Barton, 4 De G. & Sm. 519. (s) Trimmer v. Banly, 25 L. J. Oh. 424. \t) SawUns v. Blewitt, 2 Esp. 663. (m) Waid-y. Turner, 2 Ves. Sr. 431. \x) Andreu:s v. Andrews, 1902, 2 Ch. 394. ly) Moore v. Moore, L. R. 18 Sq. 474. (z) Bartholomew v. Mcnzies, iupra. (a) Bolts V. Fearcp, L. K. 5 Ch. Div. 730. mortts eaiisii. DONATIONES MORTIS CAUSA. 145 not actually paid) before the death (6), — There is a good donatio mortis cceuSd of it: Secus, if the account is over- drawn at the date of the presentation of the cheque, — and there is, consequently, no acknowledgment of it for payment {t), — because, nota bene,, a cheque is not; of , itself, an appropriation (as has been already stated on p. 49, swpra): On the other hand, there may be a good donatio mortis, causa of a bond {d), or of a mortgage debt (e), or of cash on deposit at ^ bank(/,). Also, the delivery of a promissory note payable to order, though not en- dorsed {g), — or of a third party's cheque payable to order, though not endorsed Qi), — or of a deposit note (i), although with form of cheque endorsed thereon (Jo), — will constitute a good donatio mortis causa. And where a mortgage deed (with the (accompanying bond, if any) is given up by the dying mortgagee, to the mortgagor, and then the mortgagee dies, — That is a gift (or can- cellation) of the debt (Z) : But where a promissory note has been lost, and the payee directs it to be destroyed when found, and then dies, — that will not, — in the general case (m), although sometimes it will (w), — amount to a gift thereof. A donatio mortis causa differs from a legacy in these How a donatio respects : — mortis causd /INT en / -I ■> \ s- 11*1.1 differs from a (1) it takes eiiect \suo modo) from the date ,of the legacy, and delivery, — and therefore it need not be proved ^M\Ant^^ as a testamentary act; and vivos. (2) It requires no assent on the part of the executor (or administrator) to perfect the title of the donee. (i) Bromley v. Brunton, L. R. 6 Bq. 275. \c) Beaumont v. Ewbank, 1902, 1 Ch. 889. [d) Snellgrove v. Baily, 3 Atk. 2H. («) Buffieli T. Slwes, 1 Bligh, N. S. 497. (/) Andrews v. Andrews, 1902, 2 Ch. 394. \g) Vealv. Veal, 27 Beav. 303. (h) Clement v. Cheeseman, 27 Ch. Div. 631. (i) Griffin v. Griffin, 1899, 1 Ch. 408. (k) Duffin V. Duffin, 44 Ch. Div. 76. (/) Surst V. Beach, 5 Madd. 351. ()») Francis v. Bruce, 44 Ch. Div. 627. (m) Edwards v. Walters, 1896, 2 Ch. 157. 146 THE ORIGINALLY EXCLUSIVE JURISDICTION. Bo-wit A donatio mortis oausq, reeembles a legacy in these resembles a reepslots : — Sera from a (1) It is revocable during the donor's lifetime (o); ^t inter vivos. (2) It may be made (even at law) to the donor'-a , wife(j9); (3) It is liable to the debts of the donor on a de- ficiency of assets (g); (4) It is subjeot to legacy duty, in all cases where a legacy would be so subject; and (5) It used to be subjeot to " account stamp duty " (r), — and is now subject (in effect) to estate duty(s): Which latter duty used to be considered a "testa- mentary expense " (<),-^and so was payable out of the general residuary estate (m) ; but, semble, it is not now so considered, — nor so paid (x) . Also, as jegards settle- ment estate duty, that is not a "testamentary ex- pense " {y), — and therefore will be payable out of the donatio mortis causa itself, — at least, in the general case {z), but not invariably so (a). And as regards pro- perty which is subject to a general power of appointment, if the testatrix does not exercise the power, the estate- duty on that is not a " testamentary expense " of hers (&). o) Smith V. Casen, 1 P. W. 406. p) Tate T, Leithead, Kay, 658. q) Smith v. Casen, supra. 'r) Thomas v. Foster, 1897, 1 Ch. 484. s) Wade v. Wade, 1898, 2 Ch. 276. t) Yeo V. Clemow, 1900, 2 Ch. 182. u] In re Eadley, 1909, 1 Ch. 20. x) In re Eudson, 1911, 1 Ch. 206. 'y) Travers v. Kelly, 1904, 1 Ch. 363. z) Wilson V. Maryon- Wilson, 1900, 1 Ch. 565. Sharpe T. Eodgson, 1904, 2 Ch. 345. h) Porte V. Williams, 1911, 1 Ch. 188. 147 CHAPTEE VIII. LEGACIES. I'N the case of a general pecuniary legacy, the legatee may Assent to, or sue the executors for it, after the executors have assented f^/'Soy ""^ to it (a) ; and where the legacy is of a debt, and the exe- or share of cutor refuses to sue the debtor for it, the legatee may (on gfect'of"' account of the special circumstances) himself sue for it (b), ■ — the executor being (in that case) added as a co-defen- dant. Also, in the case of a specific legacy, after the exe- cutor has assented thereto, the property vests immediately in the legatee, — Who may thereafter sue for it (c) : And, if the specific bequest be of leaseholds, the assent of the executor is sufficient, without any express assignment (d) . And if the executor (with the consent of the legatee) ap- propriates any specific asset in payment or satisfaction of a general pecuniary legacy, such specific asset thereupon becomes the property of the legatee (e), — with full right to all the net profits from the death (/) : There may also be an effective appropriation to answer a residuary be- quest (^r), — or to answer a settled share of residue (A); and, even in the case of a contingent legacy, there may be such an appropriation, — but not so as to either exempt the residuary estate from its liability for the legacy (^), or to withdraw the appropriated assets from their liability for the debts (/c) . (ff) DeeJcs v. Strutt, 5 T. R. 690. (b) Beningjield v. Baxter, 12 App. Ca. 167. (c) Doe V. Gay, 3 East, 120. {d) Thome v. Thome, 1893, 3 Ch. 196. (e) Dowsttt V. Culver, 1892, 1 Ch. 210. (/) In re West, West v. Roberts, 1909, 2 Ch. 180. {g) Morgan v. Sichardson, 1896, 1 Ch. 512. (A) Nickels \. Nickels, 1898, 1 Ch. 630; Watson v. Watson, 1901, I Ch. 681. (j) Fosters. Metcalfe, 1903, 2 Ch. 226; In re Evans and Bethell, 1910, 2 Ch. 438. (A) Smith T. Day, 2 Mee. & W. 684 ; Noile v. Brett, 2i Beav. 499. l2 148 THE OSIGINALLY EXCLUSIVE JURISDICTION. Biatinctions among the three kinds of legacies. Legacies being either general, specific, or demonstrative, the chief points of difference among them are the fol- lowing: — (1) If, a,fter payment of the debts, there is a deficiency of assets for payment of all the legacies in full, a general legacy will abate, but a specific legacy will not; (2) If the chattel or fund which is specifically be- queathed fails (by alienation or otherwise) during the tes- tator's lifetime, the legatee will not be entitled to any com- pensation out of the general assets (I), — Soil., because nothing but the specific thing itself was given to the legatee (m), — the animiis adimandi not being considered at all (n) . But if the specific thing still exists, although notionally altered, the specific legacy of it will continue good (o) . (3) A demonstrative legacy is so far of the nature of a specific legacy, that it will not abate with the general legacies,; — until the fund out of which it is payable is ex- hausted ; and it is so far of the nature of a general legacy, that it will not be liable to ademption, by the alienation of the specific fund primarily designed for its payment (p) . Pecuniary legatee and residuary legatee — dis- tinguished. A pecuniary legatee is entitled (and, a fortiori, a spe- cific or demonstrative legatee is entitled) to be paid his legacy in priority to the residuary legatee (q) . But a legacy, apparently residuary, may not (for this purpose) be truly residuary; and, for example, where a sum of £4,000 was given to A. for life, with remainder as to £1,000 to X., and as to £1,000 to Y., and as to the "resi- due" to Z., — and the £4,000 diminished, — X., Y., and Z. were all made to abate pari passu (r) . And similarly, where in the like case the "surplus" was given (s). {J) In re Slater, 1907, 1 Oh. 665. (m) In re Oittins, 1909, 1 Ch. 345'. («) Frewen v. Frewen, L. R. 10 Ch. App. 610. (o) In re Jameson, 1908, 1 Ch. 111. {p) Vickers v. Found, 6 H. L. Cas, 885. (j) See p. 147, supra. {r) Baker v. Farmer, L. R. 4 Eq. 382 ; and see Smith v. Margetts, 190(> W. N. 44. (s) Byose v. Dyose, 1 P. Wms. 304. LEGACIES. 149 General pecuniary legatees are inter se payable pari Special passu; but the testator may have given to some of them! ^^^'®°°* a priority over the others, — In which latter case (if the legacies, estate is or proves insufficient), those having priority will be paid first, — and will not abate with the others (i); and legacies given in lieu of dower have, in general, priority (m), — Scil., where (and only where) the testator, at the date of his decease, had lands out of which his widow was and remained dowable notwithstanding the will (x) . But a mere direction that any particular legacy is to be paid immediately on the death of the testator («/), — or is to be paid first, and the othera afterwards {z), — will not prevent it from abating (even in the case of n, wife), if it is otherwise subject to abatement; and a legacy given to a creditor in satisfaction of his debt is not now held to be entitled to any priority (a) . Annuities given by will are merely legacies in annuity- Ammities,— form, and where the will directs the purchase of a Govern- or direction ment annuity for A. for her life, A. is entitled, in general, to purchase, to take the purchase-money instead of the annuity (fo), — an option,— so that if she survives the testator, and afterwards (and, difference, before receiving the purchase-price) she dies, her legal personal representative will be entitled to receive that price (c) : But if the annuity is given with a restraint on anticipation, and (in case she attempts to anticipate it) it is given over, that will exclude her from taking the pur- chase-price instead {d) . Usually, the will merely gives the annuity generally, — Annuitant, — and, in that case, the annuitant is merely entitled to have offaocor^ig the annuity secured, — Scil., by the appropriation of a as the annuity sufficient part of the estate to answer the annuity (e); m^f'ofis'*' charged upon (t) Wells v. Borwiek, 17 Ch. Div. 798. («) Stahhehmidt v. Lett, 1 Sm. & G. 421. [x] Greenwood v. Greenwood, 1892, 2 Ch. 295. [y) Oppen/ieimv. Sehweder, 1891, 3 Ch. 44. (z) Beeston v. Booth, i Madd. 161. (a) Wedmore v. Wedmore, 1907, 2 Ch. 277. (b) Stokes T. Cliech, 28 Beav. 620. \e) Bailey v. Bishop, 9 Ves. 6 ; Robbins v. legge, 1907, 2 Ch. 8, [d) Woodmeston v. Walker, 2 Rues. & M. 197. (e) Scott V. Leak, 42 Ch. D. 570 ; Sarbin v. Masterman, 1896, 1 Ch. 351. 150 THE ORIGINALLY EXCLUSIVE JURISDICTION. the real estate, with ,a trust or direction (or with a power only) to sub- stitute a Government annuity for it. and she is not entitled (nor would her legal personal repre- sentative Tse entitled) to receive the purchase-prioe for the annuity {g) . Oocasionally, however, the will charges the annuity on the real estate of the testator: In which latter case, the will sometimes adds a direction to purchase a. Government annuity (in satisfaction of the bequest, and so as to release the real estate from the charge (A)); and sometimes the will merely gives the trustees a power to pur- chase such annuity in the event of their desiring (on a sale of the real estate) to release the real estaite from thie charge (i), — And it appears, that, in the former class of cases, the annuitant is entitled to the pm'chase-prioe of the annuity; but that, in the latter class of cases, the annuitant is entitled to the purchase-price, only in case she survives the completion of the sale, and not other- wise (it) . Beal ajid personal relative lia- bilities of, for payment of annuity. Annuity, charged on " rents and profits" (or on "income"), where a deficiency. Where an annuity is charged upon land, the land is sometimes the primary debtor, — and may even be the eodclusive debtor; but far more usually, the land is only auxiliary to the personal estate, and the personal estate is the primary debtor (l). Where the annuity is charged upon the " rents and profits " of the land, the charge will (usually) amount to a charge upon the inheritance. itself (or corpus) of the land {m); more ordinarily, how- ever, the annuity is (on the construction of the will) a charge against the annual rents and profits only, — and in that case, the subsequently accruing rents and profits will not, in general, be liable (w), — although they may be liable (o), — to make up the deficiency of any previous year: But where an annuity is given, and then, " subject thereto," the real estate is given, the annuity is a charge on the corpus (p), and not on the annual rents and profits only. {g) Tucker v. Tucker, 1893, 2 Ch. 323. (A) Palmer v. Craufurd, 3 Sw. 482. (i) Power v. Hayne, L. R. 8 Eq. 262. (k) Pitman y. Holborrou; 1891, 1 Ch. 707. (I) Trenchard v. Trenehard, 1905, 1 Ch. 82. (m) Baker v. Baker, 6 H. L. Ca. 616. (n) Boden v. Boden, 1907, 1 Ch. 132. (o) In re Howarth, 1909, 1 Ch. 485. Ip) In re Walking Settlement, 1911, 1 Ch. 1. LEGACIES . 151 An annuity given to A. simply is for the life of A. Annuities,— only, and an annuity given to A. expressly for his life, ^^i,°e„^'*^' and afterwards to B. simply, is an annuity to A, for his perpetual, life, and then to B. for his life(g); but an annuity may, of course, be so given as to be a perpetual (or fee simple) annuity (r). In deciding on all questions relative to legacies, where Construction not charged on land, equity follows in general the rules oflsgaoies. of the civil law (as recognised and acted on in the ,old eOclesiastical Courts); but, as regards legacies charged on land, equity follows the rules of the old common law (which in all cases favoured the heir): Therefore, thei (i) As to Courts favour the vesting of legacies not charged on ^^^ ^' land, — whereby they become transmissible to the legal personal representatives of the legatee (s) ; but a legacy charged on land, even although vested, sinks, in general, for the benefit of the inheritance, in case the legatee dies before the period of payment (t). Also, legacies charged (2) As to on land carry interest as from the date of the testator's "'t^'^^^'- death (u) ; but general legacies not so charged carry interest, in general, as from one year after the testator's death (x), — and that is so, even where the legacy is in lieu of the widow's dower (or free-bench (y)), or where it is given on a series of limitations_(3) . But a general legacy given in satisfaction of a debt carries interest as from the death (a), — as does also a general legacy to an infant child not otherwise provided for (b), — Scil., being a legacy given to the infant on attain- ing twenty-one years of age but not any greater age (o) : Also, the legacy of a fund which is "segregated" from the rest of the estate carries interest as from the testa- (g) Mansergh v. Campbell, 25 Beav. 544. (r) Mansergh r. Campbell, supra. (*) Harrison v. Foreman, 5 Ves. 207. [t] Benty t. Wrey, 21 Ch. D. 332. («) Maxwell V. Weitenhall, 2 P. Wms. 26. [x) Child Y. Elsviorth, 2 De G. M. & G. 679. (y) Bignold v. Bignold, 46 Ch. D. 496. (a) Whittaker v. Whiltaker, 21 Ch. Div. 657. (a) Clark v. Seicell, 3 Atk. 99. [b] Woodroffev. Moody, 1895, 1 Ch. 101. \c) JLbrahams-v. Abrahams, 1911, 1 Ch. 108. 162 THE ORIGINALLY EXCLUSIVE JURISDICTION. Arrears of interest, — what recover- able. Settled residue, — interest on, from the death. True residue, what is, and how ascertained ? tor's death (d) . Also, if the legacy is of an annuity, it accrues from the d6ath(e), — at least in general(/); and all specific legacies (g), and bequests of specific portions of a specific fund (h), carry interest as from the death. And as regards the rate of interest, that is four (and not three) per cent, in all cases {i). Where the property of the testatrix out of which general legacies are payable is reversionary, and the executors (instead of selling the reversion) wait till the reversion 'falls in, the legatee will, in general, be en- titled (fc), — as will also any mortgagee of the legacy (Z), — not merely to six years' arrears, but to all the arrears of interest from one year after the death of the testatrix. But when the legacy is payable only out of some rever- sionary fund, — and is not receivable until that reversion falls into possession, — In such a case, the interest on the legacy only commences to accrue due when the reversion falls in (to) . But no interest at all is, as a general rule, given on the arrears of an annuity {n) . Where the legacy is of the residuary personal estate, and it is settled on A. for life, with remainder over, — It appears, that the tenant for life is entitled to interest, the interest being calculated from the death, — and not (as in the case ,of a pecuniary legacy so settled) from one year after the death, — on " the portion of the residue which is not required for the payment of the debts and funeral and testamentary expenses and legacies" (o): That is to say, if £x (portion of the capital), with interest thereon at four per cent, for one year from the testa- tor's death, will be sufficient to meet all the debts and funeral and testamentary expenses and all the legacies, (d) Clemens v. Pcarsall, 1894, 1 Ch. 665. (e) Gibson v. Soft, 7 Ves. 89. (/) Bignold v. Bignold, supra. [g) Barrington v. Tristram, 6 Ves. 345. (h) Mullins v. Smith, 1 Dr. & Sm. 210. (i) IVood V. Bryant, 2 Atk. 523. {/c) Blackford v. Woraley, 27 Ch. Biv. 676. {!) Smith V. Hill, 9 Ch. D. 143. (m) Earle v. Bellingham, 24 Beav. 448. in) Blogg v. Johnson, L. R. 2 Ch. App. 225. (o) Allhusm V. Whittell, L. E. 4 Eq. 295. LEGACIES. 163 then the " true residue" at the death is the whole estate lees £x; and the itenant for life (in respect of his title to, the income) is entitled to the income of the whole estate less only the £x. Where a testator gives his residuary estate equally Hotchpot among his children /subiect or not subiect to a life interest clause,— effect in his widow), — and directs that, for the purpose of pro- interest, ducing equality, -any sums which he shall have advanced to any child shall be brought into hotchpot and accounted for as part of his (the child's) share, — In such a case, in- terest at the rate of four per cent, per annum is payable on the amount of the advances, the interest being com- puted as from the period when the estate is to be divided (being usually the date of the testator's widow's death (p)). Where a man gives a legacy (or a share of residue) to Legacy to his wife, subject to her maintaining the children, — That totr'ust^or''*'' is a trust, and the Court enforces the due execution of the condition to trust {q) : That is to say, if the maintenance of the ^uiren. children is taken from the mother (on account of, say, her immoral life), the Court will give her part (and a sufficient part) of the legacy, and will keep (or apply) only the rest for the children: But while the children are with their mother, they shall have nothing, — save only an account (r) . Where there is a legacy of shares, and there is an accre- Accretion to tion thereto, — either by- the payment of a bonus or ^^aoy,— otherwise, — The question, whether such accretion belongs as capital to the estate of the testator, or to the legatee of the shares; and the further question (where the accretion belongs to the legatee, and the legacy is given to one for life, with remainder to another), whether the accretion belongs wholly to the legatee for life as income, or is to be treated as capital added to the legacy, — These questions have been answered as follows: — Firstly, the accretion, whether it if declared before the testator's death, will form part of |,1ththe°°* legacy. (p) MiddUton v. Moore, 1897, 2 Ch. 169 ; and (for an intestacy) Ford v. Ford, 1902, 2 Ch. 605. (j) In re G. (Infanta), 1899, l.Ch. 719. [r) Costahadie v. Costahadie, 6 Ha. 410. 154 THE ORIGINALLY EXCLUSIVE JUEISDICTION . And whea it is to be regarded as income or as capital. his general estate (s), but if declared alter the death, will go to the legatee (t); but where the accretion accrues de die in diem, an apportionment will be made, if part of the time during which the accrual has proceeded was in the life of the testator, and the residue of such time has been after his death (u) : All which is in accordance, semble, with the Apportionment Act, 1870 {x), — liabilities incident to rights being also within that Act(y) . And, Secondly, where (and so far as) the accretion goes to the legatee, then (as between the tenant for life and the remainderman) a bonus declared out of capital will be capital (z), and a bonus declared out of income (even accumulated income) will be income (a), — Excepting that, if the company has the power of declaring the bonus to be either capital or income, the company's decision (validly arrived at (6)) determines the question as between the tenant for life and the remainderman (c) . But although a dividend, if paid in cash, will belong wholly to the tenant for life as income, — yet, if it is paid as to part in cash, and as to the other part by an issue of new shares, the tenant for life will not, in general, get the new shares as income (d) ; and the liabilities will be similarly distributed as between the tenant for life and the remain- derman (e) . Apportion- ment, — none, where stocks or shares are sold cum div. Where stocks or shares are held upon trust for A. for life, with remainder upon trust for (and to transfer the same to) B., — and A. dies while a dividend is accruing; and the stocks or shares (instead of being transferred) are sold cum div. {i.e., with the accrtiing dividend included), and thereby a larger price is obtained for the stocks or shares, — A.'s estate is not entitled to receive any part of that price in respect of the apportioned dividend accrued («) Zock T. VenabUs, 27 Beav. 598. (*) Macleinley v. Bates, 31 Beav. 280. (!() Constable v. Constable, 11 Ch. Div. 861. (») 33 & 34 Vict. C: 35 ; In re Cox's Trust, 9 Oh. Div. 159. Ij/) Rochester {Bp.) v. Le Fanu, 1906, 2 Gh. 613. (2) Sprouh V. Bouch, 12 App. Ca. 385. (a) Armitage v. Garnett, 1893, 3 Ch. 337. \b) TFMtw'hamr. Pierey, 1907, 1 Ch. 289. \c) In re Burton's Tnist, L. E,. 5 Eq. 238. (d) Lovelace v. Anson, 1907, 2 Ch.*424. (e) In re Poyzer, Zandon v. Foyzer, 1910, 2 Ch. 444. LEGACIES. 155 before A.'s death (/), — Scil., in the absence of special circumstances (g) . When a legacy is given to a child contingently on his infant's main - or her attaining the age of twenty-one years, the income interest on ° accruing on the investments representing the legacy is, legacy, by the Conveyancing Act, 1881, s. 43, available for the interim maintenance of the child during the contin- gency (h), — That is to say, where such interest or income goes with the corpus or capital, assuming the contingency to happen (^), and not othervjrise (fc); and any accumula- tions (unapplied) of such income will also go to the con- tingent legatee on the contingency happening (I), — but only on its happening (w), — And all these rules apply also where the legacy is payable out of a mixed fund (w) . Where a legacy (whether in the form of a pecuniary Legacies given legacy (o) or of an annuity {p)) is given to A. B., subject 'oSo^- to the condition that he shall not dispute the will, or shall when the not marry a particular person, or the like, the legacy is '^^°^Jn good, the condition being regarded as in terrorem only; only and and similarly, if the condition is otherwise utterly unrea- ^fu^'t? sonable (q). But if the legacy be given over to C. D., in case the primary legatee A. B. disputes the will, — or otherwise goes contrary to the specified condition, — then the gift over is good (r), — even although A. B. should not know of the condition until it is too late (s) . And where a legacy or annuity is given to A. B., and (in case he marries with the consent of the trustees of the will) a further legacy or annuity (t), or an alternative larger legacy (m), the condition is good, and A. B. (if he fail (/) Fremm v. Whitbread, L. R. 1 Eq. 266. Q) BulheUy v. Stephens, 1896, 2 Ch. 241. (A) Holford V. Solford, 1894, 3 Ch. 30. (i) Clements v. Pearsall, 1894, 1 Ch. 665. (A) Shaw V. Cunliffe, 4 Bro. C. C. 144. (I) Seott V. Seoit, 1902, 1 Ch. 918. (m) Bowlby v. Bowlby, 1904, 2 Ch. 685. («) Smart y. Tayhr, 1901, 2 Ch. 134. (o) Fowell V. Morgan, 2 Vern. 90. \p) LoydT. Spillet, 3 P. Wms. 344. [q) Rhodes v. Muswell Sill, 29 Beav. 661. [r] Cleamer v. Spurling, 2 P. Wms. 526. (s) In re Hodge's Legacy, L. R. 16 Eq. 29. (4 Hampton v. Nourse, 1899, 1 Ch. 63. iu) Gillett V. Wray, 1 P. Wms. 284. 156 THE ORIGINALLY EXCLtTSirE JDRISDICTION . Conditions subseqtient,— non-compli- ance with, effect of, — also, where the condition ■becomes im- possible,-^ effect. to comply with the condition) shall not have the further legacy or annuity or the increased legacy. But the Court will not suffer any abuse of such conditions, — nor (e.g.) may the trustees dishonestly or fraudulently refuse their consent, where their consent is the condition (x) ; and where the consent is once fairly given, it may not after- wards be withdrawn (y) . Where a legacy (given subject to a condition subse- quent) is settled on the legatee for life with remainder to her children, and the mother forfeits the legacy (by, e.g., marrying without a due compliance with the condition), — The forfeiture involves also, — in the general case (z), but not invariably (a), — a, forfeiture of the remainder to the children. And similarly, in the case of a devise (6). But a condition subsequent, which becomes impossible in part, is discharged in whole (c) ; and where the impossi- bility arises through the act of the testator himself, the condition (whether precedent or subsequent) is discharged, and as well in the case of a devise as in the case of a bequest (d) . (x) Clarke v. Parker, 19 Ves. I. (y) Ingall-r. Brown, 1904, 1 Oh. 120. z) Whiting v. Be Rutzen, 190.5, 1 Oh. 96. ») In re Joseph, 1908, 2 Ch. 507. h) JJavis V. Angell, 4 De G-. F. & J. 524. c) Peyton t. Bury, 2 P. Wms. 625. 'd) Ooolce-r. Turner, 15 Mee. & W. 727. 15 CHAPTER IX. CONVERSION. Money (by deed or will) directed to be laid out in the purchase of land, fl,nd land (by deed or will) directed to be sold and turned into money, are respectively considered (in equity) as being already converted, — by force of the direction simply and before they are converted in fact. In considering this doctrine of conversion, we have to inquire, — (1) What words are sufficient for the Oanver- sion; (2) From what time the conversion takes place; (3) The general pfiect of the conversion; and (4) The result of a failure (total or partial) of the purposes for which the conversion was directed. (1) The Words sufficient for the Conversion. — The Th,e direotioi direction to convert must be imperative, — ^^and not merely miJ^tYe^im- optional. And, therefore, where A. gave £5,000 to B., in perative, trust to lay it out in the purchase of lands, or else to put ,j, j,^ it out on good securities, for the separate use of hiisi daughter H., — and A. died in 1729, and H. died (without issue) in 1731, and her husband (as administrator) claimed the money as against the heir, — The money was decreed to the husband-administrator (a) . The direction or (2) im- may, however, be impliedly imperative, — and will be so, v^^^> «-y-,. when {e.g.) the trusts declared of the money are only tionsare adapted ito land (&); and a direction to convert on request ^^^j^^°^^^ is (in the general case) imperative (c), — but not if it be vice vend. on joint request {d). (a) Curling v. May, 3 Atk. 255. (b) Earlom v. Saunders, Amb. 241. (o) Re Tweedie and Miles, 27 Oh. D. 315. {d) Re Gaylofs Settlement, 9 Ha. 596. 158 THE OKIGINALLY EXCLUSIVE JUB.ISDICTION . A mere 'p0ww to convert is, of course, not impera- tive (e), — wherefore only an actual conversion will, in such a case, be regarded (/) ; also where the power or direction to convert is for any reason void {g) or has ceased {h), there will be no conversion in equity, — even if there has been a conversion in fact. Tnne from which oon- ■vsrsion takes place. Rule inapplic- able, when conversion is not the object. In the case of difference according as sale before or after death of mortgagor.' (2) Tha Time from which the Conversion^ takes place. — Subject to the g-eneral principle, that the terms of each particular instrument must guide in the construction of it {i), — The rule is, — (1) That, in regard to a will, the conversion takes place as from the death of the testator; and (2) That, in regard to a deed, the conversion takes place from the date of execution {h), notwithstanding that the trust for corwersion (contained in the desd) is not to arise until after the settlor's death (l). And note, that any delay in the actual conversion will not afiect the respective rights which arise from the conversion in equity (or notional conversion (m)). But it is, of course, necessary in all cases, — and more especially in the ease of a deed, — to be quite sure, that there is an intention to convert; and in the absence of such an intention, there will be no notional conversion at all. For example, where A. borrowed £300 from B. on a mortgage of A.'s fee simple estate, with a power of sale in the mortgagee; and (by the terms of the mortgag-e deed) the surplus of 'the moneys to arise from the sale wm to he paid to A.., his executors or administrators ; and A. died, and affericards Bl sold the estate, — The Court held, that the surplus sale proceeds were real estate, and de- scended to the heir (n). But if the sale had been made in the lifetime of A., the mortgagor, the surplus would (e) Pitman v. Pitman, 1892, 1 Ch. 279. (/) Chnllinorv. Sykes, 1910, W. N. 81. ig) Walker v. Lever, 1903, 1 Ch. 565. (h) Galloicay v. Hope, 1903, 1 Ch. 129. (i) WardY. Arch, 15 Sim. 389. {k) Griffith V. Rickctts, 7 Hare, 311. (t) Clarke v. Franklin, 4 K. & J. 257. (m) Doughty v. Bull, 2 P. Wms. 320. («) Wright V. Pose, 2 Sim. & St. 323. CONVEKSION. 159 have formed part of A.'s actual personal estate, — and would (on his death) have gone to his next of kin (o), — and that although the word heirs should have occurred in the deed (p) . Where lands are taken oompulsorily under the provi- f'^^^"* sions of the Lands Clauses Consolidation Act, 1845 (q), compvd- the mere " notice to treat " which is given by the company ^9'^^'"^'^; does not (as from the date thereof) operate as a conversion when, and of the lands into money, — for such notice, without more, ^iienonly. does not amount to a contract; But if the notice is duly followed up, and the price is afterwards ascertained, — whether by agreement of the parties, or (failing agree- ment) by valuation, arbitration, or verdict, as provided in the Act, — then, fmd as from (but only as from) that date, a conversion in equity is effected, — Scil., because an en- forceable contract has then, and only then, been arrived at (/■) : Which view is entirely consistent with the doctrine of equity in the case of ordinary contracts for sale, — For if an ordinary contract for the sale of lands is not enforce- able, no conversion in equity will be effected by the con- tract (s), — Secus, if the contract is enforceable enough, :but goes off (after the death of the vendor) through the sole default of the purchaser (i). As regards leases, conferring upon the lessee (or his in case of assigns) an option to purchase the demised premises, these tainlag option distinctions have been taken (as regatds conversion), that of purchase,— is to say: — Firstly, As between the Lessor and Ms Real and Per- (i) As between sonal Representatives: — In Lawes v. Bennet(u), where p^rsOTTii^r"- A., before making his will, made a lease to B. for seven presentatives years; and on the lease was endorsed an agreement that if "a) Option"^'~ B. should be minded to purchase the inheritance of the created pre- viously to will. (o) Bourne v. Bourne, 2 Hare, 35. [p] Chadwiek v. Grange, 1907, 2 Oh. 20. (?) 8 Vict. 0. 18. (r) Hardmii v. Metropolitan M. C, L. R. 7 Oh. App. 154. is) Thomas v. Bowell, 34 Oh. Div. 166. \t) Broome v. Monck, 10 Ves. 597. (u) 1 Cox, 167. 160 THE ORIGINALLY EXCLUSIVE JURISDICTION. premises for £3,000, A. would convey them to B. for that sum; and B. assigned the lease (and the benefit of that agreement) to C; and A. died, — having by his will given all his real estate (by a general devise thereof) to D., and all his 'personal eetajte to D. and E., — and B. on behalf of C. claimed the benefit of the agreement from D., who accordingly conveyed the premises to C. for the £3,000, — It was held, that the sum of £3,000 was part of the personal estate of A., — Sail., because the election once made referred back to the date of the original agree- ment, — although the rents and profits in the meantime went to D., the person entitled to the property as real estate {x) . And the principle of the decision in Lawes V. Bermet is applicable also (as between the heir and the next of kin) where the lessor dies intestate, — and even although the option to purchase should not be exercise- able until after the death («/). But, according to Drant v. Vause (0), where the testator makes a specific devise of the lands, the specific devisee will be entitled to receive the purchase-money in such a case when the option is exer- cised (z) ; and the rule is the same, where the specific devise and the option are (in effect) contemporaneous (a). (b) Option On the other hand, where a testator, after making his subsequently will devising his real estate (either specifically or gene- towiii. rally) to B. and bequeathing his personal estate to C, grants a lease with an option of purchase, and that option is exercised after his death, the price payable on the exercise of the option will (in either case) go to C. (b),— equally as if the testator had merely sold in the first instance, and the completion of the sale was suspended. (2) As between Secondly, As between the Lessee and his Real and Per- pCTsoTai^re- sanal Representatives : — It is to be observed, that the preaentativee option, as being incidental to the lease, vests where the lease vests ; and the " assign " of the lessee may exercise the (x) Townley v. Bedwell, 14 Ves. 591. (y) Isaacs v. Seginald, 1894, 3 Ch. 506. (2) 1 Y. & C. C. C. 580. \a) Pyle v. Pyle, 1895, 1 Ch. 724. (4) Weeding v. Weeding, 1 J. & H. 424. CONVERSION. 161 option, where the lessee himself does not exercise it; but, of course, the executor or administrator of the lessee is (for this purpose) an " assign " of the lessee: And in one case where the option was given to the lessee, and to " his executors, administrators, and assigns," and the lessee died intestate, and his administrator (who was also his heir- at-law) exercised the option and obtained a conveyance- of the premises to himself in fee simple, — He was declared a trustee for the next of kin of the deceased lessee (c) . Thirdly, As between the Lessor and the Lessee them- (3) As between selves : — Until the option is (in fact) exercised, there is ^'^ ^^1°'^ *"^ merely the relation of landlord and tenant: Therefore, themselves. Firstly, the lessor is not a trustee of the demised premises for the lessee (conditionally on the option being exer- cised, and retrospectively); and. Secondly, the lessee is not entitled (retrospectively) to have any fire insurance moneys (received by the lessor) applied in part payment of the purchase-moneys payable on his exercise of the option, — at least, in the general case (d), — although he may occasionally be so entitled (e) . But, seeing that the damage falls upon the purchaser, — the contract (once the option is exercised) becoming specifically enforceable, — Therefore, it is right, that the purchaser should have the insurance moneys, either paid to him, — or (if not paid to him) applied, at all events, in repairing the damage (/). And note, that the option of purchase continues to be Perpetuities exerciseable, while the tenancy (under the lease) continues '^'^'®'.~'^, , in fact, — although the original term of it may have ex- option of pired (^r). But, as regards all these options of purchase p^roliase. in leases, — ^as distinguished from options for a mere re- newal of the lease (h), — They are (all of them) within the Rule of Perpetuities («), — So that tli,ey cannot be given so as to be exerciseable beyond a life or lives in being and twenty-one years thereafter: However, for a {o] JRe Adams and Kensington Vextry, 17 Ch. Div. 394. \d) Fdwards v. West, 7 Ch Div^ 858. (e) Reiinard v. Arnold, L. E. 10 Ch. Arp. 386. (/■) In re Quiche's Trusts, 1908, 1 Ch. 887. (g) Buckkind v. Popillon. L. E, 2 Ch. App. 67. (A) Uulkr V. Traftord, 1901, 1 Ch. -54. (i) Woodall V. Chfton, 1905, 2 Ch. 257. 162 THE ORIGINALLY EXCLUSIVE JURISDICTION. breach of the option (regarded as a contract), damages are always recoverable (k), — So that the lessor, rather than pay these damages, will ordinarily fulfil the option, — and if the lessor should have meanwhile died, his legal per- sonal representative will probably do the same, — such legal personal representative being now able (under the Conveyancing Act, 1881, s. 4) to convey the fee simple, as well as to receive the option moneys. Effects of conversion : (a) J _ devolution on death. (b) As regards curtesy and dower. (o) As regards disposing ty •will. (3) As to the Ejfects of Conversion. — Money directed to be turned into land descends to the heir {I), and land directed to be converted into money goes to the personal representatives (to) . And accordingly, the money directed to be converted into land, where it belongs to a married woman, is liable to the husband's curtesy; and where it belongs to the husband, is now (under the Dower Act, 1833) liable to the widow's dower: Also (before the Wills Act, 1837) an infant under the age of twenty-one years might have made a will of his pure personal estate, but not of personal estate which had been directed to be laid out in land (w). (d) As regards liability to death duties. (e) As regards escheat to the Where the conversion was by will, the land directed to be converted into money used to be subject to probate duty (o), and also to legacy duty (p), — equally as if it were actual money {q); and, of course, it is now subject to estate duty (which includes the old probate duty (r)). Money directed to be turned into land would not for- merly have escheated to the crown (s), — Soil., Because escheat was purely a legal incident; but such money now escheats, being equitable realty within the meaning of s. 4 of the Intestates' Estates Act, 1884 (J,). Also, the land directed to be turned into money also now escheats, (/c) Wm-lking Corporation v. Heather, 1906, 2 Ch. 532. {I) Scudamore v. Scudainore, Prec. in Ch. 543. (m) Elliott V. Fisher, 12 Sim. fi05. \n) Earlom v. Saunders, Amb. 241. (o) Att.-Gen. v. Bubhuclo, 13 Q, B. D. 275. Ip) Att.-Gen. v. Holford, 1 Pri. 42(1. (?) Att.-Gen. v. Johnson, 1907, 2 K. B. 885. ()•) In re Grimthorpe, 1908, 2 Ch. 675. (s) Walker v. Denne, 2 Ves. 169. « 47 & 48 Vict. u. 71. CONVERSION. 163 although formerly not (u) . Also, as regards leaseholds directed to be turned into money, all these will, appa- rently, go as bona vacantia {x) . (4) The Results of a Failure {total or partial) of the (4)Ke8uitaof Purposes for which the Conversion is directed. — In the fo^ure! ^*'*'^^ case of a total failure, — the purposes for which the con- (i) Total version was intended having totally failed before or at failure. the time 'when the will or deed came into operation, — no conversion will take place at all; but the property will remain as it was, — or be "at home" (y): And, for these purposes, there is no difference between a deed and a will. But, in the case of a partial failure, it is neces- (u;) Partial sary to distinguish between (1) a will, and (2) a deed: — failure. I. Wills — (i) Land into Money. — It was decided in i. Cases under Ackroyd v. Smithson (z), that when land was directed !?^''~, . to be turned into money, the heir took the undisposed-of mon^y! surplus of the land, — and that (to exclude the heir) there must have been an actual disposition in favour of another, — And this was because the testator's intention to convert the whole of his real estate into personalty, was only in case all his residuary legatees should take, — and not also as between his own heir-at-law and his own next of kin. But the rule of Aekroyd v. Smithson is inapplicable. Doctrine does where there is a sale under an order of the Court, and not apply to the heir-at-law consents to the sale (a), — ^and even where court,— (being an infant) he does not consent (b), — Scil., Because the sale being properly made, there is no equity to re- convert (c) . Also, where the trustees of the will have a power of sale, and they do not exercise it, but the Court (in an administration action to which the trustees are defendants) orders a sale, that also is a lawful conver- sion of the land, and in that case also there is no recon- version of the surplus {d). («) Taylor v. Haygarth, 14 Sim. 8. {«) In re Sigginson a«d Dean, 1899, 1 Q. B. 325, on p. 329. (y) Clarke v'. Franklin, 4 K. & J. 257. {z) 1 Bro. C. C. 503. (a) SleedY. Preeoe, L. K. 18 Eq. 192. (b) Burgess -v. Booth, 1908, 2 Ch. 648. (c) Toovey v. Turner, 1907, 1 Ch. 475. yt\ Hyetty. Mekin, 25 Ch. Div. 735; In re Bodson, 1908, 2 Ch. 638; launtleroy t. Beele, 1911, 2 Ch. 257. M 2 164 THE OKIGINALLY EXCLUSIVE JURISDICTION. Except under Bpecial circum- stances. Nevertheless, under the Partition Act, 1868 (e), in the case of infants' lands (/), — and also in the case of mar- ried women's lands (g), — sold under an order of the Court for the sale thereof, — there is a reconversion. Also, under the Lands Clauses Consolidation Act, 1845 (h), where the land taken is the property either of a corporation, or of a tenant for life (or of any of the other persons under disability who are specified in s. 69 of the Act), there is a reconversion (i), — At least, in the general case, 3,nd apart from any special circumstances (/c) . The land to be sold results to the heir, — as personal estate, if that is its actual condition. (a) Where sale is necessary, — it results as money to the heir. As regards the subsequent devolution after the death of the heir, of the real estate falling to him on such partial failure as aforesaid, — It was settled, in Smith v. Claxton (l), that where it was necessary to sell the land for the purposes of the trust, the surplus belonged to tho heir as money, — and went therefore to the personal repre- sentative of such heir; and it was afterwards decided to make no difference, that the land is not sold during the lifetime of the heir, provided it be sold eventually in the due execution of the trust (m). (b) Where sale is unnecessary, and is not made, or so far as not made, — it results as land to the heir, (ii) Money into land. Undisposed- of personalty results to per- sonal repre- sentatives of testator as personalty. I. Wills. — (ii) Money into Land. — It was decided, in Cogan v. Stephens (w), that where money was directed to be turned into land, the next of kin took the undis- posed-of surplus of the money; and, by the cases which have been subsequently decided, it is now settled, that (in the case of such next of kin afterwards dying) the property devolves according to its actual condition at the time of the devolution, — Scil., as personal estate, if that continues to be its actual condition; and as real estate, if (from any special cause) that should have become its actual condition (o). But any mere blending of the sale- proceeds of the real estate with the personal estate, will («) 31 & 32 Vict. c. 40. If) Foster v. Foster, 1 Ch. D. 588 ; Mildmay v. Quiche, 6 Ch. DIt. 55a. ijl) Wallace v. Greenwood, 16 Ch. Div. 362. (h) 8 Vict. c. 18. (i) Kellandy. Fulford, 6 Ch. Div. 491. (k) Smith V. May, 19U0, 2 Ch. 474. {/) 4 Mad. 492. [m) In re Bicherson, 1892, 1 Ch. 379. (n) 1 Beav. 482, n. (o) Reynolds v. Godlee, 1 John. 636 ; In re Iticherson, supra. CONVERSION. 165 not operate to convert the real estate into personal estate Blending of for the purpose of giving it to the next of kin (p). Also, B^^'fg'lateV any mere declaration, which purports to exclude the heir, — eifect of. will not suffice, although it should be ever so emphatic,^ a mere intention to exclude the heir (unless there is a gift over to some one else) not sufficing (g): That is to Conversion for say, no conversion (as against the heir) will arise, merely puiT"^®^ °! by the testator's declaring that the land is to be deemed and'out. personal estate and distributable accordingly (r) ; but the testator must go further, and declare his intention to be, that the realty shall be converted into personalty for all purposes, — i.e., whether the purposes of the will talce effect or not (s) . II. Deeds. — The rule is, that when realty is directed H- Cases to be converted into personalty (t), — or personalty into ^"^ ™ ^^ ^' realty (m), — ^for certain specified purposes, and a part of those purposes fails, — The property shall (to that extent) result to the settlor, — and through him (if it is land directed to be converted into money) to his personal re- presentatives {x), — or (if it is money directed to be con- verted into land) to his heir {y) ; and the subsequent further devolution (if any) will, semhle, depend upon the actual character of the property at the date of the further devolution {z) . {p) Jeasop V. Watson, 1 My. & K. 667. \q) Fitch V. Weber, 6 Hare, 146. (r) In re Walker, 1908, 2 Ch. 705. (s) Crme v. Barley, 3 P. Wms. 22. (<) Clarke v. Franklin, 4 K. & J. 263. (m) Pulteney v. Darlington, 1 Bro. Ch. Ca. 223. (x) Griffith V. Uicketts, 7 Hare, 299. (V) Wheldale v. Partridge, 8 Ves. 236. (z) Walter v. Mamde, 19 Ves. 423. 166 CHAPTER X. RECONVERSION. Reconversion is the process whereby a prior notional conversion is annulled or discharged, and the notionally converted property is restored to its original actual uncon- verted quality; and this happens, either (1) By act of the parties, or (2) By operation of law. I. By the act I. Reconversion hy Act of the Forties. — A sole owner ° J' ^^"^ '^^' entitled (absolutely and not defeasibly {a)) in fee simple lute owner. in possession, may, of course, elect to take the property in whatever form he chooses; but the onus of proving the reconversion (even in that case) is on those who allege oflnUdirided i* (^)- ^^ the other hand, as regards co-tenants, the fol- share. lowing distinction has been taken, namely, — That when (a) Of money the conversion is of money into land, any one undivided to DG convcrtsd '1/ into land. fee simple owner (entitled in possession) may reconvert fb) OEiand without the Concurrence of the others (c), — but not in the to be converted (»i i-, /7\ iji into money. Converse case oi land into money (a) ; and the reason assigned for this diversity is, that the sale of an undivided share in realty is less marketable than the sale of the entirety (e). (3) By remain- As regards Remaindermen, — They cannot reconvert, so extent°ofh^ ^^ ^ ttjfect the interests of the prior tenants ; but remain- own interest dermen (even remote remaindermen (/)) are not, of ° ^' course, prevented from declaring, that {as between their [a) Sisson v. Giles, 3 De G. F. & J. 614. (A) Benson v. Benson, 1 P. Wms. 130. (c) Seel'!/ v. Ja^o, 1 P. Wms. 389. (d) Holloway t. Radclife, 23 Beav. 163. (e) Mutlow V. Bigg, 1 'Ch. D. 385. (/) Cleveland {Duke), In re, 1893, 3 Ch. 244. EECONVEESION . 1&7 c^itn real and personal representatives) the remainder shall be real estate or shall be personal estate {g) . As regards Infants, — An infant does not, ordinarily, (4) By infants, redonvert, — because the matter can usually wait, — But if the matter won't wait, then the Court will direct an inquiry, whether it is for the benefit of the infant to re- convert or not, and will order accordingly, — but with- out prejudice to the respective rights of the real and per- sonal representatives of the infant, in case he should after- wards die under age {h). As reg'ards Lunatics, — A lunatic cannot reconvert; but (6) By lunatics, the committee of the lunatic may (with the sanction of the Court) do so, — In which latter case also, the respective rights of the real and personal representatives of the lunatic will be duly protected (i) . As regards Married Women, — A married woman may, (6) By married doubtless, reconvert, if she is an absolute owner: And as ,>-,,' ' ' . . (a) Money regards, firstly, the case of money into land, — a married into land, woman, if entitled for her sepaxate use, reconverts hy ordinary deed; but if not entitled for her separate use, she reconverts by deed acknowledged (fc), — the deed acknowledged being in lieu of the old fine (or separate examination) which used to he necessary for the pur- pose (?). And as regards, secondly, land into money, — (b) Land into a married woman (unless she is entitled for her separate ™°"^^' use) reconverts by deed acknowledged; and she is able to do that, whether her estate is in possession (m), or is in reversion (n), — and although her estate should be merely an interest in the land (o) . But, nota bene, her husband must, in all cases, concur in the deed acknowledged, — like he used to do in the old fine for which the deed (ff) Billies V. Longlands, 4 De G-. & Sm. 372, 379. [h) Foster v. Foster. 1 Oh. Div. 588. («) Att.-Gen. v. Ailesbury (Marquis), 12 App. Ca. 672. (/c) Forbes v. Adams, 9 Sim. 462. (l) Oldham v. Hughes, 2 Atk. 4o3. (m) Briggs v. Chamberlain, 11 Hare, 69. (n) Titer v. Turner, 20 Beav. 560. (o) Millers. Collins, 1896, 1 Ch. 573. 168 THE OEIGINALLY EXCLUSIVE JURISDICTION. acknowledged has been substituted, — Soil., where the married woman is not entitled for her separate use. fa^wn"*""' It is clear, that an absolute owner of property, not under disability, may reconvert by any express declara- tion of his or her intention in that behalf; and as regards land into money, slight circumstances are deemed sufficient to raise the inference of a reconversion, — as keeping the land unsold for a time (p), or (on a lease of it) reserving the rent to the lessor his heirs and assigns (q) . But as regards money into lands, only by the owner 'si actual receipt of the capital moneys from the trustees, would a reconversion be shown (r), — the mere receiving of the income of the money (though for a long time) not sufficing (s). II. By opera- tion of law. Concurrence of tyvo requisites to reconversion necessary, — 1st, property in person en- titled whether it be real or personal ; and 2nd, no de- claration by him concern- ing it. t)arlington, — the money was doubly recon- verted, having been twice over ' ' at home." II. Reconversion by Operation of Ldw. — Where money has once been impressed with the quality of land, that impression will remain (for the benefit of the heir) until it is put an end to; and to put an end to it, two things are necessary (neither of which standing alone will suffice), that is to say: — Firstly, the money must have been in the hands (i.e., in the actual possession) of some person who had in himself both the executors and the heirs (i); and, Secondly, that person must have died without making any declaration of his intention regarding it either way (m) : That is to say, if money impressed with the quality of land, has come into the hands of B., the person solely entitled to it under the ultimate limitation in fee; and he dies without taking any specific notice of it, the heir-at-law of B. shall not have the money (a;), — Scil., because the money was "at home" in B. raessed'^th ^^t, nota bene, if the money had not been so "at real uses, at home " in B., but had " stood out in a third person," that home in the {p) Mutlow V. Bigg, 1 Ch. D. 355. (q) F'iru:iU v. Lctvis, 30 Ch Div. 654. ()•) Martin V. Trimmer, 11 Ch. Div. 341. [s] Re Tedder's SetlUmeiit, 5 De G. M. & G. 890. \t) WheUale v. Partridge, 8 Ves. 227, at p. 235. (m) Chiche&ier v. B'lcherataff, 2 Vern. 295. {x) Pulteney v. Darlington, 1 Bro. 0. C. 223 ; 7 Bro. P. C. 530. RECONVERSION . 169 would, semble, have made a difference; and it has been hands of the held (y), that there is no reconversion (Soil., by operation owner, de- of law simply), when any subsisting legal interest (e.g., ^l^^^\^i a legal jointure) is outstanding, — notwithstanding that not if any all the successive limitations in the settlement have (sub- partiarhSerest ject only to such jointure) centred in one and the same stands in the person; but the money directed to be laid out in land and ^'^^' to be strictly settled will (in such a case) he held to remain impressed with the character of land, — and so go to the heir. And it is convenient here to say, that there is, in No equity for 1 •, p • .,1 a reconversion, general, no equity lor a reconversion, — either: in general. (1) As between the heir and the customary heir, — on an exchange (z) ; or (2) As between the heir and the next of kin of a lunatic (a) ; or (3) As between the heir ex parte paternd and the heir ex parte maternd (6); or (4) As between the real and the personal representa- tives, — in 'the case of a conversion by statute (c) . But a man may, of course, always provide expressly to the contrary, by his wi-ll (d) . (y) iralrond v. Eossli/n, 11 Ch Div. 640. (z) Minet v. Leman, 7 De G-. M. & Gr. 340. (a) Re Tvgwell, 27 Ch. D. 329. (A) Ex parte FhilKps, 19 Vee. 118. (c) Frewen v. Freioen, L. R. 10 Ch. App. 610, on p. 613. \S) In re Orimihorpe, 1909, 2 Ch. 676. 170 CHAPTER XI. ELECTION. Thefounda- fion and the charicterutic effect of the equitable doctrine. Election in equity arises, where there is a duality of gifts or of purported gifts, — one of the gifts being to A. of the donor's own property, and the other of them being to B. of the proper property of A.; and in the case of such a duality of gifts, there is an intention implied, that the gift to A. shall take effect, only if A. elects to permit the gift to B. to also take effect. That is the foundation or principle of the doctrine of election; and the characteristic of that doctrine is, that, by an equit- able arrangement, effect is given to the purported gift to B. Two courses open to elect between, — (1) Election under the instrument. (2) Election against the instrument. Compensation, and not for- feiture, is the rule, — upon an election against the instrument. Supposing, for example, that A. by mill or deed gives to B. property belonging to C, and by the same instru- ment gives other property belonging to himself to C, a Court of Equity will hold C. to be entitled to the gift made to him by A., only upon the implied condition that C . shall renounce his own property in favour of B . : And C. has two courses open to him (to choose between), That is to say, — either (1) To take under the instrument, — In which case B. will take C.'s property, and C. will take the property given to him by A.; or (2) To go against the instrument, — In which case, C. will forfeit or lose the gift made to him by A., — Soil., to the extent required to compensate B. for the disappointment B. suffers through C.'s election against the instrument; That is to say, if A. (the testator) gives to B. a familj^ estate belonging to C, worth £20,000 in the market, and by the same will gives to C. a legacy of £30,000 of his (A.'s) own property; and C. (unwilling to part with the family estate) elects against the instrument, — In such a case, C. will retain his family estate, and will also receive £10,000 (portion of his legacy of £30,000), leaving to B. £20,000 ELECTION. ITl (other portion of the legacy of £30,000) to compensato him (B.) for the value of the estate of which he has been disappointed by C.'s election against the instrument {a). But, of course, the compensation is only payable, where C. elects against the will, — and not where he elects to take according to the will; and the compensation payable (where any is payable) is only out of {and by ivay of charge on (6)) the other property given by the ivill, and is never in excess of that, — a circumstance which distin- guishes election from the case of a valid gift with a legal condition annexed to it (c) . The doctrine of election depending on the principle of ^^®''®,'?l^^' ^® compensation, it follows, that the doctrine is inapplicable, which com- where there is no fund from which compensation can be pensationcan made, — Or (speaking more simply) the doctrine of elec- some property tion only properly arises, where the donor (or purporting »* donor's donor) really puts into his gifts (or purported gifts, or °'^' some or one of them) some property that actually is his own, at' the same time that he affects to give away the property of others, — a point which comes out very clearly upon a contrast of the decisions in Bristoiv v . Warde and Whistler v. Webster : That is to say, — In Bristow v. Warde (d) decided in 1794, it appeared (i) Where no that a father had the power of appointing certain stock testatoX°own among his children, and that the appointment funds in is given,— question were given to the children in default of appoint- ^^'^'^*' ' ment by the father; and it also appeared, that the father (by his will) appointed portion of the funds to his children (the proper appointees), and the remaining part thereof to X., Y., and Z. (who, as not being children, were improper appointees), — and that the father did not (in or by his will) give any property of his oiun to the chil- dren, — Upon these facts, the Court held, that the children might keep their appointed shares, and also take (as in default of appointment) the shares appointed to X., Y., and Z., — and were not, in fact, bound to elect. (a) Gretton v. Sayward, 1 Sw. 433. (*) See jOCT- Jessel, M.R., in 5 Ch. D. 163, on pp. 173-4. (e) Robinson -v. Wheehvright, 21 Beav. 214. (d) 2 Ves. 336. 172 THE ORIGINALLY EXCLUSIVE JURISDICTION. (2) Where , On the other hand, in Whistler v. Webster (e), also STeTtor's''' e'soSgM that a clear intention to dispose of that which is not the for,— and it donor's own should appear on the instrument itself, — ™L^face of therefore, if the words used are capable of being otherwise the wUi itself . satisfied, no case of election will arise (g); and parol evidence is not admissible for the purpose of raising a case of election (r ) . With regard to the mode of signifying one's election, — Married women elect as to -real estate by deed acknow- ledged, — the husband concurring, of course, in the deed; and they elect as to personal estate also by deed acknow- ledged \Scil., where Malins' Act is applicable (s)), and the husband again concurring : But where the Court has seisin of the matter, an inquiry may be directed, as to which of the two interests is the more beneficial for the married woman to take, — ^and she will then elect accord- ing to the result of the inquiry {t) . And, of course, as regards their separate estates, married women (being of full age) elect like any male adult, — Soil.-, where no re- straint on anticipation is annexed to their separate estate; but where such a restraint is annexed, if (under the cir- cumstances) the married woman must elect, she could only do so with the aid of the Court, and by virtue of the provision contained in s. 39 of the Conveyancing Act^ 1881 . And although it seems, that a married woman may elect by conduct, — being conduct whereby she is estopped from denying that she has elected (m) ; yet she cannot be so estopped, where the separate estate is subject to the re- Modes of electing : (1) Married women,— they elect as to land by deed acknow- ledged ; and as to money, by direction of Court on Inquiry. (m) Anderson v. Abbott, 23 Beav. 457. {n) Codrington v. Codrington, L. R. 7 H. L. 854. (o) Brown v. Brown, L.'R. 2 Eq. 481. (p) Oreen v. Oreen, 2 Mer. 86. \q) Shuttleworth v. Greaves, 4 My. & Or. 35. ()•) Bummer v. Pitcher, 2 My. &'K. 262. (s) 20 & 21 Vict. 0. 57. (i!) Wilder v. Piggott, 22 Ch. Div. 263. (!() Barrow v. Barrow, 4 K. & J. 409. ELECTION. 179 stramt on anticipation (x), — Soil., while that restraint continues : As regards infants, the practice is not quite uniform, (2) infants, being adapted to the necessities of the case : That is to tai o?age^; or say, the period of election may be deferred, until the else elect infant comes of age; or there may be a reference to oJcourton inquire what is most beneficial for the infant, and the inquiry. Court will elect for him upon the result of that inquiry. And as regards lunatics, the practice ie to refer the matter —iheyeiecr' to a. Master in Lunacy, to report as to what is best for the by direction lunatic; and the Court elects on the report (y); but the inquiry. Court may, in a proper case, defer the matter: Persons compelled to elect are entitled previously to Privileges of ascertain the relative values of the two properties between peiSd' to elect, which they are called upon to elect; and an election made under a mistake of fact will not be binding (0). Also, what is in all cases of election by conduct, — the queistion as to deemed an whether there has been an election or not, must be deter- conduct', mined (like any other question of fact) upon the circum- stances of each particular case, — and theTe can, of course, be no election without the intention of eleoting (a) . And Vhen a time is limited for the election being made. Election a person who does not elect within the time will be con- f^g^J^gj^j. _ sidered to have elected against the instrument (&). ,0n tbe where no other hand, where no time is limited, the Court will fg^^_ ™ ™ not readily hold a man to be concluded by the mere lapse -^ ^ . j^ . , j^^ of time, — so that if he merely continues in his former may exclude enjoyment, he will not be taken to have elected (0), — Question unless where (by reason of his delay) he is estopped election, (other considerations having in the meantime arisen) from disturbing the enjoyment of others (. 81. (i) Powys V. Mansfield, 3 My. & Cr. 359. (k) 2 H. L. Ca. 131. SATISFACTION. 189 It is to be observed, however, that where the settlement Excepting precedes the will, and the trusts are dissimilar, the persons ^^ere settle- entitled under the settlement are qiuisi^purchasers, — and ment comes therefore cannot .(ipo^ i^^J presumed intention of the takdigmdra testator) be deprived (aqainst their mil) of their rights i* ^'^f quasi- -. i T T/1 \ 11 purchasers^ — under the settiement,^and (at the utmost) can only be with right to put to elect, whether to take under the will or under the tife'^ge^tiraient settlement (Z) ; and (for the purpose of such election) an and the will, inquiry will be directed. But it is otherwise, when the settlement is made subsequently to the will, — So that, where a father bequeathed his residuary estate (which comprised his business of a bookseller) equally between his two sons and his three daughters; and subsequently he assigned his business to the two sons, — The assignment was held to be a SBitisfaction of the bequest to the sons (to) . Also, .where a person in loco pmentis gave a bond to A. for the payment to him of £10,000 on a day therein specified; and afterwards (only a few weeks before the day) he took A. into partnership with him, — That was held to be a satisfaction of the bond (w), — although the thing substituted was only remotely ejusdem generis (o). Where the donee of a special power of appointment Appointment appoints (by will) the whole fund equally among his ^^'e^f^T^en children, — ^and afterwards appoints (by deed) a portion of a satisfaction. the fund to one of such children exclusively, — the rule against double portions will not, in general, apply, — So that the last child appointee (by deed) will share also and equally with the whole class of children, — Soil., unless the appointment (by deed) has been, in fact, a mere anti- cipation of the share appointed by the will, and has been accepted as sueh by the appointee (p) . And generally, The testator's in all cases of alleged satisfaction, the surrounding cir- 2*hou°h'not cumstances (including the true construction of the will) express, but must be considered, and the intention fairly ga,thered may^'exciude' therefrom (^q) . satisfaction. {[) Chichester v. Coventry, L. R. 2 H. L. 87. (m) Tickers v. Vickers, 37 Ch. 625. (n) Zawes v. Zawes, 20 Ch. Div. 81. (o) Bodgson v. Braisby, 1903, 1 Ch. 267. (jo) Ingram v. Papillon, 1897, 2 Ch. 574. [q) Whitehouse v. Edwards, 37 Ch. Div. 683. 190 THE ORIGINALLY EXCLUSIVE JURISDICTION. Sum given by second instru- ment, if less, satisfaction pro tanio. Lefjacy to a •child or wife, teing a creditor. Advancement to child or wife, heing a -creditor. Debt owing by child to father, — forgiven by father, is an advancement. Extrinsic evidence, — question of its admissibility It was for a long time unsettled, whether, if the sum given by the second instrument was smaller than that given by the first, the less sum operated as a total satis- faction of the larger; but the true rule was at length' established, that an advancement subsequent to the will, if less in amount than the sum given by the will, was a satisfaction fro tanto only {r) . It is to be. remembered, however, that every payment by a father to his child is not to be regarded as a portion for the ohild, — or as being on account of that child's portion, — the contrary being usually the case (s) . Where a parent or husband gives a legacy to his child (t) or wife (m), to whom he is already indebted, — The case stands on the same footing as a legacy to any other person in satisfaction of a debt (x) ; and that is also so, whether the debt has arisen upon the covenant of the husband (y), or has arisen on account of some breach of trust (z) . And where a parent (indebted to his child) advances to the child (upon marriage) a portion equal to or exceeding the debt, it will prima facie be considered a satisfaction (a) ; and (in such a case) it is immaterial, that the child may be ignorant of the debt(fe). Also, conversely, if a son is indebted to his father, and the father gives up the debt to the son, and afterwards dies intestate, — The Court considers, that {to the extent of the debt so forgiven) the son is advanced, — So that, in such a case, he mus't bring the amount into hotchpot, before he will be permitted to share with the other children in the distribution of the intestate's estate (c) . The rule against double portions being a presumption of law, it may (like other presumptions of law) be re- (?■) Pi/m V. Lockyer, 5 My. & Cr. 29. (s) Taylm- v. Taylor, L. E. 20 Eq. 155. \t) Stochen v. Stocken, 4 Sim. 152. («) Fowler v. Fowler, 3 P. Wms. 353. [x) Crichton v. Orichton, 1895, 2 Ch. 853. [y) Cole V. Willard, 25 Beav. 568. (z) Phmkett v. Lewis, 3 Hare, 316. (ffi) Gillings v. Fletcher, 38 Ch. Div. 373. (i) Wood V. Briant, 2 Atk. 521. (c) Bleckley v. Blockley, 29 Ch. Div. 250. SATISFACTION. 191 l)utte(i by evidence of pxtrinsic circumstances; and, in omou- Kirk V. Eddowes (d), where a father bequeathed £3,000 admissibility. for the separate use of his daughter for life, with ulterior trusts for her children, — and he subsequently gave the •daughter and her husband a promissory note for £500; and the defendants (the executors of the father), desiring to show, that the £500 was a satisfaction pro tanto of the legacy of £3,000, tendered parol evidence of the de- clarations of the father at the time of handing over the note, — Wigram, V.-C, held, that the evidence was admis- sible, observing: — "If a second instrument do not in terms adeem the first, but the case is of that class in whioh (from the relation between the author of the in- strument and the party claiming under it) the law raises a presumption that the second instrument was an ademp- tion of the gift by the instrument of earlier date, evi- dence may be gone into, to show, that such a presumption is not in accordance with the intention of the author of the gift; and where evidence is admissible for that purpose, counter -evidence is also admissible, — Because, of course, in such cases, the evidence is not admitted for the purpose of proving (in the first instande) with what intent either writing was made, but for the purpose only of asdertaining, whether the presumption which the laiv has raised be well or ill founded." {d) 3 Ha 509. 192 CHAPTER XIV. ADMINISTRATION OF ASSETS. Assets, (1) Legal assets. (2) Equitable The property of a deceased testator (or intestate), re- garded in the light of its liability to answer the debts of the deceased, is called his assets; and assets are either legal or equitable, — (1) Legal assets comprising such portions of the property as were always available at law for the payment of the debts, — and with which, accord- ingly, the executor or administrator (as such) was charge- able in lan action at law by a creditor of the deceased; and (2) Equitable assets' comprising such portions of the property as used to be availa,ble for the creditor in a Court of Equity only (a) . Legal and equitable assets,— im- portance of distinction between, for- merly and at present. The distinction between legal and equitable assets was formerly of much more importance than it is now, — Scil., because, out of legal assets, the specialty debts were paid before the simple contract debts; while, out of equitable assets, these two different species of debts were payable pari passu (b); but Hinde Palmer's Act (c) abolished the priority of specialty debts over simple contract debts (d), in the administration of the legal assets of all persons dying on or after the 1st January, 1870. The order of In the case of persons who have died before the ^""me'^'t of^" ^^^ January, 1870, the following was the order in which debts,— out of the different species of debts were payable out of legal legal ^sets as assets, — That is to sav: — regards deaths '' before 32 & 33 /i v t^ i i . x Vict. c. 46. (1) Debts due to the crown (by record or specialty), (a) Coo/c V. Oregson, 3 Drew. 549. ib) Plunkett v. Penson, 2 Atk. 290. (c) 32 & 33 Viot. c. 46. (d) Att.-6en. v. Leonard, 38 Ch. D. 622. ADMINISTRATION OF ASSETS. 193 — crown-executions also having priority over other exe- cutions (e), and crown-distresses over other distresses (/). (2) Debts which had priority by statute, viz., pro- perty tax and income-tax (^r); poor-rates and other rates; the amount due to a building society from the estate of its secretary (Iv), or the amount due to a savings bank from the estate of its actuary {i), or to a friendly society from the estate of its treasurer {It) . (3) Judgments against the deceased duly registered, and unregistered judgments against his personal repre- sentatives (Z), — but not mere orders to sign judgment(m). (4) Recognisances and statutes. (5) Specialty debts for value, — including arrears of rent(j2); calls on shareholders (o), &o. (6) Debts by simple contract, — the crown again hav- ing, priority here {p), — unregistered judgments against the deceased {q), and claims for dilapidations under the Ecclesiastical Dilapidations Act, 1871 (r), being (for this purpose) regarded as simple contract debts. (7) Voluntary bonds, — excepting that if the voluntary bond had (in the life of the obligor) been assigned for value, it stood on the same footing as a specialty debt for value (s) . By running together the debts comprised in the fifth The order of and the sixth of the above-mentioned groups, you obtain priority in the the order in which the different species of debts were debts,— out of always payable out of equitable assets; and in cases «?««^«W« where Hinde Palmer's Act applies, the order last men- (under the Act tioned is also the order in which the different species of °* 1^69) out of debts are now payable out of legal assets also, — the effect **^" ^^^ ^' [e] Giles v. Grover, 1 CI. & F. 72. (/) Ait.-Gen. v. Leonard, 38 Ch. D. 622. iff) Re Banley ^ Co., Limited, 9 Ch. Div. 469. (h) Moors T. Marriott, 7 Ch. Div. 543. («) Savings Bank Act, 1891, s. 13. (k) In re Miller, 1893, 1 Q. B. 327 ; 69 & 60 Vict. c. 25, s. 35 ; Savings Banks Act, 1891, s. 13. {I) Re Williams, L. E. 15 Eq. 270 ; Smith v. Morgan, 5 C. P. D. 337. (»») Clifford \. Gurney, 1896, 2 Ch. 863. («) Shirreffv. Bastings, 6 Ch. Div. 610. (o) Buck V. Robson, L. E. 10 Eq. 629. [p] Bentinck v. Bentinck, 1897, 1 Ch. 673. (q) Van Gheltiive v. Nerinoki, 21 Ch. Div. 189. (r) TFayman v. Monk, 35 Ch. Div. 583. (s) Fayne v. Mortimer, 4 De Gr. & J. 447. 194 THE ORIGINALLY EXCLUSIVE JURISDICTION. Executor may prefer one creditor to another, — ■ until decree, or receiver or injunction. Legal assets, — examples of. of that Act (wherever it applies) being, to abolish (in every administration action) the distinction between legial and equitable assets, so far as regards creditors whether by specialty or by simple contract. But, nota bene, the Act has not prejudiced (t), but has even (semhle) enlarged(M), the executor's right of retainer; and the Act has not in any way prejudiced the crown's priority (x). The order of payment above specified is that which is observed, where the assets are applied in a due course of administration: But there is nothing to prevent an exe- cutor from paying one simple contract creditor before another simple contract creditor (y), or from paying one specialty creditor before another specialty creditor (z), or from paying a statute-barred debt (a), — At least, at any time before decree in an administration action, where no receiver of the estate has been appointed or injunction obtained (b). And, in order to prevent such preferential payment, it is necessary, either to obtain an injunction or the appointment of a receiver in the action before decree, or else to obtain a speedy consent decree for administra- tion (c), — or else sOme limited order to the same eEect(d). And, nota bene, where the grant of probate is delayed, and an interim administrator has been appointed, any creditor may obtain a decree for administration (either general or limited) against such administrator (equally, as if he were an executor (e)); but you cannot get any such decree until you have a legal personal representative of some sort (/), — although you may (perhaps) be able to get some interim protective relief (gr) . Legal Assets comprise (among many other properties) lands not charged with the payment of debts; and such (i) Job V. Job, 6 Ch. Div. 562 ; Wilson v. Coxwell, 23 Ch. Div. 764. (u) Sobbins v. Alexander, 1906, 2 Ch. 584. {x) Bentinch v. Bentinch, supra. \y) Waring v. Sanvers, 1 P. Wms. 294. (a) Cunliffe-Smith v. Hankey, 1899, 1 Ch. 641. (a) Bray v. Tofleld, 18 Ch. Div. 551. lb) In re Radcliffe, 7 Ch. Div. 733 ; Vibart v. Coles, 24 Q. B. D. 364. Ic) Sanson v. Stubbs, 8 Ch. Div. 154 ; In re Sargreaves, 44 Ch. D. 236. (i) Brown v. Burdett, 40 Ch. Div. 244. \e) Westwood-r. Booker, 1897, 1 Ch. 866. {/) Sowselly. Morris, L. R. 17 Eq. 20. (g) Goote v. Whittington, L. R. 16 Eq. 534. ADMINISTRATION OF ASSETS. 195 lands were for the first time made liable as assets for pay- ment of the debts generally in 1833 (by the statute 3 & 4 Will. IV. c. 104, which extended to deceased non-traders the remedy given in 1807, by the 47 Geo. III. c. 74 and 11 Geo. IV. & 1 Will. IV. 0. 47, against the estates of deceased traders {h)); but the lands were (by that Act) made liable in an administration action in equity only, — and were not, until the Land Transfer Act, 1897 (»), 6. 2, sub-s. 2, made them so, liable otherwise than in such an action. Equitable assets, on the other hand, consist of (or com- Equitable prise) (1) Property over which a testator (Zc) or testa- ^^j.^*^'.~ - . trix (I) has exercised a general power of appointment (j) Equitable vested in him or her, — Scil., to the extent that the power assets, by is so exercised (m) ; and (2) The separate estate of a property itseii, married woman, — it having been, in fact, only through —enumeration a Court of Equity that the creditors of a married woman ° ' could (at one time) have got at the separate estate at actuaUy'ap-^ all(w); and the remedy which is now obtainable in a pointed in Court of law against the separate estate, is still the equit- general power, able remedy only(o). (b) Separate estate of mar- ried women. Lands charged with (or devised upon trust for) the (2) Equitable payment of the debts of the deceased are also equitable oFt^tator"^"* assets; and between a charge and a trust, these distinc- charge of tions are to be remembered, namely. Firstly, that, when debts distin- lands are devised upon trust to pay the debts, the trust- ^'st— ™™ devisee must retain the mesne rents and profits towards (i) inati-ust payment of the debts; but if the lands are merely *f'^/^?™®''' dharged with the payment of the debts, the person who mesne rents (subject to the charge) is beneficially entitled to the lands to be retained; takes (for his own benefit) the m'esne rents and profits, charge of and is not, in the general case, liable to refund same, debts. But, nota bene, if the lands devised are charged also (or only) with the payment of the legacies, the legatees are (h) Small V. Bedgely, 34 Ch. Div. 379. (i) 60 & 61 Viot. c. 65. (k) Tarda v. 'Bingham, L. R. 6 Eq. 485. \V] Sell v. Stacker, 10 Q. B. D. 129. («)) Barley v. Sadgson, 1899, 1 Ch. 666. («) Murray v. Barhe, 3 Mv. & K. 209. (o) Scott V. Morley, 20 Q. B. JD. 120. o2 196 THE ORIGINALLY EXCLUSIVE JURISDICTION. (2) In a trust for payment of debts, lapse of time no bar ; but in a charge, creditors may be barred by lapse of time. not, in any case, entitled (as against the charged devisee) to the back rents, — even although the estate should prove insufficient for payment of their legacies (p) . And it is to be remembered, Secondly, that, as between an express trustee and his cestui que trust, no length of time is a bar (q), — while if the creditors have merely a charge upon the lands in their favour, they must look after themselves (r) : That is to say, for a devastavit by executors, the remedy is barred after six years (s), — although, for an administration action, the period of twelve years (formerly twenty years) is the limit in general, — as regards both testators and intestates, — save as regards assets subsequently falling in(i); and under the Real Property Limitations Act, 1874, s. 10, as regards any legacy, even where it is charged upon (or payable out of) land (w), the twelve years' limit of time for the recovery thereof is now applicable, notwithstanding that the legacy is also secured by^ an ex-press trust (x) : And, nota bene, it makes no difference that the land is rever- sionary (y), — a, chargee by will, differently from a chargee by deed (z), having no right of foreclosure. Statute-baiTcd As regards the Statutes of Limitation generally, — The the'^i^y or"" statutes 21 Jac. I. c. 16 (simple contract debts) and 3 & 4 may not be Will. IV. c. 42 (specialty debts) bar the remedy only, but do not extinguish the debt itself; but the statutes 3 & 4 WiU. IV. c. 27 and 37 & 38 Vict. c. 57 (moneys charged on land) not only bar the remedy, but also ex- tinguish the debt (a), and the Trustee Act, 1888, s. 8, would, semble, be interpreted distributively, in order to preserve that distinction. It follows, that an executor may not pay a debt which has been wholly extinguished by the 3 & 4 Will. IV c. 27 and 37 & 38 Vict. c. 57, — ^although he may (and a paid by the executor. (p) Allen V. Lnngstaffe. 37 Ch. Div. 48. \q) Hughes v. Wynne, T. & R. 309. ir) Scott V. Jones, 4 CI. & Fin. 382. (s) Slake v. Gale, 22 Ch. Div. 820. (i!) Sowles V. Syatt, 38 Ch. D. 609. (u) Ja4/ V. Johnstone, 1893, 1 Q. B. 189. (x) Warburion y. Stephen':, 43 Ch. Div. 39. ii/) In re Oweti, 1894, 3 Ch. 220. (z) Hugill V. Wilkinson, 38 Ch. D. 480. (a) Sanders v. Sanders, 19 Ch. Div. 373. ADMINISTRATION OF ASSETS. 197 trustee also may (b)) pay a debt barred by the 21 Jac. I. c. 16, or 3 & 4 Will. IV. c. 42— and either of them may (until there is a decree for administration) do so, although the personal estate is insufficient for the payment of the other debts (c). But, after a decree or judgment for Effect of administration, the executor may no longer voluntarily judgment for pay a statute-barred debt, — the other creditors, — and even adnmiistra- the legatees or next of kin, — being entitled to object to regards^ the payment of the statute-barred debt (d), — other than statute -barred the plaintiS's own debt(e). Also, nota bene, a specific. ® ' devisee, if the plaintiff-creditor was proceeding against him in the action, might have objected (and still, of course, may object) to the payment of the statute-barred debt of the plaintiff also (/); but if no one objected, the Court would not itself have refused to pay a statute- barred debt (g) . But when the estate is insolvent, — and Effect, if the administration thereof is within s. 10 of the Judica- goj^g^J^" ture Act, 1876, — no debt that is statute-barred may now be paid in the administration. A debt which is statute-barred under the 21 Jac. I. Effect of c. 16, may be revived by a written acknowledgment made me^°of * ^" to the creditor containing a promise to pay (h) ; and statute-barred similarly, a debt which is statute-barred under the 3 & 4 ® '■ Will. IV c. 42, may be revived by such a written acknow- ledgment, — only the acknowledgment need not (in this latter case) amount to a promise to pay, and may there- fore be made to a third person (i) ; and every such acknowledgment, when given by one of several executors, suffices to bind the personal estate of the deceased, although not to bind the co-executors of the acknow- ledging executor personally (7c) . But as regards debts within the 3 & 4 Will. IV. c. 27 and 37 & 38 Vict. c. 57, if the debt be already extinguished by the statute, no acknowledgpoaent can possibly revive it (I) . (b) Budgett v. Budgeit, 1895, 1 Ch. 202. («) Lowis V. Sumnet/, L. R. 4 Eq. 451. {d) Moodie v. Bannister, 4 Drew. 432. (e) Briggs t. Wilson, 5 Be G. M. & a. 21. (f) Briggs v. Wilson, supra. (g) Hunt V. Wenham, 1892, 3 Ch. 59. (h) Mitchell's case, L. E. 6 Ch. App. 822. (i) Moodie v. Bimnister, supra. (k) Dick V. Fraser, 1897, 2 Ch. 181 {/) Sanders y. Sanders, supra. 198 THE ORIGINALLY EXCLUSIVE JUEISDICMON . Joint liabiKty of heir and devisee under 3W. &M. c. U. A general direction "by testator for payment of his debts, — effect of. Effect, where testator has specified a particular fund for pay- ment of debts. Effect, where executors, not being also devisees, are directed to pay the debts. Real estate (unless charged with debts) not having been originally liable for the payment of the debts, — excepting only such debts as the testator had specifically bound' himself and Ms heirs to pay, — and testators having been still at liberty, even after specifically binding their heirs, to defeat their creditors by devising the lands away from their heirs,— Therefore, by the statute 3 W. & M. c. 14, commonly called " the Statute of Fraudulent Devises," the devisee of a debtor who had specifically bound liis heirs was made liable jointly with the heir: Therefore, in such a case, if the 'heir or the devisee aliened the lands, the purchase-moneys received on the sale thereof were liable for the debts; and afterwards (by the 11 Geo. IV. & 1 Will. IV. o. 47) such heir or devisee, — -to the extent of the value of the lands so alienated{m), and although the alienation was equitable only {n), — became personally liable for the debts of the deceased, equally as for his own debts: But, nota bene, residuary legatees and next of kin, alienating their beneficial shares and interests, are not within any of these provisions (o). A mere general direction by a testator, that his debts shall be paid, effectually charges them on his real estate (p), — ^although there are certain exceptions to that: Because, Firstly, where a testator (after a general direction for the pay- ment of his debts) specifies a particular fund for the purpose, " the general charge by implication is controlled by the specific charge " {q) ; and, secondly, where the debts are directed to be paid by the executors, and they (the executors) are not also the devisees of the real estate, the presumption is, that the debts are to be paid exclusively out of the assets which come to the executors as Buoh (r) . Sale,--and ^ direction to raise the required money for the pay- mOTtg^e^— ment of the debts, out of the "rents and profits" of the fqrpayment real estate, amounts, in general, to a charge upon the corpus or inheritance, — and therefore authorises a sale or of debts. ()») Small V. mdgeVy, 34 Ch. Div. 379. («) In re Atkinson, 1908, 2 Ch. 307. (o) BUkes V. Broadmead, 2 De G. P. & J. 566. (p) Legh v. Warrington, 1 Bro. P. C. 611. (q) Price v. North, 1 Ph. 85. {r) Cook V. Dawaon, 3 De a. P. & J. 127. ADMINISTRATION OF ASSETS. 199 mortgage of the real estate for that purpose (s), — Secus, if the direction is to pay the debts out of the " annual rents and profits" {t). And where the charge is on the corpus or inheritance, the Court inclines to directing a sale rather than a mortgage, — but will direct a mort- gage, where there are sufficient reasons against a sale (m). A specific lien or dharge upon the lands will, of course, Purohasersand not be affected by a general charge of the debts,— That ^^S'^t~ is to say, — Neither debts by specialty nor simple contract when not debts constitute any lien or charge upon the lands {x), — ^e debts!^ So that a purchaser or mortgagee of the lands, — even an equitable mortgagee thereof {y), — before any action for administration of the real estate has been instituted, — would take free of (and would not be bound to inquire into the existence of) the debts: But if an action for the administration of the real estate has been commenced, and a decree has been made therein, — or if (even before decree) the action has been registered as a lis pendens, and extends to claiming against the real estate, — the pur- chaser or mortgagee would not be safe in completing his purchase or mortgage (2). But none of these risks attach to sales and mortgages of personal estate (a) . Judgment debts may or may not be or become a charge Judgment or lieu on the lands, — Scil., as against a purchaser or and when nS mortgagee of the lands: The law is complicated, — the andhowmade, legislation having been as follows:— UnS°''*''^ (1) By the 4 & 5 W. & M. c. 20 (s. 3), a judgment debt (unless docketed) had no preference in the adminis- tration of the assets, but only ranked pari passu with simple contract debts, — So that the executor might have preferred to such judgment creditor any simple contract creditor ; (2) By the 1 & 2 Vict. c. 110 (s. 19) and 2 & 3 Vict. (») Bootle V. Blmdell, 1 Mer. 232. (t) Baldoelc v. Green, 40 Ch. D. 610. («) Metcalfe Y. Hutchinson, 1 Ch. Div. 691. \x) Holmes v. Holmes, 1907, 2 Ch. 304. (y) British Mutual v. Smart, L. E. 10 Ch. App. 567. (z) Fries T. Frioe, 35 Ch. Dit. 297. (a) Bernj y. Gibbons, L. E. 8 Ch. App. 749, n. 200 THE ORIGINALLY EXCLUSIVE JURISDICTION. Administra- tion under the Judicature Act. 1875 (38 & 39 Vict. c. 77), a. 10 — when estate insolvent. 0. 11, a judgment was required to be registered (and also every five years re-registered) in the Court of Com- mon Pleas, — and otherwise it did not affect subsequent purchasers, mortgagees, or creditors (fe); And, latterly, —by the 23 & 24 Vict. c. 38 (s. 1), the execution also, which had issued on the judgment required to be regis- tered, and to he thereafter put in use within three calendar months; and (2b) By the 23 & 24 Vict. c. 38 (s. 3), the protection which the executor used to have against judgments re- maining undocketed, was extended to judgments remain- ing unregistered ( 1883 : ties contracted icith notice of an act of bankruptcy), to which the debtor is subject at the ■date of the receiving order (or to which he may before his discharge become subject, by reason of any obligation incurred before the date of the receiving order), are provable in the bank- ruptcy, — including even, semble, the damages sustained by the true owner of goods and chattels from the vesting of such goods and chattels in the trustee in the bankruptcy of the debtor by reason of the "order and disposition" clause in the Bankruptcy Act, 1883 (e). And, by s. 30 Section 30. of that Act, the order of discharge releases the bankrupt from all the debts and liabilities which are so provable (even from crown debts) (s. 150 (/)), — other than the debts following, that is to say, — (1) Debts due on recognisances; (2) Debts due for offences against the revenue, — or due on bail-bonds given in respect of revenue prosecutions ; (3) Debts incurred by means of any fraud; (4) Debts incurred ,by means of any fraudulent breach of trust (g) ; (5) Debts and liabilities forborne by any fraud, — in- eluding (under the Bankruptcy Act, 1890 (h), s. 10), debts in respect of affiliation orders, seduction judgments, and divorce decrees. Under s. 37 of the 1883 Act, any provable debt or Section 37. liability (the value of which requires to be estimated) may be declared by the Court to be incapable of fair estirnation, — In which case, it ceases to be a provable debt, and will not be destroyed by the bankrupt's discharge; but such precautionary declaration is indispensable, if the debt or liability is not to be destroyed by the bankrupt's dis- charge (i) . («) Ex parte JECaviside, 1907, 2 K. B. 180. (/) In re Thomas, 21 Q. B. D. 380. (g) Bx parte Coker, L. R. 10 Ch. App. 662. (A) 53 & 54 Vict. 0. 71. (t) Sardy v. Fothergill, 13 App, Ca. 351. 204 Section 40. Sectional. Section 42. Section 38. THE ORIGINALLY EXCLUSIVE JURISDICTION. By s. 40 of the 1883 Act, all debts proved in the btok- ruptcy are to be paid pari passu, — Other than moneys of a Friendly Society (Jt) in the hands of the bankrupt as the duly appointed officer of the society (which are to be paid before all other debts whatsoever); and other thaln the following classes .of debts, — which are to have priority over the other debts, and are inter se to be paid pari passu, — That is to say, — (1) Parochial rates said local rates generally, due from the bankrupt at the date of the receiving order, and which have (within the twelve months next before euch date) become due and payable; Also, {\a) Assessed taxes, land tax, and property or income tax (not exceeding, in the whole, one year's assessment), assessed on the bankrupt up to the 5th day of April next before the date of the receiving order; And (2) The wages and salaties (not exceeding £50 in each case) of clerks and servants for the fowr months next before the date of the receiving order ; and the wages (not exceeding £25 (Z) in each case) of labourers and workpeople for the two months next before the date of the receiving order (to) ; and (under the Workmen's Com- pensation Act, 1906 (w)), the compensation amount pay- able to any workman under the Act. And by s. 41 of the 1883 Act, an apprenticeship premium may (as to a reasonable part thereof) be ordered to be repaid, — according to an old principle of equity (o) . By s. 42, a landlord may distrain for (and thereby be paid in full) arrears of rent (not exceeding six months' arrears), accrued due prior to the date of the order of adjudication; and, by s. 38, a set-off is given in the case of " mutual credits, mutual debts, and other mutual {k) Jones v. Williams, 36 Ch. Div. 573. 7) 51 & 52 Vict. 0. 62, a. 1 ; 60 & 61 Vict. u. 19. m) 51 & 52 Vict. o. 62. «) 6 Edw. VII. c. 58, a. 5, aut-s. 3. o) SaU V. Webb, 2 Bro. C. 0. 38. ADMINISTKATION OF ASSETS. 205 dealings," between the bankrupt and the proving creditor (p) . By s. 9, no creditor of the bankrupt is to have, in re- Section 9. spect of any debt provable in the bankruptcy, any remedy (outside the bankruptcy) against the person {q) of the debtor, or against his property, — nor is he to commence (unless with the leave of the Court) any action in respect of such debt; but a mortgagee's remedy by foreclosure is not affected by any of these provisions {r) . Therefore, generally, where the estate is insolvent, — Rules of proof All debts (including even voluntary bonds (s)) are now ^^^^"^^ payable pari passu in an administration in the Chancery iaapplicable in Division, — Nevertheless, crown debts still retain (in Chancery, effect) their priority (i); and a Savings Bank (m), or a detits!^°™^ Friendly Society {x), still retains its priority; and a (2) Judgment judgment creditor, semble, still retains his priority, — detts, &c. provided his judgment has been obtained against the executor of the deceased debtor (y), or against the ad- ministrator of the deceased debtor (0), — or (if obtained against the deceased debtor himself) has been duly registered (a) . Also, those rules of bankruptcy which (3) Arrears go merely to "swell the assets" (so to speak), — namely, o*rent. the rule as to the limitation of the landlord's right of distress for rent in arrear (6); and the rule as to reputed (4) Beputed ownership (c) ; and the rule as to the avoidance of volun- ownership, &c. tary settlements (d) ; and the rule as to the avoidance of executions for £20, where the sheriff has notice within fourteen days after the levy (e), — and generally of (p) In re Daintrey, 1900, 1 Q. B. 546. (q) BoMUeh v. Mist, 1 P. Wms. 694. ()•) Hardy v. Farmer, 1896, 1 Ch. 904. (s) Ex parte Pottinger, 8 Ch. D. 621. \t) In re Oriental Bank, 28 Oh. Div. 643. («) Savings Banlcs Act, 1891, s. 13. (x) Re Miller, 1893, 1 Q. B. 327. \y) Smith v. Morgan, 5 C. P. D. 337 ; Crawler v. Marvin, 1905, 2 Ch. 490. (a) Williams v. Williams, L. E. 15 Eq. 270. (a) Whitaker v. Palmer, 1901, 1 Ch. 9. (4) Fryman v. Fryman, 38 Ch. Div. 468. (e) Gorringe v. Irwell Co., 34 Ch. Div. 128. (d) In re Gould, 19 Q. B. D. 92. («) Pratt V. liman, 43 Ch. Div. 175. 206 THE ORIGINALLY EXCLUSIVE JURISDICTION. executions not perfected before the date of the receiving order (/), — those rules have (none of them) been intro- duced into the administration in Chancery. Bules of proof in bank- ruptcy that are made applicable in Chancery. (1) Debts, proof of. generally. (2) "Wages and salaries, &c. (3) Bates, &c. (4) Set-off. (5) Interest. (6) Late proofs, &c. (7) Principal and ancillary administra- tions. On the other hand, the preferences which by the Pre- ferential Payments in Bankruptcy Act, 1888 {g), as aidetl by the Workmen's Compensation Act, 1906 Qi), are given to wages and salaries, compensation-amounts for acci- dents, parochial and other rates, and assessed taxes, are applicable in the administration of an insolvent estate (i). And as regards the set-off of debts, — the mutual credit clause in the Bankruptcy Act, 1883, is applicable in Chancery (A;) . As regards interest, a creditor on the estate whose debt bears interest is only entitled to interest up to the date of the judgment for administration (Z); but if there is any surplus, then (under s. 40 of the Bankruptcy Act, 1883) interest at the rate of 4 per cent, per annum on all debts, and at the rate of interest they bear on all interest- bearing debts, is payable from the date of the receiving order (m). Also, generally, so long as there are assets, creditors may come in and prove, not disturbing any prior dividend (w). And there is the like distinction in ad- ministration as in bankruptcy, between the principal administration of assets and the administrations ancillary thereto in foreign countries (o) : That is to say. Each auxiliary local representative observes the rules applicable to the administration within his own jurisdiction, — and once he has satisfied all the debts and duties there, he re- mits the surplus (if any) to the principal administrator; but, of course, the lex loci rei sites is exclusively applic- able to the real estate (including the leaseholds) of the de- ceased (p) . Also, nota bene, in the case of Stock Exchange {/) In re National Corporation, 1901, 1 Ch. 950. (g) 51 & 52 Vict. u. 62. (A) 6 Edw. VII. c. 58. (i) ParUngton v. Heywood, 1897, 2 Ch. 593. [k] Mersey Steel Co. v. Naylor, 9 App. Ca. 434. (Z) King v. Chicle, 39 Ch. Div. 567. (m) In re Duncan ^ Co., 1905, 1 Ch. 307. (n) Sarrison v. Kirk, 1904, A. C. 1. (o) Eames v. Hucon, 18 Ch. Div. 347. \p) Freke v. Lord Carbery, L. R. 16 Eq. 461. ADMINISTRATION OF ASSETS. 207 defaulters, an administration in Chancery may follow upon the Stock Exchange administration (g*). Ill . As regards the Valuation of Annuities and Future (c) Valuation and Contingent Liabilities. — By s. 37 of the Bankruptcy ^f^aunuities, Act, 1883, the trustee in the bankruptcy is to make an estimate of the value of any provable debt or liability which does not bear a certain value; and (on appeal from the trustee's estimate to the Court) the Court may (with- out a jury) assess the value, or may declare the debt or liability incapable of being fairly estimated: Therefore the value of an annuity payable to a female, for her life (r) or during her widowhood (s) or dum casta fuerit {t), must be estimated, — due weight being of course given to the possibility of cesser (when there is a possi- bility of cesser) during the life of the annuitant {ii) ; and these rules apply to an administration in Chancery {x) . Also the estate of a deceased insolvent may (under Admmistra- s. 125) be wholly wound up in the Bankruptcy jurisdic- ^ent "estates — tion {tf) , — And the necessary order in that behalf may may te in be made at any time after (or even now before (z)) the Bankruptcy »■' in 11 ci ^^' Division, or m expiration oi two months from the date oi the grant of the County probate or of letters of administration, — Provided that ^°^^' a legal personal representative has been appointed (a), and provided also that no administration proceedings have meanwhile been taken in the Chancery Division: Which latter proceedings (if they have been already commenced) may, however, for good cause, be transferred, on the application of a creditor (&), — or without any such application (c), — into the Bankruptcy Division. The proceedings may also be transferred into the County Comt, County Court (either before or after decree (), — just as, conversely, money in Court will not be paid out to the executor for the purpose of giving him the right of retainer (c) . Also, the right of No retainer in retainer does not exist, if the estate is administered in the admiuSiS Bankruptcy Division; and it is lost, if the administration tion. (pending in the Chancery Division) is transferred into the Bankruptcy Division (d) . The executor's retainer is limited to such assets as come to his hands during his lifetime ; but if the executor asserts. (r) Davies v. Farri/, 1899, 1 Ch. 602. (s) In re Gilbert, 1898, 1 Q. B. 282. (t) Dyer, 2a, ISIb. («) Turner v. Watson, 1896, 1 Ch. 925. (x) Lee T. Binm, 1896, 2 Ch. 584. \y) Talbot T. Frere, 9 Ch. Div. 568. (z) Birt V. Birt, 22 Ch. Div. 604. («) Pulman v. Meadows, 1901, 1 Ch. 233. (4) Molontj T. Brooke, 45 Ch. Div. 569. («) Trevor v. Hutchins, 1896, 1 Ch. 844. (ct) Jones V. Williams, 36 Ch. Div. 573. 222 THE ORIGINALLY EXCLUSIVE JURISDICTION. No retainer by heir or de- visee, — in the general case, at least. the right in his lifetime, and then dies while the retainer is incomplete, his executor may afterwards insist upon the right (e). Also, the right of retainer (where it exists) extends to include damages for breath of contract, whea such damages are measurable (/); but where A. (or his estate) is liable to B. for dama-gee (say, in respect of A.'s neglect of repairs), and B. owes A. (or A.'s estate) any debt (say, in respect of moneys lent), — aad the. debt is statute-barred, the damajges may not be applied (Seil., retained) in satisfaction of the debt (g) . An heir-at-law or devisee has no retainer out of the lands descending or devised, — except, possibly, in respect of a specialty debt in which the heirs are specially bound (h) ; Also, the better opinion is, that the Land Transfer Act, 1897, vesting the real estates of a deceased debtor in his legal personal representative, has not ex- tended the rig'ht of retainer to these real estates (i) . Eetainer,— In a Case where Brown was the legal personal repre- (tatonTy*'""^' tentative of an estate X., and also of an estate Z.; and X. was indebted to Z., — Brown was entitled, and also cow- sometimes) be compulsory. pelldble to retain out of X. for the benefit of Z. (fc); but where the debt owing by X. to Z. had arisen in respect of a breach of trust (the deceased owner of X. being the delinquent trustee of Z.), — and Brown was the legal per- sonal representative of X., — and was (as such) entitled to accept (if he chose to accept) the trust of Z., hut was also free to decline to accept that trust, and did decKne it, — In such a case, Brown was not compellable to retain out of X. for the benefit of Z. (l). Wilful default, The limit of the executor's liability is, in general, the liabmty'for! assets which have come to his hands (or to the haJids («) Norton v. Compton, 30 Ch. Div. 15. (/) Zoane v. Casetj, 2 W. Bl. 965. (si) Dingle v. Coppen, 1899, 1 Ch. 726. (A) Davidson v. Illidge, 27 Ch. Div. 478. (i) Boldw V. JVilUams, 1904, 1 Ch. 52. (/c) Sander v. Heathfield, h. R. 19 Eq. 21. (0 Ridley v. Ridl^, 1904, 2 Ch. 774. ADMINISTRATION OF ASSETS. 223 of any one on his behalf) ; but property is deemed to have come to his hands if it is money owing by himself to the estate (m), — or, semble, if it was his duty to have retained the amount thereof (as a debt owing to the estate) out of the share of the estate coming to any debtor-legatee («), — Scil., because he is liable for what (but for his own wilful default) he might have received (o) . It is by no means easy, however, to prove "wilful default" against an exe- cutor (p), — that bein^ something more than a mere breach of trust (q) ; and in order to charge him with wilful de- fault, the pleadings must contain an allegation of the wilful default (specifying one instance thereof at the least), — And then, if the allegation has not been disjjroved at the hearing, but merely the ordinary administration judgment taken, that judgment may afterwards be added to, — Scil., whenever the wilful default is made to appear (r) . Where the residuary personal estate is bequeathed to Acoountatility , 1 , J • j7 j7 ■ jj • - of executors several legatees, conUngenUy on their attaining respec- after dis- tively their affes of twenty-one years, — It frequently tributionof happens, that the executors pay some of the legatees their shares of the residue (Scil., upon their respectively attain- ing their ages of twenty-one years), and retain in their hands the remaining shares of the residue (Scil., until the other legatees successively attain their ages of twenty- one years): and if (after such partial distribution of the residue) the unpaid residuary legatees (or some of them) institute proceedings against the executors, for the ad- ministration of the estate, — The rule is, that the costs of the action must, in general, be borne by the shares coming to the plaintiffs, and by those shares exclusively; but if it appears, that the executors have made the distribution upon an erroneous principle, — so that their accounts are erroneous, — then the costs of the action will not be thrown («i) Ingle V. Richards, 28 Beav. 366. («) Taylor Y. Wade, 1894, 1 Ch. 671. (o) Job V. Job, 6 Ch. Div. 562. [p) Cooke V. Stevens, 1898, 1 Ch. 162. (q) In re Wrightson, 1908, 1 Ch. 789. (/) Smith V. Armitage, 24 Ch. Div. 727. 224 THE ORIGINALLY EXCLUSIVE JURISDICTION. exclusively upon the shares coming to the plaintiffs, but will be declared to be payable out of the entire residuary estate, — So as to make the executors personally liable for the proportion of such costs which would have been paid out of the shares that have been distributed, if such -ihares had not been distributed (s), — but the paid residuary legatees are not called upon (in such a case) to refund anything. Also, generally, where one of several resi- duary legatees (or next of kin) has received his share of the estate in full, and there is subsequently a diminution of the estate remaining undistributed, — whether the diminution arises from some devastavit (t), or from any fortuitous event (m), — the unpaid residuary legatees can- not call on the paid residuary legatee to refund; and an appropriation is (for this purpose) on the same footing as an actual payment (x) . What time bars the right to adminis- tration. Actions for the administration of the estates of deceased persons can- only be instituted by persons whose claims to recover are not barred by any statute of limitations, — Therefore, in the case of a creditor by simple contract, only within six years from the time that his debt was demandable (y) ; and in the case of a judgment creditor, — whether the judgment is a charge on the lands or not, only within twelve years (2) ; and in the case of legatees, only within twelve years after a " present right to receive " theii' legacies (a) {i.e., to bring an action at law for them (6)) has accrued, — and there are the like limits in the case of an intestate's estate (c). 'The liability of the estate may, however, be kept alive, — Scil., by a part pay- ment or written acknowledgment on the part of the exe- cutors; and (as regards the personal estate (d), — although (s) Frere v. Winslow, 45 Ch. DiT. 249. {t) I'eterson v. Peterson, L. R. 3 Eq. 111. (w) Fenwick v. Clarke, 4 De G. F. & J. 240. {x) DoicseltM. Culver, 1892, 1 Ch. 210. (j/) Barnes v. Glenioii, 1899, 1 Q. B. 885. (z) Jciy V. Johnstone, 1893, 1 Q. B. 189. (a) Fianav. Moore, 1891, 3 Ch. 119. («) McLauffhlin v. Feniij/, 1906, 1 Ch. 265. (c) 23 & 24 Vict. c. 3H, s. 13 ; Sly v. £take, 29 Ch. D. 964. {U) Dick V. Fraier, 18^7, 2 Ch. 181. ADMINISTRATION OF ASSETS. 225 not as regards also the real estate (e)), — by the written acknowledgment of any one even of the executors. An illegal trust, — although (where executed in part) Miscellaneous it is not revocable (by the settlor, or by his legal personal ^dminitra- representative), and remains good therefore as between tioaof. the trustee and the cestui que trust (/), — will not be ad- ministered by the Court {g) . And as regards a trade union, — being one which is illegal by the common law, and which is only made legal by the Trade Union Acts (h), — the Court may not administer, — but may make a declara- tion (i) . And as regards the estates of a convicted felon, — Scil., his fee simple estates, and not also his estates tail (jfc), — the administration of these is now committed to an administrator appointed under the Act 33 & 34 Vict, c. 23 (Z). And in respect of the estates of officers and soldiers dying in actual service, special provisions have now been made by the Regimental Debts Act, 1893 (to). Where any property is settled subject to some mort- Property gage thereon, the rule is, that the tenant for life must, tomort™'''''^— out of the rents and profits or income, keep down the adjastmentof interest on the mortgage (n) . And this rule extends to S^***^* f^*'^®" include a legacy charged on the inheritance (o); and it and remain- includes also a licence-compensation charge (p), an estate German, duty charge (q), and a street-improvement charge (r), — and, in fact, every paramount charge of a (more or less) permanent nature (s) : Also, when two estates are included in one devise, and the charge is on one only of the de- {«) Astbury v. Astbury, 1898, 2 Ch. 111. (/) Thomson t. Thomson, 7 Ves. 470. (g) Barclay v. Fearson, 1893, 2 Ch. 154. (h) Russell V. Amalgamated Carpenters, 1910, 1 K. B. 506. (i) Cope T. Crossingham, 1908, 2 Ch. 624 ; 1909, 2 Ch. 148 ; Osborne's case, 1911, 1 Ch. 540. (*) Z« re Gaskelland Walters, 1906, 2 Ch. 1. (?) Carr v. Anderson, 1903, 2 Ch. 279. (m) 5>i & 57 Viet. c. 5. {«) Bute [Marquess) v. Ryder, 27 Ch. D. 196. (o) Makings T. Makings, 1 De G. F. & J. 355. \p) Smith V. Dodsworth, 1906, 1 Ch. 799. {}) Wyn'ery. Orhbar, 1908, 1 Ch. 136. (V) Scrivener V. Aldridge, 1907, 1 Ch. 67. <«) Monywood Y. Honywood, 1902, 1 Ch. 317. S. Q 226 ' THE ORIGIN ALLT EXCLUSIVE JURISDICTION. vised estates, and the rents and profits of that estate are insufficient to pay the interest on the charge, the rents and profits of the other estate must (ordinarily) come in aid of the charged estate {t). And if the mortgage in- cumbrance or charge is an annuity (terminable with the life of the annuitant), it must be valued or capitalised, —So that if the tenant for life pays the whole annuity (yearly as it accrues due), he will be entitled (as against the remainderman) to a charge on the settled property for the amount and amounts so paid (m) ; and conversely, the remainderman, where he is saddled with any arrears of the life-tenant (x) : But, nota bene, in all these cases, the . annuity is a debt of the testator or settlor himself, — and (as such) is payable out of his estate before the beneficiaries acquire any title at all. Of course, the tenant for life (entitled to such a charge) will not be entitled (during his own life) to any interest on the charge (y) ; nor ;to realise the charge by foreclosure of the estate, — but only to realise it by the sale of some part of the estate (z) : Also, nota bene, there are many other cases in which the like equitable adjustments will be made, — and the principle of the thing has (in some instances) been recognised and adopted by the Legis- lature even (a) . — ^ . . z z- r ' (t) Frewen v. Law Life Assurance Society, 1895, 2 Ch. 511. (m) Tnwnson v. Sarrisow, 43 Oh. D. 55. (x) Roe V. Fog son, 2 Mad^. 457. («/) Sowe V. Eingscote, 1903, 2 Ch. 69. (s) Barlie v. Williamson, 25 Beav. 622. \n) Eowe V. Gough, 1909, A. C. 64 (Irish Laud) ; and 8 Edw. VIT.- c. 28, ss.'15, 16 {English Land). 227 CHAPTER XV. MARSHALLING ASSETS. The order in which the divers assets of the deceased are The general stated, in the preceding chapter, to be applicable for the principle of payment of the debts, regulates the administration of such assets only as between or among the testator's own representatives devisees and legatees, — and does not affect the rights ,of the creditors themselves, who may resort (indiscriminately) to all or any of the funds to which their claims extend. And it might have happened, there- fore (in .times preceding the 3 & 4 Will. IV. c. 104), that a creditor having a right to proceed against two or more funds, proceeded against the fund which was the only resource of some other creditor, — and equity would, in that case, have held, that the creditor who had the two funds, should not (by resorting to the fund which was the only resource of the other creditor) disappoint that other : And accordingly, the Court permitted the creditor who had but the one fund, to stand (to the extent of Ms fund) in the place of the other creditor against the other fund, — the object of the Court being, to see that all the creditors were satisfied, so far as (by any arrangement consistent with the nature of the several claims) the assets permitted (a), — And this was called the " marshalling of assets." I. Marshalling as between Creditors. — Simple contract (i) Marshall- creditors had no claim originally against the real assets, — "^^^ tetweeu unless where these assets were charged with (or were de- vised upon trust for) the payment of the debts; and in the absence, therefore, of such a charge or devise, specialty creditors might have resorted to the personal estate, in priority to, — and to the real assets in exclusion of, — (a) AUrieh v. Cooper, 8 Ves. 382. q2 ^28 THE ORIGINALLY EXCLUSIVE JUKISDICTION. simple contract creditors: Therefore, equity compelled the specialty creditors to resort in the first place to the real assets — so as to leave the personalty for the simple contract creditors; and if the specialty creditors had ex- hausted the personal assets, the simple contract creditors were put in their place, against the real assets, as far as the specialty creditors had exhausted the personal assets (b). Also, if the vendor of an estate (the contract for which had not been completed by the purchasing testator in his lifetime) was afterwards paid his pur- ohase-money out of the personal assets of the testator, the simple contract creditors were put in the vendor's place to the extent of that vendor's lien on the estate sold and as against the devisee of that estate (c) . Marshalling of la. Marshalling as between secured creditors. — The prinSpleTof"- doctrine of marshalling as between creditors was enforced only as between the creditors of the same debtor, — some- times called the "common debtor" (d); and in the " marshalling of securities," the Court required, that the one creditor should have had two charges, and the other creditor but one charge on the property: Arid accord- ingly, in Webb v. Smith (e), where the defendant (an auctioneer) had a lien ,on the sale-proceeds of a brewery, in respect ,of a certain debt which was owing to him; and he sold ioertain furniture, and paid over the ■^vhole sale- proceeds thereof to the owner of the furniture, — leaving his lien on the sale-proceeds of the brewery unreduced, — Whereby the plaintiff, who had a charge on the brewery subsequent to the defendant's lien thereon, lost the benefit which would have accrued to him (the plaintiff) if the defendant had applied the proceeds of sale of the furni- ture towards the discharge of his (the defendant's) lien, —The Court said, that the plaintiff had no right to blame the defendant for that, — Scil., because the defendant had only one lien (and not two liens) for bis debt. abo, general pules re- garding. And generally, as regards the marshalling of securities, (i) Aldrieh v. Cooper, supra, [c) Selhy v, &%, 4 Rnss. 336. (rf) Ex'parte Kendall, 17 Ves. 520. (e) 30 Ch. Div. 192. MARSHALLING ASSETS. ' 229 the rules were (and are) as stated by Lord Hardwicke in Lanoy v. Duke of Athole (/), as follows, that is to say: — Firstly, if a person having two real estates mortgages both estates to A., and afterwards one only of the estates to B., — The Court, — whether B. had notice of A.'s mort- gage or not, — directs A. (but always without prejudice to A.) to realise his debt out of that estate which is not in mortgage to B., — So as to leave the one estate which is in mortgage to B. to satisfy B., so far as it goes; But, Secondly, the marshalling of securities as between A. and B., is not enforceable by B. to the prejudice of C. (a third person (g>)). All which rules are applicable also as against a surety, to whom (on payment of the debt) A. may have assigned his security (h) . Moreover, the Court will apply these rules of marshalling securities, in favour also of the- divers volunteers, who (whether as devisees or other- wise) claim title through or under the mortgagor: That is to say, — Where an estate A. is primarily liable for part of a mortgage debt; and that estate and also another estate B. (whether of the same testator (i) or of the same intestate (k)) are pro rata liable for the remaining part of the mortgage debt,-^If one of the estates is sold, and the net sale-proceeds are applied in discharging- the entire mortgage debt, — In such a case, the Court inter- poses, and (as between the respective beneficiaries who, before the sale, were entitled to the A. estate and to the B. estate respectively) arranges the matter equitably, by a rateable apportionment of that part of the mortgage debt which was charged on both the estates: And seeing that A. must exclusively bear the whole of that part of the mortgage debt for which A. was primarily liable, — - Therefore, in the apportionment as between A. and B.,. the value of A. (in this competition with B.) will, semble, be taken after deducting the part of the mortgage debt, which is to be borne exclusively by A. (/) 2 Atk. 446. Iff) Flint V. Howard, 1893, 2 Ch. 54. (A) South V. Bhxam, 2 Hem. & Mill. 457. (j) Be Rochefort t. Bawes, L. R. 12 Eq. .540. {k) Lipscomb y. Lipscomb, L. R. 7 Eq. 501. 230 THE ORIGINALLY EXCLUSIVE JUKISDICTION. sales entitled «mder the' will, — the general principle of, (2) Marshall- 11. Marshalling as between Beneficiaries. — In this SI beneflci-™ g^oup of cases, ijt IS Usually by reason of the disturbing action of the creditors of the deceased, that the question of marshalling arises,^ — although occasionally it may arise from other causes: And, firstly, where it arises from the disturbing action of the creditors, the general principle of marshalling, as between the beneficiaries, may be arrived at in this way, viz., — 'Taking the various properties speci- fied on p. 212, supra, in the order of their respective lia- bilities to the payment of debts as stated on that page, and substituting in the same order the various persons to whom these various properties would go if there were no debts to pay, — and to whom they do in fact go, so far as they are not exhausted by the payment of the debts, — We obtain the following list of the persons entitled to par- ticipate in the property of the deceased, that is to say, — (!) The next of kin or residuary legatees; (2) The devisees upon trust; (3) The heir-at-law; (4) The charged devisees (specific and residuary); (5) The pecuniary legatees; (6) The devisees (specific and residuary) and the specific legatees; (7) The voluntary appointees by deed or will; and (8) The widow. Now from that list of beneficiaries, the general rule of •marshalling is derived in this way, namely, — If any bene- ficiary in the list is disappointed of his benefit under the will through the creditor (in effect) seizing upon the fund intended for such disappointed person, then such person may recoup or compensate himself for that disappointment (to the extent thereof), by going against the fund or funds intended for (and in that way similarly disappointing in .his turn) any one or more of the beneficiaries prior to him- self in the list; and such secondly disappointed person or persons may (in his or their turn) do the like against those prior to him or them, — So that, eventually, the next of kin or (as the case may be) the residuary legatees' have to bear the disappointment without any means of redress, — they having, in fact, no title to anything, save what MARSHALLING ASSETS. 331 j'emains after a due administration of the estate (I) : But nobody may go against any one who is posterior to him- self on the list; and persons who occupy the same rank in the list contribute pro rata, as between or amongst themselves . And, -Firstly, as regards the widow's paraphernalia, — The general Although that (with the exception of necessary wearing aOTili^tion"of. apparel) is liable for her deceased husband's debts, still widow'spara- the widow will be preferred (in respect thereof) to a general pterna^pre- legatee, — and will be entitled therefore to marshal assets, general legacy, in all cases in which a general legatee would be entitled to do so (m) ; and (on principle) a widow, as to her parapher- nalia, is entitled to precedence also over specific legatees and devisees {n), — and, in fact, to rank next after creditors (o). And again, if an heir-at-law has paid any debts which Eight of heir ought to have been paid, first, out of the general personal lands, estate; and, secondly, out of lands subject to a trust or power for their payment, — He may have the assets mar- shalled in his favour, as against those two funds, — but not, of course, to the prejudice of pecuniary legatees; and still less to the disappointment of specific legatees (^j) . So also, a devisee of lands charged with the payment of Devisee of debts, — paying any debts whilst any of the previously wShdebtef^ liable property remains unexhausted, — may have the assets marshalled in his favour, and to stand in the place of the creditors, — ^so far as regards, first, the general personal estate; second, land subject to a trust or power for raising the debts; and third, lands descending to the heir {q},— and a residuary devisee stands for this purpose in the same Position of a position as a specific devisee {r) . . ^ev^e^'' Pecuniary legatees, if the personal estate out of which Against whom TlftftllTlTa.TV they are to be paid has been exhausted by the creditors, legatees may marshal. (l) Baines v. GhadwieJc, 1903, 1 Ch. 250, on p. 2S8. (m) Tipping v. Tipping, 1 P. W. 730. (n) ProbertY. Clifford, Amb. 6. (o) See and consider Masson v. Be Fries, 1909, 2 K. B. 831. (p) Hanbn v. Roberts, Amb. 128. (q) Harmood v. Oglander, 8 Ves. 106. (»•) Bensman v. Fryer, L. E. 3 Ch. App. 420 ; Farquharson v. Flayer,- 3 Ch. Div. 109. 232 THE ORIGINALLY EXCLUSIVE JURISDICTION. Specific legatees ajid devisees, — contribute rateably are entitled to be paid out of lands which descend to the heir (s), and out of lands devised subject to the debts {t), ^-but not, of course, out of lands comprised in a residuary devise (m), or specific devise (x). And as regards specific legatees and devisees (including residuary devisees), these, if called on to pay any debts of their testator, ipay have the whole of' his other property (real and personal) mar- shalled in their favour, — so as to throw the debts (as far as possible) on the other assets which are antecedently liable (y) ; and a specific devisee (including a residuary devisee) and a specific legatee contribute pro rata, to satisfy the debts of the testator which the property ante- cedently liable has failed to satisfy (z) . If specific de- risee or legatee take subject to a burden, he cannot compel the others of the same class to contribute. If, however, the subject of any specific devise (includ- ing a residuary devise) or specific bequest is liable to any particular burden of its own, the devisee or legatee must alone bear it: And, in the case of a specific legacy, the title of the legatee thereto (once the executor has assented to the bequest) commences as from the date of the testator's death, — and the legatee bears as from that date, and in exoneration of the residuary personal estate, the outlay incident to the legacy for (say) upkeep (a) : Also, in the case of a specific (or residuary) devise of land bought by the testator but not paid for, the devisee cannot call on the other devisees (or on the specific legatees) to pay a proportion of the unpaid purchase-money (6) ; and where a specific (or residuary) devise is charged with a particular legacy or portion, and it is necessary to resort to the land comprised in the devise for the payment of the debts, the devisee is liable, in total exoneration of the legatee or portionist. (*) Sproule V. Frior, 8 Sim. 189. (*) Sickard v. Barrett, 3 K. & J. 289. (m) Lancejield v. Igguldm, L. K. 10 Ch. App. 136. \(c) Knight \. Enight, 1896, 1 Ch. 499; Sniithv. Smit, 365. (y) Broadwoodv. Lyons, 1911, 1 Ch. 277. (2) Tomis V. Each, 2 Coll. 490. (a) In re Pearce, 1909, W. N. 94. (J) Emuss V. Smith, 2 De G. & Sm. 722. 1899, 1 Ch. MARSHALLING ASSETS. 233 Secondly, where the marshalling arises otherwise than Marshalling from the disturbing action of the creditors, — as, e.g., between lega- where some of the legacies are charged on the real estate, certain lega- and the others not, — The marshalling as between the oiesare legatees arises simply from the presumption, that the real estate and testator wishes, that all the legacies shall (if possible) be ti»e others are paid: And in order to understand this, it must be borne "° ^"^ ^^^^ in mind, that {even to the present day) legacies are not payable out of real estate directly, — unless the testator has charged his real estate with their payment, — there never having been any statute which does for legacies what the statute 3 & 4 Will. IV. c. 104, has done for simple contract debts. Therefore, if a testator leaves certain legacies payable only out of his personal estate, and certain others which (in aid of his personal estate) he charges on his real estate, — equity will (in case the per- sonal estate is insufficient to pay all the legacies) marshal the legacies, — So as to throw those charged on the real estate entirely on that estate, in order to leave more of the personal estate for the other legacies (c) . It is important therefore to inquire, what amounts to Legacies, a charge of legacies on the real estate: And, Firstly, the to b" charged intention to create such a charge is not readily pre- on real estate, sumed {d) : But, Secondly, the charge may be either express or implied, — ^and an implied charge arises, if (after the gift of the legacies) the testator gives {e.g.) "all the residue of his real and personal estate" to specified persons, — or where the will directs, that any legacies which fail shall fall into the "residue" (e); and the word "residue " need not be used, if there are other words to the like effect (/) . But, nota bene, under such a g^ft of residue, the real and personal estates comprised therein are not liable, as a mixed fund (proportionately and rateably), to the payment of the legacies, — the per- sonal estate still • being, in general, under the primary, liability, and the real estate being only liable for the deficiency (if any) of the personal estate (gf). And (c) Bonner v. Sonner, 13 Ves. 379. (d) Hassel v. Hassel, 2 Dick. 527. (e) Bray v. Stevens, 12 Ch. Div. 162. (/) Bawden v. Cresswell, 1894, 1 Ch. 693. iff) Greville V. Browne, 7 H. L. Ca. 689; Soierts v. Molerts, 1902, 2 Ch. 834. 234 THE ORIGINALLY .EXCLUSIVE JURISDICTION. Where a further nota bene, that where the charge of a legacy cm reai^eSIte*^ ^V^^ '■'©S'l estate fails to affoct it (in consequence of an fails, it will event happening subsequently to the death of the asif it were^*^ testator),— as the death of the legatee before the time of not so charged, payment, — The Court will not treat the legacy as not so ^°T fa-^^ charged, in order merely to make the legacy transmis- missihle. sible (h) . Assets would never be marshalled in favour of charities, — Scil., because of the Mortmain ActJ as ex- plained on pp. 76, 77, supra, — excepting in the excep- tional cases in these same pages referred to. (A) Frowse v. Abingdon., 1 Atk. 482. 23.5 definition of. CHAPTER XVI. MORTGAGES. In the case of land, a legal mortgage may be defined as a Legal mort- debt secured on the land, the legal ownership of the land E(^tMe ° becoming vested in the creditor, and the equitable owner- mortgage,- ship of the land remaining vested in the debtor; and an equitable mortgage may be defined as a debt secured upon an equitable estate or interest in the land, or secured by an equitable charge only on the land, — or by some other assurance whereby the legal estate does not pass, — or secured by a deposit simply of the title-deeds (or other the documents of title) relating to the land. There may, of course, also be mortgages of personal What pro- estate; and, in fact, all kinds of property are, as a rule, mortgageable- mortgageable, — hereditaments, whether corporeal or in- corporeal; and personal estates, whether in possession or in action, — ^and whether the estate or interest in the pro- .perty be the legal estate or the equitable estate, or be for life or for the absolute interest, and whether it be a vested, expectant, or contingent interest. But there are certain and what kinds 01 property which, for special reasons, are not mortgageable: For example, the profits of an ecclesi- astical benefice are (by the 13 Eliz. c. 20) not capable of being charged, — either directly (a), or indirectly (6); and this prohibition extends to pew-rents (c), and to the pensions of retired incumbents (d). However, under the provisions of particular statutes, ecclesiastical benefices may (to a limited extent) be •charged, — Scil., for rebuilding and repairing the rectory- («) M'Bean v. Deme, 30 Oh. Biv. 520. (b) Hawkins v. Galhereole, 1 Jur. N. S. 481. (c) In re Zeveson, 8 Ch. Div. 96. {d) Gathereole t. Smith, 17 Ch. D, 1 ; 34 & 35 Viot. u. 44. are not ? 236 THE ORIGINALLY EXCLUSIVE JURISDICTION. Mortga^fes by compames, — of their properties. house or vicarage (e) ; and loans made by the Governors of Queen Anne's Bounty (on the security of the endow- ments of the benefice) are valid, — 8cil., where made in accordance with the relevant Acts (/) . The estates of a charity also are, in general, not mortgageable, — save with the previous consent of the Charity Commissioners {g), —or (in the case of schools) of the Board of Education(^). Also, the assignment of certain classes of property being void on the ground of public policy, a mortgage of them would be equally void {i), — although they may (subject to leaving enough to satisfy the demands of public policy) be got at under the Bankruptcy Act, 1883 (fc), — usually, at least: And, of course, any property which is given for an estate. or interest expressed to be defeasible on any attempt to mortgage it, is not mortgageable; and the separate property of a married woman, which she is restrained from anticipating, is (of necessity) not mort- gageable, — 8cil., unless the Court should (for the specific- purpose of the mortgage) lift off the restraint, under s. 39 of the Conveyancing Act, 1881 {I). But, nota bene, re- strained separate estate (m), or retired pay {n), once actually paid or received, is mortgageable. As regards public companies, — The properties of the company may be mortgageable ; and yet, if the company has no power to borrow. Or only a limited power to do so., any mortgage, — or (as the case may be) any mortgage in excess of the limited power, — would be void as being ultra vires; and this rule is applicable, whether the company is a public company properly so called (o), or is a com- pany merely incorporated, — Sail., under the former Com- panies Acts (p), or now under the Companies Consolida- tion Act, 1908 (g). However, an ordinary trading com- ic) 51 & 62 Vict. c. 20. (/) Lidbetterw. Batch, 1907, 1 Ch. 404. [g) Fell V. Official Trustee, 1898, 2 Ch. 44. (h) Whittle's case, 1907, 2 Ch. 486. (t) VE-ttrangev. V Estrange, 13 Beav. 281. [k) In re Ward, 1897, 1 Q,'. B. 266. (Vj Be Milner's Settlement, 1891, 3 Ch. D. 547. {m) DreselY. Ellis, 1905, 1 K. B. 574. (re) Jones S; Co. v. Coventry, 1909, 2 K. B. 1029. (o) Wenlockv. River Dee Co., 10 App. Ca. 354. \p) Ashbury Co. v. Biche, L. R. 7 H. L. 6.53. {q) SEdw. Vir. 0.-69. MORTGAGES. 237 pany (r), — ^and even a public company (s), — may borrow for any legitimate incidental purpose of the company, — and may, therefore, give {e.g.) a new mortgage by way of providing for a valid existing mortgage, where the existing mortgage is being enforced adversely to the interests of the company {t). But, nota bene, a limited company (unless it was a railway company) could not have borrowed on irredeemable debentures, — but may now do so (m). Where a company has the power to borrow, and mort- "^^%- gages its " undertaking," the mortgage extends not to the moitgageof. thing itself, but to the produce or profits thereof (includ- ing the sale-prooeeds of its surplus lands, if any (a;)); and such mortgages confer, pf course, priority over the general creditors («/) . And as regards "calls," not only calls already made (0), but also "future calls," — Scil., up to the date of an order for the winding up of the com- pany (a), but not after that date (fe) or after the commencement of the winding up (c), — may be mort- gaged; but calls "which can only be made in the event of (and for the purposes of) the winding up, cannot be mortgaged at all (d) . By the old common law, a mortgage was an estate upon Mortgage at condition, — the condition being that, on payment by the common law, , mortgagor (at a time and place certain) it should be lawful for him to re-enter; and immediately on the mort- gage being made, the mortgagee became (subject to the condition) the legal owner of the land with a right to immediate possession (e) : And if the condition was (in due course) performed, the mortgagor re-entered, — and usually, obtained a re-conveyance; but if the condition (r) General Auction Co. v. Smith, 1891, 3 Ch. 432. (s) Stagg v. Meduay Navigalion, 1303, 1 Ch. 169. {t) Bannatyne v. Melrer, 1906, 1 K. B. 103. (m) 8 Edw. VII. c. 69, 8. 103. (ic) Gardner v. L. C. D. Rail. Co., L. R. 2 Ch. App. 201. («/) In re Zixkeard, cf-c. S. C, 1903, 2 Ch. 681. (z) In re Sonkey Brook Co., L. E. 10 Eq. 381. (a) In re Pyle Works, 44 Ch. Div. 534. (J) In re Streatham Estates Co., 1897, 1 Ch. 15. (cl Johnson V. Spraits Patent, 1898, 2 Ch. 149. 'd) Bartlett v. May/air Property Co., 1898, 2 Ch. 28. '«) Doe d. Eoylance v. Lightfoot, 8 Mee, & "W. 633. 238 THE ORIGINALLY EXCLUSIVE JURISDICTION. was not performed, the mortgagee's estate became abso- lute, the legal right of redemption being then lost for ever. Mortgagor's equity to redeem, not- withstanding forfeiture at law. Mortgages, an exception to tbe maxim, mochis et eon- ventio vineunt legem. "Once a mortgage mortgage." The harshness of the ,old common law in this respect was softened by Courts of Equity: Which Courts (leaving the legal effect of the transaction unaltered) declared it to be against conscience, that the mortgagee should retain as owner what was intended as a mere security, — And accordingly, these Courts adjudged, that the breach of the condition should be relieved against, — so that the mortgagor, although he had lost "his legal right to redeem," should nevertheless have " an equity to redeem," on payment (within a reasonable time) of the principal interest and costs: In other words, when the legal right to redeem was gone, there arose an equity to redeem (/) . And equity adjudged, that the legal maxim, '^ modus et conventio vineunt legem" was inapplicable to mortgages, — That is to say, the debtor could not, — even by the most solemn engagement^ entered into at the time of the loan, although, by subsequent bargain, he' might {g), — preclude himself from his equity to redeem; and it was established, as a principle not to be dei^arted . f rom, that "once a mortgage always a mortgage," — In other words, that an estate could not at one time be a mortgage and at another time cease to be so by one and the same deed: And therefore, whatever clause or covenant there might be in the conveyance, yet if the intention of the parties was; that su6h conveyance should be a mortgage only, a Court of Equity would so construe it (h). Also, a conveyance,, although absolute in terms, if shotcn to have been in- tended as a security only, would be redeemable as a security (i), — So much so that a true beneficial purchase by a, solicitor from his client (if it was too beneficial for the purchaser) would be treated as a mortgage onh% and redeemable accordingly (fe). "Clog" on redemption, - Nor may the equity of redemption be "clogged" (i.e., (/) Williams V. Mori/an, 1906, 1 Ch. 804. {ff) Lisle V. Beeve, 1902, A. C. 4fil. (A) Salt V. Northampton (Marquess), 1892, A. C. 1. (i) Fureellx. Maciiamara, 14 Ves. 91. (A) Fearem v. Sanson, 28 Beav. 598. MORTGAGES. 239 unduly fettered) by anj^ restrictive provisions (I) : But what is, and the so-called " clog" is sometimes parcel of the obligation ■wtatisnot? itself, — In which latter ease it is perfectly good (m), — unless of an unconscionable character (n) . And, generally agreements between a mortgagee and his mortgagor which do not "clog" the equity of redemption are good, — For example, a right of pre-emption given to the mortgagee, in case the mortgagor should proceed to a sale of the mortgaged property (o) ; or an agreement not to call in the principal moneys (for a specified number of years'), so long as the interest is punctually paid (p) ; or an agree- ment (in the mortgage of a public-house) that the mort- gagor shall take all the beer to be consumed in the house from the mortgagee (q) . Mortgages must be distinguished, of course, from abso- ConTeyanoe lute bond fide sales, accompanied with a collateral agree- re-pm-chiSelu rnent of re-purchase by the mortgagor within a stipulated mortgagor. time; and the collateral agreement may be either intro- duced into the agreement for sale at the time, or may be made at a subsequent period . And whether any particular ciroumstances transaction is a mortgage properly so called or is a sale distinguishing with such right of. re-purchase, depends on the special frSaasafe circumstances of each case, — ^parol evidence being admis- with right of sible to show, that what (on the fade of the deed) is an absolute conveyance, was intended to b© by way of security only(r): And if {e.g.) the money paid would be grossly inadequate as the price for the absolute pur- chase of the estate, — or if the grantee was not let into immediate possession of the estate, or accounted for the rents to the grantor, and only retained an amount equi- valent to his interest (s), — The conveyance would be deemed to be by way of security only. And nota bene, (l) Carritt v. Bradley, 1903, A. C. 253 ; JB. S. A. Co. v. Be Bems, 1910, 1 Ch. 354 ; 1910, 2 Ch. 602. {m) Rice v. Noakes, 1902, A. C. 24. («) Santley v. Wilde, 1899, 2 Ch. 474. (o) Orhy y. Trigg, 9 Mod. 2. (p) Eeine T. Biscoe. 8 Ch. Div. 201 . \q) Biiiga v. Eoddinott, 1898, 2 Ch. 307. (r) Ihvglasy. Cuhencell, Z Giff. 251. (») Williams v. Ou-en, -6 My; & Cr. 303. 240 THE ORIGINALLY EXCLUSIVE JURISDICTION. Effects of this distinction : the difference between a mortgage and a sale with right of re-purchase is very important, ifith reference to the consequences of each: — For (in the case of a mortgage) the mortgagor, even after forfeiture at law, has his right of redemption in equity, but (in the case of a sale with right of re-purchase) the time limited for the exercise of the right must be exactly observed (t), and equity may not relieve (u) . Other forms of securities. (1) Vwum vadium, — lender to pay himself from rents and profits. (2) Mortumn creditor took rents and profits with- out account. (3) Welsh mortgage, — mortgagor may redeem at any time. There were anciently these three other species of securi- ties for money lent, namely: — (1) The vivum vadium,-^in which the owner of lan estate, in consideration of money lent, conveyed it to the lender,- — with a condition that as soon as the lender repaid himself out of the rents and profits, the debtor might re-enter; and it was called a vivum vadium, be- cause (as the security itself worked off the debt) it was deemed to be in a manner living ; (2) The mortuum vadium, — which was a feoffment to the creditor, to be held until the debtor paid him a given -until which time, the csreditor received the rents sum,- without account, and the security (not of itself working off the debt) was in a manner dead; and (3) The Welsh mxyrtgage, — in which (as in the mor- tuum vadium) the rents and profits were received by the mortgagee without account, and the principal therefore remained undiminished. And, nota heme, in all these three species of ancient mortgages, the mortgagee could not either foreclose or sue for his money, and the mort- gagor might have redeemed at any time {x), no Statute of Limitations being applicable {y) . The nature of An equity of redemption was originally regarded as an equity of^ ^ mere right, but afterwards it was held to be an estate {z) : it is an estate And that is now the accepted opinion; and the person m the land. entitled to the equity (being' the real owner of the land) {t) Barren v. Sahinc, 1 Ves. 268. (m) Bibbim \. Bibbina, 1896, 2 Ch. 348. \x) Howell V. Price, Preo. Ch. 423, 477. (y) Femoiclc v. Seed, I Mar. 114. (z) Casborne v. Scarf e, 1 Atk. 603. MORTGAGES . 241 may (subject only to the rights of the mortgagee) exer- cise all acts of ownership' over the land, — and may settle or devise, or even again mortgage, the land. And as regards the desc3ent of the mortgaged estate, if the land be of gavelkind tenure, the equity descends in gavelkind; and if the land be borough-English, the youngest son in- herits (a) ; and in the case of copyholds, the equity de- scends according to the customary rules of descent; and in the case of freeholds, the equity descends, of course, according to the ordinary canons of descent, — modified (as these latter have been modified) by statute. Also, all persons entitled to any estate or interest in the who may equity are entitled to come into a Court of Equity to redeem, redeem the land, — That is to say, (1) The heir, or (in the case of copyhold lands) the customary heir; (2) The de- visee; (3) A tenant for life, a remainderman, a rever- sioner, a dowress, a jointress, a tenant by the curtesy, or other limited owner ; (4) A subsequent purchaser or lessee (&); (5) a subsequent mortgagee (c) ; (6) A judg- ment creditor even{d); (7) The crown on a forfeiture; (8) The lord on an escheat; (9) A bankrupt (after an- nulment of his bankruptcy (e)); and (10) A volunteer even (/) . But as regards tenants for life, when they Mortgage,— redeem a mortgage on the inheritance, they do so (in ^^'^ed'by general) for their own benefit; and therefore the mortgage tenant for life, is (in their case) kept alive, — equally as if it had been ^jj^® ^ transferred (^f) . But remaindermen or reversioners can- not redeem against the wishes of the "prior life tenant" (h), — In other words, if the prior tenant for life shall have redeemed, he is not liable thereafter to be re- deemed by the remainderman or reversioner (^) . The redeeming party must pay to the mortgagee the The price of principal of the mortgage debt, — and, usually, according ^^ ^™^ '°"' (a) Fawcett v. Lowiher, 2 Ves. Sr. 301. (i) Tarn v. Turner, 39 Ch. Div. 4.56. (c) Fell V. Brown, 2 Bro. C. C. 278. \d) Bryant v. Bull, 10 Oh. Div. 153. («) Jn 're Fearce, 1909, 2 Ch. 492. (/) Band V. Cartwright, 1 Ch. Ca. 59, (g) Burrell v. Fgremont, 7 Beav. 205. (/i) JRavaldv. Russell, You. 9. (i) miles V. Scriven, 1 J. & H, 215. 242 THE ORIGINALLY EXCLUSIVE JURISDICTION. to the statement of it in the mortgage deed (k), — together with, of course, the interest thereon, and the mortgagee's costs (l), — the aggregate amount to be so paid being called "the price of redemption." And an auctioneer- mortgagee may be entitled to add his commission to the "price of redemption" — that not being (m) (at least in the general case (n)) a secret profit. Also, the costs of an abortive sale will, in general, be added to the " price of redemption" (o), — but not the costs of the mortgage deed itself (p). Successive re- demptions, — order of, and general principle regarding. Where there are successive mortgages, any subsequent mortgagee may redeem a prior mortgage, and every re- deeming party is liable to be redeemed in his turn by those below him, and these latter are all liable to be re- deemed by the mortgagor (g) ; and in the case of such successive mortgages, the rule or practice in an action of foreclosure is, to make them all parties to the action, and to offer to redeem all incumbrancers prior in date to the plaintiff, and to claim to foreclose all incumbrancers pos- terior in date to the plaintiff, — unless these latter, or some or one of them, shall redeem the plaintiff (r) : Which rule is expressed in the phrase, "Redeem up, foreclose doivn." When the mortgagor is the redeeming party, his re- demption of any prior mortgage will (in general) enure to give, the next puisne mortgagee the priority of the redeemed mortgagee (s), — and care must therefore be taken to keep the prior mortgage alive, if that is the intention {t), — the Court always finding such an inten- tion, in favour of the redeeming party, where he would be in any way prejudiced by the extinguishment of the {k) Biekerton v. Walker, 31 Ch. D. 151. (I) CoUerell v. Stratton, L. R. 8 Ch. App. 295. \m) Glegg's case, 22 Ch. Div. 549. (m) Field V. Hopkins, 44 Ch. D. 524. (o) Sutton T. Eawlings, 3 Exoh. 407. [p) Wales V. Oarr, 1902, 1 Ch. 860. iq) Elton V. Curteis, 19 Ch. Div. 49. ()■) Beemr v. Luck, L. R. 4 Eq. 537. is) Toulmin v. Steere, 3 Mer. 210. (() Tiiley T. Thomas, 2 T. & C. C. C. 399, «. MORTGAGES. 243 debt(w). But where the first mortgage debt is (and it usually is) the personal debt of the mortgagor, and he redeems it, the Court will assume (in such a case), that the mortgagor _ intended the next mortgagee to benefit by that redemption (v), — So that the first mortgage will (in that case) be altogether gone, and the second mortgage will become the first mortgage, — Soil., unless the redeem- ing mortgagor shall have signified an express intention to the contrary (x) . The law, as stated in the last preceding paragraph, may be also otherwise stated as follows, that is to say: — Firstly, if a- first legal mortgagee buys the equity of redemption, and knows at the date of completing his purchase that there are subsequent mortgages on the property, — then his own first mortgage will be thereby discharged (Toulmin v. Steer e), — unless he takes steps to keep it alive {Titley v. Thomas); but as the Court rather presumes that he will keep it alive (Adams v. Angell), therefore a very little will suffice in that case to keep the mortgage alive {y) : And, Secondly, if the mortgagor himself pays off the first mortgage (being his own per- sonal debt), he cannot keep the first mortgage alive as against the subsequent mortgagees (Otter v. Vaux); or, if he can do so at all, it is only by the most express and unambiguous declaration to that effect (Hoare v. Tasker), — That is to say, by having the first mortgage debt and the security therefor assigned to a trustee for himself, with a declaration accompanying the assignment, to the effect that the assignment is so made and taken to the intent to keep the mortgage alive. In quite pecent times, the practice (in a foreclosure Usually only action) has been, to give only one time for redemption to °?« *™« "o'^ all the puisne mortgagees (including the niortgagor (z)), demptio"^' — and not ,(as formerly) successive times to each; and if the defendants all make default to pleading to the (u) Adams t. Angell, 5 Ch. D. 634. (v) Otter T. Vaux, 2 K. & J. 657. («) JEToare v. Tas/eei; 1905, 2 Ch. 687. (y) Butler T. Sice, 1910, 2 Ch. 177 ; following Chetwyndy. Allen, 1899, 1 Ch. 353. (z) Smithett t. Hesheth, 44 Ch. Div. 161. r2 244 THE ORIGINALLY EXCLUSIVE JURISDICTION. Btatement ,of claim, one time only shall be given for re- demption (a), — Unless the .defendants (there being some question between them inter se) appear on the motion for judgment, ,and request successive periods for redemp- tion, — In which latter case, the old rule of giving suc- cessive periods for redemption will be observed (&). Arrears of interest re- coverable. Interest ou costs. Eight to compel a transfer, instead of being fore- closed. The arrears ,of interest recoverable in an action of fore- closure are ^usually six years only, that action being within ,the 3 & 4 Will. IV. c. 27, s. 42,— whereby the arrears recoverable in an action against the mortgaged land are limited to six years. But, in an action for re- demption (o), — or upon an application by the mortgagor (or by his legal personal representative) for payment out of Court (d), — the entire arrears are recoverable, — As they also are, when the mortgagee, having sold, holds the sale-proceeds, and the mortgagor sues to recover the surplus (e) : The judgment in a foreclosure action usually directs, that the mortgagee shall add his costs of the action to his security, and interest (at the rate of 4 per cent, per annum) is computed as from the date of the taxing-master's certificate (/) . When a mortgagee threatens foreclosure, the mort- gagor (if not then minded to redeem) may require the mortgagee (not being or having been in possession (g)), to transfer the debt and to convey the estate to any nominee of the mortgagor, on receiving from such nominee "the price of redemption" as above defined (^) . And where (in such a case) there are successive mortgages, this right to compel a transfer belongs to each puisne incum- brancer as .well as to the mortgagor, — the incumbrancers having precedence of the mortgagor, and the in- cumbrancers having precedence according to their priorities (i). But, nota bene, in every case, the transfer (a) Flatt V. Mendel, Tt Oh. Div. 246. (J) Bartlett v. Sees, L. E. 12 Eq. 395. (c) Dingle \. Coppen, 1899, 1 Ch. 726. \d) Lloyd V. Lloyd. 1903, 1 Ch. 383. (e) Marshjield v. Ilutehings, 34 Ch. Div. 721. (/) Sardley v. Knight, 41 Ch. Div. 537. Ig) Hall V. Hewm-d, 32 Ch. Div. 430. (A) Conveyancing Act, 1881, s. 15. (i) Conveyancing Act, 1882, o. 12. MORTGAGES. ' 245 vf the debt and the conveyance of the estate are com- pellable, only upon the tei'ms upon which a reconveyance would be compellable (k), — That is, semble, without any prejudice accruing thereby to the divers incumbrancers inter se (l) : All which rules as to compelling a transfer apply also to liens and other equitable charges (m) . A person cannot, as of right, redeem before the time Time to appointed in the 'mortgage deed, — So that if the loan is to six months' continue for any specified number of years, it cannot be notice, or else ■ 1 1 • • n 1 / \ J j-i SIX months redeemed until the expiration oi those years [n), — and the interest, in security must (in the meantime) be maintained, and the general, interest paid. Also, as regards these mortgages for a fixed term, — and mortgages repayable by fixed instalments, — or where (in addition to the ordinary proviso for redemp- tion) there is a specific proviso, to the effect that (upon any specific default on the part of the mortgagor) the whole principal then remaining unpaid shall immediately be- come and be payable, — (1) The Statutes of Limitation, begin to run (against the mortgagee) as from the date of the default happening (o) ; b'ut (2) Where there is only the ordinary default, the foreclosure judgment preserves the provision as to the repayment of the debt by instal- ments (p) . If the mortgagee should (as a matter ,of indulgence) consent to accept payment before the legal period of redemption, he is entitled (in general) to the full amount of his interest up to that' time (q); and if the mortgagor (after the legal right of redemption is gone) should wish to pay off the mortgage, he must give the mortgagee six calendar months' previous notice in writing' of his inten- tion to do so, — Which notice, once it is given, cannot be withdrawn, save with the mortgagee's consent (r) : A' mortgagor, who has given notice to pay ofi, must (A-) Teevm t. SmitJi, 20 Ch. Div. 724. (Z) Feai-ee v. Morris, L. R. 5 Ch. App. 22. (m) Bradford Bank v. Briggs, 12 App. Ca. 29. («) West Derby v. Metropolitan Life, 1897, A. C. 647. (o) Reeves v. Butcher, 1891, 2 Q. B. 509. \p) Greemugh v. Littler, 16 Ch. D. 93. (}) Brotin T. Cole, 14 Sim. 427. (r) Santley v. Wilde, 1899, 1 Ch. 747. 246 TPIE ORIGINALLY EXCLUSIVE JURISDICTION. punctually pay or tender the money at the expiration of the notice (s), — and otherwise he lets himself in for six months' further interest (i); But if the tender is in due time and is an effective tender {u), but not otherwise (a;), it will stop the further running of the interest, — and (if the amount tendered is afterwards found sufficient) the mortgagee pays, in general, all the subsequent costs of the action {y). If the mortgagee should himself commence an action to recover the mortgage debt(^!), or should himself have given the notice to buy off the mortgage debt (a), — or should have entered into the possession (6) ; or if his mort- gage should be merely an equitable mortgage by deposit ■of the title-deeds (with or without an accompanying memorandum (c)), — In any of these cases, the mortgagee is not entitled to six months' notice, or to interest in lieu thereof, — but only to interest up to (at the most) the date of the actual payment of his principal debt (d) : But (in a foreclosure action) where the usual certificate has been made of the amount of interest which will have accrued due on the day therein appointed for redemption, the full interest up to the day so appointed must, of course, be paid (e). Statutes of As regards the Statutes of Limitations relative to mort- avwh^^'^'th S^S^^' — Firstly, if the mortgagee has entered into posses- imortgagee is sion, — The rule in equity always was, that after twenty — ^aroTmort- J^ars' possession the mortgagee should not " be dis- gagor. turbed," — Excepting that, where the mortgagor was pre- vented from asserting his claim by reason of imprison- ment, infancy, coverture, or other like legal disability, (s) Leeds Theatre v. Broadtent, 1898, 1 Ch. 343. \t) BartUtt V. Frmilclin, 36 L. J. Ch. 671. (u) Greenwood V. Sideliffe, 1892, 1 Ch. 1. (x) Kinnairdv. Trollope, 42 Ch. D. 610. {y) Bourkev. Robinson, 19U, 1 Ch. 480. («) PrescoU v. Phipps, 23 Ch. Diy. 372. {a) Edmondson v. Copland, 1911, 2 Ch. 301. {b) Bovill V. Endle, 1896, 1 Ch. 649. (c) Fitzt/erald's Trustee v. Melkrsh, 1892, 1 Ch. 385. (d) West V. Diprose, 1900, 1 Ch. 337. («) mUv. Rowlands, 1897, 2 Ch. 361. MORTGAGES. 247 equity allowed ten years after the removal of the dis- ability (/). Also, an acknowledgment given by the mortgagee, before the equity of redemption was wholly barred (g), — even after it appeared to be (but really was not) wholly barred (h), — would have sufficed to save the equity of redemption. And now, by the 3 & 4 Will. IV. c. 27, s. 28, and the 37 & 38 Vict. c. 57, s. 7, whenever a mortgagee obtains possession of the land comprised in his mortgage, — or of any part of such land («), — the mort- gagor may not bring a suit to redeem the mortgage, — Scil., so far as regards the land (or part of the land) of which the mortgagee is so in possession, — but within twelve (formerly twenty) years next after the time when the mortgagee obtained possession, — or next after any ivritten acknowledgment of the title of the mortgagor given to the mortgagor or his agent by the mortgagee (k) ; and no further time is now allowed for any disability {I) . And where the mortgage comprises, in addition to real estate, a policy (e.g.) of life-assurance, — and the mort- gagee has been in possession of the land for twelve years, mid under such circumstances as to bar the mortgagor's recovery of the land, — The mortgagor's right to recover the policy (i.e., to redeem the policy) is also barred (m): But, of course, a policy which is in mortgage, will not cease to be redeemable, merely because the mortgagee has been permitted for a long time to pay the policy-premiums (n), • — Scil., unless other special circumstances combine with that (o) . And, Secondly, if the mortgagee has not entered into (2) Where possession,-By the 3 & 4 Will. IV. c. 27, as explained by "o°s^S,- the 7 Will . I V . & 1 Vict . c . 28 , and as amended by the 37 & bar of mort- gagee. (/) Beokford v. Wade, 17 Ves. 99. [g) Marwick v. Hardingham, IS Ch. Div. 339. (A) Stansfield v. Sobson, 3 De G. M. & G. 620. (i) Kinsman v. House, 17 Ch. Div. lOi. {k) mckman v. Upsall, 4 Ch. Div. 144; GatfieWs case, 1911, 1 Oh. 698. {}) Forster v. Fatterson, 17 Ch. Div. 132. \m) Charter v. Watson, 1899, 1 Ch. 175. [n) Brysdale v. Piggott, 8 De G. M. & G. 546. io) Foster v. Roberts, 29 Beav. 708. 248 THE ORIGINALLY EXCLUSIVE JURISDICTION. 38 Vict. c. 57, the mortgagee may sue to recover the posses- sion, at any time within twelve years next after the last paj^ment of any part of the principal money or interest, ^although more than twelve years may then have elapsed since the mortgagee's right of entry accrued, — It being always (in such a case) understood, that, at the date of the execution of the mortgage, the mortgagor himself had not been already dispossessed {p) . And, nota bene, where the mortgage is (as it usually is) of an estate in possession, the mortgagee's right of entry accrues on the execution of the mortgage-deed (q) ; but where the mortgage is of a re- mainder or reversion in land, the mortgagee's right of entry accrues only as from the time that the remainder or reversion falls into possession (r), — it being always re- membered, that a fee simple estate, which is reversionary on a mere term of years, is a fee simple estate in posses- sion (s), — usually, at least. Where and so long as the mortgagor and the mortgagee are one and the same person (which occasionally happens), the time does not begin to run at all (t) ; and a husband (mortgagee) and his wife (mortgagor) may (for this pm-- pose) be (in effect) one and the same person (u) . So long as the mortgagee may sue to recover the posses- sion, so long may he also sue for a foreclosure (x) ; and, on obtaining his judgment for foreclosure, a new right of pos- session arises in the mortgagee, and is available for a further period of twelve years (ij). Once the mortgagee lias actually entered into posses- sion, his possession relates back to the date when he was first legally entitled to the possession, — for the purpose of (e.g.) suing in respect of any interim trespass (0). {p) Thornton v. France, 1897, 2 Q. B. 143. [q) Doe d. Eoylance v. Lightfoot, 8 Mee. & W. 553. ()•) Sugillv. Wilkinson, 38 Oh. Div. 480. (s) JSumbU Y. Mumble, 24 Beav. 535. {t) Topham v. Booth, 35 Ch. Div. 607. lu) Seynes v. Dixon, 1899, 2 Ch. 661. \x) Harloele v. Ashierry, 19 Ch. D. 539. (y) Pugh V. Seath, 7 App. Ca. 235. (2) Baffety v. King, 1 Ke. 601. ^ ' MORTGAGES. ' 249 As regards the mortgagee's remedy by action of debt, Remedy — or of covenant on the covenant contained in his mort- on bond or gage deed (a) (or on a bond collateral thereto (&)), — That time'fOT.'" remedy is now barred {Soil., as against the mortgagor himself and his legal personal representatives and surety (c)) after twelve years, although the time for suing on a covenant or bond remains (in the general case) twenty years; and that is so, even where the mwtgage is of a remainder not yet fallen into possession (d). But the twelve years reckon, of course, only as from the time when the right of action on the bond or covenant is com- plete; and occasionally the right of action is not complete, until after demand made for payment, — a demand being, in general, necessary, in all cases (including the case of a surety for the mortgagor (e)) where the liability to pay is .collateral only (/); or until after the due performance of iSome other condition of payability (g). But what is above stated regarding the twelve years' limit of time for suing, is intended only as regards mortgages of land, — the 3 & 4 Will. IV. c. 27, s. 42, not being applicable to mortgages of (e.g.) reversionary personal estate (fe). The statutes of limitation, in relation to land, bar and Bar of time, extinguish the title, and not merely the action or remedy ^ ^^ ° • of the dispossessed person (i), — although in relation to personal property, their effect is merely to bar the remedy without extinguishing the right : Therefore, where there was a second mortgagee, who never had possession, and he suffered his right of foreclosure to be barred, his second mortgage was held extinguished by the bar of time, — and the third mortgagee (who had paid off the first mortgage) was therefore not affected by the second mortgage at all(S;). The right of foreclosure in the mortgagee is not kept Wiatpay- ° D D J. ments save the statute, and what not. (a) Sutton V. iStittoii, 22 Ch. Div. 511. (i) Feamside t. Flint, 22 Ch. Div. 579. (c) LindsellY. FhilHps, 30 Ch. Div. 291. (d) KirhUnd v. Peatfeld, 1903, 1 K. B. 756. («) Allison V. Friiby, 43 Oh. Div. 106. ( f) Brown v. Brown, 1893, 2 Ch. 300. (g) Atkinson v. Bradford FqnitabU, 25 Q. B. D. 377. (A) Stueley v. Kekewich, 1906, 1 Ch. 67. (i) Johnson v. Mounsey, 11 Ch. Div. 284. [k) Kibble v. Fairthorne, 1895, iCh. 219. 250 THE ORIGINALLY EXCLUSIVE JURISDICTION. alive by the payment to him of rent by the occupying tenant without the knowledge and subsequent adoption of the mortgagor (I), — nor by the payment to him of what purports to be the accruing interest on the mortgage debt, where such payment is made by any one other than the mortgagor himself or a person acting with the mort- gagor's authority in that behalf (m), — Which authority may, however, be implied (n). But, of course, the pay- ment of interest by the tenant for life keeps alive the mortgage debt, as against the remainderman (o), — Scil., where they both claim under a settlement of the mort- gaged hereditaments created by the mortgagor (by deed or by his will), — and, usually, as against the residuary estate also of the mortgagor (the settlor) who covenanted for its payment (p); and the payment of interest by a receiver appointed by the mortgagee (and who is the mortgagor's agent) will keep alive the mortgage debt(g). Payment on account, — what is not ? Where a life-policy is included in the security, and the mortgagee receives the surrender value of the policy (r), that receipt is not, — usually, at least, — a part-payment by the mortgagor, so as to keep alive (or to revive) the residue of the mortgage debt; and a compulsory part- payment will not operate to keep alive the mortgage debt(s), — still less to revive the mortgage debt; and the receipt of the sale-proceeds arising from a part of the mort- gaged property sold is not (for this purpose) a part-pay- ment (t). Principal, "bar of, — when and when not a har also of interest. Where the covenant in the mortgage deed is (and it usually is) (1) for the payment of the principal and interest on a specified day ; and also (2) for the payment of interest thereafter half-yearly, — If the remedy on the first covenant is barred by time, it does not follow, that the (?) SarlocJc v. Ashberry, 19 Ch. T>. 539. ()«) Newbould v. Smith, 29 Ch. Div. 882. {n) Bradshaw v. JTiddrwgton, 1902, 2 Ch. 430. lo) Roddam v. Morley, 1 De G. & J. 1. (p) Bmsett V. Allen, 1898, 2 Ch. 499. (q) Lilhy v. Foad, 1899, 2 Ch. 107. (r) Annaly v. Agar-Ellis, 1900, 1 Ch. 774. (s) Morgan v. Rowlands, L. R. 7 Q. B. 493. (t) In re McHenry, 1894, 3 Ch, 290. MORTGAGES. 251 remedy on the second covenant (i.e., on the independent covenant for payment of the interest) is also barred; but the contrary will, in general, be the case, — Soil., until twelve years shall have elapsed since the remedy on the latter covenant also was complete (ii) . And here, it is con- venient to observe, that where there is no covenant at all, to pay the interest after the day specified for the payment of principal and interest, the interest which is recoverable after that specified day is computed at the rate of (or at a rate never exceeding) 5 per cent, (x), — and is recoverable as damages only(?/); and further, that when judgment has been obtained for payment of the mortgage debt, the rate of interest (on the judgment) is thereafter 4 per cent, only; but the old rate of interest (if higher than 4 per cent.) will nevertheless (in such a case, and for all the pur- poses of redemption) continue payable (z) . A mortgagor entitled for the time being to the posses- Of ^^ estate sion or receipt of the rents or profits of any land, "as to gagor. which no notice of his intention to take possession, or to enter into the receipt of the rents and profits thereof, shall have been given by the mortgagee," may now sue for such possession, or for the recovery of such rents and profits, — or to prevent (or recover damages in respect of) any trespass or other wrong relative thereto (a) : Also, semble, he may even sue for breach by the lessee of his covenant to repair (&). And generally, where the mortgagor remains in posses- Mortgagor iu sion, he is entitled to enjoy the mortgaged premises in the acooraiSe^°* ordinary way; and he may {e.g.) cut and sever the crops, for rents and or cut and sell the underwood (c), — and is not bound to ^'^° ' account to the mortgagee for the rents and profits arising or accruing during his possession, even although the (m) Farr's Bank v. Yates, 1898, 2 Q. B. 460. (x) Goodchap v. Roberts, 14 Ch. D. 49. (y) Cook V. Fowler, L. R. 7 H. L. 27. (z) Economic Life v. Osborne, 1902, A. C. 147. (a) Judicature Act, 1873, s. 25, sub-s. 5. (*) Conveyancing Act, 1881, s. 10 ; Turner v. Ifalsh, 1909, 2 K. B. 484. (c) Trent v. Hunt, 9 Exoh. 14. 252 .THE ORIGINALLY EXCLUSIVE JURISDICTION. security should afterwards prove insufficient; but where the security is insufficient, a mortgagor in possession may be enjoined against felling timber {d), or cutting and removing the crops or the underwood (e). Equity will not hinder the mortgagee from evicting the mortgagor after default, but will consider the mortgagor as being a mere tenant-at-will (/), — excepting that where (as usually happens) the mortgage deed contains a re- demise of the mortgaged premises (or contains an attorn- ment clause {g)), the mortgagee must have regard to the terms of that re-demise or of that attornment clause. And here note, that (by means of such attornment clause) a true and effective tenancy between the mortgagor and the mortgagee is created {h) ; but that such tenancy is deter- mined \)j a transfer of the mortgage {i), — Sell., because the tenancy under the attornment clause is at will only (/c) . Mortgagor could not make leases binding on mortgagee ; seciiSj now. The mortgagor could not formerly have made a lease binding on the mortgagee (?); and, therefore, both the mortgagor and the mortgagee used to concur in making the lease, — wherever (as in the case of mines) expense was to be incurred by the lessee. However, the mortgage© might (in such a case) have become bound by estoppel (to) ; and, now (under the Conveyancing Act, 1881, s. 18), as regards the hereditaments comprised in the mortgage (and these only (re)), or any part of them, the mortgagor (while in possession) may, and the mort- gagee while in possession also may, make a valid lease (other than and except a mining lease), — provided the lease do not exceed twenty-one years for an agricultural or occupation lease, or ninety-nine years for a building (or repairing) lease, and provided the lease otherwise oom- [0) if) (?) (h) (i) (k) {1} (m) W Farrant v. Zovell, 3 Atk. 723. Bagnall v. Villar, 12 Ch. D. 812. GholmondeUy v. Clinton, 2 Mer. 359. Ex parte Williams, 7 Ch. Div. 138. Carpenter v. Collins, Telv. 73. Brown v. Metropolitan Society, 1 EU. & Bl. 832. Kemp V. Lester, 1896, 2 Q. B. 162. Keech v. Hall, 1 Doug. 22. Keith V. Gancia, 1904, 1 Ch. 774. King v. Bird, 1909, 1 K. B. 837. MORTGAGES. ' 253 plies with the requisites of the Act (o) . And, of course, a lease by the mortgagor, which is valid by force of the provisions oi the Conveyancing Act, will continue valid after any foreclosure by the mortgagee {p), — Wherefore, also, any surrender of the lease must (in order to be valid) be made to the mortgagee (g) . Where the mortgagee (by virtue of his legal title as Moi-tgagee o o ^ "' . 1-1117 • entering into mortgagee ) enters mto possession, — which he does by gtv- possession,— ing notice to the tenants to pay their rents (i.e., their effect of. growing rents and also their rents in arrear (r)) to him, and by taking into his own hands generally the manage- ment of the estate (s), — That is an assertion of his para- mount title as mortgagee; and the mortgagor's tenants, although for terms of years (being terms Created subse- quently to the mortgage and not under the provisions of the Conveyancing Act above referred to) become there- upon tenants from year to year only to the mortgage© (t) ; and the lease itself being gone, the covenants contained' Tenant-right; in it are also gone (u) : But the compensation (if any) ^q^* a°ee~ to which the tenant would, in such a case, be entitled, now liable for. as against his lessor, is now preserved to him as against the mortgagee also when he so takes possession (x) . Where there was the mortgage of a house; and subse- quently the mortgagor (himself alone) made a lease .of the house as a furnished house, — and then went bankrupt, — and the mortgagee gave notice to the occupying tenant to pay the rent to him, and the trustee in the bankruptcy did the same, — The Court said (in effect), that the rent must be apportioned (y) . Where the tenant in occupation (being a tenant of the mortgagor alone, and the lease not being good under the (o) Wilson T. Qiiem's Club, 1891, 3 Ch. 522. (p) Brown v. Peto, 1900, 1 Q. B. 346. (}) Bobbins v. Whyte, 1906, 1 K. B. 125. M In re Ind, Goope % Co., 1911, 2 Ch. 223. (s) Noyes v. Pollock, 32 Ch. D. 33. («) Corbett v. Plowden, 25 Ch. Div. 678. (k) Towerson v. Jackson, 1891, 2 Q. B. 484. (x) 53 & 54 Vict. 0. 57 ; 8 Edw. Vil. c. 28, s. 12. (y) Salmon v. Matthnos, 8 Mee. & W. 827. 254 THE ORIGINALLY EXCLUSIVE JURISDICTION. Mesne profits, — title of mortgagee to. provisions of the Conveyancing Act, 1881) pays his rent to the mortgagee, pursuant to the notice of the mortgagee to do so, — That payment will, — usually {z), but not in- variably (a), — create the relationship of tenant to the mortgagee, and will be a good answer to any subsequent demand of the mortgagor for the same rent(?)). Also, generally, as between the mortgagor and the mortgagee, there is no apportionment of the accruing rents (c), — ex- cept (possibly) as regards rent paid as rent in advance {d). And a mortgagee being entitled to treat all the subsequent lessees lof the mortgagor as trespassers, — so as to eject them without first giving them notice, — Sell., where the leases are not good under the Conveyancing Act, 1881, — he will (in case he so eject them) be entitled to the mesne profits from the date of his taking the possession (e), — such mesne profits being in lieu of the rent which he would otherwise have been entitled to receive. Entry into possession,- of part. The mortgagee, it seems, may enter into possession of part of the mortgaged propertj-, "without also entering into possession of the rest of the property (/) ; but a mort- gagee, when he has once taken possession, cannot at pleasure -give up the possession again {g), — although he will sometimes (by means of a receiver being ap- pointed (Ji)) be let out of the possession: Also, note, that a mortgagee ought not (without good reason) to dispossess his mortgagor (i), — nor is it (in general) for his advan- tage to do so (fc) . Where a mortgagee has entered into possession, — and dies in possession, and his executors and trustees continue z) TInderhay v. Read, 20 Q. B. D. 209. \a) Evans v. Elliot, 9 A. & E. 342. b) Bogers \. Humphreys, 4 A. & E. 299. c) Anderson v. Butler's Wharf, 48 L. J.-Ch. 824. 'd)'I)e Nicholls v. Saunders, L. R. ■'i C. P. 589. e) Turners. Cameron Coal Co., 5 Exch. 932. '/) Simmins v. Shirley, 6 Ch. Div. 173. i^) Fryterch v. Williams, 42 Ch. Div. 590. A) Gloucester Bank v. Eudry Co., 1895, 1 Ch. 629. i) Moore V. Shelley, 8 App. Ca. 285. k) In re Pope, 17 Q. B. D. 743, on p. 749. MORTGAGES . 255 his possession; and the mortgage debt is (by the will) settled on A. for life, with remainder over, — The net rents received by the executor-trustees are applicable as income (and ate payable to A. as tenant for life), but to the extent only of the interest on the mortgage debt, — the surplus (if any) going to capital, — {Scil., for the benefit of the remainder over {I)). A mortgagee may bargain with the mortgagor for the Eeoewerof appointment of a receiver, to be paid by the mortgagor; estates. and such receiver is, — in general (m), but not invari- ably (n), — the agent of the mortgagor; and under the Conveyancing Act, 1881, ss. 19, 24, a power to appoint a receiver has been made incident to every mortgage of lands by deed, unless the deed expressly includes such power (o). And it is to be remembered, that the receiver so appointed receives all the rents in arrear and unpaid at the date of his appointment, — and receives also, of course, all the future-accruing rents (p); and if the mortgagor is himself the occupying tenant, he pays to the receiver an occupation rent (accruing from the date of the demand therefor (g)). But the power of a receiver extends, of Eeceiverand course, only to the property comprised in the security, — OT^recliver" Consequently, in the case of a mortgage of lands on which only— when? an hotel is built, the receiver is not (or not necessarily) of the hotel business, but of the rents and profits only of the mortgaged lands, — Wherefore a receiver will not, in general, be appointed manager also of the hotel busi- ness (r), — Secus, if the hotel (as such) is comprised in the security (s), — or if the goodwill of the hotel business is (under the word "property," or otherwise) comprised in the security (^). Also, in the case of a mortgage of coal mines, if the colliery business is comprised in the (l) In re Coaks, Coaks v. Bayley, 1911, 1 Ch. 171. (m) Law V. Glenn, L. R. 2 Cli. App. 6S4. («) Robinson v. Chic, Ltd., 1905, 2 Ch. 123 ; Deyes v. Wood, 1911, 1 K. B. 806. (o) Mason v. Westoby, 32 Cli. Div. 206. \p) Freston \. Tuntridge Wells, 1903, 2 Ch. 323. (}) Yorkshire Banking Co. v. Mullan, 35 Ch. Div. 125. (r) Whifey v. Challis, 1892, 1 Ch. 64. (s) Makins v. Percy Ibotson, 1891, 1 Ch. 133. [t) Leas Botel case, 1902, 1 Ch. 332. 266 THE ORIGINALLY EXCLUSIVE JURISDICTION. Receiver, — necessity for, and advan- tage of. Stipulation for lower rate of interest on punctual payment. Fines in Building Society mortgages. security, a receiver and manager will be appointed {u), — at the suit of the mortgagee («). An equitable mortgagee could not, in general, have re- covered the possession of the mortgaged premises by ejectment ; and, therefore, it was a matter almost of course, ior him to obtain the appointnjent of a receiver; and a legal mortgagee prefers, in general, to have a re- ceiver appointed, — thereby avoiding the inconvenience of entering into possession (and becoming chargeable as a mortgagee in possession (?/)). A stipulation that the mortgagee shall receive interest at £4 per cent, if regularly paid, but £5 per cent, if default is made, is good if £5 per cent, be reserved by, the deed; and in the case of interest being so reserved, the higher and not the lower rate is taken upon redemp- tion and foreclosure accounts (z), — and also where the mortgagee is in possession (a). But, nota bene, if £4 per cent, only is reserved, a stipulation that £5 per cent, shall be paid if the interest be not regularly paid, is void as a penalty (b). However, as regards the fines and so- called penal payments contained in mortgages to Build- ing Societies, all these (if they are reasonable, within the Building Society Acts) are recoverable in full (c), — the premiums charged for these loans being in the nature of principal moneys advanced, and recoverable as such(<^). And as regards all such mortgages, the rules for the time being of the society, — being rules reasonably made (e), ■ — regulate (as between the society and the mortgagor) the provisions of the mortgage deed (/), — save upon a dissolution of the society (g) . And a similar law is appli- cable, semble, to mutual life-policy ■ societies (h) . (u) Gloucester Bank v. Rudry Co., 1895, 1 Ch. 629. [x) liowe V. Wood, IJ. & W. 315. iy) In re Pope, 17 Q. B. D. 743. (z) Union Bank of London v. Ingram, 16 Ch. Div. 53. (a) Bright v. Campbell, 41 Ch. Div. 388. (S) Tipton Green Colliery v. Tipton Moat Colliery, 7 Ch. Div. 192. [c) Protector Endowment Co. v. Griee, 5 Q. B. D. 592. \d) Ex parte Bath, In re Phillips, 27 Ch. Div. 509. (e) Bill's case, 1899, 2 Ch. 60. (/) Strohmenger v. Finsbury Building Society, 1897, 2 Ch. 469. Iff) Kemp V. Wright, 1895, 1- Ch. 121 ; Building Societie.s Act, 1894 (57 & 58 Vict. 0. 47), SB. 1, 10 ; Shove's case, 1899, 2 Ch. 64, «. (A) British Equitable v. Bdily, 1906, A. C. 35. MORTGAGES. 257 As regards compound interest on the mortgage debt, Compound — If there be an accumulation clause in the mortgage interest, deed, — which clause is not unusual in mortgages of re- versions and remainders, — then the interest may be com- pounded, by the addition thereof (yearly or half-yearly) to the principal of the mortgage debt; and such an accumulation clause is perfectly valid (*), — excepting, possibly, in mortgages by a client to his solicitor (k) ; and excepting, possibly, as against the subsequent incum- brances (if any); and excepting where the mortgagee (being in possession) has always in hand a surplus of rents over interest (Z) . A mortgagee in possession is under a duty to keep Mortgagee the mortgaged premises in repair, — to the extent of the State in^ surplus rents (to) ; and he will be liable for any deterio- necessary ration of the mortgaged premises which may be attri- surpiusrents ; butable to his neglect (n) . In case he expends (upon the repair of the mortgaged premises) any moneys of his own (i.e., moneys beyond the surplus rents), and that expendi- ture has been judicious, and has also resulted in perma- nent benefit to the mortgagor (i.e., to the mortgaged premises), — but not otherwise (o), — he mctif be allowed such excess of expenditure; and for that purpose, a special inquiry will be directed. But a mortgages in possession but must not must not (under the pretext of improving the mortgaged moT^agor ^ premises) "improve the mortgagor out of his equity of altogether out. redemption altogether," — Soil., by any huge increase in the "price of redemption" (p). Also, a mortgagee who (by means of a receiver and manager) has expended on the mortgaged premises more than the surplus rents,' will not, in the general case, be allowed the excess of his ex- penditure, — 8cil., because he is not in possession, the receiver's possession not being the mortgagee's posses- sion {q) . But the moneys paid for the renewal of a lease, (i) Clarkson v. Sendersm, 14 Ch. D. 348 ; Salt v. Northampton, 1892, A. C. I. {k) Myre v. Hughes, 2 Ch. D. 148. (?) Wrigley v. GUI, 1905, 1 Ch. 241 ; 1906, 1 Ch. 165. (m) Godfrey v. Watson, 3 Atk. 518. («) Sandon v. Hooper, 6 Beav. 246. (o) Bompas v. King, 33 Ch. D. 279. \p) Shepherd v. Jones, 21 Ch. D. 469. (}) White V. Metcalf, 1903, 2 Ch. 667. -S. S ^58 THE ORIGINALLY EXCLUSIVE JURISDICTION. Moi-tgagee in possession must account, — even though he has assigned the mortgage, — unless such assignment is either : (a) With the consent of the mortgagor ; or (b) By direc- tion of the Court. where the mortgage is of a renewable lease, will always, semile, be allowed. A mortgagee in possession, who (without the assent of the mortgagor) assigns over the mortgage to another, is liable to account for the rents and profits received subse- quently to the assignment, — on the principle that, having turned the mortgagor out of possession, it is incumbent on him, to take oare in whose hands he places the estate (r) . But this rule of equity applies, only when the assignment is the mortgagee's own voluntary act, — and is not appli- cable, when the assignment is by direction of the Court in a redemption suit. Also, every assignee of a mortgage debt, who takes his assignment without the privity of the mortgagor, takes subject to the state of the accounts between the mortgagor and the original mortgagee as existing at the date of the assignment (s), — and if the mortgage is an equitable mortgage, he takes, in fact, subject to all the equities (t) . When there are successive mortgages, and the first mortgagee is in possession, he is accountable to the second mortgagee of whose mortgage he has had notice, — and will not be allowed any sums (on account of rents received) which after such notice he may have paid over to the mort- gagor (m) : But until such notice is given, he is not account- able to the second mortgagee for any surplus rents paid over to the mortgagor (a;) . Also, if a receiver has been appointed on behalf of the first mortgagee, the subsequent incumbrancers may apply to the receiver, and obtain pay- ment of their interest out of any surplus rents in his hands; but if they make no such application, they are taken to rely (for both their principal and their interest) on their security against the land («/) . (2) By second Where the second mortgagee is in possession, he is possessioiT— accountable like any other mortgagee in possession; but. Back-rents, — accoimta- bility for : (1) By first mortgagee in possession, — after notice by second mortgagee. ()•) Naliotial Bank v. United Hand in Sand, i App. Ca. 391. (s) Bii-kerton v. Walker, 31 Ch. Div. 151 ; Bateman v. Hunt, 1904, 2 K. B. 5-iO. (t) Vorl^y V. Cooke, 1 Giff. 230. (k) Mai-ieod v Jones, 24 Ch. D. 2S9; (4 Law V. Gkrin, L. R. 2 Ch. App. 634. ly) Bertie v. Lord Abingdon, 3 Mer. 560. MORTGAGES . 369 as a general rule, he is not accountable to the first mort- after notice hy gagee for the back-rents received (2), — unless, of course, first mort- the first mortgagee has given notice to the tenants to pay their rents bo him. Also, if the receiver has been apjDointed on behalf of the second mortgagee, that appointment is always made subject to the rights of the prior incum- brancer who shall be in (or who shall enter into) posses- sion of the mortgaged hereditaments, — ^so that the occu- pying tenant, paying either his back-rents or his accruing rents to the first mortgagee after notice from the latter so to do, is not liable to pay the same rents over again to the second mortgagee (or to the receiver of the latter (a)). A mortgagee in possession, although liable to account, Mortgagee is is not obliged to account according to the actual value of for what he the land, — Unless it is proved, that he might have received actually re- the full value; or unless, in the exercise of his power of (but for his sale, he makes a gross mistake (whereby the value of the «■»'/"/ default) ■ ■ T ••! i/7\\ mi p 1 1 "® might have security is diminished (0)): Therefore, when the mort- received,— ■gagee enters, he is (in general) accountable only for what he actually receives, or would (but for his wilful default) have received (c), — and is not bound to {e.g.) work (or keep working), at a speculative profit, the mines in the land mortgaged (d) . But if he pulls down old buildings unnecessarily, and erects new buildings in the place of them, he will be liable for the interim loss of rents (e) . For advantages of a purely collateral character derived except as by the mortgagee out of his possession of the mortgaged lomfural property, — and which do not affect the mortgagor, — the advantages, mortgagee is not accountable (/) : For example, a man who is in occupation as a tenant, and who derives some special profit from his occupation, is not accountable for that, — merely because he happens to be also a mortgagee (z) Zaw V. Glenn, supra. (a) Preston v. Tunbridge JVells, 1903, 2 Ch. 323. (b) Tomlin v. Luce, 41 Ch. Div. 573. (c) Mai/er-v. Murray, 8 Ch. D. 424. (d) Rowe V. Wood, 1 J. & "W. 31.i ; Millett v. JDaveij, 31 Beav. 470. (e) Sandon v. Hooper, 6 Beav. 246. (/) White V. CUi/ of London Brewery Co., 42 Ch. Div. 237. s2 260 THE ORIGINALLY EXCLUSIVE JURISDICTION. of the premises {g) ; and if one of two co-owners of a patent is also a mortgagee of his co-owner's share, he will not be liable to account at all for the profits which hepiakes by working the patent (h), — excepting, possibly, in respect of any royalties received under licences to work the patent {i) . Annual rests, — when and when not directed. In taking the m.ortgage account, the aggregate rents are, in general, written off against the aggregate interest (/c) . But if, at the time of the mortgagee taking possession, the interest on his principal money is not in arrear, — or if the mortgagee remains in possession after he has been fully paid his mortgage debt (I), — the account will (in either of these two cases) be taken, in general, with " an- nual rests," — That is to say, if the rents in any year exceed the amount of that year's interest, the excess will (in every year) be applied in reduction of the principal moneys due (m) : But otherwise annual rests will not be directed . And, nota bene, annual rests will either be taken through- out the whole account, or not at all, — That is to say, there will be no break in the account, or in the principle of the account (n) . Mortgagee until payment could not be compelled to produce mort- fagor's title- eeds; sems. A mortgagee could not, formerly, have been compelled by the mortgagor to produce his (the mortgagor's) title- deeds, until payment of principal interest and costs, — even though the production was required for the purpose of enabling the mortgagor to negotiate a loan to pay off the mortgagee (o). But the law in this respect is now altered, as regards all mortgages made subsequently to the 31st December 1881 (p), — That is to say, the mortgagee is now compellable to produce the mortgagor's title-deeds before payment of the debt: But that does not mean, semble, that he is compellable to produce also the mortgage deed ig) Page v. Linwood, i CI. & F. 399. (A) Mwards v. Picard, 1909, 2 K. B. 903. (i) 7 Edw. VII. e. 28, s. 1 ; and 7 Edw. VII. c. 29, a. 37. (k) Union Bank v. Ingram, 16 Ch. B. 53. [T) Ashworth v. Lord, 36 Ch. Div. 545. (m) Patch v. Wild, 30 Beav. 99. (») Wrigleii v. Gill, 1906, I Ch. 165. (o) Sheffield y. Men, 10 Ch. Div. 291. [p) 44 & 46 Vict. c. 41, u. 16. MORTGAGES. 261 itself before payment (q), — Seil., Because the mortgage deed is the mortgagee's own deed, and never was one of the mortgagor's title-deeds, — unless where (the right of redemption being disputed) the mortgage deed also itself becomes a title-deed of his (r) . But, of course, upon re- Mortgagee's demption, the mortgagee must hand over the mortgage ijj^g^f^eeds. deed (along with all the title-deeds), — and will be liable in damages for any title-deed that is then missing (s) : Which damages may be considerable (t), — even where the loss is merely innocent on the mortgagee's part (u) . Also, where there is a mortgage, and the mortgagee assigns the mortgage debt and the principal security therefor, he must assign also all (if any) collateral securities he may hold for the same debt, — Scil., because the transferee must (as regards the mortgagor) occupy the same position (neither better nor worse) that the transferor occupied (x) . The mortgagee cannot purchase for himself under the Mortgagee power of sale contained in his mortgage deed (y) ; but vaUd°lease* '^ a second mortgagee may lawfully purchase from a first frommort- mortgagee {z) . Also, an execution creditor may law- ^^"^ ». fully purchase on the sale by the sheriff (a) . Where the gagee may property in mortgage consists of (or comprises) a re- purchasefrom newable leasehold, and the mortgagee renews, — he wiU gagee. take the renewal sutject to the old equity of redemp- Eenewed tion (6), being allowed only his costs of the renewal (c). leasehold. Also, if an advowson be in mortgage, and the living Advowson. become vacant, the mortgagor (and not the mortgagee) presents {d), — That is to say, the mortgagor nominates to the mortgagee the person to be appointed to the living, and requests the mortgagee to present such nominee to the bishop for institution and induction; and the mort- [q) Sheffield v. Edm, supra. \r) Patch T. Ward, L. E. 1 Eq. 436. («) James \. Ruynsey, 11 Ch. Div. 398. (C) Brown v. Sewell, 11 Ha. 49. («) Shelmardine v. Sarrop, 6 Madd. 39. {x) Parker v. Clarke, 30 Beav. 54. (y) Astwood V. Cobbold, 1894, A. C. 150. (z) Shaw v. Bunney, 33 Beay. 494. (a) Stratfordy. Twynam, Jao. 418. (i) Salt V. B.oU, 1 Ch. Ca. 190. («) Godfrey v. Watson, 3 Atk. 518. {d) Mackenzie v. Robinson, 3 Atk. 559. 262 THE ORIGINALLY EXCLUSIVE JURISDICTION. gagor may not agr&e to the contrary (e). The mortgagee of an advowson may, of course, realise his security by sale, — and may also (unless debarred by his own laches (/)) foreclose. If a mortgagee in possession should have felled timber, tM)er'— *^^' an account would be decreed of the proceeds; and the unless security amount (appearing due on the account) would be applied, was msuffi- jj^ payment of the interest, and then in reduction of the principal; and the mortgagee may be restrained from continuing to fell the timber, — excepting that, if his security is insufficient, the Court will not restrain him {g) . And the like rules applied (and still apply) to the opening of new mines {h) : But as regards trees^ the mortgagee in possession may now cut and sell timber (and other trees) ripe for cutting and not planted or left standing for shelter or ornament, — and may even employ a contractor for the purpose (the cutting by such con- tractor to be completed within twelve months from the date of the contract (i)). cieut ; but may now do BO, in a proper manner. Notice, efEect of, — generally ; and also in connection with the tae!c- ing and the comolidafion of mortgages. Where there have been successive mortgages to different individuals, — and the mortgages are either of the same property (in the case of each) or are of different pro- perties, — two very intricate matters now fall to be con- sidered, namely the doctrine of Tacking and the doctrine of Consolidation; but, for the better understanding of each of these two doctrines, it is necessary to first con- sider the doctrine of Notice. Purchaser I. The Dodtrine of Notice. — No rule of equity is better with notice of established than this, that the person who purohases an trustee to the estate, although for valuable consideration, after notice of a prior equitable estate or right, will not be able (by means of the legal estate or otherwise) to defeat the prior equitable estate or right, — but will, on the contrary, be deemed a trustee of the legal estate to the extent of (and extent of such claim. (e) TTelch v. Peterbormigh {Sp.), 15 Q. B. D. 432. (/) Brooks V. Muekleston, 1909, 2 Ch. 519. (g) Withringion v. Bankes, Sel. Ch. Ca. 30. h) Millett V. Dmey, 31 Beav. i70. i) Conveyancing Act, 1881, a. 19. MORTGAGES . 26& for the purpose of supporting) that prior estate or right: And if, therefore, a vendor should contract with two dif- ferent persons successively (for the sale to each of them of the same estate), and the party with whom the second contract is made has notice of the first contract, and not- withstanding completes his contract by taking a con- veyance of the legal estate, — The Court will (in a suit for specific performance by the first purchaser against the vendor and the second purchaser) decree the defen- dants to convey the estate to the first purchaser (it), — and the Court will, usually, make the like decree, although the notice of the prior title should be constructive only (?). But, nota ben&, it is to be assumed in all these cases, that the first contract is a specifically enforceable con- tract (m), — because, if it is not, the second purchaser need not regard it, — and the right to upset it even may be conveyed to the second purchaser (m). In Le Neve v. Le, Neve (o), where lands in Middlesex Lands in had been settled on a first marriage (by a deed which •'^^'^'I'^^^^'TT Qlisct 01 n oT.i Oft was not registered), and were again settled upon a second of unregis- raarriage with notice of the former settlement (by a deed ^^^^ '^®^'^- which was registered), the former settlement was pre- ferred to the latter settlement, — SciL, because registra- tion is not notice (p), and the settlor (who was the same person in the case of both settlements) was the person solely to blame for the non-registration of the first settleinent. But, usually, the registered assurance will prevail (g), — unless it is a mere forgery (r): That is to say, it requires a very strong case to get over the effect of the B,egistry Acts, — express notice amounting to fraud being required (s), and mere negligence {t) or construc- tive notice (m) not sufficing: But it sometimes happens, that (as a matter merely of construction) the subsequent [h) Fatter v. Sanders, 6 Hare, 1 . {T} Trinidad Asphalte Co. v. Coryat, 1896, A. C. 687. \m) Goodwin v. Fielding, i De G. M. & G. 90. \n) De Eoghtm v. Money, L. E. 2 Ch. App. 164. (o) Amb. 436. ( jo) Cator V. Cooley, 1 Cox, 82. (}) Ehey v. Lutyens, 8 Ha. 169; Jollandy. Stainbridge, 3 Ves. 478. (r) Cooper v. Vesey, 20 Ch. D. 611 ; Gibbs v. Messer, 1891, A. C. 248. {«) Holland v. Mart, L. R. 6 Oh. App. 678. (t) Agra Bank v. Barry, L. B. 7 H. L. 138. (k) Bradley v. Rie%es, 9 Ch. Div. 212. 264 THE ORIGINALLY EXCLUSIVE JURISDICTION. document is subject to the prior document, — In which case, the subsequent document will not (merely by force of its prior registration) prevail over the prior docu- ment which is subsequently registered (x) . Lands in And as regards lands in Yorkshire, registered assura/Uces Seot^o?notice liave priority (inter se) according to the dates of their of unregis- registrations ; and the priorities given by the Act are not affected by notice, — except in the case of actual fraud (y), — So that, in Yorkshire, registered assurances of lands axe now in all cases on the same footing (in effect) as regis- tered judgments. But, nota bene, where a document (e.g., an adjudication order in bankruptcy) is not regis- trable, then (in Middlesex and in Yorkshire equally) its priority will not be defeated, by the mere registration of a subsequent registrable incumbrance (z) . Also, where a registered security has been obtained under circum- stances " of grave moral blam.e " attaching to the lender, — and it is registered purposely with the view of prejudicing the prior unregistered security, — That is "actual fraud" within the meaning of the Yorkshire Registry Acts (a) . Also, an unregistered equity, of which the subsequent registered purchaser has notice, will still prevail against him, — 8cil., because it would be a fraud on his part not to hold his registered title subject thereto (6) . Also,i the general rule as regards reed estate, is, that a subse- quent equitable incumbrancer, who has taken his mortgage (or sub-mortgage) without notice of a prior mortgage, will not acquire priority over the prior mortgage, merely by giving notice of his mortgage (c) (or of his sub-mort- gage (d)) to the trustee in whom the legal estate may remain vested; and as regards personal ©state also, a second incumbrancer on a fund in Court, who (at the time of taking his security) has notice of a first incum- (x) Jones V. Barker, 1909, 1 Ch. 322. (V) 47 & 48 Viut. 0. 54 ; 48 Vict. c. 4 ; and 48 & 49 Vict. u. 26. (z) Se Caleott and Ehin, 1898, 2 Ch. 460. (o) Battison v. Eohson, 1896, 2 Ch. 403. (5) Crowly v. Bergtheil, 1899, A. C. 374. (e) Humber v. Bichards, 45 Ch. D. 589. \d) Sopkins v. Memsworth, 1898, 2 Ch. 347. MORTGAGES. 265 brance thereon, will not acquire priority over the first incumbrancer, merely by giving notice to the debtor (e), or obtaining a stop-order on the fund (/) before the first incumbrancer has done so. Also, generally, as regards mortgages of a chose in action, you do not gain priority by giving prior notice of your mortgage, over any prior mortgage of which you have notice yourself (actual or constructive) at the time you lend your own money on your mortgage (g) . It has, however, been long settled, that if a person pur- Case o* sub- 1 iir> 111 -1 ■ ■ 1 ■ 1 purchaser With chases land for valuable consideration with notice, but notice, where from a person icho bought the land without notice (h), the ^^Im with- seoond purchaser may (provided he obtain the legal estate out notice, in the land, or have the best right to call for it) shelter himself under the first purchaser, — Because, otherwise the first purchaser (although bond fide) would be unable to deal with the land, and the sale of real estates would be clogged. And similarly, where a lessee had created a restrictive covenant binding on the demised premises, and afterwards surrendered the lease to his lessor who had no notice of the covenant, — so that the surrender was fully effective, — and the lessor then executed a new lease to the son of the lessee (the son being fully cognisant of the creation of the restrictive covenant by his father), — ^the Court said,; the Ison was not bound by it (i) . . And conversely, if a person who buys with notice sells Caseof suh- to a bond fide purchaser for valuable consideration with- without out notice, the latter may protect his title, — Therefore, notice, where in Harrison v. Forth {h), where A. purchased an estate bought with with notice of the plaintiff's incumbrance (which was "°*i'=e- equitable), — and then sold the estate to B. who had no notice; and B. afterwards sold the estate to C, who had (e) In re Ind Coope # Co., 1911, 2 Ch. 223. (/) Be A. D. Holmes, 29 Ch. D. 786. (y) Spencer v. Clarke, 9 Ch. D. 137 ; In re WenigerU Policy, 1910, 2 Ch. 291. [h) In re Sandman and Wilcox, 1902, 1 Ch. 599. (i) Wilkes r. Spooner, 1911, 2 K. B. 473. [k) Preo. Ch. 51. 266 THE ORIGINALLY EXCLUSIVE JUEISDICTION . notice, — The Court held, that, thougfh A. and C. had notice, yet (as B. had no notice) the plaintiff could not be relieved against the defendant C. But, nota bene, if B. had re-sold to A., the title of A. would have become again affected with the notice which A. had(Z). A purchaser of real estate, who had notice of a volun- tary settlement, was formerly not affected by it (m), — the words of the statute 27 Eliz. c. 4 (against fraudulent conveyances), having so provided; but, by reason of the Voluntary Conveyances Act, 1893, he would now be affected hy notice of such a settlement. Also, where a subsequent purchaser has actual notice of an equitable charge, and he subsequently completes his purchase on the faith of a forged discharge of (or forged receipt for) the equitable charge, — which forgery is, of course, a nullity (w), — he will hold subject to the charge, — and that even in the case of registered land (o) . But notice of a contract, which is merely personal and collateral, will not affect a purchaser of the lands (p), — but a hire-purchase agreement (of machinery to be affixed to the land) is something more than merely personal and collateral {q) . Actual notice. The effect of notice is, in general, the same, whether the notice be actual or constructive (r) : — And, Firstly, as regards Actual Notice, — In order to make it binding, it must be given by a person interested in the property, — and in the course of the business (s) . Therefore, vague reports from persons not interested in the property (or notice given to a person in his private and not in his business capacity (<)), will not amount to actual notice ; and a mere assertion of title in some other person (or a mere general claim of title by some other person) does not amount to actual notice of such other title : But if the know- {l) Barrow's case, 14 Ch. D. 432. [m) Buckle v. Mitchell, 18 Ves. 100. (») Jaredv. Clements, 1902, 2 Ch. 399. (o) Oibbs V. Messer. 1891, A. 0. 248. (p) Phillips T. Milkr, L. K. 10 C. P. 420. (q) In re Hamuel Alien, 1907, 1 Ch. 575. M JProsser v. Sice, 28 Beav. 68. (s) Barnhart v. Oreenshields, 9 Moo. P. C. 18. (t) Agra Bank t. Barrt/, L. R. 7 H. L. 135. MORTGAGES. 267' ledge (from whatsoever source derived) is of a kind to operate upon the mind of any man of business, then it virill amount to actual notice (m), — or, at all events, it may do so, but not necessarily : And in one case, where it was endeavoured to make a solicitor (C.) liable as a construc- tive trustee for the sale-prooeeds of land coming to his hands, and which he had paid over to the persons right- fully entitled thereto (as he honestly believed), — notwith- standing that an alleged settlement was brought to and pressed upon his notice, and a copy or draft of it even was produced (the settlement itseK, if it had ever been executed, being missing); and the solicitor (C.) persisted (and had good cause for persisting), that the settlement never had been executed, — The Court said, that C . could not, in such a case, be made liable, — although the settle- ment (as afterwards appeared) had been executed, in fact {x) . Secondly, as regards Constructive Notice, — That is no Constructive more than evidence of notice, the weight of the evidence ""^^f?;!" . 1 ■ 1 1 1 y-^ ■ T 1 1 vaxieties oi, — being such that the Court imputes to the purchaser that he had notice, — Whence also constructive notice has been sometimes called "imputed" notice (2/): And in Jones V. Smith (z), Wigram, V.-C, resolved oases of construc- tive notice into two classes: — Firstly, " Cases in which the party charged has had (i) Where actual notice, that the property in dispute was in faot ^f^fj^°^'^ incumbered in some way, — and the Court has thereupon which would bound him with constructive notice of facts and instru- ^^^^g^^*" ments, to a knowledge of which he would have been led, other facts, by an inquiry into the incumbrance of which he had actual notice." And, Secondly, "Cases in which the Court has been (2) Where satisfied (from the evidence before it) that the party ^ge^avdded charged has designedly abstained from inquiring, for the to escape very purpose of avoiding notice, — a purpose which, if '^° °®' proved, would clearly show, that he had a suspicion of the truth, and a wilful determination not to learn it." There- (m) Flumi V. Fluitt, 2 Anet. 438. (x) Williams V. Williams, 17 Ch. D. 437. (S/) T/ie Birnam Wood, 1907, P. 1. (z) 1 Hare, 55, applied in Bavis v. Hutchings, 1907, 1 Ch. 356. 268 THE ORIGINALLY EXCLUSIVE JUEISDICTIOK . Examples of constnictiTe notice. fore, in Bisco V. Earl of Banbury (a), where the purchaser had actual notice of a specific mortgage, and the deed creating that mortgage referred also to other incum- brances, — The Court held, that the purchaser (knowing of the specific mortgage) ought to have inspected that mortgage, — and so would have discovered the others. [But, nota bene, the duty to inspect a specific document may (under specia,l circumstances) not arise, — In which latter case, the purchaser would not be taken to know all the contents of the document (&): Also, in mercantile transactions, the doctrine of constructive notice, of the contents of one document from the reference to it in another document, is not applicable (c) .] And again, in Birch V. Ellames (d), where the title-deeds of an estate were deposited with the plaintiff by way of security; and the defendant (fourteen years after) took a mortgage, with actual notice of the deposit with the plaintiff (but without inquiring the purpose for which the deposit was made), — The Court upheld the plaintiff's charge. Absence of the title- deeds, — precautions to observe. But the mere absence of the title-deeds, has never been held sufficient of itself to affect a person with notice, if he has bond fide inquired for the deeds, and a reasonable excuse has been given for the non-delivery of them, — For the Court cannot in such a case, impute to that per- son either fraud or negligence (e) : Secus, if he omit all inquiry as to the title-deeds (/). And as reg'ards regis- tered lands, the law appears to be, that although you are under a duty to call for and to inspect all documents of which a memorial has been registered {g), yet you are under no duty to inquire as to documents which have not been registered (h), — assuming, of course, that (in the latter case) you have no actual notice of them. Also, a distinction has sometimes been taken, between wills and marriage settlements, — it being said, that if you have (a) 1 Ch. Ca. 287. (S) Ward y. Valletort Co., 1903, 2 Ch. 654. (c) London Joint Stock Bank v. Simmons, 1892, A. C. 201. (c[) 2 Anstr. 427. (e) Spemer v. Clarice, 9 Ch. B. 137. (/) Oliver v. Sinton, 1899, 2 Oh. 264. (17) Kettletcellv. Watson, 26 Ch. Div. 501. (A) Affra Bank v. Barry, L. E. 7 H. L. 135. MORTGAGES. 269 notice of a settlement, but are told it does not affect the property, you are safe in omitting to inspect the settle- ment; but that you are not safe (on your purchase from the heir-at-law of a testator) in omitting to inspect the will of which you have notice (i) . And, generally, where a deed which is abstracted recites prior deeds which are not abstracted, the purchaser (or the mortgagee) will be taken, of course, to have notice of these prior deeds; but if the abstracted deed is (say) sixty years old, — or (now) forty years old, — and there is nothing to suggest that the title is bad (or is affected by the prior deeds), you may assume that there is nothing in them which concerns yon(k). A lessee has (and necessarily has (I)) constructive notice Lessee ha^ of his lessor's title, — Scil., because, li a man who pur- notioe"of ^^ chases a fee simple is bound to look into the title in a, lessor's titie. regular way, so also is a man who takes a lease for 1,000 years, or for twenty-one years, or any other lease; and the most express statement (made by the lessor to the lessee), that there are no restrictive covenants, affecting his (the lessor's) title, will not save the lessee from being affected with constructive notice of them, if there are any(m): That is to say, — Before the Vendor and Pur- chaser Act, 1874, the lessee was frequently debarred from looking into the lessor's title, — and since that Act, he cannot (unless he expressly stipulate to see it) look into that title; but in eitlier case, his not looking into the title amounts to the same thing as closing his eyes to avoid inquiry. Also, knowledge by the purchaser, that the land is in Notice of the occupation or tenancy of any one, is constructive occupation or notice of the terms of such occupation or tenancy, — That effect of. is to say, so far as such terms may affect the subsequent relations between the purchaser (completing his contract) and the occupying tenant only, — but not so as to exempt (i) Jones v. Smith, supra. {k) Prosssr v. Watts, 6 Madd. 59. {I) Fatman v. Harland, 17 Ch. D. 353, on p. 357. (»») In rs Cox and Neve's Contract, 1891, 2 Ch. 109. '870 THE ORIGINALLY EXCLUSIVE JURISDICTION. the vendor from the duty of disclosing the terms of the tenancy to the purchaser (n): And notice of Buch _occupation or tenancy is constructive notice also of any agreement which the occupying tenant may hold for the purchase of the property (o), — or (in fact) of any other interest of the occupying tenant in the property {p) : Also, knowledge by the purchaser, that the tenants in occupa- tion pay their rents to some particular person (other than the assuming vendor) is notice, — and is actual notice, — of the title of such other person {q) . Notice that Jt -^iH ^q remembered also, that upon any assignment a residue,— or of the residue under a will, the assignor takes subject to B a^rust f und, the unpaid costs and debts, — and generally to all the equities affecting the residue {r) : And it is here to be further remembered, that when you take a conveyance (whether as purchaser or as mortgagee) of the share of a beneficiary who happens to be also a trustee, you take subject to, — and (in effect) have constructive notice of, — all the trusts affecting that share, — So that the legal estate which you get from that trustee will not protect you against (e.g.) a prior equitable mortgage of the share (s), — or, semhle, against the beneficiaries them- selves (<). (3) Notice to There is a third speoies of constructive notice, — That is notSe tt^Ti'rin- *° ^^3"' ^o^ice to an agent is sometimes held to be con- dpai,— when, structive notice to his principal; and this is generally andwhennot? gQ^ where the Same agent is concerned (in the case of sales) for both vendor and purchaser (m), — or (in the case of mortgages) for both lender and borrower (cc), — an agent so circumstanced being usually called the "common agent." But the imputation of constructive notice is in this case also merely a presumption of fact; and the (m) Caballero v. Hmiy, L. B. 9 Ch. App. 447. (o) Daniels v. Davison, 16 Ves. 2*9. [p) Allen V. Anthony, 1 Mer. 282. Iq) Simtv. Luck, 1902, 1 Ch. 428. ()•) Supra, Tp. 53. (.«) Ferhain v. Kempster, 1907, 1 Ch. 373. (*) Cap II Y. Winter, 1907, 2 Ch. 376. (u) Spencer v. T pham, 2 Jur. N. S. 865. (4 In re Bampshire Land Co., 1896, 2 Ch. 743. MORTGAGES. 271 presumption may be rebutted, — By showing {e>.g.), that the agent had been guilty of some fraud, the communica- tion of which to his principal could not be reasonably, ■assumed (?/), — a principle which has been recognised also in the Partnership Act, 1890 {z), whereby it is enacted, that notice to the active partner is notice to all the partners, unless the active partner is designing a fraud. However, when the agent is the solicitor of the party, and the fraud of the solicitor is in the actual transaction itself,, it is not competent for the client to escape the effect of the constructive notice (a) : Nor will he escape, if the defect (or irregularity) is of so glaring a character, that any one would have necessarily discovered it (6): Also, the most positive proof, that the agent did not, in fact, communicate the notice to his principal, will not (in this class of cases) excuse (or protect) the principal (c), — Scil., in a matter within the scope of the agent's authority. Where the common agent is (e.g.) the secretary of "Common both the borrowing and the lending company, and he has ^tSe ~ personal notice of some irregularity which (if known to through, the lending company before the loan) would be fatal to the validity of the loan, — and he fails to communicate his knowledge of the irregularity to the lending company j — The Court will not impute to the lending company a knowledge of the irregularity (d), — Scil., Because the lending company may reasonably assume, that all pre- liminaries to the loan (being matters of internal manage- ment of the borrowing company) have been duly observed (e) : And the Court has gone so far as to say, that (in the case of such conrnmon agent), if notice is to be imputed to the principal, the agent must be one who has authority both to give the notice on behalf of the one principal, and to receive it on behalf of the other, — (y) In re Cousins, 31 Ch. D. 671. (z) 53 & 54 Vict. c. 39, a. 16. \a) Dixon v. Winch, 1900, 1 Ch. 736. (b) Kennedy v. Green, 3 My. & K. 699. (c) Bauden r. London, ^c. Axsurance, 1892, 2 Q. B. 534. d) Simpson T. Molsons' Bank, 1'*H.5, A. C. 270. 'e) Moyal British Bank v. Turquand, 6 El. & Bl. 327. 272 THE OKIGINALLY EXCLUSIVE JURISDICTION. Constructive notice,— under the Conveyancing Act, 1882. and failing either of these duties, the notice will not be imputed (/) . Also, the mere fact that only one soli- citor was employed in the particular transaction, does not make him the common agent (or common solicitor) for both {g), — S'cil., because, as regards the one of them, he may be the ad hoe solicitor only Qi) . And, generally, as regards constructive notice through a man's solicitors or counsel, if it is desired to affect in equity the principal with notice of something anterior, the notice must have been of something which the solicitor (or his counsel) could be reasonably expected to have then mentioned to his principal (i) : In other words, the know- ledge must have been so material to the transaction which was then in progress, as to have made it the duty of the agent to have communicated it ta his principal: For example, the transferee of a first mortgage would not be affected by his then knowledge of an incumbrance subsequent to the first mortgage, — so as to prevent the transferee from afterwards making a further advance, — such knowledge not having been material to the business of the transfer, for which business alone the solicitor was then acting (A;). And now, by the Conveyancing Act, 1882 (1), s. 3, a purchaser (or a mortgagee) shall not be affected by notice, — Unless the instrument or thing is within his own knowledge, — or would have come to. his own knowledge, if reasonable inquiries and inspections had been made by him; Or unless (in the same trans- action) the instrument or thing has come to the know- ledge of his counsel as such, or to the knowledge of his solicitor (or other agent) as such, — or would have come to the knowledge of his solicitor (or other agent) as such, if Reasonable inquiries and inspections had been made by him (m) : In other words, the doctrine of con- structive notice is not to be applied in a wild sort of way, in order to invalidate a purchase or a mortgage (w). (/) Fenwick's case, 1902, 1 Ch. 607. (g) Perry v. Hole, 2 De a. F. & J. 38. (A) Eettlewell v. Watson, 21 Ch. D. 686. (i) fuller V. Bennet, 2 Hare, 394. [k) Wylie v. Pollen, 32 L. J. (Ch.) N. S. 782. (Z) 48 & 46 Vict. 0. 39. (m) Bailey v. Barnes, 1894, 1 Ch. 25. («) Mogridge v. Clapp, 1892, 3 Ch. 382. MOETGAGES. 273 II. The Doctrine of Tacking. — The usual effect of tack- Tacking, ing is, to enable a third mortgagee, who buys up a first mortgage, to squeeze out the second or mesne {i.e., inter- vening) mortgage, — and thereafter to insist upon being paid the aggregate amount of the first and third mort- gage debts before the second mortgagee gets paid any- thing at all. And the principle is this, namely, — That where the equities are equal, the law shall prevail, — In aquali jure, melior est conditio possidentis ; and as the third mortgagee comes in upon a valuable consideration and without notice, therefore, by getting in the first mort- gage (being a legal mortgage), he shall protect his honest third mortgage debt. There are three leading rules of the doctrine (o), (D Third namely:— (1) Firstly, If a third mortgagee buys in the m^bSfnotice first mortgage (being a legal mortgage), though it be P*^?"™.*^', , pending an action by the second mortgagee to redeem the mor^ge with first (k), — but not after a decree or iudgment for an iioticeof „ , . , . . . / , ° , , . 1 second, may account or lor settling the priorities (g), — yet the third tack, mortgagee (having obtained the first mortgage, and got the law on his side and equal equity) shall squeeze out the second mortgagee, — the legal estate so obtained by, the third mortgagee being looked upon as a " tatnila in naufragio," by means of which the third mortgage© escapes from the shipwreck of his third mortga.ge: And although the third mortgagee gets in the first mortgage uith notice, he shall, nevertheless, be allowed to tack, — equity only requiring that the third mortgagee shall not have had notice of the second mortgage at the time of LENDING HIS MONEY On the third mortgage; and he does not, in fact, look about him, until that loan is found to be in danger. But if an owner (having the legal estate) create a charge in favour of A., and then a second charge in favour of B., and then a third charge in favour of C, — He cannot (by his oion voluntary act) alter the equities between A., B., and C, — by transferring the legal estate (o) Brace v. Duchess of Marlborough, 2 P. W. 491. (p) Selchior v. Renforth, B Bro. P. C. 28. (q) Bristol V, Hungerford, 2 Vem. 524. 274 THE ORIGINALLY EXCLUSIVE JURISDICTION. to any one of them {r); and the Land Transfer Act, 1897, appears to have in no way altered this rule (s) . Apparently, also, if the puisne mortgagee, who gets in the legal estate, gets it in in autre droitj, he cannot use it for any purpose of tacking (t). (2) Secondly, If a judgment-creditor buys in the first mortgage (although being a legal mortgage), he shall not tack his judgment to the mortgage, — Soil., because a judgment-creditor does not lend his money on the im- mediate view or contemplation of the land ; and the effect of the judgment is, in fact, to charge only the interest which at the time remains in the debtor (m). (3) But, Thirdly, If a first mortgagee (being a legal mortgagee) lends a further sum to the mortgagor upon a judgment, he shall retain against a mesne mortgagee until both his securities are satisfied (a;), — and a fortiori, if the first mortgagee lends the further sum on a mort- gage: But the rule will not apply, if the mortgagee (or any of the co-mortgagees {y)) had notice of the mesne incumbrance at the time of making his further advance (z), — So much so, that, although the first mort- gage should have been to secure a sum and further advances, still if the first mortgagee (at the time of mak- ing any further advance) have notice of the mesne incumbrance, he will not be entitled to tack such further advance (a), — not even when he was under an obligation to make the further advance (h): And this rule is appli- cable even as against banks, in respect of the bank's lien on the shares of a customer for moneys due and growing due from the customer (e) . As to "float- As regards the mortgage debentures of a company, ing securities" tljese are in the nature of a "floating security" only, — of a company. ^ ■' ■' ' (2) Juclgment creditor buying in the first mortgage, shall not tack. (3) First mort- gagee, lending a further sum on a jxidg- ment, may tack against a mesne mortgagee. (r) Shropshire Mail. Oo. v. Sfg.. L. R. 7 H. L. 496. (s) Capital^ Counties Bank v Rhodes, 1903, 1 Oh. 631. {t) Mnrret v. Paske, 2 Atk. 52. (w) Jfhitworth T. Qaugain. 3 Hare, 416. \x) Shepherd v. Tiilcy, 2 Atk. 348. {y) Freeman v. Laing, 1899, 2 Ch. .355. («) OredlandY. Potter, L. R. 10 Ch. App. 8. (a) Holt V. HopMnson. 9 H. L Ca«. .514. (*) Wesl^r. Williams, 1899, 1 Ch. 132. (c) Bradford Bank v, Briggs, 12 App. Ca. 29. MORTGAGES. 275 They will therefore not have priority either over a 8ale(d), or over a mortgage (e), of any specific part of the com- pany's property, — not even, szmble, over an execution duly perfected (/), or a garnishee order duly perfected (^), — For the very intention of a "floating security" is, that it shall affect only the property of the company which shall be and remain the unincumbered property of the company at the time of the realisation of the security (h) : , But, in respect of the spwific real estate specifically comprised in and mortgaged by the debenture trust deed, that deed would (on being put in force) have priority over a subsequent mortgage (^). Also, any pro- vision contained in the debenture (whereby the company should be restrained from m.ali;ing such specific sale or mortgage as aforesaid) would not prevent a charge which (like the solicitor's lien) arises by operation of law (k), or any voluntary charge taken without notice (I), or a mortgage taken (with or without notice) on after-pur- chased land, for the vendor's lien thereon for his unpaid purchase-money (m) : But otherwise the provision, whether contained in the debenture itself or in the trust- deed for securing the debenture, being duly registered as the mortgage of the company would, semble, prevail (n) . By the 8 Edw. VII. c. 69, s. 107 (continuing the like provision of the 60 & 61 Vict. c. 19), floating securities are (in all cases) subject to the debts which (upon the bankruptcy of an individual) are entitled to be paid in preference to the general debts of the company; and these preferential payments are enumerated in s. 209 of the Act (being the Companies Consolidation Act, 1908); but the debentures are to be recouped (as against the unsecured creditors) the amount taken by these preferential debts. Floating securities, as between themselves, rank, — as a {d) In re Some and Sellard's Contract, 29 Ch, Div. 736. (e) Wheatley v. Silkstone, ^c. Co., v9 Ch. Div. 715. (/) Taunton\. Sheriff of Warwickshire, lb95, 1 Ch. 734. (g) Rohson v. Smith, 1895, 2 Ch. 118. \h) Svans T. S. G. Quarries, LimUeii, 1910, 2 K. B. 979. (i) In re Ind, Coope df Co., 1911, 2 Ch. 2-^3. (k) Brunton v. Electrical Corporation , 1892, 1 Ch. 434. \l) English and Scottish Mercantile v. BruntM, 1892, 2 Q. B. 700. (m) Wilson v. Kellard, 1910, 2 Ch. 306. (n) Wilson v; Kellard, supra. t2 ^76 THE ORIGINALLY EXCLUSIVE JURISDICTION. general rule (o), but not invariably {p), — according to the respective dates of their respective issues, — each subse- quent issue being (and being expressed to be) subject to the prior issue or issues {q) . These floating securities, pending their realisation, may, however, be diversely pro- tected, — Scil., by the appointment of a receiver and other- wise, — and against executions even (r) ; but they must (for this purpose) have been duly filed, and also registered (-s), --otherwise they will not be entitled to any priority over the general creditors. The following further points with regard to tacking must now be mentioned, that is to say: — society ^ft- (1) -'-*' "^^^d to be Considered, that no tacking (properly gages,— go called) existed, where the first mortgage was to a build- one tSne^t^ ing society and was paid off by the third mortgagee, and recognised; t^g society thereupon either executed the due re-conveyance or indorsed on the mortgage the due statutory receipt; but such third mortgagee (it was considered) had priority only for the sum paid to the building society (with interest thereon (i)),— That is to say, the legal estate, obtained by virtue of the statute, was deemed to have been obtained for the benefit of all the mortgagees according to the priority of their dates (and for the benefit of no but is now one of them in particular): But the old opinion (which semSie. ' was a very reasonable one) has been now held to be erroneous {u), — excepting as regards the re-vesting of the legal estate (a;) : And, therefore, when the building society indorses the statutory receipt, and a new mortgage is made {without notice of a mesne mortgage) to a third person, who pays off the society and who takes over all the title- deeds from the society, the new mortgage ranks as the (o) Lister -v. Lister Co., 1893, W. N. 33. (p) Cox Moore's case, 1908, 1 Ch. 604. (?) Ward\. Valletort Co., 1903, 2 Ch. 654. (»•) Davey v. Williamson, 1898, 2 Q. B. 194. (s) 8 Edw. VII. 0. 69, ss. 93, 100. (<) Fense v. Jackson, L. R. 3 Ch. App. 576. («) ffoskinff V. Smith, 13 App. Ca. 682. {x) CrosHe-Mill -v. Sayer, 1908, 1 Ch. 866. MORTGAGES . 27T « first mortgage, not only for the amount paid to the sdciefij^ but for the whole sum secured by the neiv mortgage. (2) Regarding mortgages with a surety, some rather Mortgages- nice distinctions require to be taken: For, if A. is the ^^_ mortgagor, B. the surety, and C. the mortgagee, and B. distinction (as surety) merely coveuants to pay the mortgage debt; ^o^^ and C. lends a further sum to A-> — C. will in general according as have the right, as against J5., to tack the further advance a mere cove- to the first mortgage debt {y) : But if A. is the mortgagor, na^toi". oris B . the surety, and C . the mortgagee, — and B . not merely mortgagor. . covenants for payment of the debt, but is also a co-mort- gagor icith A. bringing some property of his (B.'s) own into the security, — Then if C. lends a further sum to A., C. cannot, as against B., tack this further advance to the first mortgage debt, — Soil., Because (in this latter case) B. has not merely a right (on payment of the first mort- gage debt) to delivery up of the security, but has 9.11 equity of redemption, which is good and valid as against C. even (z). (3.) A prior mortgagee, who holds also a bond debt, When a bond, cannot tack the bond debt to his mortgage debt, — either as t^ke™— ^ against any intervening incumbrancer or as against an (a) During intervening judgment-creditor or bond creditor, — or even _*g"^g^.^^*°'''^ as against the mortgagor himself, — But can tack it, only (b) Afterdeatb as against the heir or beneficial devisee of the deceased 0* debtor,— mortgagor, — and that only for the purpose of avoiding voiimteers. circuity of action (a) : In other words, a bond debt (or, in fact, any other unsecured debt) cannot be tacked at all, —Scil., during the life of the mortgagor, but only after his death and upon an administration of his assets, — when it will be preferred, of course, to the heir or beneficial devisee of the deceased (b) : But a debt for which judgment had been obtained might be so tacked, — Soil., as against the genera,l creditors of the deceased (c) . (i/) Williams v. Owen, 13 Sim. 597 ; NichoUa v. Eidley, 1904, 1 Ch. 192. (z) Bowlcer v. Bull, 1 Sim. N. S. 29 ; Noyes v. Pollock, 32 Ch. D. 53. (a) Talbot v. Frere, 9 Ch. Div. 568. (*) In re Gregson, 36 Ch. Div. 223. (c) In re Emelfoot, L. E,. 13 Eq. 327. 278 THE ORIGINALLY EXCLUSIVE JUKISDICTION . Tackiug, non- •existent under Yorkshire iBegistries Act, 1S84. Actions to establish priorities. Priority may te lost by mortgagee's -iraud ; or by his negligence inducing deception. (4) It follows from the provisions of the Yorkshire Registries Act, 1884 (d), that (as regards all lands in Yorkshire) the doctrine of tacking is wholly abolished, it having been provided by the Act, that, as between the successive mortgages, — legal or equitable, — and including liens, — the date of registration shall determine the order of priority, excepting in cases of actual fraud; and, for the same or the like reason, there will (now) be no tacking as regards charges which have been created (and duly registered in the Land Registry) under the Land Transfer Act, 1897: Sed qucere. (5) In a suit or action to establish priorities as between successive mortgagees, the Court has regard to the doctrine of tacking, to the doctrine of notice, and to every other rele- vant consideration; and therefore, although (as between successive mortgagees) the first in time retains, in general, his priority, yet he may lose his priority — either for fraud (e) or for gross negligence (/) : For example, where a mortgagee of leasehold property lent the lease to the mortgagor, — for the purpose of obtaining a further ad- vance upon it, and on the assurance of the mortgagor that he wvuld inform the lender of the prior charge ; and the mortgagor (breaking faith with the mortgagee) de- posited the lease with his bankers, without informing them of the prior charge, — It was held, that negligence of this sort (on the part of the prior mortgagee), — negli- gence luhich had put it in the power of the mortgagor to commit the fraud, — postponed his mortgage to the security of the bankers (g) . And even a legal mort- gagee may be so postponed, — Scil., by some positive act of the mortgagee conducing directly to the fraud (h), — but not without some such positive act (^) . And note, that, in these actions to establish priorities, a plaintiff, although unsuccessful in establishing his own priority, may (and usually will) get his costs of the action, if the [d) 47 & 48 Vict. c. 54. (e) Ratdiffe-v. Batnard, L. R. 6 Ch. App. 652. (/) Olirer v. Siiito/i, 1899, 2 Ch. 264. (ff) Briggs v. Jone-i, L. R. 10 Eq. 92. (A) Dixon Y. Wiwh, IPOO, 1 Ch. 736. (i) Shropshire Union Sail. v. Heg., L. B. 7 H. L. 496. MORTGAGES. 279 proceedings therein have enured for 'the benefit of the other mortgagees, and some proceedings of the sort were absolutely necessary to be taken by some one (Ic) . And (6) A solicitor is usually liable for negligence, Solicitor's i. J- • ■ i. /7\ • negligence,— in not discovering a mesne or prior mortgage [1), — or in effect of. not seeing that the security which he takes is a sufficient security (m) . And if he take a cheque in payment, it is negligence in him, to part with the deeds before the cheque is cashed (n), — Scil., in the absence of any specific au- thority to do so; and a tender by cheque, where the solici- tor's authority is only to receive payment in cash, is not to be accepted. And,, for any such negligence by a solicitor, the remedy may occasionally be summary (o) ; but, far more usually, the formal remedy by action is resorted to, — especially when it is sought to recover damages for the negligence (as distinguished from re- quiring the solicitor to merely make good some defalca- tion or the like (p)). III. The Consolidation of Mortgages. — As regards all ConsoUdation mortgages made prior to January 1, 1882, the general ^T* ^^^^^' rule in equity was, that (both in suits for foreclosure mustradeem and in suits for redemption) the mortgagee could con- ««themort- solidate a mortgage on A. and a mortgage on B., and the mortgagee insist on being paid both mortgages or neither, — that is, toldsonhis could always "consolidate" these two mortgages, — as P™P®"y- against the original mortgagor, and also as against the trustee in the bankruptcy of that mortgagor (g), and also as against any other assignee of the mortgagor, who was an assignee of both A . and B . (r) . But where the mort- gagor's assignee was of A. only, or was of B. only, the mortgagee could, as against that assignee, consolidate only if both the mortgages had united in him (the mort- (k) Batten v. Dartmouth Commissioners, 45 Ch. Div. 612. \T) In re Bangar's Trusts, 41 Ch. Div. 178. im) Boohy v. Watson, 39 Ch. D. 178. («) Tape V. Westacot, 1894, 1 Q. B. 272. (o) Dixon V. Williamson, 4 De Or. & J. 508. (p) Marsh v. Joseph, 1897. 1 Ch. 213. {}) Sel/iy T. Pomfret, 1 J. & H. 336. \r) Vint y. Fadgett, 2 De G. & J. 611 ; Tledge i. White, 1899, A. 0. 187. 280 THE ORIGINALLY EXCLUSIVE JURISDICTION. Consolidation, — abolition of, under Convey- ancing Act, 1881. Consolidation, — ^leaning of the Courts against. gagee) before the date of the exeeution of the assign- ment (s), and not after that date: Also, there never was any right of consolidation, either (1.) where there had been no default (^); or (2.) where one of the mortgages had ceased to exist (w), — or was not yet existing '(a;). And, now, under the Conveyancing Act, 1881 (44 & 46 Vict. c. 41), s. 17, — unless the effect of the Act is expressly excluded or varied {y), — a mortgagor, as regards mortgages made (or one of which is made) on or after the 1st January, 1882, if he seek to redeem any one mort- gage, is entitled to do so, without paying any money due under any s.eparate mortgage, made by him (or by any person through whom he claims) on property other than that comprised in the mortgage which he seeks to redeem; and, as regards the costs and charges of the mortgagee (being costs and charges which he is entitled to add to his security) these also will not, now, be consolidated, — ex- cepting where (and so far as) the principal and interest may be consolidated (2). Even before the 1st January, 1882, the Courts had begun to regard with disfavour the doctrine of the con- solidation of mortgages (a) ; and since that date, when a case comes before the Court to which the provisions of the Act of 1881 are inapplicable, the Court inclines very strongly against the doctrine, — and will (if, on any decent pretext, it can) decide against the right to con- solidate, — on the pretext {e.g.), that the mortgagors were distinct persons originally, and only latterly became one and the same person (6): However, notwithstanding all that, the right to consolidate (which is often a valuable one for mortgagees)' may be diversely preserved, — either by uniformly (in every mortgage) excluding the provi- sions of the Act of 1881, — which is the simplest thing to do, — or else, on everj^ occasion of a new mortgage, (s) Karter v. Coleman, 19 Ch. D. 630. (1!) Cummins v. Fletcher, li Ch. Div. 699. (e() In re Raggett, 16 Ch. Div. 117. (x) Jennings v. Jordan, 6 App. Ca. 698. {y) Hughes v. Britannia Society, 1906, 2 Ch. 607. {z) De Caux v. Skipper, 31 Ch. Div. 635. (a) Saker v. Gray, 1 Ch. D. 491. (i) Sharp v. Richards, 1909, 1 Ch. 109. MORTGAGES. 281 obtaining a transfer of (and expressly, for this purpose, keeping alive) the old securities: • And here it is to be observed, that where real and per- No compulsory sonal estates are mortgaged together, and the mortgagor o^e*^^y°f °* dies (leaving ^ will of personalty but intestate as to his the mortgaged real estate), and the mortgagee enters into possession, — properties. The executrix of the mortgagor is entitled to redeem the whole of the mortgaged piroperty, even although the mort- gagee may insist that her only right is to redeem "the personal estate in mortgage, — Scil., because she (the executrix) cannot insist on redeeming the personal estate Separately, her right {and her duty) being to redeem the whole, subject to the equities of the persons interested (c) : In other words, the rule still is, " all or none," where j^ou come- to redeem. Equity having determined that the mortgagor should Special be relievable on payment of principal interest and costs, remedies of it was only just, that (after a fair and reasonable time (a) fote- ' given to the mortgagor to discharge the debt) he should closure, be foreclosed his equity of redemption: Which remedy by foreclosure is in respect of the mortgagor's default, — and is therefore availa^ble, only after default, — i.e., after the legal right of redemption is gone (d) : And, nota bene, the remedy is not available at all against the crown, in respect of mortgaged estates which have escheated to the crown (e)); but (all the same) the crown, acquiring title by escheat, takes subject to the mort- gage (/). In the action of foreclosure, when the plaintiff is a first Foreclosure mortgagee, he makes all the subsequent mortgagees (in- ^^t'i^e'aE eluding even debenture holders (gf)) co-defendants with and time for; the mortgagor, — there being no piecemeal foreclosure, nor piecemeal redemption, save by consent (A) . An inter- (c) Sail V. Meward, 32 Ch. Div. 430. {d) Zislev. Reeve, 1902, 1 Ch. 63 ; TurneWs case, 1908, 2 Ch. 62. \e) Ztitwich's case, 2 Att. 223. (/) Beevev. Att.-Gen., 2 Atk. 223. {g) WaUace v. Ecershed, 1899, ICh. 891. (/i) Caddiek v. Cooke, 32 Beav. 70. 282 THE ORIGINALLY EXCLUSIVE JUHISDICTION . mediate mortgagee also is entitled to commence the action, — 8,cil., against the mortgagor and all mortgagees sub- sequent to himself (i) ; and in this action, he usually oHers to redeem any mortgagees prior to himself (whom, for this purpose, he makes parties to the action): The action for foreclosure, where the mortgagor is bankrupt, may be brought in the Chancery Division, — although the remedy may also (in such a case) be obtained in the Bankruptcy Division (fc). and judg- ment in. The judgment for foreclosure directs the necessary account, to ascertain what is due to the plaintiff-mort- gagee, — giving any special directions, where there are special circumstances which will affect the account; and the judgment directs foreclosure, in case of failure to pay the amount which (on the account) shall be found due : And, nota bene, the mortgagor may insist on the account being taken, although the taking thereof may be merely vexatious; but the Court may (in its discre- tion) stay the account (l), — with liberty to apply. If the mortgagor should have commenced an action to re- deem the mortgagee, and he should eventually fail to redeem, his action will be dismissed with costs, — and the dismissal operates (but in the case of legal mortgages only) as a complete foreclosure (twJ. Successive re- demptions, — complications (and surprises) in workmg out the fore- closure judg- ment. The working out of the foreclosure judgment, — in cases of complication, — is usually full of surprises: Thus, in Titley v. Davies (w), where three estates were mortgaged to S.; and afterwards one of them was mortgaged to the plaintiff T.; and then another of them was sold to P.; and then the third one was mortgaged to the defendant D.,— The Court said, (1) Tlmt T. could redeem S.,— and thereafter hold all the three estates against both P. and D.; and (2) That P. could redeem T., — and thereafter not only hold his own purchase free of redemption, but also require D. to redeem him (or else be foreclosed) as regards the other two properties. And in Bugden v. (i) Greennugh v. Littler. IS Ch. Div. 93. \k) Ex parte Fletcher, 10 Ch. Div. 610. {I) Exchange, ^c. Ltd. v. Land Financiers, 34 Ch. D. 195. (m) Marshall v. Shrewshury, L. E. 10 Ch. App. 250. («) 2 T. & C. C. C. 399. MORTGAGES. 283 Bignold (o), there was the like sort of surprise, in a case of the like complication. Also, in Flint v. Howard (p), where two estates were mortgaged to the defendant H.; and afterwards one of them was mortgaged to the plaintiff F.; and then the other was mortgaged to the defendant H.; and the plaintiff F. (as regards the estate in mort- gage to him) foreclosed the mortgagor, — and claimed to redeem the defendant H., — The Court said, (1) That F. could redeem H. (his first mortgage), — ^and thereafter hold the foreclosed estate free of redemption, and at the same time require H. (in respect of H.'e second mortgage) to redeem him (or else be foreclosed) as regards the other of the two estates, — but H. was to pay only (for such redemption) a due and rateable proportion of the aggre- gate mortgage debt (the proportion to be ascertained on the basis of the relative values of the two estates) . The remedy of a debenture holder is, usually (upon a Debenture declaration of charge first made (q)) the appointment thei/reinedy. of a receiver (r), and sometimes of a manager (s); but he may also (in a proper case) have a winding-up order(i), or a sale of the undertaking (m), — but not if the company is a school (x), or is a Tramway Company (y), or a Water- works Company (z), or a public company generally, — at least, in general (a) . A mortgagee being (since the Judicature Acts) entitled Judgment for to combine in one action his right to foreclosure with his l^dnerronal right to a personal, judgment on the mortgagor's covenant judgment for (or bond) for payment of the debt, — so much so that d^^t'^^m?'' (if he bring two actions instead of one action) he will biuationof. have one of his actions stayed (&), — The form of judg- (o) 2 T. & C. C. C. 377. (p) 189.3, 2 Ch. 54. (?) Marwick v. Lord Thurlow, 1895, 1 Ch. 776. (r) In re H. Found # Co., 42 Ch. Div. 402. (s) Leas Hotel case. 1902, 1 Ch. 332. . (/) Sadler v. Warley, 1894, 2 Ch. 170. (m) Blias V. Oxygen Co., 1897, 1 Ch. 611. {x) Sornsey District Cotmcil V. Smith, 1897, 1 Ch. 843. ly) Marshall v. South Staffordshire Tramway Co., 1«95, 2 Ch. 36. (z) Blaker \. Herts Waterworks, 41 Ch. D. 399. {a) Central Ontario Mailway case, 1905, A. C. 576. (5) Williams v. Sunt, 1905, 1 K. B. 512. 284 .THE OKIGINALLY EXCLUSIVE JURISDICTION. ment (Scil., against the mortgagor who has covenanted to pay the debt, — but not against any mere transferee of the equity of redemption (c)), is as follows: — Firstly, if the amount of the mortgage debt is either proved admitted or agreed at the trial or hearing, the plaintiff recovers against the defendant the debt, and also so much of his taxed costs of the action as would have been incurred if the action had been brought for such pay- ment only, — the judgment carrying interest at the rate of 4 per cent, per annum (d). Secondly, if the amount of the mortgage debt is not proved admitted or agreed at the trial or hearing, an account is taken of what is due to the 'plaintiff for principal and interest under the covenant to pay; and the plaintiff recovers against the defendant the amount which shall be certified to be due to him on taking that account, and also so much of his taxed costs as would have been incurred if the action had been brought for payment only: And, then, — Thirdly, whether the amount of the mortgage debt is or is not proved admitted or agreed at the trial or hearing, the judgment proceeds to direct an account of what is due to the plaintiff under and by virtue of his mortgage security and for his taxed costs of the action; and in taking such account, what (if anything) the plaintiff shall have received from the defendant under the personal judgment is to be deducted, and the balance due to the plaintiff is to be certified, with interest to be computed at the rate re- served by the mortgage deed (e) ; and where the mort- gagee is in possession at the date of the foreclosure judg- ment, the account directed to be taken will extend to the rents received by him (subject to all "just allowances" for his outlay or expenditure on the mortgaged property) : The defendant is usually allowed one month for pay- ment under the personal judgment, and six months for (c) In re Errington, 1894, 1 Q. B. 11. \d) Ecommic Life t. Usborne, 1902, A. C. 147. («) Economic Life v. Usborne, supra. MORTGAGES . 285 iredemption under the foreclosure judgment: And if any rents shall have been received by the mortgagee after the certificate of the amount due, and before (/) (but not after (g)) the day which (by the certificate) is fixed for redemption, a new day for redemption must be fixed, — and a new (supplementary) account taken of what is due; but the necessity for that supplementary .account may sometimes be obviated (h) . Before the statute 15 & 16 Vict. c. 86, equity refused, (b) Sale,— in general, to decree a sale against the will of the mort- m gy order gagor; but (under that statute, s. 48) the Court of Chan- of the Court: eery was enabled, at the trial, to direct a sale of the mort- Igaged property instead of a foreclosure thereof (i) : And, now, by the Conveyancing Act, 1881, s. 25, the sale may be directed even upon an interlocutory application (Jc), — and either in a foreclosure or in a redemption action (l) ; and (when there are successive mortgages) without Y>^'e- viously determining the priorities of the incumbrancers. A power to sell the mortgaged hereditaments is also Or, (2) Under usually inserted in the mortgage deed itself; and the con- ^^emort-^ currence of the mortgagor in the sale is not (in such a case) gage deed, necessary to perfect the title of the purchaser (m) . The mortgagee (selling under such an express power) is at liberty to retain to himself his principal interest and costs; and in case the net sale-proceeds are insufiicient to pay the principal interest and costs, the mortgagee may apply the whole of them towards payment of his principal (so as to escape the income tax which would otherwise be payable on the arrears of interest (w)). But a mortgagee, who has obtained an order nisi for foreclosure, can only sell with the leave of the Court (o) ; and if he have ob- tained an order absolute for foreclosure, he cannot after- (/) Jenner Fust v. Needham, 32 Ch. Div. 582. (g) Rnper's case, 1892, 1 Ch. 54. \h) Simtnons v. Blandy, 1897, 1 Ch. 19. (t) London and County Banking Co. v. Dover, 11 Ch. Div. 204. [k] Woolley v. Caiman, 21 Ch. Div. 169. (I) Union Bank of London v. Ingram, 20 Ch. Div. 463. (m) Newman v. Selfe, 33 Beav. 522. (») Smith V. Law Guarantee, 1904, 2 Ch. 569. (o) Stevens v. Theatres, Ltd., 1903, 1 Ch. 867. 286 THE ORIGINALLY EXCLUSIVE JURISDICTION. ward's exercise the power of sale at all {p), — although, if he has acquired the equity of redemption by adverse possession only, he may still exercise his power of sale {q) . Surplus sale- proceeds, — the title to, and payment of, with inte- rest thereon. Where the mortgagee has lawfully and properly exer- cised his power of sale, and there is a surplus of the sale- proceeds, that surplus can only be retained by the selling mortgagee for his own benefit, when he has acquired (by adverse possession) the title to the equity of redemption; and otherwise the surplus must be paid over to the person or persons who (but for the sale) would have been entitled to redeem: And although a mortgagee is not (in general) a trustee for the mortgagor, — and, in particular, is not a trustee for the mortgagor as regards the exercise of the power of sale (r), — and that whether the mortgage is in the ordinary form or is in the form of a trust for sale (s), — Still the mortgagee is a trustee (although a construc- tive trustee only {t)) of the surplus sale-proceeds (if any); and he must exercise great care of that surplus, even when the mortgagor himself is the vendor, and he (the mort- gagee) is merely receiving his mortgage money and re- leasing the property (m) : Also, the mortgagee is liable to pay interest, on the surplus sale-proceeds, at the rate of 4 per cent, from the date of the completion of the [x). Surplus sale- prooeeds, erroneous payment of, effect of. Where there was a mortgage of leaseholds by A. to B., and the mortgagor (who was a female) afterwards inter- married with C; and C. died, leaving A. surviving; and B. as mortgagee then sold the leaseholds to the plaintiff; and (there being a surplus after satisfying B.'s mortgage debt) the plaintiff paid that surplus toC.'s executors, — A. afterwards compelled the plaintiff to pay the surplus over again to herself (obtaining judgment against him for the (jo) Watson v. Maraton, 4 De G. M. & a. 230. \q) Johnson v. Mounsey, 11 Ch. D. 285. (»■) Warner v. Jacobs', 20 Ch. D. 220. («) Locking v. Parker, L. E. 8 Ch. App. 30. {t) Thome v. Seard, 1895, A. C. 495. (m) West London Bank v Reliance Societi/, 29 Ch. Div. 954. (.r) Charles v. Jones, 35 Ch. Div. 644. MORTGAGES. 287 amount): Wh6reuJ)on the plain tiff sued C.'s executors, to recover back from them the surplus which had been (erroneously) paid by him to them,— But the Court said, that he was not entitled to recover it {y) . If, by the terms of the power of sale contained in the Effect, where mortgage deed, notice to the mortgagor is required to be '^'^^^enT^ given before exercising the power, the mortgagee (who before exer- should sell without giving such notice) would be liable in ol^ife^"^^^ damages to the mortgagor or to his transferee (or " assign ") of the equity of redemption [z) : Usually, however, a bond fi/Cle purchaser from the selling mortgagee is (under the express words of the power) not affected by such notice not having been given, — or, in general, by any other neglect of the selling mortgagee: But, even so, any purchaser may (if he chooses to do so) take the objec- tion that the due notice has not been given (a) ; and if the purcliaser has express notice that the selling mort- gagee has not given the due notice, the purchaser would not be safe in completing (6). Also, the mortgagee, iwhen he is selling bond fide, may sell for the net amount of his mortgage debt (o) . The mortgagor (or one or two or more co-mortgagors), may (just like any puisne mortgagee may (d)) lawfully purchase from the mortgagee selling in bond fide exercise of his power of sale (e) ; but the mortgagee who is exer- cising the power of sale may not himself purchase (/), — although, if he should purport to purchase, aod then after- wards should sell to a bond fide purchaser, the- title of the latter will be good, the selling mortga.gee beooming accountable (in such a case) to the mortgagor for the pur- chase-moneys paid by such subsequent purchaser (g) . (y) Clare v. Lamb, L. E. 10 C. P. 334. (z) HooU V. Smith, 1 7 Ch. Div. 434. (a) Life and Reversionary v. Hand in Sand, 1898, 2 Oh. 230. (b) Selwyn v. Gnrjitt, 38 Ch. Div. 273. (s) Melbourne Bank case, 7 App. Ca. 307. \d) Supra, p, 261. («) Knmdy t. De Trafford, 1897, A. C. 180. (f) Hodgson \. Beans, 1903, 2 Ch. 647. (g) Astwoody. Cohbold, 1894, A. C. 150. ' 288 THE ORIGINALLY EXCLUSIVE JURISDICTION. Or, (3) Under statutory power of sale conferred by Conveyanomg Act, 1881, ss. 19—22. Selling mort- gagee,— may leave part of sale-proceeds outstanding. By the provisions of th© Conveyancing Act, 1881, ss. 19, 20, 21, and 22, a power of sale has also been ren- dered incident to every mortgage or charge (by deed), — Soil., unless where the deed itself expressly excludes these provisions; but the statutory power of sale is not to be exercised, until either (1) Notice requiring pay- ment of the mortgage money has been given, and has been followed by three months' default {Jv) ; or until (2) Interest is in arrear for two months after becoming due; or until (3) There has been a breach of some provision (other than the covenant to repay) contained in the mort- gage deed or in the Act. Where a mortgagee sells under his power of sale, he sometimes leaves part of the purchasermoney outstanding and unpaid; and he may do that well enough, provided he credit the mortgagor with the whole of the purchase- money as actually received (J) : And the unpaid portion of the purchase-moneys is a matter which thereafter concerns only the mortgagee and the purchaser, — the selling mortgagee having a lien therefor on the purchased hereditaments; or, if the unpaid purchase-moneys are secured by a mortgage, the sale and the mortgage are (both of them) entirely good, — being, in fact, distinct transactions. Where the selling mortgagee has only the equitable estate, he can convey only the estate which is in him- self (&), — discharged of the equity of redemption, of course; but as regards mortgages of leaseholds, where the mortgage is by demise (leaving the last day, or last two or three days, outstanding), then, under Lord Cran- worth's Act (23 & 24 Vict. c. 145), ss. 15, 16,— wherever that Act is applicable (but not otherwise), — the selling mortgagee can, by the exercise of his statutory power of sale, vest the whole original term of years (including the outstanding day or days) in the purchaser (J) . Or, (4) Under When mortgaged property is taken by compulsory Ciause"con- purchase under the provisions of the Lands Clauses Con- solidation Act, (A) Barker's case, 1908, 2 Gh. 20. if) Thurston v. Mackeson, L. K. 4 Q,. B. 97. \k) In re Hodson and Howe, 35 Ch. D. fi6S. \j) In re Solomon and Meagher, 40 Ch. D. 508 Last day outstanding, — conveyance of. MORTGAGES . 289 solidation Act, 1845 (or under any special Act incor- i845,— oom- porating' the provisions of that Act), the compensation pensationon moneys go to the mortgagee, including the proportion p^ohase!'^ paid for the goodwill (if any) attaching to the pre- mises (m), — ^assuming always that (and so far as) that goodwill is included in the mortgage (re), and is not a merely personal goodwill (o) : And these compensation moneys are, in general (p), — but not invariably (q), — applicable (after interest in arrear • has been paid, and after all costs paid) in reduction of the principal of the mortgage debt; and when the mortgage is a debenture (covered by a trust deed), the compensation moneys are payable to the trustees of the debenture deed (r) . Simi- larly, where the compensation is payable in respect of the extinction of a public-house licence, that is capital money, — and is to be settled as the house itself was (and remains) settled (s) . Where the mortgage deed contains an attornment (c) Distress,— clause (or contains a re-demise), the mortgagee may also for interest, (like a landlord for his rent) distrain upon the mortgaged priacipai. premises (the distrainable articles thereon, whether be- longing to the mortgagor or to any third person (t)), — for the arrears of his interest, — and sometimes even for a large part of his principal, — Provided only that the attornment clause be not fraudulent (m), and provided also that (as against a company which is in course of being wound up), the leave of the- Court for the distress shall have first been obtained (x), — Which leave may, of course, be refused. But an attornment clause must (in general) be registered as a Bill of Sale (y) ; but the attornment clause, although unregistered, effectively creates the relation of landlord and tenant (;::), — only the ()») File V. File, 3 Ch. Div. 36. («) Clarke y. White, 1899, 1 Ch. 316. (o) G"oper v. Melnpolitan Board, 25 Ch. D. 472. [p) Thompson v. Hudson, L. E.. 10 Eq. 497. [q) Wrigley v. Gill, 190>f, 1 Ch. 165. (>■) Law Guarantee T. Mitcham Brewery, 1906, 2 Ch. 98. is) In re Bladon, Bando v. F,rter, 1911, W. N. 170. (4 Keanley v. Philhps, 11 Q B D. 621. (m) Ex parte Jaekson, 14 Ch. Div. 725. {x) lee T. Eonndwood Co., 1897, 1 Ch. 373. (y) Green v. Marsh, 1892, 2 Q. B. 330. {«) In re Willis, 21 Q. B. D. 384 ; Zee v. Soundwood Co., supra. 290 THE ORIGINALLY EXCLUSIVE JURISDICTION. tenancy thereby created determines with the death of the mortgagor (a), — or upon a transfer by the mort- gagee (6). And here note, that a creditor obtaining a judgment for his debt and becoming thereafter a tenant by elegit, may distrain, — and may do so without any attornment of the occupying tenant (c) . (d) Adminis- A mortgagee (seeing that he is a creditor) may also tration action, commence a creditors' action for the administration of the estate of the mortgagor (where the mortgagor is dead (d)), — and he will (in due course) get paid his mortgage debt in that action pari passu with the unsecured creditors, — valuing his security (or otherwise dealing with it), as explained in the chapter on the Administration of Assets, — where the mortgagor is dead insolvent. Mortgagee If the mortgage debt b© secured on real estate, and his remedies^ also Collaterally by covenant or bond, the mortgagee may concurrently, pursue all his remedies at the same time; but while the mortgagee may add to the principal moneys owing on his security all his costs charges and expenses (properly in- curred), he cannot do that in his action of deibt or of covenant (e). Every loan implies, of course, a debt, — and (where there is no express covenant to pay) a simple contract debt(/); and if the security ceases or is deter- mined, while the loan (as to any part thereof) remains unpaid, the lender may still have his personal action of debt (or of covenant or assumpsit) for his mortgage debt: Therefore where there was a mortgage of leaseholds :by sub-demise, and the lease (out of which the sub-demise was created) was forfeited by the lessor, — whereby the sub-demise also was compulsorily ended (g), and the security was therefore determined, — The mortgagee was held entitled to sue in debt for his loan (h) : And, con- (a) ScoUc V. Collins, 1895, 1 Q. B. 37-7. (A) B'own V. Metropolitan Society, 1 Ell. & Bl. 832. (c) LUydY. Davies, 2 Exoh. 183. {d) Spemley v. Warrison. L. E,. 15 Eq. 16. (e) Ex parte Fewings, 25 Ch. Div. 338. (/) Jackson V. North Eastern R. C.,7 Cli. D. 739. In) Smith V. Great Western R. C, % App. Ca. 165. (A) Burrell v. Smith, L. R. 7 Eq. 399. MORTGAGES. 291 Tersely, although the personal right of action may have been barred by time, yet the security may itself remain and continue (i) ; but, of course, if the loan has been repaid, the security will be discharged also. If the mortgage© obtain full payment on the bond or '' Opening th« covenant (or simple contract), the mortgagor is (by the —what it is, "fact of payment) entitled to a reconveyance of the estate, t^^ ^^^^ ^* ij?i •/■! \ 1 -I happens. — and loreclosure is (m that case) rendered unnecessary. But if the mortgagee obtains only part payment on the bond or on the covenant (or on the simple contract debt), then he may institute (or go on with) his foreclosure action, and (giving credit in account for what he has received) foreclose for the remainder, — and, of course, he may (in such a case) sell also for the remainder of his debt. ; If the mortgagee (not choosing to sell, but electing to foreclose) obtains a foreclosure first, — and then alleges, that the value of the estate is not sufficient to satisfy the mortgage debt, — He is not (in such a case) absolutely precluded from suing on the bond or covenant (or on the simple contract); but (by doing so) he gives to the mort- gagor a renewed right to redeem the estate and to get it back, — Or, in other words, he thereby " opens the fore- closure " [k). If, therefore, the mortgagee (after fore- closure) commence an action against the mortgagor on the bond covenant or simple contract, the mortgagor may counterclaim against him for redemption, — So that, if the mortgagee has so dealt with the estate as to be unable to restore it to the mortgagor, the Court will (or, at least, may) stay the action (Z). Also, generally, a fore- closure decree is almost always liable to be opened, — and .a mortgagor may (for good cause shown) redeem even after foreclosure absolute (m) : Secus, where there has been a sale (in lieu of a foreclosure (w)). (i) migill T. Wilkinson, 38 Ch. D. 480. {k) Dyson v. Morris, 1 Ha 413. (l) Pahner v. Bendrie. 27 Beav. 349. (m) Campbell v. Holi/hni, 7 Ch. Div. 166. - (») Lockhart v. Sardy, 9 Beav. 349 ; Tooke v. Wariley, 2 Diek. 785. u2 292 THE ORIGINALLY EXCLUSIVE JUSISDICTION . Mortgagor's continuing liability on covenant ; and his in- demnity from purchaser, effectuated even as against subsequent, mortgagee. The original mortgagor, having expressly covenanted to pay the debt, remains liable, of course, to the original mortgagee on that covenant, even after he has conveyed away his equity of redemption to a purchaser; and (in such a case) the purchaser is not personally liable to the mortgagee on the covenant, — although he may be (and usually is) liable to the mortgagor, on his (the pur- chaser's) own covenant with him, to pay the mortgage debt, and to indemnify the mortgagor from it (o) : And where there is such a covenant of indemnity, if the pur- chaser should (after his purchase) have made a second mortgage on the estate, and the first mortgagee after- wards sues the mortgagor, — The latter (on payment of the mortgage debt) will be entitled to a reconveyance of the mortgaged hereditaments, — and will in that way obtain (even as against the second mortgagee) a security on the mortgaged hereditaments in aid of the covenant of indemnity (p). Also, where a first mortgagee fore- closes (although by consent), a second mortgagee is not prevented thereby from afterwards suing on the mort- gagor's covenant to buy, — and if the mortgagor should meanwhile be dead, and his estate has been distributed,, the second mortgagee may (where there is no equity against him) require the distributees to refund {q) . The equity of redemption follows the limitations of the original estate. Regarding the proviso for redemption, where the mort- gage is by husband and wife of the wife's estate, — It is a principle of equity, that although the equity of redemp- tion should be reserved to the husband and his heirs, — or to the husband and wife and their heirs, — yet there shall be a resulting trust for the benefit of the wife and her heirs (r): But, of course, the wife may be estopped from claiming recoupment (s); and the intention to alter the previous title may appear on the language of the proviso itself, no express declaration to that effect being required {t). Also, there is, semble, no resulting equity to the wife, in the case of a mortgage of the wife's estate. (o) Waring v. Ward, 7 Ves. 332; Mills v. U. 0. Bank, 1911, I Ch. 669. Ip) Kinnairdv. Trollope. 39 Ch. Div. 636. (q) Worthington v. Abbott, 1909, W. N. 2 i8. (r) Huntingdon v. Huntingdon, 2 Bro. P. C. 1 ; Sail \. Sail, 1911, 1 Ch. 487. (s) Clinton v. Hooper, 1 Ves. 173. [t) Janes v. Sanies, 8 Ch. Div. 205. MORTGAGES. 293 whero the mortgage is effected under the provisions of e. 39 of the Conveyancing Act, 1881 (tt). Where the wife has a charge only on the land, and she Wife'8 (on a mortgage by the husband for a debt of the hus- rdease^c. — band's) joins with her husband in releasing that charge, is onlj' quoad. — although the release should be (in terms) absolute, yet it is not absolute, — but (in equity) is construed as being for the purposes only pf the mortgage (x). Also, where the wife's property is a leasehold property, and she assigns it to her husband absolutely, and he simultaneously mort- gages it, — In such a case, the wife's title to the property remains in her, — subject only to the mortgage (y). But the terms of the proviso for reconveyance must (sub- Provifio for ject only to that equity) be literally complied with in every ^e ^Sctly" reconveyance by the mortgagee, the danger of reconveying pursued, in any other way being serious (z) ; and, of course, it is by the proviso for redemption (and by that alone), that we ascertain whether there has yet been default by the mortgagor (a) . (m) Paget v. Faget, 1898, 1 Ch. 470. (a;) Lindo v. Lindo^ 1 Beav. 496. (g) Davis Y. Whitehead, 1894, 2 Ch. 133. (2) Magnus v. Queensland National Bank, 37 Ch. Div. 466. (a) Williams v. Morgan, 1906, 1 Ch. 804. 294 CHAPTEE XVII. OF EQUITABLE MORTGAGES OF EEALTY BY DEPOSIT OF TITLE-DEEDS. Deposit of title-deeds, agreement executed, — is a good equitable mortgage; and is not within the Statute of Frauds. If the title-deeds of an estate are deposited by a debtor with his creditor {a), or with some third person on behalf of the creditor (fe), such deposit (whether it be accom- panied with any written memorandum or not), amounts to (and is) a valid mortgage of the estate: That is to say, the deposit is evidence of an agreement for a mort- gage (c) ; and, the agreement being executed by the de- posit (and being no |longer executory), the creditor may sue thereon, — Scil., for the completion of his security by a legal conveyance from the debtor (<^)-. The equitable But no such mortgage could, formerly, have been ™o°od^oliylf effected with the wife of the borrower («),— although, an intention to semble, it may now be so effected (/) ; and, of course, mortgage. ^^ intention that the deposit shall operate as a mort- gage, must always be present, — ^for if the deposit be wholly alio intuitu^ it will not create any mortgage (^r) . Deposit of receipt for purchase- money, — effect of. There may be an equitable mortgage by deposit of the mere receipt for the purchase-money of an estate, — Scil., where the estate has not yet been conveyed to the purchaser, and the receipt specifically refers to the estate {h) ; and on the subsequent completion of the sale, the mortgagee may have tiie conveyance executed to himself. {a) Sussel t. Sussel, 1 Bro. C. C. 269. (i) Fx parte Coming, 9 Ves. 115. (c) JEx parte Wright, 19 Ves. 258. \d) Price v. Bury, 2 Drew. 42. («) Ex parte Coming, supra. if) In re Wallis, 1902, 1 K. B. 719. la-) In re Beetham, 18 Q. B. D. 766. (A) Ooodwin v. Waghorn, 4 L. J., N. S., Ch. 162. EQUITABLE MOETGAGES BY DEPOSIT. 295 When freehold land has been registered under the Land Certificate, or Transfer Acts, 1875, 1897, the land certificate is the proper afposiToi^'^ document to deposit («); and the office copy of a regis- case of regis- tered lease, and (for the purpose of any sub-mortgage) the certificate of charge, would (in like manner) be the proper document to deposit (k); and in the case of copy- hold land, the copy of the Court roll would be deposited (I) . But where the property is a church benefice, — and the incumbent is the registered proprietor of the benefioe, — ■ he is expressly disabled from effecting a mortgage by deposit (m), — either because a benefice is not, in general, a mortgageable property at all (n), — or for some other reason not exactly apparent (o) . A mortgagee by deposit .is entitled to the remedy of Equitable foreclosure (p) ; but he is also entitled to an order for mortgagee sale (g), — and that, whether there is or is not a written hfs remedy Ty memorandum accompanying the deposit (r) ; and, usually, foreclosure, a sale (and not a foreclosure) is the preferable remedy (s) : But an equitable mortgagee by deposit is not entitled (by virtue merely of his estate) to enter upon the lands, — nor (until there has been an order for sale) to sell them ; nor is he entitled to receive the rents and profits, — although, if the tenant chooses to pay him the accruing rents, he (the tenant) cannot recover back the rents so paid (t) . By the order for sale, the sale will, in general, be au- Saie,— thorised one month after the certificate showing the time for. amount of what is due (m) ; but a period of three months after certificate will occasionally be given. Also, after (J) SarroMv. Tlmty, IflOI, 2 Ch. 314. \K) Ex parte Moss, 3 De Gr. & Sm. 599; 60 & 61 Viot. o. 65, s. 8, snb-8. 6. (Z) Ex parte Warner, 19 Ves. 202. \m) 60 & 61 Viot. o.'65, s. 15 (ii). (») Supra, pp. 235, 236. (o) Eiwards-Moss v. Mnrjorihanhs, 7 H. L. Ca. 806. \p) Lees V. Fisher, 22 Oh. D. 283. (j) York Union Backing Co. v. Artley, 11 Oh. Div. 205. ()■) Harrold v. Flentu, s'ip'a. (») Neath v. Crealock, L. R. 10 Oh. App. 22. \t) Fi«ek V. Tranter, 1905, 1 K. B. 427. («) Wade V. Wilson, 22 Ch. Dir. 235. 296 THE ORIGINALLY EXCLUSIVE JURISDICTION. how obtained. Mortgage by deposit, — registration of," none in Middlesex. foreclosure absolute (whether in the case of a legal or in the case of an equitable mortgage), the mortgagee was not (formerly) entitled, in the same action, to recover the possession; but, now, under Order XVIII. Eule 2, in any action for foreclosure, the plaintiff may claim (and obtain) an order against the defendant for delivery of the possession {x) . As regards lands in Middlesex, an equitable mortgage by mere deposit need not be (and in fact cannot be) regis- tered in the Middlesex Registry; but as regards lands in Yorkshire, a mortgage by mere deposit can be (and must be) registered in the proper Yorkshire Registry (?/) . Deposit of deerJs covers further advances ; A mortgage by deposit will cover future advances, — Scil., if such was the agreement when the first advance was made, or if the subsequent advance was, in fact, made on an agreement (express or implied) that the deeds were to remain a security for it as well {z).. and carries interest, at 4 per cent., usually. Deposit of deeds for purpose of Ereparing a igal mort- gage. A mortgage by deposit carries interest at the rate of £4 per cent, {a), — failing any other agreed rate: And it is in fact, the settled rule of equity, to give interest at £4 per cent, on all equitable charges whatsoever, where the charge does not expressly provide a different rate, and although the charge should be altogether silent as to any interest whatever being payable (6). Where there has been a deposit of title-deeds for the purpose of preparing a legal mortgage, the balance of authority is in favour of the proposition, that such deposit, although for such specific purpose, constitutes (where the money has been actually advanced) a valid interim equitable mortgage, — that interim effect being not inconsistent with the expressed purpose of the deposit of the title-deeds (o), — Secus, if the money is not then {x) Thyme V. Sari, 1891, 2 Ch. 79. Ijl) KettUwell ^ . Watson, 26 Ch. D. 501. (z) James v. Rice, 5 De a. M. & G. 461. (a) Ee Kerr's Policy, L. R. 8 Eq. 331. (b) Savile v. Brax, 1903, 1 Ch. 781. (c) Edge v. Worthington, 1 Cox, 211. EQUITABLE MORTGAGES BY DEPOSIT. 297 actua,lly adva'nced (d) : But a mere verbal agreement to Parol agree- deposit the title-deeds does not (without an actual deposit) deposit deeds, constitute a good equitable mortgage, — although such a advSi°ced' mere agreement (if in -writing) would be good without an actual deposit. In order to create an equitable mortgage by deposit, it All title-deeds is not necessary that all the title-deeds (or even all the deposited. m,aterial title-deeds) should be deposited, — it being suffi- cient, if the deeds deposited are material to the title, and are proved to have been deposited with the intention of thereby creating a mortgage (e); but there is, of course, great danger in leaving any of the title-deeds outstanding in the mortgagor (/) . Also, an equitable mortgagee who Equitable parts with the title-deeds, and so enables the depositor to ™a°tin*^witii make another equitable mortgage, may be (and usually the title-deeds will be) postponed to such second equitable mortgagee, — *° mortgagor. Soil., Because he has so acted, as to conduce to a fraud being committed (ff) . But in the case of a prior equitable mort- gagee (equally as with a prior legal mortgagee), if it is sought to postpone him, some positive act on his part must be shown (A); and mere negligence will not do(i), — although long and inexcusable neglect may amount to a positive act within the meaning of the rule (fc) : And where A. B. had recently purchased certain lands in fee simple; and he deposited with U. all the title-deeds (except the purchase-deod), and afterwards deposited the purchase-deed with Z., — The Court said, that U. had priority, and that Z. must displace that priority (if he could (Z)). Also, an equitable mortgagee by deposit will, in the Equitabic general case, be entitled to priority over a subsequent legal ^f priiSty mortgagee who advances his money with notice (actual or to subsequent (d) Worris-v. Wilkinson, 12 Ves. 192. («) Laoon v. Allen, 3 Drew, 579 ; Moberta v. Croft, 2 De G-. & J. 1. (/) Colyer v. Finch, 5 H. L. Ca. 905. (g) Keats v. Phillips, 18 Ch. Div. 660. (A) Adsetts V. Hives, 33 Beav. 52. (i) PeatY. Clayton, 1906, 1 Ch. 659. {k) Farrand v. Yorkshire Bank, 40 Ch. Div. 182. ll) Roberts v. Croft, 24 Beav. 223. 298 THE ORIGINALLY EXCLUSIVE JURISDICTION. legal mort- constructive) of the deposit: Also, any one who purchases notice. from a mortgagee (selling under his power of sale), is deemed to have notice, — because he necessarily has notice, — of any " sub-mortgage by deposit " which the selling mort- gagee may have made. But mere incaution on the part of the subsequent legal mortgagee (or purchaser) will not postpone him to the prior equitable mortgage of which Legal mort- he has, in fact, no notice, — Because a legal mortgagee or poSp^oned to purchaser is not to be postponed, unless the so-called want prior equitable of caution on his part amounts to fraud, — or to gross mortgagee, i± ,. •i*f*i/\T-»i/-N -ii former haa negligence evidencing fraud {m) . But the (Jourt will not made botrnfide ][mpu(;Q ^y^j guclj gross negligence to the mortgagee, if he the deeds. has bona fide inquired for the deeds, and a reasonable excuse has been given for the non-delivery of them (ra), — but only if he makes no inquiry at all, or makes a mere vague (and purposeless) inquiry, which is, in fact, no inquiry (o) . Where a man's solicitor (being fraudulently disposed) sent the mortgagee a parcel of deeds, and represented that the parcel contained the deeds, when it contained, in fact, only some of the deeds, — That mortgagee was not postponed to a subsequent equitable mortgagee by deposit of the other deeds (p) . Also, where a prior legal mort- gagee left all the title-deeds with his mortgagor, — Whereby the mortgagor was left in a position to mortgage again (and, being fraudulently disposed, he did mortgage again) by purported first legal mortgage in fee simple, — The first legal mortgagee was not only postponed to that purported first legal mortgagee, but was postponed also to a further subsequent equitable mortgagee who had in consequence relied on the purported first mortgagee as being the only first mortgagee (g) . Equity against Where the contest is between two equities simply, the where'the ^''^t in time will (ordinarily) prevail, — and especially so, trustee is in where the legal estate is holden by a trustee for the equity (m) OHmr v. Sinton, 1899, 2 Ch. 264. (n) Hewitt T. Loosemore, 9 Hare, 458. (o) Oliver v. Sinton, sunra. (p) Hunt V. Elmers, 2 Dp G. F. & J. 578. (?) Clarke^. Palmer, 21 Ch. Div. 124. EQUITABLE MORTGAGES BY DEPOSIT. 299 which is first in date (r), — ^assuming always, of course, default (aa to that there has been no positive act on the part of the possessioD. of person entitled to the first equity to mislead the person deeds),— entitled to the second equity, and assuming also that the ^^^''^■ trustee on his part has not neglected his duty to get into his own possession in the first instance all the deeds relative to the constitution of his full legal title as trustee (s) . But where a first mortgagee, without any First mort- fraudulent intention, purposely left the title-deeds with gagee's agent^ the mortgagor, in order that he (the mortgagor) might exceedin^the make one specified mortgage only, or two mortgages of a 1"™*^ ofhis specified aggregate amount only, — and the mortgagor, in effect on first excess of his authority, made several mortgages (instead mortgagee's of only one mortgage (i)), or grossly exceeded the '^^"^'^ ^' specified aggregate amount (m), — The Court postponed the first mortgagee, — Scil., because he had made the mort- gagor his agent to borrow, and was left to his remedy against the agent. (r) Burgis v. Constantine, 1909, 2 K. B. 484. (s) Walker v. Linom, 1907, 2 Ch. 104. (<) Perry-Herrick v. Attuooii, 25 Beav. 205. («) Bncklesby t. Temperance Society, 1895, A. 0. 173. 300 CHAPTER XVIII. OF PLEDGES AND MORTGAGES OF CHATTELS. Differences between a and a pledge of chattels : Sect. I. Pledges and Mortgages, generally. Sect. II. Bills of Sale of Chattels, generally. Sect. III. Mortgages of British Vessels. A MORTGAGE of personal chattels is a transfer (subject to redemption) of the ownership of the chattels, the posses- sion remaining with the mortgagor; but a pledge of per- sonal chattels passes the immediate possession to the pledgee, together with only a special property in the chattels, — or with only a special ownership of them. (a) In their own nature. (b) As regards remedies : (aa) Pledgors and pledgees Sect. I. Pledges and Mortgages, generally. In the case of a pledge, although a time for the re- demption be fixed by the contract, yet the pledgor may redeem afterwards, — Scil., within a reasonable time; and if no time is fixed for the redemption, th© pledgor (unless he is sooner called upon by the pledgee) has his whole life to redeem, — and his personal representatives, in case of his death, may redeem (a) ; and his assignee may also redeem (b), — while and so long as the pledge still remains unsold hj the pledgee. The remedy of the pledgor is, in the general case, at law; and it is only when any special reason exists for his so doing, that he comes into equity (c) . Also, after a valid tender of the amount due, the pledgor may have detinue, ■ — differently from a mortgagor, who can only (in such a case) redeem {d), the tender staying, in his case, the (a) Kemp v. Westlrook, 1 Ves. Sr. 278. (b) Franklin v. Neate, 13 Mee. & W. 481. (c) JV.S. W. Sankv. O'Connor, 14 App. Ca. 273. (rf) Bourke v. Robinson, 1911, W. N. 36. OF PLEDGES AND MORTGAGES OF CHATTELS . 301 further running of the interest, and entitling him to have a re-conveyance (d) . As regards the pledgee, although he may (in a proper case) take proceedings in equity to sell the pledge (e), still he may (after the time for redemption has passed, and upon due notice given to the pledgor) sell the pledge with- out any necessity for first obtaining an order for sale (/) ; but the pledgee ought not to sell, without first demand- ing repayment of the money lent {g) . Where A. has obtained a judgment against B., andB.'is furniture is taken in execution on the judgment, — and (under the sale by the sheriS) is assigned to A.; and B.'s friends buy it back from A., and leave it in (or restore it to) the possession of B., — If B. should afterwards con- tinue in possession of the furniture for six years or more, and then die, his possession of the furniture has not been adverse; and the friends who purchased from A. (and not the executors of B.) will continue entitled to it(h). In the case of a mortgage (as distinguished from a. (bb) Mort- pledge) of personal chattels (equally as in the case of a mra^gagees. mortgage of land), there exists after default, — i.e., after the legal right of redemption is lost, — an equity of re- demption, which may be asserted by the mortgagor, if he brings his action to redeem within a reasonable time (i) . And, as regards the mortgagee, there is not (in the case of mortgages of personalty) any necessity, in general, to bring an action of foreclosure or for a sale, — the mort- gagee being entitled (on due notice) to sell the pro- perty (k) ; and the notice may (in a proper case) be given by advertisement. But when there are exceptional cir- cumstances, — as when (e.g.) the equitable mortgage is of shares, and the debt itself is barred by lapse of time, — {d) Rourke v. Robinson, 1911, W. N. 35. \e) Carter v. Wake, i Ch. Div. 6n5. (/) Jones Y. Marshall. 24 U. B. D. 269. Q) France v. Clark, 26 Ch. Div. 257. (A) HdKardsY. Clai/, 28 Beav. 145. (j) Kemp V. Westbrook, 1 Ves. Sr. 278. [k) Severges t. Sandeman, 1902, 1 Ch. 679. 302 THE OEIGINALLY EXCLUSIVE JURISDICTION. Eeversionary personal estate, succes- sively mort- gaged,— appli- cation of, when the reversion falls in, before the first mortgagee has sold. The mortg'agee is justified (in such a case) in coming into equity, for an order to enforce his security by foreclosure or sale (Z): Also, there is, apparently, no statute of limi- tations applicable to the action (m) . Where the personal property comprised in the mortg'age is a reversion, and the reversion falls into possession before the mortgagee has actually exercised his power of sale, — The trustees are not bound to, — nor ought they to, — pay over the entire reversion to the mortgagee (when it is, and usually it is, in excess of the amount due on the mort- gage) ; but the proper course is, for the trustees to pay to the mortgagee the amount only of his mortgage debt, retain- ing (and eventually paying over to the mortgagor, — or to and among the subsequent mortgagees (if any)), — the surplus (n) . Effect of transferring If the pledgee should, before condition broken, deliver over the pledge to a purchaser or to a sub-pledgee, — In such a case, if the pledge is of a negotiable instrument, the pledgor will be bound (o); but if the pledge is of a non-negotiable instrument, the pledgor will only be bound to the extent of the pledgee's men right, — Wherefore, in such latter case, if the purchaser or sub-pledgee (upon tender to him of the amount due to the original pledgee) should refuse to deliver up the pledge to the pledgor, the pledgor may have detinue against the purchaser or sub- pledgee (p). Pledgee, where tricked out of his possession, — effect, where a subsequent adverse pledge. Where the pledgee is tricked out of his possession of the pledge, and the pledgor thereafter pledges it to X., the title of X. (assuming that he is a bond fide pledgee) will be good; and (subject to X.'s title) the title of the former pledgee will remain good (or be set up again), as against the pledgor (g), — Sail., because the first (I) Lcmdnn and Midland Bank v. Milehell, 1899, 2 Ch. 161. (m) Melkrsh v. Brown, 45 Ch. D. 226. («) Bockey v. Western, 1898, 1 Ch. 350. (o) London Joint Slock Bank v. Simmons, 1892, A, C. 20], Ip) Nyherg v. Sai,delaar, 1892, 2 Q. B. 202. (}) Babcock v. Lawson, 6 Q. B. D. 284. OF PLEDGES AND MORTGAGES OF CHATTELS. 303 pledgee's possession is only momentarily divested by the trick (r) . Where a pledgee of securities {e.g. a, bank) has notice of Pledgee,— an act of bankruptcy, committed by the pledgor since ofl^irof"* making the pledge, and a tender of the amount due on the bankruptcy pledge is made to the pledgee after he has had such notice, effeottal"""'" — 'The pledgee is in a very awkward fix, — not knowing regards re- whether to deliver up the pledge or not; and, apparently, piedg^e.^° he is entitled to insist upon getting a valid receipt for the securities which he delivers up, — which receipt the pledgor cannot give (s) . As regards further advances, the presumption (as against The pledge the pledgor) is, that if the pledgee advance any further sum future ■of money to the pledgor, the pledge is to be held until the advances subsequent advance (as well as the original debt) is paid(<). Also, it occasionally happens, under (e.g.) the Application of "mutual credit" or "mutual dealings" clause, applic- x"''/^'"®^\^ ^' .able in the case of the mortgagor's bankruptcy (m), that te* another the mortgagee has the right to apply the surplus (after ^®^*- discharging his mortgage debt) in or towards satisfaction -of a subsequent judgment debt (a;), — or even of a sub- sequent simple contract debt (?/), — this right not being a right of tacking {z), — but of retention simply. By the provisions of the Factors Act, 1889 (52 & 53 raotorsand Vict. c. 45), — as aided by s. 25 of the Sale of Goods Act, -sales and ' 1893 (56 & 67 Vict. c. 71),— persons who are intrusted pMgesby. -with the possession of goods as factors for sale may (al- though they are not the owners of such goods) validly pledge them to hond fide lenders; and bmjers (with a view to sale in the ordinary course of trade) may also -validly pledge such goods, — although the original sellers (r) Mocatta v. Bell, 24 Beav. .585. [s) PonsfordY. Unif,n Bank, 1906, 2 Ch. 444, followed in McCarthy r. •Capital and Counties Bank, 1911, W. N. 177. (t) Be Mainhray v. Metcalfe, 2 Vern. 691. («) In re Mid-Kent Fruit Factory, 1896, 1 Ch. 567. {x) Spalding v. Thom-psi,rt, 26 Beav 637. (y) In re Haselfoot, L. R. 13 Eq. 327. i(a) C/irUtison v. Bolam, 36 Ch. Div. 223. 304 THE OEIGINALLY EXCLUSIVE JUEISDICTION . should be unpaid. But these provisions do not apply to the case of any mere private individual (miscalled a pur- chaser) buying any specific article for his own use under a hire and purchase agreement {a), — Scil., Because the Acts referred to have relation to dealings in the course of trade only, — that is to say, have relation only to persons who would (or might), ordinarily, employ "mercantile agents": And also because, in a hire and purchase agree- ment, there is really no real purchase, where the so-called purchaser has the option (and he, usually, has the option) of continuing the payment of his instalments (and so keeping the article), or of discontinuing the payment of his instal- ments (and in that case returning the article (6)). Stoppage in transitu^ — where a mort- gage mean- while created. Where goods are shipped by a vendor, and afterwards the vendor (on account of the bankruptcy of the purchaser) exercises his right of stoppage in transitu ; but a mort- gage or pledge of the goods has, in the meantime, been created, — by indorsement of the Bills of Lading by way of security for an advance to some hona fide mortgagee or pledgee, — In such a case, the mortgage or pledge will be good; and (subject thereto) the title of the unpaid vendor will remain good (c) : And the law would be the same, in the case of an interim hond fide sub-sale {d), or other bond fide sub-contract (e), — Scil., in the case of specific goods; but not also, — or, at least, not invariably so, — in the case of goods sold in bulk, and for successive partial deliveries against successive corresponding payments (/). Fraudulent purchase of goods. — disaffirmance of, by unpaid vendor, — legal position, where goods meanwhile pledged. On a sale of specific goods to a fraudulent purchaser, the property in the goods passes into the purchaser even before delivery; and if the goods have been delivered also, the vendor has no lien thereon for his unpaid pur- chase-money: But if the unpaid vendor, on discovery of the fraud, disaflirms the contract, — and can re-possess him- («) BelhyY. MaWtews, 1895, A. C. 471. (A) Leev. Butler, 1893, 2 Q. B. 318. (c) In re Westxmlhm, 6 B. & Ad. 817. id) In re Knight, 1-3 Ch. D 628. \e) Bdlamy v. I)m:ey, 1891, 3 Ch. 640. (/) Mordaimt Brothers v. British Oil Co. 8. 47 of Sale of Goods Act, 1893. 191 0, 2 K. B. 502 ; and see OF PLEDGES AND MORTGAGES OF CHATTELS. 305 self of the goods (as where they have been pledged by the fraudulent purchaser, and the vendor redeems the pledge), — Then, and in such a case (and even if the pur- chaser has meanwhile gone bankrupt), the property in the goods re-vests in the vendor; but if the price for the goods has been partly paid by the purchaser, the vendor must, of course, return the part-payment or part-pay- ments to the purchaser (or to his bankruptcy trustee), ex- cepting that he may set-off against that part-payment (or against those part-payments), the amount paid to redeem the pledge (g) . Sect. II. Bills of Sale of Chattels, generally. Special statutory provisions, — ^for the protection as well Mortgages of the creditors of the grantor as also (since 1882) of of personal the grantor himself, — have been made (by the Bills of being bills Sale Acts) regarding mortgages of personal chattels, of sale within where they are Bills of Sale,— the Bills of Sale Acts at saieActs"* present in force being the Acts of 1878 {h) and 1882 (i), 1878 and 'iS82. and the first of the two Acts (which is the principal Act) extending not only to bills of sale given by way of mort' gage, but also to bills of sale absolute (fc), — while the second Act extends exclusively to bills of sale given by way of mortgage (Z). But it is to be remembered, that neither Act extends to transfers in the ordinary course of business among merchants (w), — nor to the debentures of a company (w), which keeps its own register of mortgages (o), every mortgage by such a company now requiring only to be filed with the registrar of companies within twenty-one days from its date (p), and the time for registration being extendible (q) . (g) Tilley v. Botcman, Ltd., 1910, 1 K. B. 745, following In re Eastgate, 1905, 1 K. B. 465. (/i) 41 & 42 Viet. c. 31. (j) 45 & 46 Vict. c. 43. {ic) Axhtoii V. Blaekshaw, L. R. 9 Eq. 510. [l) Swift V. JPannell, 24 Ch. Div. 210. (m) Young V. Curtis, 1905, 2 K. B. 381, 772. (m) In re Standard Manufacturing Co., 1891, 1 Ch. 627. (o) 8 Edw. VII. c. 69, 8. 100. Ip) 8 Edw. VII. 0. 69, 8. 93. \q) In re Spiral Globe Co., 1902, 2 Oh. 209. S. X .306' THE ORIGINALLY EXCLUSIVE JURISDICTION. Requisite of Under the provisions of the Bills of Sale Acts, the bill registration. ^£ ^^^e (whether it be a security for money lent or not) must be registered within seven days of its execution, — and (with it) an af&davit (not to be sworn before the solicitor of the grantee (r)), — stating the execution of, and the true date of, the bill, the residence and occupation of the grantor, and also the residences and occupations of the attesting witnesses; and the execution of it by the grantor must be attested by a solicitor, — Scil., when the bill is by way of absolute gift or assignment (but not when it is by way of security) ; and the bill must be re-registered every five years. Sdiedule,— • Also, if the bill of sale is given by way of security, and when not. it must contain a schedule specifically enumerating the personal chattels comprised therein; and (in this case) the grantor must not convey as " beneficial otvner " (s), — nor may the document extend to include after-acquired chattels (i), — save chattels in substitution (m) : And the bill must also otherwise be in rigorous accordance with the form prescribed by the Act of 1882 (a;); and, in parti- cular, the consideration for which the bill is given must be truly stated therein, however difficult to state that consideration it may be (y) . But the repayment of the loan (principal and interest) may be lawfully provided for by instalments (z) . Non-eompii- Failing compliance with the above specified requisites, prescribed Or with any of them, the bill of sale will be void, — ^As form, effect of . against (1) other duly registered bills of sale; (2) the trustee in bankruptcy of the grantor; and (3) the execu- tion-creditors of the grantor, — and where it is by way of security it will (for such non-compliance) be void even as between the grantor and the grantee themselves (a), — ^and as regards even the covenant for the repayment of the (r) BaAer v. Ambrose, 1896, 2 Q. B. 372. , (s) Tn rt Barber, 17. Q. B. D. 259. (t) Thomas v. Kelly, 13 App. Ca 506. (m) Seedr. Bradley, 1894, 1 Q. B. 319. (x) Simmons v. Woodward, 1892, A. C. 100. \y) Barlow v. Bland, 1897, 1 Q. B. 125. («) Eoiefieldy. Provinoial Union Bank, 1910, 2 K. B. 781. (o) In re Burdett, 20 Q. B. D. 310. OF PLEDGES AND MORTGAGES OF CHATTELS. S07 money lent (6). However, any collateral security (which was otherwise good in itself) would not also be void (c), — nor any assurance of freehold lands (d), — nor any other distinctly severable operative part of the bill (e) . By the interpretation clause contained in the Act of Bills of Sale,— 1878, Bills of Sale extend to include (besides assignments ^hatare'n^t* properly so called) licences to take possession of personal chattels (/) : But a document, if it is to be a bill of sale, must be an " assuranoe" of some sort (g), — so that a mere receipt for the price of goods sold would not be a bill of sale of the goods referred to therein (Ji) : Also, the Act of Eealisation of 1882 expressly provides that the possession of the chattels security. (Scil., for the purpose of realising the security (i)) shall not be taken by the grantee, — unless for one or other of the defaults specified in s. 7 of that Act; nor are the personal chattels to be thereafter removed or sold until five clear days have expired, — the power of sale here referred to being the common law power of sale, — and not the power of sale given to mortgagees by the Conveyancing Act, 1881 (fc) . Moreover, the bill of sale (even when completely valid) is no protection of the goods comprised therein against the landlord's right of distress for rent in arrear, • — nor against certain other distresses, — for example, the summary distress for poor-rates (i): Also, as regards the trade goods of the grantor com- prised in the bill of sale, the security given by the bill of sale, although a perfectly valid bill of sale and duly registered, is not a protection against the trustee in bank- ruptcy of the grantor, while and so long as the possession (A) Davies v. Sees, 17 Q. B. D. 408 ; Smith v. Whiteman, 1909, 2 K. B. 437. \c) Monetary Advance Co. v. Cuter, 20 Q. B. D. 785. (d) Brooke v. Srooke, 1894, 2 Ch. 600. (e) In re Isaacson, 1895, 1 Q. B. 333, (/) lord's Trustee's case, 1909, A. C. 109. (^) Newlovev. Shrewshiry. 21 Q. B. D. 41. (h) Charlesu-orth v. Mills, 1892, A. C. 231. (i) Hx parte Wickens, 1898. 1 Q. B. 543. {Jc) Cahert v. Thomas, ^9 Q. B. D. 204. {Tj In re Marriage Neam J Co., 1896, 2 Ch. 693.- x2 MS THE ORIGINALLY EXCLUSIVE JURISDICTION. also of these goods has not be©n taken by the grantee (m), — which it can hardly ever be. Possession Generally, where the bill of sale is of such a character, dispenses with that possession can be (and actually is) taken thereunder, (registration, immediately on the execution thereof, — and is retained thereafter, — ^no^ registration of the bill is required at aU.(n): But the registration might sometimes, — for ex- ample, in the case of a post-nuptial marriage settlement, — be desirable (although unnecessary), — Scil., because, under s. 20 of the principal Act (the registration being once duly made and afterwards duly maintained), the personal chattels comprised in such a settlement are not in the "order and disposition " of the grantor within the mean- ing of the Bankruptcy Act, 1883, — always assuming that these personal chattels are not trade-goods. ^Vhat doou- Also, no registration is required of a wharfinger's war- iw re^ i^lre^"^* rant deposited by way of pledge, or of a delivery order tion,— asnot for goods at a warehouse. beiu^ bUls of And, as regards hiring agreements, firstly, if they are bond fide, they are not bills of sale at all (o) ; but, secondly, if they are only colourably hiring agreements, they must be registered (p) : That is to say: — Firstly, if there is first a real and genuine bond fide sale, and then the purchaser lets the goods on hire, the letting is good without registration (q) ; but. Secondly, if the pur- ported prior sale is not a real sale, — or the subsequent pur- ported letting on hire is in and by (or is evidenced by) the document itself by which the prior purported sale pur- ports to be effected, — in that case, the letting is not good without re-registration (r) . As regards building agreements, where there is (and usually there is) a clause inserted in the agreement, where- (m) In re Ginger, 1897, 2 Q. B. 461. (») Sopldns T. Gudgeon, 1906, 1 K. B. 690. \o) Orawour v. Salter, 18 Ch. Div. 30. (p) Mellor's Trustee v. Maas, 1905, A. C. 102. (q) Yorkshire Rail. Wagons y. Maclure, 21 Ch. D. 309. (r) Beckett v. Tower Assets Co., 1891, 1 Q. B. 638. OF PLEDGES AND MORTGAGES OF CHATTELS. 3095 hy the building materials become the property of the building owner, upon the building contractor's failure toi complete the contract, — That clause (or the agreement containing it) is not, in general, a biU of sale of the- materials, so as to require registration (s), — not even where (upon the words of the clause) the materials are- made to vest in the building owner immediately they are- brought on the ground (t). But the materials, so far as remaining unbuilt in, would be (or might be) within the order and disposition clause (s. 44) of the Bankruptcy- Act, 1883 (m). Sect. III. Mortgages of British Vessels. These mortgages are to be in the form prescribed in the Mortgages of Merchant Shipping Act, 1894 (x), s. 31,— and are to be =•"?=• registered by the Registrar of Shipping; and such regis- tration supersedes the necessity of any other registration. Also, successive registered mortgages rank (as between themselves) according to the dates of their respective re- gistrations, — and are not affected by the " order and dis- position " clause of the Bankruptcy Act, 1883, s. 44. These mortgages are also transferred in the prescribed manner — ^and are discharged (and the registration thereof vacated {y)) in the prescribed manner; and where the mortgagee's interest is transmitted by death, marriage, or the like, a declaration of such transmission (signed by the transmittee) is to be registered. The registered mortgagee has an absolute power of sale; Potrers of and he may also (at any time after default) take posses- re^tered sion of, and also use {z), the ship: But until the mortgagee takes possession, the mortgagor remains the owner (a),— and may therefore use the ship, — not impairing (or un- (s) Earfs case, 1903, 1 Ch. 690. {t) Reeves v. Barlow, 12 Q. B. D. 436. \u) In re WeibMng, 1902, 1 K. B. 713. \x) 57 & 58 Vict. c. 60. (y) Brandy. Bromnhall, 1906, 1 K. B. 571. {z) Be Mttttos V. Gibson, 1 Jo. & H. 79. (ffl) The Eeather Bell, 1901, P. 272. mortgagee. 310 THE ORIGINALLY EXCLUSIVE JURISDICTION. Unregistered mortgages, — validity of. Unregistered equities, — enforce- ment of. duly endangering) the security (6), — and will be entitled also to the freight, which may be earned before possession taken by the mortgagee (c), although not to the subse- quently earned freight: But the costs of all necessary repairs (for which, when executed abroad, the vessel is subject to a lien) take precedence of the mortgage (d). The mortgage of a ship, although it should be unregis- tered, will be good as between the mortgagor and the mortgagee; and, by s. 57 of the Act of 1894, re-enacting (in this particular) the like provision contained in the Merchant Shipping Act, 1862 (e), and displacing the old law to the contrary (/), — equities (if there are any) may be enforced against the mortgagees (and the owners) of tships, — just as against the mortgagees (and the owners) of other personal chattels (g) . (b) Law Guarantee v. Russian Bank, 1905, 1 K, B. 815. (c) Shillito V. Biggart. 1903, 1 K. B. 683. (i) The Orchis, 15 P. D. 38. [e) 25 & 26 Vict. o. 63. (/) Liverpool Bank v. Turner, 2 De G. P. & J. 502. (g) Wardv. Beck, 13 C. B. N. S. 668; The Venture, 1908, P. 218. 3U CHAPTER XIX. OF LIENS. There are liens at law, and liens in equity; and among Varieties of the many liens at law, may be instanced the lien which and'^ equity, exists (by the common law) in favour of artisans (as), manufacturers (b), and the like; and the lien which exists (by custom) in favour of innkeepers (c), packers (d), warehousemen (e), auctioneers (/), and the like; and the lien which exists (by usage) in favour of stockbrokers (g), and bankers {h) ; and the lien which exists (by statute) against a ship (and against the true owners and mort- gagees thereof), in respect of the expenses incurred for the ship's necessaries (i), and the like. And among the divers liens in equity, — and which are liens in equity only (fc), — the two principal ones are the vendor's lien for his purohase-money, and the vendee's lien for his deposit. There may also be concurrent liens, the one of them being paramount to the other, but each being consistent with the other (l). Also, there may be a particular lien on goods (which is confined to the particular charge), and a general lien on goods (which extends to the general balance due): And there may be also a lien on lands, — and the lien on lands differs from a lien on goods in («) Keene v. Thomas, 1906, 1 K. B. 136. (*) Bellamy v. Davey, 1891, 3 Ch. 540. (c) £oHns V. Gray. 1895, 2 Q. B. 501. {d) In re Witt, 2 Ch. Div. 489. («) Ex parte Deeze, 1 Atk. 228. (/) Webb V. Smith, 38 Ch. Div. 192. Iff) London and Globe case, 1902, 2 Ch. 416. {h) Brandao v. Barnett, 12 CI. & F. 787. (i) The Ripon City, 1897, P. 226. (k) Lord's Trustee's case, 1908, 2 K. B. 54. (I) The JEmilie Millon, 190S, 2 K. B. 817. 312 THE ORIGINALLY EXCLUSIVE JURISDICTION. this material particular, namely, that the lien on lands commences only when the possession of the lands is parted with to the purchaser, whereas the lien on goods lasts only while the possession is retained (w). And, lastly, there is the lien of a solicitor on the deeds and documents of his client (which arises propria vigore, but which at the most gives only a sort of passive redress) ; and the lien of a solicitor on a fund recovered (which arises, in general, only upon the Court's declaring the solicitor entitled to it, but which once it has arisen is an active remedy and redress) ; and it is these two liens which are now to be dealt with. The lien of a solicitor : (1) On deeds, books, &c. (2) On fund realised in suit. (2a) On costs recovered. Firstly, The Lien of a Solicitor on the Deeds, Books, and Papers of his Client. — This is a lien originating by custom, and afterwards sanctioned by the decisions of the Courts (both of law and of equity); and it depends not upon contract, — being merely an equitable right to negatively withhold from the client (until the bill of costs is paid) such things as have been intrusted to the solicitor as such, and on which he has bestowed his skill and labour. But, in order that this lien may arise, the deeds must have come into the solicitor's hands, in his character of solicitor, and not otherwise (re) ; and his lien on them is for his costs only, and not for any debts (o) . Secondly, The Solicitor's Lien upon a Fund. — This is a lien which existed (and exists) by the common law {p), but which has been recognised and enlarged {q) by the Solicitors Act, 1860 (23 & 24 Vict. c. 127), s. 28: By which Act, it has heen enacted, that it shall be lawful for the judge (r), — whether or not the judge before whom the suit or matter has been heard (s), — to declare (in his own discretion (i)), that the solicitor is entitled to a charge upon the property recovered or preserved in such suit or matter by his instrumentality. And the exe- (m) Grice v. Sichardson, 3 App. Ca. 319. (n) Ex parte duller, 16 Ch. D. 617. (o) In re Galland, 31 Ch. Div. 296. {p) Haymes v. Cooper, 33 Beav. 4.^1. (?) Curnock v. Sorrt, 1900, 2 Ch. 433. ()•) In re Grmidm, 1896, 1 Q. B. 417. (») In re Deakin, 1900, 2 Q. B. 489. {t) Harrison t. Harrison, 13 P. D. 180. OF LIENS. 313 cutor (w), or assignee (x), of the solicitor may also be declared entitled to this lien: And even where the soli- citor has been discharged by the client, he will be (or may be) entitled to the lien (y), — but subject to the like lien in the new solicitor, — the lien of the later solicitor always having precedence {z) . Also, the Court will, occa- sionally, declare this sort of lien, where it is the only available remedy, — as, for example, where the property recovered (being a legal remainder) cannot be otherwise got at by any execution (whether legal or equitable (a)), the lien arising by such declaration of the judge being always declared to be subject to (e.g.) the prior right (or equity) of the executor-trustee to his costs (&), or to other (if any) the prior subsisting equity (o). The word "property" in the statute includes " co«i5s ordered to be paid"; but where there is a counter-claim in the action, and the plaintiff succeeds on the claim and the defendant on the counter-claim, the balance only of such costs is deemed to have been "recovered" in the action (d) . The Court will not declare the solicitor entitled to this lien, where he has taken a specific mortgage for his costs of the suit or matter (e); but the solicitor may be en- titled (at one and the same time) both to his lien on the papers of his client and to his lien on the fund re- covered (/) . But he is not entitled to two charging orders in respect of the same costs (gf) . The mere fact of the client being an infant will not Lien on fund, prevent the lien from arising (^); and, in fact, the lien ^^*'™*°*- extends (usually) to the entire fund, and not merely to (m) Baile v. Baile, L. E. 13 Eq. 497. (x) Briscoe v. Briscoe, 1892, 3 Ch. 543. (2^) Rhodes v. Sugden, 34 Oh. D. 155. (z) Knight v. Gardner, 18B2, 2 Ch. 368. [a) Woods V. Sarrison, 1898, 1 Ch. 465. (4) In re Turner, 1907, 2 Ch. 126, 539. (c) The Paris, 1896, P. 77. (d) Westaeottv. Bcvan, 1891, 1 Q. B. 774. (e) In re Taylor Stileman 6f Co., 1891, 1 Ch. 590. (/) Pilcher v. Arden, 7 Ch. Div. 318. [g) In re CockerelVs Eitate, 1911, 2 Ch. 318. (A) Wright Y. Sanderson, 1901, 1 Ch. 319. THE OKIGINALLY- EXCLUSIVE JURISDICTION. the share of the solicitor's own particular client therein (i), — excepting that, where the lien purports to be a mere recognition of the lien which already exists by the com- mon law, then it will (usually) be limited to the share of the particular client in the fund (k) . The town agent of a country solicitor has a lien against the country solicitor (I), — who in his turn has a lien against the country client, — upon the fund recovered; and the town agent may exercise against the country client, • — to the extent of the country solicitor's lien against such client, hut not further (m), — his (the town agent's) own lien against the fund; but (save in that indirect way) the town agent of the solicitor is not entitled to any lien upon the fund (ra) . And here it should be mentioned, that the general lien of the town agent against the country solicitor extends to all costs whatsoever that are coming to the. country solicitor, — ^and covers, in fact, everything that is due from the country solicitor to the town agent(o), • — Scil., on the agency account between them (p). The lien arising by declaration is only for the costs of litigation properly so called, — and for the costs only of the particular litigation (q), — ^and therefore extends not to (e.g.) the costs of an arbitration, or to costs incurred altogether out of Court (although these latter may have been the means of forestalling any proceedings in Court (r)). There is no statute of limitations applicable against the solicitor's lien, — ^whether the lien be on papers (s) or on a fund recovered (t) : But, senible, the Court might, on the ground of delay, refuse to declare the charge (m) ; i) Sehohy v. J«cA, 1893, 1 Ch. 709. h) Curmck v. Born, 1900, 2 Ch. 433. l) Farewell v. Coker, 2 P. Wms. 459. 'm) Ex parte Edioards, 8 Q. B. D. 262. «) Maefarlane v. Lister, 37 Ch. Div. 388. o) In re Jones and Roberts, 1905, 2 Ch. 219. p) Lawrence v. Fletcher, 12 Ch. D. 858. q) Smith v. Betty, 1903, 2 K. B. 317. r) In re Lloyd- George, 1898, 1 Q. B. 520. s) Curwen v. Milburn, 42 Ch. D. 424. t) Siggins v. Scott, 2 B. & Ad. 415. u) Curnock v. Born, 1900, 2 Oh. 433. OF LIENS. • 315 and in every taxation, — even under the common order to tax {x), — the client may, now, freely allege the bar of time, — Scil., save as against the lien. The solicitor's lien on documents being only as betvsreen Lien on himself and his client, the solicitor cannot refuse to pro- commensurate duce the documents, on the lawful demand of a third with client's party, — Scil., in a case where the client himself would be ^e*'oft*^ bound to produce them {y), — as {e.g.) in an administra- deposit, tion action {z) . Also, where a solicitor expressly dis- charges himself (a), or impliedly discharges himself (&), from the further conduct of the action, he is required to give up all the papers in the action to the new solicitor, — but always without prejudice to the lien (c). The solicitor's lien on papers will not prejudice any Set-off, or prior existing equity {d), — or be prejudiced by an equity SitenrenSg^— arising subsequently (e). But, the solicitor's lien on a effect of. sum due or payable to his client having formerly pre- vented a set-off of such sum against a sum due from the client (/), it has now been expressly provided, that a set-off of damages or of costs between parties may be allowed, notwithstanding the lien{g). However, the set-off may be disallowed (h) ; and the solicitor's lien will not be pre- judiced by any such claim to a set-off, if the costs have been incurred (1) in different actions (i), — even although consolidated (k), — or have been incurred (2) in proceed- ings in different Divisions of the Court (l). A compromise of the action, if it has been fairly entered Compromises^ into, may have the effect of defeating the solicitor's usuaUy^defeat the lien. {x) Se Srookman, 1909, 2 Ch. 170. (y) Ackerman v. Lockhart, 1898, 2 Ch. 1. (z) Belaney v. Ffrench, L. E.. 8 Ch. App. 918. (a) Heshp v. Metcalfe, 3 My. & Cr. 183. (A) Griffiths v. Griffiths, 2 Ha. 587. (c) In re Boughton, 23 Ch. D. 329; and see In re Bee Estates, 1911, 2 Ch. 85. () Re Van Laim, 1907, 2 K. B. 23. 't) Lumlcy t. Brooks, 41 Ch. D. 323. m) In re Le Brasseur and Oakley, 1896, 2 Ch. 487. OF LIENS. 317 and subsists only where it is not inconsistent with (or supei-seded by) any specific security (x) or specific appro- priation (?/); Secondly, that the lien which arises, where (2) Vendor's a man agrees to sell an estate and to lend money to the advances for purchaser for improving' the estate, is for the advances so improvements. made (including the purchase-moneys remaining un- paid (2)); and Thirdly, that the lien which arises, where ^le^estsof there has been a breach of trust (alid some cestui que tryst cestuis que has been implicated therein), extends to the whole beneficial |or*/teir interest of the cestui que trust in the trust funds, — Sdl., breaches of so far as it is equitable, and not legal. ™^ ' If there are two joint- tenants of a lease, and one of (4) Joint- J ^ them renews the lease for the benefit of both, he will have for costs of re- a lien on the moiety of the other for a moiety of the uewing lease, renewal fine and expenses (a) . But where two or more purchase an estate, and one of them pays the whole pur- chase-money, and the estate is conveyed to them both, — The one who pays has neither a lien nor a mortgage, but only a right of action against the other, — Scil., in respect of the proportion of the other; but, upon a subse- q[uent partition of the purchased property, — and also upon a subsequent division of the sale-prooeeds thereof, where the property is sold by a mortgagee paramount of the entirety (b), — the debt of the purchaser (if he still re- mained un-reoouped the co-purchaser's proportion of the purchase-moneys) would be provided for. Also, where one of two joint -lessees (occupiers of a house) re- decorates it at his own expense, he has no lien in respect of his outlay (c) ; and in such a case, he may have no action even; but upon a subsequent partition of the pro- perty, compensation might be made him for what he had properly expended (d), — Scil., in respect of the increase in the selling value by reason of such expenditure. («) In re European Bank, L. E. 8 Ch. App. 41. iy) Bill V. Smith, 12 Mee. & W. 618. (z) Hx parte Linden, 1 Mont. D. & D. 435. (a) Ex parte Grace, 1 B. & P. 37B. h) LawUdge v. Tyndall, 1896, 1 Ch. 923. (e) Leigh v. DicJceson, 5 Q. B. D. 60. [d) In re Jones, 1893, 2 Oh. 461. 318 THE ORIGINALLY EXCLUSIVE JURISDICTION. (5) Lien of A limited company, by virtue of its articles of asso- ous?S.~ ciation, may be, — and usually is, — entitled to a lien on the sharee of its members, for any debt or liability of the member to the company; and where such a lien exists, its extent depends upon the relevant provisions conta-ined in the articles for the time being of the company (e) ; and the lien may extend to include the secret profits of a director of the company (/). («) Baily v. British £quitahk, 1906, A. C. 35. (/) Bodega Company ease, 1904, 1 Ch. 276. 319 CHAPTER XX. PENALTIES AND POEFEITUEES. Section I. Penalties, — Relief feom. The doctrine of equity, with regard to penalty-clauses in Penalty, instruments, is,- _ _ ^o'^anr"- Firstly, that wherever the clause is inserted merely to compensation secure the performance of some act (or the enjoyment of ^"'^^ some benefit), the performance of the act (or the enjoy- ment of the benefit) is the substantial intent of the instru- ment, and the penalty is only accessory (a) ; and Secondly, that, in the case of bonds to secure a mere debt (and in which the penal sum is usually double the debt), the obligee shall recover only his principal interest and costs, — and that he shall never recover more than the amount of the penalty : And, therefore, such a bond- creditor cannot issue a specially indorsed writ for the recovery of the penalty (b) ; and he must show some very special grounds for that, if he is ever to succeed in that: That is to say, — Firstly, if the penalty is to secure the mere payment of money, Courts of Equity will, — and (since the 4 & 5 Anne c. 16, s. 12) Courts of law also will, —relieve upon payment of principal and interest (c) ; and, Secondly, if the penalty is to secure the performance of some act, the Court will (in case of non-performance of the act) ascertain (if possible) the amount of the damages, and will relieve on payment of that amount only; but, Thirdly, as was observed by Lord St. Leonards (c?), — Party cannot («) Sloman v. Walter, 1 Bro. C. C. 418. (J) Tuther y.-Caralampi, 21 Q. B. D. 414. (e) Elliott y. Turner, 13 Sim. 477; Hatton v. Sarris, 1892, A. C. 547. [d) French v. Macule, 2 Drew. & War. 274. 320 THE ORIGINALLY EXCLUSIVE JURISDICTION. contract by "If a thing is agreed to be done (though there be a P^y^stlie penalty annexed to its non -performance), the very thing itself rmigt be done," — wherefore a judgment obtained on the bond would stand as a security only for the due per- formance of the act (e) . The performance of the act will, also, in the general case, be enforced by injunction (/); and, occasionally, you may have your choice between the injunction and the penalty (or damages (^)); but (far more usually) you have your injunction for the future, and damages for the past (h) . Wheie cove- Where the contract is alternative, and the real intent is, do'either o? ^^^^ ^he party bound thereby shall have either of the two two things, alternatives to choose between, and that if he elect to adopt forrae alter-'' the one, he shall pay a certain sum of money, and if he native than the elect to adopt the other, an additional sum of money, — In is not a case such a case, equity will look upon the additional pay- of penalty. ment as a sum agreed upon, and not as a penalty: For example, if a man lets meadow-land for two guineas an acre; and the contract is, that if the tenant employs the land in tillage, he shall pay an additional rent of two guineas an acre, — There the breaking-up of the meadow- land is an act permitted by the contract (^), — a diSerent contract altogether from an agreement not to do a thing (with a penalty for doing it(/c)): But, even in the case of such tillage-contracts, the intention may be to prohibit the act, — In which latter case, the remedy by injunction would be available, save so far as it has now been excluded by the provisions of the Agricultural Holdings Act, 1908 (I); and if the plaintiff was too late to get his in- junction, the damage sustained would be recoverable. Also, the option may not be with the wrongdoer at all. (e) Moorecroft v. Dowding, 2 P. Wms. 313. (/) Jtt.-Gen. V. Ashborne Recreation, 1903, 1 Ch. 101. {g) General Accidents v. Noel, 1902, 1 K. B. 377. {h) SoU V. Chard Union, 1894, 1 Ch. 293. (i) G. N. Sail. Co. v. TFinder, 1892, 2 Q. B. 595. (A) Wilkon V. Love, 1896, 1 Q. B. 626. {l) 8 Edw. VII. 0. 28, ss. 25, 26. PENALTIES AND FORFEITURES. 321 but may be with the party injured, — to have the injunc- tion or else the damages at his option (m) . It is neoessary in all cases, therefore, to distinguish Kuiesasto between a penalty and what is not a penalty; and the tetween°a following rules have (for this purpose) been laid down: — penalty and (1) Where the payment of a smaller sum is secured d^ges!^ by a larger, the larger sum is a penalty (re); (2) Where the agreement stipulates for the perform- ance of several acts, and one and the same sum is ex- pressed to be payable for the breach of all or any of the stipulations, — That sum is, — in general (o), but not in- variably (p), — a penalty; (3) where the payment stipulated for is exactly pro- portioned to the particular breach (g), — and especially if it is expressed in the contract, that the payment is to bear INTEREST from the date of the breach, — In such a case, the payment will not be a penalty at all (r); (3a) Where there was a lease of coal and iron, and the lessees had the liberty of placing slag from their blast- furnaces on the land demised; and they covenanted to pay to the lessor £100 per acre for all land not restored to its original agricultural condition at a particular date, — The £100 per acre was recoverable in full (s); (4) If there is only one event on which the money is to become payable, and there is no means of ascertaining the damage resulting to the plaintiff from the breach, the specified sum is, in fact, the agreed amount of the compensation in order to avoid the difficulty (t), — Be- cause, generally, where the damages from the breach cannot be measured, the contract must be taken to mean, that the sum agreed on was to be liquidated damages, and not a penalty (m) ; Also (5) The mere use of the term " penalty " or " liquidated damages " is not conclusive of the matter (cc); (m) Weston v. Metrop. Asylums, 9 Q. B. D. 404. {n) Protector Endowment Co. t. Qrice, 5 Q. B. D. 392. (o) Kemblev. Farren, 6 Bin^. 141. Ip) Pye's case, 1906, 1 K. B. 425. [q) Elphinstone v. MonJcland Iron and Coal Co., 11 App. Ca. 332. (r) Chjdehank case, 190.5, A. C. 6. («) Elphinstone v. Monkland Iron and Coal Co., supra. {t) Sainter v. Ferguson, 7 C. B. 730. («) Wallis V. Smith, 21 Oh. Div. 243. \x) Kemhle v. Farren, supra. S. Y 322 THE ORIGINALLY EXCLUSIVE JUEISDICTION . Penalties are odious ill law, — example of this. and a sum, although called a "penalty," may be "liqui- dated damages " {y); and in ease of ambiguity, the Court leans in favour of the construction which treats the sum as a penalty, — Scil., in order to relieve against it. Where there is a building contract with a penalty, — and (by the terms of the contract) £x per day is made payable by A. to B. (by way of penalty), in case of A.'s default to complete the buildings within the time appointed by the contract, — The penalty will not be re- coverable at all by B., if the default of A. is really attri- butable to B.'s own act (z), — Soil., because penalties are odious in law (a) . Penalty,— Where there was a mortgage, with a bond collateral when the^ci^ thereto, — and the amount of the mortgage debt (together cnmstaiices are with the arrears of the interest due thereon) exceeded the exceptiona . penalty of the bond, the whole amount was recoverable, — Soil., on the mortgage (b); and where a sum of £4,800 was due from A. to B., and B. agreed to take £2,400 in discharge, — on obtaining proper security for that, — but with a proviso that the whole original £4,800 should again become and be payable, in case of default in pay- ment of the £2,400,— The £4,800 was held not to be a penalty, or relievable as such (c) . Forfeitures governed by same prin- ciples as penalties, — in general. Forfeiture for non-payment of rent. Section II. Forfeitures, — Eelief from. The principles which govern the Court in relieving against penalties apply also, generally, to the relief against forfeitures, — other than forfeitures arising under wills and settlements (d), and other than forfeitures aris- ing under leases and other strict contracts (e). But, even in the case of leases, equity would have interfered (to a limited extent) to relieve against a forfeiture, — Por ex- (j/) Diestalv. Stevenson, 1906, 2 K. B. 345. (z) Solrne V. Guppy, 3 Mee. & W. 387. («) ComynsDig., Condition L. (6). \b) Clarke v. Lord Abingdon, 17 Ves. 106. (c) Thompson v. Hudson, L. R. 4 H. L. 1. {d} Samuel v. Samuel, 12 Ch. Div. 162 ; Otway v. Otwau, 1895 2 Ch 235. (e) Warner v. Moir, 25 Ch. Div. 605. PENALTIES AND FORFEITURES . 323 ample, a forfeiture for non-payment of rent (on the lessee paying the rent (/)), — Soil., because the rent in arrear was a mere money demand, the purpose of the clause of re-entry for the non-payment of it being only, — in the general case (g), but not invariably (h), — to secure the payment («); and the Courts of law also were (after a •time) enabled (by the Common Law Procedure Acts, 1852 (it), and 1860 (l)), to relieve in such a case (m). But as regards the other provisions and covenants Forfeiture oontained in leases, it was not quite settled, whether govenant'to* equity could (but the better opinion was, that equity repair, or for could not) have relieved against a forfeiture arising from coveuantto (e.g.) a breach of the covenant to repair (n), — although insure, equity would have required the covenantee to be satisfied with a substantial performance of the covenant(o): And, of course, the covenantee was required, in all cases, to prove the breach of covenant (p), — and to prove it by his own evidence {q) : And it was perfectly well settled, that equity would not (nor could) relieve against a forfeiture for breach of the covenant to insure (r) . By the Conveyancing Act, 1881 (44 & 45 Vict. c. 41), Relief under s. 14 (as between lessor and lessee, or under-lessor and theConvey- under-lessee (s)), — and by the Conveyancing Act, 1892 i88rMid*']892. (55 & 56 Vict. c. 13), s. 2 (as between lessor and under- lessee), — The High Court, in each Division thereof, is now enabled to give relief, — upon equitable terms (to be pre- scribed by the Court), and upon paying to the lessor the costs and expenses (if any) incurred by the latter of and incidental to the breach of covenant, — ^against every for- (/) Preem. Oh. Rep. 114; BoieserY. Colby, 1 Hare, 126. Ig) Wadirian v. CiiUiaft, 10 Ves. 67. (A) Galbraith v. Poyrdnn, 1905, 2 K. B. 258. (i) Wadman v. Cnlcraft^ supra. \K) 15 & 16 Vict. c. 76, s. 212. \l) 23 & 24 Vict. 0. 126, a. 1. (jb) Howard v. Fanshawe, 1895, 2 Ch. 581. (n) Hdl T. Barclay, 18 Ves. 62. (o) Hill T. Barclay, supra ; Gregory v. Wilson, 9 Hare, 683. (p) Croft V. Liimley, 6 H. L. Ca. 672 ; Rush v. Lucas, 1910, 1 Ch. 437. (q) Doe d. Bridges v. Whitehead, 8 A. & E. 571. (r) Green v. Bridges, 4 Sim. 96. .(«) Fletchers. Nohes, 1897, 1 Ch. 271. y2 324 THE ORIGINALLY EXCLUSIVE JUEISDICTION . feitur© for breach of any covenant whatsoever {t), con- tained in the lease or under-lease or fee-farm grant, — or agreement for a, lease or under-lease, — other than and except only the following covenants and conditions, that is to say: — (1) The covenant not to assign or underlet (m); (2) The condition of forfeiture upon a bankruptcy, liquidation, or execution; and (3) The covenant in a mining lease for permitting inspection, &c., by the lessor; and, of course, (4) The covenant to pay rent (the relief against that having needed no express provision). The forfeiture on a bankruptcy (liquidation or execu- tion) may now be relieved against — in certain cases, and under certain restrictions (x), — Scil., if the lease should be sold within a year. Also, in favour of an innocent and blameless under-lessee (as distinguished from the lessor himself) the forfeiture resulting from a breach of the covenant not to underlet, may be (in effect) relieved against: Secus, if the under-lessee is not entirely blame- less (?/). The relief provided by the Conveyancing Acts, 1881, 1892, is obtainable either in an action or on a counter- claim (z), — but is not obtainable, — as of right (a), but only by way of indulgence (6), — after actual entry by the lessor for the forfeiture: In which latter respect (as well as in the nature of the breach of covenant which is relieved against), the relief under these Acts differs from the relief obtainable under the Common Law Procedure Acts, — this latter relief being obtainable, as of right, even after actual entry by the lessor (c), — or after an eject- ment commenced (d) . [t) Gray v. Sonsall, 1904, 1 K. B. 601. (m) Barrow v. Isaacs, 1891, 1 Q. B. 417. {x) 55 & 66 Viot. 0. 13. (2/) Imray v. Oakshette, 1897, 2 Q. B. 218 ; Matthews v. flmallwood, 1910, W. N". 69. (z) Roger Cholmeley's School y. Sewell, 1893, 2 Q. B. 254. (a) Sogers v. Rice, 1892, 2 Ch. 170. (S) Sendy v. Evans, 1909, 2 K. B. 894. Ic) Sowardv. Fanshawe, 1896, 2 Ch. 581. (d) Moore v. Sinee, 1907, 2 K. B. 8. PENALTIES AND FORFEITURES. 325 Where the lease or tenancy-agreement contains an Lessee beoom- option of purchase in the lessee, and the option is exer- ^fore'eiitry'^' cised by the lessee (or by his legal assignee) before the for forfeiture, 1 J i. • /J! J ^ I. • i. —effect of. lessor proceeds to exercise (for due cause) his power to forfeit the leasehold interest, — The position of the lessee (or of his assignee) is transmuted into that of purchaser, and is no longer liable to the forfeiture to which he was liable while lessee (e). And where there is a building Builder en- agreement, and the building lessee is entitled to have p*ecei^al^^° leases (piecemeal) as the buildings are completed, — The effect. right to any lease (if it have meanwhile completely arisen) will not be forfeitable, even when the building agreement itself has since become forfeitable (/) . In the case of the other strict contracts above referred lucidents of to, — Firstly, in the case of vs^ills. Equity was (compara- feiture's in tively) powerless (and also indisposed) to relieve, — ScU., respect of, because the beneficiaries entitled under the will were (all only in ex- of them) volunteers, and no one of them (more than any ceptionai other of them) entitled to be treated with any exceptional ''^^^' favour, — more especially as against the next of kin; But still, even in the case of wills, equity required (e.g.), that the ground for an alleged forfeiture should, — afi regards the real and true substance of the thing, — be proved (g) ; and, Secondly, as regards forfeitures which were incident to tenures, — equity would (but under special circumstances only) have granted relief against the forfeiture: For example, in Peachy v. Somerset (Duke) (h), where the owner of certain copyhold lands made a lease of the lands for seven years, without first obtaining the licence of the lord of the manor to make the lease, — and a forfeiture was incurred thereby, — The jurisdiction to relieve against the forfeiture was acknow- ledged: Also, in Andrews v. Hulse(i), — the jurisdiction was unequivocally asserted: But the relief will not ordi- narily be granted in such cases; and it has, in fact, been sometimes stated generally, — but too generally, — that the Court cannot (nor will) relieve against any forfeiture (e) Bafety v. Schqfield, 1897, 1 Ch. 957. (/) Lowther y. Heaver, 41 Ch. D. 248. (y) Samuel T. Samuel, 12 Ch. D. 152. (/() 1 Str. 447. (t) 4 K. & J. 392. 326 THE ORIGINALLY EXCLUSIVE JURISDICTION. Forfeiture, — occasionally treated as a penalty, and relieved as Biich. that is an "incident of tenure:" That is to say, if the forfeiture is the only relief, — or the only appropriate relief, — available to the lord of the manor (/<;), and to give him damages merely would not suffice {I), — The Court will not relieve the copyholder: And, in Cox v. Higford (m), where the plaintiff (a copyholder) sued for relief against the forfeiture of his tenement, — the for- feiture in that case having been on account of waste com- mitted (or permitted) by the plaintiff; and it appeared,, that the plaintiff had neglected (for about thirty years altogether) to repair his tenement, although he had been repeatedly required by the lord to repair it, — The Court refused the relief, — Soil., because of the wilful obstinacy of the plaintiff, and because (as appears from the report) the lord had already recovered the premises in ejectment,, and had since then been (for about nine years) in the- possession of the tenement by his occupying tenant. Occasionally, — and especially in favour of a public- body, — the Court will treat the forfeiture clause in a lease (or fee simple purchase) as a penal clause, — in order to relieve against the forfeiture (w) ; but a lease which has been made under the provisions of some statute, and which (by tlie terms of the statute) is expressly ended in a certain event, cannot b© so treated (o) . {/c) Galbraith v. Poynton, 1905, 2 K. B. 258. \l) Blackmore v. White, 1899, 1 Q. B. 293. (m) 2 Vern. 664. (n) Sagenham Docks ease, L. R. 8 Ch. App. 1022. (o) Carrick v. Miller, L. K. 1 H. L. So. 356. 327 CHAPTEE XXI. MARRIED WOMEN. Sect. I. Sepaeate Estate. Sub-sect. 1, — Apart from Legis- lation. Sub-sect. 2. The Effects of Legis- lation. — Sect. 11. Pin Monet and Paea- Seot. III. Equity to a Settle- MbNT, AND E.IGHT OF SUEVIVOE- SHIP. Sect. IV. Settlements in DEEOaATION OF MaEITAI. PHEBNAXIA. KlUHTS. By the common law, a husband on marrying became Bights of entitled,— husband, by TTji A 11. .ni-nvT-i m the common Jb irstiy, As regards his wiie s Real Estate, — To the law. rents and profits thereof during the joint lives {i.e., during the coverture), — and (in general) to an estate for his life by the curtesy thereafter: And, Secondly, As regards her personal estate, — The wife's chattels personal in possession passed to the hus- band absolutely; and her choses in action passed to the husband absolutely, subject only to his reducing them into possession during the coverture, — or, if he did not hut survived her, he {a), — and (after his death) his administrator (&), — was entitled, on taking out adminis- tration to the wife, to recover these choses in action; and her chattels real {i.e., her leas3holds) passed into the husband jure mariti, — with full power to aliene them {inter vivos) for the whole term of the lease; and that was so, even when the leaseholds were reversionary (c), — provided only the reversion was capable of falling into possession during the coverture {d) . On the other hand, if the wife survived the husband, then (firstly) all her choses in action which he had not la) Smart v. Tranter, 43 Oh. Div. 587. (ij Fleet v. Perrins, L. R. 3 Q. B. 536. (c) In re Bellamy, 25 Ch. D. 620. ((?) Daberley v. Day, 1 6 Beav. 33. 328 THE ORIGINALLY EXCLUSIVE JXIRISDICTION . Interference of equity. reduced into possession, and also (secondly) all her lease- holds which he had not aliened inter vivos absolutely for the whole term of the lease, survived to the wife; and if the husband's alienation of the leaseholds had been of part only, the residue of the leaseholds survived to the wife; and if his alienation of the leaseholds had been by way of mortgage only, then the leaseholds survived wholly to the wife, — but subject to the mortgage (being an alienatio rei, and not a mere "charge" (e)). The husband acquired these extensive interests in the property of his wife, in consideration of the obligation which (upon the marriage) he contracted of maintaining her; but the law gave the wife no remedy whatever, in case of his neglecting that obligation, — and it was chiefly for that reason, that equity raised up (with reference to married women) the new law of the "separate estate" of the wife. And so beneficial was this new law found (by experience) to be, that it at length received legislative sanction in the Married Women's Property Act, 1870, amended by the Married Women's Property Act, 1874,^ — Both which Acts were afterwards consolidated and amended by the Married Women's Property Act, 1882; and the last - mentioned Act has itself been recently amended by the Married Women's Property Acts, 1893 and 1907, — the provisions of all which successive Acts are hereinafter more particularly stated. Section I. The Wife's Separate Estate. Sub-sect. 1. — Apart from Legislation. Feme covert At common law, the existence of the wife, as a legal common*law entity (or persona) separate and distinct from her hus- hoid property band, was not recognised (she being considered merged in CbtldT''"' her husband (/)): But, in equity, the case was different,— but she might a married woman being there considered capable of hold- do BO in equity. (e) Co. Litt. 185b ; Lord Alergavenni/s case, 6 Rep. 78b ; ChaUis (2nd ed.), 335, n. (/) Murray v. BarUe, 3 My. & K. 220. MARRIED WOMEN. 329 ing property, independently of her husband, for her own separate use ; and once having been permitted to hold pro- perty to her separate use, she held it with all the incidents of property, — including the jus disponendi (that is, the right of alienation (gr)), and the jus defendendi (that is, the right of pleading [e-g-~] the Statutes of Limitation in defence of her separate estate (h)). The separate estate may be variously created: — Separate ^ -J -J estate, how (1) By ante-nuptial agreement with the intended bus- created, band, — such agreement being made with reference either to the wife's own property, or with reference to the pro- perty of her husband, or of third parties; (2) By post-nuptial agreement, — express (i) or im- plied (fc), — with her husband; (3) By vii'tue of a separation deed; but this species of separate estate oomes to an end, in general, with the resumption of the cohabitation (l), — unless the separation deed (being in the nature of a settlement) expressly other- wise provides (m) ; (4) Under a private Act of Parliament, operating as a settlement; (5) By gifts from the husband to his wife, — being gifts made to her absolutely (w), and not merely to be worn by her for his gratification (o); also, gifts from a stranger (by delivery to the wife(pi)); (6) By the wife trading separately {q); and (7) By express limitation (by "deed or will) to her for her separate use, — this latter having been the most fre- quent source of the separate estate, — Scil., prior to the Married Women's Property Acts above referred to. (ff) Fettiplaee v. Gorges, 1 Ves. Jr. 48. (A) Malktt V. Bastings, 35 Ch. D. 94. (i) Pye V. Pye, 13 Q. B. D. 147. \k) Slanning v. Style, 3 P. "Wms. 334 (the wife's " butter-money "). (I) Mcolv. Nicol, 31 Ch. Div. 524. (m) Spark v. Massey, 1904, 1 Ch. 451. (n) Tosher v. Tasker, 1895, P. 1. (o) Baddeley v. Baddelm/, 9 Ch. Diy. 113 ; and disting. Masson v. 3e Fries, 1909, 2 K. B. 831. (p) Graham v. Londonderry, 3 Atk. 393. \q) Ex parte Shepherd, 10 Ch. Div. 573. 330 THE ORIGINALLY EXCLUSIVE JURISDICTION. Interposition of trustees not necessary, — since (failing any other trustee) the husband is trustee for the wife. It was at one time supposed, that the interposition of trustees was indispensable for the protection of the wife's interests; but it was afterwards established, that the inter- vention of trustees was not indispensable; land the husband (as having the legal estate) was held to be a trustee for his wife(?-). And, now, under the Married Women's Property Act, 1882, the intervention of a trustee is in no case necessary (s), — nor is a trustee now necessary in a separation deed even(;t). What words held sufficient to create the separate iise. What words held not suffi- cient for that purpose. ..No particular form of words was (or is) necessary, in order to create the separate use, — so that a gift to the wife "for her own use, and at her disposal" (m), or "for her own use, independent of her husband " '(«), or "so as that she shall receive and enjoy the issues and pro- fits " {y), — will suffice: On the other hand, no separate use would be created, where there was {e.g.) a mere direction " to pay to a married woman or her assigns " (2) ; or where there was a gift " to her own use and benefit," or to her "absolute use" {a); or where the payment directed to be made was " into her own proper hands, to and for ber own use and benefit " (6), — 8cil., because none of these expressions excluded the common law rights of the husband. The wife's power of dis- position over separate (a) As to per- sonalty. According to the decision in Peacock v. Monk {c), a married woman, acting in respect of her separate pro- perty, acts as if she were a feme sole : Therefore, all per- sonal property settled upon her for her separate use may be alienated by her without her husband's consent, — and either by act inter vivos, or by her will, — ^and whether the interest is in reversion or is in possession {d) : But, (r) Wassellv. LeggaU, 1S96, 1 Oh. 554. (s) Cum V. Mansfield, 43 Ch. D. 12. it) Sweet V. Sweet, 1895, 1 Q. B. 12. (n.) Inglefield v. Cogklan, 2 Coll. 247. (x) WagstafTi. Smith, 9 Ves. 520. (y) Tyrrell v. Hope, 2 Atk. 858. (z) Lumb V. Milnes, 5 Ves. 517. («) Jix parte Abbot, 1 Deacon, 338. (*) Tyler v. lake, 2 Euss. & My. 183. (c) 2 Ves. Sr. 190. (d) Sturyis v. Oorp, 13 Ves. 190. MAEElED WOMEN. 331 as regards her real estate, settled to her separate use, — (b) As to This distinction used to b& taken, namely, that her life ^^^^'•J- interest she oould dispose of (e); but her fee simple (/), — and a fortiori her fee tail, — she could not dispose of, save (possibly) to the extent of the equitable interest therein: However, that sort of distinction, semble, is now (for all practical purposes) at an end, — save (possibly) as regards estates in tail: But a married woman may not (even yet) dispose of her life-estate under a separation deed (g), — nor of her alimony (h), or the like (i). Upon the question, whether the wife's disposition by Husband's deed or by will of her fee simple estates, deprives the estate bythe husband (surviving her) of his curtesy estate, — assuming question as to; that he would otherwise be entitled thereto, — the rule of the Court (which at first wavered) is now fully settled as follows, namely, — That although, in the absence of (or subject to) any such disposition by the wife, the husband is entitled to his curtesy, even out of statutory separate property (k), — yet, in case the wife disposes of the whole estate by deed inter vivos, or even by her will, the husband is (by such disposition) wholly barred and excluded from his estate by the curtesy (Z). And, as regards the hus- and as to his band's rights in the copyhold estates of his wife, — although interests in such rights (as existing by the particular customs of the holds! °^^ manor) may extend {e.g., in the manor of Taunton Dean) beyond a mere curtesy estate, — These rights are now, semble, wholly barred by the disposition of the wife. If a married woman effect any savings out of the pro- The savings perty which is settled to her separate use, she has the separate same power over the savings that she has over the separate estate are .,n-r-i -fi-ni 1 *"° Separate estate itseli, — ior if the wife has a power over the estate. capital, she has also a power over the income and accumu- lations (m) ; and the like rule applies also to savings out («) Stead V. Kelion, 2 Beav. 245. (/•) Taylor v. Meads, 34 L. J. Ch. 203. Q) Hyde v. Price, 3 Ves. 437. (A) In re Robinson. 27 Ch. D. 160. (j) Walkins v. Watkins, 1896, P. 222. {k) Hope V. Snpe, 1892, 2 Ch. 336. (I) Cooper V. M'Donald, 7 Ch. Div. 288. (m) Newlands v. Paynter, 4 My. & Or. 408. 332 THE OSIGINALLY EXCLUSIVE JURISDICTION. Wife may permit her husband to receive the income of her separate estate : and will be entitled to only one year's account, if to any account at all. of the income allowed to the wife under a separation deed (n), or upon her husband's lunacy (o). And the in- vestments also made with such savings (or with the accu- mulations thereof) belong to the married woman for her separate use (p), — a result which used not (formerly) to hold good for the investments of her capital moneys (q) . The wife may, of course, give her separate income to her husband (or permit him to receive it); and if the husband and wife are living together,' and have for a long time so dealt with the separate income of the wife as to show that they must have agreed to the husband receiving it, — That is evidence of a gift by her to him of the separate income (r) . And even where she is entitled to an account against him of his receipts of her separate income, the general rule is, that he shall be obliged to account for one year's receipts only (s) ; and, of course, if she have made a gift of her separate income to him, she is not entitled to any account whatever of it (t) : But the onus of proving such a gift is on the husband (u), — and the onus is diffi- cult to satisfy (v), — and more especially so, where the alleged gift is of the corpus or capital (a;) . Husband, on If a feme covert, having personal estate settled to her takes separate Separate usc, dies without disposing of it, the husband is personal estate entitled to it, for his own benefit, but subject to the wife's debts (y); and all those parts of it which consist of cash furniture or other personal chattels in possession (or of chattels real (2)), he takes in his marital right (a); and all those parts of it which consist of " choses in action," («) Crouch T. Waller, 4 De G. & J. 802. (0) He Tharp, 3 Prob. Div. 76. \p) Barrack v. M'Culloch, 3 K. & J. 110. (q) Wright v. Wright, 2 J. & H. 647. (r) Dixon v. Dixon, 9 Ch. Div. 587. (s) Darkin v. Darkin, 17 Beav. 578. (t) Rich v. Cockell, 9 Ves. 369 ; Edwards v. Oheyne, 13 App. Ca. 385. (t() Wood V. Cock, 40 Ch. Div. 461. \v) Mercier v. Mercier, 1903, 2 Ch. 98. (x) Wassellv. Leggatt, 1896, 1 Ch. 557. (y) Surman v. Wharton, 1891, 1 Q. B. 491. (z) Co. Litt. 46 i ; Dyer, 251. (a) 29 Car. II. c. 3, s. 26 ; Elder v. Pearson, 25 Ch. Div. 620. MARRIED WOMEN. 383 he takes as his wife's administratxjr (b), — but to his own , use (c) . Where a married woman had a general power of ap- Property pointment over property, and she exercised the power, general to wer she did not thereby (in the general case, at least) make ofappoint- the appointed property assets for the payment of her debts ™®'^* "* ®" in an administration of her estate; and her appointment of an executor, just as it was not a disposition of her separate estate (d), so it was not an exercise of her general power of appointment (e). But where personal property was given to a married woman for her separate use for life, with remainder as she should (by deed or will) ap- point, 'unth remainder to her executors or administrators, the gift was held to be a gift to her absolutely for her sole and separate use (/) : And now, under the Married Women's Property Act, 1882, the property (if appointed by her) will be assets for the payment of the married woman's debts, where her separate estate would be assets (gr), — even when the power to appoint is exerciseable by will only (h) . Also, semble, her mere appointment of executors will, where her own estate is insufficient for the payment of the debts and legacies, operate as an exercise of her general power of appointment to the extent required for the payment of those debts and legacies (i) . Courts of Equity were very slow to admit, that a a feme covert married woman having separate property could (in her could not lifetime) bind that property with her debts; but, after a bindW^ time, the Courts ventured so far as to hold, that if she separate 1 •,. j_j__pj7 j_ J} 1 estate with made a written contract for the payment oi money, — by, debts. e.g., a bond under her hand and seal (/<;), — her separate property should, in that case, be made liable for payment of the debt; and the principle of that decision was subse- quently extended to bills of exchange (I), and to pro- (S) 29 Car. II. o. 3, s. 25 ; Elder v. Pearson, 25 Ch. Div. 620. (c) Drew v. Leng, 22 L. J. Ch. 717. [d) Stanton v. Lambert, 39 Ch. Div. 626. («) Thurston v. Evans, 32 Ch. Div. 508. (/) London Chartered Bank v. Lempriere, L. R. 4 P. C.'572. [g] Wilson v. Ann, 1894, 1 Ch. 649. (X) Turner v. Eing, 1895, 1 Ch. 361. (i) In re Seairook, Gray v. Baddeley, 1911, 1 Ch. 151. \k) Seatley v. Thomas, 15 Vea. 596. {tj M'Eenry v. Davies, L. E,. 10 Eq. 88. 334 THE ORIGINALLY EXCLUSIVE JURISDICTION. missory notes {m), — and ultimately, to any written con- Courts now tracts whatsoever (w). But the Courts still refused to thi*l'ame'ex° ^°^'^ ^ married woman bound by her mere verbal agree- teut that she ment, — For (it was said) the married woman's disposi- afe««Mfe*Se ''^°^ °-^ '^®'^ separate estate was in the nature of the may contract execution of a powBT (and only an instrument in writing, acoorciingiy — "^0^1^ Operate as an execution of the power); or, if the her verbal ' married woman's disposition was not like the execution engagements q£ g^ power, it Operated at all events to specifically charge now binding , i , . i. j -i./. ■ ;. t /-i. •j\ on her sepa- her separate estate, and a written instrument (it was said) rate estate. ^ifas indispensable to create such a charge : Eventually, however, it was decided, that a married woman, contract- ing for herself in respect of her separate estate, was bound by her contract, although such contract was by word of mouth only (o). viThat separate But the Courts |still evinced the greatest aversion to originally extending the liability of the separate estate, — and they bound by con- held, in fact, that the general engagements of the married tract o w e, .^^.qjjjj^jj (^entered into during the coverture) could be enforced only against so much of her separate estate as she was entitled to at the date of entering into the en- gagement (and as remained at the date of entering up judgment and suing out execution thereon), — and not against any separate estate to which she became entitled and what after the date of entering into the engagement (p): And i^now'bo^und** it was not until the Married Women's Property Act, under Act of 1882, that the liability of the separate estate was ^^^^- extended (by s. 1, sub-s. 4), to such after -acquired estate. Separate Also, it was Only at a very late period, that the separate u^ie'for- estate of a married woman (committing a fraitd) was meriy, for held liable to make good her fraud (g) ; and where she had concurred in a breach of trust, her separate estate was made liable, only if she had been an "actual actor" in the breach (r) : All which rules were right enough under the old law, — the fraud (or other tort) of the wife having then been (in law) the fraud (or tort) of her husband, — (ot) Bullpin T. Clarice, 17 Ves. 365. (n) Miirraii v. TSarUe, 3 My. & K. 209. (o) JUa/hewman's ca>,e, L. R. 3 Eq. 787. (p) Pike V. FUzgiblwn, 17 Ch. Div. 454. (q) Vaughan v. Vanderstegen, 2 Drew. 165, 363, 408. (r) Sawyer v. Sawyer, 28 Ch. Div. 695. wife's torti MARRIED WOMEN. 335 and not of herself (s) ; but, by the Married Women's tut is, now, Property Act, 1882, s. 24, the married woman is now Wai'ie- liable for any breach of trust or devastavit committed by her, either before or after her marriage, — saving and ex- cepting always where the separate estate is subject to the restraint on anticipation, which is hereinafter dealt with . It was necessary under the Act of 1882, that (the Married married woman's contract having been made on or after ^°tyTct^™' the 1st January, 1883 (t)) she should have had some I893,— separate property at the date of entering into the con- J^'parate estate tract (u), — Which being shown, it was not necessary also enlarged, to show, that the wife had separate estate at the date of entering up the judgment (x): But, under the Married Women's Property Act, 1893 (y), every contract, which (on or after the 5th December, 1893) is entered into by a married woman (otherwise than as agent for her husband or another) is deemed to have been entered into with reference to {and so as to bind) her separate estate, — whether she is possessed of separate estate at the time or not; and the liability is enforceable against all the pro- perty which the married woman becomes entitled to there- after, and even after the coverture is ended. In equity, no personal decree was ever made against a no personal married woman (z) ; and, for example, no bankruptcy decree against decree (or order for her imprisonment), under the Bank- ruptcy Act, 1883 (or under the Debtors Act, 1869), would have been made against her (a); but, under the Married Women's Property Act, 1882 (6), a married woman Married carrying on a trade separately from her husband is (in woman, respect of her separate trade property) made subject to ratelyfinay^' the bankruptcy laws in the same way as if she were a now te made feme sole (c). However, even yet, if she is not carrying '*" "-^ ' on a separate trade, she is not liable to be made a bank- («) Wainford v. Heil, L. K. 20 Eq. 321. (f) Turniull v. Forman, 1.5 Q. B. D. 234. (m) P.ilUier V. Gurney, 19 Q. B. D. 519. \x) Downe v. Fletcher, 21 Q. B. D. 11 ; Beck v. Fierce, 23 Q. B. D. 316. (y) 56 & 57 Vict. o. 63, s. 1. (z) Francis v. Wigzell, 1 Mad. 264. (a) Ex parte Eoliand, L. R. 9 Ch. App. 307. (t) 45 & 46 Viot. 0. 75, s. 1, sub-s. 6. x{e) In re Simon, 1909, 1 K. B. 201. 336 THE ORIGINALLY EXCLUSIVE JURISDICTION. rupt {d), — not even when she is afterwards left a widow, — ^at least upon a judgment against her husband and her- self obtained on her contract made during the cover- ture (e), — Secus, on a judgment obtained against her for even yet°*' ^^^ ^^'^^ ^^^ ' ^^^°' although she may be carrying on a be committed separate trade, she is not even now liable to a commitment for debt. order, under s. 5 of the Debtors Act, 1869 {g); and cer- tain other provisions of the Bankruptcy Act, 1883, which .are applicable to an ordinary debtor, are still not avail- able as against a married woman although trading separately (A-) ; and {e.g.) a bankruptcy notice may not validly issue against her (^), — excepting on a judgment against her for her tort (k). General en- The liability of a married woman upon her contract is bmdThe'*^ a proprietary liability (I), and (for some purposes) a corpus other personal liability also, — For the purpose {e.g.) of a set- and^™ w?e^n °^^ °^ ^'^^^ recovered by her against costs recovered against of her realty, her (m) ; and a receiver on behalf of the creditor will be appointed in the case of a married woman, equally as in the case of a man, — That is to say, the relief against the separate estate of a /erne covert was (and still is) effectu- ated (upon a judgment against her) by means of a charge {n); and a receiver is appointed in aid of the charge (o), and the whole corpus of the estate is liable, the execution only being always limited to such separate estate as she is not effectively restrained from anticipat- ing {p) ; and she may be examined as to what her separate estate consists of (g). And, as regards the ante-nuptial debts of a wife (including her torts before marriage), the liability for all these survives (in general) against her, if (d) Bx parte Coulson, 20 Q. B. D. 249. (e) In re Sewett, 1895, 1 Q. B. 328. (/) In re Beauehamp, 1904, 1 K. B. 572. (g) So'Hnson v. Li/nes, 1894, 2 Q. B. 577. (h) In re Frances Handford, 1899, 1 Q. B. 566. (i) In re Lynes, 1893, 2 Q. B. 113. [k] In re Beauehamp, supra. (l) Holtby T. Hodgsoti, 24 Q. B. D. 1 03. \m) Pelton Brothers V . Harrison, 1892, 1 Q. B. 118. («) Bm-silly. Tanner, 13 Q. B. D. 691. (o) Wehb V. Stet,ton, U Q. B. D. 518. (p) Seott V. Morlet/, 20 Q. B D. 120. (q) Aylexford (Countess) t. G. IF. Sail. Co., 1892, 2 Q. B. 626. MAERIED WOMEN. 337 she survive her husband (whether or not the husband may also have become and been liable therefor (r)). Upon the death of the married woman, her creditors Bills for ad- __ , • • i 1 1 1 1 ministration may commence an action agamst her legal personal repre- of separate sentative 'for the administration of her sep-arate estate, — estate. the husband (even when he takes merely jure mariti) being, for this purpose, her representative (s) ; and the ante-nuptial debts will be provable, along with the debts contracted by her with reference to her separate estate {t). Also, if (being the donee of a general power of appoint- ment) she exercises that power, she thereby, to the extent that she exercises that power (u), renders the appointment property assets for the payment of her debts contracted after 'the 31st December, 1882 (x), — ^and even, semble, for the payment of her debts contracted before that date (y) . A married woman, being at liberty to dispose of her Eestraint on separate property, was in danger of yielding to the soli- origin of, and citations of her husband to dispose of it, — and not unfre- ie<=essity for. quently did so dispose of it, to her own undoing (z) ; and in order to provide against that, the Court sanctioned a provision restraining her anticipation of the income: And inasmuch as the separate estate was purely the creature of equity, equity was well able to sanction such a restraint, — Scil., because, although a similar fetter imposed on the property of a man was void as repugnant (a), yet the restraint on anticipation (in the case of married women) was consistent with, and in furtherance of, the very object of the separate estate ; and, by the law of certain places {e.g., Quebec), a wife's separate property is not mort- gageable at all, even for her husband's necessities (&), and {r) Beck v. Fierce, 23 Q. B. D. 316. (s) Surmanv. Wharton. 1891, 1 Q. B. 491. {t) Bell V. Stacker, 10 Q. B. D. 129. (m) Darley v. Hodgson, 1899, 1 Ch. 666. (x) Roper v. Doncaster, 39 Oh. Dlv. 482. \y) Coxen v. Rnwlani, 1894, 1 Ch. 406. (z) Ellis V. Atkinson, 2 Dick. 759. (a) Brandon v. MoUnson, 18 Ves. 429.' (A) Gauthier's case, 1904, A. C. 94. 838 THE OEIGINALLY EXCLUSIVE JURISDICTION. The perpetui- ties rule, — how far ap- plicable to the restraint on anticipation ? Restraint on anticipation,— operation of. (by the law of the Transvaal) the wife's mortgage, as a surety for her husband, is hedged round with many safe- guards (c). The restraint on anticipation is commonly said to be subject to the Eule against Perpetuities,— according to which, no title can be validly conferred on anyone (so as to vest in him or in her), unless the title will (and neces- sarily will) commence and vest, if at all, in the beneficiary within the period of a specified life in being or of specified lives in being (when the document conferring the title first operates) and the further period of twenty-one years after the extinction of the specified life or of the last survivor of the specified lives: But, if the title itself vests (and necessarily vests) in the beneficiary within the limit of time prescribed by the rule, it is difiicult to see why the restraint on anticipation, which is a mere incident to the title (or gift), should not be good, notwithstanding that it would (unless lifted off by the Court) operate beyond the limit (d): But there is a prevalent opinion to the contrary (e). The legality of the restraint on anticipation having " been once established, the next question which arose was, whether the restraint was confined to the actually existing coverture, or extended to a subsequent marriage; and it was eventually determined, that the restriction extended to a subsequent marriage (/) . But, of course, the estate must first be separate estate before the restraint on anti- cipation can be annexed to it, — although now, where the gift (by force of the Married Women's Property Acts) is for the married woman's separate use, there the restraint on anticipation can validly be annexed, without any express creation first of the separate estate (g). And these propositions may be taken to be now established, namely: —That while a spinster, the female entitled to her separate (c) Ba»k of Africa \. Cohen, 1909, 2 Ch. 129. \d) Do'reilv. Dotrell, 1895, 2 Ch. 698. {«) 16 Hals. Laws of England, on pp. 371 — 2, citing In re Femeley's Trusts, 191 '2, 1 Ch. Si3. (/) TuUett V. Armstrong, 1 Bear. 1. ig) In re Zumley, 1896, 2 Ch. 690. MARRIED WOMEN. 339 estate without power of anticipation, may anticipate the entirety (or any part) of her estate; but that immediately upon her marriage (No. 1), the separate estate, and with it the restraint on anticipation, attach and endure during that coverture, as regards any separate estate then remain- ing; and that upon her widowhood (No. 1) both the separate estate and the restraint disattaoh; and again, upon her subsequent marriage (No. 2), and subsequent widowhood (No. 2); and so on taties quoties, attaching and dis-attaching and re-attaching and again dis-attach- ing, according as she is covert or not from time to time and for the time being. When the fund is in Court, and the married woman Funds in applies for the payment out of that fund, the Court has ^^^^^^ „ot to inquire, — Whether the restraint is still a continuing paid out to restraint or not: And, Firstly, if the restraint is not a earned continuing one, the fund will be paid out to the woman receipt, on her separate receipt (A), — or to her attorney duly autho- rised (i) : But, Secondly, if the contract is a continuing restraint (as e.g., if the testator has said that his trustees are to hold the fund for the married woman), the fund will not be paid out (fc), — and that, whether the fund is an income-bearing one or not (I). But if the life estate of the married woman is for her separate use, and she is entitled also to the absolute reversion in the fund but not for her separate use, the fund will not be paid out, — because (in such a case) there is no coalescence of the two interests (m): But if the coalescence has once happened, then, although it should have afterwards ceased, the fund will be paid out(w). However, the Court will not do anything by way of aiding the coalescence of the two interests (o). No particular form of words is necessary to create the ^^* words restraint on anticipation; and where the trustee of settled alienation,— Meld\.Mvans. (h) In re Bankes, 1902, 2 Ch. S33. (i) Stewart v. Fletcher, 38 Ch. D. 627. (A) AcanonY. Greenwood, 31 Ch. Div. 712. [l) In re Tippett and Newbould, 37 Ch. D. 444. (m) Whittle v. Hemiing, 2 Phil. 731. (n) Plowden v. Gayford, 39 Ch. D. 622. [n] Harrison v. Harrison, 40 Ch. D. 418. z2 340 THE OKIGINALLY EXCLUSIVE JURISDICTION. What words ■will not re- strain aliena- tion, — Parkei y. White. property was directed to receive (during the lady's life) the income " when and as it became due," and to pay it to her for her separate use; and it was expressed, that her receipts {after the income should have become due) should be valid discharges for it, — She was held to be restrained from anticipating the income (p). And, on the other hand, where a testator bequeathed a sum of stock in trust for the separate use of his wife for her life, and directed that it " should remain (during her life) and be (under the order of the trustees) made a duly adminis- tered provision for her, and the interest given to her, on her -personal appearance and receipt," — It was held, that the widow (who had married again) was not restrained from alienating her interest in the stock (q), — Because, generally, where expressions are used giving the wife a right to receive separate property " with her own hands from time to time," — or so that her receipts " alone for what shall be actually " paid into her own proper hands shall " be good discharges," — these expressions are only an " unfolding " of what is implied in the separate use (r), and do not suggest any restraint on anticipation. In what cases the trust would have been wholly destroyed, — so as not to attach on marriage. Inasmuch as a married woman has (when discovert) the full power of alienation over her separate estate, — even where it is coupled with the restraint on anticipation, — The question sometimes arises, whether she has not (by her intervening acts before coverture or during a dis- coverture) acquired the property unfettered with the re- straint: And where stock was bequeathed to a woman for her separate use without power of anticipation, — the bequest being to the woman direct, and not to a trustee for her ; and she (being discovert) sold the stock, spent a pOiTtion of the proceeds, and invested the rest in shares and in bonds, — It was held, that (by so doing) she had determined the separate use, and with it the restraint on anticipation (s), — So that the administrator of the hus- band became entitled to the whole fund (although the wife survived): But, now, if the married woman should {p) Bland V. Dawes, 17 Ch. Div. 794. (q) III re Ross's Trusts, 1 Sim. N. S. 176. (V) Parkes v. White, 11 Ves. 222. («) Wright V. Wright, 2 J. & H. 647. MARRIED WOMEN. 341 (before coverture or during a discoverturo) make any such disposition of the corpus or capital of her separate estate, — and should afterwards marry or re-marry, — her re- maining property will, semble, become her separate estate again, hy virtue of the Married Women's Property Act, 1882. And it is convenient to mention here, that if a married woman (restrained from anticipation) purports to bar her estate-tail (and to limit the fee simple to her- self), she may well do that (t), the disentailing deed being a mere re-creation of her old estate (u), discharged of the fetters of the entail. Even a Court of Equity could not (apart from statute) Court of have dispensed with the restraint on anticipation : 'There- not dispense fore, where a testator gave a legacy to a married woman, •with the fetter upon the express condition that she should (within twelve months) execute a certain conveyance of her separate estate (which was subject to the restraint against antici- pation), — It was held, that the Court had no power to release the property from that restraint, even though it was for the married woman's benefit to have done so (x) . But under the specific provisions of an Act of Parlia- ment, the Court might have released the restraint for ^f"^*' now,— the purposes of the Act; and, under the Conveyancing veyancing ' Act, 1881, s. 39, the Court may,— if it thinks fit, but not ^ot, 1881; otherwise (y), and if it is made to appear to be for the benefit of the married woman, and if she consent, — now lift off the restraint, either in whole or in part (2), or sub- ject to any conditions it thinks fit (a) : And the Court may, accordingly, now lift off the restraint, — for the purpose of effecting some particular mortgage or other definite dis- position of her property (6), or for the purpose of some .compromise (c) ; and if (in such a case) the money or fund (so released of the restraint) is applied in payment of the (t) Cooper V. MacdonaM, 7 Ch. Div. 288. («) Martin d. TregonweU v. Strahan, i Bro. P. C. 486. (x) Smith V. Luias, 18 Ch. Div. 531. (y) In re Pollard's Settlement, 1896, 2 Ch. 552. (z) Hodges v. Hodges, 20 Ch. Div. 749. (a) In re miner's Settlement, 1891, 3 Ch. 547. \b) In re Warren's Settlement, 52 L. J. N. S. Ch. 928. («) Bayer v. Maclean, 1903, 1 Ch. 848. S42 THE OKIGINALLY EXCLUSIVE JURISDICTION. debts of the husband, the wife is not entitled to recoup- ment by or to any indemnity from the husband {d) . And undei Married Women's Property Act, 1893, and Trustee Act, 1893. Also, now, by the Married Women's Property Act, 1893, s. 2, the Court may order to be paid (out of separate estate subject to the restraint) the costs payable by a married woman of her vexatious litigation (e); and by the Trustee Act, 1893, s. 45, the Court may impound separate estate (subject to such restraint), in order to make good a loss occasioned to the trust estate by the married woman's breach of trust: But the Court will not readily remove the restraint for either of these two purposes (/), • — Soil., because it is the duty of the trustees (and also of the Court) to protect the inarried woman against her- self. Also, any special Act of Parliament (enabling the Court to interfere with the restraint on anticipation) must apparently specifically so provide : For example, the Matrimonial Causes Act, 1884 {g), which contains no such specific provision, does not (by its mere general provi- sions, enabling the Court to assign an allowance to the husband in lieu of enforcing by attachment a decree for the restitution of his conjugal rights), enable the Court to interfere with any separate property which is subject to the restraint {h). But, in a variation of the settlement, that Court may, semble, discharge the restraint (i) . Arrears of separate estate, — liability of. As regards the "arrears" of separate estate (restrained from anticipation), it appears to be now settled (fc), that a judgment obtained against a married woman may be enforced against arrears accrued due at or before the date of the judgment (although they have not yet come into her actual possession); but that arrears accruing due after the judgment cannot be got at by the judgment credi- tor {I), — any more than they can be got at by the [O) Faget v. Faget, 1898. 1 Ch. 47, 470. («) Pawleij V. Pavihy, 1905, 1 Ch. 693. (/) Bolton V. Curre, 1895, 1 Ch. 544. [g) 47 & 48 Viot. c. 68. (h) Mkhellv. Michell, 1891, P. 208. (i) Churchward v. Churchward, 1910, P. 196. (h) Sood-Barrs v. Heriot, 1896, A. C. 174. (/) BoUtho V. Oidky, 1905, A. C. 98. MARRIED WOMEN. 343 voluntary aliene© of such separate estate (m), every pro- spective voluntary charge (equally with every prospective charging order) being equally void(«); and a judgment against the married woman when a widow, if the judg- ment be ohtained on a contract entered into during the coverture, is, now, on the same footing' exactly (o). Sub-sect. 2. — The Effects of Recent Legislation . Under the 20 & 21 Vict. c. 85 (Divorce Act), s. 21,— as 20&21 vict amended by the 21 & 22 Vict. c. 108, s. 8, — if a wife is separate estate " deserted" {p) by her husband, she may obtain (as wler. regards her property) a protection order against her bus- ^^' esertiou. band and his areditors, — and (in case of the subsequent cohabitation of the husband and wife) the property will (under such order) be held for her separate use (g) ; but she still continues, of coarse, a married woman after the making of such protection order (equally £is she would continue a married woman after a voluntary separa- tion (r)), and her general separate estate (with or with- out the restraint on anticipation) also continues (s) . Also, (2) Judicial by the 20 & 21 Vict. c. 85, s. 25, if a married woman =«P*'^*«°"- is "judicially separated" she is to be deemed a feme sole Eis regards her property acquired subsequently to the judicial separation (i). And as well in the case of a protection order as also in the case of a judicial separation, the married woman will be liable (on her contracts subse- quent), as if she were a feme sole (m) ; and her husband will not be liable at all for her torts subsequent (x) . (m) Stanley v. Stanley, 7 Ch. Div. 589. («) Ellis V. Johnson, 31 Ch. D. 632. (o) Brovm y. Dimbleby, 1904, 1 K. B. 28. (p) Failes v. Failes, 1906, P. 326. (q) Nicholson T. Drury Buildings, 7 Ch. Div. 48. \r) St. John v. St. John, 11 Ves. 525 ; Mackenzie y. Edwards- Moss, 1911, 1 Ch. 578. (s) mil T. Gooper, 1893, 2 Q. B. 86. (t) Dawes v. Greyke, 30 Ch. Div. 500 ; Waite v. Morland, 38 Ch. Div. 135. («) Brandon v. Stiff hes, 1898, 1 Ch. 529. {x) Bark v. Kingseote, 1900, 2 Ch. 585. S44 THE ORIGINALLY EXCLUSIVE JURISDICTION. Variation of settlement. The effect of an actual "divorce" (or of a decree of " nullity ") is, of course, to make the woman a feme sole ; and, in such a case. Firstly, her "settled" property may be dealt with by a variation of the settlement (y) ; and. Secondly, her "unsettled" property may be diversely settled (2) : And the Court interposes in that way between the spouses, whether the husband (a) or the wife (b) is the offender, but not, semble, where both are offenders (c), —nor after the death of either of them where there are no children (d) . And the principle on which the Court proceeds, in all such cases, is this, namely, — to secure (as far as possible) to the innocent party (and to his or her children) all the like advantages from the property which they might have reasonably expected from it, if the marriage relation had not been interrupted (e), — and the variation may therefore be made to extend {e.g.) to depriving the offending husband of any share in the settled property which be may have taken as administrator of a decefised child of the marriage (/) . 41 Vict. c. 19, s. 4, — separate estate under. 49 & 50 Vict. c. 52,- Beparate main- tenance under. Under the 41 Vict. c. 19 (Matrimonial Causes Act, 1878), s. 4, if a husband w£ts convicted, summarily or otherwise, of an aggravated assault (within the meaning of the statute 24 & 25 Vict. c. 100, s. 43), the magistrate before whom he was so convicted, if satisfied that the future safety of the wife was in peril, might have ordered that the wife should be no longer bound to cohabit with her husband {g), — and might (at the same time {h)) have ordered the husband to pay his wife a weekly sum; and under the 49 & 60 Viet. c. 52 (Married Women's Main- tenance in Case of Desertion Act, 1886), a married woman deserted by her husband (^) might have summoned (y) Allcardv. WaUm; 1896. 2 Oh. 369. [z] Zorriman V. Lorr'tman. 1908, P. 282. (a) Smith V. Smith. 12 P. Div. 102. (5) Midwinter v. Midwinter, 1R93, P. 93. (c) Constantinidi v. Comtantinidi, 190.5, P. 253. {d) Thomson v. Thomson, 1896, P. 263. (f) Hartopp V. Smtopp, 1896, P. 65. (/) Hlood V. Blood, 1902, P. 78. {(/) JT'oodv. Wood, lOProb. Div. 172. (it) Woodheadv. TVoodhead, 189.i, P. 343. (i) Reg. v. Zeresche, 1891, 2 Q. B. 418. MARRIED WOMEN. 345 him before a magistrate, and the magistrate might have ordered him to pay her a weekly sum (not exceeding two pounds) proportioned to his means and to the destitution of the wife, — the magistrate's order being made enforce- able as an affiliation order: Both whi-ch Acts have now been repealed, — so far as 58 & 59 Vict, their provisions are above stated, — by the Summary "• ^^'"7 ^^j^. Jurisdiction (Married Women) Act, 1895 (k); and it has tenance under, now been provided, by the repealing Act, as follows, that is to say: — That upon such conviction of the husband as aforesaid, — and also in case the husband shall desert his wife (l), — and also in case of persistent cruelty by the husband (or of wilful neglect by him to provide reasonable maintenance for her and the children, whereby she is driven into leaving him and living apart from him), — The Court of summary jurisdiction (or, in case of con- viction on indictment, the High Court) may order, that the wife shall be no longer bound to cohabit with the husband, and that the husband do pay to the wife a weekly allowance not exceeding two pounds (enforceable as an affiliation order), — Which weekly allowance may also afterwards be either increased or diminished, or wholly discharged, — and will be, ipso facto, discharged, in case the wife voluntarily resumes cohabitation with the hus- band (m), or commits adultery (ti) : And, on these pro- visions of' this statute, it has been held, that the order of the Court has all the effect of a "judicial separation" (as regards the future status of the wife); that the co- habitation which is broken off need not have been con- tinuous (o); that proof of means must be given before any allowance will be made (p) ; and that the application for the order must be made within six months of the act entitling the wife to make the application, — desertion being, however, deemed a continuing act (q), although cruelty (or wilful neglect) is not so (r) . The order (/,:) 58 & 59 Viet. o. 39. (1) Dnddv. I)odd, 1906, P. 189. (m) Baddon v. Baddon, 18 Q. R. D. 778. (n) Enther t. Sufher, 1903, 2 K. B. 270. (o) Bradahaw T. Bradshaw, 1897, P. 24. {p) Earnshaw v. JUarnshaw, 1896, P. 160. {q) Seard v. Seard. 1896, P. 188. {r) Mlis-7. Ellis, 1896, P. 251. 346 THE ORIGINALLY EXCLUSIV:^ JURISDICTION. Married Women's Property Act, 1870,— separate estate under. Extent of husband's liability for debts, under Harried (where it is made by the justices) is appealable to the Divoroe Division (on any matter of law), — but the justices need not (for that purpose) state a case, it being sufficient if the justices' clerk supply a note of the case to the Court, showing the grounds for making the order (s) . It is to be observed, however, that there can be no "desertion," where there is a subsisting separa- tion deed (t) ; and the desertion may otherwise be ex- cusable, — and so not count (m); and it is also to be observed, that for "habitual drunkenness" in either of the spouses, the other is exempted from the duty of co- habiting with him or with her (x) . Also, " cond-onation " on the wife's part wholly defeats her rights under the Aot(?/). Under the Married Women's Property Act, 1870 (z), which came into force the 9th day of August, 1870, it was enacted (briefly) as follows: — By s. 1, that the wages and earnings of any married woman, acquired or gained by her separately from her husband (and all investments of such wages and earnings) should be her separate property; By s. 7, that where any woman, married after the passing of the Act, should during her marriage become entitled to any jDersonal property as next of kin of an intestate, or to any sum of money (not exceeding £200) under any deed or will, such property should be her separate property; And by s. 8, that where any freehold copyhold .or customary-hold property should descend upon any woman married after the passing of the Act, the rents and profits of such property should be her separate property (a), — Scil., for her life only (b): Also, by s. 12 of the Act, a husband was exempted from all liability for the debts of his wife contracted before marriage, — the wife being made exclusively liable therefor, to the extent of her («) Cobb V. Cobb, 1900, P. 145. (i!) Piper V. Piper, 1902, P. 198. («) Frowd V. Fmcd, 1904, P. 177. (x) Licensing Act, 1902 (2 Edw. VII. u. 28), s. 5. (2^) Williams v. Williams, 1904, P. 145. (2) 33 & 34 Vict. 0. 93. («) King v. Voss, 13 Ch. Bit. 604. (i) Toovey v. Turner, 1907, 1 Ch. 475. MAREIED WOMEN. 347 separate property; but that exemption of the husband -womeu's proving mischievous, therefore, by the Married Women's Property- Property Act, 1874 (c), which came into force the 30th 1^^187^* day of July, 1874, the husband and wife might again have been jointly sued for any debts of the wife con- tracted before the marriage, — ^^and the husband was again made liable therefor, but to the extent only of the assets (of the wife) in the Aot specified (the onus being on the husband to show no such assets {d)). Under the Married Women's Property Act, 1882 (e). Married — which came into operation on the 1st day of January, property 1883 (s. 25), but which has of course no operation out Act, 1882,— of the jurisdiction,~it is provided (in substance) as ^^^^^te estate follows: — By s. 2, every woman marrying on or after the 1st What pro- day of January, 1883, shall hold as her separate property separate— ^ all real and personal estate which shall either belong to q^ -^ ^^^^ „( her at the time of the marriage, or which shall come to marriage on her after the marriage (including the wages and earnings jl^u^y, °1883. of any separate -employment, — and the gains of any literary, artistic, or scientific skill, — carried on or exer- cised by her separately from her husband); and, by s. 5, (2) in case of every woman married before the 1st day of January, marriage 1883, shall hold as her separate property all real and date^^ * personal estate, " her title to which (whether vested or contingent and whether in possession, reversion, or re- mainder (/)), shall accrue " on or after the 1st day of January, 1883 (including such wages, earnings, and gains as aforesaid) : It is to be noted, however, that a mere spes successionis is not considered as a " title accrued" within the meaning of this section (for the purposes of the section (5^) ) ; and further, that the title which accrues Title, accrual upon the exercise of a power of appointment (whether of,— undw general or special) is deemed in law to have accrued, — as ' from the date of the operation of the appointment (and not as from the date of the instrument giving the (e) 37 & 38 Vict. c. 50. (d) Matthews V. Whittle, 13 Ch. D. 811. (e) 45 & 46 Vict. o. 75. (/) Reid-v. Slid, 31 Ch. Div. 402. Ig) StoekUy v. Pwrsom, 45 Ch. Div. 51. 348 THE ORIGINALLY EXCLUSIVE JURISDICTION. Deposits, consols, Government annuities, stocks, shares, &o. (1) When to be separate property.- (2) When not to be separate property. power (^)), the prior accrued interest being "defeated" by the exercise of the power {i). And it is convenient to also note here, — ^as regards covenants to settle property, — that if the covenant is to settle a fee simple remainder expectant on an estate tail; and the estate tail is barred, and the resultant fee simple descends upon (or comes to) the covenantor, — the fee simple estate (so descending upon him) is not the old fee simple remainder (which has been extinguished), — and therefore is not caught by the covenant (fc) : Seeus, where the old title remains, only bettered (l). By ss. 6 and 7, — All deposits in post-office or other saving-banks (or in any other banks), and all consols, &o. &c., on or after the 1st day of January, 1883, standing in the sole name of a married woman, — or (by s. 8) in her name jointly with any other person (other than her hus- band), — are to be deemed her separate property, — Soil., until the contrary is shown; and the liability (if any) attaching thereto is to be incident to the married woman's separate estate only (s. 9); but no corporation or com- pany is (merely by the Act) either obliged or authorised to accept or admit a married woman as a holder of its stock or shares (s. 7). Also, any of the aforesaid invest- ments which have been made with the husband's moneys and without his consent, are to remain the husband's pro- perty, — and if made in fraud of the husband's creditors, are void as against his creditors (s. 10). Married woman, having sepa- rate estate, may contract, and incur liabilities like a man; By s. 1, sub-ss. 2, 3, and 4, provided only she had separate estate at the time (m), — and it was separate estate which she might reasonably be deemed to contract with reference to (w), — a married woman was rendered capable of contracting, — and of contracting even with her hus- band (o), — so as to bind her separate estate; and every (h) In re Vizard's Trusts, L. R. 1 Ch. App. t (i) Xovett V. Lovett, 1898, 1 Ch. 82. (k) Smith T. Osborne, 6 H. L. Ca. 375. [1) Noel V. liewlay, 3 Sim. 103. (m) PalUser v. Gurney, 19 Q. B. D. 519. («) Harrison v. Harrison, 13 Prob. Div. 180. (o) Butler v. Butler, 16 Q. B. D. 374. MARRIED WOMEN. 349 contract entered into by her was to be prima facie con- sidered a contract entered into by her in respect of her separate estate: And, now, by the Married Women's Pro- perty Act, 1893 (56 & 57 Vict. c. 63), s. 1, every contract which after the 5th December, 1893, is entered into by a married woman (otherwise than as her husband's agent (p)) is a contract binding on her separate estate, whether she has &r has not any such estate at the date of the contract ; and the contract binds all her separate estate, luhether then present or future, and all property which she there- after (while discovert) is entitled to (q) . By s. 1, sub-s. 1, of the Act of 1882, a married woman and may make might also have made a will; but her will (made during aman'^ " coverture) operated only on the separate estate which she then was (or afterwards during the coverture became) possessed of or entitled to, — and required therefore to be re-executed by her when she became discovert, if it was to dispose of property acquired after the coverture had come to an end (r). But, now, by the Act of 1893, s. 3, and her will jT 'iij? 'J /jj" i\ now operates the Will 01 a married woman (made during coverture) exactly like is to be construed, with reference to the real and personal tlie will of estate comprised in it, as speaking and taking effect from the death of the testatrix, equally as (under s. 24 of the 1 Vict. c. 26) the will of a man would be construed; and words of appointment may (for this purpose) be con- strued as words of bequest (s) . Also, the testatrix need not have any separate estate at the date of making her will; and she need not re-execute her will, after she is left a widow; and all these provisions apply to the wills of married women who shall die after the 5tli December, 1893 (i). But, nota bene, where any specific disability has been imposed (by special Act) on a married woman's power of devise or of bequest, that specific disability con- tinues notwithstanding these provisions (m) : Secus, where (p) Paquin v. Beauclerk, 1906, A. C. 148. \q) SoftlawY. Welch, 1899, 2 Q. B. 419. (r) Cuno V. MamAeld, 43 Ch. Div. 12. (s) In re James, Sole v. Bethvne, 1910, 1 Ch. 157. (t) In re Wylie, 1895, 2 Ch. 11«. («) Clements v. Ward, 35 Ch. Div. 5S9. 3^0 THE ORIGINALLY EXCLUSIVE JDEISDICTION . Married woman may sue and be sued alone : and, being a trader, may be made a bankrupt. there has been a subsequent special statute dealing specifi- cally with the disability {x) . By s. 1, sub-s. 2, of the Act of 1882, a married woman may now sue or be sued either in contract or in tort, — as if she were a feme sole, and without her husband being joined either as a co-plaintiff or as a co-defendant with her; and the costs and damages recovered by or against her, go to increase or (as the case may be) to diminish her separate estate, — and are accordingly liable to be attached under a garnishee order (?/). And, by s. 1, sub-s. 5, if (but only if) she carries on (or has carried on {z)) any trade separately from her husband, she is (in respect of her separate property, and the debts incurred in such trade) liable to the bankruptcy laws (a) . And all these liabilities of a married woman (on her contracts entered into subsequently to the Act), extend as well to her separate estate as also (by s. 4) to any pro- perty subject to a general power of appointment which she may have exercised by her will. But her ap- pointment property (being property over which she has a general power of appointment, and which power she has not exercised) will not be liable in the event of her bank- ruptcy (6). Also, a committal order cannot be made against a married woman, even if she be proved to have had (or to have) the means to pay (c), — Unless in respect of debts {e.g., poor rates) the recovery of which is (by statute) made specifically enforceable by committal {d) . An attachment may, however, issue against a married woman, to enforce payment into Court (e) . Her claim as By s. 3 of the Act of 1882, if the married woman lends her'own'bus- °^ entrusts any separate property to her husband, — Scil., band, being in connection with his trade, and not otherwise (/), — and a bankrupt. (x) Douglas v. Simpson, 1905, 1 Ch. 279. (y) Eoltby t. Hodgson, 24 Q. B. D. 103. (z) In re ff'orsley, 1900, 1 Q. B. 309. (a) Ex parte Lester, 1893, 2 Q. B. 113. (A) Ex parte Gilchrist, 17 Q. B D. .')21. (c) BraycottY. Harrison, 17 Q. B. D. 147. {d) In re Elizabeth Allen, 1894, 2 Q. B. 924. (e) Turnhull v. Nii-hnlas, IHQO. 1 Ch. 180. (/) In re Clarke, 1898, 2 Q. B. 330. Cannot be compelled to exercise, being bankrupt, her general powers, — and cannot be committed. MARRIED WOMEN. 361 he becomes bankrupt, or dies insolvent {g), — The separate property is to be treated as assets of the husband, and the wife is (in such case) to have only a right of proof agains,t her husband's estate as a creditor for it, and her right of proof is posterior to the claims of the other creditors of the husband Qi) . But that provision does not interfere with the wife's right of " retainer " {where she is entitled to such right (i)); nor is it applicable to a loan made by a married woman to a firm in which her husband is a part- ner (fc); nor does it invalidate any "security" the wife may have taken (Z), or her right as a surety, where (as surety for her husband) she ha-s mortgaged her estate (m) . By s. 24 of the Act of 1882, the word "contract" is Her position to include (for the purposes of the Act) the "acceptance" trixorad- " of any trust (or of the office' of executrix or administra- ministratrix. trix), — So that the liability of the separate estate now extends to any breach or trust (or devastavit) committed by such married woman, — and whether before or after her marriage, — and her husband (provided he have not inter- meddled) is not now to be liable therefor : All which is an entire inversion (and repeal) of the old law, — For (by the old law) the husband of a married woman (who was a trustee or an executrix or administratrix) was liable {n), — and she herself (in respect of her separate estate) was not liable (o), — for her breaches of trust (and devastavits) . But a husband still remains liable for his wife's other torts, — Scil., where (and only where) he used to be liable for them {p), — as, for example, his wife's frauds {q), libels (r), &c. And, nota bene, the action is against the husband and wife, and abates on the wife's death (s), — or on her judicial separation (t). (a) Tarnv. Emmerson, 1895, 1 Ch. 652. (/() Ex parte District Bank, 16 Q B. D. 700. ()■) Woodhead v. Ambler, 1905, 1 Ch. 697. (/c) Ex parte Nottingham, 19 Q. B. D. 88. (I) Ex parte Shiel, 4 Ch. Div. 789. {m) Ex parte Gronmire, 1901, 1 Q. B. 480. (») Bnlinghrolce y. Ker, L. R. 1 Exch. 222. (o) Wainfordy. Neil, L. R. 20 Eq. 321. Ip) In re Beauchamp, 1904, 1 K. B. .572. (q) Earle v. Eingxcote, 1900, 2 Ch. 585. (r) Beaumont v. Kaye. lt<04, 1 K. B. 292. (s) Capely. Powell, 17 C. B. N. S. 743. [t] Cuenod v. Leslie, 1909, 1 "K. B. 880. 352 THE ORIGINALLY EXCLUSIVE JURISDICTION. Executor And here it is to be noted, as regards the " acceptance. " de son tort. ^f ^^ executorship or trust, that an executor who ad- ministers before obtaining probate, is regarded simply as an executor de son tort, — and he (and also his estate) is liable accordingly; and any company which (before pro- bate) pays to such an executor any dividends on the shares of the deceased, is also an executor de son tort(u), — Because, generally, any one acting under an executor who cannot show the probate, is liable as an executor de son tort; and the mere circumstance, that (by reason of the death of the executor) probate is never obtained by him, although he intended to obtain it, is no excuse, either to the company or to other the person aforesaid (x) ; but the probate (subsequently obtained) cures anything that was merely informal before, on being ratified by the duly con- stituted legal personal representative (y) . By s. 18 of the Act of 1882, a married woman, who is an executrix administratrix or trustee, is to be regarded as a feme sole, — So that her husband need not now be a party to the administration bond given by his wife (z) : Wife's ao- And Seeing that the married woman is competent (of knowledged herself alone) to execute the trust, — it followed, that the require"for wife's deed Conveying the trust property (whether real trust real estat© or personal estate) was good without acknowledg- no longer, ment, and therefore without her husband's concurrence required. jjj such deed, — ScU., Because, if he concurred, he would be a co-cormeying party, and {e-x hypothesi) he had no estate or interest to convey ; and that view (sifter a pitiful succession of decisions to the contrary (a)) has now been declared by statute (&) to be the correct view. Ajite-nuptiai By s. 13 of the Act of 1882, as regards all debts con- w1f?iii^l'e'~' tracted (or liabilities incurred), and all contracts (or torts) for; andhus- entered into (or committed), by a married woman before band liable («() The New York Breweries case, 1898, 1 Q. B. 205. (x) Sharlmd v. Mi'don, 5 Ha. 469. («/) In re Watson. 18 Q, B. T> 116. (z) He Harriet Ayres, 8 Prob. Div. 168. (a) In re Earkness and AUsopp, 1896, 2 Ch. 358 ; In re West and Hardy, 1904, 1 Ch. 145. {b) 7 Edw. VII. c. 18, B. 1. MARRIED WOMEN. 353 her marriage, — she is to continue liable (in respect of and concurrently, to the ext&nt of her separate property) for ail sums re- e°teQt*? covered against her, and also for all the costs of suit: And, by s. 14, her l).usband also continues liable therefor, but not further or otherwise than to the extent of the property (belonging to his wife) which he shall have acquired {or become entitled to) from or through his wife, — after deducting any payments already made by him (and any sum for which judgment may have "been already recovered against him), in respect of any such debts liabilities contracts or torts : And (as betvi^een the husband and wife) the separate estate is, prima facie, to be deemed primarily liable therefor (s. 13). Accordingly, the plain- tiff may sue both husband and wife, — jointly or solely (s. 15); and the judgment is a personal judgment against the husband to the extent of his liability, and a pro- prietary judgment against the wife to the extent of her separate property (c) . By 8. 12 of the Aot of 1882, every married woman (in Hemedies respect of her separate property) may, in her own name criminS) of pursue, against her husband and also against third married parties, all civil remedies {d) for the protection and ^°^"y ^nd security of her separate property, — giving also (if re- protection oi quired by the exigencies of the suit) an undertaking in ^^^'^4**'^ damages (e); and she may also pursue any criminal remedies that may be applicable. But, as regards criminal proceedings, these are not to lie by the wife against her husband, while they are living together (nor in respect of any act done by the husband, while they were living together, and he was not on the point of deserting her); and (subject to that) he may prosecute her, being the offender (/), — wherever she might prose- cute him, being the offender (s. 16); and in all such criminal proceedings, the wife may give evidence against the husband, and (under the Marrisd Women's Property Act, 1884 {g)), the husband against the wife. But, ex- (c) Goatley v. Jones, 1909, 1 Ch. 657. [d) Lamer v. Lamer, 1905, 2 K. B. 539. («) Pike V. 0inii m equity, wards become entitled: And no distinction exists, in this respect, between personal property to which the wife is entitled in equity and personal property to which she is entitled at law; and where the wife is entitled (as one of several co-owners) to an undivided share only, the law is the same, — Scil.,soia,r as regards her undivided share (f), — So that, subject only to the Acts aforesaid, all the wife's personal property (whether at law or in equity) becomes prima facie the husband's; and equity (in compelling the husband to make a settlement of it on his wife) is interfering with his rights to it. On what ground, then, is the interference of equity wife's equity with the husband's rights to be supported? And it is ^°^g„*?^™™* safe to assert, that the wife's equity to a settlement did pendona not (and does not) depend on any right of property in her, pl^* in^e°'_ — For if she insists upon her equity, she must claim it for herself and her children (and not for herself alone) . The wife's equity to a settlement was, in fact, a mere creature of equity, — and was an application of the maxim, "He tut arises who seeks equity must do equity," — That is to say, the from the ^ Court refused its aid to the plaintiff-husband seeking (in wh^seeks ^ a Court of Equity) to acquire what the law entitled him equity must to (but which no Court of law had jurisdiction to give ° ^"^"^ ^' him); and as he necessarily came into a Court of Equity (s) Masson v. JDe Fries, supra, [t) Bracebridge t. CooTc, Plowd. 418. 360; THE ORIGINALLY EXCLUSIVE JI/RISDICTION . for it, that Court obliged him to fall in with its own ways, — and never allowed a husband to obtain the fortune of his wife, without he first made a provision for her thereout : And onoe the principle was recognised where the husband was the plaintiff, it was easy to apply it also to cases where the assignees of a bankrupt (or insolvent) husband were the plaintiffs; and the rule was afterwards held to apply, even as against the particular assignee of the hus- band (for valuable consideration) where he was plain- tiff (m); and, eventually, the wife herself was permitted to come (as a plaintiff) to assert her equity (a;). The general principle upon which the Court acts, in decreeing or not to married woman a settlement. Before proceeding to any detailed consideration of the equity, it is convenient to state the principle which governs it: Now, there being, first of all, a possibility of the husband getting hold of and keeping to himself (by virtue of his legal rights) the property of the wife, the Court inquires, whether the wife (if she survive her husband) will take the entirety of the property (by virtue of her right of survivorship hereinafter explained); and if (but only if) there is a possibility of the husband getting and keeping the whole property, and the wife will not be entitled to the entirety by survivorship, then the Court inquires into the question of the wife's equity to a settle- ment out of it: And (upon that inquiry) the Court inquires principally, whether the property is legal, or is equitable: And the Court answers :^-(l) If the property is equitable, the wife is entitled to an equity out of it (there being no other sufficient reason for denying her the equity) ; but (2) If the property is legal, the wife is not entitled to any equity out of it (there being no other sufficient reason for decreeing to her the equity). The general principle illus- trated. — (1) Wife's terra, or lease- hold interest, (a) Being equitable. (1) The Wife's Leaseholds. — Firstly, where the hus- band (and wife) assigned by way of mortgage (and by unacknowledged deed) the equitable interest of the wife (or of the husband in right of his wife) in a term of years, and the mortgagee filed his bill (against the hus- (m) Scott V. Spashett, 2 Mac. & G. 596. (x) Elibank v. Montolieu, 5 Ves. 737. MAKKIED WOMEN. 361 band, the wife, and the trustee) far a foreclosure and assignment of the term, the wife was held to be entitled to a provision for her life (by way of settlement) out of the mortgaged premises («/) : But, Secondly, where a (b) Being similar assignment took place of the wife's legal interest ^®sal- in leaseholds, the wife was held to have no equity to a settlement out of them, the mortgagee having taken a good legal title thereto from the husband alone {z). But, in a case of Boxall v. Boxall {a), where the leaseholds of the wife were legal, and the husband had deserted his wife, and she had sold the leaseholds, — making title thereto through a fraud which purported to shoto, that she was a widow, and that the leaseholds had been her own separate estate; and she had expended the whole purchase-money upon the maintenance of herself and her children, — The Court refused to recognise the husband's title at all, or to give him any relief at all against the purchaser of the leaseholds. (2) The Wife's Pure Personal Property. — There was (2) Wife's no doubt at all, that if the property was legal, the wife had p^e personal no equity out of this ; but if that property was equitable, (a) Being there was just as little doubt, that the wife had an equity i«ga-i- out of it: Which equity, when the property belonged to ^'^^ ■???^_ the wife for the absolute estate or interest therein, held good not only as against the husband, but also as against everybody claiming under him (6'). On the other hand, (aa^Andin- where the property belonged to the wife for her life only, terest being the Court never (in the absence of misconduct on the part iS^erest."*'^ of the husband) deprived him of the income of the fund, — (bb) interest and therefore held, that the wife (even where her husband |l^™s to had deserted her (c), Imd failed to maintain her, or had become bankrupt {d)) was not entitled, as against a pur- chaser for vaMe of the life-estate, to any provision out of her life^estate, — Scil., where the purchaser had purohaised (y) Sanson v. Keating, 4 Hare, 1. («) BUI v. Edmmds, 5 De G. & Sm. 603. (a) 27 Ch. D. 220. (b) Tidd V. Lister, 3 De G. M. & G. 869. (c) Wright v. Morley, 11 Ves. 12. (d) Elliott T. Cordell, 5 Mad. 149. "62 THE OEIGINALLY EXCLUSIVE JURISDICTION. previously to the desertion or bankruptcy (e). But the husband's general assignee was not so favoured, — because, when his title accrued, the incapacity of the husband ta maintain his wife had already to Ms knowledge raised an equity in her favour, — and she therefore was, in that case, entitled to have some provision made for her out of the life-estate, — but not out of any income accrued due before she claimed her equity (/) . (3) Wife's (3) The Wife's Real Estate. — In the case of realty of rtp't t f inheritance, the question of the wife's equity to a settle- inheritance, ment out of it did not arise, — Because there was no possi- (b) Life estate. hiUty of the husband either taking or keeping the inheri- tance adversely to his wife; and, therefore, whether the estate was legal or wafe equitable, the wife had no equity, — Scil., because she had something better (namely, the whole indefeasible inheritance, in fee simple or in fee tail, as the case might he{g)). And the question, therefore, only arose as regards the wife's life-estate (where she was entitled to a life-estate only), — or arose only as regards the rents and profits during the coverture (where the wife was entitled for an estate of inheritance in fee simple or in fee tail). Now, where the husband was an insolvent debtor, and his wife was entitled to certain lands for her life only, and for the equitable estate only therein, — the' Court held, that the wife was entitled (as against the assignee in the insolvency) to have some provision made for her out of the accruing rents and profits {h) : And, again, where the husband had abducted his wife (and had been imprisoned for the abduction), and his wife was the legal tenant in tail of certain lands, — but her legal title was subject to a jointure rent-charge, and to a term of years created for the purpose of securing that charge and ceasing with the charge, — The Court held, that so long as the term lasted (whereby the wife's estate tail, although good enough in equity, was not perfectly good at. law) the wife was entitled, as against her husband (e) Vaughan v. Bueh, 13 Sim. 404. (/) Re Carr's Tmats, L. R, 12 Eq. 609. (g) Life Association of Scotland v. Siddall, 3 De G-. F. & J. 271. (A) Sturgis v. Ohampneys, 5 My. & Cr. 97. MARRIED WOMEN. 363 (and his creditors), to have some provision made for her out of the accruing rents, — ^although not after the term should have ceased (if it should, in fact, cease) during tho coverture (i) . A wife might, by alienation, have defeated her equity Wife's equity to a settlement: And, Firstly, as regards her freehold her^aUenation. estates, whether in possession or in reversion (fc), she (i) interests might have alienated these, — by a deed duly acknow- in realty, ledged by her, and executed (with the concurrence of her W Freeholds, husband) in the manner provided by the 3 & 4 Will. IV. o. 74: Secondly, as regards her copyhold estates, she (b) Copyholds, might have alienated these, — by a surrender thereof, being separately examined, and her husband concurring, of course: And, Thirdly, as regards her personal estates (2) interests (whether leaseholds or pure personal estate), her husband in personalty. might solely have disposed of all these, — subject only to (?■) inposses- the wife's establishing (if she was able to) her equitj' to a settlement out of them : But, Fourthly, as regards /j,) in rever- the wife's choses in action (or pure personal estate out- sion, or out- standing), the old common law said, that the marriage ^'^^'^'"S- was only a qualified gift of these to the husband, — That is to say, a gift to him, only if {or upon condition that) he reduced them into possession during '(in effect) his life, — So that, if he died before his wife without having reduced such property into possession, the wife (by right of survivorship) remained entitled to the property. Accordingly, where ,a husband and wife (by deed exe- Wifesurvivuig cuted by both) purported to assign to a purchaser for took her ^" valuable consideration a fund in which the wife had a reversionary vested estate in remainder, expectant on the death of a ^hich^hehad tenant for life, — and both the mfe and the tenant for not reduced life outlived the husband,— It was held, that the wife l^'°.P°!ff" /•I i*T 'I- N sion , ana (notwithstanding her concurrence in the assignment) was husband's entitled to claim the whole fund, — all such assignments l^f^omms (although made by the husband and wife jointly) than the operating to pass only the interest which the husband husband had had, — That is to say, they only operated subject to the wife's legal title by survivorship (I), and not as the wife's (i) Wortham v. Pemberton, 1 De G. & Sm. 644. {*) Tuer V. Turner, 20 Beav. 560. [T) Purdew v. Jackson, 1 Kuss. 1. 364 THE ORIGINALLY EXCLUSIVE JURISDICTION. assignment at all: And the Court had not even power to take the wife's consent to part with her legal title by survivorship (m), — That is to say, the legal right of survivorship was never bound by a Court of Equity (n); and it was, in f aot, for that precise reason, that a claim by the wife for a settlement out of her reversionary in- terest in pure personal property, so long as it continued reversionary, was not maintainable (o), — Soil., because she had something better. Divorce of husband, — ■when, and when not, equivalent to his death, — as regards the property of his wife. If the husband had been divorced by the wife, the divorce was deemed to be his death, — Scil., for the pur- pose of defeating his right to a chose in action of the wife's, which was still (at the date of the divorce) out- standing and unreduced into possession (p). But, nota bene, if the wife's property had been settled on tfer marriage, and the husband (surviving his wife) took a life-estate under the settlement, the divorce was not (in that case) equivalent to death, — but the husband (contin- gently on surviving his wife) remained entitled to his life- estate (g), — Soil., unless and until the Divorce Court (on a variation of the settlement) extinguished the life- estate. Malins's Act, 20 & 21 Vict. c. 57. Fetne cover i^s interests in personalty, — ^a) Being in reversion ; By Malins's Act (20 & 21 Vict. c. 57), every married woman (unless she was restrained from anticipation) was enabled (with the concurrence of her husband), by deed acknowledged in the manner required by the' Fines and Recoveries Act, to dispose of every future or reversionary interest (vested or contingent) belonging to her (or to her husband in her right {r)), — in any pure personal estate, to which she was entitled under any instrument (except her own marriage settlement (s)) made after the 1st December, 1857; and she was also thereby enabled to release or extinguish any power in regard to any such personal estate, — and to release and extinguish also her equity to a settlement out of her personal property in [m) Richards v. Chambers, 10 Ves. 580. («) Seaton-v. Seaton, 13 App. Ca. 61. (o) In re Slater's Trusts, 11 Oh. Div. 227. Ip) Wilkinson v. Gibson, L. R. 4 Eq. 162. [q) Fitzgerald v. Chapman, 1 Ch. D. 563. (r) Tennent v. Welch, 37 Ch. Biv. 622. (s) Harlem. Jarman, 1895, 2 Ch. 419. MARRIED WOMEN. 365 possession, — Soil., under any such instrument as afore- (b) Being in said, and excepting always as aforesaid: And a married possesBion. woman may now, semble, by an ordinary unacknow- ledged deed even release and extinguish her powers generally (i), — Sed queer e ; However, a mere spes succes- sionis of the wife is not a future interest within the mean- ing of Malins's Act (u) . As regards a wife's choses in action (not being her Fmecomrt's separate estate), this distinction used to betaken (and still action,- would be taken), namely: — Firstly, if the chose in action accrued before had belonged to the wife before her marriage, the action ^craed aftS^ for its recovery required to be brought by the husband marriage,— and wife jointly as co-plaintiffs (x),— In which case, if S'een""' the husband predeceased the wife, the action survived to the wife, — ^and her right of survivorship was thereby rendered the more effective: But, Secondly, if the chose had accrued to the wife during the coverture, the husband might have sued therefor in his own name (and without adding his wife as a co-plaintiff), — or he might (at his option) have added the wife as a co-plaintiff, — In which latter case, the wife's right of survivorship (in case she survived) would again have been effective in the action («/) . If the wife was entitled to a reversionary chose in action As to cases (whether legal or equitable), and it was neither separate "^gJJt''!? estate of the wife nor within the provisions of Malins's operation of Act, the effect of an assignment of it by the husband — the assign- or by the husband and wife jointly, — would have been different under different circumstances: For it is certain, firstly, that the wife by herself cannot assign ; and, secondly, that the husband can only assign to another the interest to which he is himself entitled: Supposing, therefore, the wife to be entitled on the death of A; (a living person) to a sum of stock standing in the names of trustees; and supposing that her husband purports to make an assignment of this reversionary interest to B., a purchaser, — The benefit which accrues to B. (the pur- (t) Semphillv. ITemphill, 1901, 2 Ch. 82. (m) Allcard v. Walker, 1896, 2 Ch. 369. {x) Sates V. Dandy, 2 Atk. 207. (j)) Coppin's case, 2 P. Wms. 496. 366 THE ORIGINALLY EXCLUSIVE JURISDICTION. chaser) by virtue of the assignment will vary according as the husband, the wife, or A. dies first, — That is to say:— (1) If the husband dies first, B. loses his purchase, — For the wife, having survived her husband, will (on the death of A.) be entitled by survivorship to the stock (z); (2) If A. dies first, B. will then become entitled to a transfer of the stock, — Scil., If the trustees choose to transfer it to him, and the wife has not meanwhile taken steps to enforce her equity to a settlement (a) ; but if the trustees refuse to transfer (or if the wife has insisted upon her equity) B. only takes the fund subject to the wife's equity to a settlement; and (3) If the wife dies first, — Then, inasmuch as the hus- band (on taking out administration to his wife) would be able to recover the fund at law, — Therefore B. (as the husband's assignee) will (in this single case) obtain the whole fund, — subject (in general) to paying the husband his costs of obtaining the administration. What did not It is to be remembered always, that any mere assign- rSuction°i^to D^^nt by the husband of his wife's reversionary chose in possession. action is not an actual (6), — or even a constructive (c), — reduction of it into possession; and therefore, whether the husband died in the lifetirae of the prior life-tenant, — whereby the chose in action could not (as against the wife) be reduced into possession; or whether the husband survived the prior life-tenant and died (leaving the wife) before it was actually reduced into possession, — In either case, the chose in action survived to the wife (d) . And where the wife was entitled to a legacy, and her husband was the executor of the will, and the wife survived him, — It was held, that there had been no reduction into posses- sion by the husband, and the legacy survived therefore to the wife (e). Also, the transfer by a husband of the title-deeds of which his wife was equitable mortgagee, (z) Sonner v. Morton^ 3 Russ. 65. (a) Greedy v. Lavender, 13 Beav. 62. (A) Hornsby v. Lee, 2 Mad. 16. (e) Le Vasseur v. Seratton, H Sim. 116. (a!) Widgery v. Tepper, 6 Ch. 616. {«) Baker v. Hall, 12 Ves. 497. MARRIED WOMEN. 367 — the transfer being to secure a debt of the husband's own, — was held not to defeat the wife's right of survivor- ship (/); On the other hand, if the husband is in a posi- What did tion to maintain an action at law for the amount of the rXctio^into chose in action, — as for " money had and received," — that possession, is a reduction of the chose in action into possession (gr); and if (in a pending action) the income has been ordered to be applied in payment of the husband's incumbrances, that is a reduction into possession (to the extent that the money is so applied (h)). Also, if the chose in action has accrued to the wife during the coverture (but not where it has belonged to her before the marriage), and the hus- band (suing for it in his own name alone) recovers judg- ment for it, — That is a reduction of it into possession (i); and, of course, any actual payment to an agent of the husband is (to the extent of such payment) a reduction into possession. In a case of In re D'Angibau (k), A. was entitled in reversion (expectant on the prior life-estate of her mother) to a certain trust fund of pure personal estate, — and while an infant she married B. (an adult); and A. and B. settled the reversion, in trust for A. for her life, with power in her to appoint by deed or will, and (failing appointment) in trust for A.'s next of kin: And after- wards A . (while still being an infant) appointed the fund to B., and died leaving her mother and B. surviving, — and the Court said, that (subject to the continuing life- estate of the mother) B . was entitled to the whole fund, — either (1) as appointee of A.; or else (2) as surviving hus- band; and the next of kin of A. (who were mere volun- teers) wore, in either case, excluded from any share in the fund. A wife may, at her own option and without regard to Settlement, if the children, waive or abandon her equity; and if (e.g.) ^avehT^^ she consents to the husband receiving the whole, the made on wife and children. (/) Michelmore v. Mud^e, 2 Giflf. 183. (17) Dardierv. Chapman, 11 Ch. JHv. 442. (h) Tiid V. lister, 3 De G. M. & G-. 869. (i) Oglander v. Baston, 1 Vern. 396. (A) 15 Ch. D. 228. 368 THE ORIGINALLY EXCLUSIVE JURISDICTION. When the right of the cmldren becaxne indefeasible. children will be defeated of their (so-called) rights: The , inquiry therefore arose, — What was sufficient to create a title in the children? And, Firstly, if the property was in the hands of trus- tees, it was not enough that the wife should have given them notice (in however formal a manner), that she de- manded a settlement, — Scil., because the trustees might (notwithstanding any such notice) have handed over the property to the husband; And, Secondly, if the wife had even commenced an action to effectuate her equity, she might (at any time before the settlement was completed) have waived and defeated her joquity (I), — and therewith the (so-called) rights of her children : And upon this waiver of the wife's equity, these points were established, namely: — (1) That if the wife died before the action was com- menced, the children had no right to a settlement (to) ; (2) That if the wife died after action commenced, but before decree, her children had no right to a settle- ment (n); But (3) If a decree (or order) had been made in the action (referring it to Chambers to approve a proper settlement), and the wife had then died before anything further had been done, — In this case (and in this case only), the chil- dren were entitled to the benefit of the decree, and might enforce such a settlement as the wife (if still living) would have been entitled to enforce (o) . Eight of ^^^ right ,of the children to a settlement also arose children might (after the death of their mother), where there was a con- TOntract hy* ^^'^^^ ^J ^^e father to make a settlement of his wife's father. property; and yet, — even after such a contract, just as after a decree, — the wife (if living) might (at any time before the execution of the sisttlement pursuant to the contract) have waived her equity, — and so have defeated the (so-called) rights of the children (p): But, nota bene, the wife, if an infant, could not have waived her equity. (l) Wallace v. Auldjo, 1 De G. J. & Sm. 643. (m) Soriven v. Tapley, 2 Eden, 337. (n) Fitzgerald v. Chapman, 1 Ch. Div. 563. (o) Wallace v. Auldjo, supra. [p] Baldwin v. Baldwin, 5 De G. & Sm. 319. MARRIED WOMEN. 369 The wife's equity to a settlement might also have been wtat would defeated adversely to her and to the children: Thus, defeat wife's when the debts of the wife (oontracted before marriage) Tertieme^t. exceeded the fund to which the husband became entitled in her right (g),— or when the husband's debts to the estate out of which the wife's interest arose exceeded the amount of such interest (r),— In either of these two cases, the equity to a settlement was defeated, — although the wife's equity (which was paramount to any right in the husband (s)) would not have been wholly defeated by reason of the husband's indebtedness (t). Usually, also, the wife's equity would have been de- feated, if an adequate settlement had been already made upon her (u), — or if she was living in adultery apart from her husband (x) . But, where both the husband and the wife were living in adultery, it was held, — setting off the one wrong against the other, — that she was entitled to her equity (y) . And, lastly, a married woman would have defeated her equity, if she had committed a gross fraud: For example, where by a document purporting to bear date before (but in reality signed after) her marriage, she purported to assign certain property of hers to her husband, — and the husband thereupon sold the property, — the woman was precluded {as against the purchaser) from claiming her equity to a settlement (z) . As regards the amount to be settled upon the wife and Amount of children,— Firstly, If the husband was solvent and re- ««'««™«°t- fused to make a settlement upon his wife, the Court would not (because it could not («)), so long as he sup- ported her, prevent him from taking the income of her property; but what the Court did (in such a case) was, to retain the capital, so as to give the wife a chance of taking it by survivorship {b): But Secondly, When the husband had become bankrupt (or (?) Barnard v. Ford, L R. 4 Ch. App. 247. (r) Wardv. JVard, 14 Ch. Div. 506. {«) Sloper V. Oliver. L. E. 16 Bq. 481. {t) Fonltcr r. Shackell, 39 Ch..r)iv. 471. (m) BiiUman v. Wynter, 22 Ch. Div. 619. \x) In re Lewin's Trmt, 20 Beav. 378. (y) Greedy v. Lavender, 13 Beav. 62. (z) In re Lush's Trusts, L. E.. 4 Ch. App. 591. (a) Alexander v. MeCttllouffh, cited in Ball's case, 2 Ves. 191. (b) Atcheson v. Ateheson, 11 Beav. 485. S. B B 370 THE ORIGINALLY EXCLUSIVE JURISDICTION. Form of settlement. How far settlement binding, as against credi- tors of hus- band. was notoriously insolvent), the amount to be settled was purely within the discretion of the Court; and in deter- mining the amount, the Court took into consideration, generally, the conduct of the husband, and also the con- duct and circumstances of the wife. Usually, one half of the wife's property would be settled upon herself and the children (the remaining one half going to the husband or his assignees (c)): But in some cases, the whole fund would be settled on the wife and children, — as where it was barely sufficient for her and their maintenance; and where the husband was bank- rupt or a lunatic {d), or had deserted his wife (e), the whole fund was settled. But, in the settlement (whether of the half or of the whole), the Court did not interfere with the marital right further than was necessary to give effect to the wife's equity, — So that the ultimate limita- tion in default of issue (of the existing marriage, or of any future marriage or marriages of the wife), was to the husband (absolutely (/;), whether or not he survived) the wife {g). Settlements inade in pursuance of the equity to a settle- ment were binding upon the creditors of the husband, — Scil., Because the statute 13 Eliz. c. 5 is only aimed against fraud; and a bond fide settlement will hold good as against the husband's creditors, — even although it should be voluntary (h), — and still more so, if it should be by way of compromise (i), or otherwise for value. Also, under the Bankruptcy Act, 1883, s. 47, "a settle- ment, — made on (or for the benefit of) the wife or children of the settlor, of property which has accrued to the settlor after marriage in right of Ms ivife," is good as against the trustee in the bankruptcy of the husband. Also, where the Court decrees the settlement, it is a good settlement, — and is deemed to be for valuable "considera- tion" (fc): And where the fund was in trustees, and they (c) In re SiiggiU's Tncsts, L. R. 8 Ch. App. 215. (d) Scott T. Spashctt, 3 Mac. & G. 599. (e) Reid v. Seid, 33 Ch. Div. 220. (/) Croxton v. May, 9 Ch. Div. 388. (g) Gale v. Gale, 6 Ch. Div. 144. (A) Cndngan v. Eennett, 3 Cowp. 434. (i) mhU T. Bull, 1 Cox, 445. {k) Simson v. Jones, 2 Euss. & My. 365. MARRIED WOMEN. 371 would not pay it to the husband, unless he made a settle- ment of it (which he did), — The settlement was held to be a good settlement (as against the husband's creditors), the action of the trustees operating like an order of the Court might have done (Z) . Section IV Settlements in Derogation of Marital Eights. So long as husbands became entitled on marriage to wife must the property of their wives, any alienation of that pro- committed a perty (in fraudulent derogation of the prospective marital iraud on the rights) would, in equity, have been deemed null and void, ""*" '^ "^ For (it was said) if a woman, " during the course of the treaty of marriage with her," makes (without notice to the intended husband) a conveyance of any part of her property, it is a fraud, — and will be set aside (w) . The decided cases supported the following conclusions relative to this theory of fraud, that is to say: — Firstly, if a woman (entitled to property) represented J*' during a to her intended husband, during the marriage treaty, that riagef she™^"^" she was so entitled; and if, during the same treaty, she aliened «i«i/j- 'l/ J owt fiusoQinct s clandestinely conveyed away the property to a volun- knowledge teer {n), and, the (Concealment continued until the marriage whShsL^had took place, — That was a fraud on the husband, and he represented was entitled to relief (o); and it did not (for this purpose) ytie^ jt'J" : was matter, how meritorious (on the wife's part) the clandes- a fraud on tine settlement might have b6en(p). Also, where a „ ' woman, ten months before the marriage, hut after the cipieappiic- aommencement of that intimate acquaintance with her not^^nowher future husband which ripened into marriage, made a to be possessed settlement of a sum of money which he did not even know ^J^^ ^^°' her to be possessed of, — ^and she concealed from him both her right to the money and the execution of the settle- ment (q), — and the husband (ten years afterwards) became (T) Wheeler Y. Caryl, Amb. 121, 122. , (m) Strathmore v. Bowes, 1 Ves. 22. (») Lance v. Norman, 2 Ch. Rep. 79. (o) England \. Sownes, 2 Beav. 528. (p) Taylor v. Fugh, 1 Ha. 608. (j) Goddard v. Snow, 1 Kuss. 485. B b2 372 THE ORIGINALLY EXCLtTSIVB JURISDICTION. Not fraudu- lent, if to a purchaser for valuatle con- sideration without notice. acquainted with the settlement, and filed a bill to upset it, — The Court held, that the settlement was void, as a fraud upon his marital rights (r), — Secus, if the settlement had been for value and bond fide (s) . But, Secondly, if the intended husband is made ac- quainted before the marriage with the fact of the settle- ment having been made, and still thinks fit to marry the woman, he is bound by the settlement (i). A husband Thirdly, the settlement must (in all oases) have been aside a con- '^^ made during the course of the treaty for marriage with veyance, when the particular husband challenging it; and accordingly, a the'ma^"'^™^ Settlement made by a widow upon herself and the children ■with. Mm. of a former marriage, — it being proved, that the person she afterwards married was not at the time of the settle- ment "her THEN intended husband," — was held to be no fraud on him (m) : And where the plaintifi (pending a treaty of marriage with A.) made a settlement with A.'s approbation, — and a few days afterwards she threw over A. and married B., who had no notice of the settlement, — The settlement was held good against B. (x). Lastly, where the husband had before the marriage seduced his wife, a settlement executed by her, although without her husband's knowledge, was supported (y), — the husband having committed a quasi-forfeiture of his rights . Since the Married Women's Property Act, 1882, it is difficult to see, how any conveyance by a woman about to marry can now (whether it be secret or not) be considered fraudulent as against her husband: Anyhow, the fraud on him would not be productive of legal damage; and fraud without legal damage is no ground of action (z), either at law (a) or in equity (fe), — So that the equitable- doctrine of Fraud on tie Marital Eights has become,. semble, a merely curious (and wholly obsolete) doctrine. If he had seduced his wife before marriage, her conveyance was good. Married Women's Property Act, 1882,— how it affects frauds oil marital rights. (r) Downes v. Jennings, 32 Beav. 290. (s) LlewelUn v. Cobbold, i Sm. & Giflf. 376. (() NeUon v. Stacker, 4 De G. & J. 458. (m) England v. Downei., 2 Beav. 531. (V) Straihmore v. Howes, supra. (y) Taylor v. Fugh, 1 Hare, 608. (z) Smith V. Chadwich, 9 App. Ca. 187, on p. 196., (o) Sullivan v. Mitcalfc, 5 C. P. D. 465. (*) Mash V. Oalthorpe, 1905, 2 Ch. 237. 873 CHAPTEE XXn. INFANTS. A FATHEE is the guardian by nature and nurture of his Father, as children during their infancy, — ^although (by the 36 Vict. guarniyif into money will be deemed to remain real estate, — in each ™Sr agT. case, in the event of the death of the infant before he arrives of age : Also, when the Court directs such a con- version, it invariably directs, that the new investment shall (but only in case the infant shall die under twenty- one) be held in trust for the benefit of those who would be entitled to it if it had remained in its original state (p) . But if the infant attains twenty-one (although he should die the next day), his respective representatives must take the property according to its actual condition at the time of the death, — Wherefore a mortgage (rather than a sale) should be resorted to, where a capital sum has to be raised, for expenditure on an infant's estate (g) . The sanction of the Court to the marriage of a ward Marriage of of Court (whether male or female) is invariably required mtstbiw'i'S*' to be obtained (r) ; and if a man should marry a female consent of ward (or a woman should marry a male ward), without °"^ ' the sanction of the Court, he or she (and all others con- cerned in aiding or abetting the act) will be guilty of a contempt of Court, — and may be punished by imprison- ment (s) : Moreover, their ignorance of the fact (that the infant is a ward) will not be sufficient to acquit them of the contempt, although it may weigh in determining the severity of their punishment. Also, with a view to prevent- ing the improper marriage of the ward, the guardian may be required by the Court, to enter into a recognisance, that the infant shall not marry without the leave of the Court, — In which case, if the infant should afterwards marry (though without the privity of the guardian), the recog- nisance will (in strictness) be forfeited. And where there improper is reason to suspect an improper marriage being contem- carriage of . strained hy {p) Foster v. Foster, 1 Ch. Div. 588. injunction. (q) III re Jackson, supra. (r) Smith v. Smith, 3 Atk. 305. (s) Fx parte Mitchell, 2 Atk. 173. 378 THE ORIGINALLY EXCLUSIVE JURISDICTION. plated, the Court will (by injunction) interdict communi- cations between the ward and his or her admirer (t), — and (if necessary) will even remove the guardian, and commit the ward to the care and custody of another guardian (u) . Settlement must be approved by Court. Settlement imder Marriage Act, 4 Geo. IV. 0.76. Upon the intended marriage of a ward, the Court (upon petition) refers it to Chambers, to ascertain and report, whether the match is a suitable one, — and also what settle- ment ought to be made; and if the marriage has been actually celebrated without its sanction, the Court compels a suitable settlement, — and commits the husband for his contempt, and refuses to discharge him until he has made the proper settlement (a;) . Also, under the 4 Geo. IV. c. 76, the guardian of any minor, who has married without his consent, may obtain a declaration of forfeiture against the party, who (by falsely stating that such consent has been given) shall have procured the marriage, — and the Court will thereupon decree a settlement on the other party and the issue of the marriage (y) . Binding settle- ments by infants under 18 & 19 Vict. e. 43. By the Infants' Settlement Act, 1855 (18 & 19 Vict, c. 43), an infant, — ^not being under twenty years of age if a male, or seventeen years if a female, — is enabled (with the approbation of the Court, to be obtained on petition or summons) to make a binding settlement on marriage of his or her real and personal estate (whether in possession reversion remainder or expectancy), — Scil., as fully as if he or she were of full age (and not more fully (z)), — and so that the settlement shall (except as to any estate tail of the infant) remain binding on him or her, although he or she should afterwards die under age. Father bound A father (being bound to maintain his children) will *9 "hi^^ren ^°^' "^**^^^2/j ^^^^ ^^7 allowance out of their property for though there that purpose; but where the father is not able to give (t) Pearce v. GmtchfieU, 14 Ves. 206. (m) Tamhes v. Elers, 1 Dick. 88. \x) Field V. Moore, 7 De G. M. & G. 691. (V) In fe Sampson and Wall, 25 Ch. Div. 482. \i) Seaton v. Seaion, 13 App. Ca. 61. INFANTS. 379 his child an eiucation suitable to the expectant fortune of is a provision the child, maintenance will be allowed. Also, if there ten^ce"' is a contract (amounting to a trust), that a particular whenfatheri* property shall lie applied for the maintenance and educa- entitled to an tion of the children (a), that property (or a sufficient part of the income thereof) must be applied without reference to the ability or inability of the father to maintain and educate the children; and, in such a case, the past accumu- lations of income may also be, from time to time, resorted to (and used) for the purpose (b) . In case a father should apply his child's property Howaiiow- towards its maintenance, under circumstances in ivhich ^'"'Y ^ j v he .would not have been allowed anything for maintenance, he may be ordered to refund : And, on the other hand, when he has applied his own property for the child's maintenance, under circumstances in which he would have been allowed something for that purpose, he will receive a sum in respect of such past maintenance (c) . And, in allowing maintenance for an infant, regard will be had to the state and condition of the family: For example, where there are younger children (numerous and unpro- vided for), the Court will make a liberal allowance to the eldest son (as being in loco patris {d)), in order that he may be the better able to maintain his brothers and sisters, — and so derive (indirectly) a greater benefit him- self from their society (e) ; and a liberal allowance will also sometimes be made for infants, in order to relieve or assist their parents even, when these are in comparatively distressed circumstances (/) : But note, that, in all these cases, it is the infant's benefit which is considered, although the benefit he derives may sometimes be slightly remote. Upon the application for maintenance, the Court has Past main- jurisdiction (without suit) to charge the expenses of the chargroiTreai estate of infant for. (m) Wilson V. Turner, 22 Ch. D. 521. (b) EdvMrds v. Grove, 2 De Gr. F. & J. 210. {c) Welch v. Chanmll, 26 Ch. Div. 68. (d) Petre v. Petre, 3 Atk. 511. [e) Bradshaw v. Bradshaw, 1 J. & W. 647. (/) Brown v. Smith, 10 Ch. Div. 377. ^^^ THE ORIGINALLY EXCLUSIVE JURISDICTION. past maintenance (together with the costs of the applica- tion) on the corpus of the fee simple estates of the in- fant (ff), — such charge being in the nature of a judgment for neoessaries, followed up by execution against the infant's real estate (h) : But no such charge can be made, if the infant is entitled in remainder only (and not in possession), or is entitled in tail only (^). Maintenance, Where a testator leaves property of considerable value, when not to be accumulated for twenty-one years (or any specified fents'and* °* number of years), — and directs that the accumulations profits directed shall he laid out in the purchase of land, to be held in trust tobeacoumu- fo^. j^ ^ f^^. ^-^ |-|g ^^g^ afterwards for his eldest son for life, and for the first and other sons of such eldest son successively in tail, — If A. B. is possessed of a moderate income only (which is insufficient for the maintenance and education of his sons, to fit them for the prospective positions in life which by reason of the testator's deferred bounty they will fill), the Court will (notwithstanding the express trust for accumulation) allow to the father an immediate present allowance for the maintenance and general benefit of the infants (k). And where a testator directed the income of his real and personal estates to be accumulated for twenty-one years, and gave the accumu- lated estates to his sister for life, with successive re- mainders to her three sons and their respective children, — The Court directed a present annual sum to be paid to the sister out of the income of the personal estate for the maintenance and education of her three sons (Z) . But the Court requires to be satisfied (in all such cases), that there are special circumstances justifying it, in practically set- ting aside (pro tanto) the trust for accumulation, — a.nd (in the absence of such special circumstances) will not interfere with that trust, notwithstanding the trust may be hurtful and capricious (m) . I (g) In re Sowarth, L. R. 8 Ch. App. 415. \h) In re Hamilton, 33 Ch. Div. 397. (i) In re Hambrovgh, Hmnhroiigh v . Sambrough, 1909, '2 Ch. 620. (7c) Havelock v. Emelock, 17 Ch. Div. 807. (?) CoUitis V. Collins, 32 Oh. Div. 229. (m) Hunt V. Farry, 32 Ch. Div. 383. 381 CHAPTER XXIII. LUNATICS, IDIOTS, AND PERSONS OF UNSOUND MIND. Unsoundness of mind, of itself, gives the Court of Chan- Unsoundness eery no jurisdiction (a), the jurisdiction of that Court °roun(ffoT relative to the estates of lunatics arising (where it arises) jurisdiction in upon some independent ground of trust, partnership, or equity. the like (a): In fact, the jurisdiction in Lunacy was in xhejurisdio- existence long before the Court of Chancery existed, — tionwasinthe the jurisdiction having been originally vested in the uponmqidsi- Court of Exchequer as being the Court which had special tion,— because care of the crown's prerogative in matters of revenue, revenue^ ° — Which prerogative was subsequently defined or regu- lated by the Statute of Prerogatives (17 Edw. II.), the 9th chapter relating to idiots, and the 10th chapter to lunatics; and it was under that statute, that the crown acquired (in effect) the management of the estates of idiots and of lunatics. The jurisdiction of the Court of Exchequer in Lunacy Exchequer was very early superseded; and the Lunacy jurisdiction i^^JJi^foy^TraM- was subsequently vested in divers Courts and in divers ofE- ferred to Lord cials (not profitable to specify here), — Until, eventually, the practice became a constant one, for the crown to delegate the care and custody of lunatics (and of their estates) to the Lord Chancellor, — not as being the Presi- dent of the Court of Chancery, but as being an executive ofSoer of the highest standing in the realm, and enjoying the most intimate personal relations with the crown. But, nota bene, the fact (although an accident), that the Lord Chancellor was also a great judicial officer (and com- petent as an adviser in matters of law and equity), was a reason (not without its weight) which helped to per- manently fix the Lunacy jurisdiction in the President of the Chancery Court. (ffl) BeallY. Smith, L. B. 9 Oh. App. 85. Chancellor. 382 THE ORIGINALLY EXCLUSIVE JURISDICTION. Lords Justices in Chancery coneuiTently with, and in aid of, Lord Chancellor, acquired the jurisdiction, and now exercise it. Shortly after the appointment of the Lords Justices in 1851 (&) as a Court of Appeal in Chancery (with all the original and other jurisdiction of the Lord Chancellor in the Court of Chancery), — a warrant under the Queen's sign-manual was made out to each of the Lords Justices, intrusting him with the care and custody of lunatics ; and under the Lunacy Regulation Act, 1853 (c), the jurisdic- tion of the Lords Justices in Lunacy (concurrently with that of the Lord Chancellor) was continued. Then, after- wards, upon the coming into operation of the Judicature Acts, 1873-75, — when the Lords Justices became a mere limb of the new Court of Appeal (and were therefore indirectly deprived of all original jurisdiction in the Chancery Division of the High Court), — the Lords Justices were appointed (by virtue of s. 51 of the Judi- cature Act, 1873) " additional judges " of the High Court of Justice, — for the pnrpose of more effectively exercising their jurisdiction in Lunacy (d), and so as to possess (and be able to exercise) all the original jurisdiction of Chan- cery, that was ancillary to the jurisdiction in Lunacy (e). And, by the Lunacy Act, 1890 _(/), ss. 108—149, the jurisdiction of the Lords Justices is (in effect) continued, — but with a recognition of the fact, that the Lunacy juris- diction is peculiar, — And, for example, the appeal in Lunacy from the Lord Chancellor (or from the Lords Justices) would still be to the Judicial Committee of His Majesty's Privy Council (as distinguished from the House of Lords (g)), — Excepting that divers orders in Lunacy do (in fact) go (on appeal) to the Court of Appeal itself (h), — these last-mentioned ^.ppeals being (for the most part) from the Masters in Lunacy. Seally. Smith, —what pro- Chancery would be a contempt on the Lunacy jurisdiction. A person of unsound mind is, usually, found a lunatic on due inquisition: And in such a case, a committee is appointed of the person and of the estate of the lunatic; and such committee (once he is appointed) becomes an officer of the Court in Lunacy; and no person may there- (S) 14 & 15 Vict. u. 83. \c) 16 & 17 Vict. c. 70. (d) Re Catheart, 189.3, 1 Ch. 466. (e) Ih re Pktt, 36 Ch. Div. 410. (/) 53 Vict, c 5. (g) Re Windham, 4 De G. F. & J. 53. (A) Re Sefton, 1898, 2 Ch. 378. LUNATICS, IDIOTS, ETC. 383 after {without first obtaining the leave of the Court in Lunacy) commence or continue any proceedings for the lunatic's protection {i) . Nevertheless, a solicitor may lawfully enough commence (and also continue) an action, on behalf of a person whom he believes to be sane, and although an inquiry should be pending regarding the plaintifi^s state of mind, — Only, once the lunacy is found (or once there is a constat that the intending plaintiff is insane), the solicitor should no longer continue the action, — Because application may at all times be made to the Court in Lunacy (by the lunatic's committee) for the Court's sanction as to anything that may require to be done. However, on the lunatic's death, the whole jurisdiction of the Court in Lunacy comes to an end, and the jurisdiction in Chancery is restored again in full(fe). For the better guidance of the committee in Lunacy, Lunacy Act, the Lunacy Act, 1890 (in its 116th and following Sln^^' sections), contains various directions and authorities to management the committee regarding the management of the lunatic's ^'°^^^- estate; and when these directions or authorities do not suffice, or are inapplicable, the Court in Lunacy will (by virtue of its general jurisdiction) give any special direction {I) . Regarding the maintenance and support of the lunatic. Lunatic's the Court (as regards all legal questions and matters) ™aUowance' follows the law, — and will {e.g.) hold the lunatic's estate for, how to be liable for all necessaries supplied to him{m); and regulated, charging orders against his estate may be obtained, on judgments against the lunatic for such necessaries {n), — and even against funds which are in Court (o). But, as regards matters falling within its own exclusive juris- diction, the Court in Lunacy acts very much according to its own discretion, — ^having regard to the magnitude of the estate and to the necessities of the lunatic {p) : And, (i) Beall v. Smith, L. R. 9 Ch. App. 85. (h) In re Seager-IIutit, deceased, 190G, 2 Ch. 295. (1) Re Ray, 1896, 1 Ch. 468. (m) Rhodes^. Rhodes, 44 Ch. Div. 94. («) Re Hvnt, 1900, 2 Ch. 64, n. (o) Llewellin v. Brown, 1900, 1 Ch. 489. (p) Re Whitaker, 42 Ch. D. 119. 384 THE ORIGINALLY EXCLUSIVE JURISDICTION. Eights of his creditors, — subordinated. accordingly, the rights of the lunatic's creditors are subordinated to the needs of the lunatic, — Sdl., as re- gards all the property of the lunatic which has oome within the protection of the Court {q), and to the extent of the lunatic's interest therein (r) : And if the lunatic is a bankrupt, the title of the trustee in his bankruptcy is subject to the necessary expenses of, the lunatic's main- tenance being first duly provided for out of his pro- perty (s), — Except only as regards any portion of the property already come to the hands of the bankruptcy trustee (if). His next of kin, — pro- vision for. In the case of lunatics (equally as in the case of in- fants), the Court will (and not unfrequently does) make an allowance designed to benefit directly the near rela- tives of the lunatic, and in that way to indirectly benefit the lunatic himself (m); but the Court is very chary of increasing that allowance, — or even of making it, in the first instance (x); and as regards anything not expended at the lunatic's death, the committee is accountable (y) . And, in one case, where a lunatic advanced in years was tenant for life, with remainder in tail to his nephew, the Court directed an allowance of £500 per annum to be made to the nephew (out of the surplus income of the lunatic, after providing for the lunatic's maintenance), — but upon the terms of the nephew charging the estate with the repayment of the sums received (0) . Conversion of lunatic's estate. His repre- sentatives take the fund in the character in which it is actually found ; In the case of a lunatic, the Court will not generally alter the state of the lunatic's property, — so as to affect the rights of his representatives: But where it is for the benefit of the lunatic himself, — the interest of the lunatic being the sole object of consideration, — the Court will make the conversion ; and there not being (as between the heir and the next of kin of the lunatic) any equity for a re-conversion, they will respectively take the pro- (y) He Clarke, 1898, 1 Ch. 336. (r) JDavies v. Thomas, 1900, 2 Ch. 462. (s) Jn re Farnham, 1895, 2 Ch. 799. (t) In re Farnham, 1896, 1 Ch. 836. (u) In re Wearer, 21 Ch. Div. 616. {x) In re Darling, 39 Ch. Div. 208. [y) Strangeways v. Read, 1898, 2 Ch. 419. (z) In re Sparrow, 20 Ch. Div. 320. LUNATICS, IDIOTS, ETC. ,385 perties (to which they are respectively entitled) according to the actual character in which they find them (a) . However, where the Court itself makes the conversion, But the order the order, in general, preserves the original character of of the Court the property,— providing (e.g.) in a partition action, that ^otlclthe the proceeds of sale shall be settled to the same uses as rights of the those to which the land stood settled before the sale (6): tiPer^"*"" Also, in barring the estate tail of a lunatic, the Court will so exercise its power in that belialf , as not to affect the rights of the remaindermen (c) ; and in enfranchising the copyholds of a lunatic, the Court will not affect the beneficial rights of the customary heir (d) ; and even where chattels have been specifically bequeathed by the lunatic, and they are afterwards sold in his subsequent lunacy, the legacy will not, in the general case, be adeemed by the sale (e). But, nota bene, all these matters should be provided for at the time, and in and by the order itself, — so as not to be left to be litigated afterwards (/) . As regards lunatics not so found, — Where there are Lunatics not trusts to execute, or the fund has been paid into Court ?° *°^+-'~ ■ (Chancery Division), the Court acquires jurisdiction respect of. over the lunatic {g) ; and in the case of any such lunatic (or in the case of any one who is lawfully detained as a lunatic (A)), the Chancery Division will recognise and aflirm the position of one assuming to act as the guardian, — and will (e.g.) direct payment out to him of a fund in Allowance for Court (belonging to the lunatic), upon his undertaking maintenance to apply the income for the maintenance of the lunatic (i); and even the capital itself will (in a proper case) be directed to be so paid out and applied (k) . In a partition action also, such a lunatic may sue by his Diiections s ■■ ■ ' to, and managemei of, estate. next friend (I) : And where a lunatic not so found is the *"> ^'^^ ^ ' management (a) Pendarms v. Sarttey, 1901, 2 Ch. 498. (*) Ait. -Gen. v. Ailesbury [Marquis), 12 App. Ca. 672. (c) Ee Fox, 33 Ch. Div. 37. (d) Re Ryder, 20 Ch. Div. 514. («) In re Palmer, Thomas v. Marsh, 1911, W. N. 171. (/) In re Hole, 1905, 2 Ch. 384. (g) Re Pagani, 1892, 1 Ch. 236. (A) Re Watkins, 1896, 2 Ch. 336. (i) Re Brandon, 13 Oh. Div. 773. (i) Re Tuer, 32 Ch. Div. 39. (Z) Halfhide v. RoUnson, L. B. 9 Ch. App. 373. C 386 THE ORIGINALLY EXCLUSIVE JURISDICTION. sole surviving trustee of a settlement, the Court has juris- diction to appoint a new trustee in his place (m), — and occasionally (but not in all cases) to make a vesting order. But the jurisdiction (as to vesting orders) is now better exercised under the Lunacy Act, 1890, ss. 133 — 142; and (as regards also the beneficial properties of the lunatic) it is usually preferable to proceed before the Master in Lunacy, — Scil., under the Lunacy Act, 1890, the 116th and following sections of that Act having given many facilities (by means chiefly of a Receiver (n)) for the management of the property of this class of lunatics, including the exercise of his power to lease under the Settled Land Act, 1882 (o). But if it was desired, that a lunatic not so found should exercise (as tenant for life) the power of sale given to him by the last-mentioned Act, even the Court of Lunacy could not give its sanction to that, unless the lunatic was first found a lunatic (p) : However, he may now exercise that power of sale also (q) ; and he always could exercise the express power of sale contained in the settlement. Debts,— payment of. The creditors of a lunatic not so found cannot get paid out of his estate', to the prejudice of the lunatic himself being properly provided for; but (subject to that) they may proceed against him for his debts, — being debts for necessaries supplied to him (r) . Past main- tenance, a provable debt ; And on the lunatic's death, the guardians of the union, which was changeable for his maintenance and which has maintained him, will be entitled to prove as creditors for the cost of his maintenance, — Scil., in a creditor's action for the administration of the lunatic's estate (;s), the relief being, — usually (t), but not invariably (u), — ^limited to six years' arrears. Also, nemble, these guardians may, in (m) He M., 1899, 1 Ch. 79. {n) ReB. A. S., 1898, 2 Ch. 392. (o) He Salt, 1896, 1 Ch. 117. (;;) Se Martha Baggs, 1894, 2 Ch. 416, n. (q) 8 Edw. VII. 0. 47, s. 1. (V) Re Rhodes, 1890, 44 Ch. D. 94. (s) Me Taylor, 1901, 1 Ch. 4S0. \t) Stamford Unions. Bartlett, 1899, 1 Ch. 72. {«) Wandsworth Union v. WorJcinglon, 1906, 1 K. B. 420, LUNATICS, IDIOTS, ETC. 387 a proper case, obtain (for this purpose) a grant of administration to some nominee of their own {x) . Also, and recover- even in the lunatic's lifetime, these guardians may obtain the'^iunatic's a magistrate's order, giving them the means of enforcing lifetime, payment out of the lunatic's estate, — But not po as to interfere with the possession of any receiver in the Lunacy {y), and not so as to oust in any way the jurisdic- tion of the Court of Lunacy {z) . Also, in the case of a person detained as a criminal lunatic, the crown would iiave all the same rights as the poor law guardians, — and ■without the six years' limit (a) . (x) He Edith Mary French, 1910, P. 169. (y) Winkle v. Bailey, 1897, 1 Ch. 123. (z) In re Tye, 1900, 1 Ch. 249. ,(o) Tn re J., 1909, 1 Ch. 574. cc2 388 PART III. THE ORIGINALLY CONCURRENT JURISDICTION. Concurrent jurisdiction, - nature of ; also, growth of, inci- dentally to auxiliary ; and illustra- tion of. The originally oonourrent jurisdiction of equity was a jurisdiction in respect of legal rights, — the jurisdiction being assumed and exei-cisedj either because the remedy in equity was a mor& perfect remedy than the remedy at law (a), or because the remedy at law either never existed at all (&), or was become unavailable (c) : But, occasion- ally, the concurrent jurisdiction might arise out of the auxiliary jurisdiction, — ^an application for the cdd of equity, for the better enforcement of a legal right, some- times disposing* the Court to enforce also the legal right: For example, if the suit in equity was for an injunction^ in aid of the action of waste at law, equity (on granting the injunction) might have granted also the damages for the waste (d) : Also, where the suit in equity was for discovery, in aid of an action at law for damages, equity might have both granted the discovery and awarded also the damages: For example, in Atkinsv. Farr{e), where the defendant (who weis a gentleman of the town) had given to the plaintifi (who wa,s an orange girl at a theatre) his bond in £1,000, conditioned for the payment to her of a sum of £500 in cash, if he did not marry her within the year; and the defendant (by a subterfuge) got the bond back again from the plaintiff,— and burnt it, — In the plaintiff's suit in equity for discovery of the bond, the Court gave her that discovery, and gave her relief in damages also: and the plaintiff having meanwhile died, her mother (as her administratrix) obtained payment of the £500 with interest and costs. («) Ochsenbein v. Papelier, L. R. 8 Ch. App. 695. (4) Jenner v. Morris, 3 De G. F. & J. 45. (c) I'uUeney v. Warren, 6 Ves. 72. \d) Jesus College v. Bloom, 3 Atk. 262. («) 1 Atk. 287. 389 CHAPTEE I. ACCIDENT. " Accident " (in equity) is any unforeseen event occasion- Accident,— ing loss, and which (or the loss occasioned by it) is not of^liTeTS'u? attributable to any misconduct in the party, or to any negligence (or culpable inadvertence) on his part. For example, if an annuity (given by wHl) has been directed to be secured by the purchase of stock, — ^and an invest- ment (sufficient for the purpose) at the time has been made, but the stock is afterwards reduced by Act of Parliament, — In such a case, equity relieves the executor from all liability on that account (a), and decrees the re- siduary legatee to make up the deficiency, — Soil., where the residue is liable for the annuity (and not other- wise (&)). In some cases of accident, the Courts of law (even from Cafes for the earliest date) afforded adequate relief,— and latterly and*^equ%7 these Courts came to interpose more frequently, the Legislature having (from time to time) conferred on them the remedial powers of Courts of Equity; but the Courts of Equity did not lose their jurisdiction, by reason merely of the Courts of law acquiring it (c) . There are three groups of accidents in which equity exercises jurisdiction, namely, — (1) Lost and Destroyed Documents; (2) Imperfect Executions of Powers; and (3) Erroneous Payments. (a) Davies v. Wattier, 1 Sim. & St. 463. (5) Att.-Gen. v. Poulden, 3 Ha. 555. [e) Kemp v. Pryor, 7 Ves. 246, 250. 390 THE ORIGINALLY CONCURRENT JURISDICTION. (A) Docu- (A) Lost and Destroyed Documents. — Firstly, A» destroyed ""^ regards lost Bonds, — There was originally no remedy on (1) Bonds these at law, — without profert (or production) of the bond heing lost. in Court (and oyer of the bond), — ^although, afterwards,, a Court of law (upon allegation of the loss) dispensed with the profert (d) ; but equity alone could (formerly) have given the suitable relief, — that is to say, relief upon condition that the plaintiff should give an indemnity (2) Title-deeds against the loss. And, Secondly, As regards lost Title- hemg lost. Deeds, — The loss was not of itself a ground for coming into equity, because the law might (upon proof of the loss) have received secondary evidence of them; and to- enable any one to come into equity for relief by reason of the loss, it was therefore necessary, to allege some special inconvenience from the loss, — as (e.g.) the desire to be established in the possession (e), or the undue peril to which the loss exposed the plaintiS in the future asser- tion of his rights (/) . The relief The relief which the Court gave, in case of accidents, was adapted to the circumstances of the case : For example, in a case where leasehold property of the wife's had been settled on the husband for his life, with re- mainder to the wife (who was the defendant) for her life, with remainder (fa,iling issue of the marriage) to the plaintiff (who iwas the defendant's niece by marriage); and the husband died, and the wife survived, and there was no issue; and the wife had burned the settlement,— The Court decreed the wife to assign the property to trustees, to hold upon the still subsisting trusts of the settlement, — Scil., because the possession itself could not be given to the plaintiff, while and so long as the widow's prior life-interest continued (g) . Thirdly, As regards lost Negotiable Instruments, — If instrumeii s,— ^ ^^y^^ note, Or cheque (whether negotiable by indorse- ment and delivery, or by delivery only) was lost, no action was competent at law, either on the bill or note itself or on the consideration (h) ; and, therefore, the remedy accidents, — is adapted to the circumstances. (;3) Negotiable instruments, — (a) being lost. (d) Iteadv. Brookman, 3 T. R. 151. [e) Dalsion v. Coatsworth, 1 P. Wms. 731. (/) Dormer v. Fortescue, 3 Atk. 132. [g) Dalston y. Coatsworth^ supra. (A) Growe y. Clay, 9 Exch. 604. ACCIDENT. 391 was in equity. But, as regards bills and notes, the Bills of Exchange Act, 1882 (i), ss. 66, 70, has now provided, that where a bill is lost before it is overdue, the person who (but for the loss) would be the holder of the bill, may have from the drawer another bill of the same tenor, upon giving the usual indemnity ; and, in any action on the bill (on a sufficient indemnity being given), the loss is not to be set up. But, as regards destroyed negotiable instruments,— The accidental destruction was (b) Being never a ground for coming into equity, because the party '^^"■'""y^^- who (but for the destruction) would have been the holder of the bill, could always have sued at law on the original , consideration (fc), — In which respect, bills and notes were very different from bonds, — ^for the original consideration (for the bond) was merged in the specialty debt due on the bond, and the accidental destruction of the bond was therefore a sufficient ground for coming into equity. (B) Defective Execution of Powers. — The total non- (b) Powers,— execution of a mere power will not be aided in equity; relief where but where (either from accident or mistake) there is a execution; defective execution of the power, equity will relieve, — the relief being, however, given, only in favour of the following persons, namely: — (1) A purchaser (I), — which term includes a mortgagee and a lessee ; (2) A creditor (m) ; (3) A wife (n) ; (4) A legitimate child (o) ; and (5) A charity (p). But a defective execution will not be aided, in favour of (e.^r.) A husband (g); A natural child (r) ; A grandchild (s) ; or Eemote Relations generally, or Volunteers (i). As regards the defects which will be aided, — These raaj and the defects be said, generally, to be /my which are^ not of the very "^^^^^^ essence and substance of th& power, — a defect (e.g.) in 45 & 46 Vict. 0. 61. k) Wright v. Maidstone, 1 K. & J. 708. T) Fothergill v. Fothergill, 1 Freem. 257. in) Follard v. Greenvil, 1 Ch. Ca. 10. n) GlifforA v. Burlington, 2 Vera. 379. o) Bruce v. Bruce, L. R. 11 Bq. 371. p) Att.-Gen. v. SMhorp, 2 Russ. & My. 107. ■j) WattY. Watt, 3 Ves. 244. r) Tudor t. Anson, 2 Ves. Sr. 582. s) Watts V. Bullas, 1 P. Wras. 60. t] ChetwyndY. Morgan, 31 Ch. Div. 596. 392 THE ORIGINALLY CONCUEEENT JURISDICTION. Powers in the nature of trusts, — execution of. executing the power by will, when the execution should have been by deed (u): But, conversely, if the power was to be executed by will only, and it was executed by deed, no relief would have been granted (x) : Nor would equity have aided, where the power was executed without the consent of the persons required to consent to its execu- tion (t/). It is necessary to distinguish, of course, between mere powers and powers in the nature of trusts, — powers in the nature of trusts being as obligatory upon the con- science as actual trusts themselves: That is to say. If a man is invested with a trust, to be ejfected by tJie. execution of a power, his execution of the power is im- perative; and if he refuse to execute it (or die without having executed it), equity interposes to give the suitable relief (2) . (0) Accidents in payments by executors or adminis- trators, — relief, in cases of. (C) Erroneous Payments. — In the course of the ad- ministration of estates, executors and administrators often pay debts and legacies, upon a well-founded belief, that the assets are sufficient for all purposes; but afterwards (from unexpected occurrences, or from unsuspected debts and claims coming to light), there proves to be an in- sufficiency of assets to pay the debts, — much less, the legacies: Now, in such a case, the executors were entitled to no relief at law; but if they had acted in good faith and with due caution, they were entitled to be relieved in equity: For example, if the goods of the testator had been stolen, the executor would not in equity have been charged with these (a) ; and if goods of a perishable nature had depreciated without any default in the execu- tor, he was not in equity required to answer their original value (6); and that is the view which is now accepted in Courts of law also, regarding the executor's posi- tion (c) . But the executor would not have been per- Tolleit V. Tollett, 2 P. Wms. 489. x) AAne]) V. Fieldy Amb. 654. y) Mansell t. Mansell, 2 Bro. C. C. 450. z) Broun v. Biggs, 8 Ves. 674. a) Jones v. Lewis, 2 Ves. Sr. 240. t) Clough V. Bond, 3 My. & Cr. 496. [c) Job V. Job, 6 Ch. Div. 562. ACCIDENT. 393 mitted to call that an accident, which was attributable to some neglect on his part, — or which was a mistake of law on his part: For example, if an executor distributes the residuary estate on a wrong principle of law, he will be answerable (although his mistake is one purely of law(, The misrepresentation must be of a material fact, — Fact must be Fraus dans locum contradui, — That is to say, it must be ™atenai; the misrepresentation of some fact which gives occasion to the contract; and a mere intention will sometimes amount to a material fact within the meaning of this rule(/). Also, the misrepresentation must, usually, be of something in regard to which the one party places con- fidence in the other, — as where the vendor has done some- thing which leads the purchaser to abstain from pro- perly inquiring for himself (g) . But mere puffing will not, usually, amount to a fraud, — Simplex commendatio non obligat ; and in a matter of mere opinion, each party must be taken to have relied on his own judgment {h). Also, if the party to whom the misrepresentation is made *"'^ muBt have is not misled by it, — or knows it to be false, — or assumes to inquire (and also inquires for himself (i)), — there is no fraud. If the misrepresentation is merely ^'ambiguous" the party complaining of it as a fraud must show the sense in which he understood it {h) ; but, under the Companies Act, 1908 (I), s. 215, re-enacting or continuing the like provisions of the Directors' Liability Act, 1890 (m), and the Companies Acts, 1900 and 1907 (w), as regards any apparent misrepresentation (in prospectuses and the like), the prima facie presumption is against the directors, and the onus is therefore on them to justify the statements contained therein. Generally, in respect of misrepresentations made by the Misrepresen- directors of companies, — The company is responsible for ^°t^rs* the damage to the extent of the profits it has made thereby ; and otherwise the remedy is against the direc- tors personally (o) . Also, tlie directors are jointly and (/) JEdgington v. Fitzmaurice, 29 Ch. Div. 459. [g) Denny v. Ifaneoek, L. E,. 6 Ch. App. 1. (A) SmU\ V. Land and Souse, 28 Ch. Div, 7. (i) Attwood V. Small, 6 CI. & P. 232. {k) Smith V. Ohadwick, 9 App. Ca. 187. (l) 8 Edw. VII. c. 69. (m) 53 & 54 Viot. o. 64, 8. 3. («) 63 & 64 Viot. c. 48, 8. 10 ; 7 Edw. VII. o. 50, s. 1. (o) Barwifik v. English Joint Stock Bank, L. K. 2 Exch. 259. 408 THE ORIGINALLY CONCURRENT JURISDICTION. severally liable; and the action may, therefore, be brought against one or more of them alone, without the other or others (p) : But where and so far as the action is for a tort, no action lies against the executor of a deceased fraudulent director, — unless to the extent (if any) that his estate has profited by the fraud (g) : However, where the proceedings against the directors were under the Directors' Liability Act, 1890, the liability was for com- pensation (r), — with a right (in the directors) to contri- bution inter se (s), — and so, now, under the Companies Act, 1908, s. 84. But apart from the specific provisions of the Companies Acts (1862 — 1907), a director was not liable (Sdl., in an action of "deceit"), unless he had been guilty of " fraud" (t): That is to say, "negligence" alone (how much soever culpable) did not suffice {u) . Remedy, Where a contract has been induced by a material mis- ^^^'^semtation ^representation, the fraudulent oontractor is compellable can be made to make it good, if it Can be made good; and otherwise 69°^'":?''"^ the other contracting party may avoid the contract {x) : cannot. Also, no One can keep a profit obtained by the fraud of Innocent liene- another, unless he himself is free from the fraud and has fioian^Sj— may gjyg^ valuable consideration, — That is to say, the fraud benefits mider vitiates the deed in toto, — so that the beneficiaries en- «ie fraudulent (;i(;]^ed under it lose, — in general (y), but not invari- ably (2), — their beneficial interests, even where they are themselves wholly innocent of the fraud: In other words, B., although innocent of the fraud of A., cannot (in general) retain any benefit under a deed which has been procured by the fraud of A. (a), — 8cil., unless B. is a purchaser for value: Also, the doctrine of " the, estate feeding the estoppel," is inapplicable to a case, where the estate is procured through a fraud (5). (p) Parker v. Lewis, L. E.. 8 Ch. App. 1035. (q) Peek Y. Gurneij, L. R. 6 H. L 377. [r) Thomson v. Lord Clanmorris, 1900, 1 Ch. 718. (s) Gerson v. Simpson, 1903, 2 K. B. 197. [t) Angus v. Clfford, 1891, 2 Ch. 449. (u\ Berry v. Peek, 14 App. Ca. 337. {x) Newhigging Y. Adam, 13 App. Ca. 308. \y) Bennet v. Wade, 1 Dick. 84. (z) Barrow v. Barrow, 1 Dlok. 604. (a) Htiguenin v. Baseley, 14 Ves. 273. (4) Heath v. Orealock, L. B. 10 Ch. App. 22. ACTUAL FRAUD. 409 If a party who has been defrauded, after having full Fraud,— knowledge of the fraud, continues to deal with the party affirmance of. who has defrauded him, he will be taken to have released the fraud (c), — Scil., unless where the fraud happens to be a continuing fraud (d) : And if (having the means of knowledge) he compromises the matter, there again he is taken to have released the fraud (e), — Because, generally, in the case of every civil fraud, you may (at your option) either affirm the fraud (/), or disaffirm it (g), — and if you choose to affirm the fraud, the fraud is " purged" {h). And here it is to be noticed, that if a company (or, in Damages fact, anyone) purchases property through an agent to rescission,.-^ make the purchase, — and the agent buys at one price for following on himself, and then sells at a higher price to his principal dece^^^ (whether company or individual), — The principal (affirm- ing the purchase) may not only keep the property pur- chased, but also recover from the agent the difference between the two prices (i) : Secus, if the agent was not, in fact, the agent (k) : And it is to be further remembered here, that the action of "demit" for damages leaves the fraud unaffirmed, — So that the plaintiff may (after re- covering damages for the " deceit ") commence a further action for "rescission"; and in such further action, he recovers back his deposit (or other money paid), and gets also an indemnity and his costs (Z). (2) Concealment (otherwise called Suppressio Veri), (-S) Cmceai- is the suppression or withholding of some material fact, "^ ' bedng some fact which the oris party was under a legal duty to the other to disclose (m), — So that, where there is no such duty, the mere concealment is not a fraud (w): And, as between vendors and purchasers, whether of real estate or of personal estate, the purchaser is (in general) (c) Mitchell v. Bomfray, 8 Q. B. D. 587. [d] Moxon V. Payne, L. E. 8 Oh. App. 881. («) Law V. Laiv, 1905, 1 Oh. 140. (/) Hemmings v. Sceptre Life Lnmranee, 1905, 1 Oh. 365. \g) In re Eastgate, 1905, 1 K. B. 465. \h) Urmes v. SeaSel, 2 De G. F. & J. 333. (i) BagnallY. Carlton, 6 Ch. D. 371. {k) BurlandY. Earle, 1902, A. C. 83. (r^.Rawlim y. Wichham, 3 De G-. & J. 304. \m) Turner v. Green, 1895. 2 Ch. 206. (ff) Keates v. Cadogan, 10 0. B. 591. 410 THE ORIGINALLY CONCURKENT JURISDICTION. Duty of pur- chaser, on a Bale by the Court, upon his under- taking to give the Court infonuatiou. "Hustling," —effect of. As to intrinsic defect in per- sonal chattels, caveat emptor. Silence some- times tanta- mount to direct affirma- tion. under no legal duty to the vendor (o) : But the vendor is under a legal duty to him, — and, therefore, if he should sell an estate, knowing that there were incumbrances (p) or party-wall or easements (q) on it of which the purchaser was ignorant, the suppression would avoid the sale (p) . And the purchaser also, — but under exceptional circum- stances only, — may come under the duty of making full disclosure, — For example, where a property is being sold under the direction of the Court, and the purchaser lays information before the Court on any particular point (in order to procure the sanction of the Court to the sale), he must lay before the Court all the information he pos- sesses (that is material on that particular point), in order to enable the Court to form a correct opinion (r). Also, if the purchaser should " hustle " a vendor (or a lessor), into a Siale (or into a lease) of the property, that will avoid the sale (or lease (s)). Usually, however, in a sale of personal chattels, the maxim caveat emptor is applic- able, — So that neither the purchaser nor the vendor will be under any duty of disclosure to the other, — or liable for concealment {Nam qui tacet, non videtur affirmare), — Upon the supposition always (as regards the vendor), that he has not made any representation- which averts inquiry (t), — ^or been guilty of (what has sometimes been called) "aggressive eonoealment" or "industrious con- cealment" (u). Occasionally, also, the silence of the party is deemed equivalent to his direct affirmation, — For example, in the case of an insurance, the insured is bound to communicate to the insurer all the facts and circumstances (material to the risk) that are within his knowledge; and if these aire withheld (whether the concealment be by design or by accident), it is equally a fraud, and fatal to the con- tract (a;) : And as regards life assurances in particular, matters of opinion even, — as to (e.g.) whether the intend- (o) Fox V. Maekreth, 2 Bro. C C. 420. [p) Edwards v. M'Leay, 2 Swanst. 287. \q) Carlish v. Salt, 1906, 1 Ch. 335. (r) Boswell-v. Coalcs, 11 App. Ca. 232. (s) Walters v. Morgan, 3 De G. F. & J. 718. [t) Porter v. Uoore, 1904, 2 Ch. 367. (k) Edwards- Moss v. Marjoribanks, 7 H. L. Ca. 806. \x) London Assurance Co. v. Mansel, 11 Ch. Div. 363. ACTUAL FRAUD . 411 ing assured is of temperate habits, — are really matters of fact («/), — and are material (z) ; and if you have given your opinion in favour of the assured, and afterwards (aJid before the assurance is effected) you find that you were wrong in your opinion, you must (semble) say so (a). Upon a sale of real estate, any mere inadequacy in the Inadequaojof price or consideration is not per se a fraud in equity,— !2^henitwSi Scil., because every one is entitled to dispose of his pro- and when it perty at whatever price (and upon whatever terms) he TcoiSract!™^ chooses (&), — and the value of a thing is what it will produce, and one man may sell for less and another for more, and the sole inducement to the purchaser may have been the lowness of the price (c) ; and even when the sale is by the tenant for life under the Settled Land Act, 1882, and the sale is at an under-value, the purchaser will (in the general case) be protected (d) . There may, however, be such inadequacy in the price, as to demonstrate per se some gross imposition: And even where the inadequacy is not of that shocking character, if there are other circumstances of a suspicious nature, the inadequacy is a strong element (and evidence) of fraud (e), — unless and until the circumstances are ex- plained away, consistently with honesty and fairness : But an apparent gross inadequacy may not be a real inade- quacy, when everything is known (/), — as where (e.g.) the apparent inadequacy has resulted from a sudden increase of value in the land arising from adventitious circumstances (g) . A fraudulent contract being, in general, valid until Fraudulent repudiated, the repudiation may become impossible, — as whereresds- siou impos- sible, effect. (y) Thomson v. Weems, 9 App. Oa. 671. (s) JoeVs ease, 1908, 2 K. B. 863. («) Dmies t. London Insurance, 8 Ch. D. 469. (4) In re Wragg, 1897, 1 Ch. 796. («) Griffith V. Spratley, 1 Cox, 383. [d) ffurrellv. LittUjohn, 1904, 1 Ch. 689. (e) Rees v. De Bernardy, 1896, 2 Ch. 437. (/) Harrison ^r. Guest, 6 De G. M. & G. 424. {g) Edwards v. Meyrick, 2 Ha. 60. 412 THE OKIGINALLt CONCURRENT JURISDICTION. Circumstances under wliich rescission impossible. where {e.g.) the parties cannot be restored to their .original status quo (h), — or where the rights of third parties have intervened: And, for example, a fraudulent contract to take shares in a company cannot (as against the creditors of the company) be rescinded, after the commencement of the winding up (^), — 8cil., after the presentation of the petition on which the winding up order is made (k) : But a de facto removal of the shareholder's name from the register, or even the commencement of an action for its removal, — if only it be in time, — is a sufficient repudia- tion of the contract; and any mere delay in asserting the right to relief, if it is excusable and excused, — or if it has done no harm in the meantime, — will not be con- sidered an abandonment of the right of the shareholder to have his name removed. No rescission against in- nocent third parties. Contracts for shares, although fraudulent, may not be voidable even : For example, if A. (by fraud) induces B. to buy A.'s shares, and the company is not implicated in A.'s fraud, the contract will hold good as between B. and the company, — B.'s remedy (in such a case) being against A. only, for a re-transfer of the shares and for an in- demnity : But if the company is at all implicated (directly or indirectly) in the fraud of A., the contract will be voidable even as against the company (l). Also, the con- tract, even after it has been completely executed, may be rescinded, but only on the ground of fraud (m), — the fraud being (in this case) personal fraud (n) . Fraudulent contract, — usually valid, until aroided. When it is said that a contract voidable for fraud is "valid until repudiated," that is a very diSerent thing from saying that the contract is "void until con- firmed" (o), — which is why some proceeding is neces- sary (before the winding-up) to avoid the contract for (A) Lagunas Nitrate v. Lagunas Syndicate, 1899, 2 Oh. 392. (i) Spackman v. Evans, L. R. 3 H. L. 171. \k) Whiteley's case, 1899, 1 Ch. 770. (1) Lynde'a case, 1896, 1 Ch. 178. (ot) May V. Piatt, 1900, 1 Ch. 616. («) Seddon v. Salt Co., 1905, 1 Ch. 326. (o) Oaket v. Turquand, L. K. 2 H. L. 325. ACTUAL FRAUD. 413 shares (■p), — and, in the meantime (and before the winding-up), you may (on account of the fraud) defend an action for calls on the shares (g), — which if you do, you ^ have done enough by way of repudiation: There are certain frauds in relation to companies which, Frauds which 111 (.1-1 'n are SO Dy force whether they are frauds in themselves or not, are specihc of statute; frauds by statute: And, Firstly, under s. 210 of the Com- (i) Fraudulent panics Act, 1908,— formerly s. 164 of the Companies Act, v^^^^^^^"^- 1862, any conveyance, mortgage, &c., which (in the case of an individual trader) would be a fraudulent preference on his bankruptcy, is a fraudulent preference on the winding up of the company, — and may be set aside accord- ingly (r). Secondly, under the 38th section of the Com- (2) Non-dis- panies Act, 1867, the non-disclosure of contracts between gg^^^ctsi* the promoters of a projected company and the persons con- tracting with them, if the contracts were of a kind to influence (s) (and did in fact influence (t)) the prospective shareholders, rendered the prospectus fraudulent (u) ; as did also any purported disclosure of such contracts, which was a mere mockery and insufficient (u) . Moreover, a prospectus which was otherwise fraudulent was not good, merely because it disclosed all such contracts (x) : And a (3) Waiver waiver clause in the prospectus was not, of necessity, "louses, binding («/), although it might have been so; but under the Companies Act, 1900 (0), by s. 10, sub-s. 6, such a waiver clause was rendered absolutely void in all cases. And now, under the Companies Act, 1908, by s. 81, sub-s. 4, as regards prospectuses and the contents thereof, — and by s. 85, sub-s. 5, as regards the allotment of shares and the conditions preliminary thereto, — any waiver clause is simply void; and by s. 81, all material contracts are to be specified in the prospectus, — excepting contracts (p) Reese Miver v. Smithy L. R. 4 H. L. 64, (q) Venezuela S. C. v. Kiseh, L. E. 2 H. L. 99. [r) Willmott v. London Celluloid Co., 34 Ch. Div. 147. (s) Broome t. Speak, 1904, A. C. 342. (/) Nash V. Calthorpe, 1905, 2 Ch. 237. (u) Andrews V. Mockford, 1896, 1 Q. B. 372. (v) Gluckstein v. Barnes, 1900, A. C. 240. {x) Aaro-n's Reefs v. Ta:iss, 1896, A. C. 273. {y) Cackett v. Keswick, 1902, 2 Ch. 456. (a) 63 & 64 Vict. c. 48. 414 THE ORIGINALLY CONCUEEENT JURISDICTION. entered into more than two years before, or entered into in the ordinary conduct of the business of the company; and by s. 88, where any shares are allotted as fully or partly paid up, and the consideration is not cash (pure and simple), the contract (or some memorandum of it) is to be filed with the Eegistrar of Companies, — under a penalty of (not exceeding) £50 a day for every day the filing is not made. (4) Capital, misapplica- tion of. (5) One-man company frauds. Thirdly, making payments out of capital, which ought to be paid (if paid at all) out of profits only, is a fraud in the nature of a misfeasance by the directors and other officials of the company, for which they are answerable to the shareholders (a) — unless the payment is justified under s. 91 of the Act of 1908 (or formerly, under s. 9 of the Act of 1907): Also, although you may lawfully apply a portion of the capital in the payment of interest on pre- paid shares (b), yet you cannot (in the case of companies registered under the Companies Acts) issue shares at a discount (even as between the shareholders themselves (o)), — and you cannot, in fact, either decrease or increase the liability on the shares (d) : But you may issue the shares at a premium, — and you may issue bonds or debentures either at a discount or at par or at a premium, — ^provided, of course, you are doing so bond fide{e). And a com- pany may not buy its own shares (/), — although it may now re-issue its redeemed debenture stock (g) . And, nota bene, a company, which was otherwise duly constituted under the Companies Acts, was not a fraudulent company merely because it was (in effect) a one-man company {h): but, in such a case, the assignment to the company might occasionally have been set aside as a fraud on the creditors of the man who created the company {i) ; and the Court (a) Barrow Hematite case, 1902, 1 Ch. 353. {b) Lock V. Queensland Investm.ent Co., 1896, A. C. 461. (e) Welton v. Sa,fery, 1897,, A. C. 299. [d) Bisgoody. Senderson's Transvaal, 1908, 1 Ch. 743. \e) Moselsy v. Kofft/fontein Mines, 1904, 2 Ch. 108. (/) Trevor Y. Whitworth, 12 App. Ca. 409. [g) Companies Act, 1908, s. 104 (formerly Act, 1907, o. 25). (A) Salomon v. Salomon ^ Co., 1897, A. C. 22. (i) InreEirth, 1899, 1 Q. B. 612. ACTUAL FRAUD. 415 was latterly greatly disposed to find some way of invali- dating certain debenture issues, which operated to the grave prejudice of the unsecured creditors (k) . As regards frauds upon the shareholders of a company (6) Minority generally, — The rule is, that the internal management (or ^aiori^of '^ mismanagement) of the company must, as a general rule, shareholders, be left to the directors, — and the Court is not in the habit r^°^ ?® "?' „ . f. • • 1 1 /T\ m •! 1 1 ^^i^* advantage 01 interfering with that (i), — SciL, because the company of the itself (that is to say, the shareholders) may always, in majonty. general meeting, control the management (or correct the mismanagement) of the directors : But still, if a majority of the shareholders are in league with the directors, and are unfairly overruling the minority, — and especially if the majority are (in effect) pocketing aU the divisible profits in exclusion of the minority, or are otherwise denying to the minority the exercise of their just rights, — the Court will interfere at the suit of the minority (to) . Besides the frauds hitherto considered, there are cer- (C) Frauds on tain frauds (so-called) which are only frauds by reference ■^'»*«"^«». *"• to the incapacity or imbecility of the defrauded party: Thus,— Firstly, The contract of a person non compos mentis Q-) Lunacy, will, usually, be set aside in a Court of Equity, — although, where it is for the benefit of the non compos (or is for necessaries supplied to him (w), or is an ordinary trade contract (o)), it will be good enough, — Because, generally, if a purchase is made in good faith, without any know- ledge of the incapacity (and no advantage has been taken of the non compos {p)), the Court will (wherever it can) uphold the transaction, — to the extent, at all events, of the benefit accrued to the lunatic {q) . Secondly, as regards the contracts of a drunkard, — To set aside his contract, it is not sufficient, that the (2) Drunken- ness. (i) In re Jachaon and Bassford, 1906, 2 Oh. 467„ (I) Fans V. Sarbottle, 2 Ha. 461. (m) Menier's case, L. K. 9 Ch. App. 350, («) Molton V. C'amroux, 4 Exnh. 17. (o) Mell V. Morley, 9 Ves. 478. {p) Imperial loan Co. v. Stone, 1892, 1 Q. B. 599. (g) Molyneux's ease, 1905, A. C. 555. 416 THE ORIGINALLY CONCURRENT JURISDICTION. (3) General imbecility. (,i) Undue influence (on testators). (5) Duress, and extreme necessity. (6) Infancy. (a) Contracts for necessaries. (b) Other personal contracts. (aa) Old law; party was under excitement or lethargy from liquor (r); but if there was any contrivance to draw him into drink, — and so take advantage of him, the Court would relieve, — That is to say, equity will not, in general, lend its assistance to the purchaser, — nor yet assist the drunken man, — but will leave each to his ordinary legal remedy, — excepting always where some imposition has been practised. Thirdly, as regards a person, who (without being non compos) is of such weakness of mind as to be unable to guard himself against imposition, — If the circumstances justify the conclusion, that the party has been imposed on, the transaction will be avoided in equity, — the burden of proof being on the other party to show, that no unfair advantage was taken of the weakness (s) : And the like rules are applicable as regards wills obtained by the exer- cise of undue influence upon testators; but it must (in such cases) be shown, that the volition of the testator was repressed, — So as that what he did, he did not desire to do; and the mere fact, that (in making his will) he was influenced by {e.g.) immoral (^) or irreligious (m) con- siderations, does not, of itself, amount to undue influence. Fourthly, where a person of competent understanding is under duress when he makes the contract, — or is in extreme terror {x) or mental anguish (y) at the time, — equity will protect him. As regards the Contracts of Infants, — These demand a more particular treatment; And, firstly, infants are permitted by the law to bind thems^elves by their con- tracts for necessaries (z), — and by their contracts of hir- ing and service, and generally by acts which the law requires them to do, — excepting that they are not bound by any contracts which are manifestly to their disad- vantage. There used also, formerly, to be this great dis- tinction between the contracts of infants and the contracts of lunatics, namely, — The contract of a lunatic was (and if) Villers v. Beaumont, 1 Vem. 100. (») Longmate t. Ledger, 2 GiflE. 164. (t) Wtngrove V. Wingrove, 11 Pro. Div. 81. (m) Morley v. Zoughiian, 1893, 1 Ch. 736. {x) Sawes v. TVyatt, 3 Bro. C. C. 158. (V) Williams v. Bayley, L. R. 10 H. L. 200. i%) Barnes v. Toye, 13 Q. B. D. 410. ACTUAL FEAUD. ' 417 is) ab initio void, and can never be validated in any mode, — Scil., if the other contracting party has known of the lunacy at the date of making the contract; but the con- tracts of an infant, unless where they were manifestly to his disadvantage, were merely voidable, — So that it used to be in the power of the infant to confirm them, when he arrived at full age, and within a reasonable time thereafter (a) . But, now, under the Infants' Eelief Act, (bb) New law. 1874 (6), all the personal contracts (and not merely the money-lending and money-raising contracts) of the infant are made utterly void (c), — and are therefore no longer confirmable ; and the infant cannot b© made a judg- ment debtor in respect thereof (2 THE ORIGINALLY CONCUEIIENT JURISDICTION. «Mid to^ *'°™ ^^^^' ^^ these contracts are not entered into with scrupu- parent,— void, lous good faith, they will be set aside; and, for example, ^CT^'t" d where a female child, shortly after attaining her majority, faith. made over property to her father without consideration,, the father was required to show, that the child (in the matter of the gift or conveyance) was a free agent and had independent advice (fe) : And the like rule was supposed to be applicable also to gifts made by a wife under the pressure of her husband (c) ; but it is now doubtful, if that is so (d) : And in all this class of cases, the relief asked for must be asked for within a reasonable time, any delay being (usually) fatal (e) . And although the rule is, in general, inapplicable to the re-settlements which, on the eldest son's attaining his age of twenty-one years, are made of the family estates (/), — yet, even in the case of these re-settle- ments, it is a fraud, if the father gets a disproportionate advantage by them (g) . And as regards a husband who (in effect) deprives his wife of all her property, — by getting it charged with moneys advanced to a rotten business in which he is interested, — there is no doubt, that the charge is void by reason of the undue influence of the husband on the wife Ch) . ■■ii) Guardian and ward, — gift by ward -soon after the termination of guardianship, viewed with suspicion ; "Gift upheld, 'when influence iand legal authority -have ceased. '(3) Quasi ;guardians. Equity will not uphold transactions between guardians and wards, even when entered into after the wardship has ceased, if the intermediate period has been short (^), — Soil., unless the circumstances demonstrate the most abun- dant good faith on the part of the guardian (/c) ; but where the influence of the guardian has ceased, and there has been a settlement of the accounts, equity will not set aside a reasonable gift made by the ward to his or her guardian (l) : And the like principles apply also, — usually, but not in- variably, — to persons standing in the situation of quasi (J) Bainiriggey. Browne, 18 Ch. Div. 188. {c) Turnbull v. Duval, 1902, A. C. 429. (d) HowesT. Bishop, 1909, 2 K. B. 390. {e) Turner v. Collins, L. R. 7 Ch. App. 329. (/) Eoblyn V. Soblyn, 41 Ch. D. 200. ((/) Hoghton v. Hoghton, 15 Beav. 278. (h) Bank of Montreal v. Stuart, 1911, A. C. 120, citing Nedhj v. Xidbiu 5 De a. & S. 377. (i) Fierse v. Waring, 1 P. Wma. 121. {!e) Wright v. Vanderplank, 2 K. & J. 1. (?) Satch V. Eatch, 9 Ves. 297. CONSTRUCTIVE FRAUD., "123 guardians, — as medical advisers (m), " spooks " (w), minis- ters of religion (whether priests (o) or preachers (p)), managers {q), and the like. But, if the donor (after the eonfidential relation has ceased) elects to "abide hy the gift," that would be a confirmation of the gift, — So that the legal personal representatives of the donor could not . thereafter set aside the gift (r) : Nor could any beneficiary do so, who claimed through or under the donor (s) : But it would be otherwise, if the donor (in his lifetime) had commenced proceedings for the purpose (t). And, as regards (in particular) the relation of Solicitor (4) Solicitor and Client, — It appears, that a solicitor cannot sustain a a^dohent. GIFT from his client, — for, although a solicitor may Pur- client to'soU- CHASE from his client (subject always to satisfying the cjtor, pending Court of the propriety of the purchase), a far stricter law cannot stand, is applicable to Gifts (u), — such a gift being simply void; and it is not confirmable, nor made good by any lapse of time (x) : However, a gift can validly enough be made by the client to his solicitor by will; and a gift made inter vivos may be confirmed by the will (y) . And the dis- tinction aforesaid between a gift by deed and a gift by will rests upon the circumstance, that the influence of the solicitor is supposed to be continuing wlicre the gift is inter vivos, but not where the gift is on death (z) . Also, gener- ally, a solicitor shall not in any way whatever, — either per- sonally or through his wife (a) or through his son (b), — make any gain to himself at the expense of his client (c), — beyond, of course, the just and fair remuneration for his services: {m) Dent v. Bennett, i My. & Cr. 269. (n) Lyon v. Some, L. R. 6 Eq. 6.55. (o) Suguenin v. Baseley, 14 Ves. 273. (p) Norton v. Bell, 2 Eden. 286. (}) Coomberv. Coomber, 1911, 1 Ch. 174, 322. (V) Mitchell V. Homfray, 8 Q. B. D. 537. (s) Skottowe V. Williatns, 3 De G-. E. & J. 535 ; and Coomber v. Coomber, supra. (i) Phillipson v. Kerry, 32 Beav. 628. (u) Tomson v. Judge, 3 Drew. 306. \x) Nutt T. Baston, 1899, 1 Ch. 873. (V) Sindson v. Weatheriil, a De G-. M. & G. 301. (z) Rhodes v. Bate, L. R. 1 Ch. App. 252. , (a) Liles v. Terry. 1895, 2 Q. B. 679. (S) Barron^. Willis, 1902, A. C. 271. (e) Tyrrell t. Bank of London, 10 H. L. Caa. 26. 424 THE ORIGINALLY CONCURRENT JURISDICTION. Solicitor, his And as regards what shall be the i ust and fair remunera- professional j.- r. i- •, '' remuneration. tlOn 01 a SOlLCltor, — Firstly, if the solicitor is also a trustee, and the business has been transacted in connection with the trust estate,* it has been shown (on pp. 107 and 108, supra), that he is • not entitled to charge in respect of that, — although, if he is a mortgagee, he may now (by express statutory pro- vision) make all the usual charges of a mortgagee. But Secondly, if he is merely a solicitor (and neither a trustee nor a mortgagee), the rules applicable to his re- muneration (for professional services) may be stated as follows : — (1) An agreement between a solicitor and his client, that a gross sum shall be paid for past costs, is valid, provided the agreement be in writing (d) ; but it behoves the solicitor to use great caution, and to preserve sufficient evidence that the transaction was a fair one, and that the client was not under the influence of the solicitor (e): And (2) An agreement by a solicitor, to receive a fixed sum by way of costs for future business, — although it was for- merly invalid and would have been set aside even after payment (/), — will now, under the 33 & 34 Vict. c. 28, s. 4 (as regards contentious business), and under the 44 & 45 Vict. c. 44, s. 8 (as regards non-oontentious business), be good and valid, provided again it be in writing {g) . But (3) Every such contract is subject to taxation as a bill of oosts, — and may (if improper) be get aside (h): Also, in every ease, the amount payable under the agreement must have regard to the work done (i) ; and the solicitor must not (by the agreement) place himsslf in any posi- tion in which his duty and his interest conflict (Jc). And here note, that (excepting by agreement) a soli- citor must see a matter through, before asking for his [d] III reSussell, 30 Ch. Div. 114. (c) Morgan v. Biggins, 1 Giff. 277. (/) In re Newman, 30 Beav. 196. \g) Bake v. French (No. 2), 1907, 2 Ch. 215. (h) In re Frape, 1893, 2 Ch. 284. (s) Ex parte Calhcart, 1893, 2 Q. B. 201. \k) In re Haslam and Hier-Fvans, 1902, 1 Ch. 765. CONSTRUCTIVE FRAUD. 425 remuneration (?), — but the exceptional circumstances of the case might make a difference in that, — especially in long -protracted Chancery proceedings. As regards the relation of trustee and cestui one trust, (5) Trustee J. , °. . , , , ; 1 ,1 • 1-11 and cestm one — A trustee is bound not to do anything which places trust. him in a position inconsistent with the interests of the trust, or which has a tendency to interfere with his own duty in discharging the trust: Therefore a "purchase" by the trustee from his cestui que trust (although at an adequate price) may be set aside at the option of the cestui que trust, — For, as observed by Lord Eldon (m), — and also by Lord Cottenham (n), — though you may see in a particular case that the trustee has not taken any advantage, it is utterly impossible (in ninety-nine cases-- out of a hundred) to see whether he has done so or not, — So that even when the cestui que trust demonstrably in- tended the trustee to purchase, the purchase is regarded "with infinite jealousy " (o). Also, a trustee is never permitted to accept of a Gift from his cestui que trust, except under circumstances which would make the gift valid in a case of guardianship: That is to say, the re- lation must have ceased (and the influence arising from that relation must also have ceased), in order to the validity of the gift. And all the same (or the like) principles are applicable (6) -Piincipal to the relation of principal and agent, — So that, agents may not become either the secret vendors or the secret purchasers of the property which they are entrusted with on behalf of their principals {p); nor can they, in fact, deal at all with their principals, ivithout a full dis- closwe(q): If, therefore, an agent, employed to pur- chase, purchase for himself, he will be held a trustee for his principal (r), — and will not be permitted to make a profit out of the transaction (s), — not even, semble, when (1) Whitehead V. Lord, 7 Exch. 691. (m) Ex parte James, S Ves. 337. («) In re BUye's Trust, 1 Mac. & a. 481. (o) Coles V. Treeothick, 9 Ves. 234. {p) aiarterv. Trei-elyan, 11 0. & F. 714. (?) De Bussche v. Alt, 8 Ch. Div. 286. ()•) lees V. Nuttall, 1 Russ. & My. 53. («) Grant v. Gold Exploration, 1900, 1 Q. B. 233. 426 THE OEIGINALLY CONCTJRKENT JUEISDICTION . (7) Counsel, he is ii broker (i): Similarly, counsel (m), assignees of, &c?*andTh'eir bankrupts' estates (cc), auctioneers {y), and the like. But clients. a broker is not, semble, within these rules {z) . III. Construc- tive frauds, as teing injurious to the rights of third parties. (1) Common sailors, — con- tracts hy. (2) _ ■with heirs and expectants. ('2a) Uncon- scionable loans,^ — generally. III. Constructive Frauds, Because Prejudicial gene- rally to the Private Rights and Interests of Third Per- sons. — The improvident contracts of common sailors are an example of these; and relief will, generally, be given, whenever any inequality appears in the bargain, or any undue advantage appears to have been taken (a). Also, bargains with heirs, reversioners, legatees, and expectants, during the lives of their ancestors or testators (or while their enjoyment of the property is otherwise deferred), will bo relieved against, — unless the purchaser can show that a fair price was paid (6); and from the mere in- adequacy of the price, fraud will be presumed (e) ; and the onus, therefore, is o,n the purchaser to show, that the transaction is a reasonable one: But a "fair" price is not required to be a "full" price (l. (i) LitchfieU v. Dreyfus. 1906, 1 K. B. 584. \k) Dotfscase, 1906, 1 Ch. 740. (<) Chapman V. Miehaelsm, 1909, 1 Ch. 238. (m) Lodge's case, 1907, 1 Ch. 300. («) Samuel y. Newbold, 1906, A. C. 461. (o) Wilton V. Osborne, 1901, 2 K. B. 110. Ip) Gadd's case, 1909, 2 K. B. 353. {q) Jackson's case, 1910, 1 K. B. 143, iollo-wmg Zevine's case, 1909, 25 T. 1,. K. 711. (r) Stirling v. Silburn, 1910, 1 K. B. 67 ; Sadler v. Cobb ^ Co., 1910, 1 K. B. 868 ; and Whiteman t. Sadler, 1910, A. C. 514. (s) Trye's case, supra. {t) 1 Atk. 352. 428 THE OEIGINALLY CONCURRENT JURISDICTION. ments in 1745 and 1746, — Because, generally, post obit agreements (when not unconscionable) are good, — SciL, for the sum (with interest thereon) to which ex cequo et (4) Tradesmen hono the lender is entitled. Also, where tradesmen have at^e™teava'ant ^'^^^ goods (to expectants) at extravagant prices, equity prices. Only cuts down the claim to the reasonable and just amount (u) ; and where (after the pressure of the necessity • has ceased) the party deliberately adopts the contract, it is binding (v). (5) Knowingly Where an estate is being offered for sale, and the true producmga owner stands by and encourages the sale, — producing sion to mislead thereby the false impression that the purporting seller a third party, fg tt^g ownor of the estate, — the true owner will be bound by the sale (x); and the same rule is applicable also to the sale of personal chattels (y). Also, where executors put it in the power of a broker to misapply securities to bearer, they will be estopped from disputing the broker's authority to deal with the securities {z) : And where the directors of a company (the company having no power to accept bills) accept a bill, and purport to do so on behalf of the company, they are personally liable on the bill, — Soil., because, by their acceptance, they represent, that the company has authority to do so (a) : Also, the company itself will be estopped from saying, that any particular shares are not fully paid up, where it has issued certificates to the effect that the shares are fully paid up (6), — or has (by certification) formally certified to that effect (c) ; and the like estoppel will arise, as regards the bonds or debentures of the company (d) . Also, com- panies may be estopped by mere negligence, — for ex- ample, by parting with the share certificates after certi- fication (e), or by registering a transfer of the shares without production of the share certificate (/) ; but these (m) Kinff v. Samlet, 3 01. & F. 218. (v) Jacques-Oartier v. Montreal City Bank, 13 App. Ca. 111. (x) Price V. Neault, 12 App. Ca. 110. [y] Piekard v. Sears, 6 A. & E. 469. (z) Thompson v. GlydcsdaU Bank, 1893, A. C. 282. (a) West London Commercial Bank v. Eitson, 13 Q. B. D. 360. (b) In re reuve Monnier, 1896, 2 Ch. 525. (c) In re Concessions Trusts, 1896, 2 Ch. 757. {d) Robinsons. Brewery Co., 1896, 2 Ch. 841. {e) Longmany. Bath Electric, 1905, 1 Ch. 646. (/) Sainford's case, 1905, 2 Ch. 147. CONSTRUCTIVE FRAUD. 429 estoppels are not to be pressed too far against com- panies, — especially where there has been negligence also on the part of the complaining party (g), and where it is the company's secretary (rather than the company itself) that has been guilty of the negligence (h) . Where a borrower represented that he was entitled to (6) Eepresen- have a lease for ninety-nine years; and the lender ^fo^etfui- required a written confirmation of that; and the lessor lJ^ss°orone's {being told of the requisition and of its object) gave the ^"g_ko^' written confirmation; and the loan was made upon the fraudulent, faith of it, — And afterwards it appeared, that the lessor had already granted the lease, but had forgotten all about it, and that the lease had been already mortgaged by the borrower, — The lessor was held liable, to the extent of the sum advanced (with interest (^")). But the lessor might have declined to give the confirmation, — and might have declined to answer at all (Jc) ; and a man is not, noiv, considered liable as for negligence {being for get fulness), — unless in cases where he is under a duty to the party (or places himself under such a duty {I)). By the 30 & 31 Vict. c. 48, s. 6 (as regards lands), .a (7) Agree- vendor of real property may (in the particulars or condi- ^^ctio^ not to tions of sale) openly reserve the liberty to bid (in person bid against one or by one agent) at the sale; and by the 56 & 57 .Vict. ^"°*^^''- c. 71, s. 58 (as regards goods), the like right to bid may be reserved : And the necessity for these special provisions seems to show (and certainly suggests), that the employ- ment of puffers at auctions (where the liberty to bid bad not been so reserved) is a constructive fraud on purchasers, disentitling vendors to {e.g.) the remedy by specific per- formance (m), — and entitling purchasers to rescind, and to recover back their deposits {n) : But the opinion is prevalent enough, that a "Jcnock-out" sale is not illegal (o) . iff) Sheffield Corporation t. Barclay, 1905, A. 0. 392. (h) Geo. Whiteehurchv. Oavanagli, 1902, A. C. 117. (i) Slim V. Croucher, 1 De G. F. & J. 518. (A) Low Y. Bouverie, 1891, 3 Ch. 82. [l] Le Lievre v. Gould, 1893, 1 Q. B. 491. (m) Mortimer v. Bell, L. R. 1 Ch. App. 10. (m) Thomett v. Haines. 15 Mee. & W. 367. (o) Halsbury, Laws of England, vol. i. p. 512. 430 THE ORIGINALLY CONCUREENT JUEiaDICTION. (8) Frauds upon creditors consenting to composition deeds. prepared to prove its bona fides. As regards composition deeds, — If a creditor who is a party to the deed stipulates for some clandestine ad- vantage (as a condition of his executing the deed), and his execution of the deed has induced other creditors to execute it, that is a fraud, — ^and the money paid may be recovered back (p) ; and (by the Scotch law) double that amount is (or used to be) recoverable (g) . Also, any money paid by the outstanding creditor to the estate of the debtor, if the payment is part and parcel of the fraudulent agreement, is not recoverable back, — nor may such a creditor prove for it if) . (^ ■*-P^^^°'' As regards every transaction whereby one person donation.must obtains (by gift) a benefit from another, the donee ought always be to bg able to show that the donor deliberately performed the act, knowing at the time its nature and effect; but a voluntary settlement (if it be otherwise proper) is not bad, merely because it contains no power of revocation (s), — nor is the donee under any duty to show that the settle- ment was intended to be without power of revocation (t), ■ — Because, generally, where there has once been a gift, the onus is on the donor, — if he would take back the' gift, — to show, that there has been some mistake on his part or else a fraud on him (m) . The donee of a special power of appointment must exercise the power bond fide and for the end designed (x), and not. for any purpose which is foreign to the power («/) : For example, where a parent is the donee of a power of appointment among his children; and he appoints to one of the children, M^ow a bargain for Ms {the parent's) oivn advantage, — Equity will relieve against the appoint- ment (2) ; and, in such a case, the appointment will be void altogether {a) . Also, where there is a secret understand- (10) A power must be exer- cised bond fide for the end designed. {p) Eiggins v. Pitt, 4 Exoh. 312. (?) Garter v. McLaren, L. R. 2 H. L. So. 120. (r) In re Myers, 1908, 1 K. B. 941. («) Taker v. Taker, 3 De G. J. & S. 487. {t} Hall V. Hall, L. B. 8 Oh. App. 430. (m) Henry v. Armstrong, 18 Ch. D. 668. {x) Aleyn v. Belchicr, 1 Eden, 132. \y) Brookes v. Cohen, 1911, 1 Ch. 37. (z) Henty v. Wrey, 21 Ch. T>. 332. (a) Cloufte V. Storey, 1911, 1 Ch. 18. CONSTRUCTIVE FRAUD. ' ^gj ing between the donee and the appointee, that the ap- pointee shall {e.g.) assign back a part of the fund to the appointor (&), — or to the appointor's creditors, — that also is a fraud (c). But a power in A.B. to jointure his wife is an exception, apparently, to this rule {d). And where any one has a power to create portions for his children (and also to fix the time when they are to be raised) ; and he appoints to a child during the child's infancy, and while the child is not in want of the portion, and the death of the child is at the time of the appointment expected, — In such a case, the parent will not (as the per- sonal representative of the child) be allowed, on the child's death under age, to derive any benefit from the appoint- ment (e) . But where the exercise of a special power of appointment is void in part only, and the other part is severable, the appointment will (as to the latter part) be valid (/) ; and if there have been sucoeesive appoint- ments, and all of them are bad, save the last one, the original badness is sometimes said to be " eliminated,'" — and the last one of the successive appointments becomes gooA{g). Where a father has a power to appoint among hisj But a release children, and the children are entitled in default of a-p- !!altho^uJhil pointment, the father may validly release the power, — may operate even if he should himself thereby acquire some pecuniary of'the^do™! a'dvantage which he oould not have obtained upon any of the power, actual exercise of the power (^): Therefore, where there valid, was such a power of appointment in the father, and (in the events which had happened) the power had become a power to appoint exclusively in favour of a daughter or her issue, — ^and (in default of appointment) the daughter was abso- lutely entitled to the property, — and the father released the power; and thereafter he and his daughter mortgaged [b) Daubeny t. Cockbum, 1 Mer. 626. \e) Carver v. Richards, 1 De. G-. P. & J. 548. (etj Saunders V. Shafto, 190.5, 1 Ch. 126. («) Roach v. Trood, 3 Ch Div. 429. (/) Perkins Y. Bagot, 1893, 1 Ch. 283. (g) Carver v. Richards, 1 De Gr. F. & J. 548. (A) Eadcliffe v. Bewes, 1892, 1 Ch. 227. 432 THE ORIGINALLY CONCUKEENT JURISDICTION. the property to secure a gum of £10,000 (paid to the father and applied by him for his own purposes), — The Court held, that the release was valid, and (with it) the mortgage (i). But, nota bene, a power which is "coupled with a duty" may not be released (/c), — nor may the exercise of it be even fettered. Coveuant to Where the power of appointment is a general power, it powCTtiywill, '^^y (equally with a special power) be released, — Scil.., —in one by deed: And where it is exerciseable by will only, the way'— donee of the power may covenant either not to exercise it or (if she does exercise it) to exercise it only in favour of A., B., and C, and no others, — or only to a limited extent, and so as to " negatively tie his exercise " of the power (J) : Such a -i^ut such a covenant (even when it is for value) is not <=oY™a^tisnot specifically enforceable by A., B., and C, — Although, for but damages breach of the covenant, damages would be recoverable (m) : (for the Also, a bond given to secure the exercise of the power in may be ' the way Specified would be on the same footing as the recoverable. covenant («) : Therefore, where the donee of a general power of appointment (exerciseable by will only) borrowed £x of A., and (by way of securing him) covenanted with A. to appoint in his favour, — and so as to give him a first charge on the appointment property, — and not to revoke that appointment; And he did, in fact, appoint in favour of A. accordingly, — A. was held to be entitled to rank only with the unsecured creditors of the appointor, ^and to be paid pmi passu with them (and without any priority over them) in respect of his purported first charge (o), — Scil., because every appointment by will makes the property assets for the creditors generally, and the appointment by will to A. was a bequest by will to A., — and not the less so, merely because of the prior agree- ment (by covenant or bond) to make the bequest. But if (in such a case) the appointor constitutes A. his execu- tor, A. will, semble, obtain priority, — to the extent that (t) Smiths. Somes, 1896, 1 Ch. 250. {Ic) Chamiers v. Smith, 3 App. Ca. 795. (?) In re Evered, Molineiix v. Evered, 1910, 2 Ch. 147. (m) mil V. Schwartz, 1892, 3 Ch. 510. (m) Falmer v. Noake, 15 Ch. D. 294. (o) Zaiser v. Lawley, 1903, A. C. 411. CONSTRUCTIVE FRAUD. 433 his right of retainer as executor shall extend to give him priority over the other creditors. Where the donee of a power exercised the power, by Doctrine of appointing to one or more of the objects a merely nominal appSnents. share of the property,— such an appointment (although ■ valid at law) would have been set aside in equity as an "illusory" appointment (p),— Until, by the 1 Will. IV. c. 46, it was declared, that no appointment should be invalid, on the ground merely that an illusory share of the property had been appointed to any object of the power. And, as a consequence of that Act, the appointor might have cut off any appointee "with a shilling" (as the phrase went); and now, by the 37 & 38 Vict. c. 37, as regards any appointment made after the 30th May, 1874, the appointor may cut off any particular appointee oven " without the shilling,"— SczZ., unless the power itself expressly directs, that no object of the poiver is to receive less than some specified amount {q). Where a s.ub-lessor of building land represented to the (H) A man plaintiff, that he (the sub-lessor) could not build so as to certaS°tSf of obstruct the sea-view from the houses which were going to facts as an be built by the plaintiff as sub-lessee, — saying, that (as L^TOntoct)' *° the fact was) he (the sub-lessor) was by his own lease for cannot dero- 999 years (and which comprised certain intervening land) fy his™wn prevented from doing that, — And (upon the faith of that g^g't^^?' ^•^■' representation) the sub-lease was taken, and the houses sea-view; were built, — And (subsequently thereto) the sub-lessor surrendered his 999 years' lease, and took (in lieu thereof) a new lease, not containing any like restriction as to building, — The Court restrained the sub-lessor, from building so as to obstruct the sea-view (r), — Scil., Be- cause, of course, the surrender of the old lease was subject to the plaintiff's then already acquired rights (s) . Also, °^ otherwise where there was a large building adapted for letting in peace and . residential flats, and the plaintiff and others (occupants SJJJfij^*^ {p) Wilson V. Piggott, 2 Vea. 351. (?) In re Capm's Trusts, 10 Ch. Biv. 484. (r) Piggott v. Straton, 1 De G. F. & J. 33. («) Smalley v. Sardinge, 7 Q. B. D. 524, S. F F ^34 THE ORIGINALLY CONCURRENT JURISDICTION. of the flats) held under tenancy agreements containing provisions for their occupation only as residential flats, — The landlord was restrained from converting the unoccu- pied portion of the building into a club {t), — Sail., Be- cause a man shall not be permitted to derogate from his own previous grant (whether express or implied (m)): But you must, of course, be able to show, that the thing yOu are complaining of is, in fact, a derogation from the previous grant (x) . {t) Sudson V. Crippa, 1896, 1 Ch. 265. («) Martin v. Spicer, 14 App. Ca, 12. (x) Eigby v. Bennett, 21 Ch. D. 559. 435 CHAPTEK V. STJEETYSHIP. The Contract of Insurance requires the utmost good Siiretyship,— faith between the parties to it, — and is uherrimce, fidei ; what extent but suretyship is not like insurance in that respect, — at °^7^ acon- least, in its inception («), although in its incidents a,nd J^ei" ^'"^ consequences it may be so (b) : That is to say, — The creditor is iinder no duty towards the surety, to inquire into the circumstances under which the surety becomes a surety, — unless where the circumstances are excep- tional (c) . The Statute of Frauds (29 Car. II. c. 3), by s. 4, Under Statute requires, that the agreement to become and be a surety ^^^g*^'" (or liable as a guarantee for the debt of another) shall be required for a in writing, — and, of course, therefore, no one is bound 'ffe""!^ScU as a surety without writing; but the case is different, if bemga the so-called "suretyship" is, in fact, a substantive and girictiTso**" independent (primary) liability, — sometimes called an called. "indemnity" {d). The rights of the creditor against the surety are wholly Bights of regulated by the written agreement; and where an obliga- against'^ tion arises only by \rirtue of a written agreement, the surety,— extent of the obligation is to be measured by the words thf^Mteument of the agreement (e), — So that {e.g.) where a surety is of guarantee. ^ bound by a joint bond, the Court will treat the joint bond as a joint bond, — and will not make it a several bond(/). Also, whether the bond is joint or is joint (ffl) SeatmY. Burnand, 1900, A. 0. 135. (A) Pidioclc V. Bishop, 3 B. & 0. 605. (c) Owen V. Soman, 4 H. L Ga. 997. (d) Guild ^ Co. V. Conrad, 1891, 2 Q. B. 885. («) Sumner v. Powell, 2 Mer. 35, 36. (/) Rawstone v. Parr, 3 Eus9. 424, 539. F F 2 436 THE ORIGINALLY CONCUREENT JURISDICTION. and several, if the obligors purport thereon to be liable to the obligee direct, you cannot (as against the obligee) show, that one or more of them were sureties only (g) . The question also of the duration of the suretyship, — and whether it is for goods supplied once only or for a continuing supply (h) ; and whether it is (as it usually will be (i)) determined by the death of the surety and by notice of the death, or continues after the death and after notice of the death (fe), — and the question, whether the suretyship is for a part only (or for the whole) of the debt (l), — All these questions appear to be also merely questions of construction. But a suretyship, which is expressed to be a continuing one, will not be determined by the death of the surety, if the suretyship agreement contains a specific provision for its determination, and such provision is as applicable after the death as before the death (to) : Also, the very nature of the liability in- sured against will, occasionally, itself show, that the obligation is to continue after the death and after notice of the death (n). Surety,— If the written guarantee so express, the surety will be when and bound, even when the principal debtor is not bound, — a XynftT) not discharged by surety being often insisted upon, precisely because of the the discharge inability of the principal debtor to validly borrow (o) . Or Ti TiTi fti'nftl " . . debtor. , Moreover, the surety (being onoe bound) will continue bound, even after the principal debtor (being a company) has ceased to exist, — That is to say, if (by the 'agreement) the surety is to be liable for the interest, until the prin- cdpal of the debt "is paid" (p), — although not, if the surety is to be liable for the interest, only while the principal of the debt "remains due" {q). But, where (g) Swire \. Redman, 1 Q. B. D. 536. {h'l Heffield v. Meadows, L. E. i C. P. ."igS. (i) Harriss v. Fawcett, L. R. 15 Eq. 311. (/c) Lloyds V. Harper, 16 Oh. Div. 290. \l) In re Sass, 1896, 2 Q. B. 12. (m) Midland JR. 0. v. Silvester, 1895, 1 Ch. 573. («) Balfour y. Crace, 1902, 1 Ch. 733. (o) Ynrhsltire Railway Waggon Co. v. Maclure, 19 Ch. Div. 478. (jo) In re FitzGeorge, 1905, 1 K. B. 462. \q) In re Moss, 1905, 2 K. B. 307. STJKETYSHIP. iST one 00-surety executes the guarantee on the faith that the other or others shall execute it also, — and they fail to do so, — the executing surety will not he bound (r) . A surety cannot ordinarily compel the creditor to pro- Remedies oeed against the debtor; but (upon giving the creditor a s^eiy!'* ""^ sufficient indemnity against the costs of the action) he (i) Surety may, perhaps, require the creditor to proceed against the caimot compel debtor (s); and the surety may himself {at any moment oeed against "' after the debt becomes payable) pay the creditor, and then debtor,— save, proceed against the debtor (t): A surety may also some- giving' an times proceed quia timet to compel the debtor to pay indemnity; the debt (u), — as where the creditor has a present right acUc^quS^^ to sue the debtor, and refuses to sue him (x), — or demands timet, to payment of the surety («/). mSitb/''^' debtor. A surety may also file a bill for a declaration, that his (2) Judicial liability is at an end, — Scil., where the course of dealing ^^at^i^ty' between the principal debtor and the creditor has operated discharged, as a release (2:): And, for example, if you are a surety to A . for the rent payable by A . 's tenant B . , — that means, in general, for B.'s rent under his then existing tenancy- agreement, — So that the suretyship extends not to a new tenancy-agreement subsequent (a) ; and the only difficulty arising in that class of case is, to know whether the exist- ing tenancy is (in fact) a new tenancy(&), or is only the old tenancy re-continued (c). And here note, that the in- demnity is not, in such a case, discharged, unless and until A. (the landlord) really gets paid(d). Where the surety pays the debt on behalf of the prin- (?) Action for cipal debtor, the rule (even at law (e)) is, that he has a mentby'^" right to call upon the debtor for reimbursement, — a right debtor. (r) Svms V. Bremridge, 8 De G-. M. & G. 100. (s) Newton v. Charlton, 10 Hare, 646. \t) Wright v. Simpson, 6 Ves. 733. («) Wooldridge v. Norris, L. K. 6 Eq. 410. (x) Padwick v. Stanley, 9 Hare, 627. \y) Ascherson's cane, 1909, 2 Ch. 40JI. (z) In re Fox, Walker ^- Co., 15 Ch. Div. 400. la) Tayleur v. Wildin, L. R. 3 Exch. 303. (A) ffolme V. Brunskill, 3 Q. B. D. 495. \c) Nuttall T. Staunton, 4 B. & C. 51. (d) In re Richardson, Ex parte St. Thomases Hospital, 1911, 2 K. B. 706. («) Toussaint Y. Martinnant, 2 T. E. 105. U8 THE OEIGINALLY CONCUERENT JURISDICTION. which has been put upon the ground of an implied con- tract (on the part of the debtor) to repay the money so paid an his account (/) : And the surety is (in such a case) sub- rogated (in fact) to all the creditor's rights (ff), — SciL, as against the debtor (h), and as against the trustee in bankruptcy of the debtor (^), — So that, if the creditor is a specialty creditor, so also (after payment) will the surety be (k) ; ,and if the creditor is the crown, the surety (after payment) will have the priority of the crown (t). deii4'^°u *°f ^^ *'^'® creditor has taken some additional (collateral) securities by securities from the principal debtor, the surety is entitled creditor. (upon payment of the debt) to have the benefit of all these collateral securities also (m) : And although this right of the surety used not to extend to those securities (e.g., bonds), which (upon payment) became extin- guished (w), yet a surety is now entitled, under the Mer- cantile Law Amendment Act (19 & 20 Vict. c. 97), s. 5, to have assigned to him every security which shall be held by the creditor in respect of the debt, whether it shall or shall not at law be deemed to have been satisfied by the payment of the debt, — the Act operating an im- plied assignment pi the security (o) . And this right of a surety (to the delivery up of the collateral securities) extends also ^o ^ surety who is such merely because of having indorsed ,(and, as indorser, paid) a bill of ex- change (p): Also, an insurance company (on payment of the loss insured against) is entitled to be put in the place of the person insured (g), — So that, if (e.g.) the latter should (subsequently) receive from other sources dompensation for the loss, the company (having so already paid the loss) will be entitled to recover from him the compensation subsequently received by him (r) . (/) Craythorne\. Swinburne, 14 Ves. 162. {g) Finlay t. Mexican Investment Corporation, 1897, 1 Q. B. 517. [h) In re Wrexham, ^c. R. C, 1899, 1 Ch. 440. (i) Gray v. Seckham, L. B. 7 Ch. App. 680. (A) Robinson v. Wilson, 2 Madd. 434. (I) Manisty T. Churchill, 39 Ch. D. 174. (m) Bodgson v. Shaw, 3 My. & Keen, 190. \n) Copis V. Middleton, 1 T. & R. 229. (o) Re M'Myn, 33 Ch. Div. 575. ( p) Duncan Fox ^ Co. v. North and South Wales Bank, 6 App. Ca. I . (}) Darrell v. Tibbitts, 5 Q. B. D. 660. (r) Phwnix Office v. Spooner, 1905, 2 K. B. 753. SURETYSHIP. 439 .Where there are two or more sureties, and one of them (6) Actioji pays the whole debt, he has a right to contribution from co-^^eties for his co-surety or oo-sureties, — A doctrine which (it has contribution, been said) "is bottomed and fixed on general principles of justice, and does not spring from contract, though con- tract may qualify it" (s), — That is to say, the "common liaMlity " of all is to be sharpd by each (t) : Also, the right to contribution may exist even before actual paj'ment, — as, e.g., when there has been a judgment against the surety for the debt (u), — from which date also (and not from the date of the suretyship), time will begin to run against the claim for contribution (v) . And the law of dontribution is applicable, whether the parties are bound in the same or in different instruments, — provided only they are co-sureties for the same debtor and the same debt, — that is to say, provided there is a common liability and not otherwise (x) : Also, it makes no difference, if they are bound in different sums, — excepting that the contribution cannot, of course, be required of any of the co-sureties beyond the sums for which they are respectively bound (y), — the surety proving nevertheless for the whole of the debt, although recovering (in fact) only the co- surety's proportion {z) . A surety who has obtained from the principal debtor a counter -security for the liability he has undertaken, is bound to bring* into hotchpot (for the benefit of his Oo- sureties) whatever he receives from that source, — and that, even although he consented to be a surety, only upon the terms of having such counter - security, — and even . although the co-sureties (when they entered into the con- tract of suretyship) were ignorant of the agreement for such counter-security {a) : But, the principal creditor is not entitled to the benefit of such counter -security (&). (») Derinff V. Winchehea, 1 Cox, 318. (t) Johnson v. Wild, 44 Ch. D. 146. (w) Wolmershamen v. Gullick, 1893, 2 Ch. 514. (») Robinson v. Harkin, 1896, 2 Ch. 415. [x) Smith V. Cock, 1911, A. C. 317. (y) Coles V. Peyton, 1893, 3 Ch. 238. fz) Morgan v. Sill, 1H94, 3 Ch. 400. (a) ateel v. Dixon, 17 Ch. D. 825. (i) Sheffield SanUng Co. v. Clayton, 1892, 1 Ch. 621. 440 THE OEIGINALLY CONCUEKENT JURISDICTION. Contribution The like right of contribution ebcists also (in the gtetneral co-direotors ; Case), in favour of one director of a company against his co-directors, — for example, in respect of advances made to the company upon the express suretyship' of the direc- tors, — or where (from the loan being unauthorised or otherwise) the company is not liable at all, but the directors making the loan are personally liable (c) . * Also, oo-directors (d), and co-promoters also (e), have,^or may have, — the right to contribution (as against each other) in respect of the damages which either of them has had to pay as mmpensation for statutory frauds in prospectuses and the like; and aa between And as regards co-trustees, the right of contribution (as between them) for losses arising from a breach of trust, is (in the absence of fraud) a matter of course; and such right is enforceable also against. the estate of a deceased oo-trustee (/): On the other hand, the right of indemnity {i.e., recoupment) is not a matter of course; but where there are special ciroum'stanoes, — ^aJs where {e.g.) the trustee who has been the actor in the breach is the solicitor of the trust (or has derived a personal benefit from the breach), — the right of the oo-trustse to recoupment would be allowed {g>) . Also, where one of the two trustees is a beneficiary, and the breach of trust (or the judgment therefor against both) is satisfied out of the beneficial interest of the one, he (the beneficiary) has no right to contribution, although both trustees may be in equal blame {h) . Lastly, as between co-tort -feasors there is no right to contribution {i) ; but -the liability of co- directors and of co-promoters for their statutory frauds is not the liability for a tort within the meaning of this rule (fc). (c) Bamskill v. Edwards, 31 Beav. 100. \d) ShepheardY. Bray, 1907, 2 Ch. 571. (e) Gerson v. Simpson, 1903, 2 K. B. 197. (/) JaclcsortY. McJcinsm, 1903, 1 Ch. 947. Ig) Bahin v. Sughes, 31 Ch. Div. 390. [h) Chillingworth v. Chambers, 1896, 1 Ch. 685. (J) Merrt/uieather \. Nixan, 8 T. K. 184. (A) Oersm v. Simpson, supra. co-sureties. SURETYSHIP. 441 The right to contribution may, of course, be varied by special agreement: For example, where three co-sureties agreed among themselves, that if the principal debtor failed to pay the debt, they should pay only their respec- tive aliquot parts, — and afterwards one of the three went bankrupt, and one of the other two paid the whole debt, he was held entitled to recover only one-third from the third co-surety (J), — each of the two having also, of course, a right to prove in the bankruptcy, to get what they could get therein, but not exceeding one-third (m) . Where there is a surety for the principal debtor, and Surety and the creditor has obtained also (for his greater protection) are not, in the some guarantee or insurance (say, from a guarantee f^^^^f^Jlf^^®' society), against the default of the principal debtor to pay the debt, — The question sometimes arises, whether the surety is liable before (and in exoneration of) the insurer or guarantor, or is liable only fro rata with (and pari passu with) the latter: And it appears, that the surety is (in the general case) liable in exoneration of the insurer or guarantor (w), — and for this purpose, it will not matter, that the surety has not been (and he would not ordinarily be) a party to the instrument of guarantee. Where a surety discharges an obligation at a less sum Surety can than its full amount, he cannot (as against the principal ^ebtor^for ^ debtor) make himself a creditor for the whole amount, what he but can only claim what he has actually paid in discharge *<=t"*^y P^'^- of the debt (with interest (o)), — In which particular, the transferee of a mortgage debt (who is neither a trustee nor a surety) is in a very different position, being entitled to claim the full amount of the mortgage- debt, although he should have obtained the transfer at a considerably lower price (p) ; and an inquiry will sometimes be directed, as to whether the transferee is (or is not) in a fiduciary capacity {q) . (T) Swain v. Wall, 1 Ch. R. 149. (m) In re FarJcer, 1894, 3 Ch. 400. («) In re Denton's Estate, 1904, 2 Ch. 118. (o) Eeed v. Norris, 2 My. & Cr. 361, 375. (p) Dobson Y. land, 8 Ha. 216, at p. 220. (j) Batehelor v. Middleton, 6 Ha. 75. 442 THE ORIGINALLY CONCUEEBNT JURISDICTION. Cirouiustanoes discharging the surety ; — (1) If creditor varies contract with debtor, without surety's privity. A surety will be dischaxged from his liability, where (by acts subsequent to the contract of suretyship) his position has been essentially changed without his con- sent (r) ; but the consent will sometimes be implied, — as between (e.g.) a lessee and his assignee (s). However, if the variation is in relief pro tanto of the surety, he will not be thereby discharged (t); and if there be co-sureties, and the variation in no way affects them inter se, they cannot claim to have been infer se discharged thereby (m). But, surely, it is for the surety to judge of the effect of the variation? (2) If creditor gives time in a binding manner to debtor, with- out consent of surety, —and thereby affects the remedies of the surety. Debt payable by instal- ments, — giving time as to one of the instalments, effect of, as regards the other instal- ments. If a creditor (without the consent of the surety) gives time to the principal debtor (by positive contract be- tween the creditor and the principal debtor), the surety is discharged thereby (a;) : And, in the case of mortgage debts, this rule extends not only to discharge the surety from his personal liability on his covenant to pay the mortgage debt («/), but extends also (it has been said) to release the mortgaged property of the surety (where he is a surety co-mortgagor) from its liability to the charge (z) . But, semble, it may be, that (under a special suretyship) the surety's liability as co-mortgagor may remain, — Scil., a.s regards the mortgaged hereditaments, — even where the principal debtor's personal liability for the debt is wholly gone (a). Also, where the debt for which the surety was bound was a debt payable by three equal monthly instalments; and the surety was bound for each of the three instalments; and the creditor (without the assent of the surety) gave the debtor time for the first instalment, — The surety was held to have been dis- charged as to that instalment only, and not also as regards the two remaining instalments (6); Also, nota bene, if the debt is a bill of exchange or promissory note (which has been successively negotiated by indorsement), (r) Bonser v. Cox, 6 Beav. 110. (,s) Baynton v. Morgan, 22 Q. B. D. 74. \t) Webster v. Peire, 4 Exch. Div. 127. (m) Greenwood v. Francis, 1899, 1 Q. B. 312. (x) Samuel v. Howarth, 3 Mer. 272. {y) Bolton v. Biic/cenham, 1891, 1 Q. B. 278. (z) Bolton V. Salmon, 1891, 2 Ch. 48. (a) Percy v. N. P. Bank, 1910, W. N". 20. (b) Oroyckm Gas v. Dickinson, 2 C. P. D. 46. SUKETYSHIP. ' 443 and you give tim« to one of the indorsers, you thereby discharge all the indorsers subsequent to him, but these indorsers only,— the prior indorsers not being 'affected by that. A surety will not be discharged by the creditor's giving (2a) Surety time to the debtor, if the creditor's remedies against the chLgId, surety are thereby accelerated, — Scil., because (in such where creditor a case) the surety's remedies against the principal debtor fese^fes'SI remain unaffected (c) : Nor will the surety be discharged, ^S^^ against if the giving of time to the principal debtor is (either '^®^' expressly or impliedly) sanctioned by the original agree- ment of suretyship {d) . Also, generally, the surety will not be discharged, if the creditor (on giving further time to the principal debtor) reserves his right to proceed against the surety, — Soil., because when that right is so reserved, the principal debtor cannot say it is inconsistent with giving him time, that the creditor should be at liberty to proceed against the sureties, and that they (in their turn) should afterwards proceed against him; and the question, whether or not the surety was informed of the agreement, is wholly immaterial (e) . The same rule is applicable, where the principal debtor (3) If the purports to be released, and the creditor (at the same rde^esthe time) reserves his rights against the surety, — Excepting principal that, where the purported release is an absolute one, or is effect!^'"" in general terms, and without any reservation of rights against the surety, the surety will be discharged, — and that not from any equity in his favour, but from considerations of bare justice to the principal debtor (/): And in the (3a) If the case of co-sureties, the release of one of them 'by the releases one creditor (even when founded on a mistake of law) operates co-surety,— as a release also of the others {g), — although, if the release is merely a covencmt not to sue (h), it will not operate (c) Clarke v. Sirlei/, 41 Ch. Div. 422. {d) Souse T. Bradford Bank, 1894, A. 0. 586. (e) Webb v. Heuiitt, 3 K. & J. 442. (/) Tasmania Bank v. fones, 1893, A. C. 313. (g) Sydney Bank v. Taylor, 1893, A. C. 317. (A) Nicholson v. Sevill, 4 A. & E. 675. 444 THE ORIGINALLY CONCUEEENT JURISDICTION. to release the co-sureties (^) . But it is to be particularly observed, that a creditor cannot r^erve his rights against the sureties, if he give to the principal debtor an actual release (as distinguished from a liiere purported release or covenant not to sue), — For (on a release) the debt is gone (fc), — and there can be no surety for a debt that is wholly gone (J) : Secus, where the debt is not wholly gone, — as where the release is a qualified release, and by operation of law only (m) . Also, nota bene, an accord and satisfaction with the principal debtor would be equivalent to an actual release, — and to reserve (in that case) any rights against the surety would be inconsis- tent with the accord (n) . But, nota bene, although the principal debtor will be discharged, by a statutory composition (o), — equally as by a bankruptcy or liquidation, — Still the statute under which that discharge arises may (and usually does) ex- pressly continue the liability of the surety (p) : And, in the case of a common law composition also, the liability of the surety may be continued by express reservation (q), — but (unless so continued) it is discharged (r) : Further, nota bene, in the winding up of a limited company, — with A. contributories and B. contributories, a compromise with an A. contributory does not operate to release the correlative B. contributory (s), — and, in such a case, the B. contributory will, therefore, have, notwithstanding the compromise, a right to indemnity from the A. contri- butory (i); and that is so, although the A. contributory and the B. contributory do not stand in the relation of debtor and surety. (4) If creditor Inasmuch as a surety is entitled (on payment of the or allows ' debt) to all the securities which the creditor has ever had, Compositions, statutory and com- mon law, — rights against surety, reserved. (») Ward V. National Bank of New Zealand, 8 App. Ch. 755. {k) Eearsley v. Cole, 16 Mee. & W. 136. [1) Staceyv. Sill, 1901, 1 Q. B. 660; Letton' s case, 1908, 1 K. B. 378. (m) In re Jacobs, L. R. 10 Ch. App. 211. («) Head T. Bead, 1894, 2 Ch. 236. (o) Flint V. Barnard, 22 Q. B. D. 90. (p) Ellis V. Wilmot, L. E. 10 Exch. 10. (q) Bateson v. Gosling, L. R. 7 C. P. 9. (r) Cragoe v. Jones, L. R. 8 Exch. 81. (.s) NevilVs case, L. R. 6 Ch. App. 43. (i!) Roberts v. Crowe, L. R. 7 0. P. 729. SURETYSHIP. 445 — whether such securities were given at the time of (u) or them to go after (x) the contract of suretyship, and with or without ^^^^0^*° the knowledge of the surety, — If the creditor loses the hands,— effect, securities, or suffers them to get back into the possession of the debtor, — or does not make them effectual (by giving the proper notice (y), or by duly registering them (z)), — the surety, to the extent of the securities lohich have so been lost, will be discharged (a) . Also, the surety will, semble, be discharged to the extent of any rights of action or other benefits which the creditor has given up or re- nounced (6). All the gieneral rules regarding the marshalling of Marshalling of securities which are stated and illustrated in the chapter asagainst~ on Marshalling Assets, supra, are applicable as against sureties, sureties also (c) ; and the order of working out the suc- cessive redemptions and foreclosures of mortgaged estates, stated in the chapter on Mortgages, supra (d), is applic- able also to sureties, — being subject (as against sureties also) to the doctrine of consolidation, stated and illus- trated in the same chapter, but now greatly cut down by the Conveyancing Act, 1881: But regarding sureties in mortgage deeds, the distinctions, which are stated on p. 277, supra, must always be borne in mind, — it making a very great difference indeed, whether the surety is a surety simply or is also a co-mortgagor: Also, nota bene, neither foreclosure nor sale may (under the exceptional circumstances of some particular suretyship) be avail- able as against the surety's estate (e). Where the principal debtor becomes a bankrupt, both On hank- the creditor and the surety have, on principle, a right of p^P^c^ia/ proof in the bankruptcy, — the creditor, in respect of his debtor,— proof QigSiUlStf lUS («) Mayheiv v. Cric/cett, 2 Swanst. 185. {x) Berridge v. Berridge, 44 Ch. Div. 168. (y) Strange v. Fooks, 4 Giff. 408. (z) Wtilff^. Jay, L. R. 7 Q. B. 758. (a) Taylor t. Bank of New South Waks, 11 App. Ca. 596. \b) West of England Insurance v. Isaacs, 189rt, 2 Q. B. 377. (c) Pp. 228, 229. {d) Pp. 282, 283 et leq. .(«) Stamford Bank v. Ball, 4 De G. F. & J. 310. 446 THE ORIGINALLY CONCURRENT JURISDICTION. estate, ty debt; and the surety, in respect of his liability: But, in tysMety"'^ practice, the following distinction is to be taken, namely: (1) Where the surety is a surety for the whole debt, the creditor (and he only) shall prove, — and shall take to himself, and also keep for himself, the dividends received on both proofs (/), — ^proceeding afterwards against tlie surety in respect of the deficiency ; but (2) Where the surety is a surety for only part of the deht, amd he has paid that part to the principal creditor, — Then he (the surety) may prove (in respect of that part); and the creditor also may prove, in respect of his vs^hole original debt (and not merely for the residue after deduct- ing the part paid by the surety (g)), — Each keeping to himself (in this case) the dividends received by him (h), but the principal creditor not, of course, receiving more than 20s. in the £ altogether: But, unless the surety has first paid his part, he cannot prove, — The law not per- mitting a " double proof " 'in respect of the same debt {i}, — but only in respect of distinct debts (/c) . Time,— when Where the principal debtor has been discharged by the ofthe^vie^^ Statute of Limitations, the surety may or may not have and when not. been also discharged thereby, — according as the bar by time extinguishes the debt itself, or only bars the remedy for it: But the payment of interest by the principal debtor will keep alive the debt against the surety also, — as will also any part-payment of the principal of the debt (I): That is to say,— The 19 & 20 Vict. c. 97, s. 14 (as regards co-contractors and co-debtors), is inapplicable to the relation of creditor, principal debtor, and surety, these two latter not being co-debtors within the meaning of that Act and section (m), — So that a part -payment by the principal debtor, although it would not operate (as against any co-debtor or co-debtors) as an acknow- ledgment to revive the debt, will (as against the surety) (/) Ellis Y. Emmanuel, 1 Exch. Div. 157. (g) In re Sass, 1896, 2 Q. B. 12. (A) ffobson V. .Bass, L. R. 6 Ch. App. 792. (t) In re Oriental ISmik, L. R. 7 Ch. App. 99. (A) He Parkers, IM Q. B. D. 84. (7) Allison V. Frisbt/, 43 Cb. D. 106. (m) Lindsell v. Phillips, 30 Ch. D., on pp. 295, 296. SURETYSHIP . 447 operate as euoh an acknowledgment: But where a Account of customer's account at the bank was guaranteed by a P"''^'^'^ "^j^. surety, and more than six years had run since the last for, discharge advance, and there had been no actual payments since, of- hut only settlements in account (charging interest and commission in the usual way), — The surety was held to have been discharged, as regards the principal of the sums advanced (w), — and to remain liable only as regards the interest and commission .accrued within the six years. {«) Parr's Bank t. Tates, 1898, 2 Q. B. 460. 448 CHAPTEE yi. PARTNERSHIP . Jurisdiction iu equity. Specific per- formance of partnership agreement, — when and when not decreed. Injunotion,- when and when not granted. The jurisdiction of equity in partnership matters, although nominally concurrent, was practically exclusive, — a quasi-fiduciary relation existing between partners; and the Judicature Act, 1873 (s. 34), accordingly, assigned to the Chancery Division all partnership matters involving either accounts or a dissolution. The whole law of partnership has been declared by the Partnership Act, 1890 (53 & 54 Vict. c. 39),— but the rules of equity (and indeed of the oomraon law generally) continue in foroe (s. 46). A Court of Equity will, occasionally, decree the specific performance of a contract to enter into a partnership, — That ifi to say, where the contract is for a fixed and definite period of time (a), and there have been acts of part performance {b) ; but the Court will not otherwise decree the specific performance of the contract (c) : Also, where A. and B. agree to be partners for a term certain, — the term not to be determinable by the death of either ; and A. dies during the term; and A.'s executors refuse to continue the partnership, — The Court will not compel them to do so; but (for breach of their testator's con- tract) they must pay the damages (if p-ny) which B. sustains thereby {d) . Equity will, however, decree specific performance of particular clauses in the articles of an existing partner- ship (e): And where, by a clause in the articles, the (a) Buxtmi v. Lister, 3 Atk. 385. \b) Scott V. Rayment, L. R. 7 Eq. 112. (c) Hmy V. Birch, 9 Ves. 357. (d) Downs V. Collins, 6 Ha. 418. («) Marshall t. Golman, 2 J. & W. 266. PARTNERSHIP. 449 partners agree not to engage in any other business, equity- will (by injunction) enforce such, a clause, — the interim profits made by any partner in violation of the agreement being usually decreed to belong to the partnership (/): Also, the law is the same (as regards carrying on any "rival" business), even where there is no such express restrictive agreement (gr'), — a "rival" business being, of course, one of similar character, and not one of a wholly different character (A). And equity will also (by in- Belief by junction) prevent such acts (on the part of any of the ™i^^u°"_ partners) as either tend to the destruction of the partner- when and ship property (i), or as tend to exclude any of the partners when not. from the due exercise of their partnership rights (k) . But equity will not interfere, either by injunction or Where an otherwise, where the remedy at law is adequate: Also, tfrafe?to since the Common Law Procedure Act, 1854, — and more arbitration,— particularly since the Arbitration Act, 1889, — equity has oeSings'j'very been (and is) in the habit of remitting the parties to commonly the arbitration a,s their self -chosen exclusive forum (?), gromidof"^ — Provided always that the question in difference is agreement to within the agreement for reference (?h), and the whole '^ ^^' dispute may be settled in the arbitration, and not other- wise (w), and not so as to split up the ground of action (o). And the Court justifies its action in enforcing these refer- ences, under the express words contained in s. 4 of the Act of 1889 (which re-enacts s. 11 of the Common Law Procedure Act, 1854), namely, — That whenever the parties to any deed or instrument in writing agree to refer their disputes, and any one or more of them nevertheless commences an action (relative to such disputes), the other parties (being defendants to the action) may, — before pleading thereto (p), or taking any other step in the (/) S'lmervilkM. MacJcaij, 16 Vea. 382. (g) 5.3 & 54 Vict. c. 39, e. 30. (h) Bean v. MSowell, 8 Ch. D. 345. (i) Marshall v. Wahon, 26 Beav. 601. (k) Walker v. Mottram, 19 Ch. Div. 355. {I) Wilksford v. Watson, L. E,. 14 Eq. 572. ()«) Martin's case, 17 Q. B, D. 609. (n) Barnes^. Youngs, 1898, 1 Ch. 414. (o) Ives V. Willans, 1894, 2 Ch. 478. (p) Bartlett v. Ford's Hotel, 1896, A. C. 1. G G 450 THE ORIGINALLY CONCURRENT JURISDICTION. action (g), — apply for a stay of the proceedings, on tlio ground of the agreement to refer; and the Court, " upon being satisfied that no sufficient reason exists (r) why the matter in dispute ought not to be referred," may (in its judicial discretion (s)) make an order staying the proceedings, provided the applicants have always been (and are) ready and willing to join and concur in all matters necessary or proper for causing the dispute to be decided by arbitration. However, the order to stay will first appoint a receiver and manager (wherever the busi- ness appears to require that(i)), — and will also (usually) reserve liberty to apply: Under which liberty, the Court may afterwards either give its direction to the arbitra- tors (m), or make such other order (even an order revoking the submission) as shall (in the circumstances) be pro- per (x): Also, in and by the award, the arbitrators or umpire may award even, that the partnership) shall be dissolved (?/■),■ — although either party may apply to the Court, to remit the award or to set it aside, if there is any sufficient ground for that; but it is, usually, very difficult, — and (in the absence of wmla fides) almost impossible, — to get the Court to leave the action to simply proceed (z) . Partnership,— A partnership is constituted by agreement (express or cons 1 u ono . j^jjjpijg,^^ . ^^j^^ there is scarcely any variety of term (not being, of course, illegal («)), which may not be included in the agreement; and a partner may (by the agreement) have the right of nominating his successor in the part- nership (b). Also, persons become partners, if they agree to go shares in the profits and losses of the business (c), — although merely sharing in the profits (without being at the same time liable also for the losses, and without being invested with the capacity of agent for self and co-part- (?) Sichardson v. Le Maitre, 1903, 2 Ch. 222. (V) Freeman's case, 1911, 1 K. B. 783. (s) Eenshaw v. Queen Anne's Mansions, 1897, 1 Q. B. 662. (t) Pini T. Roneonni, 1892, 1 Ch. 633. (»() Hart V. Duke, 32 L. J. Q. B. 55. (x) Jackson v. Barry It. C, 1893, 1 Ch. 238. (y), Fawdrepv. Simpson, 1896, 1 Ch. 166. (z) Cox V. SuUhinson, 1910, 1 Ch. 573. (a) Nash v. Ash, 1 Eden, 378 (citing the highwayman's case). (b) Bi/rne v. Jieid, 1902, 2 Ch. 735. (c) Walker v. Sirsch, 27 Ch. Div. 460. PARTNERSHIP. 451 nor (d)), will not constitute a man a partner. Also, a mere part-ownership is not a partnership, — whether the profits (of the common propertj^) are shared between the part-owners or not (e) . Also, in the absenoe of any stipu- Partnership,— lation to the contrary, the shares of the partners in the *«'^"3of. capital (and in the profits and losses) are equal (/) ; and where (in the partnership agreement between the plaintiff and the defendant) it had been arranged, that a certain cotton mill of the plaintiff's (taken at its then value) should be deemed the plaintiff's capital in the business, and that £x cash should be the defendant's capital therein; and, upon a winding up of the partnership, the mill was (unexpectedly) found to have then become of treble its original value, — The Court said, that the excess in the value was divisible as "profit" (g), — just as, per contra, any unexpected "loss" would have had to be shared (h) . Also, if there are three partners, and the partnership sustains a heavy loss, and one of the three goes bankrupt, — The loss falls on the other two, so far as the bankrupt's estate is insufficient to bear the bank- rupt's share of it (^) . And lastly, where a partnership was originally for an agreed term, and it continues after the term, — It becomes a partnership at will, upon all such of the old terms as are applicable to a partnership at will (/<;), — including, it may (l) or may not (to) be, the term under which an option of purchase is given to either- partner: A partnership may be dissolved in divers ways: — PartneTsh;i>,— (1) Firstly, By Operation of Law,— That is to say, Jj^'^"*),""^*^; by the death of one of the partners (unless there be an tionof ?awl*" express stipulation to the contrary) ; or by the bankruptcy of one of the partners, — or, semble, by his conviction for felony. But an assignment by one of the partners, (d) Cox V. Hickman, & H. L. Ca. 268. [e) 53 & 54 Viot. c. 39, s. 2. (/) 53 & 54 Vict. 0. 39, 8. 24. (g) Robinson v. Ashton, L. R. 20 Eq. 25. (A) Moore v. Euight, 1891, 1 Ch. 547. \i) Lowe T. Dixon, 16 Q. B. D. 455. (A) King v. Chuck, 17 Beav. 326. [l] Daw T. Herring, 1892, 1 Ch. 284. (»») Clark V. Zeach, 1 De G. J. & S. 409. G g2 452 THE ORIGINALLY CONCUEEENT JDEISDICTION. ^(2) By agree- ment of the parties. (3) By decree of Court, — on sufficient grounds. although it used to operate to determine the partner- ship (w), will not now so operate (o). (2) Secondly, By'Mutual Agreement, — That is to say, if all the partners agree to dissolve; and by virtue of a clause in the articles, an effective notice of di8S.olutioii may also be given by one or more of the partners without the consent of all (p), — In which latter case, the Court will (where necessary), compel the other partners to sign a notice of dissolution for the Gazette (q): Also, any part- nership, the duration of which is indefinite, may (by notice) be dissolved by any partner at any moment he pleases, — provided lOnly he be acting honestly in giving the notice (r); but the Court would (in such a case) restrain an immediate dissolution of the partnership, if irreparable mischief might ensue therefrom (s) : Also, a partnership may, without any notice to dissolve it, merely expire by the accomplishment of the object for which it was established; and {e.g.) a mining partnership (not uncommonly) endures only during the term of the mineral lease (i). (3) Thirdly, By Decree in Equity, — And as regards this mode of dissolution, it has been enacted (by the Part- nership Act, 1890, s. 35), that the Court may dissolve the partnership, wherever it is ^' just andequitahle" to do so: Also, under that Act (and even apart from that Act), the Court will decree a dissolution, on the divers specific grounds following, that is to say: — (1) Where the partnershijD has originated in fraud or oppression (m) ; (2) Where one partner grossly misco'nducts himself in reference to the partnership (acting in persistent breach of the partnership articles (x)); (3) Where one of the partners persists in carrying on 'n) Heath v. Sansom, 4 B. & Ad. 172. o) Garwood v. Paynter, 1903, 1 Ch. 236. p) Sally. Bait, 12 Beav. 414. q) Eexilrij v. Turner, 32 Ch. Div. 335. V) Neilson v. Mossend Iron Co., 11 App. Ca. 298. s) Lery v. Walker, 10 Ch. Biv. 436. t) Burden \. Barkus, 4 De G. P. & J. 42. u) 63 & 54 Viot. 0. 39, s. 41. 'x) 53 & 54 Vict. 0. 39, s. 35. PARTNERSHIP. . 463 tlie business in a manner totally different from that agreed on(?y); (4) Where a partner, who ought to attend personally to the business, permanently absents himself from it, or beoomes so engrossed in his own private affairs as to be unable to attend to it (2) ; and (5) Where the disagreements between the partners are so great as to render it impossible to carry on the busi- ness, — all mutual donfidence being destroyed (a). In the ease of a dissolution by the Court, the dissolution, usually takes effect from the date of the decree (&); but if the dissolution is on the ground firstly above mentioned, the dissolution will be as from the commencement of the partnership (c) . Where la partner, who is required to contribute his per- Dissolution on sonal skill to the business, becomes insane, equity may msamty of ° on ;the ground of the insanity dissolve the partnership (d) ; tlie partner _ or the Court will restrain the insane partner from inter- indispensable;- fering in the partnership business (e). Where a dissolution has taken place, an account will be Account, only- decreed, and (if necessary) a receiver appointed; but an tlon — oi°on'a< account will not be decreed, or a receiver appointed, unless ease for a with the view to a dissolution (/), — ^excepting that where the conduct of a partner has been such as would entitle bis co-partner to a dissolution, an account (up to the time of commencing the action) may be decreed without a dis- solution {g) . Upon a dissolution, the Court will (in a proper case) Terms of order the defendants to repay to the plaintiff a due pro- ^^to^^etumTf premium ;. (y) Waters v. Taylor, 2 V. & B. 299. («) Smith Y. Mules, 9 Hare, 656. («) Watney v. Wells, 30 Beav. 56. (b) Lyon V. Tweddell, 17 Ch. Div. 529. (c) Sawlins v. Wickham, 1 Giff. 355. (d) Rowlands v. Evans, 30 Beav. 302. \e) J T. 8 , 1894, 3 Ch. 72. (/) Taylor v. Neate, 39 Ch. Div. 538. (j) Hairthorne v. Weston, 3 Hare, 387. ■|54 THE OEIGINALLY CONCURRENT JURISDICTION. portion of any premium paid by him as the price of his having beoom© a partner {h) ; but if that relief is desired, a iease must b© made for it at the trial of the action (i), — and Tiot (except in very exceptional cases) afteTwards Qc). ana generally : Iq settling th© acoounts between the partners on a dis- solution, the provisions in that behalf contained in the partnership articles must, generally, be oberved, — includ- ing the provision (if any) which makes the " last signed " account conclusive (Z), and including the option-clause (if any) which gives to either partner the right to purchase the share or shares of the other partner or partners (m) : And, subject to th© relevant provisions (if any) contained in the partnership articles, the provisions applicable upon the dissolution, ar© those contained in s. 44 of the Part- nership Act, 1890, — that is to say: Firstly, the losses of the partnership (including losses and deficiencies pf capital) are to be paid or made good, — Sail., first out of profits, next out of capital, and lastly by th© partners indi- vidually according to their respective proportions of the profits; And Secondly, th© asisets (including the sums, if any, contributed by th© partners to make good the losses aforesaid) are to be applied: — (1) In paying the outside debts and liabilities of the partnership ; (2) In paying all advances made by the partnerg beyond their capital; and (3) In paying out the capital of th© partners; And after all such payments made, th© ultimate residue (if any) will be divided among the partners as profits in the proportions in which the profits are divisible (n) : But, if the dissolution is proceeding under an order of the Court, the payment of the costs of the action will be pro- vided for before repayment of their capitals to the part- (A) BelfieUv. Bourne, 1894, 1 Ch. 521. (i) Wihon v. Johmtmie, L. R. 16 Eq. 606. [h) Edmonds v. Robinson, 29 Ch. Div. 170. [l) Sunter v. Sowling, 1893, 1 Ch. 391. (m) Watts V. Driscoll, 1901, 1 Ch. 294. (») Gm-ner v. Murray, 1904, 1 Ch. 67. PARTNERSHIP. 455 ners, these ooets falling on the respective partners in pro- portion to their shares in the partnership (o). A partnership, expiring on death, effluxion of time, or Parser bankruptcy, does not really expire until the partnership' ^yantegeout affairs have been wound up (p): And in the winding up, of the partner- the partner or partners who continue the business are accountebleto accountable to the others, — not merely for the ordinary other partners, profits, but for all (if any) the advantages accruing from the business (g) ; and, if there are no such profits, the partner or partners who shall have so continued the busi- ness will, in general, have no remuneration for his or their trouble (r), — but only their just expenditure (s). There is no fiduciary relation between the surviving Eepresenta- partner and the representatives of a deceased partner, — ^™^°*j so that the rights of the representatives being mere legal partner have rights, the Statutes of Limitation will be applicable (i), no lien. ■ — Excepting that these statutes, in a case of fraud, run only from the date of the discovery of the fraud (u). Also, the representative of a deceased partner have no lien on the partnership estate, — Which estate accrues, therefore, in its entirety (both at law and in equity) to the surviving partner or partners, — So that the surviving partner or partners may mortgage the partnership assets, and either for a present partnership advance (x), or for a jjast partnership debt {y), and so as to give the mort- gage priority over the rights of the deceased partner's estate (z) . But bankruptcy is unlike death in the^e particulars, — Valuation in the bankrupt partner's share vesting in the trustee of the ^™en*a^d*' bankruptcy, — and that notwithstanding any clause to the when not? contrary in the articles of partnership (a) : It is, how- (o) Soss V. White, 1894, 3 Ch. 326. ( p) Crawshay v. Collins, 2 Russ. 344. \q] Clements v. Ball, 2 De a. & J. 173. (r) AUridge v. Aldridge, 1894, 2 Ch. 97. (s) Burdon v. Barkus, 4 De G. P. & J. 42. (i!) Enox V. Gye, L. R. 5 H. L. 656. («) Betjeinann v. Betjemann, 1895, 2 Ch. 474. \x) Buoi art v. Dresser, 4 D. M. & G. 542. {y) Bradford Bank v. Cure, 31 Ch. Div. 324. (z) Bourne v. Bourne, 1906, 2 Ch. 427. (a) Collins v. Barker, 1893, 1 Ch. 678. *56 THE ORIGINALLY CONCUEEENT JURISDICTION. ever, lawful, semble, to pay to the trustee in the bank- ruptcy the bankrupt's share at a valuation (b), — just as (in the case of a private limited company) the compul- sory purchase of that share at a fixed price would be lawful (c) : And otherwise a sale (and not a valuation) must be made (d) . Judgment As regards realising- out of the partnership assets a for, onpiSt?'^ judgment obtained against an individual partner, in lieu ler's share, of execution issuing on such judgment, the Court may of suciToharge! '^ow make an order charging the partner's share with the separate judgment debt and with interest thereon; and the Court may also appoint a receiver towards the reali- sation of the charge, — Every such charge having the same effect as a voluntary charge given by the judgment debtor (e), and being subject to the solicitor's lien (if any (/)), and to the state of the accounts between the judgment debtor and his co-partners (gr). In equity, land The share of a deceased partner is his proportion of asS^f t^ the partnership assets after all the debts are paid, and it partnership is is only that which piasses to his legal representatives(fe), money. — ^^ ^^ ^^^ purchaser (or mortgagee) of the share(«) : And inasmuch as a sale is necessary in order to ascertain the share, therefore (in equity) the share must (as between the real and personal representatives of the deceased partner) be deemed to be personal (and not real) estate (/c) : And not only are lands purchased out of partnership funds for partnership purposes treated in equity as personalty, but the rule is the same, even where the lands have been acquired by devise, — provided the devised lands have "been involved in the business" (l). But, under special circumstances, the lands may still remain real estate of the deceased partner (ni), — and (in (S) Whitmore t. Mason, 2 J. & H. 204. (c) Borland's Trustee y. Steel Brothers, 1901, 1 Ch. 279. {d) Burdon v. Barkus, 4 De G. F. & J. 42. (e) Broton Janson ^- Co. v. Hutchinson, 1895, 1 Q. B. 736. (/) Ridd T. Thome, 1902, 2 Ch. 344. (g) Garwood M. Paynter, 1903, 1 Ch. 236. (/») Noyes v. Crawley, 10 Ch. D. 31. (j) Sodson v. Downey, 1901, 2 Ch. 620. [Ic] Bavies v. Savies, 1894, 1 Ch. 393. (l) Waterer v. Waierer, L. R. 15 Eq. 402. {m) Balmain v. Shore, 9 Ves. 500. PARTNERSHIP. 457 favour of a specific devisee) will, usually, so remain, — at least, when the partnership is solvent (w). As regards the partuerehip debts, — being debts the Creditors may liability for which accrued before the death of the oidec^seof deceased partner(o), but not otherwise(p): — The creditors go\|ainsr may either pursue their legal remedies against the sur- survivor or vivors, or (at their option) resort in equity to the estate estate of of the deceased (g) ; but the estate of the deceased partner deceased : will be discharged by any long delay in proceeding against it (r) . The liability of partners, although sometimes called a (i) Separate joint and several liability (in respect of every matter creditors being falling within the scope of the business), differs in im- separate estate portant particulars from a ioint and several liability (s), i^rforepartner- mii-i iji II o 1 ^'"■V creditors. — inat is to say, although the separate estate ol the deceased partner is liable, yet it is liable only as for a joint debt: Consequently, the separate creditors of the deceased partner are entitled to be paid their debts (in full), before the creditors of the partnership can claim' anything, from his separate estate (i); and if a partner- ship creditor should (as he may) institute proceedings for the administration of the estate of the deceased partner, and (his debt being a joint debt only) there is a constat at the hearing, that the separate estate will leave no surplus (after payment of the separate creditors), his action will be dismissed (u). Also, a creditor of the partnership, who is indebted to the deceased partner individually, cannot (in an administration of the deceased partner's estate) set off his separate debt against the joint debt due to him (x) : But a joint debt, which has been contracted in fraud of any of the partners, may (at the option of the creditor) be treated either as a joint or as a separate debt (y) ; and such a debt may also (under the n) BrettellY. SuUand, 1907, 2 Ch. 88. o) Court T. Berlin, 1897, 2 Q. B. 396. p) Bagel v. Miller, 1903, 2 K. B. 212. q) Matheson t. Ludwig, 1896, 2 Ch. 836. V) Way T. Barrett, 5 Ha. 55. s) Kendall v. Samilton, i App. Ca. 538. t) Hx parte Wilson, 3 M. D. & De &. 57. u) Edwards v. Barnard, 32 Ch. Div. 447. x) Stephenton v. Chisrvell, 3 Ves. 566. y) In re Davidson, 13 Q. B. D. 50. 458 THE OKIGINALLY CONCUEKENT JURISDICTION. special circumstances of the case) be and continue a separate debt only, without any option in the creditor (^:) . But debts arising on " distinct contracts " may be en- titled to a sort of " double proof " (a), — i.e., against both the joint and the separate estates concurrently. (2) Partner- The joint Creditors have, of course, a right to be first b^Sg p^d°out ^^^^ ^^'^'^^^ ^^^}^ "^"^ °^ ^^^ partnership funds (before the of partnership Separate creditors receive anything), — and that, even S^arlte*"''^ although the partnership should be ostensible only (6); creditors. and this preference is commonly stated to result from the equity of the co-partners over the ivhole fund (c) . But the executors of a deceased co-partner (who was also a creditor of the firm) cannot, in general, prove in com- petition with the outside joint creditors (d), — but they come in next after these outside creditors (e) : Also, persons who (without becoming partners) lend money to the partnership, upon an agreement to receive a share of the profits in lieu of interest on the loan (/), — or who are entitled to receive a share of the profits, in respect of their having sold the goodwill of the business to the partner- ship (g), — are (in the case of the bankruptcy or insolvency of the partnership) postponed to the other partnership creditors. Goodwill, — an asset. Goodwill, — assignment of, when neces- sary. The goodwill of the business is, in general, an asset of the partnership (h), — unless it is a merely personal good- will (i) ; and, accordingly, on the retirement of a partner, the assignment which he executes should expressly ex- tend to assigning the goodwill, — so as to pass the right to use the name of the retiring partner in the partnership style (/c) ; and should contain also a clause restraining the retiring partner from starting any rival business (I). (s) British Homes v. Paterson, 1902, 2 Ch. 404. («) In re Parkers, 19 Q. B. D. 84. (b) Hx parte Sly the, 16 Ch. Div. 620. (c) Laeey v. Sill, 4 Ch. Div- 537. (d) Sx parte Andrews, 25 Ch. Div. 505. («) Nanson v. Gordon, 1 App. Oa. 196. (/) In re Mason, 1899, 1 Q. B. 810. \g) 53 & 54 Vict. c. 39, s. 3. [h) Vernon v. Eallam, 34 Ch. Div. 749. (i) Cooper v. Metropolitan Board of Works, 25 Ch. Div. 472. (k) Thorneloe v. Hill, 1894, 1 Ch. 569. [I) Churion v. Douglas, 1 John. 104. PARTNERSHIP. 459 t And, as regards goodwill generally, it is now well Goodwill,— settled, that (in the absence of some express provision survival of, to the contrary) the vendor of it may set up a rival of partnership, business (m), — but not bo as to solicit or canvass the term,— customers of the old business (n), — Which rule applies also, where (under a special provision in that behalf con- tained in the partnership articles) the goodwill belongs (on the expiration of the partnership) to either of the partners exclusively (o) : Also, although, upon the death of and upon a partner, where the partnership articles provide that the ^^^^ °* business shall be carried on by the surviving partner or partners, the estate of the deceased partner is not en- titled to receive anything from the partnership in respect of the goodwill (p'), — Scil., specifically; still the goodwill is an asset of the partnership, — and is to be valued as such (q) . By the Limited Partnerships Act, 1907.(7 Edw. VII. Limited part- c. 24), on and after the 1st January, 1908, any number of constitation persons (not exceeding 10 for banks, or 20 for other of; also trades) may enter into a "limited partnership," — one or ^"^ '®^°' more of them (called the " general partners ") being liable for all the partnership debts and liabilities in the way usual at present, and the others of them (called the " limited partners ") teing liable therefor to the extent only of their capital actually in the business (s. 4): But the partnership must (for this purpose) be registered (s. 6), with the registrar of companies (s. 15), — the divers specified particulars (ss. 8, 9) being sent to him; and he issues his certificate of the registration (s. 13): Also, a general partner may be converted into a limited partner, — the due advertisement of that alteration being first notified in the Gazette (s. 10): But a limited partner may not withdraw his capital, or any part thereof (s. 4, sub-s. 3); nor may he interfere in the management of the business (s. 6, sub-s. 1); but he may (with the consent of the general partners) assign his share (s. 6, sub-s. 5), ■ — and the partnership will not be dissolved by that (s. 6, (»») Cruttwell V. Lye, 17 Ves. 335. («) Trego v. Sunt, 1896, A. C. 7. (o) Jennings v. Jennings, 1898, 1 Ch. 378. [p) Bunter v. Dowling, 1895, 2 Ch. 223. (?) Sill V. Fearis, 1905, 1 Ch. 466. 460 : THE ORIGINALLY CONCURRENT JURISDICTION. sub-s. 5), — nor by his death, lunacy, or bankruptcy (s. 6, sub-s. 2): And subject to the distinctions above specified, a limited partnership is like any other partnership (s. 7), — Excepting that it may be wound up, compulsorily, under the Companies Act, 1908 (r), and in acoordanc© with the Limited Partnerships (Winding up) Kules, 1909 (s). When a Apart altogether from the Limited Partnerships Act^ a partner,-' ^^^'^' ^^^^'^ ^^J ^^ * ^^^^ °^ limited partnership: For save towards example, a father and son may trade as partners (so as third:persons ? (.(j jjg liable as such to the outside world), — and yet inier se may not be partners at all, or entitled or liable as such (t). ()■) 8 Edw. VII. 0. 69, 8. 267, (s) In re Bughes J Co., 1911, 1 Ch. 342. [t) Zaddiffe v. Rushworth, 33 Beav. 484. 461 CHAPTER VII. ACCOUNT. The action of ^account lay at the common law, in the Account, case of bailiffs, receivers, and the like (including guardians i^^°^d in^ in socage (a)); and by the law merchant, the action also equity, lay between merchant and merchant (fe); and the juris- diction in account at law and in equity is now co-ex- tensive (c). (1) Equity entertained actions for an account, where (i) Principal there existed a fiduciary relation between the parties, — !?subiectfto*' For example, in favour of a principal against his the Statute of agent (d) ; and the agent was required to account also Lmutations. for all the secret profits he might have made, — the law of the Court having been inexorable in that particular (e) : But an agent was entitled to plead the Statutes of Limita- tion in his defence (/), — Soil., in the absence of any ex- press trust (g) . Equity would also decree an account (a) Patentee against the infringer of a patent, — on the ground that f|f™* the patentee might adopt the acts of the infringer as the acts of his agent, — and in such a suit, he was required to elect between an account and damages (h): And the same rules were applicable in the case of tort-feasors generally, — the injured party being free to waive the tort, and to proceed for the profits made (i), excepting where the tort was a public wrong (fc) . Also, the assignee of (b) Assignee a patent might sue a licensee of his assignor for an yf^"|e. account (?), — Because, generally, a bailor may have an account (against his bailee) of any moneys received by (a) Co. Litt. 90 S; 3 & 4 Anne, c. 16. {!)) Co. Litt. 172 a; 11 Eep. 89. («) Sow V. Earl Wintertm, 1896, 2 Ch. 626, a^t p. 639. {d) Beaumont v. Boulthee, 3 Ves. 485. («) Parker v. McKenna, L. K. 10 Ch. App. 96. (/) Friend Y. Young, 1896, 2 Ch. 421. (g) Burdick v. Garrick, L. R. 5 Ch. App. 233. (A) Neilson v. Belts, L. R. 5 H. L. 1. (i) Zeeds (Duke) v. Amhurst, 2 Phil. 117., [k] Marsh v. Keating, 2 CI. & F. 260. ij) Bergmann v. M'MiUan, 17 Ch. Div. 423. 462 THE OEIGINALLY CONCURRENT JURISDICTION. (2) Cestui que trust against trustee. (2a) Mort- gagor against mortgagee. (3) Cases of mutual accounts between plaintiff and defendant. (4) Account in case of waste, — incident to injunction. the bailee as damages for a tort done to the bailee's pos- session, — ^^even where the tort is one, in respect of the commission of which the bailee would be in no way personally liable to the bailor {m). (2) Equity also exercised the jurisdiction in account, as between cestids que trustent and their trustees, and mortgagors and their mortgagees; and it was (and is) chiefly in these two last-mentioned relations that the accounts were (and are) taken in equity : And, as regards mortgagees, it is to be remembered, that the power of the mortgagee to sell implies a power in him to give the due receipts for the purchase-moneys (w), — ^accounting therefor to the mortgagor, excepting where the selling mortgagee has already (at the date of the sale) acquired the mortgaged property by adverse possession (o). (3) Equity also exercised the jurisdiction in account, where there were mutual accounts between the plaintiff and the defendant, — "mutual accounts" arising where each of two parties had received and also paid on the- other's account {p) . Also, any complication in the account would, in general, and independently of other circum- stances {q), have given jurisdiction to equity, — Although, now, under the Judicature Acts and the Arbitration Act, 1889, matters of account of the most complicated character may be (and usually are) referred to and taken by an official or other referee. (4) Equity also exercised the jurisdiction in account, where the matter to which the account was incident was wholly equitable, — for example, in the case of equitable waste ; and it has been commonly stated, that (until the Judicature Acts) equity had no jurisdiction to direct an account of legal waste, excepting always where the account was incident to other equitable relief properly claimed in equity (r): But, after Lord Cairns' Act (21 & 22 Vict. c. 27), an account of damages (or of profits in (m) The WinkJieU, 1902, P. 42. (n) Balfour \. Welland, 16 Ves. 151. (o) Johnson v. Mounsey, \\ Ch. D. 284. [p] Phillips V. FkiUips, 9 Hare, 471. (?) O'Connor v. Spaight, 1 Sell. & Lefr. 305. (»•) Jesus College v. Bloom, 3 Atk. 262. ACCOUNT. 463 lieu of damages) became an almost invariable incident to every injunction. It is ordinarily a good bar to the claim for an account, P''^**(f|or an^ that the parties have already in writing stated and settled account : the account, and have struck the balance; but, if there (i) Settled has been (in such stated and settled account) any mistake accident or fraud, — whereby the balance is incorrect, — equity will not suffer the account to be conclusive upon the parties: Wherefore, equity will, in some cases, direct the whole account to Jbe " opened," — i.e., taken de novo; and in other cases, will allow the account to stand, with liberty to the plaintiff to "surcharge and falsify" it: And here it is to be menSoned, that the effect of the liberty to surcharge and falsify is, to leave the account in full force as a stated and settled account, except so far as it can be successfully impugned by the opposing ' party, — the showing an omission for which credit ought to have been given being a surcharge, and the proving a purported payment to have been wrongly inserted being a falsification; and (as regards every item) the onus probandi is on the party surcharging and falsifying (s) . The Court is unwilling, after a long time has elapsed, ^o^q^eaoeucT'^ to open a settled account, — except in cases of manifest fraud {t), — and except as between a trustee and his cestui que trust (including a solicitor and his client («)): Also, a broker is (for this purpose) in a fiduciary relation to his client (x), — although a banker (y) or an assurance society (z) is not so. The defence of time (purely and simply) is also a good (3) Bar of defence, in general, to the action for an account, — the "^^' limit being six years (under the 21 Jac. I. c. 16, s. 3) as regards ordinary accounts (a), and being also six years (under the 19 & 20 Viot. c. 97, s. 9) as regards accounts between merchant and merchant (&). («) Pitt V. CholmondeUy, 2 Ves. Sr. 565. It) Banner v. Berridffe, 18 Ch. Div. 254. (w) Cheese v. Keen, 1908, 1 Ch. 245. (x) Bx parte Cooke, 4 Ch. Div. 123. {?/) FoUy V. Bill, 1 Phill. 405. (z) Webster Y. British Empire Assurance Co., 14 Ch. Div. 169. (a) Friend V. Tmmg, 1897, 2 Ch. 421. (i) Friend v. Tomig, su^ra. 464 THE ORIGINALLY CONCURRENT JURISDICTION. Accounts, although not taken in Kteral accordance with the contract of the parties, may be settled accounts not- withstanding. Account, — at the suit of one tenant against his co-tenant. Account, — as of a bailiil's possession. Accounts are often taken {e.g., between partners) with- out any very strict compliance with the articles regulating, the manner of taking the account; and the question then arises, how far the account (although not stated in a regular manner) is to be taken as a settled account, — and binding accordingly in the absence of fraud : And it appears, that the Court will hold the account (although irregularly taken) to be a settled account, if it appears that (under all the circumstances) the parties so intended, — For, being sui jufis, they may validly agree to varia- tions in the mode of taking the account (c) . When land is held by several owners as tenants in common, and one of them i* receiving the profits in ex- clusion of the others {d), — or is alone (and exclusively) working the mines within or under the land (e), — The remedy of the, other or others (in either of these two cases) is account and not trespass, — the remedy by eject- ment not being, of course, available in the absence of any ouster of title: Nor would the remedy by injunction be proper in the general case, — although sometimes it might be proper enough: And it is to be here noticed," that the remedy by account (in these cases) was first given by the statute 4 & 5 Anne, c. 16, s. 27,— the plaintiff charg- ing the defendant (the co-tenant) as his (the plaintiff's) bailiff, and waiving his tortious receipt of more than his due share (/). Infant's real estate, — case of : The adverse possessor of the real estate of an infant is also, in the general case {g), — but not invariably (h), — chargeable as a bailiff, and not as a trespasser or adverse possessor; and in the account against any such bailiff as aforesaid, — whether in the case of co-tenancies, or in the case of an infant's real estates, — all "just allow- andes" are made to the defendant (t) . («) Eolgate v. Shutt, 28 Ch. Div. 111. [i) Jacobs V. Seward, L. R. 5 H. L. 464. [e) Job V. Fotton, L. R. 20 Eq. 84. (/) Sturton V. Richardson, 13 Mee. & "W. 17. (V) Soibs V. Wade, 36 Ch. D. 553. (/j) Growther v. Orowther, 23 Beav. 306. (i) Kennedij v. Be Trafford, 1897, A. C. 180. 466 CHAPTER VIII. set-off; also, appropeiation of payments, — AND of securities. Section I. Set-Off. It is in accordance witli natural equity that two cross Set-off,— at demands or mutual debts should be sat off the one against *^' the other, and that the difference only between the two should be valid (a); but the common law required that the mutual debts should (for this purpose) be mutual con- nected debts (&), — and otherwise the respective creditors were required to sue in independent actions; and the " Statutes of Set-off " (c), whereby the common law right of " set-off " was enlarged, were only applicable where there was a bankruptcy. On the other hand, equity, by virtue of its general and in equitj'- jurisdiction, and quite apart from the Statutes of Set- off, granted relief in the cise of unconnected mutual debts where there was an ex's'ing debt due to B. from A., AND B. had become indebted to A. in the expectation that the new debt wouli be diseharged out of (or by means of) the existing debt (d), — a principle which appears to be applicable to a debt of which the defendant is the assignee merely, and was not the original creditor (e) . Also, generally, debts which had had a common origin would, in equity, have been set off against each other (/). But, even in equity, the mere existence of cross de- mands was not (of itself) sufficient to give the right of set-off (g), — unless the defendant showed some equitable (a) Green v. Fanwr, 4 Bmit. 2220. (41 Da'e v. So'Jet, 4 Burr. 2:33 ; Georff. v. Clagett, 7 T. R. 359. (c) 4 Anne, c. 17; 2 Geo. IT. «. 22 ; 8 Geo. II. o. 24. {d) Rnxburfihe V. Cox. 1 7 Ch. Div. o2f). (f) Bi-wetiy. White, 19. 0. 2 K. B. fi)3. (/) KeirfoiinoUand Stale v. Nen-f-mndlani B. C, 13 App. Oa. 199. {g) Saicson v. Samuel, 1 Or. & Ph. Itil. S. H II 466 THE OKIGINALLY CONCURRENT JURISDICTION. Set-off when and when not prevented by some inter- vening eqmty. Solicitor's lien, — how affected f ground for being protected against the full demand: For example, the assignee of a chose in action taking subject to the equities properly incident to the debt, took subject to the right of set-off (h) . Wherefore also, in equity, a set-off was prevented by some intervening equity; and a shareholder (e.g.) in a limited company, who was also a creditor of the company, was not allowed (in a winding-up of the company) to set off his debt against a call, the equity of the general creditors preventing the set-off in such a case (i) . But where the shareholder had for value assigned his debt, and the assignee (Jc) (being a parti- cular assignee (?)) gave the company notice of the assign- ment, — There, as against the assignee, the company had not, — and even a prior debenture-holder of the com- pany {m) had not, — a right to set off a call made sub- sequently to the notice (but only a call made previously thereto (n)). And an assignee of the debt would occa- sionally take free of the set-off altogether, — where {e.g.) the debt was negotiable (o). Also, the occupation rent with which a tenant in common in possession is charge- able, — and which (on a partition) will be set off against his share of the sale proceeds of the land, — cannot be so set off as against his mortgagee (p) . But a solici- tor's lien on costs will not, now, prevent the party liable to pay the costs from setting-off against them the amount of the debt recovered by him in the pro- ceeding (q) : And generally, damages may be set off against damages (r), and costs against costs notwithstanding the lien (s), — S'cil., where all the costs have been incurred in one and the same action or proceeding (i(), — and not otherwise (u) . (h) (*) (m) («) 3) (r) (») (<) (») Bankes v. Jarvis, 1903, 1 K. B. 549. Siram Maxim Lamp case, 1903, 1 Ch. 70. Christie v. Taunton, ^c. Co., 1893, 2 Ch. 175. In re Brown and Gregory, 1904, 1 Ch. 627. IVelson v. Faber, 1903, 2 K. B. 367. Christie's case, supra. Farmer v. Goy # Co., 1900, 2 Ch. 149. ffi«v. Hiekin, 1897, 2 Ch. 579. Pringle v. Gloag, 10 Ch. D. 676. Goodfellow V. Gray, 1899, 2 Q. B. 498. Farmer v. Goy # Co., 1900, 2 Ch. 149. David V. Rees, 1904, 2 K. B. 435. Bake v. French, 1907, 1 Ch. 428. set-off; also appropriation of payments, etc. 467 In bankruptcy {x), if there have been "mutual credits "Mutual mutual debts or .other mutual dealinqs" between the t^'^^^'l'~"^ r-,, , /••Til DanKTUptCT, Dankrupt and an.y other person (proving in the bank- &c.,— set-off ruptcy), the sum due from the one party shall be set off ty reason of. against any sum due from the other (y) ; and this rule extends to unliquidated damages arising in connection with a contract {z); and the right is available also, in the administration of insolvent estates {a), — and in the winding-up of companies (&). But the difficulty in all these cases, is to show that the credits debts and deal- ings have been (in fact) mutual (c), — semble, mutual in their first creation (d) . In the general ease, a joint debt shall not be set off Noset-oif, of against a separate debt (or a separate debt against a joint ^''ajgerent"^ debt) : And, as regards debts accruing in different rights, rights ; the rule is, that they shall not be set off (e), — although, under exceptional circumstances, they may be set off : For example, a debt owing by A. in son droit will be set off against a debt owing to A. in autre droit, where A. (besides being executor) is also residuary legatee, and the debt owing to A. as executor has become (in eSect) a debt owing to A. in son droit (f): Also, a debt owing to the administrator personally was set off against money with which the administrator as such was chargeable, the administrator being also residuary legatee, and the estate having been (in effect) " cleared" (g): And, lastly, where A. was a legatee, and A.'s husband was indebted to the testator, the executor was held entitled to retain the debt out of the legacy, — although A. might have asserted her equity to a. settlement out of the legacy (h), — which equity has priority over the right of retainer(z). (x) He G. IS. B., 1903, 2 K. B. 340. (y) In re Mid-Kent Fruit Co., 1896, 1 Ch. 567. (z) Elliott V. Turquand, 7 App. Ca. 79. (a) Sovereign Life Assitraneey, Dodd, 1892, 2 Q. B. 573. (S) Mersey Steel Co. v. Naylor, 9 App. Ca. 434. (c) In re Gedmey, 1908, 1 Ch. 809 ; Lord's Trustee's case, 1908, 2 K. B. 54. (d) Bennett v. White, 1910, W. N. 97. (e) Bishop v. Church, 3 Atk. 691. (/) Bailey v. Finch, L. R. 7 Q. B. 34. {g) Price T. Price, 11 Ch. D. 163. (h) Poulter v. Shackel, 39 Ch. D. 471. (i) super v. Oliver, h. E. 16 Bq. 481. H h2 468 THE ORIGINALLY CONCUIUiENT JUKISDICTION. or where Where money has been reoeived for a spocific purpose, Seofticany ^^ Cannot, of course, be applied for any other purpose ; and a appropriated; Solicitor (e.g.) may not apply such money in discharge of his costs (k), — even as regards any balance of the money which may remain over, after the specific purpose is answered (Z); but (under exceptional circumstances) a set-off may he allowed in such a case (m) . or where debts A set-off is Only available where an action would Stai°nsically lie(w); and therefore there can be no set-off of a non- different actionable claim against an actionable debt (o), or of an qua 1 les. ordinary executable debt against one that is exempt from recovery by execution (p), or of a debt which is statute- barred against a debt which is not statute-barred (g), or of money payable to A. B. on his (A. B.'s) death only against money dae from A. B. in his (A. B.'s) life- time (r). Nor may a legacy be set off against a mere liability incurred on behalf of the legatee (s), — except to the extent of any actual payment made (under legal compulsion) on account of the liability (t), and except to the extent of any actual appropriation for the legacy (m). Legacyagainst Where a legatee is a debtor, — Soil., a sole, and not a debt,— usually joint, debtor (x), — to the estate, he must, in general, first pay up what he owes (in respect of the debt), before he will receive anything (on account of his legacy (t/)), — even although the debt should be statute-barred (z) : Secus, if the legatee is not the debtor, but only the repre- sentative of the debtor (a) . Also, where the legatee (k) Stumrire\. Vamphell ^ Co., 1892, 1 Q. B 344. (T) In re Mid-Emt Fruit Co., 1896, 1 Ch. 667. (m) Ex paite Stephens, 11 Ves. 24. (k) Smith V. Betty, 1903, 2 K. B. 317. (o) Unuhy V. Ra'wleii, 1 Q. B. D. 460.- Ip) Giithm-colev. Smith, 17 Ch. Div. 1. Iq) Wnlker v. Clements, 1.5 Q. B. 1046. (»•) Hall U V. Halhtt. 13 Ch. D. 232. (.s) Lee T. Binnn. 1896. 2 Ch. 684. (0 Arlcorh V. Evans, 189S, 3 Ch. 34.T. (m) Erlg.ir\. riomley, 190i), A. C. 431. (x) Tarver v. Twnn; 1911, 1 Ch. 716. {y) Ciiuitenay v. Willimns, 3 Ha, 539. (z) Ci.aies V. Coates, 33 Beav. 249. (a) In re Bruce, 1908, 2 Ch. 682. set-off; also appropriation of payments, etc. 469 (A. B.) becomes a bankrupt after his right to the legacy whereiegatee- has accrued, the testator's executors may retain out of the ?®^?°'' \^_ legacy the amount of A. B.'s debt, — unless they shall when and have proved for the debt in the bankruptcy (6). But, 7''^'"'°*in,e when the legatee (A. B.) is a bankrupt already at the date set o°ff?"^ of the death of the testator, the executors may not retain, but can only prove and receive a dividend (on the debt) pari passu with the other creditors of A. B. (c); and, in such a case, if the insolvent legatee has meanwhile been released (by a composition in the bankruptcy), he is en- titled to receive his legacy in full (d) . Section II. Appropriation of Payments. If a debtor, who owes several debts to one and the same The three creditor, makes a general payment to him, the question (n^Dehtor has ^ arises, — To which of the debts shall the payment be first right to appropriated (or imputed): For instance, if A. owes B. appropriate;, two distinct sums of £100 and £100, and the earlier of the two debts is statute-barred, — If A. pays £iO0 to B. and that payment is imputed to the earlier debt, — B . can still recover from A. (by action against A.) the other £100: Or if A. owes B. two sums of £500 and £500, and C. is a surety for one only of them, — If A. pays B. £500, and that payment is imputed to the £500 for which C. is a surety, — C.'s liability will cease (e). And having regard to the importance of these distinctions, the following rules, applicable to the appropriation of payments, have been made, that is to say: — (1) The debtor has the first right to appropriate, — and he exercises this option at the time of making the payment (/); (2) If the debtor himself has not appropriated the (2) The ore- payment, the creditor is at liberty to appropriate it (gr), — ■ ditorhas th^ and he need not make an immediate appropriation, but appropriation ; (b) Se Rowe, 1906, I Ch. 1. \c) Cherry v. Botilthee, i My. & Cr. 442. (d) In re Seuell, White v. Sewell, 1909, 1 Ch. 806. [e) ClaytorCs ease, 1 Mer. 572. (/) A,'on„ Cro. Eliz. 68; Friend v. Young, 1897, 2 Oh. 421. {(/) Mutton V. Feat. 1899, 2 Ch. 556. 470 THE OKIGINALLY CONCURRENT JURISDICTION. (3) If neither ■debtor nor creditor makes the appropria- tion, the law makes it. Rule in Clayton^s ■case, — when applicable ? And when inapplicable ? may do so at any time before action (A), — or even, semble, in the course of the action (i) ; (2a) The creditor may not appropriate the payment to an illegal item in the account (fc) ; and where one of the two debts is statute-barred, and the creditor appro- priates the payment to the statute-barred debt, that will not revive the statute-barred debt {I) : And (3) Where neither the debtor nor the creditor has made any appropriation of the payment, the law appropriates it to the earlier of the two debts, according to what has been called the Rule in Clayton's case (to), — Where it appeared, that, on the death of D. (a partner in the bank), there was a balance of £1,713 in favour of C. on his current account with the bank; and after the death of D., the surviving partners became bankrupt; but (before their bankruptcy) C . had drawn out sums to a larger amount than the £1,713, and had paid in sums still more oonsiderable, — And the decision was, that the sums drawn out by 0. after the death of D. were {in relief of the estate of. D.) appropriated by the law to the pay- ment of the balance of £1,713, — So that D.'s estate was discharged from the debt due from the firm at his death (the sums subsequently paid in by C . constituting a new debt, for which the surviving members of the firm alone were liable) : And the decision proceeded on the ground, that {presumably) the first item on the debit side of the account was discharged {or reduced) by the first item on the credit side . The rule in Clayton's case is, however, only ap- plicable when there is, in fact, a current account between the parties (w), — and is not always applicable even then (o): Thus, where the current account is guaranteed by a third party, and the guarantee ends (say) by the death of the guarantor, and a sum of £1,000 is then owing on the account, — the estate of the guarantor remains (in general) liable for that amount, notwithstanding that the prin- cipal debtor may have subsequently paid in other moneys. (h) Smith y. Betty, 1903, 2 K. B. 317. (i) Seymour v. Piclcett, 1905, 1 K. B. 715. (k) Wright t. Laing, 3 B. & C. 165. (Z) Mills V. Fowhes, 5 Bing. N. C. 455. (m) 1 Mer. 585. («) Mutton V. Peat, supra. (o) Cory Brothers v. Mecca S.S. Co., 1897, A. C. 286. set-off; also appropriation of payments, etc. 471 especially if theee other moneys are carried to a new account Ip) . And, again, where the current account at the bank is made up partly of moneys belonging to thei customer in his own right and partly of moneys belong- ing to him as a trustee for divers classes of cestuis que trustent, — paid in at different times indiscriminately, and drawn upon indiscriminately, — the rule (although it may apply as between the divers cestuis que trustent (q)) has no application as between the trustee' and the cestuis que trmtent,— the trustee not being permitted (as against any cestui que trust) to say, that what he has drawn out for his own purposes was not on account of his own fund (r) . And, nota bene, even if the trust fund is not capable of being ear-marked, it may (as against the trustee) be followed, — upon the principle, that the cestui que trust is entitled (as against his trustee) to a charge upon the whole for the part belonging to the trust (s). Section III. Appropriation of Securities. Where A. borrows money ;£rom B., and gives B. secu- The securities rities for the loan, A. is entitled (to the extent of these ch^gf^ securities) to be indemnified by B. against personal (a) Whether payment of the loan; and (subject thereto) B. may (in o^i^iiebt; general) deal with the securities, rendering to A. the sur- plus (if any) after payment of the loan; and B. may not (except by previous agreement with A.) so deal with the securities, as to deprive A. of the indemnity which is afforded him by the securities, — So that, to the extent that B. disposes of the securities, the loan (as between him and A.) is discharged: Also, where A. borrows from or (b) Suc- B. on sucoessivie loans, and gives successive securities to cessive debts. B. to provide for the payment of the loans, A. is deemed to have appropriated the successive securities to the suc- cessive loans; and the successive loans are successively discharged by the realisation of the successive securities respectively appropriated thereto. (p) House V. Bradford Bank, 1894, 2 Ch. 32. (q) Woodv. Stenning, 1895, 2 Ch. 433. (r) Ex parte Dale # Co., 11 Ch. Div. 772. (s) In re Oatway, 1903, 2 Ch. 356. 472 THE OEIGINALLY CONCURRENT JURISDICTION. Appropriatiou of "short AtMs " towards meeting "aocept- Only where both drawer and acceptor become bankrupt. The practice of successive borrowings on successive securities is very usual among merchants, — For example, A. draws bills on B., and B. accepts the bills, on the faith of A. sending (and A., in due oours3, sends) to B. secu- rities {i.e., remittances) in the form of "short bills," — the intention being that B. shall negotiate these short bills, and apply the proceeds in providing for his accept- ances, — which application of the proceeds both discharges B. as acceptor and indemnifies A. as drawer: And (in such a case) if A. and B. should both of them go bank- rupt (t) or become insolvent (m), while any of B.'s accept- ances are outstanding, the short bills which then remain in specie (in the hands of B.) are properly applicable (according to their appropriation) in or towards pro- viding against B.'s acceptances, — and so relieving both the estate of B. and the estate of A. The principle of the thing is the adjustment of the equities between the respective estates of A. and B., — and the principle is extended in favour of any third parties who may, at the time of the double bankruptcy or insolvency, hold the acceptances of B., — So that these holders also of B.'s acceptances (and who are called the bill holders) can insist on the short bills which nemain in specie in B.'s hands being applied in or towards payment of the acceptances. Where no But it is to be observed, that the rule in question bankniptoy,— (commonly called the Rule in Ex parte Waring) is application of only applicable, when A. and B. are both of them bank- bffls'.'"^'^°'^ rupt (or insolvent): And therefore, Fii-stly, if B. alone is bankrupt (or insolvent), and A. is not {x), — the bill- holders prove against B.'s estate, on his liability as acceptor and get (say) 3s. 4d. in the pound, and thereafter obtain payment of the residue of their debt (16s. 8d. in the pound) from A. on his liability as drawer; And, Secondly, if A. is bankrupt and B. is not, B. discharges his acceptances in full and applies the short bills (as his own property) to the extent of what he has had to pay on his acceptances {y) . {t) Ex parte Warwi/, 19 Ves. 34.5. (u) routes V. H'irgreares, 3 De G. M. & Gr. 430. [x) In re Holdero, 19 Vps. 25. (2/) In re Barned's- Bankuig Co., L. R. 19 Eij. 1. set-off; also appropriation of payments, etc. 473 Also, generally, so long as both A. and B. are where neither solvent, the bill-holders cannot interfere with what B. t^i^pt,— may choose to do with the securities, — even although application of appropriated, — the appropriation being only as between biUs'MnsDch A. and 'B.(z); but (by special agreement with the a case, bill-holders) the appropriation might (even in such a case) be extended in their favour (a), — the specific special appropriation being, of course, proved (&). (s) Banner v. Johnston, L. E. ■'5 H. L. 1&7. (a) Agra and Musterman's Bank, Re, Ij. E 2 Ch. App. 391. (h) Brown Shipley f Co. t. Eoiigh, 29 Ch. Div. 848. 474 CHAPTEE IX. SPECIFIC PEEFOEMANCE. Inadequacy of gy (.j^g common law, a Contract to sell or transfer a thinff remedy atlaw, ' i i. i ground of was :trea-,t©a as a. merely personal contract, laad lor the breach of which damages (and damages only) were re- coverable; but, in equity, the due performance of the contract itself would (in many cases) have been enforced, — and that upon the ground of the inadequacy of the damages recoverable for the breach. equity juris diction. Contracts or agreements, which equity will not decree specific per- formance of: — (1) Illegal or immoral contracts. Equity would not, of course, compel the specific per- formance of an agreement which was immoral (a), or contrary to the law of England (6); nor would damages even be recoverable in either of these two cases (c) . But a separation agreement (where the separation is imminent and not merely prospective) is now considered neither illegal nor immoral {d), — and will be enforced (e): Also, a married woman may lawfully bind herself .by a compromise in divorce proceedings (/) : Also, her separation agreement will be enforced against her (g), — Scil., unless where the husband (by his own wilful breaches of the covenants on his part contained in the agreement) has disentitled himself to that relief (h) ; but, if (and so far as) the separation agreement is (or becomes) illegal, it will not be enforced (i) . But a covenant to resign a church living would not have been enforced (k) . (a) Bwing v. Osbaldiston, 2 My. & Cr. 53. (i) Sope V. Hope, 8 De G. M. & G. 731. (c) Spieer v. Sunt, 1908, 1 K. B. 720. (d) Weister v. Webster, 4 De G. M. & G. 437. (e) Sart v. Bart, 18 Ch. Div. 670. (/) Cahillv. Cahill, 8 App. Ca. 420. Ig) Besant v. Wood, 12 Ch. Div. 605. {h) Kennedy v. Kennedy, 1907, P. 49. (i) Cartioright v. Cartwright, 3 De G. M. & G. 982. (k) Newdigate v. Helps, 6 Madd. 133. SPECIFIC PEKFOEMANCE. 475 Equity will not specifically enforce an agreement which (2) Agree- is merely voluntary (Z), — ^^or which is determinable at "Sid^tion, will (to) ; But an agreement for a year to year tenancy —or which are will be entoroed {n). determinaWe. The incapacity of the Court will sometimes limit its (3) Contracts jurisdiction to compel the specific performance of an agree- q^^^ cannot ment, — For example, where the agreement is to do acts enforce, involving personal skill (o), or is to do contiauous succes- (a) Contracts sive acts (p), — although the Court will, in a proper case, gonaU^^or" decree the execution by the defendant of a covenant to continiious do the acts, and the plaintiff will then from time to time ^'i"^''^^^'™ recover damages from the defendant, for every successive breach by him of his covenant (g) : Also, in the case of con- (b) Contracts tracts to build or to repair, the remedy by specific perform- *° ^^^^ ^ ance is usually not needed, the remedy in damages being sufficient (r) ; but where the building agreement is defi- nite in its nature, being (e-g.) for the construotion of a railway siding (s), the Court will occasionally enforce it (t), — as where the plaintiff would otherwise be remedi- less (m), not being himself able, ivithout a trespass, to execute the building contract otherwise than through the defendant (x) . In general also, where an agreement comprises two or (") Non- more matters, only some of which are specifically enforce- contracts,— able, the Court will not enforce these latter, where they are whenoniypart dependent on the others (y) . But where a building agree- specifically ment provided that the lessor should grant leases, piece- performaWe. meal, to the builder (or his assigns), upon the completion of the buildings on the several plots, — and the conditions {I) Jefferys v. Jefferys, Cr. & Ph. 141. ■ [m) jkercy v. Birch, 9 Ves. 357. \n) Lever v. Koffl-er, 1901, 1 Ch. 543. (o) LumUy v. Wagner, 1 De G. M. & G. 604. [p) JBlackett v. Bates, 2 H. & M. 270. \q) Wilson v. West EarOepool E. C, 2 De G. J. & S. 475. (r) Ryan v. Mutual Tontine, 1893, 1 Ch. 116. (s) Greene v. West Cheshire R. C, L. B. 13 Eq. 44. (t) Mohineux v. Richard, 1906, 1 Ch. 34. (m) Wilson V. Fm-ness R. C, L. R. 9 Eq. 28. Ix) Fortescue v. Lostwithiel R. C, 1894, 3 Ch. 621. {y) Ogden v. Fossick, 4 De G. E. & J. 426. 476 THE OEIGINALLY CONCUEEENT JURISDICTION. as ho building on one plot had been fulfilled, — The Court enforced the agreement to grant a lease of that plot, notwithstanding that (as regards the other and unbuilt-on plots) the Court could not specifically enforce the agree- ment to build thereon (^;). And, again, where some of the terms of an agreement are legal and the others are illegal, if these latter are clearly severable, the Court will (or sometimes will) enforce specifically the terms which are legal (a) . Contracts in restraint of trade, — modi- fication and enforcement of. As regards contracts in restraint of trade, — If the limits of the restraint are (in the opinion of the judge) unreason- able, the Court will (if it can) give 'the restraint a reason- able limit, and enforce it accordingly (6), — although, as a rule, if a contract is to be spesifically enforced at all, the whole of it is to be enforced (c) . (4) Agree- ments for a reference. As regards agreements for a reference, — Equity will not directly enforce (nor would a Court of law have directly enforced) an agreement to appoint an arbitrator (d), — although, indirectly (^.e., by staying the action) the Court enforces such an agreement. (6) Contracts Equity will not, in the general case, specifically enforce for the loan of i. j. j? i.T i i? i ^i i. money. ^ Contract tor the loan oi money, whetlier on mortgage or without any mortgage (e), — excepting that a contract to take the debentures of a company may now be enforced (/) . (6) Contracts wanting in mntaality. Also, a contract, in order to have been specifically en- forceable, must have been mutually binding, — and where the purchaser (of, e.g., a patent) could enforce specific performance, the vendor on his side also would be able to enforce specific performance (gr) : And, conversely, if the purchaser could not, the vendor should not, specifically (s) Wilkinson v. Clements, L. R. 8 Ch. App. 96. {a) Ode.'.sa Tiamwnys Co. v. Mendel, 8 Ch. Div. 235. {*) Dubouski V. Goldstein, 1896, 1 Q. B. 478. (c) Stacker v. Wedilertmm, 3 K. & J. 393. (rf) In re Smith and Service, 25 Q. B. D. 545. («) Sichelv. Mi'sentlial, 30 Beav. 371. (/) 8 Edw. Vir. c. 69, a. 105. (^) Cogent V, Gibson, 33 Bear. 557. SPECIFIC PERFORMANCE. 477 enforce the contract (h), — Therefore, an infant cannot compel specific performance, — Scil., because the Court will not compel specific performance against him {i); and, an infant's apprenticeship deed even is not enforced in equity (Jc\ — because it is enforc-eable before the jus- tices {I), — Sail., during the infancy, and only during that (m) . But a married woman might have obtained specific performance of her contract, — although the con- tract (being unacknowledged) was not, strictly speaking, binding on her (w) ; and the plaintiff (the vendor) might have had specific performance against a married woman purchaser (o). Also, a plaintiff may obtain specific per- (7) Contiuots formance of a contract signed by the defendant, although ^^en a^'**"^' not signed by himself, — the Statute of Erauds only re- writing is quiring the agreement to bo signed by " the party to he ^^I'l"^^"^- charged;" and (in such a case)' the plaintiff (by com- mencing the action) has made the remedy mutual: And note, that where a contract is by offer and acceptance, the offer in writing of the defendant may be accepted by word of mouth of the plaintiff (p), — or by telegram (g) : And when the acceptance is by letter sent through the post-office, it is complete the moment the letter is posted; but the withdrawal of the acceptance, if also by letter, is not complete, until the letter of withdrawal is received (r). And here note, that when the offer is of two alternatives, the acceptance should specify vi'hich of the two alternatives is accepted (s) . Lastly, equity will not specifically enforce a contract (8) Contract (by the donee of a power) to appoint (by will) to any ^t'tolke particular individual {t), — not even where the contract is particular appointment. (A) Fnrrer v. Nnsh, 35 Beav. 171. (i) Flight -v. Bnlland. 4 Russ. 301. (i) T)e Franc'sro v. Bariitim, 45 Ch. Div. 430. (l) Green v. Thompson, 1889, '^ Q. B. 1. (m) Goddv Tkompsm. 1911, 1 K. B. 364. (k) Sugd. V. & P. 14th ed., p. 217, citing Armiger v. Clarice, Burr. 166. (o) Phard V. Jlm'^. L. R. 5 Ch. App. 274. \p) Lover V. KoVer, 1901, 1 Ch. 54S. (q) Gndwin v. F-nneii, L. R. 5 C. P. 295. (r) Henthnrn v. Fraser, 1892, 2 Ch. 27. ' (s) Zerer v. Koffler, .vipra. {t) Hill V. Sehtvan, 1892, 3 Ch. 510, 478 THE ORIGINALLY CONCUEEENT JURISDICTION. for value (m) ; but the party will be left to his remedy in damages for the breach, the damages being supposed to be sufficient. Division of subject, — according as the property is realty or is personalty. Where the Court decrees the specific performance of a contract, it proceeds not upon any mere distinction between land and goods, but simply upon the ground that the damages recoverable at law will not (in the particular case) afford a complete remedy, — So that, even in the case of goods, if the damages would be inadequate, the Court will enforce a contract regarding them : I. Contracts respecting personal chattels, — speciiic per- formance of :— (1) Shares in a railway company. (2) Assigned dehts under a bankruptcy. (3) Bare and beautiful articles. (4) Heirlooms and other chattels of peculiar value. (5) Trust stocks, — and trust goods generally. Thus, specific performance will be decreed of an agreement for the sale and purchase of shares in a rail- way company (x) ; or for the sale and purchase of an annuity {y) ; or for the sale and purchase of debts prov- able in a bankruptcy, — ^and at the suit of either vendor (2) or purchaser (a), — Sdl., because the sale being of the uncertain dividends to become payable, the damages recoverable at law would not accurately represent their value. And the Court would also, and (especially since the 56 & 57 Vict. c. 71, s. 52) will, enforce a timber- purchase agreement (&), — and would, and will, issue an injunction in aid (c). Also, the Court would compel the specific delivery of articles of unusual beauty or rarity, on the ground that the damages are not an adequate com- pensation for their non-delivery (c?), — or the specific delivery up of heirlooms, on the same ground (e). The Court will also decree the specific performance of marriage articles, — where the marriage has been solemnised on the faith thereof, — Even where a bond is given by way of collateral security for the due performance of the articles, the damages recoverable on the bond not being deemed an equivalent (/) . Also, generally, where a fiduciary (m) Zaiser v. Lawley, 1902, 2 Ch. 799. \x) Duncuft V. AlbrecU, 12 Sim. 199. («/) Kenny v. Wenham, 6 Madd. 355. (a) Adderley v. Bixon, 1 S. & S. 607, 610. (a) Cogent v. Gibson, 33 Beav. 557. [b) Suxton v. Lister, 3 Atk. 385. {c) Jones V. Tmleermlle, 1909, 2 Ch. 440. (d) Falcke v. Gray, 4 Dre-w. 658. \e) Pusey v. Fusey, 1 Vern. 273. (/) Eobso-n V. Trevor, 2 P. Wms. 191. SPECIFIC PERFORMANCE . 479 relation subsisted between the parties, — whether it was that of agent trustee or broker, — the Court would compel a speoific delivery up of the stocks cargoes or other chattels {g). Contracts regarding lands differ greatly from con- H- Contracts tracts respecting goods, — Because the land may have a land,— peculiar value to the purchaser; and the Court therefore enforced, (almost invariably) decrees the specific performance of damages at contracts regarding lands: And the jurisdiction extends ^^'^^° to lands out of the jurisdiction, where the contracting parties are within the jurisdiction {h), and the action is against one of them personally (and not against his or her assignee of the contract (i)). The phrase " spe^fic performance" is commonly used Specific per- in two senses, that is to say: (1) In the sense of turn- thrtYro'senses ing an executory contract (sometimes called "Heads of in which the Agreement") into an executed contract, — by decreeing pii^ase is used, the execution of the document (usually a lease or con- veyance), which (in and by the executory contract) is provided for; and (2) In the sense of carrying out, in specie, the very act or thing itself which is in the con- tract. Now, it is the former of these two meanings pf the phrase, which is the more correct meaning, — Scil., in oases where the Court decrees the specific performance of the contract, as distinguished from cases where the Court merely procures (in effect) the specific performance of it by means of an injunction: For example, the execu- tion of the marriage settlement would be the specific performance of the marriage articles (fc) ; and where the agreement was for a lease, the execution of the indenture of lease would be the specific performance of that agree- ment (I). And in the lease executed in specific perform- ance of the agreement, all the agreed covenants, on the parts of the lessor and lessee respectively would be in- serted, — the question, as to whether any of these covenants (while being intended covenants only) had been already (g) Wood -7. Sowcliffe, 2 Ph. 383. (A) Perm v. Lord Baltimore, 1 Ves. 444. (i) Vincent v. Godson, 4 De G-. M. & G. 546. (k) SueJcle t. Mitchell, 18 Ves. 100. [I) Bankin v. Lay, 2 De &. F. & J. 65. 480 THE ORIGINALLY CONCUEEENT JUEISDICTION . Damages at law, — when nominal and when suh- stantial. Contracts iu writing, — ascertaiument and enforce- ment of. Where the sale is by auction. broken, being afterwards raised in an action on the actual covenant itself (to); although, occasionally (as where the intended covenant has been already broken, and the breach of it is patent and also serious), the Court will merely refuse to specifically decree the lease (k). The damages recoverable for the breach of a contract regarding lands, may be nominal only or may be sub- stantial, — being nominal only, in respect of a breach which arises only from a defect of title (o); but being sub- stantial, where the vendor is otherwise in default (p) . Also, even in respect of a defect of title, if the contract was not merely (as it usually is) " subject to an inquiry as to the title," but was with an actual " warranty of the title," the damages recoverable for the breach would be substantial in that case also (q) . On the other hand, the damages will sometimes be nil (r) . When the contract is required to be in writing, you may, for the purpose of ascertaining what the written contract is, read two or more documents (mutually com- pletory) together, whether the documents connect inter &e on the face of them, or their connection requires to be a little aided by extrinsic evidence (s.) ; and parol (or extrinsic) evidence is, of course, always admissible, for the purpose of identifying the particular land comprised in the contract. But, nota bene, the mere presence of the writing will not of itself make a contract, — unless the parties were also intending a contract, when they signed the writing (fi). When the sale is by auction, the auctioneer signing for the purchaser, after his implied authority to do so has ceased or been withdrawn, will not make a contract bind- ing on the purchaser (m) ; and if the auctioneer (without any authority from the vendor to do so) alters, at the time (ot) LiUie V. ler/h, 3 De G. & J. 204. («) Grfqory v. Wilson^ 9 Ha. 6^'i. (o) Jlnin v'. Fothergill, L. K. 7 H. L. 158. (p) Bnael V. Fiteh. L. R. 4 Q. B. 6.59. (q) Wall V. Cily of lond'ii R. P. Co.. L. R. 9 Q. B. 249. (r) Pease-n. Courtney, 1904, 2 Ch. 503. («) Tem-ee v. Gar/lner, 1897. 1 Q. B. 688. (t) rattle \. Hornibmok, 1897, 1 Ch. 25. (m) JBell V. Sails, 1897, 1 Ch. 663. SPECIFIC PERFORMANCE. 481 of the auction, the conditions of sale as finally settled, he will not make a contract binding on the vendor («), — Because, generally, the auctioneer must confine himself within the limits of his authority, if he is to make a binding contract, and otherwise the contract will not be tinding (?/), — ^unless where the excess is immaterial. Equity yiiW {occasionally) decree specific performance Cases in which of a contract which is not in writing, although required ll^ft^^'^f by the Statute of Frauds to be in writing : For although Frauds is that statute says no action shall be maintained on an teokenm agreement relating to lands which is not in writing, — ^ (a) if uucon- still the Court is in the daily habit of relieving, where scientious to the party seelcing relief has. be.en put into a situation, generally! which makes it generally agaiin'st conscience in the other party, to insist on the want of writing as a bar to the relief (z), — and also because the. statute {having been made to prevent fraud) cannot be perrnitted to be used as the engine of fraud {a) : Therefore, equity would en- (b) where the force specific performance of the • contract, where it was agreement's fully set forth in the bill and confessed in the answer (6), unless the the defendant being (in that case) deemed to have waived not^thstand- ' the writing (c); and if the objection was once waived, ing, insists it could not afterwards (by amendment) be revived (c?); 5'^i"'*'^'^f th and even if the wrong section only of the statute had' statute, been pleaded, the right section could not afterwards (by amendment) be pleaded (e). And, again, when the agree- mient was intended to have been put into writing, but (through a fraud in one of the parties) it was not put into writing, the want of writing was relieved against, if the contract was otherwise proper for specific perform- ance (/) : Also, where, upon a contract not in writing, the purchaser has paid a deposit on account of his purchase- money, and the vendor is ready and willing (up to the {x) Manser v. Back, 6 Ha. 443. (y) Chinnoeh v. Ely, 4 De G. J. & S. 638. («) Bond V. Sopkins, 1 Sch. & Lef. 433. (a) Davis v. Whitehead, 1894, 2 Ch. 133. (b) Ganter t. Halsey, Arab. 586. (c) James v. Smith, 1891, 1 Th. 384. (ct) Spurrier v. Fitzgerald, 6 Vea. 548. [e) James v. Smith, supra. (/) .Vaxwell V. Montacute, Preo. Ch. 526. I I 482 THE ORIGINALLY CONCUEEENT JUEISDICTION . (c) Where the contiuct is partly per- formed by the partj- seeking aid. Acts of pait- performance, — what are not? date of action) to complete, the deposit cannot be re- covered back {g) . Equity enforces specific performance also, where the parol agreement has been " partly performed " by the party praying relief, — Because, generally, where one party has carried out his part of tlie agreement (in the confidence that the other party will do the same), it is a fraud upon the former to suffer the latter to escape from the performance of the agreement {h) : And, as re- gards Part-Performance : — Acts which are merely ancil- lary to the agreement, — delivering (e.g.) the abstract of title, going to view the estate, making valuations, and the like, — are not acts of part-performance (being acts for which damages are an adequate compensation (i)); and even the payment of the whole purchase-money (/c), or (in the case of a weekly letting) of a wJwle week's rent in advance (Z), is not an act of part-performance. Also, acts of alleged part-performance must be referable to the agreement; and otherwise they are not acts of part- performance (m), — So tha,t{e.g.) mere possession of the land contracted for will not be deemed a part-perform- ance, if the possession be independent of the contract: Thus, where a tenant in possession sued for the specific performance of an alleged agreement for a lease, and set up his possession as an act of part-performance, but his possession was referable to his pre-existing character of tenant, the possession was held not to be a part-perform- ance (n) . Also, if a tenant from year to year of a farm continues in possession, and lays out monej's on the farm in the usual and ordinary course of husbandry, that is not a part-performance which entitles him to the specific performance of an agreement for a lease (o). And what are ? But if the possession has been delivered solely under and after the contract; or if the possession (although [g) Thomas v. Brown, I Q. B. D. 714. (A) Jervis v. Berridge, L. R. 8 Ch. App. 351. (j) Williams v. Walker, 9 Q. B. D. ."iTiJ. \k) Sughps V. Morris, 2 De G. M. & a. 349. (/) Thursby v. Beolcs, 70 L. J. Q. B. 91. (m) Lncon y. Merlins, 3 Atk. 4. {«) Wills V. Stradlitig, 3 Ves. 378. (o) Brennan v. Bolton, 2 l)r. & War. 349. SPECIFIC PEEFOKMANCE. 483 delivered before the contract) is continued subsequently to the contract, and the continuance of the possession is referable unequivocally to the contract (p) ; or if (in the case of an existing tenancy) the nature of the holding is made different from the original tenancy (as by the pay- ment of a higher rent (q), or by any other unequivocal circumstance referable solely and exclusively to the new contract (r)), — In either or any of these cases, the posses- sion will be an act of part-performance, and will take the case out of the statute, more especially where the party let into (or remaining in) possession has expended money on repairs or other improvements (5) . The doctrine of part-performance is not confined to land(^); but it is applicable exclusively to actions for specific performance (m) : And, therefore, if the contract should have become impossible of specific performance, the acts of part-performance will cease to be available, — and the plaintiff will not (in such a case) have damages even (x) . Marriage is not (of itself) an act of part-perform- Mairiage, not ance (y) ; but where a father (previous to the marriagie ^rforaance. of his daughter) told her intended husband, that he meant to give them (on their marriage) certain leasehold pro- perty (situate in Carey Street), — and after the marriage, he gave up the possession of the property to the husband, and handed him the title-deeds, that was a part-perform- ance; and the property having been taken oompulsorily by a public body, the compensation was payable to the husband, and not to the wife's father {z). It seems also, that if there be "a written engagement" after marriage, in pursuance of a parol agreement before marriage, that (p) Sodson T. Heuland, 1896, 2 Ch. 428. (}) Milled- V. Sharp, 1899, 1 Ch. 622. (r) Dickinson v. Barrow, 1904, 2 Ch. 339. («) Gregory v. Mighell, 18 Ves. 328. {<) McManus v. Cooke, 35 Ch. D. 681. \u) Britain v. Sossiter, 11 Q. B. D. 123. (x) Lavery v. Fursell, 39 Ch. Div. 508. {}/) Dy. 296 a (Case 22) ; Clinan v. Cooke, 1 Soh. & Lef. 41. (z) Sureombe v. Pinniger, 3 De Gr. M. & G. 571. ii2 484 THE ORIGINALLY CONCUREENT JURISDICTION. takes the case out of the statute, — the object of the 4th section of the Statute of Frauds not being to alter prin- ciples of law, but to prescribe a particular species or raodei of evidence only (a) . A representa- tion, for the purpose of influencing another, and which has that effect, — will be enforced. Also, a representation made by one party (although by parol), for the purpose of influencing the conduct of another party and which is acted on by the latter, will be sufficient to entitle him to enforce the representation (b), — unless where the representation is merely of an inten- tion: And, in fact, it is a leading principle of equity, that a third party who (upon the marriag© of two persons) makes a representation (upon the faith of which the mar- riage takes place), shall make good his representation (c); and an injunction will be granted to restrain [e.g.) the enforcement of a demand, which the party seeking to enforce it, has (while the marriage treaty was pending) falsely represented to be non-existing {d) ; and although the party be an infant at the time, he (or she) will be bound by his (or her) misrepresentation jn such a case (e) . Action for specific per- formance, — parties to. Where there is a contract for the sale of land, and it is desired to have the contract specifically performed in equity, it is (properly speaking) only the parties to the contract who are to be made plaintiffs and defendants respectively in the action (/) . Therefore, firstly, where the mortgagor has sold, the mortgagee is not a necessary party-defendant to the purchaser's action for specific per- formance (p') ; and, secondly, where the mortgagee has sold, the mortgagor is not a necessary party-defendant (h), — Scil., where no relief (other than the specific perform- ance only of the contract) is claimed. And similarly, when A. has sold to B., and then afterwards has sold to {«) Gregg v. Solland, 1902, 2 Oh. 360. (}) Farina V. Fiehes, 1900, 1 Ch. 331. (c) Bold V. Hutchinson, 5 De G. M. & G. 558. {d) NevillY. Wilkinson, 1 Bro. C. C. 543. («) Mills V. Fox, 37 Ch^ Div. 153. /) mil V. Gomme, 5 My. & Or. 250. (g) Tasker-v. Small, 5 My. & Or. 63. (A) Corder v. Morgan, 18 Ves. 344. SPECIFIC PERFORMANCE. 485 C, the action of B. (Soil., for specific performance simply) is aguinst A. only, and C. is not properly made a co-defendant with A. («): Also, where an agent has sold in his own name (and Avithout disclosing his prin- cipal's name), the purchaser properly sues the agent only (k), — any questions, that may be subsisting between the principal and the agent inter se, not concerning the purchaser in a mere specific performance action: Also, if A. agrees to grant a lease to B., and (before doing so)' executes a mortgage to C. (who has notice of the agree- ment), the action by B. for specific performance of the agreement is (properly) against A. only, and not also against C. (l). And note, that where between the contract and the completion of the contract a bankruptcy inter- venes, the bankrupt (vendor (m), or purchaser (w)) cannot, as a rule, have specific performance, but the trustee in the bankruptcy of either may (semble) have it upon terms (o); and the solvent purchaser may enforce against the bankruptcy trustee (of the vendor) the execution (e.g.) of the due conveyance (p), — the purchaser being, in such case, entitled also to set off any debt against the unpaid purchase-money (q) . To an action for specific performance of a contract for Special the sale of lands, the want of writing to evidence the con- defaces to a tract is, usually, a good defence, — unless and until it is specific per- displaoed in on© or other of the ways above indicated; *°™'*°<^e. and there are also the nine following other defences to such an action, that is to say: — (1) Misrepresentation. — This is a ground for refusing (i) Misrcpre- specific performance, — at the instance of the party who sentatior, ty made the misrepresentation; and a misrepresentation, having ' although it may only in part have induced the contract, th?contract (j) Cutis y. Thoday, 1 Coll.. 212. (Jc) Chadwick v. Maden, 9 Ha. 188. (I) Long T. Benning, 33 Beav. 585. (ffi) Lowes V. Lush, 14 Ves. 546 ; Ex parte Sabbidge, 8 Ch. D. 367. (») FranJelin v. Broumhw, 14 Ves. 550. (o) Worky V. Frampton, 5 Ha. 560. (p) Pearce v. Bastabk's Trustee, 1901, 2 Ch. 122. (V) In re Taylor, Fx parte Mrvell, 1910, IK. B. 562. 486 THE OEIGINALLY CONCUKEENT JURISDICTION. will have the same effect (r) ; and the misrepresentation of an agent (acting within his authority), is the mi&- representation of his principal (s), — Scil., where it is made for the principal's benefit only, and not otherwise (t). (2) Mistake rendering •specific per- formance a hardship. Kemedy in case of ; (1) Mutual mistake, — otherwise, ** Common mistalce." In the case of a sale. of leasehold lands, a representation that the lease contains no unusual covenants, will be a good ground of defence, if the lease contains in fact a covenant to build and to thereafter maintain build- ings of a value to command double the rent reserved by the lease, or contains a covenant to erect only one house on the land (m), or any other like restrictive covenant; and 'the purchaser will be discharged from the contract, because (if he completed) he would be bound by " the covenants in question, or (if not bound by them) would at any rate be harassed by their existence (x) ; Also, mis- leading conditions of sale (y) are, and (in the case of a sale by trustees) depreciatory conditions of sale used to be (z), — ^although theise latter have now ceased to be (a), — a ground for refusing specific performance; but it is to be remembered, that a condition of sale is not necessarily misleading, merely because it excludes you from making certain requisitions on the title (6), there being certain requisitions which are often better left unmade. (2) Mistake. — Mistake also is a ground of defence, — Non videntur, qui errant, consentire ; and parol evidence of the mistake is admissible: The mistake may either be the mistake of both the parties to the contract, or it may be the mistake of one only of them: And, firstly, when the mistake is the mutual or "common" mistake of both, —and any particular hardship falls upon the purchaser, — the mistake is a good ground for the purchaser being (r) Clermont v. Tasburgh, 1 J. & W. 112. (s) Mullms V. Miller, 22 Ch. Div. 194. (t) Lhydy. Grace, 1911, 2 K. B. 4S9. («) Ilford Fark v. Jacobs, 1903, 2 Ch. 522. (x) Andrew v. Aitken, 22 Ch. D. 218. (j/) In re Sandbach and Edmondson's Contract, 1891, 1 Ch. 99. (z) Dunn t. Flood, 25 Ch. Div. 629. (a) Trustee Act, 1893 (56 & 87 Vict. c. 53), s. 14. (J) Blaiberg v. Keeves, 1906, 2 Ch. 175. SPECIFIC PERFORMANCE. 487 relieved from the contract (c) . And even, secondly, where (2) Unilateral the mistake is of the defendant only, he will be (in effect) ^'^take. relieved from it, — because the plaintiff will not be able to enforce the specific performance of the contract against him (d), but will be left to his remedy for damages (e); and if it should happen, that (by reason of the mistake) there is a want even of the assensus ad idem which is re- quired in every contract, there will be no right to damages even (/), — "No contract, no damages." Where the contract is for a lease, any mistake or un- Uncertainty certainty, as to {e.g.) the date from which the term is to „essT-^en commence, will be fatal to the contract {g), — unless (upon immaterial, the contract itself and the circumstances surrounding it) it is plain, that the term is to commence from the date of the possession given {h) : But a trivial uncertainty, which can be removed by an enquiry, will not make the contract void, where {e.g.) the specific acreage leased {i), or the specific rent to be payable (fc), is left indefinite but ascer- tainable: Secus, where the uncertainty is gross (Z). Where the mistake is simply an-error which has crept Effect of into the writing, and it appears that the written agreement a parol ' (varied according to the defendant's contention) repre- variation is sents the true contract between the parties, the Court will defence : enforce specific performance of the contract as so (a) Where the varied (m); but the plaintiff (on his part) cannot obtain t™redu°ct1on specific performance of the written agreement with the oftheagree- variation (w), — unless the variation is merely some term ^tin^.° omitted inadvertently out of the writing, and which is wholly in favour of the defendant, and the plaintiff con- sents to its inclusion (o). On the other hand, where the {c) Jones V. Clifford, 3 Ch. D. 779. (d) Tamplin T. JoMWS, 15 Ch. D. 21.5. {e) Van Praagh v. Everidge, 1903, 1 Ch. 434. (/) May V. Thomson, 20 Ch. D. 705. ig) Marshall \. Berridge, 19 Ch. D. 233. (A) In re Lander and BagUy''s Contract, 1892, 3 Ch. 41. (i) Chattoclc v. Muller, 8 Oh. D. 177. (h) Gregory y. Mighell, 18 Vea 323. (l) Douglas v. Bayes, 1908, A. C. 477. {m) Smith v. Wheaieroft, 9 Ch. D. 223. (n) Townshend y. Stangroom, 6 Ves. 328. (o) Martin v. Fycroft, 2 De Q. M. & G. 785. 488 THE OEIGINALLY CONCURRENT JURISDICTION. (b) Where there is a misunder- standing as to terms of agreement. (c) Where the parol varia- tion adds a term &uhse~ qneit to the contract. mistake is a real misunderstanding, there will be a want of the necessary assensus ad idem, — and therefore no enforce- able contract: And where the mistake (so called), which the plaintiff or defendant seeks to set up, is (in fact) a further term agreed to by parol between the parties subsequently to the written agreement, the contract (with such further term added to it) will not be enforced, — excepting, pos- sibly, in a case where the refusal to enforce it might amount to a fraud (p), and excepting where there have been such acts of part-performance as would (in the absence of writing altogether) have justified a decree for specific performance (g). But no one will be allowed to call that a mistake which is merely an " amhiguity " in the writing; nor will either party be able to defeat the contract, by showing merely that he understood the writ- ing as meaning something else (?-), — unless, possibly, where the other party has induoed the misunderstand- ing: (3) Misdescrip- tion, — accord- ing as it is substantial or not. Purchaser not compelled to take, — (a) Freehold instead of copyhold : (b) Nor an underlease instead of original lease. (3) Misdescription. — Firstly, Where the misdescrip- tion is substantial, — where the property (e.g.) is sold as copyhold, but turns out to be partly freehold, — the vendor cannot compel specific performance (s): But where the sale is of a defined acreage, — and the contract states that it is partly freehold and partly copyhold, — the sale would be free from objection (^); and on such a sale, if the timber on the whole of the lands sold was included in the sale and to be taken at a valuation, — that again would be no objection to the sale (u), — as neither would it be, where the whole of the land was copyhold (and no part of it was freehold(a;)), — Scil., because the timber is sold as parcel of the land (and with only the same title to it as to the land): Also, a purchaser will not be compelled to take an underlease instead of an original lease («/), — the differences between the two being differences not of value (p) Pricey. Dyer, 17 Ves. 364. (j) Van T. Corpe, 3 My. & K. 269, 277. (>•) Stewart v. Kennedy, 15 App. Ca. 108. (s) Sari v. Sicnine, 7 Ch. Div. 42. (i) Monro v. Taylor, 8 Ha. 51. (u) Crosse v. Lawrence. 9 Ha. 462. [x) Crosse v. Keene, 9 Ha. 469. (y) Madeley v. Booth, 1 De G. & Sm. 718. SPECIFIC PERFORMANCE. 489 but of tenure (2:): Also, where the property is subject to some statutory defeasance, the purchaser will not be held to his contract (a); and where a wharf and jetty were contracted to be sold, and it turned out, that the jetty was liable to be removed by the Corporation of London, specific performance was refused (6): Also, (c) A property where, upon the sale of a residence and four acres of land, the'propertv there was no title to a slip of ground (of about a quarter intended to be of an acre) between the house and the highroad, specific ^°^sT^^- performance was refused (c), — Because, generally, where (owing to some defect in the property itself) the purchaser will not really get the property which he bought, specific performance will be refused (d), — as where (the purchase being of agricultural land) there is no right of cartway to it (e). Secondly, Where the misdescription is not substantial, where the but is a proper subject for compensation, the Court will siight^Tnd a enforce the contract, — ^at the suit even of the vendor (he proper suhject making compensation to the purchaser (/)): Therefore, tio'n!°thr''^''" where fourteen acres of land were sold as water-meadow, contract will and twelve only answered that description, the misdescrip- ^itiTcompen- tion was held to be matter for compensation (g) . And sation,— as it is to be mentioned, that, where the purchaser seeks J^ii^htiy'''^^^ specific performance, and there has been a misrepresenta- deficient, tion as to the quantity, " the right of the purchaser is to have what the vendor can giv&^ ivith an abatement of the purchase-money for so much as the quantity falls short of the representation" (A), — Or with such compensation (to be otherwise ascertained) as shall be proportionate to the defect (i) : And where a vendor (having only a partial estate) contracts to sell the whole fee simple, if the pur- chaser chooses to take as much as he can have, he has a (z) In re Bey fits and Masters' Contract, 39 Ch. Div. 110. (a) Ballard v. Way, 1 Mee. & W. 520. (J) Feers v. Lambert, 7 Beav. 546. (c) Ferkins v. Ede, 16 Beav. 193. (d) Flight y. Booth, 1 Bing. N. 0. 370 ; and disting. Shepherd v. Croft, 1911, 1 Ch. 521. (e) Denne v. Ziffht, 8 De G. M. & O. 774. (/) Arnold T. Arnold, 14 Ch. D. 270. (g) M' Queen Y. Farquhar, 11 Ve8. 467. (/») Horrocks v. Eigty, 9 Ch. Div. 180. (i) Bill V. Buckley, 17 Ves. 394. 490 THE ORIGINALLY CONCURRENT JURISDICTION. Partial per- formance not compelled, where unrea- sonable or prejudicial to third parties. right to that and to an abatement (Ic), — Excepting that, where a partial performance of the contract (at the suit of the purchaser) -would be unreasonable, or would be prejudicial to third parties interested in the property (l), the Court will refuse to enforce a partial performance of the contract: For example, where a husband and his wife contract to sell and convey the wife's fee simple lands (not being her separate estate), and the wife refuses to complete, there will not be even a partial perform- ance (m), — Secus, where the husband is the alone vendor (n). No compensa- tion where there has been fraud: nor where the compensation cannot he estimated. The principle of granting compensation for a mis- description will not be applied, where there has been fraud or wilful misrepresentation on the purchaser's part (o), — or where the purchaser has otherwise (by his conduct) disentitled himself to that (p) : Also, where there are no data from which the amount of the compensation can be ascertained (q), the Court cannot enforce the con- tract with compensation, — although that objection is one which the Courts are unwilling to entertain. Compensation after comple- tion. After conveyance of the estate, in completion of the contract, a claim for compensation can be maintained (r), unless there is a condition expressly limiting the compen- sation to misdescriptions discovered before the date of the completion, and not afterwards: Which condition is a very just and proper condition, seeing that the com- pensation recoverable by the purchaser is often of very considerable amount (s), even where the misdescription hardly affects the real value of the property at all (t) : And, nota bene, fiduciary vendors (m), and mortgagee- Jc) Mortloch V. Bulhr, 10 Ves. 315. I) Thomas v. Dering, 1 Keen, 729. m) Castle v. Wilkinson, L. E. 5 Ch. App. 534. W) Barnes v. Wood, L. R. S Bq. 424. o) Price T. Macaulay, 2 De G. M. & G. 339, 344. » In re Sare and 0' More, 1901, 1 Ch. 93. q) nuddY. LascelUs, 1900, 1 Ch. 815. >) Bos y. Helsham, L. R. 2 Exch. 72. s) Royal Bristol Sociittj v. Bomash, 35 Ch. Div. 390. t) Cordinyly v. Cheesebrough, 4 De G. F. & J. 379. m) Ee Chifferiel, 40 Ch. D. 45. SPECIFIC PERFORMANCE. 491 vendors {x), will be liable (in a proper case) to pay the due compensation for a misdescription, — and may also be without any right to be recouped the amount {y) . (4) Lapse of Time. — 'Time used always to be of the W Lapse of essence of the contract at law; but Courts of Equity dis- barm equity, criminated between (1) those terms of a contract which and when not. were formal and (2) those which were of the substance and essence of the agreement, — and (where the element of time was clearly not of consequence) granted specific performance of agreements after the time for their per- formance had passed {z), — For example, where the pur- chaser for yeans had been in the enjoyment of the property, and what he wanted was merely the legal conveyance of it (a): However, even in equity, time was sometimes of the essence of the contract: As, firstly, where the time for the completion of the contract was from the beginning material, either by the express agreement of the par- ties (&), or from the nature of the subject-matter (as in the case of leasehold interests, reversionary interests (c-),, and colliery businesses (d)); and, secondly, where the time, although not originally of the essence of the contract, had (by subsequent notice) been made so, — the notice being reasonable and being given after the right to give it had accrued (e) : Occasionally, also, the delay of the pur- chaser (in the completion of his contract) was so great, as to evidence an abandonment of the contract on his part (irrespectively of any express stipulation as to time (/)). (5) Trickiness. — Where the contract is tainted with (S) Where the fraud, the Court will refuse relief {g)—^o that, if there ^of^.^'eTear has been any positive misrepresentation (Ji) or fraudulent hands,"— but has been tricky or fraudulent. («) Tomlin V. Luce, 43 Ch. D. 191. [y) Durham v. Legard, 34 Beav. 611. («) Parkin t. Thorold, 16 Beav. 59. (a) t^hepheard v. Walker, L. R. 20 Eq. 659. (b) Honeyman v. Marryat, 21 Beav. 24. (c) Walker t. Jeffreys, 1 Hare, 341. {d) Macbryde v. Weekes, 22 Beav. 633. ■. (e) Green v. Sevin, 13 Ch. D. 589. (/) Mills V. Haywood, 6 Ch. Div. 196. Ig) Post V. Marsh, 16 Ch. Div. 396. (A) Siggins v. Samels, 2 J. & H. 460. -192 THE ORIGINALLY CONCURRENT JURISDICTION. suppression (i) ; or if there are misleading particulars or conditions (fc), or (in the case of sales by trustees) depre- ciatory conditions (Z), — In any of these cases, equity will refuse to enforce specific performance; and in any of these cases, the person defrauded may even rescind the con- tract (m) ; and the objection or requisition may be taken or 'made, even ivhen out of time (w). But where a vendor has a merely personal objection to A.B. as a purchaser, — and will not sell to A.B. on any account; and CD. pur- chases ostensibly for himself (and not for A.B.), but really for A.B., — The vendor cannot, in respect of such "personal" trickiness, object (semble) to convey to A.B. (o), — unless, of course, the personal objection to Depreciatory A.B. is something' more than personal (p^. and as regards effect of. ' depreciatory conditions, a purchaser from trustee-vendors is not now concerned therewith, after the completion of his purchase, — unless (at the date of the contract of sale) he was acting in collusion with the trustees, — trustees themselves also not now being liable personally in any way, for alleged depreciatory conditions, — unless the con- ditions should, in fact, render the consideration for the sale inadequate; and while the sale still rests in contract only, a purchaser is now deprived of the right even of making requisitions on the ground of the conditions of sale being depreciatory (q) . ^ar£hip*mthe (^) Hardship. — Although inadequacy in the price was contract. not (except where the sale was of 'a reversionary in- terest (r)), — and is not (except where fraud enters into the contract (s)), — a ground for refusing specific perform- ance, — Still a contract which would work a great hardship (i) Shirley v. Stratton, 1 Bro. C. C. 4i0. (k) Brewer v. Brown, 28 Ch. Div. 309 ; In re Let/land and Taylor, 1900, 2 Ch. 625 ; In re Maedicke and LipsJci, 1901, 2 Ch. 666. {I) Eede v. Oakes, 4 De Gr. J. & S. 613 ; Dance v. Goldingliam, L. K. 8 Ch. App. 902 ; Dunn v. Flood, 25 Ch. D. 629. (m) Broad Y. Munton, 12 Ch. Div. 131. (n) In re Cox and Neve, 1891, 2 Ch. 109. (o) Nash T, Dix, 1898, W. N. 32. (p) Bonnett v. Sadler, 14 Ves. 527. (q) 66 & 67 Viet. c. 53, a. 14. {)•) Ferfeet v. Lane, 3 De G. F. & J. 369. (s) Sullivan v. Jacob, 1 Moll. 477. SPECIFIC PERFORMANCE. 493 would not have been enforced (t), — Soil., because the jurisdiction in specific performance is equitable and dis- cretionary (?(), — Excepting that, in the case of a railway company being the purchaser, the vendor is entitled {as of right almost) to specific performance (x). And where a mortgagee (who had foreclosed) sold inadvertently in purported exercise of his power of sale (thereby losing the benefit of his foreclosure), the Court declined to enforce the contract («/) : Also, in the case of an award, — the leave to enforce which is almost a matter of course, — if there is gTeat hardship in the award, its provisions will not be specifically enforced in equity (2) . And upon this defence of hardship, these two things ought to be here mentioned: Firstly, that the provisions of s. 5 of the Conveyancing Act, 1881 (for the compulsory discharge of incumbrances on a sale) are intended to operate only where the incumbrance may be conveniently discharged out of the purchase-moneys, and so as to still leave a fair amount of these moneys to come to the vendor (a), — That is to say, these provisions are not in- tended to operate, where they would entail some great hardship on the vendor (fc) ; also, nota bene, these pro- visions do not secure an absolute protection from the charge (c) ; and. Secondly, that the defence of hardship in the contract is not an easy one to sustain, and there must be enough in it to induce the Court to refrain from enforc- ing the contract (d) ; and, more particularly, specific per- formance will not be refused, merely because (in the events which have happened since the contract was entered into) the completion of the contract will operate a hardship (e). (7) lUegalitij, dc. — There will be no specific perform- (7) The con ance of an agreement which involves the breach of a prior t) In re G. N. My. Co. and Sanderson, 25 Ch. Div. 788. W) Morthch v. BulUr, 10 Ves. 291. x) Eastern Counties S. C. v. Hawkes, 5 H. L. Ca. 331. Watson V. Marston, i De G. 11. & G. 230. [zj Nickels v. Sancock, 7 De G. M. & G. 200. 'a) In re Freme's Contract, 1895, 2 Ch. 256. h) In re G. N. Ry. Co. v. Sanderson, supra. c) In re Evans and BettelVs Contract, 1910, 2 Ch. 438. d) Fegler v. White, 33 Beav. 403. «) Adams v. Weare, 1 Bro. C. C. 567. tract involves the breach of a prior con- 494 THE ORIGINALLY CONCURRENT JURISDICTION. tract, or a breach of trust. contract (/), or a breach of trust (gr); and an injunction even may be obtained, against the completion of such an agreement (Ji) . But if the purchaser is told by the vendor, that the so-called prior contract, of which he (the pur- chaser) has notice, is not a contract at all, or not a valid contract, and the purchaser is prepared to take the risk, — he may complete, taking over the right of the vendor to upset the prior so-called contract {i) ; and if he would dispute such prior contract, he must, in fact, first com- plete his own contract in order to do so (Ic) . Also, a con- tract which involves an illegality will not be specifically enforced, — as already mentioned on p. 474, supra. Where there is an agreement for the purchase of land, and the purchaser assigns the benefit of the agreement (either by rway of mortgage or by way of absolute assign- ment), the assignee ought to give the vendor notice of the assig'nment, — and ought also to do all that is necessary on his part in order to complete the purchase, — Because, if he fail to do that, the vendor may complete with the original purchaser, notwithstanding the notice {!), — or may compromise apart from the assignee altogether (m) . (8) The con- tract is not established, because some term wanting, or some condi- tion precedent not iulfUled. (8) No Contract. — If the alleged contract is no c-on- tract, — That is to say, if the contract is incomplete as a contract simply, — either from Avant of authority in either party tO' enter into it (w), or because it rests in negotiation merely (o) ; or (where the contract is by offer and accept- ance) because the acceptance is not an absolute acceptance; or because the contract is subject to some condition prece- dent which has not been perform6d(p), — In any of these cases, the Court will not enforce specific performance of (/) Corbetfs case, 1905, 2 Ch. 280. (g) Sneesby v. Thmne, 1 De G. M. & G. 399. (A) Manchester Ship Canal v. Manchester Racecourse, 1900, 2 Ch. 352. (») Goodwin v. Fielding, 4 De G. M. & G. 90. (k) De Hcghton t. Money, L. B. 2 Ch. App. 164. [1) Crabtree v. Poole, L. R. 12 Eq. 13. im) Ridout v. Fowler, 1904, 2 Ch. 93. in) Sawksley v. Outram, 1892, 3 Ch. 359. (o) Sussey v. JECorne-Fayne, 4 App. Ca. 311. (p) CoombsY. Wilkes, 1891, 3 Ch. 77. SPECIFIC PEEFOEMANCE . the contract: But, if the condition precedent is in favour of the plaintiff, and he waives it, then he may enforce the contract (g) ; and a contract is not the less a contract, because the parties have stipulated that a formal contract shall be drawn up {r), — unless the drawing up of the formal contract is made a condition precedent to the con- tract becoming' effective as a contract (s) . There must also, of course, b© a eufiicient certainty as regards tlic 'parties to the contract; but tlie vendor is sufficiently de- scribed, by being called "the proprietor" {t), — although not, if he is merely called "the vendor" {u); and an un- certainty as to the acreage (x), or even (in the case of an agreement for a lease) as to the rent {y), will not render the contract invalid, if the uncertainty can be removed on an enquiry. Also, the contract may be made by an agent, — although without any authority or with an insufficient authority, at the time, — provided there be afterwards ratification by the principal (2), and provided the ratification come in due time {a) : And when the price (either for the whole purchase or for any incidental part of the pur- chased premises) is to be ascertained by a valuation, the valuation is simply a valuation, and is not an arbitra- tion (&); and where the incidental matter requiring to be ascertained by valuation, is (e.gr.) the price to be paid for the fixtures, &c., that may be (c), but usually is not {d), of the essence of the contract. While a contract is merely in consideration (e), or while any specific provision thereof is in proposal only(/), 495 q) Non-U v. Jaclcso-n, 1 J. & H. 319. r) Pilhy v. Hounnell, 1896, 2 Ch. 744. j) Lloyd V. Nowell, 1895, 2 Ch. 744. <) Mossiter\. Miller, 3 App. Ca. 1124. li) Jamlt T. Hunter, 34- Ch. Div. 182. \x) Chattock v. Muller, 8 Ch. Div. 177. y) Gregory v. M%ghell, 18 Ves. 323. :) Dickinson v. Dodds, 2 Ch. Div. 463. » Belly. Balls, 1897, 1 Ch. 663. '6 In re Cams- Wilson and Greene, 18 Q. B. D. 7. c) Milnes v. Gery, 14 Ves. 400. Richardson v. Smith, L. R. 5 Ch. App. 648. e) Lncas v. James, 7 Ha. 410. '/) Holland Y. Eyre, 2 S. & S. 194. 496 THE ORIGINALLY CONCURRENT JURISDICTION. there is no complete contract between the parties but only negotiation; and either party may, therefore, withdraw from it. (9) The vendor cannot make a title, —or can make only a doubtful title. Title less than for f oi-ty years, — care relative to. (9) Title, Want of. — If the contract relates to (or com- prises) property to which the vendor is unable to make a title (g) ; or if the title which he purports to make out is too doubtful to be forced on a purchaser (h) ; or if the vendor's title to the property is dependent upon the performance by him of some condition precedent, — and he has not performed same («'), or has even incapacitated himself from performing it (fc) ; or if the validity of the vendor's title depends upon proof of full value having been given on a previous purchase (l), — or upon proof of some previous purchaser having bought without notice (m), — In any of these cases, specific performance will be refused. But, as regards doubtful titles, if the Court should choose to decide that the title is good, that objection to the specific performance of the contract will be removed (w); but the Court will not so decide, in the face of any dicta of weight to the contrary (o) ; and the opinion of one of the conveyancing counsel, although it should be in favour of the title, will not remove the objection to it (p). A purchaser of lands being now (by statute) entitled to a forty years' title, — and that even although recitals twenty years old are evidence, — any condition of sale (whereby the purchaser is restricted to a title less than forty years) must be fair and open (g), — That is to say, in order that the contract shall be specifically enforceable, the condition must give sufficient information regarding the root of title so selected, and also the reason for its selection (r) . (g) Lawriey. Lees, 7 App. Ca. 19. (7() Fiirhe v. Waddingham, 10 Ha. 1. (J) KichoUon v. Smith, 11 Ch. Div. 640. {h) Sipgrove v. Case, 28 Ch. Div. 356. [l) In re Maslcell and Goldfinch, 1895, 2 Ch. 525. ((«) In re Handman mid Wilcox, 1902, 1 Ch. 599. (n) Mullings v. Trinder, L. K. 10 Eq. 449. (o) In re Thaclcwray and Young, 40 Ch. D. 34. {p) Hamilton v. Buckmaster, L. E. 3 Eq. 323. (}) In re Marsh and Grannille, 24 Ch. D. 11. ()■) In re Eaedicke and Lipski, 1901, 2 Ch. 666. SPECIFIC PEEFOEMANCE. 497 When the vendor makes title through an undischarged Title, when bankrupt, — or is himself an undischarged bankrupt, — and ^^^^'^f the property is after-acquired property, — It appears, that, when and if the trustee in the bankruptcy has not yet intervened to ^J^eiinot claim the property, a purchaser from the bankrupt may accept the title (if it is otherwise good) and safely com- plete where the property is of leasehold tenure (s), or is pure personal estate (i), or is a legacy or share of residue ((<); but may not accept the title (or complete), where the property is of freehold tenure (a;), or of copy- hold tenure, — or is any estate or interest (whether legal or equitable) derived (by the bankrupt) out of any property of his own (whether freehold or copyhold {y)), — Soil., unless the realty be partnership property, — which is, for this purpose, regarded as personalty {z). Generally, an undischarged bankrupt can give valid Subsequent receipts for moneys earned by him (or otherwise coming ?''^?^\°i. to him) subsequently, — but may be ordered to pay over Ms title to. these moneys to the bankruptcy trustee (a) ; and the bank- ruptcy trustee may also follow these moneys into the hands of any volunteer receiving them, — but Hot into the hands of a payee thereof for value (even although the payee for value should have notice that the payer is an undischarged bankrupt (6)): Also, on the death of the bankrupt (still being undischarged), his legal personal representative may {semble) pay over and distribute his personal estate, to and among the beneficiaries entitled thereto (whether as legatees or as his next of kin), — Subject only to this, namely, that these beneficiaries may afterwards be called upon (by the bankruptcy trustee) to refund to him all these payments to them(c): And as regards (more particularly) the personal earnings of an undischarged bankrupt, — These are his to deal with {Soil., until the bankruptcy trustee intervenes); and he may spend them (in a reasonable way) on himself and (s) III re Clayton and Barilai)' s Contract, 1895, 2 Ch. 212. it) C<.hm V. Mitchell, 25 (J. B. D. 262. («) Sunt\. Fripp, 1898, 1 Ch. h75 (x) In re New land Co. and Qraii. 189?, 2 Ch. 138. (V) Preston's Trustee v. Couke, 19' '6, 2 Ch. 661. (2) In re Kent County Gas L>aht Co., 19119, 2 Ch. 195. (a) Wadling v. Oliphant, 1 Q. B D. 145. (b) In re Behi-end's Tru^t, Surman v. Bidddl, mil, 1 Ch. 687. (c) In re Bennett, Ex parte U. R., 19U7, 1 K. B. 149. S. K K 498 THE ORIGINALLY CONCURRENT JURISDICTION. Eights of entry in tamkrupt, — vesting of, in trustee. Discharge, order for, — effect of. his family, and in payment of his business outgoings; but if and so far as the bankrupt does not so spend them (but saves them up and invests them), the bankruptcy trustee vCan claim the investments which represent them (d) . However, as regards all the after -acquired property of an undischarged bankrupt (being property acquired by him in the course of his subsequent trading), — although the title of the bankruptcy trustee to that (when he in- tervenes to claim it) is good, — still his title is subject to the subsequent trade-creditors being first satisfied their debts out of such after-acquired property (e) . Property which is the bankrupt's already at the date of his bankruptcy is, of course, not after-acquired pro- perty within any of the above rules (/); and where a bankrupt, at the date of the bankruptcy, was entitled already to certain freehold lands, — but had been dis- possessed thereof, and had only a right of entry for the recovery of the possession, the right of entry was held to have vested in the bankruptcy trustee; and the bank- rupt having sold and conveyed the lands to A.B. as the purchaser thereof, and A.B. having afterwards (by eject- ment) recovered the possession of the lands from the adverse possessor thereof, the bankruptcy trustee was held to be entitled to recover over the possession from A.lB., — That is to say, the right of entry in the bankruptcy trustee was paramount to the title which A.B. had acquired from the bankrupt (g) . Where a bankrupt has obtained his discharge, he is no longer an undischarged bankrupt, although his bank- ruptcy should not yet have been " closed" — and he is therefore free to deal with his after-acquired property, and the bankruptcy trustee has no right to intervene as to that {h) : Also, when a bankruptcy is annulled, all the bankrupt's property (which has meanwhile vested in the bankruptcy trustee) is, by order, re-vested in the bankrupt («"). (d) Ex parte Vine, In re Wilson, 8 Ch. D. 364. (e) Trminhtm v. Gilky, Amb. 629. (/) In re Calcot. and Slvin, 1898, 2 Ch. 460. Ig) Jnikim V. Jones, 9 Q. B. D. 128. (h) Ebhs T. Boulnois, L. R. 10 Oh. App. 479 ; Bankruptcy Act, 1883^ . 44. («) Fearce v. Bullard, 1908, 1 Ch. 780. SPECIFIC PERFORMANCE. 499 Usually, the title which, the purchaser may require, is 'JGoodholding^ only such a title as the conditions of sale entitle him to (jc) ; *'*'®"" and where the title depends (for its validity), upon proof that the seller had no notice himself of an incumbrance when he completed his own original purchase, the title is (or may be) a "good holding title,"— although it may be difficult for the purchaser to show, that the seller had in fact no notice at the time. Also, a restrictive covenant is like an incumbrance in that respe2t(?), — or is like an easement affecting the property, — and will therefore pre- vail, even against a purchaser buying without notice (m) ; but the legal estate will protect him (w) : Also, anyone acquiring title by adverse possession acquires, in general, subject to the easements (if any) on the property (o). Usually, where a vendor contracts expressly to give a "Marketable marketable title, that obliges him to get rid of any restric- wise'caiieda^' tive covenants or conditions which may affect the land, "Good title." even although the purchaser may have known of them at the date of the contract and of the practical impossibility of obtaining any release of them (p) . But where the contract is not express and absolute in that respect, and there are (to the purchaser's knowledge) restrictive cove- nants which are practically irremovable, the purchaser will be taken to have purchased subject thereto (g), — at least, in general (r) : And where the defect is one of convey- ance only and not of title, the purchaser, before he re- pudiates on that account, must give the vendor a reason- able opportunity of removing the defect (s). Also, upon the sale of a public-house with the licences attached thereto, it is sufficient, if the licences are valid at the date appointed for the conveyance in completion of the con- tract {t) ■ Also, a purchaser is not entitled (nor is it wise [k) Hume v. Foeock, L. R. 1 Ch. App. 379. (1) Cato V. Thompson, 9 Q. B. D. 61ii. (m) Nottingham Co. v. Butler, 18 Q. B. D. 778. (n) Wilkes V. Spooner, 1911, 2 K. B. iTA. \o) In re Nisbet and Potts, 19U6, 1 Ch. 386. (p) Cato v. Thompson, supra. {i. Di?. 369. (/c) Lamb v. Evans, 1893, 1 Ch. 218. INJUNCTION. 529 entire catalogue or entire directory may not have been copyrighted. "Scenic accessories" may, semhle, be pirated with im- punity {l) : But, as regards sketches of tableaux vivantsi (with explanatory letterpress), — the tableaux vivants being representations of pictures in which the plaintiff has copyright,— although these are not (m) (a,lnd the living pictures themselves are not (n)) an infringement of the plaintiff's copyright, still the background may be so (o) : And as regards photographs, it is always a question, photographs, whether the copyright in the photograph belongs to the oopy^gWin. photographer (p), or to the person for whose use (or by whose permission) the photograph has been made (q) : But, in either case, the photograph may not (by reproduction from the negative) be sold or distributed broadcast, where that would be a breach of confidence on the photographer's part(r): Also, nota bene, a photographic reproduction of a picture, — being' some picture which has been copyrighted as a work of art, — may be an infringement of the copyright in the picture, — especially if the photograph " vulgarises " the picture (s); and, at the same time, a wool-work pattern, reproducing a well-known picture (" The Hugue- not"), has been held to be no infringement (i). As regards private letters (whether on literary subjects, Copyright in or on private personal matters), — The writer has a i'et^rg^_ qualified property in them, — and may obtain an injunc- tion to restrain their publication by the party written to (m) ; and the party written to has a; qualified property in them, — and may restrain the publication of them by a stranger {x): But the qualified right may (in either case) Assignment of (?) Tate V. FuUbroolc, 1908, 1 K. B. 821. (m) Banfttaenglii. Newnes, 1894, 3 Ch. 109. (k) Sanfstaenglv. Empire Palace, 1894, 3 Ch. 109. (o) Manfstaengl v. Empire Palme, 1895, W. N. p. 76. \p) BoKcas V. Cooke, 1903, 2 K. B. 235. {q) Stackeman v. Paton, 1906, 1 Ch. 774. [r) Pollardy. Photographie Co., 40 Ch. D. 345. (s) Banfstaengl v. Smith, 1905, 1 Oh. 619. (t) Sicks T. Brooks, 15 Ch. D. 22. (u) Gee T. Pritehard, 2 Swanst. 402. [x) Thompso)!i V. Stanhope, Amb. 737. S. M M 530 THE ORIGINALLY CONCUIIEENT JURISDICTION. in, and subse- quent sale of, the letters themselves, — effect of. be displaced {y) : And it rather appears, that (as regards private letters which have not been published in the writer's lifetime) the right to publish them after his death is in the proprietor of the letters; ^nd if that proprietor should first sell and assign to the plaintiff the right of publication, and should afterwards sell the letters them- selves to the defendant, the defendant will not (under the sale to him) acquire the right of publication also{z). Copyright in unpublished manuscript. As regards an unpublished manuscript, an injunc- tion will (in a proper case) be granted, — to restrain the publication thereof («); and copies (even manuscript copies) of a tale may not be lawfully made, — ^for the other- wise lawful purpose of dramatising it (&). Successive editions, — growing piracy in. In case the first edition of an alleged piratical work is not considered (by the proprietor of a prior existing copy- right) to be of sufficiently injurious character to justify him in commencing at once an action for the infringement of his copyright, — He will not (by this apparent but justifiable neglect) be afterwards prejudiced in his action for the infringement, if the second (or other subsequent) edition shows greater marks of piracy (c) . (C) Trade- marks, — Injunction against use of trade-marks, used not to depend on property, but on fraud ; (C) Trade -Marks. — As regards trade-marks, the right to protection (prior to the Trade-Marks Registra- tion Acts, 1875-76) did not depend upon any property in them, but the Court would not alloiv a fraud to he practised upon private individuals or upon the public by the "pass- ing off" of A.'s goods as the goods of B. (d): That is to say, the common law right to a trade-mark (or trade name) was merely the right which any one had, to prevent others from selling the like goods in such a way {i.e., by such a mark) as to mislead the public (e) ; while (under the (y) Feneval v. Fhipps, 2 V. & B. 19. (z) Macmillan v. Sent, 1907, 1 Ch. 107. {a) Duke of Queensberry v. Shehheare, 2 Eden, 329. (*) Warne v. Seebohm, 39 Ch. Div. 73. (e) Hogg v. Scott, L. R. 18 Eq. 444. (d) Bourne \. Swan and Edgar, 1903, 1 Ch. 211. (c) Eeddaway v. Banham, 1896, App. Ca. 199. INJUNCTION. 531 statutes), if the trade-mark (or trade-name) is proper to May now register and lias been duly registered, the owner now has, depend on ■ — ^t.o the extent that his tra/de-mark has been (,or is) used in connection with goods (/), but not further {g), — a true property in it, — So that even an innocent user of the trade- mark would have been liable in damages for an infringe- ment of the trade-mark {h), — although the law in that particular has now been altered (i), — and he is still liable to be restrained by injunction (fc). And ^ith regard to the registration of single words as "Fancj trade-marks, — It appears, that if they have been used gistration of. before 1875, they may be registered (l): Also, by s. 64 of the Patents, &c.. Act, 1883, any "fancy-word" might have been so registered (m), provided it was used as a distinctive word, and not for a fraudulent purpose (w); and by s. 10 of the Patents, &c., Act, 1888 (repealing s. 64 of the Act of 1883) the " fancy-word " required to be an " invented word " (o),or a word which had no reference to the character or quality of the goods, and was not a "geographical name" (p), — For example, "Mazawattee" for tea,(q), "Trilby" for ladies' hosiery (r), " Solio" for photographic materials (s), and "Bovril" for beef- extract (^): Also, the "portrait" of the maker was con- sidered a distinctive device for cough-lozenges; and a "Magnolia flower" for metals, — Because, generally, a thing of beauty which is registrable as a design may also be registrable as a trade-mark (u), — and the less congruous it is, the better, semhie. And now, by the 5 Edw. VII. (/) Cellular Clothing v. Maxton, 1899, App. Ca. 326. [g] Ball V. Burnett, 1899, App. Ca. 428. (A) Upmann r. Foreste)-, 24 Ch. Div. 231. (i) 7 Edw. VII. 0. 28, s. 27 ; and o. 29, s. 33. [h) Slatenger v. Spalding, 1910, 1 Ch. 257. (I) Vaseline Trade Mark, 1902, 2 Ch. 1. (m) Woody. Lambert, 32 Ch. Div. 247. (») Uno V. Dunn, 15 App. Ca. 262. (o) £e Oyelostyle, 1907, 2 Ch. 47S. (p) Caledonia Springs ease, 1904, A. C. 103. (q) In re Densham's Trade Mark, 1895, 2 Ch. 176. (r) In re Salt S; Co.'s Trade Mark, 1896, 1 Ch. 711. (s) Eastman y. Comptroller, 1898, App. Ca. S71. (t) In re Trade Mark " Bovril," 1876, 2 Ch. 600. («) Flaying Cards case, 1908, 1 Ch. 197. M M 2 532 THE ORIGINALLY CONCURRENT JURISDICTION. c. 15, s. 8, — which is in substitution for s. 64 of the Act of 1883, and in substitution also for s. 10 of the Act of 1888, — Among the "essential particulars" for a regis- trable trade-mark are included an invented word or words, and a word or words having no direct reference to the character or quality of the goods (and not being, ;accor'ding to its ordinary signification, a geogra'phical nam© or a surname (cc)): However, any distinctive word, which was in use as a trade-mark before the 13th August, 1875, continues to be registrable as a trade-mark («/) ; and, as regards the use of the royal arms in connection with any trade, — these may be validly used, provided they are more or less modified (z); but it is vastly safer, not to use them without first obtaining authority to do so (a) . Fraud still continues an independent ground for an injunction. In Bwgiess v. Burgess (h), where a father had for many years exclusively sold an article under the title of " Burgess's Essence of Anchovies," the Court refused to restrain his son from selling a similar article under that name, — the name "Burgess" belonging to the son quite as much as to the father, and no fraud being proved : But a limited company, established by the son, would not have had the privileges of the sou; and, in Cocksy. Chandler (c), a rival manufacturer of sauce was restrained (at the suit of the original inventor) from selling his preparation under the name of " The Original Reading Sauce," — the word " original," showing an intention of deceit: And (for the like reason) the use of the words " Yorkshire Relish "{d), " Cluh Soda "(e), " Camel Hair Belting "(f), and "Cash's Frillings"{g), has been restrained; and any inequitable use of the phrase " The Times," will be restrained (h).. {s:) See 1910, 1 Ch. 130, and 2 Ch. 590. ((/) In re ApoUinaris Trade Mark, 1907, 2 Ch. 178. (z) In re Konig's Application, 1896, 2 Ch. 236. {a) Royal Corsets case, 1909, 1 Ch. 459. (i) 3 De G. M. & a. 897. (c) L. E,. 11 Eq. 446. \d) Powell V. Birmingham, 1897, A. C. 710. («) Cochrane v. McNish, 1896, A. C. 225. (/) Heddaway t. Banham, 1896, A. C. 199. \q) Cash, Limited Y. Cash, 1901, W. N. 46. (h) Walter v. Ashton, 1902, 2 Ch. 282. INJUNCTION. 53S By Lord Cairns's Act («), — In all cases in which a Court LordCaims's of Equity has jurisdiction in injunction or in specific ^^l^lf' performance, the Court (if it thinks lit) may award as to damages; damages, either in addition to or in substitution for the other relief: And upon that statute, these points have been also mterpre- decided,— *^*'°" °'- (1) That the jurisdiction in equity is not extended thereby, to oases where there is a plain common law remedy (fc) ; (2) That there can be no relief (Scil., under that Act); in a Court of Equity, where the bill is filed for damage® only {I), — but only where the damages are incidental to the injunction (m); (3) That the Court cannot (in its discretion) give damages in lieu of an injunction, where the plaintiff makes out a case for an injunction (w), — especially where the nuisance is a continuing one (o) ; And (4) Where the Court has jurisdiction to compel specific performance of part of a contract, it may award damages for the breach of any other part of the contract (p) . But (5) If the remedy for an injunction is altogether gone, the Court cannot (under the Act) give damages even (q) : Nevertheless, where the Court sees that a legal Whendamages wrong has been committed in respect of which an injunc- ^Jn^oteveu tion ought to issue, but it is impossible to frame any form of injunction, the Court will give damages (r): But if the wrong is merely a dishonour, and infringes no legal or equitable eight of the plaintiff, there is no remedy at all, either by injunction or in damages (s): Also, if the wrong is merely political, no injunction will issue in respect thereof, — save in respect of any property-rightsi which may be affected (f). (j) 21 & 22 Vict. 0. 27. (/;) Wicks V. Sunt, Johnson, 380. [T) Lewers v. Earl of Shaftesbari/, L. E. 2 Eq. 270. [m) Holland v. WorUy, 26 Ch. Div. 578. (wj Imperial Gas Light v. JBroadbcnt, 7 H. L. Ca. 600 ; Shelfer^s case^ 1895, 1 Ch. 287 ; Chester {Dean, ^c.) t. Smelting Corporation, 1901, W. N. 179. (o) Meux T. City Electric Lighting Co., 1895, 1 Q. B. 287 ; Cowper v. Laidler, 1903, 2 Ch. 337. (p) Soames v. Edge, John. 669. (g) Lavery v. Pursell, 39 Ch. Dit. 508. (r) Saccharin Corporation case, 1900, 2 Ch. 246. (s) Cowley t. Cowley, 1900, P. 305 ; 1901, A. 0. 450. {t) Austria {Emperor) v. Day, 3 De G. ¥. & J. 217. recoverahle. :SS4 CHAPTEE XI. PARTITION . Jurisdiction of ipjjj, common law always allowed co-paroeners to compel grounds of. a partition; and the statutes 31 Hen. VIII. o. 1, and 32 Hen. VIII. c. 32, gave the like right to joint tenants and to tenants in common (a). But the common law remedy (which was by " writ of partition ") was early found to be inadequate and incomplete; and equity accordingly assumed a general concurrent jurisdiction in all cases of partition (b). Oases for partition. A partition action may be maintained by any freehold tenant in possession, — and that, whether he be entitled in fee simple, or in fee tail, or for life (c), or for any other freehold estate (c?); and the judgment is binding on the remaindermen and reversioners (e). But the action is not maintainable by a person entitled only in remainder or reversion (/) ; and a partition will not be granted during the continuance of any overriding power or trust (c/): jSTor will the action properly lie, where the purpose of it is, in reality, to prove an adverse legal title (h), — the titles of the parties being required (in every partition action) to have one common root (i) . Also, where there has already been a partition in pais, the Court cannot decree a partition, — Because the undivided entirety would first have to be reconstituted, in order to partition it (fc); and (a) Mayfair Property Co. v. Johnston, 1S94, 1 Ch. 508. (S) Agar v. Fairfax, L. E. 2 Eq. 440. \c) Wills V. Slade, 6 Ves. 49S. ( Discovery, the phrase was, "prayed" for) discovery simply, and for no relief, — the disoovery most usually asked for having been of title-deeds in the custody (or possession) of the defendant, or of facts resting in the knowledge of the defendant, — the object of the discovery having been the better prosecution of some action at law (/) . There were numerous defences to a bill of discovery, — For example, the heir general (or heir-at-law) could not have had discovery during the life of his ancestor; but the heir-in-tail might, — within due limits (g), — ^have Tiad discovery: Also, if the proposed action at law was clearly not maintainable, the disoovery would have been re- fused (h), — although, if the point was fairly open to doubt, the discovery would have been granted (i) . Also, if the action was not purely civil, — or if the effect of it would (or might) have been a confiscation of the defen- dant's property (k), — no discovery would have been granted. Also, where the defendant was a mere witness, there was no need for (or right to) the disoovery. Also, equity would not have granted discovery in aid of a volun- tary arbitration (Z), — but would (semble) have done so in aid of a compulsory arbitration (m) . But (since the fusion of law and equity) it has not been open to a de- fendant to object (w), — although it was formerly always open to him to have objected (o), — by way of defence to the discovery, that he was a bond fide purchaser for value without notice of the plaintiff's claim. (/) Anffell V. Angell, 1 Sim. & Stu. 83. Ig) Shaftesbury v. Arrowsmith, 4 Vee. 66. (h) Lord Kensington v. Mansell, 13 Ves. 240. (i) Thomas v. Tyler, 3 Toimge & Col. Ex. 255. (k) United States of America v. M'Sae, L. R. 3 Ch. App. 79. (?) Street v. Sigiy, 6 Ves. 821. (m) British Emp. Shipping Co. v. Somes, 3 K. & J. 333. («) Hmmerson v. Ind, 12 App. Ca. 300. (o) Stanhope v. Earl Vemey, 2 !Eden, 81. 544 THE AUXILIARY JURISDICTION. (a) Bills to perpetuate testimony, — object of ; Section Ia. On Bills to Perpetuate Testimony, — And to Take Evidence De Bene Esse. (1) Bills to Perpetuate Testimony were a branch of the law of discovery, — their objec.t being to preserve (that ,- . is, perpetuate) evidence that was in danger of being lost, before the matter to which it related could be made the subject of judicial investigation: Therefore, this remedy did not lie, where the matter could have been at once decided : And it was considered also, that the remedy was not one to be encouraged, — and that it should be permitted only when absolutely necessary to prevent a failure of justice (p), or when the preservation of the evidence tended to prevent future litigation {q) . Equity would not have perpetuated evidence of a right which might be barred ; Secies, now, — imder 5 & 6 Vict. c. 69 ; The Court, formerly, declined to entertain a bill to perpetuate testimony in support of a right which might have been barred, — as in the case of a remainderman filing a bill against the tenant-in-tail in possession (r) : Also, a mere expectancy was not considered sufficient, — as (e.g.) the " bare expectation of a future interest" resulting, e.g., from a married man becoming a widower and re-marry- ing (s) ; but a contingent legatee had something more than a mere expectancy {t) : And, now, by the 5 & 6 Vict. c. 69, — or (speaking more correctly) under Order XXXVII. Rule 35, — where any person would (under the circum- stances alleged by him to exist) become entitled, upon the happening of any future event, to any honour title dignity or office (m), — or to any estate or interest in any property (real or personal), — the right or claim to which cannot be brought to trial before the happening of such event, he may file his bill {i.e., commence his action) to perpetuate the testimony {x) . or under the Also, a bill to perpetuate testimony was not formerly allowed, where a mere question of personal status was in- {p) Zldnover v. Homfray, 13 Ch. Div. 380. \q) Earl Spencer v. jPeeh, L. E,. 3 Eq. 415. (r) Dursley v. Fitzhar^inge, C Ves. 251. (s) Davis V. Angell, i De G. F. & J. 524. (t) Studhohne v. Hodgson, 3 P. Wms. 300. [u) WestY. Saekmlle, 1903, 2 Ch. 378 ; also Sackville- Westy. Alt -Gen., 1910, P. 143. {x) Bute [Marquess) v. James, 33 Ch. Div. 167. Legitimacy Declaration Act, 1858. BILLS TO PERPETUATE TESTIMONY, ETC. 546 volved {y) : But, noiv, under the Legitimacy Declaration Act, 1858 (21 & 22 Vict. c. 93), the Probate and Divorce Division is empovifered to make decrees declaratory of the legitimacy or illegitimacy of the petitioners, — or of the validity or invalidity of the marriages of their parents or grandparents, or of their ovs^n marriages {z) . (2) Bills to take Evidence De Bene Esse were (or in- 0>) Bills to eluded) bills to take the testimony of persons resident j)e Bene Esse, abroad, and also of aged and infirm persons resident within —object of ; the jurisdiction: They were brought by persons already in ' litigation, — and in the absence of some pending litigation they were not competent at all {a) : For example, where certain customary tenants claimed (as against the Lord of the Manor), that they were entitled to the mines and minerals within and under their customary tenements, — and the lord disputed their right, — and they commenced (in 1815) their action against the lord {Moggridge v. Hall); and the evidence of some twelve aged witnesses on behalf of the tenants (and in support of the right which they Also, example claimed) was taken de bene esse under an order made in °*- that action; and the evidence so taken was filed; and after- wards (in 1871), the customary tenants commenced against the lord a further action of Phillips v. Llanover (6), — by way of supplement to the former action (all the parties to which, and also all the twelve witnesses in which, had mean- while died), — and the lord had shortly before (in 1870 — 1) commenced his action against them {Llanover v. Horn- fray (6)), to establish his exclusive title to the mines and minerals in question, — The Court held the evidence in Moggridge v. Hall admissible, — and admitted it, — and decided in favour of the claim of the customary tenants, and against the right of the lord: And, nota bene, the priricipTe there acted upon was merely the principle (which is of general application), that if (in a dispute respecting lands) any fact comes distinctly in issue, the {y) Townshend Peerage case, 10 01. & Pin. 289. {z) Frederick v. Att.-Gen., L. E. 3 P. & M. 196, 270. («) Angell v. Angell, 1 S. & S. 83. (J) 13 Oh. D. 380 ; 19 Oh. D. 224. N N 546 THE AUXILIARY JURISDICTION. evidence given as to that fact is admissible, to prove the same fact, in another action between the same parties or between their respective privies, — and that even although the later action concerns other lands (c) . And note, that the modern practice in this class of action is regulated by Order XXXVII. r. 5. Section II. On Bills Quia Timet, — And Bills of Peace. 7wP"\- f (1) ^«^^s §»« Timet were in the nature of suits of limet, — object ^ ' . ^„ . , i..™ ,. , of ; also, cases prevention or oi precaution, — the plamtift seeking the *°''- aid of the Court, because he feared {quia timet) some future probable injury to his rights or interests, and not because any injury had already happened: And the nature of the relief asked for and given was dependent on circumstances, — The Court sometimes appointing a receiver of the rents or other income {d), or of the cargo of aship (e), or of goods and chattels generally; and some- times ordering a pecuniary fund to be paid into Court(/), or otherwise providing {e.g.) some indemnity to a trustee against his proximate liability {g); and the Court would sometimes merely grant a protective in j unction (^): And, nota bene, since the Judicature Acts, an action in the nature of a bill quia timet may still be brought (i) : But the action does not lie, merely to enforce {e.g.) the right of a lessee to be indemnified by his assignee against the future accruing liabilities under the lease {i), — but only against liabilities already accrued (fc) : Nor, generally will the action lie, unless the plaintiff is able to prove danger of a substantial kind, and which is either imminent {I) or inevitable (m), — or else can show some contract entit- ling him to the relief (w) . («) Doe V. Foster, 1 A. & E. 791. (d) Zeney v. Callingham, 1908, 1 K. B. 79. (e) Dreyfus t. Peruvian Guano, 42 Ch. D. 66. (/) Brice v. Carroll, 1902, 2 Ch. 176. Ig) Hobbs v. Wayet, 36 Ch. D. 266. (h) Wooldridge v. JYorris, L. R. 6 Eq. 410. (i) Sarris v. Boots, 1904, 2 Ch. 376. (k) Lloyd y. Dimmack, 7 Ch. D. 398. \l) Fleieher v. Bealey, 28 Ch. Div. 688. («») Pattisson v. Gilford, L. E,. 18 Eq. 259. («) Siddons v. Short, 2 C. P. D. 672. BILLS OF PEACE. 547 (2) Bills of Peace bore some resemblance to Bills quia Bills of peace, iimet : But a bill of peace (properly so called) was a bill —object of; brought by a person to establish and perpetuate a right . f es o . claimed by him, which (from its very nature) might be controverted in different successive actions, — ^and greatly to his vexation, — and justice required, that he should be quieted in his right, once that right had been sufficiently declared, — Interest reifuhlicce ut sit finis litium : There- Buu of peace, fore, .where (e.^.) there was one general right to be '"s*»"<'es of. established against a great number of persons, — or where (e.g.) one person claimed or defended a right against many, or many claimed or defended a right against one, — The Court would first of all declare the right, — and would thereafter (in order to prevent any recurrence of the suit) make a decree binding on all, — for example, in actions by lords against their tenants, to establish their right to fines, or to the profits of fairs, or to a sole and several fishery (o) . But, wherever the plaintiff had definitively established his right, and still was in danger of further litigation relative to it (p), a perpetual in- junction would have been granted, — Soil., because the litigation, after a time, became vexatious: And all vexa- tious litigation will be suppressed (q) ; and the 59 & 60 Vict. c. 51, now specifically provides for its suppression. Section III. On the Cancelling, and Delivery up, of Documents. The jurisdiction of equity to direct the cancellation and Instniment, the delivery up of documents, was also of a protective deUwy°up character (r), — the jurisdiction being largely discre- of,— not a tionary, however : Thus, voluntary agreements (although ^^^^^ ^* ^ ^f not enforceable) would not ordinarily have been set aside, judicial dis- — Scil., because if a man would bind himself in a volun- the*Coi^ tary deed (and without any power of revocation), equity would, ordinarily, leave him bound thereby (s) : Therefore, where a man (who was a sot) signed a very foolish sale- (o) Mayor of York v. Filkinffton, 1 Atk. 282. {p) Bath {Earl) v. Sherwin, Prec. Cli. 261. \q) Grepe v. Loam, 37 Ch. D. 168. (r) Williams v. Bull, 32 Beav. 57i. (s) Mally. Hall, L. R. 8 Ch. App. 430. N N 2 548 THE AUXILIARY JURISDICTION. I. Voidable instruments, — (a) When oanoelled. (b) When not cancelled. contract, and asked to be relieved from it (as being only a little scrap of paper at an ale-house), the Court did not relieve him (it). But if a contract was voidable for actual fraud (or for constructive fraud), — and, sometimes, even where the plaintiff had participated in the fraud, — the plaintiff would have been relieved; and the Court would also, — ordinarily at least, but not invariably, — have set aside a contract which was voidable for oppression or undue influence (tt), — or for illegality (a;) . II. Void instruments, (a) When delivered up, and upon what grounds. As regards instruments which were utterly void, — There was at one time some doubt, whether the remedy obtainable in a Court of law was not sufficient: But the jurisdiction of equity was, eventually, fully established, — Soil., in all oases where the delivery up of the document would help to prevent the perpetration of some future wrong {y) : Also, if the document was of such turpitude, that it ought not to be used for any purpose, it was against conscience for the party holding it to retain it; and if the document was, e.g., a negotiable instrument, it was in danger of being used for a fraudulent purpose; and if it was a title deed, its existence (in an uncancelled state) threw a cloud upon the title {z) . (b) When not Occasionally, however, the proper remedy was not to andTTponwh'at ^avc the document cancelled, but to have the evidence grounds. which Supported the defence to it perpetuated : And where the illegality of the instrument appeared upon the face of it, there was no danger even, that the lapse of time would prejudice the defendant in his defence: Also, it is never wise to jump before you come to the stile, — so that if CD. has never shown any intention of suing you, and you rather think he never will, why should you sue him in an access of timMity (a) ? [t) Villers V. Beaumont, 1 Vern. 100. (m) St. John V. St. John, 11 Ves. 535. (ah Barclay \. Pearson, 1893, 2 Ch. 154. ij/) Jones T. Meriotieth Building Society, 1891, 2 Ch. 587. (a) Kemp v. Prior, 7 Ves. 248. (a) The Leeds Forge case, 1906, 2 Ch. 498. BILLS TO ESTABLISH WILLS. 549 Section IV. On Bills to Establish Wills. Equity had no general jurisdiction over wills,— the Ejuity dealt proper Court having been (as regards personalty) the ^"'i^wji'f Ecclesiastical Court— and latterly the Court of Probate ""='''^''**"y- (its successor); and (as regards realty) the Court of Common Pleas or of the Queen's Bench,— and latterly (upon citation of the heir and devisee) the Court of Probate: But, where a will came incidentally into question in equity, that Court necessarily acquired some jurisdiction regarding the will, — And (in such a case) if the validity of the will was admitted (or had already been established elsewhere), equity acted upon it to the fullest extent: And if not, then equity established the will, — either directing (for this purpose) an issue devisavit vel non ; or else trying that issue itself, — 8cil., by calling the attesting witnesses (that is to say, per testes) or sending it for trial at the assizes. Oecasionally, also, the very object of the suit in equity Devisee might might have been to establish the will: For example, where ^"^j "^*° the will was a will of real estate, and it was desired to establish a will obtain a perpetual injunction against the heir-at-law, agaiost heir- equity assumed jurisdiction, — Because the devisee (being in possession) could not litigate the will at law (Scil., in an action of ejectment), and yet was entitled to say to the heir-at-law, "Litigate now or never" (b): And where equity so established the will, — or where equity decreed that the trusts of the will should be executed (c), — that was a final decision upon the validity of the will. But a purchaser from the devisee could not have required the devisee to so establish the will (d) . The facilities for proving a will in the Probate Division Pioof of will are now very great: That is to say, — Firstly, if the will m Court of has the usual attestation clause, it is proved hj the simple effect of'— oath of the executor (that he believes the will to be the true last will); and, Secondly, if the will has not that (J) Boyse v. Sossiorough, 6 H. L. Ca. 1. («) Gooch V. Gooeh, 3 Du Gr. M. & G-. 366, on p. 386. (d) Colton v. Wilson, 3 P. Wms. 190 ; Mormon v. Arnold, 19 Ves. 669 ; Grove v. Bastard, 1 De G. M. & 0-. 12 ; Grove v. Young, 5 De G. & Sm. 38. (a) When will is proved in solemn form. 550 THE AUXILIAEY JURISDICTION. attestation clause, then (in addition to the executor's oath to the effect af oreeaid) there is required also, from one of the subsorihing witnesses, an affidavit of due execution by the testator: Probate so obtained is called probate in common form, — probate in solemn form being where both the attesting witnesses are sworn and examined, and other corroborative evidence is taken, — in the presence of the widow and next of kin (including the heir) : And when the will has onoe been proved in such solemn form, the probate is conclusive proof of the will (e), — even where the heir may only have been oited as one of the next of kin (/) . (b) When will Where, — as ie most frequently the case, — the probate common^form. l^Eis been in common form, and in some subsequent action affecting the real estate, it becomes necessary to establish the devise, — The plaintiff gives to the defendant, — ten days at least before the trial, — notice, that he intends using at the trial the probate (or an office copy thereof); and thereupon such probate (or office copy) becomes suffi- cient evidence, — Unless the defendant (within four days after receiving the notice) gives a counter-notice to the effect that he disputes the devise (gr),— In which latter case, it becomes necessary to prove the will as a substan- tive independent fact, and in accordance with the ordinary rules of evidenoe. Probate The Probate Division may also, in a proper case, make SoiusiTe" ^^ order for the revocation of a probate (A),— and even juiisdiction of. for the revocation of a revocation of the probate (i) ; and it is not proper, to come into Chancery for such a i^ur- pose (fc) : And, in fact, all objections to wills (or to parts of wills), on the ground of fraud, must now be taken in the Probate Division (^): But the jurisdiction of the Chancery Division, as regards relieving against accidents and mistakes in wills (m), and as to all questions («) 20 & 21 Viot. c. 77, a. 62. (/) Bem-dsley v. Beardsley, 1899, 1 Q. B. 746. (s) 20 & 21 Viot. 0. 77, s. 64. (/() Rhodes v. Rhodes, 7 App. Ca. 192. (t) Birch V, Birch, 1902, P. 130. {k) Meluish v. Milton, 3 Ch. D. 27. \l) Morrell v. Morrell, 7 P. D. 68. (»») Salt T. Fi/m, 28 Oh. Div. 163. THE WRIT "nE exeat REGNO." 651 relative to the true construction of the will (w), remains intaot: The Probate Division used to have no jurisdiction, vi^iiis, which ■where the will did not deal at all with the personal estate, reTi*estete and did not even appoint an executor, — but dealt only only,— probate with the real estate (o); and even under the Judicature °*- Acts, the Probate Division did not acquire any jurisdic- tion in the matter of wills purely of real estate (p): But, under the Land Transfer Act, 1897 (q), the Probate Divi- sion has now jurisdiction (for all the purposes of that Act), — even as regards wills which deal only with real estate (r) . Section V. On the Writ " Ne exeat regno." The writ of ne exeat regno was a prerogative writ, — Greneral juris- and was originally applicable only on great political ^^^™ occasions (Scil., for the safety and benefit of the realm); ,. ' . and such having been the character of the writ in its equitable origin, it was afterwards applied with great caution and '^^'"'^^'^j^bte jealousy, when a private subject invoked its aid in favour only, of his private rights (s) : That is to say, — A Court of Equity, where it granted the writ (Scil., in respect of an equitable debt), strictly followed the rules which were applicable in a Court of law to the issue of the corresponding writ of cap-iaa (Scil., in respect of a legal deht(t)): Therefore, in a Court of Equity, it was required, that the equitable demand should have been certain and not contingent (^«) : And it was further required, that the amount demanded in the action should have already become actually due and payable (v) . The old ne exeat jurisdiction in equity appears to still remain, — although it has been to a large extent modified by the successive modern statutes, which have to a certain extent abolished imprisonment for debt on mesne pro- cess (x) . (n) Wagstaffv. Jalland, 1908, 1 Oh. 162. (o) Bradford v. louiig, 26 Ch. D. 656. \p) Be Cubbon, 11 Prob. Div. 169. (y) 60 & 61 Vict. o. 65. (r) Ee Barnett, 1898, P. 145. (s) Flack V. Eolm, IJ. & "W. 405. (t) Dromr v. Beyer, 13 Ch. D. 242. («) Sobey v. Sobey, L. R. 15 Eq. 200. («i) Oolvenon v. Bleom/teld, 29 Ch. D. 341. {x) 32 & 33 Vict. 0. 62, d. 6, modifying 1 & 2 Viot. o. 110, s. 3. 562 pfHE AtXlLlAKY JURISDICTION. Ne exeat^ — under divers statutes. The writ has also been made specifically available, in certain cases, by statute : For example, under the Abscond- ing Debtors Act, 1870 («/), the writ may issue, where the debtor is going abroad after the issue of a debtor summons against him {z) : And, under the Bankruptcy Act, 1883 (a), s. 25, the debtor may be arrested, if he is about to abscond after a bankruptcy notice has been issued (or a bank- ruptcy petition presented) against him: And, generally, under the Debtors Act, 1869 (&), ss. 4, 6, the debtor (even an executor-debtor (o)) may be arrested (by way of bail to the action), whenever the debt is £50 or more, — assum- ing always that the defendant is about to leave the country (on purpose to hamper the plaintiff in his action), and assuming also that the debt demanded in the action is certain and not contingent, and is a debt presently j)ay- able(J). But the Court still, of course, exercises a great discretion in issuing the writ (e), — even in cases where the writ is (and continues) available: Companies Act, 1908, — an'est (or seizure) under. Also, under the Companies Act, 1908 (/), s. 176, on proof (of probable cause for believing) that a contribu- tory (in a winding-up) is about to quit England, or other- wise to abscond, — or is about to remove (or to conceal) any of his property, for the purpose either (1) of evading payment of calls, or (2) of avoiding examination re- specting the affairs of the company, — The Court may cause the contributory to be arrested (Sail., in a proper case (g)); and may also (either in lieu of or in addition to arresting him) cause his books and papers and his move- able personal property (but not his real estates) to be seized, — the period during which the arrest or the seizure is to continue being in the discretion of the Court. {y) 33 & 34 Viot. o. 76. («) Zees V. Patterson, 7 Ch. D. 866. (ffi) 46 & 47 Vict. 0. 62. (5) 32 & 33 Viot. c. 62; and see also Ord. LXIX. rr. 1—7. (c) Dmey v. Bourne, 1906, 1 Ch. 6U7. Id) Colverson v. Bloomfield, supra. («) In re Woodward, 30 Sol. Journ. 753. (/) 8 Edw. VII. c. 69. Ig) In re Imperial Mercantile Credit Co., L. E. 6 Eq. 264. INDEX. ABANDONMENT— Of contract, 491. Of lien, 87, 88. Of right to rescind for fraud, 409. ABATEMENT— Of legacies, 148, 218, 232. Of nuisance, 519, 520. Of purchase-money, 489, 502. ABRIDGMENTS- Being bond fide, 527, 528. ABSCONDING DEBTORS ACT— Arrest under, 552. ABSOLUTE APPOINTMENT, 173. ABSOLUTE ASSIGNMENT, 44, 93. ABSOLUTE CONVEYANCE— When a security only, 83, 238. ABSOLUTE OBLIGATION— Discharge of, for the future, if impossible, 393. Past payments on account of, continue good, 394. ABUSE OF LEGAL POWERS— By trustee, 99. Injunctions against, at suit of Attorney-General, 517. Injunctions against, at suit of shareholder, 517. ACCEPTANCE OF OFFER, 477. ACCEPTANCE OF TITLE, 504. ACCEPTANCE OF TRUST— Effect of, 98. By married woman, 97, 351. ACCIDENT— Definition of, 389. Relief from, at law, 389. Relief from, in equity, 389. 554 INDEX. ACCIDENT— co« 516. Injunction, against breach of statutory con- tract, 517. I (B) Injunctions against torts, 518 et seq. (1) Waste, generally, 518. Permissive waste not remediable by injunc- tion, 519. Nor ameliorative waste, 519. Nor where waste (by usage) no waste, 519. 586 INDEX. INJXJNCTION—continued. II. Injunctions Isinoe Judicature Acts — continued. (B) Injunctions against torts — continued. (2) Nuisances, 519 et seq. (a) Public nuisance producing special damage, 519, 520. Unless legalised by statute, 520. (J) Private nuisance, 520. Where injury irreparable, 521. Or where claim of right, 521. Varieties of — Darkening ancient lights, 521. ■• Obstructing access of air, 521. Oeoasioning a subsidence, 521, 522. Flooding a neighbour's land, 522. Pollution (and further pollution) of streams, 522. Libels, slanders, &c., 524. Threats, 524. Boycotting, and watching and besetting, 524, 525. Expulsion from club, 525. (C) Injunctions in connection with patents, &c., 525. (1) Patents, 525. (2) Copyrights, 526. (3) Trade marks, 530. (4) Partnership matters, 448, 449. (D) Miscellaneous — To restrain marriage of ward, 377. To enforce separation deed, 474. To stay completion of contract for sale, 494. INNOCENT USEE— Of registered trade-mark, effect of, formerly, 531. Now, 531. IN PERSONAM— Equity acts, 17, 511. INSOLVENT ESTATES— Administration of, in Chaucery, 200 et secj. Administration of, in Bankruptcy, 207. Eights of secured creditors in eases of, 207, 208. INSTALMENTS— Mortgage-money, when payable by, 245. Improvement charges, repayable by, 93. Order for payment of debt by, 207, 208. INSUEANCE— Eorfeiture on breach of covenant for, relief from, 323, 324. Contract of, 435. Want of interest, effect of, 79. INTEEBST— Payable on breach of trust, 134. On legacies, 151. In case of settled legacy, 151. In case of settled legacy of residue, 152. INDEX. 587 mTER'EST— continued. On legacies — oontiitued. In ease of legacy to infant, 151, 155. In case of legacy in lieu of dower, 151. In case of legacy in satisfaction of debt, 151. In case of specific fund, given by way of legacy, 151, 152. On annuity, 152. On charges generally, 296. On debts, 206. On redemption, and on foreclosure, of mortgages, 244. Where judgment obtained for mortgage debt, 251. Under certificate fixing day for redemption, 244. Is at 4 per cent, in case of equitable mortgage by deposit, 296. And on equitable charges generally, 296. And on judgment for mortgage debt, 251. When higher rate recoverable, 256. When compound interest recoverable, 257. On purchase-money, where possession taken, 504. And even where possession not taken, 504. And even where property unproductive of present profit, 504. INTEREST AND DUTY— ,S'ee Duty axd Interest. INTERNAL MANAGEMENT— Of company, generally, 415. Where fraudulent, 415. INTERPLEADER— At common law, 538. Requisites to, in equity, 538 et seq. Cases for, 539, 540. Cases not for, 538, 539. Sheriff, position of, 540. Procedure on, 540. Transfer of, into County Court, 541. IN TERROREM— Legacy given, or given over, 155, 156. INTESTATES' ESTATES ACT, 1884— Escheat to crown and to lord, under, 84. INVESTMENT— Discretion of trustees as to, 103, 109. Continuing existing investments, 119, 121. Varying investments, 121. Valuations for, by trustees, 102. Limit of value for, generally, 165. Effect, if limit exceeded, 165. Range of investments authorised for trustees, 119 et seq. A purchase, when authorised, is an investment, 121. JOINT AND SEVERAL— Liability of trustees, 115. Of directors, 407, 413. Of partners, 209, 457, 458. Of sureties, 439. 588 INDEX. JOINT-MORTGAGEES— No survivorship as between, 16, 86. Effect, when they jointly purchase equity of redemption, 86. JOINT-TENANCIES— Equity does not favour, 15, 16. None, where purchase-money advanced in unequal shares, 16, 86. None, where mortgage-money advanced in equal or unequal shares, 16, 86. EuU survivorship where lands devised in joint tenancy, 86. Lieu for improvements on property held in, 317. For cost of renewing lease by joint-tenant, 317. Partition in connection with, 534. Effect of inarriage on, 16. Effect of marriage settlement on, 16. Resulting trusts, in cases of, 86. JOINTRESS— Right of, to redeem mortgage, 241. JUDGMENT CREDITOR— Was not within 27 Eliz. o. 4... 34. Priority of, in administration of assets, 193, 201. Where estate insolvent, 205. Charge of, is within Locke King's Act, when, 214, 215. Right of, to redeem mortgage, 241. Tacking as regards, |274, 275, 303. JUDICATURE ACT, 1873— s. 24 (Fusion), 3, 4. sub-s. 5 (Injunction), 610. s. 25 (Fusion), 3, 4. sub-s. 5 (Ejectment by mortgagor), 5, 251. sub-s. 6 (Choses in action), 48. sub-s. 8 (Injunction or receiver), 510. s. 34 (Exclusive jurisdiction), 4, 448. D. 51 (Lords Justices and Lunacy), 382. JUDICATURE ACT, 1875— o. 10 (Insolvent estates), 200 et seq. JUDICATURE ACT, 1884— s. 17 (Interpleader), 541. JUDICIAL TRUSTEE- Appointment of, 98. Retirement of, 98, 99. Removal of, 139. JUDICIAL TRUSTEES ACT, 1896— Appointment of trustee under, 98. Relief under, in case of breach of trust, 105. JURISDICTION IN EQUITY— Nature of, 1. Origin of, 2. Modern fusion of, with law, 3. Varieties of, 3. Prior to Judicature Acts, 3. INDEX. 689 JUEISDICTION IN 'EQ.VITY— continued. Since these Acta, 3, 4. Auxiliary, generally, 3, 4, 542. Concurrent, generally, 3, 4, 388. Not lost, where law acquires jurisdiction, 390. Over real estate abroad, 18. (1) As against the contracting party, 18. (2) As against the assignee of the contract, 19. JUEISDICTION IN LUNACY— Distinguished from jurisdiction in Chancery, 381, 382. JUST ALLOWANCES— To bailiffs of estates, 464. To executors, 208, 209. To mortgagees, 257, 258. To partners, 455. To co-owners on partition, 317, 537. KEEPING DOWN INTEREST— Generally, 225, 226. Even when rents and profits are insufficient, 226. KNOCK-OUT SALE, 429. LACHES— Bar, generally, to equitable relief, 15. As against Attorney-General even, 15, 517. Bar to an account, 463. Bar to injunction, 517. Bar to specific performance, 491. LAND CEETIFICATE— Deposit of, by way of mortgage, 295 . LANDLORD AND TENANT— Limited relief between, formerly, 323. Now, 323, 324. Interpleader as between, 539, 540. LAND REGISTRY— Registration in — Of charges, 90, 264, 278. And of deeds of arrangement, 45. And of judgments and executions, 200. LANDS CLAUSES CONSOLIDATION ACT, 1845— Conversion under, 159. Compulsory taking of mortgaged lands under, 288, 289. Restrictive covenants, discharge of, under, 513. LAND TRANSFER ACT, 1897— Legal personal representative now trustee under, for bene- ficial devisee or heir, 95, 96, 126, 551. Administration under, 64, 95, 195, 218. Retainer, not extended by, 222. Pretenced titles, provision relative to, 56. Legal estate in copyholds, not affected by, 95, 96. 590 INDEX . LAND TEANSFEE ACT, 1891 —continued. No tacking, when mortgage registered under, 278. Certificate of land, deposit of, by way of mortgage, 295. Certificate of charge, deposit of, by way of sub-mortgage, 295. LAW AND EQUITY— Severance of, 1, 2. Fusion of, 3, 4. True effect of, 4. LAW, COURT OF— Opinion of, sometimes taken by Court of Equity, 542. (1) In a legal matter — was binding in equity, 542. (2) In an equitable matter— was for guidance only, 542. LAW PREVAILS, WHERE EQUITIES EQUAL— Generally, 11. When defendant a purchaser for value without notice, 11. (1) Equitable estate only against legal and equitable estate, 11. (2) Legal estate against equitable estate, 12. (3) Equitable estate against equitable estate, 12. (4) An equity only against an actual estate, 13. LEASE— Agreement for, where possession given, 17, 479. Containing option of purchase, 160, 161. Renewal of, 91, 261. Relief in connection with, 323, 324. LEASEHOLDS— Not within Statute of Uses, 22. Within Statute of Frauds, 22. Within Locke King's Acts, 215. Of wife, husband's rights in, 327, 329. Survival of, to wife, 328, 359. Of wife, equity to settlement out of, 359, 360. After-acquired, of bankrupt, 497. LEGACIES— Suits for, only in equity, 147. Unless executors assent, 147. Or unless in cases of appropriation, 147. Varieties of, and distinctions between, 148. Priority of certain kinds of, 149. Construction of — (1) Where charged on land, 151. (2) Where not so charged, 151. Interest upon, from what date computed, in general, 151. In the case of settled legacy, 151. In the case of settled residue, 152. Accretions to, when they go with the legacy and when not, 153. And when as capital, and when as income, 154. In satisfaction of debts — See Satisfaction. Revocation of, under mistake, 404. Conditions of forfeiture annexed to, effect of — (1) Generally, 155. (2) In case of settled legacy, 155, 156. Set-off, in case of, 468. INDEX. 691 LEGACIES, CHARGE OF— On real estate, effect of, 151. What sufficient to create, 233. LEGACY TO INFANT— Maintenance out of, 155. LEGACY TO WIFE— In lieu of dower, &c., 149. Subject to maintaining children, 153. LEGAL PERSONAL EEPRESEN PATIVE- Under Land Transfer Act, 1897, position of, 95, 96, 126, 195, 218, 551. No judgment for administration of assets, until, 194. Only interim protection, meanwhile, of assets, 194. LEGATEE-DEBTOR— Set-off, in case of, 468. LEGITIMACY, DECLARATION OF, 644, 545. LESSEES— May redeem mortgages, 241. Relief of, from forfeitures, 323, 324. No relief, in general, in ease of accident, 393. LIBEL— Restrained by injunction, when, 524. licence- To take possession, 307. To work patent, 260, 461. LICENCE, PUBLIC-HOUSE, 289. LIEN— Varieties of, 311. Vendor's, 87, 311. Vendee's, 89. Trustee's, for expenses of renewing lease, 91. Life-tenant's, 91. Of solicitor — See Solicitob'.'? LiE>r. Banker's lien, 316. Stock-broker's lien, 311. On ship, for necessaries, 311. Quasi liens — For money advanced for improvements, 317. Joint-tenant's, for costs of redecorations, 317. Of company on shares, 318. LIFE ASSURANCE, POLICIES OF— Assignment of, 29, 47. Comprised in mortgage, 247. Frauds in connection with, 410, 411. LIMITATION OF ESTATES— In equity, if trust executed, 8, 25. In equity, if trust executory, 8, 25, 26. 692 INDEX. LIMITATION, STATUTES OF— In what sense equity bound by, 8, 9. In case of — Fraud, 9. Negligence, 9. Ignorance, 9. Charities barred like ' individuals, 74. As between trustees and cestui que trust, 112. Under Trustee Act, 1888... 74, 112. Time runs in favour of constructive trustees. 111. For devastavit, 196, 224. For administration of assets, 224. As against solicitor's lien, 314, 315. Creditors having a charge only, barred in twelve years, 193. Even where an express trust, 195, 196. Rights of mortgagee in posse -sion under, 246. Eights of mortgagor in possession under, 247. Time for suing; on mortgage deed, 246 ef seg. In case of mortgage of reversion, 248. On bond, or on covenant, 249. In case of husband suing wife, 329. Against husband, in respect of debt of wife, 248. Twelve years, for administration action by creditors, 224. Twelve years, as between mortgagors and mortgagees, 246. Inapplicable to mortgages of personal estate, 249. Unity of mortgagor and mortgagee, effect of, upon, 248. LIMITED PARTNERSHIPS— Constitution of, 459. General partners in, 459. Limited partners in, 459. Management of, 459, 460. Winding-up of, 460. Apart from statute, 460. LIS PENDENS— Registration of, 199. Assignment of, 55. LIVERY COMPANIES (LONDON)— Are not charities, 71. LOAN OF MONEY— For term certain, 239. Implies a debt, 251. Contract for, not enforceable, 477. Save in case of company's debentures, 477. By Queen Anne's Bounty, 236. LOCAL BOARDS— Complaints to, 523. Injunctions against, 523. LOCAL RATES— Priority of, 204, 206. LOCKE KING'S ACTS— General construction of, 214, 216. Exoneration of personal estate under, 214. INDEX. 593 LOCKE KING'S ACTS—continued. Vendor's lien is within, 215. Judgment is within, 215. Other- charges within, 215, 216. Estates tail not within, 214. LORDS JUSTICES— Jurisdiction of, in Lunacy, 382. LOSS, ACCIDENTAL— By executors, 103, 392. . LOSS AND GAIN— When no set-off of, 129. Appropriation of, 129, 130. LUNATICS (SO FOUND)— Jurisdiction in equity, in respect of, 381, 382. Lunacy Act, 1890, proceedings under, 382 et seq. Maintenance of, 383. Partition, in cases of, 535. LUNATICS (NOT SO FOUND)— Jurisdiction in equity in respect of, 385. Maintenance of, 385. In case of poor law guardians, 386, 387. Exercise of power of sale by, 386. MAINTENANCE— Of infants, 378, 379. Of lunatics, 383, 385. Of pauper husband, &o., 81, 354. MAINTENANCE OP INFANTS— Father liable for, 377. When father entitled to allowance for, 379. When directed, notwithstanding trust for accumulation, 380, MANDAMUS— Injunction in lieu of, 511. MANDATORY INJUNCTION, 510. "MARKETABLE TITLE," 499. MARRIAGE— Of legatee, with consent, 155, 156. Rights of husband in wife's property on, 327, 328. Marriage brokage contracts, 419. Contracts in general restraint of, 420. MARRIAGE ACT— Settlements under, 378. MARRIAGE ARTICLES— Generally, 25, 402. Of infant, 417. S. Q Q 594 INDEX. MARRIAGE CONSIDERATION— Under 27 Eliz. u. 4... 34, 35. Who within scope of, and who not, 37, 38. Case of widow re-marrying, 38. Case of widower re-marrying, 38. MARRIAGE SETTLEMENT— Voluntary limitations in, intermixture of, 38. Praudu'ent, as against creditors, 31, 370. In case of Infants marrying, 378. Mistakes in, rectification of, 402. MARRIED WOMAN— Presumption of advancement, in case of, 79, 80. Liability of, to poor law authority, 81, 354. Impounding as against, 138, 342. Concurrence of, in breach of trust, 136. Alienation by, 329, 331, 364. Survivorship of, right of, 359 et seq. Powers of appointment in — Exercise of, by, 333, 337, 350. Release and 'extinguishment of, by, 364, 431. Separate estate of, 327 et seq. Equity to a settlement of, 359. Engaged in trade, position of, 335, 350. Contracts by,. 348, 418. Ante-nuptial debts of, 336, 348, 352. Breaches of trust by, 335, 351, 352. Torts of, 334. Before marriage, 352, 353. Wills of, 349. When a surety for her husband, 292, 293. When an executrix, position of, 351. MARRIED WOMEN'S PROPERTY ACTS, 1870, 1874r- Separate estate under, 346, 347. MARRIED WOMEN'S PROPERTY ACT, 1882— Separate property, under, 347 et seq. (1) In case of women married on or after 1st January, 1883.. .347. (2) In case of women married before lat January, 1883... 347. Married women, powers of, under — (a) As regards contracts, 348. (6) As regards actions, 350. (o) As regards wills, 349. {d) As regards loans to husband, 360. Or to husband's firm, 351. (e) As regards investments, 348. Married woman, liabilities of, under, 348. For ante-nuptial debts, 352, 353. Eor debts contracted during marriage, 348. For brefich of trust or devastavit, 351. In case of pauper hu'sband or pauper children, 81, 354. Liable to be made a bankrupt, 350. Her deed formerly required to be acknowledged, 352. Secus, now, 352. INDEX. 695 MAEEIED WOMEN'S PROPERTY ACT, 1882— continued. Remedies of wife (civil and criminal) under, 353. Wife as executrix, position of, 351. Settlements not affected by, 355. Resitraint on anticipation not affected by, 355. MARRIED WOMEN'S PROPERTY ACT, 1884... 353. MARRIED WOMEN'S PROPERTY ACT, 1893— Married woman now contracts exactly as a man, 349. And need not have separate property at date, 349. Married woman now makes a will exactly as a man, 349. And need not have separate property at date, 349. And will operates aUo after discoverture, 349. And without re-execution, 349. MAERiED WOMEN'S PROPERTY ACT, 1907— Trust estates, deed not now required to be acknowledged, 352. MARRIED WOMEN'S (SUMMARY JURISDICTION) ACT, 1895— Provisions of, 345. Decisions upon, 345, 346. MARSHALLING OP ASSETS— Principle of, 227. I. As between creditors, 227. Simple contract creditors permitted to stand in the place of specialty creditors as against realty, 227, 228. Mortgagee or unpaid vendor exhausting the personal estate, rights of the other creditors in such a case, 228. II. As between beneficiaries, where the creditors have inter- vened, 230. Principle of, 231. III. As between legatees, where some charged and others not charged on real estate, 233. As against sureties, 445. MARSHALLING OF SECURITIES— Generally, 228. In favour of devisees and legatees even, 229. In the case of sureties, 229, 445 . MATRIMONIAL CAUSES ACT, 1878— Separate estate under, 344. MAXIMS OF EQUITY— Equity will not suffer a wrong without a remedy, 5. Equity follows the law, 6. Where equities are equal, the first in time shall prevail, 10. Where there is equal equity, the law must prevail, 11. He who seeks equity must do equity, 13. He who comes into equity must come with clean hands, 14. Delay defeats equities, 14. Equality is equity, 15. Equity looks to tne intent rather than the form, 16. Equity looks on as done what ought to have been done, 16. Equity imputes an intention to fulfil obligation, 17. Equity acts in personam, 17, 18, 19. Q Q 2 696 INDEX . MEEGBE— Where covenantor marries oovenantee, 183. Where debtor ia appointed executor, 115. MISDESCRIPTION— In case of legatees, 403. In ca«e of contracts for the sale of land, 488, 489. MISFEASANCE— Of directors, 413, 414. MISLEADING CONDITIONS, 486, 492. MISREPEESENTATION— What is, 406. Effect of, in equity, 406, 407. When a defence to specific performance, 485. By directors of companies, 407, 408. Between vendors and purchasers, 406, 407, 483. MISTAKE— (1) At law, 398. (2) In equity, 396. (o) Being mistake of law, 396. An agreement under a mistake of law binding, 396. IJnless in the case of money paid to the Court's ofBoer, 396. Or unless the ignorance is so gross as to suggest a fraud, 397. Ambiguity, relief in case of, 399. A compromise, entered into with full knowledge, upheld, 397. Family compromises, entered into on full disclosure, upheld, 397, 398. Relief by consent, and on equitable terms, 398. (6) Being mistake of fact, 399. ' (i) Fact must be material, 399. (ii) Party having knowledge must, in general, have been under an obligation to disclose the fact, 400. Diversity of relief, according as mistake is — (i) unilateral, 401. or (ii) mutual, 401, 402. Laches, effect of, where imputable, 401, 402. Mistakes in marriage settleinents, 402. Mistakes in wills, 403. No relief, where defect fatal by statute, 404, 405. MODUS ET CONVENTIO VINCUNT LEGEM, 238. MONEY-LENDERS— Now require to be registered, 427. Must have one office only, 427. Must do the business there, 427. Contracts of, void otherwise, 427. Even in equity, 427. And even in a bond fide assignee for value, 57. MONEY-LENDING— Contracts of infant, 416, 417. Unconscionable contracts, generally, 426. Usually not specifically enforced, 477. Jurisdiction under Money-Lenders' Act, 1900.. .427. INDEX. 597 MONEY PAID— Under void conti-act of infant, 417. Under mistake, wlien it may be recovered bacli:, 396. MORTGAGES— Definition of, 235. What properties are mortgageable, 235. What properties are not mortgageable, 236 . Or only within limits and under reitriotiona, 236. At common law, were estates upon condition, 237. Interference of equity in respect of, 238. "Once a mortgage, always a mortgage," 238. For a term certain, 239. Right of pre-emption may be given to mortgagee, 239. Conveyance, with option of re-purchase, 239. Forms of mortgage now in disuse — (1) Viviim vadium, 240. (2) Mortiium radium, 240. (3) JFelsh mortgage, 240. Modern mortgage, nature of equity of redemption in, 240. Redemption of, 241. Price of, 241. Persons entitled to redeem, 241. Successive redemptions, 242. Arrears of interest recoverable on redemption, 244. Compelling transfer instead of redemption, 244, 245. Time to redeem, 245. Statutes of Limitation, effect of, 246. (1) Where mortgagee is in possession, 246. (2) Where mortgagor is in possession, 247. («) Mortgagor in possession, position of, 251. Not accountable for rents and profits, 251. Restrained from waste, if security insuflScient, 251, 252. Is tenant at will to mortgagee, 252 . Unless holding by re-demise, 252. Could not make leases binding on mortgagee, 252. Can do so now, 252. Right of mortgagee to take possession, 253. And to take possession oif^ part, 254. (i) Mortgagee in possession, position of, 254. Liable for tenant-right valuation, 253. May have receiver, and sometimes also manager, 255. Must keep estate in necessary repair with surplus rents, 257. But not so as to " improve the mortgagor out of his estate," 257. Must account, 258. Even althougli he has assigned the mortgage, 258. Interest, rate of, 256. When compound interest, 257. How far, and to whom, accountable for back-rents, 258, 259. Accountable for wilful default, 259. Not bound to speculate, 259. May have inquiry as to outlay, 259. Not accountable for collateral advantages, 259, 260. Annual rests against, when and when not directed, 260. 598 INDEX . MORTGAGES— eo»«M»«e(«. (S) Mortgagee in possession, position of — continued. Could not be compelled to produce mortgagor's title- deeds, 260. Can be compelled now, 260, 261. Liability of, for loss of title-deeds, 261. Cannot take a valid. lease from mortgagor, 261. Or purchase froni himself, 261. Second mortgagee may purchase from first, 261, 287. Could not in equity make a binding lease, 252. Can do so now, 252. Renewing lease, holds subject to mortgagor's equity, 261. Could not fell timber unless security insufficient, 262. Can do so now, 262. Remedies of mortgagee, 281. (1) Foreclosure, 281. Nature of, and time for, 281. Judgment in, 282. Against transferee of mortgage, 284. (2) Sale, 285. By Court in foreclosure action, 285. Under power of sale in mortgage deed, 285. Under 'power of sale in Conveyancing Act, 1881... 288. On compulsory purchase, 288, 289. (3) Distress under attornment clause, 289. (4) Administration action, 290. Mortgagee may pursue all his remedies concurrently, 290. If mortgagee foreclose first, and then sue on the covenant, he "opens the foreclosure," 291. Mortgage followed by sale, and subsequently mortgage by purchaser, continuing liability of mortgagor, 292. The equity of redemption follows the limitations of the original estate, 292. MORTGAGEES— Becoming entitled by adverse possession, 246, 247. Settlement by, of the mortgage debt, 254. Buying up mortgage debt for less, may charge for whole, 441. Just allowances to, 257, 258. MORTGAGE, EQUITABLE— Of realty, by deposit of title-deeds, 294. By deposit of receipt for purchase-money, 294. By deposit of land certificate, 295. Or of office copy, 295. Of copy of Court Roll, 295. Remedies upon, 295. Recovery of possession on foreclosure, 295, 296. Equitable mortgagee, priority of, 297, 298. Legal mortgagee may be postponed to, for fraud or gross negligence, 298. Interest on, rate of, 296. MORTGAGES OF PERSONALTY— (A) DifBerences between, and pledges — (a) In their own nature, 300. (i) As to remedies, 301. INDEX. 599 MORTGAGES OP F'EUSONAIjTY— continued. (B) Differences between, and mortgages of realty — (ff) Ab to remedies, 301. (6) As to application of surplus, 303. When the reversionary personal property falls into posses- sion, 302. MOTHER— Her right to be guardian, 373. MOTIVE— Of legacy, in questions of satisfaction, 186. Mistaken, in gift of legacy, 403, 404. MUTUAL CREDIT— Set-off, on ground of, 206, 467. Tacking, on ground of, 303. MUTUAL MISTAKE— Remedy for, rectification not rescission, 401. In case of marriage settlement, 402. NECESSARIES— Liability of infants for, 416. Liability of lunatics for, 415. Supplied to married woman, liability for, 418. NE EXEAT REGNO— Writ of, 551. In case of equitable debt, 551. Under divers statutes, 552. Under Companies Act, 1908. ..552. NEGATIVE CONTRACT— Enforced by injunction, 515. Enforced, although implied only, 516. Not enforced, where dependent on affirmative, 515. NEW TRUSTEES— See Trustees, New; Trustees, Old and New. NEXT OF KIN— Rights of, where trust of personal estate fails, 83. Rights of, on a conversion in equitjf, 163, 164. Administration action by, time for, 224. NO CONTRACT— A defence to specific performance, 494. NO default- No consolidation, 280. No foreclosure, 281. NO profits- No remuneration, 455. NON-ACTIONABLE CLAIMS— Not the subject of set-off, 468. When the subject of retainer, 220, 468. 600 INDEX. NON-DISCLOSURE— By parties to compromiBe, 397. By persons effecting insurances, 410. By directors, of contracts, 413, 414. NOTICE— (I.) Of prior right or claim, 262. Effect of, generally, 262. If express, might supply want of registration, 263. But not now, as regards lands in Yorkshire, 264, Except in cases of actual fraud, 264. Of prior contract not speaifieally enforceable, 263. Case of purchaser with notice, where his vendor bought without, 265. Case of sub-purchaser without notice, where his vendor bought with, 265. (la.) Of voluntary settlement, subsequent purchaser used not to be affected by, 266. Seotis, now, 266. In the case of a mortgage of residue, 270. In the case of the purchase or mortgage of a trustee-bene- ficiary's share, 270. May be actual or constructive, 266. (a) Actual notice, 266. What amounts to, 266. (J) Constructive notice, 267. (1) Where actual notice of some suggestive fact, 267. Not regarded in commercial dealings, 268. (2) Where inquiry purposely avoided to escape, 267. (3) Notice to agent, notice to principal, 270. Conveyancing Act, 1882, provisions of, as to, 272. Of terms of lease, 269. Of occupation or tenancy, 269. (ll.) Of assignment of chose in action, 49 et seq. Required to complete assignment, 49. As regards equities arising subsequently, 52, 53. Effect, where the trustees all die, to whom given, 51. Priority acquired by, 50. Form of, 51. When not available, 52. NOTICE TO COMPLETE— Making time of essence of contract, 491. NOTICE TO REPAIR— Before ejectment by mortgagor, 6. NOTICE TO TREAT— When it effects a conversion of land into money, 159. NOTICE TO USE PROBATE— As evidence of devise, 550. NO TITLE— A defence to specific performance, 496. NUISANCE— Public, 519. INDEX. 601 NUISANCE — con tinued . Private, 520. Abatement of, 520. Injunction against, 520, 521. Where damage irreparable or continuing, 521. Or where claim of right, 520 . No injunction, in general, against Local Boards, 522, 523. OBJECTIONS TO TITLE— Being merely fanciful, 500. OFFICIAL EEFERBE— Accounts talcen by, 461. OLD AGE PENSION, 55. OLD TKUSTBES— jSee Trustees, Old and New. OPEN CONTRACT— Forty years' title in case of, 496. Sanitary and improvement charges, incidence of, 501. OPTION— Between rectification and rescission, 401. Between. sale and partition, 536. Between specific performance and rescission, 506, 507. In hire-purchase agreement, 304. OPTION OF PURCHASE— Conversion depending upon, in lease, 159 et seq. (1) As -between real and personal representatives of lessor, 159. (a) Option previous to will, 159. (1) General devise, 160. (2) Specific devise, 160. (b) Option subsequent to will, 160. (2) As between real and personal representatives of lessee, 160, 161. (3) As between the lessor and the lessee themselves, 161. Option, exercise of, may save forfeiture, 325. ORAL EVIDENCE— In proof of secret trust, 60. In proof of resulting trust, 81. To raise case of election, 178. In proof of satisfaction, 191. In proof of accident, mistake, or fraud, 400. OUTSTANDING DAY— In mortgage of leasehold by demise, 288. OUTSTANDING LEGAL ESTATE— Getting in of, 10, 11. By voluntary act, 273. By act not purely voluntary, 274. OUTSTANDING PERSONAL ESTATE— Duty of trustees and executors to get in, 119. Directions as to getting in, 209. 602 INDEX. PARAMOUNT— Lien, 311. Intent, 70. Title, 253. PARAPHERNALIA— Nature of, 357. Area of, now much narrowed, 358, 359. Pledge of, by husband, redemption of, 358. Wife cannot dispose of, during husband's life, 358. Husband cannot dispose of, by will, 358. PAROL AGREEMENT— As to lands, generally, 477. To give a mortgage of lands, void, 297. Unless accompanied by deposit of title-deeds, 296, 297. Before marriage, for a settlement, 36. PAROL EVIDENCE— See Oral Evidence. PARTIAL PERFORMANCE- With abatement, 489, 502. Where covenant to purchase and settle land, 181. PARTIES TO ACTION— For administration, 208. For foreclosure or redemption, 241, 242. For specific performance, 484, 485. PARTITION— Equitable jurisdiction in, origin of, 634. In pais (i.e., without deed), effect of, 534, 536. Cases in which partition will be directed, 536. As to disabilities — Provisions of Trustee Act, 1893.. .535. And of Lunacy Act, 1890... 535. And of Partition Acts, 1868 and 1874... 536. Sale in lieu of, 536, 537. Judgment for, form of, 536. Costs of suit for, 537. PARTNERSHIP— Equity jurisdiction in, 448. Specific performance of agreement to enter into, 448. Injunction against omission of name of one of partners, 449. Against carrying on another business, 449. Against exclusion of partner, 449. Against destruction of partnership property, 449. Stay of proceedings, where agreement to refer, 449, 450. Constitution of, 450. Distinguished from part-ownership, 451. Terms of, 461. Continuance of, after term expired, 451. Dissolution of, modes of — (1) By operation of law, 451. (2) By agreement of parties, 452. (2«) By competent notice, 452. (2 J) By expiration of agreed term, 452. (3) By decree of Court, 452 et seq. (3«) By award of arbitrator, 450. INDEX . 603 PARTNERSHIP— co»rt««e(i. Account, only on dissolution, 453. Receiver, on dissolution, 453. Return of proportion of premium, 4S3. Dissolution, terms of, as to payment of debts, &c., 454. And as to distribution of surplus assets, 454. And as to costs, 454. Partner carrying on dissolved partnership, accountable, 456. And where no profits, no remuneration, 455. Representatives of deceased have no lien on partnership estate, 455. Surviving partners may validly mortgage, 455. In equity, land forming an asset of, is money, 456. Judgment creditor, charge in favour of, 456. Creditors may, on decease of one partner, go against sur- vivors, or against the estate of deceased, 457. Separate creditors paid out of separate estate before part- nership creditors, 467. Partnership creditors paid out of partnership fund before separate creditors, 458. The goodwill is an asset of the firm, 458. When it should be expressly assigned, 458. Survival of, on expiration of partnership term, 459. And upon death of partner, 459. PARTNERSHIP ACT, 1890— 8. 2 (Partnership and part ownership), 451. s. 3 (Postponed proofs), 458. 8. 16 (Notice to active partner), 271. 8. 24 (Shares of partners), 451. 8. 30 (Rival business), 449. 8. 35 (Decree for dissolution), 452. 3. 41 (Dissolution of fraudulent partnership), 452. s. 44 (Distribution of assets), 454. s. 46 (Law and equity), 448. PARTNERSHIPS (LIMITED) ACT, 1907... 459, 460. PART-OWNERSHIP— Distinguished from partnership, 451. PART-PERFORMANCE— What is, and what is not, 482. Not confined to contracts regarding land, 483. No effect from, if contract becomes impossible, 483. PAST MAINTENANCE— Of infant, 380. Of lunatic, 385, 386. PATENTEE— May have account against infringer, 461. PATENTS— Jurisdiction in equity regarding, 525. When patent of recent date, 525, 526. Particulars of objections, 526. Particulars of breaches, 526. Licences to work, generally, 260, 461. 604 INDEX , PAY— Assignment of, 55. Mortgage of, 236. PAYMENT INTO COURT— Under Trustee Relief Act, 140. Now under Trustee Act, 1893, s. 42... 140. By Life Assurance Company, 140. PEACE, BILLS OF, 647. PENAL SUM— Rules for distinguishing, 321. In Building Society mortgages, 256. PENALTIES— Equitable jurisdiction as regards, 319. Import prohibition, 319, 320. Rules as to distinguishing, from liquidated damages, 321. Are odious in law, 322. PENSIONS— Assignment of, 55. Mortgage of, 236. PERFORMANCE— Equity imputes an intention to fulfil an obligation, 17, 180. (1) Covenant to purchase land, and land is purchased, 180, 181. (2) Covenant to pay or leave by will, and share under the Statutes of Distribution, 182, 183. PERPETUATE TESTIMONY, BILL TO, 345. PERPETUITIES, RULE OF— Inapplicable to gift to charity, 73. Applicable, when and when not, to options in leases, 161. Applicable, in what sense, to the restraint on anticipation, 338. PERSONAL LIABILITY— Of executor, for mortgage-debts, 217. Of married woman, for debts, 334 et seg. Of stake-holder or bailee, in interpleader, 539, 540. PERSONALTY— Mortgages and pledges of, 300. Being reversionary, 302. Contracts regarding, specific performance of, 478. PEW-RENTS, 235. PIECEMEAL, Performance, 475. PIN-MONEY- Nature and object of, 357. Wife can, at most, claim only one year's arrears of, 357. Wife's executors cannot claim any arrears of, 357. PIRACY OF COPYRIGHT— Injunction against, 526 et seg. Injunction against growing piracy, 530. INDEX . 605 PLEDGE— Difference between, and mortgage of personalty — (ff) In nature, 300. (i) As to remedies, 300, 301. Differences between, and mortgage of realty, 301, 307. PLEDGOR AND PLEDGEE— Pledgor, his right of redemption, 300. Pledgee, his right to sell, 301. Pledgee, his right of transfer, 302. POLICE COURT allowance- To wife, 55. POLICY OF ASSURANCE— Assignable in equity, 46. Assignable now at law also, 47. -When person paying premiums has lien on, 94. In mortgage, 250. Mortgagee's payment of premiums, effect of, 250. Frauds in connection with, 410. Illegal, title under, 79. POLLUTION— Of streams, restrained by injunction, 522. Increase of, likewise restrained, 522. At suit of riparian owner, not of stranger, 522. Against co-pollutors, in one and the same action, 522. Of underground water, 522. POOR LAW— Rates, 204. Lunatics, 386, 387. Married women, 81, 354. PORTIONS— Leaning against double, 188. Satisfaction of, by legacy, 187. POSITIVE ACT— Of carelessness, will postpone first mortgagee, 10, 279, 298. On part of public body, injunction available, 523. POSSESSION— Reduction into, of ohoses in action, 118, 119. Of choses in action of wife, 327, 363 et seq. Of mortgagor, quality of, 251. Mortgagee, right of, to, 253, 254. Under bill of sale, 307, 308. When it is a part-performance, and when not, 482, 483. Effect of giving, under contract of sale, 503. Agreement to give by specified day, implies a title shown by that day, 504. POSSIBILITIES— In real estate, assignable at law, 47. Naked, assignable in equity, 46. In personalty, assignable in equity, 46. And now also, semble, at law, 47, 48. 606 INDEX. POST-OBIT BOND— When relieved against, 427. Terms of relief, 427, 428. POWER OF ATTORNEY— (See Attorney, Power of. POWER OF SALE— In executor — Where a charge of debts, &c., 64, 65, 125, 126. And, now, under the Land Transfer Act, 1897... 95, 96, 126, S51. In the case of mortgages — (a) Where mortgage is by executors, 126, 127. (6) In ordinary mortgages — (1) By Court, in action, 285. (2) Under express power in mortgage deed, 285, 286. (3) Under Conveyancing Act, 1881... 286. Not exerci-eab'e, after foreclosure absolute, 285. Exerciseable, after tit'.e by adverse possession, 286. In equitable mortgage by deposit, 295. In case of pledges and mortgages of personalty, 300, 301. In case of bill of sale, 307. POWERS— Election in case of, 171, 172. Defective execution of, when ;aided, 391. Release of, 431. Illusory appointments, doctrine of, 433. POWERS, DISCRETIONARY— Control of exercise of, 103, 104. POWERS IN NATURE OF TRUSTS— What are, and what are not, 60, 61. Court compels their execution, 61. POWERS, RELEASE OP— (1) In case of special power of appointment, 431. (2) None, where power is coupled with a duty, 432. POWERS, STATUTORY— Exercise of, lawful and unlawful, 517. Exercise of, vexatious, 617. Exercise of, colourable, 517. PRECATORY WORDS— No trust, if there is a discretion, 58, 59. PRE-EMPTION— Right of, in mortgagee, 239. PREFERENCE— Of creditors, 194. How prevented, 194. PREFERENTIAL PAYMENTS— In bankruptcy, 204. In insolvent administrations, 204. In winding up, 202. Even against debenture holders, 275. INDEX. 607 PRESUMPTION— Of advancement, 79, 80, 81. Of satisfaction, 184 et seq. " PEETENCED TITLE "— Buying of, 56. PRICE— Fixing of, on a sale, 394, 494. Abatement of, for deficiency, 489, 502. PRINCIPAL AND INTEREST— In case of mortgage debts, 241, 242, 250, 251. PRIOR CONTRACT— Notice of, effect of, 262, 263. When defence to specific performance, 493, 494. PRIOR TITLE— Notice of, effect of, 262. PRIORITY— Of title— (1) According to time, 10, 262 et seq. (2) According to registration — In the case of lands, 278. In the ease of ships, 309, 310. Of debts in administration of assets, 193 et seq. Of liability of assets inter se, 212. PROBATE— In common form, 549, 550. In solemn form, 550. As proof of devise, 550. PROFIT COSTS— Of solicitor-trustee, 107. Of solicitor-mortgagee, 107. PROFITS OR DAMAGES— Election between, in patent actions, 461. PROHIBITION— Penalty imports, 319, 320. PROMOTERS— Are trustees, 109. Liability of, for frauds, 413, 414. PROOF OF TITLE— In partition, 534. In case of devise, 550. PROSPECTUS— Fraud in, by statute, 413, 414. " PROTECTED TRANSACTIONS "— In bankruptcy, 42. PROTECTION ORDER— Separate estate under, 343, 344. 608 INDEX. PUBLIC BODY— Injunction against, 622, 523. Discretion of Court as to, 523. Powers of, vexatious use of, 517. PUBLIC COMPANY— Borrowing powers of, 236, 237. Undertaking of, mortgage of, 237. PUBLIC TRUSTEE— Appointment of, and varieties of, 140, 141. Position of, and powers of, 141. Cannot be admitted to copyholds, 142. . PURCHASE— Completion of, deeds outstanding, 505, 506. PURCHASE-DEED— Production of, by solicitor of vendor, 65. Receipt for purchase-money in or on, 65, 66. PURCHASE-MONEY— Liability of purchaser formerly to see to application of, 62. Seous, now, 63. Payment of, not a, part-performance, 482. Lien for, 87 et seq. Where part left on mortgage, by selling mortgagee, 288. Abatement of, for deficiency, 489, 502. PURCHASE BY MORTGAGEE— Under exercise of power of sale — None, by selling mortgagee, 287. By second mortgagee from first, 261, 287. By mortgagor, 287. PURCHASER— Liability of, to see to application of purcbaae-mouey, 62 et seq. Trustee cannot in general be, from cestui que trust, 109, 110. Mortgagee selling may not himself become, 287. Second mortgagee may, 261, 287. Mortgagor may, 287. Defective execution of power, aided in favour of, 391. No relief against, in case of accident, 394, 395. In case of mistake, 401. PURCHASE FOR VALUE— Defence of, effect of, formerly and now, 11 et seq., 543. PURCHASE, RELIEF FROM— Where the property is already the purchaser's own, 399. Where the property is already spent, 399. Or non-existent, 399. QUEEN ANNE'S BOUNTY— Charges of benefices in favour of, 236. QUIA TIMET— Purposes for which available, 546. INDEX. -609 QtXI PRIOR EST TEMPORE, POTIOR EST JURE— Application of this maxim and its limits, 10, 262, 263. SATE OF INTEREST— In case of breach of trust, 134. On legacies, 151, 152. On mortgages, 261. In case of equitable mortgages, 296. On equitable charges, generally, 296. RATES— Priority of, in administration, 193, 204. And in bankruptcy, &c., 204. Even as against debentures, 275. As against bills of sale, 307. REAL REPRESENTATIVE— Under Land Transfer Act, 1897... 95, 96, 126, 551. REAL ESTATE— Of 'wife, husband's rights in, 327, 359. Of ■wife, mortgage of, by husband and wife, 292, 293. Mortgage of, by executor, 125. Specific performance relative to, 479 et seq. RECEIVER— Generally, 311. Equitable execution, by appointment of, 6, 202. Effect of appointment of, in administration action, 194. Effect of appointment of, for judgment creditor, 202. Right of mortgagee to appoint, 255, 256. Indemnity of, 128, 255. On dissolution of partnership, 453. In aid of injunction, 511. Appointed quia timet, 646. RECEIVER AND MANAGER— When entitled (like an executor) to indemnity, 128, 255. When appointed on behalf of mortgagee, 255. In debenture-holders' action, 283. On dissolution of a partnership, 453. RECEIVERSHIP ORDER— Equitable relief by, 6, 202. Against lands, effect of, 202. Against personal estate, effect of, 202. RECONVERSION— (1) By act of parties, 168. (2) By operation of law, 168. Money at home and no declaration regarding it, 168. No reconversion, if any outstanding interest, 169. Under provisions of Partition Act, 164. Under provisions of Lands Clauses Act, 164. When no equity for a, generally, 169. RECONVEYANCE- On redemption, of mortgaged premises, 292. Where mortgage is of wife's estate, 292, 293. S. K R 610 INDEX. BECTIFICATION OF DEED— On ground of mutual mistake, 401 . In lieu of rescission, 401. In case of marriage settlements, 402. In case of disentailing deeds, 404, 405. REDEEM, EIGHT TO— Legal, 238. Equitable, 238. Who is entitled to, 241. REDEEM UP, FORECLOSE DOWN— Meaning of this rule, 242. REDEEM THE WHOLE, 281. REDEMPTION— Price of, and additions to, 241, 242. REDEMPTION, RIGHT OF— (1) Legal, 238, 300. (2) Equitable, 238, 295, 300. REDUCTION INTO POSSESSION— A duty of trustee, for security of trust funds, 118. Of wife's chose, by husband, 327, 328, 359. RE-ENTRY— For non-payment of rent, 322, 324. For breach of covenant to repair, 323, 324. Relief against, 324, 325. REFUNDING ASSETS— Generally, 211, 217. Paid legatees not, in general, liable, 211, 212. REGISTERED ASSURANCE— Prevails, in general, 263. REGISTRATION— Of lands in Middlesex Registry, 263, 296. Of lands in Yorkshire Registries, 263, 296. Of vendor's lien, in Yorkshire, 296. Of equitable mortgage in Yorkshire, 296. Of bills of sale, 306. Of copyrights, 527. Of ships, 309, 310. Of contracts (Companies Act), 413, 414. Of debentures, 305, 413. Of deeds of arrangement with creditors, 45. REIMBURSEMENT— Of trustees, 116, 117. Clause for, 117. Out of residue, usually, 117. May be out of specific fund, 117. May be out of income even, 117. INDEX. 611 RELEASE— Of equity to a settlement, 364, 365. Of power, 431. Of right of action for fraud, 304, 409. Of principal debtor, 441, 442. Of trustee, 137, 140. Of surety, 442. Of co-surety, 443. REMAINDERMAN— Adjustment of rights between, and tenant for life, 123, 225, 226. Not entitled to partition, 534, 535. REMOVAL— Of guardians, 376, 377. Of trustees, 140. REMUNERATION— Trustee may stipulate for, 108. Solicitor-trustee, 107, 108. Solicitor-mortgagee, 107. Solicitor being neither a trustee nor a mortgagee, 423, 424. RENEWAL OF LEASE— Lien for expenses of, 94, 317. RENT— In arrear, proof for, 204, 205. Distress for, 204. Payment of, to mortgagee, 249, 250. Interpleader in respect of, 539, 640. Continuing liability for, in case of fire, 393. RE-OPENING— The biddings, 210. The foreclosure, 291. REPAIR, COVENANT TO— Relief against breach of, 323. No relief from, in case of accident, 393. REPUDIATION OF CONTRACT— On ground of fraud, generally, 304, 409. When it becomes impossible, 408. By infant, must be within reasonable time, 417, 418. RE-PURCHASE— Right of, in mortgagor, 239. REQUISITIONS ON TITLE— Withdrawal of, 606, 607. Decision of Court upon, 508, 509. RESCISSION- Of contract of sale — By vendor, 607. By purchaser, 506. On ground of mistake, 401 . On ground of fraud, 304, 409. In lieu of rectification, 401, 402. Damages, recovery of, without, 409. Secret profits, recovery of, without, 409. Becoming impossible, effect of, 412. R R 2 61-2 INDEX. RESCISSION' CLAUSE— Relation of, to compen-ation elaniie, 507. 508. RESIDU.\EY EST.iTE— Katnre of title to, 53. Assignee of, 53. Debts, payment of, out of, 53, 212, 230, 231. EESTEAIXT OX AXTICIPATIOIf— Origin of, 337. Xecessity for, 337, 338. Words su£5cierit to, create, or not sufficient, 339, 340. Operation of, 338, 339. Destruction of, 340. Release of, 341. Arrears of separate e.state, when free from, 342. Impounding of separate estate, although subject to, 136, 342. Liability to costs, although subject to, 136, 342. RESTRICrr^'E COVEXAXTS— Affecting title to land, 500, 513. Are like easements affecting land, 513. Notice of, effect of, before and after completion, 513. Enforced by injunction, 512. Suspension of, and revival of, 513. Discharge of, 513. When merely personal to vendor, 514. Release of, by conduct, 513. Expiration of, 514. Attempted fraudulent evasion of, 433. RETAIXEE— By executor, 219 et seq. By administrator, 220, 221. In specie, 221. Of statute-barred debt, 221 . None by heir, 222. Distinguished from set-off, 468. RETAINER BY EXECUTOR— Eight of, and limits to, 219, 220. When compulsory, 222. By married woman executrix, 220. In respect of damages even, 222. None, against legatee in respect of a mere liabilitij, 468. None, in bankruptcy administration, 221. Distinguished from set-off, 468. REVERSIONARY LAND- Legacy charged upon, 196, 243. EEVERSIOXARY LEASEHOLDS— Conversion of, 123. Husband's title to wife's, 327, 360, 361. REVEESIONAEY PERSONAL ESTATE— Mortgage of — When reversion falls in before sale, 302. Of wife, assignment of, 365, 366. Under Malius's Act, 364. Bar of time in respect of, 249. INDEX. 613 REVERSIONER— Laches on the Jiart of, 15, 519. May redeem mortgage, 241. Frauds upon, 426. Not entitled to partition, 534, 535. i RIGHT OF PROOF— Of wife, against husband's estate, 350, 351. Of surety, where debtor is bankrupt, 445, 446. Of partner, against partnership estate, 454. RIVAL BUSINESS, 449. ROMAN CATHOLIC CHARITIES, 77. SAILORS, COMMON— Frauds upon, 426. SALARIES— Assignment of, 55. Mortgage of, 236. Priority of, in insolvent administration, 204. SALE, POWER OF— /See Powee of Sale. SALVAGE CHARGES, 94. SALVAGE PAYMENTS, 94. SATISFACTION- (1) Of debts by legacies, 184, 185. Legacy less than debt, not a satisfaction, 184. Circumstances rebutting the presumption of, 185. (2) Of 'legacies by subsequent legacies, 185. (3) Of legacy by portion, and of portion by legacy, 187 et seq. Rule does not apply to legacies to a stranger, 187, Where donor in loco parentis to donee, 188. Same principles applicable, whether settlement comes before will or will before settlement, 188, 189. But where settlement comes first, persons taking under it are purchasers, with right to elect, 189. When pro tanto, 190. Legacy to child (or wife) to whom testator indebted, 190. Advancement by father to child to whom he is indebted, 190. To child indebted to father, 190. Extrinsic evidence, admissibility of, 191. SAVINGS— Of separate estate, generally, 331. Investments of, 331. SAVINGS BANK ACT, 1891— Priority in payment of debts due from actuary of, 193, 205. schedule- To bill of sale, when necessary, 306. SCHEME— For charity, when and when not directed, 69 . For improvements, 93, 94. General building, 500, 513. 614 INDEX. SEA VIEW— ; Injunction against interrupting, 433. SECRET AGREEMENT— ' In, fraud of creditors, 430. In fraud of marriage, 419. In fraud of object of power, 430, 431. SECRET PROFITS— Of agent, 425, 426. Of auctioneer, 242. SECRET TRUSTS— When enforced, and when not, 59, 60. Created subsequently to will, 60. Evidence of, 60. SECURED CREDITOR— Who is, and who is not, 201, 202. Eight of proof by, in Bankruptcy and in Chancery, 201. Wife, when, on husband's estate, 350, 351. SEPARATE ESTATE— Origin of the jurisdiction in equity, 328, 329. Creation of, modes of, 329. Words creating, 330. What words insufficient, 330. Wife's power of disposition over, 330. The savings of income of separate estate are, 331. Also, the investments of such savings, 331, 332. Wife may permit husband to receive, 332. Or may make an absolute gift of, to husband, 332. Also, husband takes what is undisposed of at wife's death, 332, 333. Wife could not originally contract debts in equity, 333. Her separate estate, latterly, was bound — By instrument under seal, 333. By bill of exchange or promissory note, 333, 334. By written agreement, 334. And, now, on merely verbal engagements, 334. No personal decree against wife, 335. Wife cannot be made bankrupt, 335, 336. Unless in trade, 335. Wife cannot be committed, 336. Administration of, 337. SEPARATE ESTATE, STATUTORY— Varieties of — (1) Under Divorce Act, 343. (a) Upon judicial separation, 343. (b) On divorce or decree of nullity, 343. (2) Under Matrimonial Causes Act, 1878... 344. (3) Under Maintenance in Case of Desertion Act, 1886... 344. (4) Under Summary Jurisdiction (Married Women) Act, 1895... 344, 345. (5) Under Married Women's Property Act, 1870... 346. (6) Under Married Women's Property Acts, 1882, 1893. . . 347 et seg. INDEX. 615 SEPARATION DEED— Liability of covenantor in, 133. Effect of resumption of cohabitation on, 329. Savings of income under, 331. Enforcement of, 474. Being neither illegal nor immoral, 474. Condition of marriage remains, notwithstanding, 313. SEEVICE, CONTRACTS OP— Restraints in, 420. Injunctions to enforce, 475, 516, 623. SET-OEE— At law, 465. In equity, 465 et seq. , Of costs against costs, generally, 466. Of damages against damages, 466. Of joint debt against several debt, 467. None, in general, of debts against calls, 466. None, in general, of debts accrued in different rights, 467. None, in general, of debts intrinsically different, -468. Distinguished from retainer, 220, 468. And from tacking, 303. SETTLED LAND ACT, 1882— Regarding receipts by trustee, 63. Regarding trusteeship of tenant for life, 92. Regarding improvements by tenant for life, 93. Regarding investments of capital moneys, 93, 120. Regarding exercise of powers of tenant for life, 94. SETTLED LEGACY— Interest on, 151. Forfeiture of, 155, 166. SETTLED LEGACY OF RESIDUE— Interest on, 162. SETTLED RESIDUE— Interest on, 162. SETTLEMENT— I. Apart from consideration of marriage — (a) Voluntary, 31, 33. (6) Colourably valuable, 37. II. In consideration of marriage — (a) Where the marriage is to follow, 36. Who are within the scope of the marriage con- sideration, 37, 38. (S) Where the marriage is already over, 36. Where settlement is in pursuance of ante-nuptial articles, 38. Or where slight value in money is added, 36. III. On wife and children — Under equity to settlement, 359 et seq. IV. In case of infants (male and female) — (a) Under Marriage Act, 1824... 378. lb) Under Infants' Settlement Act, 1855... 378. 616 INDEX, SETTLEMENT, EQUITY TO— /See Equity to Settlement. SHARES— Lien of company on, 318. Issue of, at a discount, 414. Issue of, at a premium, 414. Purchase of, by company itself, 414. Contracts regarding, specific performance of, 478. SHIPS— Ownership of, 79, 309. Mortgages of, 309. Equitable interests in, 309, 310. Liens on, 311. SILENCE— When it amounts to affirmation, 409, 410. SLANDER— Injunction to stop, 524. SOLICITOR— When trustee, not allowed profit costs, 107. When mortgagee, allowed profit costs, 107. Costs of, when regulated by statute, 107, 108, 423, 424. Discharging himself, position of, 315. Liability of, for negligence, 279. Notice to, when notice to client, 270, 272. Professional remuneration of — (1) Being a trustee, 107, 423. (2) Being a mortgagee, 107, 423. (3) Being neither trustee nor mortgagee, 423, 424. Agreement to pay gross sum, for past business, is valid, 423, 424. Waits for his remuneration, in general, till business com- pleted, 424, 425. Lien of — iSee Solioitob's Lien. SOLICITOR'S LIEN— (1) On deeds and papers of client, 312. (2) On fund recovered, 312. (fl) At the common law, 312. lb) By statute, 312, 313. Extends, in general, to entire fund, 313, 314. (2a) On costs recovered, 313. In case of town agent, 314. How far it prevents a set-off, 315. How affected by compromise of action, 315, 316. Executor of solicitor, entitled to, 313. Assign of solicitor, entitled to, 313. Bar of time, as against, senible, no, 314, 315. SPECIE, ENJOYMENT IN, 123. SPECIE, RETAINER IN, 221. SPECIFIC LEGACY— Characteristics of, 148. Assent of executor to, 147. Interest on, 151, 152. INDEX. 617 SPECIFIC PERFORMANCE— True sense of the phrase, 479. Cases in which equity will not decree, 474. (1) lUegal or unmoral contracts, 474. (2) Agreements without consideration, 475. (2a) Revocable contracts, 475. (3) Contracts impossible to enforce, 475. (4) Agreements for a reference, 476. (5) Contracts for the loan of money, 476. Exceptional case, 476. (6) Contracts wanting in mutuality, 477. (7) Contracts not in writing, when writing required, 477. (8) Contracts by donees of powers, 477. Contracts concerning lands enforced, in general, 479. Contracts as to personalty, not enforced, in general, 478. (1) Personal chattels of which contracts enforced, 478. («) Railway shares, 478. (6) Assigned debts under bankruptcy, 478. (c) Articles of vcrfti, 478. {d) Heirlooms, pictures, &c., 478. (e) Trust stocks, and trust-chattels, 478, 479. (2) Lands, contracts enforced, 479. Scil., as against the contracting party, 19, 479. Ascertainment of contract, 480. Want of writing supplied, 481. Where unconscientious to rely on it, 481. Where contract is partly performed, 482. (3) Representations, when enforced, 484. Representations on marriage, 484. Actions for, parties to, &c., 484. Where vendor or purchaser is bankrupt, 485. Defences to action for — (1) Misrepresentation having reference to contract, 485. (2) Mistake, 486. (1) Where mistake is mutual, 486. (2) Where mistake is unilateral, 487. (3) Where a want of definiteness, 487. (3a) Where error in contract, 487, 488. (o) In reducing contract into writing, 487. (6) Where an original misunderstanding, 488. (c) Where subsequent parol variation, 488. (3) Misdescription, 488. Purchaser not compelled to take freehold for copy- hold, 488. Or an under-lease for an original lease, 488. Or building land which is not building laud, 488. Or agricultural land which has no right of cartway to it, 489. Where difference is slight and a proper subject for compensation, contract enforced with compensation, 489. No compensation where fraud, 490. Nor where compensation cannot be esti- mated, 490. (4) Lapse of time, 491. (6) General trickiness, 491. 618 INDEX. SPECIFIC PERFOEMANCE— co«^m««(«. Defences to action for — continued. (6) Great hardship, 492. (7) Breach of trust (or of prior contract), 493, 494. (8) No contract, 494. (9) Want of title, 496. (9a) Title defeasible, 489. Restrictive covenants, effect of, 500. Street improvements, liability for, 501. Conditions excluding compensation, 502. Conveyance, when to be settled by the Court, 502. Possession, when usually given, 503. Effect of taking, 503. Repudiation of contract, by purchaser, 506. Rescission of contract, by vendor, 507. STATUTE-BARRED DEBTS— Acknowledgment to revive, 197, 198. Admission to revive, 197. Payment of, by executors, 196. Even after judgment, 197. Retainer of, 220. Set-off, in case of, 468. Appropriation of payment to, 470. STATUTES- IS Edw. I. stat. 1, c. 24 (Writ in consimili oasu), 2. 17 Edw. II. u. 9 (Idiots), 381. c. 10 (Lunatics), 381. 23 Hen. VIII. u. 10 (Superstitious uses), 77. 27 Hen. VIII. c. 10 (Uses), 21, 22. 31 Hen. VIII. c. 1 (Partition), 534. 32 Hen. VIII. c. 9 (Pretenced titles), 56. c. 32 (Partition), 534. 1 Edw. VI. 0. 14 (Superstitious uses), 77. 13 Bliz. c. 5 (Fraudu ent conveyances), 31. c. 20 (Benefices), 235. 27 Eliz. c. 4 (Voluntary conveyances), 33, 73, 266. 43 Eliz. 0. 4 (Charities), 67. 21 Jac. I. c. 16 (Limitations), 196, 197, 463. 12 Car. II. c. 24 (Testamentary guardian), 373. 29 Car. II. v. 3 (Frauds)— s. 4 (Agreements in writing), 36, 435. ss. 7, 8, 9 (Trusts), 22, 36. s. 17 (Contracts), 481. B. 25 (Husband, administrator), -332, 333. 3 Will, k Mary, c. 14 (Fraudulent devises), 198. 4 & 5 Will. & Mary, c. 20 (Debts), 199. 3 & 4 Anne, c. 16 (Account), 461. 4 Anne, c. 17 (Set-off), 465. 4 & 5 Anne, c. 16 (Procedure) — s. 12 (Penal bonds), 319. 2 Geo. II. c. 22 (Set-off), 465. 8 Geo. II. c. 24 (Set-off), 465. 47 Geo. III. c. 74 (Simple contract debts), 195. 55 Geo. III. 0. 192 (Preston's Act, 1815), 27. 4 Geo. IV. c. 76 (Marriage of Infants), 378. 11 Geo. IV. & 1 Will. IV. u. 47 (Debts), 195, 198. INDEX. 619 STATUTES— co««»«ej mortgagees)) 288. s. 25 (Investments), 120. s. 29 (Trustee's receipts), 62. 24 & 25 Vict. c. 100 (Married Women), 344. 62Q INDEX. STATVTES—oontinued . 25 & 26 Vict. c. 63 (Merchant ships), 310. c. 89 (Companies), 413. 27. & 28 Vict. 0. 112 (Judgments), 200. c. 114 (Improvement of land), 93. 30 & 31 Vict. c. 48 (Puffer at auction), 429. c. 69 (Real estate charges), 215, 216. c. 131 (Companies), 413. c. 144 (Assignment of life policies), 47, 51. 31 & 32 Vict. u. 40 (Partition), 164, 535. u. 86 (Assignment of marine policies), 46. 32 & 33 Vict. c. 46 (Specialty debts), 192, 193, 220. 0. 62 (Debtors Act), 336, 551, 552. c. 71 (Bankruptcy Act), 39. 33 & 34 Vict. c. 14 (Naturalisation), 84, 97. c. 23 (Felons' Estates), 225. c. 28 (Soliiiitor's remuneration), 424. c. 35 (Apportionment), 154. c. 76 (Absconding debtors), 552. c. 93 (Married Women's Property), 346. 34 & 35 Vict. c. 43 (Dilapidations), 193. c. 44 (incumbent's resignation), 235. 36 & 37 Vict. c. 66 (Judicature Act, 1873)— See Judica- TDBB Act, 1873. 37 & 38 Vict. u. 37 (Powers Amendment Act, 1874), 433. u. 50 (Married Women's Property), 347. c. 57 (Real Property Limitations), 196, 197, 247, 248. c. 62 (Infants' relief), 417, 418. c. 78 (Vendors and purchasers), 508, 509. 38 & 39 Vict. -c. 55 (Local Boards), 522, 523. c. 77 (Judicature Act, 1875) — See JUDICA- TUEE Act, 1875. 39 & 40 Vict. c. 17 (Partition), 536. 40 & 41 Vict. c. 34 (Locke King's Further Amendment Act), 215, 216. 41 Vict. c. 19 (Protection order), 344. 41 & 42 Vict. c. 31 (Bills of Sale Act, 1878), 38, 305. 44 & 45 Vict. c. 41 (Conveyancing Act, 1881) — See Con- veyancing Act, 1881. c. 44 (Solicitor's remuneration), 424. 45 & 46 Vict. c. 38 (Settled Land Act, 1882), 63, 92, 93, 120. c. 39 (Conveyancing Act, 1882), 139, 244, 272. c. 43 (Bills of sale), 38, 305. c. 61 (Bills and notes), 391. c. 75 (Married Women's Property) — S'ee Mab- EiED Women's Pbopeety Act, 1882. 46 & 47 Vict. c. 52 (Bankruptcy Act, 1883)— See Bank- EnPTOY Act, 1883. u. 57 (Patents, designs, and trade-marks), 524, 531. 47 & 48 Vict. c. 14 (Married women), 353. c. 54 (Yorkshire registries), 90, 264, 278. c. 61 (Interpleader), 541. 0. 68 (Matrimonial causes), 342. c. 71 (Intestates' estates), 84, 162. INDEX. 621 STATVTBS— continued. 48 & 49 Vict. c. 4 (Yorkshire registries), 90, 264. c. 26 (Yorkshire registries), 90, 264. 49 & 50 Vict. 0. 27 (Guardians of infants), 373 et seq. 0. 52 (Maintenance on desertion), 344. 50 & 51 Vict. c. 57 (Arrangements with creditors), 45. 61 & 52 Vict. c. 20 (Church lands), 235, 236. c. 42 (Mortmain Act, 1888), 67. c. 51 (Land cLarges), 45, 200. c. 59 (Trustee Act, 1888)— /See Tbustee Act, 1888. 51 & 52 Vict, c. 62 (Debts), 204, 206. 52 & 53 Vict. c. 32 (Trust inveitments), 119. c. 45 (Factors), 303. c. 49 (Arbiaation), 449. 53 Vict. c. 5 (Lunacy), 382 et s :q., 535. 53 & 54 Vict. c. 39 (Partnership), 271, 448 et seq. c. 57 (Tenant-right), 253. c. 64 (Prospectuses), 407, 408, c. 71 (Bankruptcy;, 207, 54 Vict. c. 3 (Custody of children), 375. 54 & 55 Vict. c. 73 (Charities), 77. 55 & 56 Vict. c. 13 (Conveyancing Act, 1892), 139, 323, 324. 56 & 57 Vict. c. 5 (Regimental debts), 225. 0. 21 (Voluntary conveyances), 35, 73, 266. c. 53 (Trustees) — See Tedstee Act, 1893. c. 63 (Married women) — See Maebied Wo- men's Peopeety Act, 1893. c. 71 (Sale of goods) — s. 25 (Trade- vendees), 303. s. 47 (Sales in bulk), 304. s. 52 (Specific delivery up), 478. s. 58 (Puffer), 429. 57 & 58 Vict, c, 46 (Copyholds), 535. e. 47 (Building societies), 256. c. 60 (Merchant shipping), 309. 58 & 59 Viet. c. 25 (Solicitor-mortgagee's costs), 107. c. 39 (Married women's maintenance), 345. c. 40 (Parliamentary libels), 525. 59 & 60 Vict. c. 8 (Life assurance relief), 140. c. 35 (Judicial trustees), 98, 105. c. 51 (Vexatious litigation), 547. 60 & 61 Vict. c. 19 (Debts), 275. c. 65 (Land Transfer) — See Land Tean.sfee Act, 1897. 62 & 63 Vict. u. 20 (Corporation as trustee), 97. u. 46 (Improvement charges), 93. 63 & 64 Vict. c. 26 (Land charges and judgment debts), 200. c. 48 (Companies), 407, 413. 0. 51 (Money-Lenders), 57, 427. u. 62 (Colonial stocks), 120. 2 Edw. VII. K,. 28 (Drunkenness), 346. 4 Edw. VII. u. 15 (Children), 375. 5 Edw. VII. c. 15, s. 8 (Trade Marks), 531, 632, o. 68 (Eoyal arms), 532. 6 Edw. VII. c. 41 (Marine insurance), 48. c. 55 (Public trustees), 97, 140, 141. c. 58 (Workmen's Compensation), 206. 622 INDEX . STATUTES— co»«»««e«e. 7 Edw. VII. u. 12 (Police Court allowance to wife), 55. c. 18, s. 1 (Married women trustees), 97, 352. c. 24 (Limited partnerships), 459. c. 28, s. 1 (Joint patentees), 86, 260. s. 27 (Innocent infringement), S31. 0. 29, s. 33 (Innocent infringement), 531. s. 36 (Threats, patents), 524. s. 37 (Joint Patentees), 86, 260. e. 47 (Deceased wife's sister), 80, 356. c. 50 (Companies), 106, 407, 414. 8 Edw. VII. c. 27 (Married women), 81, 354. c. 28 (Agricultural land), 93, 226, 253, 320. c. 40 (Old age pensions), 55. o. 67 (Children, Protection of), 375, •c. 69 (Companies) — See Companies Act, 1908. STOP-ORDEE— When necessary to perfect assignment, 49, 52. Effect of obtaining, with notice, 264, 265. STOPPAGE IN TRANSITU— Effect of mortgage, before right of, is exercised, 304. STREET IMPROVEMENTS— Charges for, generally, 225, 501. When a charge, 501. Redemption of, 501. When only a personal liability, 501. SUB-LEASE— Gone, on forfeiture of lease, 290. Not gone, on surrender of lease, 433, 434. SUB-LESSEE— Belief of, in ease of breach of covenant, 323, 324. Affected by restrictive covenants, 500, 512, 513. SUB-MORTGAGE— Tiy deposit, 295. Notice of, on sale by mortgagee, 298. SUB-PLEDGE— Of negotiable instruments, 302 . Of non-negotiable instruments, 302. SUB-PURCHASE— From selling mortgagee, 287. SUBROGATION— Of creditors to executors carrying on testator's business, 126 et seq. Of person paying premium, 94. Of surety, 438. Of insurance office, 438. SUPPORT— Eight to, for land, 521, 522. Injunction' to maintain, 522. INDEX. 623 SUECHARGING AND FALSIFYING— Accounts, 137, 463. SUEETY— Writing required, when and when not, 435. Eights of creditor against surety, generally, 435. And as regards the continuance of the suretyship, 436. Surety bound, although principal debtor not bound, 436. Surety not bound, who executes on faith of others also exe- cuting (who fail to execute), 437. Surety can only charge against the principal debtor the actual amount paid, 441. Kemedies of, 437 et seq. (1) Bill quia timet to compel payment by debtor, 437. (2) Judicial declaration of discharge, 437. (3) Reimbursement by debtor, 437, 438. (4) Delivery up of securities by creditor, 438. (5) Contribution against co-surety, 439, 440. Circumstances discharging surety, 442 et seq. (1) If creditor varies contract, 442. (2) If creditor gives time to debtor, 442. Effect, if creditor reserves his rights against surety, 443. (2«) Where debt is payable by instalments, and time is given for one instalment only, 442. (3) If creditor releases debtor, 441, 442. (3ff) If creditor releases one co-surety, 443. (4) If creditor loses securities, 444, 446. Being executor, retainer by, 221. Marshalling of securities, as against, 445. Redemption of securities, as against, 277, 445. Tacking, as against, 277. On bankruptcy of principal debtor, proof by, 445, 446. SURETY FOR A LESSEE'S RENT— (1) Old tenancy, 437. (2) New tenancy, 437. SURPLUS— Under trust for creditors, 44. Upon a gift of income to charity, 72. On a conversion, 163, 164. Of sale proceeds, on sale by mortgagee,'96, 286. Where reversion falls in^ before sale by mortgagee, 302. SURPLUS SALE. PROCEEDS— On sale by mortgagee, 286. In case of equitable mortgages, 277, 303. In case of mortgages of chattels, 302. Selling mortgagee, a trustee of, 96, 286. Erroneous payment of, effect of, 286, 287. SURRENDER— Of lease, is subject to prior rights, 433, 434. SURVIVAL OF RIGHTS, &c.— Into trustees for time being, 118. 624 INDEX. SURVIVORSHIP, WIPE'S RIGHT OF— As to ohoses in action, not reduced into possession, 327, 363. (1) Accrued before the marriage, 365. (2) Accrued during the marriage, 365. As io leaseholds, not alienated, 328. Or only alienated in part, 328. Or only mortgaged, 328. As to realty of inneritanoe, 362. Defeated by alienation, 364. TACKING— Principle of, 273. Rules of, 273, 274. (1) Third mortgagee without notice, buying in first mort- gage, may tack, 273. But must have taken his third mortgage without notice of second, 273. (2) Judgment creditor cannot tack, 274. First mortgagee, lending further sum on a judg- ment, may tack, 274. (2a) If first mortgage provides for further advances, effect of notice before further advance, 274. As regards " floating securities " of company, 274, 275. In the case of building society's mortgages, 276. Tacking, as against surety, being surety simply, 277. Being also a co-mortgagor, 277. When a bond debt or simple contract debt may be tacked, 277. Tacking, non-existent as regards lands in Yorkshire, 278. Non-existent as regards registered charges, semble, 278. Tacking, distinguished from consolidation, 279, 280. TENANT FOR LIFE— Renewing lease, 91. Lien of, for improvements, 93. Duty of, to keep down interest on mortgage, 225, 226 . Right of, to redeem mortgage, 241; A trustee within Settled Land Act, 1882.. .91, 92. Repairs by, 519. Waste by, 518. Partition, at suit of, 534. TENANT-RIGHT— Payment for, by mortgagee, 253. TENDER— Of mortgage debt, effect of, 245, 246, 300. TESTAMENTARY EXPENSES— Allowance of, generally, 208, 209, Come out of residue, 53, 146. Include estate duty, when, 146. But not settlement estate duty, in general, 146. TESTIMONY, BILL TO PERPETUATE— What interest entitled a plaintiff to file a, 544.. A mere expectancy insufficient, formerly, 544. Seciia, now, 544. Under Legitimacy Declaration Act, 1858... 545. INDEX . 625 TIME OF THE ESSENCE— In the case of sale with right of re-purohase, 239. Not in mortgages, 239. Nor in pledges, 300, 301. Nor in contracts for the sale of land, 491. TITLE— Root of, 496. Good holding, 499. Marketable, 499. Doubtful, 496. TITLE, ACCRUAL OP— In case of residue, 53, 230, 231, 270. In ease of mortgages, 237, 248. On exercise of powers, 347. TITLE-DEEDS— Inquiry for, 265, 297. Custody of, not usually given to equitable tenant for life, 99. Discovery of, 543. ■ Delivery up of, 11, 505. Deposit of, by way of mortgage, 313. Loss of, by mortgagee, 261. Remedy, in case of lost, 390. TORT— Varieties of, 518. (1) Waste, 518. (2) Nuisance, &c., 519 et seq. (3) Infringement of patent, 525, 526. (3«) Infringement oi copyright, 527, 528. (3b) Infringement of trade-mark, 530, 531. TOWN-AGENT— Derivative lien of, 314. TRADE-MARKS— Qualified property in, apart from legislation, 630. Property in, by legislation, 531. Innocent user of, effect of, formerly and now, 531. Single words, when they may be, and when not, 531, Additions tending to deceive the public, 532. TRADE UNION— Expulsion from, 525. No administration of estate of, 225. TRADER— Goods .of, in bill of sale, 307. TRADESMEN— Selling goods at extravagant prices, 428. TRESPASS— Where claim of right, 620. TRICKINESS— A bar to specific performance, 491. s. S S 636 INDEX. TRUST— Distinguished from use, 21j 22. Constitution of, 24. Declaration of, 28. TRUSTEE— Who may Ibe, and who unsuitable to be, 97. Equity never wants, 98. May even appoint, to discharge duties of executor, 98. Soil., where such duties are trustee-duties,'98. Court may appoint judicial trustee, 98. May be compelled to perform any act of duty, 99. Or restrained from abuse of legal title, 99. Cannot renounce after acceptance, 100. Cannot delegate office, 100, 101. Unless there is a moral necessity for it, 101, 102. Or unless under Trustee Act, 1893. ..100. Care required in any lawful delegation, 101. When trustees may lawfully leave title-deeds with their solicitors, 101. Care and diligence required of, 103. ((?) Duties, 103. lb) Discretions, 104, 105. Limit of value for trust investments, 105. Relief from certain breaches, of trust, when trustee has acted reasonably and honestly, 105, 106. No remuneration allowed to, 106. Solicitor, allowed in general only costs out of pocket, 107. May stipulate to receive compensation, 108. Must not mate any advantage out of his trust, 108. Trading with trust estate, must account for profits, 109. Exceptional cases in wiich purchases hold good, 110. Constructive, not liable to same extent as express. 111. Protection to, afforded by Trustee Act, 1888... 112. Trustee liable for his co-trustee, practically, 112. Executor not liable for his co-executor, practically, 113. Recoupment and contribution of trustees, 115. Indemnity and reimbursement clauses, 116. Duties of, generally, 118. (1) Must get in property, 118. (2) Must secure outstanding property, 119. (3) Must invest in authorised securities, 119 et seq. (4) Must, in general, convert terminable and rever- sionary property, 122. (5) Must, in general, distinguish between capital and income, 124. Retainer by, 220. Appropriation of payments by, 471. Sales by, 62 et seq. Mortgages by, 125. Carrying on business of testator, 126 et seq. Survival of rights, powers, &c., 118. Remedies of cestui que trust against, for breach of trust, 130 Interest payable by, on breach of trust, 134. Acquiescence .by oestuis que trustent, effect of, 135. Concurrence -or oestuis que trustent, effect of, 135, 136. Release of, 136. INDEX. 627 'rnVSTEB— continued. Settlement of accounts of, 137. Release of, under Trustee Act, 1893 — (1) On appointment of new trustees, 137, 138. (2) On payment of trust fund into Court, 140. Removal of, generally, 139. TRUSTEE ACT, 1850.. .138, 140. TRUSTEE ACTS, 1850 and 1852— Release of trustees under, 138, 140. Partition under, 535. TRUSTEE ACT, 1888— s. 2 (Receipt clauses), 65. s. 8 (Lapse of time), 74, 112, 135. TRUSTEE ACT, 1893— s. 1 (Range of investments), 119. B. 5 (Leaseholds, &c. as investments), 122. s. 8 (Valuer's report for investment), 102. o. 9 (Two-thirds limit of value), 105. s. 10 (Appointment of new trustees), 139. s. 11 (Retirement of trustee), 139. 0. 12 (Vesting of property on appointment), 139. s. 13 (Contributory sale), 104. 8. 14 (Depreciatory conditions of sale), 492. s. 19 (Trustee's lien), 94. s. 20 (Trustee's receipts), 62, 65. s. 21 (Power to compromise), 114. ss. 25 — 30 (Appointment of new trustees), 137. s. 31 (Partitions and sales), 535. ss. 32—40 (Appointment of new trustees), 137. s. 41 (Vesting orders), 18, 137. a. 42 (Payment or transfer into Court), 140. s. 45 (Married woman's breach of trust), 136, 342. s. 50 (Executors and trustees), 64. TRUSTEE ACT, 1894... 121. TRUSTEES, OLD AND NEW— Notice to, of assignment, 51. Old, when liable for acts of new, 138. New, when bound to proceed against old, 138. TRUSTS, CREATION OF— Three requisites to, 58. Who entitled to benefit, where intended trust fails, 59. TRUSTS IN FAVOUR OF CREDITORS— Revocable as a general rule, 43. Irrevocable, when, 44. Who entitled, and who not entitled, to benefit of, 44. Surplus under, right to, 44. Registration of, 45. TRUSTS, VARIETIES OF— 1. Express private trusts — (1) Executed and executory trusts, 24. (2) Voluntary trusts and trusts for value, 26. S S 2 628 INDEX. TRUSTS, VARIETIES OF— continued. I. Express private trusts — contitiiicd. (3) Fraudulent trusts, 31 . (4) Trusts in favour of creditors, 43. (5) Equitable assignments (Sail., appropriations), 46. (6) Precatory trusts, 58. C7) Secret trusts, 59. (8) Trusts in the garb of powers, 60. (9) Purchase-moneys, and trustee-vendors, 62. II. Express public trusts, 67. III. Implied and resulting trusts, 78. IV. Constructive trusts, 87. UNCERTAINTY— In contract, effect of, 487, 489. UNCLAIMED— Debts, 210, 211. Dividends, 211. UNCONSCIONABLE BARGAINS— Generally, 426. With heirs, expectants, and reversioners, 426, 427. Loans by money lenders, 57, 427. UNDER-LEASE— ■ By forfeiture of lease, is destroyed, 290, 323. Relief, in such a case, 323, 324. UNDERTAKING AS TO DAMAGES— On interlocutory injunctions, 525, 526. Not ffiven by crown, 526. Or by Attorney-General, 526. UNDERVALUE— Sale at, generally, 239, 240, 411, 426, 493. By tenant for life, 92, 411. UNDUE INFLUENCE— Contracts, how affected by, 415, 416. On weak testators, 416. UNREGISTERED EQUITY— Enforcement of, 263. In case of ships, 309, 310. USES— Origin of, 20. Active or passive, 22. USES, RESULTING— Operation of, 22. USES, STATUTE OF— Object of, 22. Failure of object of, 22. Property to which applicable or inapplicable, 23. USE UPON USE, 22. INDEX. 629 VACANT LAND— Nuisance upon, liability for, 521. \'ALUATION— For sesurity, 102. Of security, 203. Of contingent liability, &c., 203. Of share of partner, 455, 456. Of tenant-right, 263. VENDOE— Lien of, generally, 87 et seq. For improvements, 317. Wilful default by, 504. Remaining in possession, is a trustee, 503. \^Ji!NDOE AND PURCHASER ACT, 1874— Provisions of, regarding completion of contracts, 508. Damages recoverable under, 509. What damages not recoverable under, 509. Decision under, effect of, 509. VENDOR'S LIEN— Generally, 87 et seq., 317. Abandonment of, 87, 88. For expenses of improvements, 317. N'EXATiOUSNESS- Summary suppression of, 547. On the part of married women, 136, 342. On the part of a public body, 517. VOIDABLE CONTRACTS— Generally, 406 et seq. Ratification of, 304, 409. In case of infants, 416, 417. In case of married women, 418. VOLUNTARY CONVEYANCES ACT, 1893— Effect of, 35, 73, 266. \'OLUNTARY SETTLEMENTS— (1) Not necessarily fraudulent under 13 Eliz. c. 5. ..31, 32. What amount of indebtedness will raise presumption of fraudulent intent, 32. May, by matter ex post facto, become for value, 33. (2) Under 27 Eliz. c. 4, voluntary settlement formerly void as against subsequent purchaser, 33. But now valid by 56 & 57 Vict. c. 21... 35, 73, 266. Marriage a valuable consideration, 36. Post-nuptial settlement in pursuance of ante-nuptial agreement, 36. Post-nuptial settlement supported on slight considera- tion, 36. Mala fide settlement, although pre-nuptial, not .sup- ported, 37. (3) Post-nuptial settlement under Bills of Sale Acts, 38. (1) Post-nuptial settlement under Bankruptcy Act, 1883. ..30. 630 INDEX. VOLUNTARY S'ETT'L'EM.'ENTS— continued. Limitations to settlor until his bankruptcy or assignment, operation of, 40, 41. Covenants to settle, when effective, 41. VOLUNTAEY TRUSTS— Distinguished from trusts for value, 26. General rules regarding validity of, 26, 27. (1) Where donor is both legal and equitable owner, 28. (a) Trusts actually created — Either (1) By conveyance on trust, 28. Or (2) By declaration of trust, 28. {b) Trusts not actually created — Either (1) No declaration of trust, 28. Or (2) Incomplete conveyance, 28. (2) Where donor is only equitable owner, 30. (a) Trusts actually created, as above, 30. (b) Trusts not actually created, as above, 30. WAGES AND EARNINGS— Of married women, 346, 347. WAIVER— Generally, 15. Of equity, 15, 364, 368. Of fraud, 304, 409. Of lien, 87, 88. Of tort, 461. Of settlement, by wife, 364, 368. WAIVER CLAUSE— In prospectuses, &c., 413. WASTE— Injunction in cases of, 508, 518. Account incident to, 388, 462. Permissive, not remediable by injunction, 519. Ameliorative, not now restrained by injunction, 519. Forfeiture for, relief against, 327. WIDOW— Paraphernalia of, 357. Settlement by, on her re-marriage, 38. Legacy to, in lieu of dower, 149. WIDOWER— Settlement by, on his re-marriage, 38. WIFE — See Maeried Woman. WILFUL DEFAULT— Liability of executor for, 113, 114, 222, 223. Liability of mortgagee in possession for, 257, 259. By vendor, 504. WILL, PROBATE OF— Generally, 549. Dealing with real estate only, 551. INDEX. 631 WILLS— Executory trusts in, 25. Conversion under, 162. Election under, 17S. Forfeiture clauses in, 155, 156. Mistakes in, when corrected in equity, 403. Undue influence, in obtaining, 416. Of married women, 349. Bills to establish, 549, 550. WINDING UP OF COMPANY— Debts, proof of, in, 200 et seq. Bates, &o., preferential payment of, in, 204. Directors, misfeasance of, liability for, in, 413, 414. WORDS— Amounting to a trust, 58. Creating a conversion, 157. Creating the separate estate, 330. Creating the restraint on anticipation, 339, 340. Precatory, effect of, 58. ^^^RITTEN ACKNOWLEDGjMBNT— Of debt, effect of, 224. Of mortgage debt, 247. YEAR TO YEAR TENANCY, 253, 473. YORKSHIRE REGISTRIES ACT, 1884... 90, 264, 278. LONDON : Pr.IKTKD BY C. F. EOWOETH, 88, FETTEE LANE, E.C. P.O. Telephone: Telegraphic Address: No. 221 CENTRAL. " POLYGRAPHY, ESTRAND, LONDON." A Catalogue of Law Works Published and Sold by Stevens & Haynes, Law Publishers, Booksellers and Exporters, 13, Bell Yard, a Temple Bar, London, /it Books Bound in the Best Bindings. Works in all Classes of Literature supplied to Order. Foreign Books Imported. Libraries Valued for Probate, Partnership, and other Purposes. Libraries or Small Collections of Books Purchased. A Large Stock of Reports of the Various Courts of England, Ireland and Scotland, alvt^ays on band. Catalogues and Estimates Furnished, and Orders Promptly Executed. M NOTE.— To avoid confusing our firm witl> any of a similar name, we beg to notify that we have no connection vrhateyer with any other house of business, and we respectfully request that Correspondents will taUe special care to direct all communications to the above names and address. 1,500 25/7/12 INDEX OF SUBJECTS. Abstract Drawing — PAGE Scott. 1892 ... ' 27 Administration Actions — Walker and Elgood. 1883 32 Administrators — Walker and Elgood. 1905 31 Admiralty Law — Kay. 189s 21 Smith. 1891 ,28 Advocacy- Harris. 1904 18 Affiliation — Martin. 1910 23 Arbitration — Slater. 1905 28 Banking — Ringwood. igo6 26 Bankruptcy — Baldwin. 1910 6 Hazlitt. 1887 19 Indermaur(Questionand Answer). 1887 21 Ringwood. 1908 26 Bar Examination Journal 6 Bibliography. 1908 8 Bills of Exchange — Willis. 1901 32 Bills of Lading- Campbell. 1891 10 Kay. 1895 21 Bills of Sale- Baldwin. 1910 6 Indermaur. 1887 21 Ringwood. 1908 26 Capital Punishment — Copinger. 1876 12 Carriers — See Railway Law, Ship- masters. Chancery Division, Practice of — Brown's Edition of Snell. 1908 29 Indermaur. 1905 20 Williams. 1880 32 And see Equity. Charitable Trusts — Bourchier-Chilcott. 1912 II Cooke and Harwood. 1867 12 Whitelord. 1878 32 Children- Martin. 1910 23 Church and Clergy— Brice. 1875 8 Civil Law— See Roman Law. Club Law— Wertheimer. 1903 32 Codes- Argles. 1877 6 Collisions at Sea — Kay. 189s 21 Colonial Law — Cape Colony. 1887 31 Tarring. 1906 30 Commercial Agency — Campbell. 1891 Commercial Law — Hurst. 1906 Common Law — Indermaur. 1909 Companies Law — Brice. 1893 Buckley. 1909 Smith. 1909 Compensation — Lloyd. 189s Compulsory Purchase- Browne. 1876 Constables — See PoLiCB Guide. Constitutional Law and History- Taswell-Langmead. 191 1 Thomas. 1908 Wilshere. 1911 ... ' Consular Jurisdiction — Tarring. 1887 Contract of Sale — Willis. 1902 Conveyancing — Copinger, Title Deeds. 1875 . Deane, Principles of. 1883 Copyright— Briggs (International). 1906 . Copinger. 1904... Corporations — Brice. 1893 Browne. 1876 Costs, Crown Office — Short. 1879 Covenants for Title — Copinger. 1875... Crew of a Ship — Kay. 1895 Criminal Appeals Criminal Law— Copinger. 1876 Harris. 1912 Crown Law — Hall. 1888 Kelyng. 1873 Taswell-Langmead. 191 1 Thomas. 1908 Crown Office Rules — Short. 1886 Crown Practice — Corner. 1908 Short and Mellor. 1908 Custom and Usage— Mayne. 1906 Damages — Mayne. 1909 Death Duties — Hanson. 1911 Debt Recovery. 1909 PAGE . 10 . 19 20 . 8 9 • 29 22 • 9 30 31 32 30 32 13 14 8 12 8 9 28 13 21 13 12 18 23 22 30 31 27 27 27 23 23 18 STEVENS &• HAYNES, BELL YARD, TEMPLE BAR. INDEX OF SUBJECTS— conr/nuerf. Desertion — Martin, igio ... 23 Discovery — Peile. 1883 25 Divorce — Harrison. 1891. 19 Domestic Relations — Eversley. 1906 15 Domlcll— See Private International Law, Dutch Law. 1887 31 Ecclesiastical Law — Brice. 1875 8 Smith. 1911 28 Education Acts — .S^^ Magisterial Law. Election Law and Petitions — O'Malley and Hardcastle. 1911 24 Seager. 1881 27 ■ Employers' Liability — Beven. 1909 7 Equity — Blyth. 1912 8 Choyce Cases. 1870 II Pemberton. 1867 25 Snell. 1912 29 Story. 1892 29 Waite. 1889 ... " 31 Evidence — Phipson. 1911 25 Examination of Students — Bar Examination Journal ... 6 Indermaur. 1906 ... ... 20 Intermediate LL. B. 1889 ... 17 Executors — Walker and Elgood. 1905 ... 31 Extradition — Clarke. 1903 11 See Magisterial Law. Factories — See Magisterial Law, Fisheries — Moore. 1903 24 See Magisterial Law. Foreign Law — Argles. 1877 6 Dutch Law. 1887 31 Foote. 1904 IS Foreshore- Moore. 1888 23 Forgery— See Magisterial Law. Fraudulent Conveyances- May. 1908 23 Gaius Institutes- Harris. 1899 18 Game Laws— See Magisterial Law. Glove Law— Norton-Kyshe, 1901 24 Guardian and Ward- Eversley. 1906 Hackney Carriages- ... IS See Magisterial Law. Hindu Law — Mayne, 1906 ... 23 History— Taswell- Langmead , 1 9 1 1 ... 30 Husband and Wife — Eversley. 1906 ... IS Infants — Eversley. 1906 ... IS Simpson 1909 ... 28 Injunctions — Joyce. 1877 ... 21 Insurance — Hartley. 1911 ... 19 Porter. 1908 ... 25 International Law — Baty. 1900 ... 7 Clarke, 1903 ... II Cobbett. 1909 ... II Foote. 1904 ... IS Phillipson. 1908 ... 25 I nterrogatories — Peile. 1883 Intoxicating Liquors — See Magisterial Law. Joint Stock Companies — See Companies. Judgments and Orders — Pemberton. 1887 Judicature Acts — Cunningham and Mattinson. 1884 Indermaur. 187S Jurisprudence — Salmond. 1910 ... Justinian's Institutes — Campbell. 1892 Harris. 1899 King's Bench Division, Practice of— Indermaur. 190S Landlord and Tenant — Foa. 1907 LandsClauses Consolidation Act- Lloyd. 189s Land Values — Devonshire & Samuel. 1911 ... Latin Maxims. 1904 Leading Cases — Common Law. 1903 ... Constitutional Law. 1908 Equity and Conveyancing 191 1 International Law. 1 909 Leading Statutes — Thomas. 1878 Leases — Copinger. 187S Legacy and Succession- Hanson. 1911 ... 24 25 '3 20 27 10 IQ 14 13 31 20 30 13 STEVENS &- HAYNES, BELL YARD, TEMPLE BAR. INDEX OF SUBJECTS— coJ7«/iued. Legitimacy and Marriage— See Private International Law. Licensing — Whiteley. 1911 ... ... .,. 32 See Magisterial Law. Life Assurance — Buckley. 1909 ... ... ... 9 Porter. 1908 25 Limitation of Actions — Banning. igo6 6 Local Legislatures — Chaster. 1906 10 Lunacy — Renton. 1897 25 Williams. 1880 32 Magisterial Law — Greenwood and Martin. 1890... 17 Maine (Sir H.), Works of— Evans' Theories and Criticisms. 1896 15 Maintenance and Desertion — Martin. 1910 23 Marriage Laws — Eversley & Craies. 19 10 ... 15 Marriage and Legitimacy — Foote. 1904 15 Married Women's Property Acts — Brown's Edition of Griffith. 1891 17 Master and Servant — Eversley. 1906 15 Mercantile Law — Campbell. 1891 10 Duncan. 1886-7 I4 Hurst. 1906 19 Slater. 1907 28 See Shipmasters. Mines — Harris. 1877 18 Money Lenders — Bellot. 1906 7 Mortmain — Bourchier-Chilcott, 1905 ... II Nationality — See Private International Law. Negligence — Beven. 1908 7 Campbell. 1879 10 Negotiable Instruments — Willis. 1912 32 Newspaper Libel — Elliott. 1884 IS Oaths- Ford. 1903 .. 16 Obligations- Brown's Savigny. 1872 ... 27 Parent and Child— Eversley. 1906 IS Parliament — Taswell-Langmead. 1911 ... 30 Thomas. 1908 31 Partition — Walker. 1882 Passengers — See Magisterial Law. „ Railway Law. Passengers at Sea — Kay. 189s Patents — Frost. 1908 and 1912 Pawnbrokers — See Magisterial Law. Petitions in Chancery and Lunacy — Williams. 1880 Pilots- Kay. 1895 Police Guide — Greenwood and Martin. 1890... Pollution of Rivers— Higgins. 1877 Practice Books — Bankruptcy. 1910 Companies Law. 1909.., Compensation. 1895 •■• Compulsory Purchase. 1876 ... Conveyancing. 1883 Damages.. 1909... Ecclesiastical Law 191 1 Election Petition. 1910 Equity. 1908 Injunctions. 1877 Magisterial. 1890 Pleading, Precedents of. 1884... Railways and Commission. 1875 Rating. 1886 31 16 32 17 19 6 9 22 9 13 23 28 24 29 21 17 13 9 9 Supreme Court of Judicature. 190S 20 Precedents of Pleading — Cunningham and Mattinson. 1884 13 Mattinson and Macaskie. 1884 13 Primogeniture — Lloyd. 1877 22 Principal and Agent — Porter. 1906 2S Principal and Surety — Rowlatt. 1899 26 Principles — Brice (Corporations). 1893 ... 8 Browne (Rating). 1886 ... 9 Deane (Conveyancing). 1883 ... 14 Harris (Criminal Law). 190S ... 18 Houston (Mercantile). 1866 ... 19 Indermaur (Common Law). 1909 20 Joyce (Injunctions). 1877 ... 21 Ringwood (Bankruptcy), 1908 26 Snell (Equity). 1908 29 Private International Law — Foote. 1904 IS Probate — Hanson. 1911 18 Harrison. 1891 19 STEVENS &- HAYNES, BELL YARD, TEMPLE BAR. INDEX OF SUBJECTS— conr/nued. 24 28 Public Trustee Act, 1906— Morgan, 1907 Public Worship— Brice. 1875 Quarter Sessions — Smith (F. J.). 1882 ... Questions for Students— Aldred. 1892 6 Bar Examination Journal. 1894 6 Indermaur. 1887 21 Waite. i88q 31 Railways- Browne. 1875 9 Godefroi and Shortt. 1869 ... 17 Williams. 1912 ... ... ... 32 Rating- Browne. 1886 ... ... ... 9 Real Property — Deane. 1883 13 Edwards. 1904 15 Tarring. 1882 ... ... ... 30 Records — Inner Temple. 1896-8 21 Recovery — Debts. 1909 14 Attenborough(Stolen Goods). 1906 6 Registration — Elliott (Newspaper). 1884 ... 14 Seager (Parliamentary). 188 1... 27 Reports — Bellewe. 1869 7 Brooke. 1873 9 Choyce Cases. 1870 11 Cooke. 1872 12 Criminal Appeal, igo8 to ... 13 Cunningham. 1 87 1 13 Election Petitions. 191 1 ... 24 Finlason. 1870 IS Gibbs, Seymour Will Case. 1877 16 Kelyng, John. 1873 22 Kelynge, William. 1873 ... 22 Shower (Cases in Parliament). 1876 28 South African. 1S93-9 29 Roman Dutch Law — Van Leeuwen. 1887 ... ... 31 Berwick. 1902 7 Roman Law- Brown's Analysis of Savigny. 1872 27 Campbell. 1892 10 Harris. 1899 18 Salkowski. 1886 27 Whitfield. 1886 27 Salvage- Jones. 1870 21 Kay. 1895 21 Savings Banks — Forbes. 1884 16 Scintillae Juris — Darling (C. J.). 1903 ■■■ • '3 Sea Shore — Hall. 1888 Moore. 1888 Shipmasters and Seamen^ Kay. 1895 Societies — See Corporations. Stage Carriages — See Magisterial Law. Stamp Duties — Copinger. 1878... Statute of Limitations — Banning. 1906 ... Statutes— Craies. 1911 Marcy. 1893 Thomas. 1878 Stolen Goods — Attenborough. 1906 ... Stoppage in Transitu — Houston. 1866 Kay. 1895 Succession Duties — Hanson. 1911 Succession Laws — Lloyd. 1877 Supreme Court of Judicature Practice of — Indermaur. 1905 Telegraphs— 6V< Magisterial Law. Title Deeds— Copinger. 1875 "Corts — Ringwood. 1906 Salmond. 1912 ... Tramways and Light Railways — Brice. 1902 Treason — Kelyng. 1873 Taswell-Langmead. 191 1 Trials—- Bartlett, A. (Murder). 1886 Queen v. Gurney 1870 Trustees — Easton. 1900 Ultra Vires — Brice. 1893 Voluntary Conveyances — May. 1908 War on Contracts — Phillipson. 1909 Water Courses — Higgins. 1877 Wills, Construction of — Gibbs, Report of Wallace Attorney-General. 1877 Mathews. 1908 Working Classes, Housing of — Lloyd. 1895 Workmen's Compensation — Beven. 1909 18 22 30 31 IS 14 =3 25 19 17 23 6 STEVENS &" HAYNES, BELL YARD, TEMPLE BAR. Argles' Foreign Mercantile Laws and Codes in Force in tlie Principal States of Europe and America By Charles Lyon-Caen, Professeur agreg^ a la Faculte de Droit de Paris ; Professeur a l'£coIe libre des Sciences politiques. Translated by Napoleon Argles, Solicitor, Paris. In 8vo, price 2s., sewed. 1877. Attenborough's Recovery of Stolen Goods. By C. L. Attenborough, of the Inner Temple, Barrister-at-Law. In 8vo, price •Js. 6d., cloth. 1906. Baldwin's Law of Bankruptcy and Bills of Sale. With an Appendix containing The Bankruptcy Acts, 1883 — 1890 ; General Rules, Forms, Scale of Costs and Fees ; Rules and Forms of 1902 under s. 122 ; Deeds of Arrangement Acts, 1887 — 1890; Rules and Forms ; Board of Trade and Court Orders and Circulars ; Debtors Acts, 1869, 1878; Rules and Forms 1903— 1908 ; Bills of Sale Acts, 1878 — 1891, etc., etc. By Edward T. Baldwin, M.A., of the Inner Temple, Barrister-at-Law. Tenth Edition, in Roy. 8vo, price 305., cloth. 1910. " . . . . Of course, everyone knows the work as the leading authority upon the subject with which it deals." — Law Students' Journal, Aug. 1910. • ". . . . Now a standard work. . . . The index is a model of completeness." — Law Jourtial. Banning's Limitations of Actions. With an Appendix of Statutes, Copious References to English, Irish, and American Cases, and to the French Code, and a Copious Index. Third Edition. By Archibald Brown, M.A. Edin. and Oxon., and B.C.L., Oxon., of the Middle Temple, Barrister-at-Law. 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The Charity Commissioners' Jurisdiction Act, 1862 ; the Roman Catholic Charities Acts; together with a Collection of Statutes relating, to or affecting Charities, including the Mortmain Acts, Notes of Cases from 1853 to the present time, Forms of Declarations of Trust, Conditions of Sale, and Conveyance of Charity Land, and a very copious Index. Second Edition. By Hugh Cooke and R. G. Harwood, of the Charity Cornmission-. In 8vo, price \ts., cloth. 1867. Copinger's Law of Copyright In Works of Literature and Art ; including that of the Drama, Music, Engraving, Sculpture-, Painting, Photography,, and Designs ; together with International and Foreign Copyright, with the Statutes relating thereto, and References to the English and American Decisions. By Walter Arthur Copinger, of the Middle Temple, Barrister:at-Law. Fourth Edition. By J. M. Easton, of the Inner Temple, Barrister-at-Law. In Royal 8vo, price 36^-., cloth. 1904. "Mr. Copinger's book is very ^comprehensive, dealing with every branch of his subject,, and even extending to copyright inforelgn countries. ,. So far as we have examined, we have found all the recent authorities noted up with scrupulous care, and there is an unusually good index. These are merits which will, doubtless, lead to the placing of this edition on the shelves of the members of the profession whose business is concerned with copyright ; and deservedly, for the book is one of considerable value." — Solicitors' youmal. Copinger's Tables of Stamp Duties from 18 15 to 1878. By W.ALTER Arthur Copinger, of the Middle Temple, Esquire, Barrister-at Law ; Author of " The Law of Copyright in Works of Literature and Art," " Index to Precedents in Conveyancing," " Title Deeds," &c. In 8vo, price 2s. dd., cloth. 1878. Copinger's Abolition of Capital Punish= ment. Embracing more particularly an Enunciation and Analysis of the Principles of Law as applicable to Criminals of the Highest Degree of Guilt. By Walter Arthur Copinger, of the Middle Temple, Esquire, Barrister-at-Law. In 8vo, price I.S net, sewed. 1876. Copinger's Title Deeds Their' Custody, Inspection, and Production, at Law, in Equity, and in Matters of Conveyancing. Including Covenants for the Production of Deeds and Attested : Copies; with an Appendix of Precedents, the Vendor and Purchaser Act, 1874, &c., &c. ,&c. By Walter Arthur Copinger, of the Middle Temple, Barrister-at- Law; Author of "The Law of Copyright" and "Index to Precedents in Con- veyancing." In one volume, 8vo, price 14J., cloth. 1875. STEVENS &', HAYNES, BELL YARD, TEMPLE BAR. 13 Cotterell's Latin Maxims and Plirases. Literally Translated. Intended for the use of Students for all Legal Examinations. Second Edition. By J. N. Cotterell, Solicitor. In 8vo, price 4;-., cloth. 1904. " ^'^"r ^^^^ seems admirably adapted as a book of reference for students who come across a Latin maxim in their reading." — Law Journal, Craies' Statute Law. Founded on Hardcastle on Statutory Law. With Appendices containing Words and Expressions used in Statutes which have been judicially or statutably construed, and the Popular and Short Titles of certain Statutes, and the Inter- pretation Act, 1899. By Wtlliam Feilden Craies, M.A., of the Inner Temple and Western Circuit, Barrister-at-Law. Second Editio?i. Royal Svo, Price iZs. Cloth. 191 1. "._ . . . Perhaps a book of this kind was never needed so much as at the present time, when the Legislature has seen fit to pass enactments that, to say the least, are ill drawn, and are .furthra- complicated by legislation by reference. Both the profession and students will find this work of great assistance as a guide in that difficult branch of our law, namely the construction of Statutes."— Laiv Times. 'I This new edition of Hardcastle bears signs of the painstaking research and careful arrangement which we expect and get from Mr. Craies." — Laiv JouniaL . " This is a carefully edited editipn of a work of considerable value. The editor having prepared the second edition is familiar with his subject, and we find throughout the book the recent decision's and dicta on the subject very neatly inserted." — Solicitors' Journal. Criminal Appeal Reports. Dealing (exclusively) with the whole of the Cases in the new Court of Criminal Appeal, both those before the single Judge thereof and those before a full Court. They will, therefore, include not only arguments on points of Law and Practice (such as those with which the Court for Crown Cases Reserved dealt), but also accounts of hearings on questions of Fact and Sentence. The price of the volume to Subscribers (prepaid) will be 25^., not prepaid the price is 30^. ; that of the separate parts will vary according to the size. Vol. VIII. is now in progress. Edited by Herman Cohen, Barrister-at-Law, Editor of the 13th Edition of " Roscoe's Criminal Evidence," and of " The Criminal Appeal Act, 1907." Cunningham and Mattinson's Selection of Precedents of Pleading Under the Judicature Acts in the Common Law Divisions. With Notes explanatory of the different Causes of Action and Grounds of Defence ; and an Introductory Treatise on the Present Rules and Principles of Pleading as illustrated by the various Decisions down to the Present Time. By J. Cunningham and M. W. Mattinson. Second Edition. By Miles Walker Mattinson, of Gray's Inn, Barrister-at- Law, and Stuart Cunningham Macaskie^ of Gray's Inn, Barrister-at-Law. In 8vo, price 28^.', cloth. 1884. Cunningham's Reports. Cunningham's (T.) Reports in K. B., 7 to 10 Geo. II.; to which is prefixed a Proposal for rendering the Laws of England clear and certain, humbly offered to the Consideration of both Houses of Parliament. Third edition, v/ith numerous Corrections. By Thomas Townsend Bucknill, Barrister-at-Law. In 8vo, 1871, price 3/. y., calf antique. Darling's Scintillae Juris and Meditations in the Tea Room. By the Hon. Mr. Justice Darling. With Colophon by the late Sir Frank LocKWOOD, Q.C., M.P. Price 5J. net. 1902. *'* Scintillae Juris' is that little bundle of humorous essays on law and cognate matters which, since the day of its first appearance, some years ago, has been the delight of legal circles. , . . It has a quality of style which suggests much study of Bacon in his lighter vein. Its best essays would not be unworthy of the Essays, anefc if read out, one by one, before a blindfolded connoisseur^ might often be assigned to that wonderful hook."~Daily Neivs. 14 STEVENS b' HAYNES, BELL YARD, TEMPLE BAR. Deane'^ Principles of Conveyancing. An Elementary Work for the use of Students. By Henry C. Deane, of Lincoln's Inn, Barrister-at-Law, sometime Lecturer to the Incorporated Law Society of the United Kingdom. Second Edition, in one volume, 8vo, price l%s., cloth. 1883. De Bruyn's Opinions of Qrotius As contained in the Hollandsche Consultatien en Advijsen. Collated, translated, and annotated by D. P. DE Bruyn, B.A., LL.B., Ebden Essayist of the University of the Cape of Good Hope ; Advocate of the Supreme Court of the Colony of the Cape of Good Hope, and of the High Court of the South African Republic. With Facsimile Portrait of HuGO DE Groot. In I Vol., 8vo, price 40J., cloth. 1894. Debt Recovery. A simple guide to County Court Actions, with full Scale of Fees. Just oiit. In crown 8vo, price \s. net. Devonshire and 5amuel on Land Values Duties. Being an Examination of Part I. of the Finance (1909-10) Act, 1910, and the other . Sections of that Act relating to Land Values Duties. By George H. Devonshire, of Lincoln's Inn, and Frank V. Samuel, of the Inner Temple, Barristers-at-Law. In royal 8vo, price 2\s. net, with Supplement containing the Amendments contained in Part I. of the Revenue Act, 191 1 ; the Rules for the Collection of Increment Value Duty or the " proper proportion " of such Duty ; and the Rules as to appeals (l) to the Referee and (2) to the High Court. Being a Supplement to the First Edition of " Devonshire and Samuel's Duties on Land Values," dealing vrith the above matters, and containing additional Forms issued under the Finance (1909-10) Act, igio. The Supi'lement can be had separately, price c,s. net. Duncan's Mercantile Cases for tlie Years 1885 and 1886. Being a Digest of the Decisions of Ihe English, Scotch and Irish Courts on Matters Relating to Commerce. By James A. Duncan, M.A., LL.B., Trinity College, Cambridge, and of the Inner Temple, Barrister-at-Law. In .8vo, price \2.s. 6d., cloth. 1886—7. Easton's Law as to the Appointment of New Trustees. With Appendices containing Forms and Precedents and Material Sections of the Trustee Act, 1893, ^-^d the Lunacy Acts, 1890 and 1891. By J. M. Easton, of the Inner Temple, Barrister-at-Law. In 8vo, price ys. 6d., cloth. 1900. "... Mr. Easton has devoted great ability and learning to a treatise on this one subject, and saved all who may in future be wise enough to consult his work the labour of searching through many other more ponderous tomes for what they will most likely find here more fully considered. Mr. Easton has not only carefully examined the cases to discover and expound what has been decided, but he has shown great ingenuity in imagining what difficulties ma;^ arise, and sagacity in a.pplying principles to their solution. The book is. very complete, end contains some useful precedents, and the material sections of the Trustee Act, 1893, and the Lunacy Acts, 1^90 and i8qi." — Law Mn^azine and Review. " Into one compact volume the author has collected the whole of the information on this subject . . . and those who require information on this subject will find Mr. Easton's book a valuable aid." — Law Tfvtes. "This is a useful book on an important subject, the law of which — though often supposed to be simple— is in realitir full of pitfalls. . . . Mr. Easton has done his work well, and his treatment oi his subject is practically exhaustive.'* — Law Journal. " Mr. Easton has turned out a treatise of excrejie practical utilitv well arranged, exhaustive and reliable."— 6'rt^wrffay Review, STEVENS &• HAYNES, BELL YARD, TEMPLE BAR. 15 Edwards' Compendium of the Law of Property in Land. For the use of Students and the Profession. By William Douglas Edwards, LL.B., of Lincoln's Inn, Barrister-at-Law. Fourth Edition, price 20s., cloth. 1904. " ThK book has rapidly become popular, and may now, we think, fairly claim to be to the present generation what Burton's Compendium' was to our forefathers."— Zaii/ Journal. IT ■ i. '■^°'^' however, ' Edwards ' is once more thoroughly up to date, and we hope that the fourth lldition will have as rapid a sale as the two first editions. It is unnecessary for us to write at length about the excellences of the work. . . ."—Law Notes. " Mr. Edwards' treatise on the Law of Real Property is marked by excellency of arrangement and conciseness of statement We are glad to see, by the appearance of successive editions, 'hM the merits of the book are appreciated."— .yo/iaVoT-j' Journal. So excellent is the arrangement that we know of no better compendium upon the subject of which It treats. '—Zaw Times. "We consider it one of the best works published on Real Property 'L^.-h.'— Law Students journal. The author has the merit of being a sound lawyer, a merit perhaps not always possessed by the authors of legal text-books for students."— .taa; Quarterly Review. Elliott's Newspaper Libel and Registra= lion Act, 1 88 1. With a Statement of the Law of Libel as Affecting Proprietors, Publishers, and Editors of Newspapers. By G. Elliott, Barrister-at-Law, of the Inner Temple. In 8vo, price 4f. 6ractice or as a monument of the author's industry and accuracy. . . . The net result of our examination of the book is to satisfy us that it is one for which the profession will very properly be grateful." — Solicitors* Journal. STEVENS &- HAYNES, BELL YAXD, TEMPLE BAR. 17 Frost's Patents and Designs Act, 1907. With Rules and Forms, &c. By Robert Frost, B.Sc. (Lond.), Fellow of the Chemical Society; of Lincoln's Inii, Esq., Barrister -at -Law. In royal 8vo, price loj-., cloth. 1908. Qibbs' Case of Lord Henry Seymour's Will (Wallace v. The Attorney = General). Reported by Frederick Weymouth Gibbs, C.B., Barrister-at-Law, late Fellow of Trinity College, Cambridge. In royal 8vo, price ioj., cloth. 1S77. Qodefroi & 5hortt's Railway Companies. Comprising the Companies Clauses, the Lands Clauses, the Railways Clauses Consolidation Acts, the Railway Companies Act, 1867, and the Regulation of Railways Act, 1868; with Notes of Cases on all the Sections, brought down to the end of the year 1868 ; together with an Appendix giving all the other material Acts relating to Railways, and the Standing Orders of the Houses of Lords and Commons ; and a copious Index. By Henry Godefroi, of Lincoln's Inn, and John Shortt, of the Middle Temple, Barristers-at-Law. In 8vo, price 32^., cloth. 1869. Greenwood & Martin's Magisterial and Police Ouide: Being the law relating to the Procedure, Jurisdiction, and Duties of Magistrates and Police Authorities, in the Metropolis and in the country, with an Introduction show- ing the General Procedure before Magistrates both in Indictable and Summary Matters. By Henry C. Greenwood, Stipendiary Magistrate for the district of the Staffordshire Potteries ; and Temple Chevalier Martin, Chief Clerk to the Magistrates at Lambeth Police Court, London ; Author of "The Law of Mainten- ance and Desertion," " The New Formulist," etc. Third Edition. Including the Session 52 & 53 Vict., and the cases decided in the superior courts to the end of the year 1889, revised and enlarged. By Temple Chevalier Martin. In 8vo, price 32J., cloth. i8go. Griffith's Married Women's Property Acts; 1870, 1874, 1882 and 1884. With Copious and Explanatory Notes, and an Appendix of the Acts relating to Married Women. By Archibald Brown, M.A., Edinburgh and Oxon., and the Middle Temple. Barrister-at-Law. Being the Sixth Edition of The Married Women's Property Acts. By the late J. R. Griffith, B.A. Oxon., of Lincoln's Inn, Barrister-at-Law. In 8vo, price 9^., cloth. 1891. Handbook to the Intermediate and Final LL.B. of London University. Pass and Honours. Including a complete Summary of " Austin's Jurisprudence," and the Examination Papers of late years in all branches. By a B.A., LL.B. (Lond.). Second Edition, in Svo, price 6j., cloth. 1889, 18 STEVENS 6r= HAYNES, BELL YARD, TEMPLE BAR, Hanson's Death Duties. Being the Sixth Edition of the Acts relating to Estate Duty, Finance, Probate, Legacy, and Succession Duties. The Finance Acts, 1894, 1896, 1898, 1900, 1907, 1909-10; with Rules. The Revenue Act, 191 1 ; Legacy Duty Act, 1796; Stamp Act, 1815 ; Succession Duty Act, 1853; Customs and Inland Revenue Act, 1880 and 1881 ; with Notes to the various Acts. An Appendix and a full Index.. By Alfred Hanson, of the Middle Temple, Esq., Barrister-at-Law, Comptroller of Legacy and Succession Duties. Sixth Edition by F. H. L. Errington, M.A., Barrister-at-Law. In 8vo, price 36J., cloth. 1911, "The Fifth Edition of this deservedly well-known text-book has been carried out with much care, and many improvements by Mr. Errington, Sir Lewis Dibdin being now otherwise occupied with official duties .... And by way of a more complete consecutiveness, all the Acts are printed without notes at the end of this part, with marginal references to the pages at which the sections are treated in detail. This arrangement will much improve the usefulness of the book for the busy man, who does not appreciate that form of original research, which reaches its highest perfection In the brains of experts in Bradshaw. The Amending Acts and new decisions appear to be fully incorporated, and will combine with the new arrangement to make the book most acceptable to the profession." — Solicitors' Journal. "Seven years have elapsed since the last Edition of Hanson was published, and the profession will welcome this new edition not less cordially than its predecessors .... The plan of separating the sub-sections of the Acts, which led to confusion, has been abandoned, and the differ- ence between the type of the Statutes and the notes has been made greater. The reputation of the work of a leading authority on a complicated subject is fully maintained." — Law Journal. " . , . . Since the last Edition there have been two Amending Acts dealing with estate duty, and a large number of cases decided by the courts, all of which have been duly incorporated in the text. All the Acts relating to estate duty have been printed together as a whole— a convenient arrange- ment. The book may well be described as the leading work on the Death Duties." — Law Times. Harris' Illustrations in Advocacy, With an Analysis of the Speeches of Mr. Hawkins, Q.C. (Lord Brampton) in the Tichborne Prosecution for Perjury. (A study in Advocacy.) Also a Prefatory Letter from the Right Hon. Lord Brampton. By Richard Harris, K.C, a Bencher of the Middle Temple. Fourth Edition, re-written by the Author. l2mo. Price Ts. 6d., cloth. 1904. Harris's Principles of the Criminal Law. Intended as a Lucid Exposition of the subject for the use of Students and the Profession. By Seymour F. Harris, B.C.L., M.A. (Oxon.), Author of "A Concise Digest of the Institutes of Gaius and Justinian." Twelfth Edition. By C. L, Attenborouoh, of the Inner Temple, Barrister-at-Law. In 8vo, price 20J., cloth. 1912. "This Standard Textbook of the Criminal Law is as good a book on the subject as the ordinary student will find on the library shelves .... The book is very clearly and simply written. No previous legal knowledge is taken for granted, and everything is explained in such a manner, that no student ought to have much difficulty in obtaining a grasp of the subject. . ." — Solicitors' Journal. " . . . . As a Student's Textbook we have always felt that this work would be hard to beat, and at the present time we have ao reason for altering our opinion " — Law Times. Harris's Institutes of Qaius and Justinian. With copious References arranged in Parallel Columns, also Chronological and Analytical Tables, Lists of Laws, &c., &c. Primarily designed for the use of Students preparing for Examination at Oxford, Cambridge, and the Inns of Court, By Seymour F. Harris, B.C.L., M.A., Worcester College, Oxford, and the Inner Temple, Barrister-at-Law, Author of "Universities and Legal Education." Third Edition, ip crown 8vo, 6s. 1899. " This book contains a summary in English of the elements of Roman Law as contained in the works of Gaius and Justinian, and is so arranged that the reader can at once see what are the opinions of either of these two writers on each point. From the very exact and accurate references to titles and sections given he can at once refer to the original writers. The concise manner in which Mr. Harris^ has arranged his digest will render it most useful, not only to the students for whom it was originally written, but also to those persons who, though they have not the time to wad« through the larger treatises of Poste, Sanders, Ortolan, and others, yet desire to obtain some knowledge of Roman Law," — Oxford and Cambridge Undergraduates' Journal. STMVENS &- HAYNES, BELL YARD, TEMPLE BAR. 19 Harris's Titles to Mines in the United States. With the Statutes and References to the Decisions of the Courts relating thereto. By W. A. Harris, B.A. Oxon., of Lincoln's Inn, Barrister-at-Law ; and of the American Bar. In 8vo, price 7^. arf. , cloth. 1877. Harrison's Epitome of tlie Laws of Pro= bate and Divorce. For the use of Students for Honours Examination. By J. Carter Harrison, Solicitor. Fourth Edition, in 8vo, price "Js. 6d., cloth. 1891. " The work is considerably enlarged, and we think improved, and will be found of great assist- ance to students." — Lmv Students' Journal. Hartley's Analysis of the Law of Insurance. By D. H. J. Hartley, M.A. (Cantab.), of the Middle Temple and Midland Circuit, Barrister-at-Law. One of the Lecturers on Insurance Law, Commercial Law, and Local Government and Municipal Law to the Education Committee of the London County Council. In crown 8vo, price 2s. td. net, cloth ; 19H. Hazlitt & Ringwood's Bankruptcy Act, 1883. With Notes of all the Cases decided under the Act ; the Consolidated Rules and Forms, 1886 ; the Debtors Act, 1869, so far as applicable to Bankruptcy Matters, with Rules and Forms thereunder ; the Bills of Sale Acts, 1878 and 1882 ; Board of Trade Circulars and Forms, and List of Official Receivers ; Scale of Costs, Fees, and Percentages, 1886 ; Orders of the Bankruptcy Judge of the High Court ; and a Copious Index. By William Hazlitt, Esq., Senior Registrar in Bankruptcy, and Richard Ringwood, M.A., of the Middle Temple, Esquire, Barrister-at-Law. Second Edition, by R. RiNGWoou, M.A., Barrister-at-Law. In crown 8vo, price I2J. (,d., doth. 1887. Higgins' Pollution and Obstruction of Water Courses. Together with a Brief Summary of the Various Sources of Rivers Pollution. By Clement Higgins, M.A., F.C.S., of the Inner Temple, Barrister-at-Law. In one volume, 8vo, price \2s., cloth. 1877. Houston's Stoppage in Transitu, Reten= tion, and Delivery. By John Houston, of the Middle Temple, Barrister-at-Law. In one volume, demy 8vo, price loj. bd., cloth. 1866. Hurst & Cecil's Principles of Commercial Law. With an Appendix of Statutes, Annotated by means of references to the Text. Second Edition. By Joseph Hurst, of the Inner Temple, Barrister-at-Law. In one volume, 8vo, price \os. 6d.j cloth. 1906. "Their compendium, we believe, will be found a really useful volume, one for the lawyer and the business man to keep at his elbow and which, if not giving them all that they require,_will f)lace in their hands the key to the richer and more elaborate treasures of the Law which lit in arger and more exhaustive works." — Law Times. "The object of the authors of this work, they tell us in their preface, is to state, within a moderate compass, the principles of commercial law. Very considerable pains have obviously been expended on the task, and the book is in many respects a very serviceable one." — Law Jaurnal. 20 STEVENS -Sf HAYNES, BELL YARD, TEMPLE BAR. Indermaur'5 Principles of the Common Law. Intended for the use of Students and the Profession. Eleventh Edition. By Joh.m Indermaur, Solicitor, Author of "A Manual of the Practice of the Supreme Court," " Epitome.s of Leading Cases,'' and other Works ; and Charles Thwaites, Solicitor. In 8vo, 20s. 1909. ^* That invaluable students' manual, Indermaur's * Principles of thfe Common Law.'-has entered upon a tenth edition in less than two years and a half. Assisted by Mr. Charles Thwaites, the learned author has incorporated recent cases, and generally revised the work in his usual skilful fashion." — Law Times. " The appearance of a tenth edition of ' Indermaur on Common Law ' shows that the work has established for itself a safe "[tosWiovt."— Solicitors^ journal. Indermaur's Manual of the Practice of the Supreme Court of Judicature, In the King's Bench and Chancery Divisions. Ninth Edition. Intended for the use of Students and the Profession. By John Indermaur, Solicitor. In 8vo, price 15^., cloth. 1905. *'The eighth edition of Indermaur's 'Manual of Practice' (London: Stevens and Haynes), chiefly called for by reason of the Order XXX., has also been partly rewritten and improved in arrangement and detail. While primarily designed for students, we may mention that it will be found a useful companion to the White Book." — Law Times. ' . . " The arrangement of the book is good, and references are given to the leading decisions. Copious references are also given to tHe rules, so that the work forms a convenient guide to the larger volumes on practice. It is a very successful attempt to deal clearly and concisely with an important and complicated subject." ^Solici tors' Journal. Indermaur's Leading Conveyancing and Equity Cases. With some short notes thereon, for the use of Students. By John Indermaur, SoUcitor, Author of "An Epitome of Leading Common Law Cases." Tenth Edition by C. Thwaites. In 8vo. In preparation. • "The Epitome well deserves the continued patronage of the class — Students — for whom it is especially.intended, Mr. Indermaur will soon be known as the ' Student's Friend.' " — Canada Law your7ial. Indermaur's Leading; Common Law Cases; With some short notes thereon. Chiefly intended as a Guide to " Smith's Leading Cases." By C. Thwaites, Solicitor. Ninth Edition, in 8vo, price 6i., cloth. 1903. Indermaur's Articled Clerk's Guide to and Self = Preparation for the Final Examination. Containing a Complete Course of Study, with Books to Read, List of Statutes, Cases, Test Questions, &c., and intended for the use of those Articled Clerks who read by themselves. By Charles Thwaites, Solicitor. Seventh Edition, 8vo, price 6j., cloth. 1906. "His advice is practical and sensible : and if the course of study he recommends is intelligently followed, the articled clerk will have laid in a store of legal knowledge -more than sufficient to carry him through the Final Examination." — Solicitors' Journal. Indermaur's Judicature Acts, And the rules thereunder. Being a book of Questions and Answers intended for the use of Law Students. By John Indermaur, Solicitor. In 8vo, price 6j., cloth. 1875. STEVENS (5r= HAYNES, BELL YARD, TEMPLE BAR. 21 Indermaur's Guide to Bankruptcy, Being a Complete Digest of the Law of Bankruptcy in the shape of Questions and Answers, and comprising all Questions asked at the Solicitors' Final Examina- tions in Bankruptcy since the Bankruptcy Act, 1883, and all important Decisions since that Act. By John Indermahr, Solicitor, Author of " Principles of Com- mon Law," &c. &c. Second Edition, in crown 8vo, price 5^. 6a'., cloth. 1887. Indermaur's Law of Bills of 5ale, ' For the use of Law Students and the Public. Embracing the Acts of 1878 and 1882. Part I.— Of Bills of Sale generally. Part II.— Of the Execution, Attesta- tion, and Registration of Bills of Sale and satisfaction thereof. Part III. — Of the Effects of Bills of Sale as against Creditors. Part IV. — Of Seizing under, and Enforcing Bills of Sale. Appendix, Forms, Acts, &c. By John Indermaur, Solicitor. In i2mo, price y. dd., cloth. 18S2. Inderwick's Calendar of the Inner Temple Records. Edited by F. A. Inderwick, Q.C. Vol. I., 21 Hen. VII. (1505)— 45 Eliz. (1603). Vol. II., James I. (1603) — Restoration (1660). Vol. III., 12 Charles II. (1660) — 12 Anne (1714). Imperial 8vo. Roxburghe binding. 1896. 20^. per vol, net. Jones' Law of Salvage, As administered in the High Court of Admiralty and the County Courts'; with the Principal Authorities, English and American, brought down to the present time ; and an Appendix, containing Statutes, Forms, Table of Fees, &c. By Edwyn Jones, of Gray's Inn, Barrister-at-Law. In crown 8vo, price ioj. bd., cloth. 1870. Joyce's Law and Practice of Injunctions. Embracing all the subjects in which Courts of Equity and Common Law have jurisdiction. By William Joyce, of Lincoln's Inn, Barrister-at-Law. In two volumes, royal 8vo, price ^os., cloth. 1872. Joyce's Doctrines and Principles of the Law of Injunctions. By WiLLlAii Joyce, of Linqoln's Inn, Barristev-at-Law. In one volume, royal 8vo, price 30;-., cloth. 1877. ' Kay's Shipmasters and Seamen. Their Appointment, Duties, Powers, Rights, Liabilities, and Remedies. By the late Joseph Kay, Esq., M.A., Q.C. Second Edition. With a Supplement comprising the Merchant Shipping Act, 1894, the Rules ofCourtmade thereunder, and the (proposed) Regulations for Preventing Collisions at Sea. By the Hon: J. W. Mansfield, M.A., and G. W. Duncan, Esq., B.A., of the Inner Temple, Barristers-at-Law. In royal 8vo, price 46^., cloth. 1895. " It has had practical and expert knowledge brought to bear upon it, while the case law is brought down to a very late date. Considerable improvement has been made in the index." — Law Times. 22 STEVENS &- HAYNES, BELL YARD, TEMPLE BAR. Kay's Merchant 5hipping Act, 1894. With the Rules of Court made thereunder. Being a Supplement to KAY'S LAW RELATING TO SHIPMASTERS AND SEAMEN. To which are added the (proposed) Regulations for Preventing Collisions at Sea. With Notes. By Hon. J. W. Mansfield, M.A., and G. W. Duncan, B.A., of the Inner Temple, Barristers- at-Law. In royal Svo, price los. dd., cloth. 1895. Kelyng's (5ir John) Crown Cases. Kklyng's (Sir J.) Reports of Divers Cases in Pleas of the Crown in the Reign of King Charles II., with Directions to Justices of the Peace, and others; to which are added. Three Modern Cases, viz., Armstrong and Lisle, the King an3 Plummer, the Queen and Mawgridge. Third Edition, containing several additional Cases never before printed, together with a Treatise upon the Law and Proceedings in Cases of High Treason, first published in 1793. The whole carefully revised and edited by Richard Loveland Loveland, of the Inner Temple, Barrister- at-Law. In Svo, price 4/. 4;., calf antique. 1873. "We look upon this volume as one of the niost important and valuable of the unique reprints of Messrs. Stevens and Haynes. Little do we know of the mines of legal wealth that lie buried m the old law books. But a careful examination, either of the reports or of the treatise embodied in the volume now before us, will give the reader some idea of the good service rendered by Messrs. Stevens and Haynes to the profession, . . . Should occasion arise, the Crown prosecutor, as well as counsel for the prisoner, will find in this volume a complete vade ntecuni of the law of high treason and proceedings in relation thereto." — Canada Laiv yonrnal. Kelynge's (W.) Reports. Kelynge's (William) Reports of Cases in Chancery, the King's Bench, &c., from the 3rd to the 9th year of his late Majesty King George II., during which time Lord King was Chancellor, and the Lords Raymond and Hardwicke were Chief Justices of England. To which are added, seventy New Cases not in the First Edition. Third Edition. In one handsome volume, Svo, price 4/. 4^., calf antique. 1873- Lloyd's Law of Compensation for Lands, Houses, &c. Under the Lands Clauses Consolidation Acts, the Railways Clauses Consolidation Acts, the Public Health Act, 1875, the Housing of the Working Classes Act, 1890, the Metropolitan Local Management Act, and other Acts, with a full collection of Forms and Precedents. By Eyre Lloyd, of the Inner Temple, Barrister-at-Law. Sixth Edition. By W. J. Brooks, of the Inner Temple, Barrister-at-Law. In Svo, price 2li., cloth. 1895. Lloyd's Succession Laws of Christian Countries. With special reference lo the Law of Primogeniture as it exists in England. By Eyre Lloyd, B.A., Barrister-at-Law. In 8vo, price 7^., cloth. 1877. Marcy's Epitome of Conveyancing Statutes, Extending from 13 Edw. I. to the End of 55 and 56 Victorias. Fifth Edition, with Short Notes. By George Nichols Marcv, of Lincoln's Inn, Barrister-at-Law. In crown Svo, price \2s. 6d., cloth. 1893. STEVENS &' HAYNES, BELl. YARD, TEMPLE BAR. 23 Martin's Law of Maintenance, Desertion, and Affiliation. With the Acts for the Custody and Protection of Children. Third Edition. By Temple Chevalier Martin, late Chief Clerk of the Lambeth Police Court, Editor of the " Magisterial and Police Guide," &c., and George Temple Martin, M.A., of Lincoln's Inn, Barrister-at-Law. In 8vo, price gj., cloth. 1910. Mathews' Guide to Law of Wills. By A. G. Mathews, of the Inner Temple, Barrister-at-Law. In i2mo, price 7 J. dd. 1908. _'*Mr.^ Mathews has produced an excellent and handy volume on a subject bristling with difificulties. . . . The chapters Revocation, etc., gifts to a class cpnversion, satisfaction and ademption are very well written, while his chapters on Residue and Legacies and Annuities could not be more tersely or more clearly set forth. . . . There is a scope for a short work of this kind on this subject, and doubtless Mr. Mathews* book will find its way into the hands of many Law Students." — Juridical Review. May's Statutes of Elizabeth against Fraudulent Conveyances. The Bills of Sale Acts, 1878 and 1882, and the Law of Voluntary Dispositions of Property. By the late H. W. May, B.A. (Ch. Ch. Oxford). Third Edition, thoroughly revised and enlarged, by William Douglas Edwards, LL.B., of Lincoln's Inn, Barrister-at-Law; Author of the "Compendium of the Law of Property in Land," &c. In royal 8vo, price los. net, cloth. 1908. Mayne's Treatise on the Law of Damages. Eighth Edition, by His Honour Judge Lumley Smith, K.C. In 8vo, price 28j., cloth. 1909. "It would be superfluous to say more of this notable book than that this is the seventh edition, and that its original author and his co-editor, Judge Lumley Smith of the City of London Court, have written the preface to this issue of it, nearly fifty years after the issue of the first. The last edition was in 1B99, and the present, carefully revised and corrected, brings up to date all the English and Irish decisions bearing on the Law of Damages." — Saturday Review. Mayne's Treatise on Hindu Law and Usage. By John D. Mayne, of the Inner Temple, Barrister-at-Law, Author of "A Treatise on Damages," &c. Seventh Edition, 8vo, 30J. net. 1906. Moore's History of the Foreshore and the Law relating thereto. With a hitherto unpublished Treatise by Lord Hale, Lord Hale's " De Jure Maris," and the Third Edition of Hall's Essay on the Rights of the Crown in the Sea-shore, with Notes, and an Appendix relating to Fisheries. By Stuart A. Moore, F.S.A., of the Inner Temple, Barrister-at-Law. In one volume, medium 8vo, price 38J., cloth ; or in half-roxburgh, 42J. 1888. " Mr. Moore has written a book of great_ importance which should mark an epoch in the history of the rights of the Crown and the subject in the litus maris, or foreshore of the kingdom The Profession, not to say the general public, owe the learned author a deefj debt of gratitude for providing ready to hand such a wealth of materials for founding and building up arguments. Mr. Stuart Moore has written a work which must, unless his contentions are utterly unfounded, at once become the standard text- book on the law of the Sea-shore. " — Law Times. Moore's History and Law of Fisheries. By Stuart A. Moore, F.S.A., and Hubert Stuart Moore, of the Iimer Temple, Barristers-at-Law. In one volume, royal 8vo, price 2\s. 1903. 24 STEVENS &' HAYNES, BELL YARD, TEMPLE BAR. Moore's History and Law of Fisheries — continued. Contents : Part I. — Introduction. — Chapter I. Of the evidence as to fisheries in the Domesday Book ; II. Of putting rivers in defence ; III. Of presump- tions with regard to fisheries ; IV. Of the presumption of ownership of the soil by the owner of the fishery; V. Of the origin and subdivision of fisheries; VI. Of the difterent Icind of fisheries ; VII. Of the various descriptions of fisheries in ancient records ; VIII. Incorporeal fisheries in tidal water ; IX. Incorporeal fisheries in non-tidal water ; X. Of fishery appurtenant to or parcel of a manor ; XI.. Of fishery appurtenant to a particular tenement; XII. Copyhold fisheries. XIII. Of fisheriesiri gross ; XIV. Of divided fisheries and the Royal draught; XV. Of fisheries in ponds and lakes and the ownership of the soil ; XVI. Of fisheries in canals and artificial watercourses ; XVII. Of fishery in relation to navigation ; XVIII. Of fishing paths ; XVX. Of the public right of fishery and its limits ; XX. Of boundaries of fisheries ; XXL Of change in the course of a river, and its effect upon the ownership of the fishery therein ; XXII, Of grants of fisheries ; XXIII. Of evidence of title to fisheries ; XXIV. Of evidence of possession of fisheries in proving title ; XXV. Of the effect of user by the public and others adverse to the owner of a fishery ; XXVI. Of the powers of an owner of a fishery to lease and license, &c. ; XXVII. Of proceedings for the protection of fisheries. Part II. — Statute Law Rki-ATiNG to Fisheries. — I. .Summary of legislation relating to fish and fisheries; II. Regulation of sea fisheries ; III. Registration and discipline of sea fishing boats ; IV. Statutory provisions relating to fisheries geinerally ; V. Statutory provisions relating to floating fish ; VI. Statutory provisions relating to shell fish ; VII. Regulation of salmon and fresh-water fisheries ; VIII. Powers of Boards of Conservators; IX. Water bailiffs; X. Statutory provisions as to the capture and destruction of salmon and fresh-water fish ; XI. Close seasons ; XII. Licenses ; XIII. Sale and exportation of fish. Appendices : Statutes with notes relating thereto ; Sea and Salmon Acts ; List of Sea and Salmon Fishery Districts ; Orders in Cotlncil as to registration of sea fishing boats ; List of fisheries referred to in Domesday Book ; List of fisheries referred to in notes of ancient records in the Author's collection ; Index. Morgan. — A Practical Analysis of the Public Trustee Act, 1906. By P. W. Morgan, Barrister-at-Law. In crown 8vo, li. dd. net. Norton =Kyshe's Law and Privileges relating to the Attorney = General and 5olicitor=Qeneral of England. With a History from the Earliest Periods, and a Series of King's Attorneys and Attorneys and Solicitors-General from the reign of Henry III. to the 6oth of Victoria. By J. W.; Norton-Kyshe, of Lincoln's Inn, Barristef-at-Law. . In Svo, price los. dd. net. 1897. O'Malley & Hardcastle's Reports of the Decisions of the Judges for the Trial of Election Petitions, in England and Ireland. Pursuant to the Parliamentary Elections Act, 1868. By Edward Loughlin O'Malley and Henry Hardcastle. Vol. IV. Part III. and all after are Edited by J. S. Sandars and A. P. P. Keep, Barristers-at-Law. Vols. I., II., III., IV., V. and Vol. VL, Parts I. and II., price 7/. igj. (>d. Peile's Law and Practice of Discovery in the Supreme Court of Justice. With an Appendix of Forms, Orders, &c., and an Addenda giving the Alterations under the New Rules of Practice. By Clarence J. Peile, of the Inner Temple, Barrister-at-Law. In Svo, price I 2j., cloth. 1883. STEVENS &- HAYNES, BELL YARD, TEMPLE BAR. 26 Pemberton's Judgments, Orders, and Practice of the Supreme Court, Chiefly in respect to actions assigned to the Chancery Division. By LoFTUS Leigh Pemberton, one of the registrars of the Supreme Court of Judicature ; and Author of " The Practice in Equity by way of Revivor and Supplement." Fourth Edition, in royal 8vo, price 40^., cloth. 1889. Pemberton's Practice of Equity by Way of Revivor and Supplement. With Forms of Orders and Appendix of Bills. By Loftus Leigh Pemberton, of the Chancery Registrar's Office. In royal 8vo, price los. dd., cloth. 1867. Phillipson. Two Studies in International Law. By Coleman Phillipson, M.A., Barrister-at-Law. 5^. net. Phillipson. The Effect of War on Con= tracts. By Coleman Phillipson, M.A., LL.D., Barrister-at-Law. 3^. (id. net. Phipson's Law of Evidence. By S. L. Phipson, M.A., of the Inner Temple, Barrister-at-Law. Fifth Edition, in demy 8vo, price iSj., cloth. 1911. " This valuable book of reference has been brought up to date by the inclusion of the Criminal Evidence Act, 1898, and the changes wrought by it in the Law of Evidence." — Cambridge Review. " Mr. Phipson's is certainly one ofthe most useful works on an important and difficult subject. That it is appreciated by the profession is obvious, or it would not in ten years have reached a third edition." — Oxford Magazine, " . . . . The work is a happy medium between a book of the type of Stephen's Digest, and the large treatises upon the subject, and owing to its excellent arrangement is one that is well suited both to practitioners and students." — Law Times. Phipson's Manual of the Law of Evidence. Being an abridgment of the larger treatise. By S. L. Phipson, M.A., of the Inner Temple, Barrister-at-Law. In crown 8vo, js. 6d. 1908. Porter's Laws of Insurance: Fire, Life, Accident, and Guarantee. Embodying Cases in the English, Scotch, Irish, American, and Canadian Courts. By James Biggs Porter, of the Inner Temple, Barrister-at-Law ; assisted by W. Feilden Craies, M.A. Fifth Edition, in 8vo, 21s. 1908. " The successive editions of this book which have been called for shew that the profession appreciate the advantage of having the law as to the various forms of assurance, except Marine Insurance, which forms a branch quite by itself, collected in one volume. . . . The work is clearly written, and this edition has been brought up to date by the inclusion of a large number of recent cases." — Solicitors' Journal. Porter. A Manual of the Law of Principal and Agent. By James Biggs Porter, Barrister-at-Law. In 8vo, price \os. 6a?., cloth. 1905. 26 STEVENS <&- HAYNES, BELL YARD, TEMPLE BAR. Renton's Law and Practice in Lunacy. With the Lunacy Acts, 1890-91 (Consolidated and Annotated) ; the Rules of Lunacy Commissioners ; the Idiots Act, 1886; the Vacating of Seats Act, 1886; the Rules in Lunacy; the Lancashire County (Asylums and other powers) Act, 1891 ; the Inebriates Act, 1879 and 1888 (Consolidated and Annotated) ; the Criminal Lunacy Acts, 1800-1884; and a Collection of Forms, Precedents, &c. By A. Wood Renton, Barrister-at-Law. In one Volume, royal 8vo, price 50J. net. 1897. Ringwood's Principles of Bankruptcy. Embodying the Bankruptcy Acts, 1883 and 1890, and the Leading Cases thereon ; Part of the Debtors Act, 1869; The Bankruptcy Appeals (County Courts) Act, 1884; The Bankruptcy (Discharge and Closure) Act, 1887; The Preferential Pay- nients in Bankruptcy Acts, 1888 and 1897 : with an Appendix containing the Schedules to the Bankruptcy Act, 1883 j The Bankruptcy Rules, 1886, 1890, and 1891 ; the Rules as to the Committal of Judgment Debtors, and as to Administration Orders ; Regulations Issued by the Bankruptcy Judge ; a Scale of Costs, Fees, and Percentages ; The Bills of Sale Acts, 1878, 1882, 1890, and 1891, and the Rules thereunder ; The Deeds of Arrangement Act, 1887 ; and the Rules thereunder. By Richard Ringwood, M.A., of the Middle Temple, Barrister-at-Law ; late Scholar of Trinity College, Dublin. Tenth Edition, in Svo, price lOi. 6if., cloth, 1908. "We welcome a new edition of this fitcellent student's book. We have written favourably of it in reviewing previous editions, and every ^ood word we have written we would now reiterate and perhaps even more so. . . . In conclusion, we congratulate Mr. Ringwood on this edition, and have no hesitation in saying that it is a capital student's book."— Zaw Students' youmal, "This edition is a considerable improvement on the first, and although chiefly written for the use of students, the work will be found useful to the practitioner." — Law Times, " The author deals with the whole history of a bankruptcy from the initial act of bankruptcy down to the discharge of the bankrupt, and a cursory perusal of his work gives the impression that the book will prove useful to practitioners as well as to students. The appendix also contains much matter that will be useful to practitioners, including the Schedules, the Bankruptcy Rules of 1886, 1890 and i8gi, the Rules of the Supreme Court as to Bills of Sale, and various Acts of Parliament bearing upon the subject. The Index is copious." — Accountants' Magazine. Ring-wood's Outlines of the Law of Torts. Prescribed as a Textbook by the Incorporated Law Society of Ireland. By Richard Ringwood, M.A., of the Middle Temple, Barrister-at-Law; author of "Principles of Bankruptcy," etc., and Lecturer on Common Law to the Incorporated Law Society. Fourth Edition, in 8vo, price los. 6d.y cloth. 1906. "We have always had a great liking for this work, and are very pleased to see by the appearance of a new Editign that it is appreciated by students. We consider that for the ordinary student who wants to take up a separate work on Torts, this is the best book he can read, for it is clear and explanatory, and has good illustrative cases, and it is all contained in a very modest compass. . . . This Edition appears to have been thoroughly revised, and is, we think, in many respects improved." — Law Students' youmaL " The work is one we well recommend to law students, and the able way in which it is written reflects much credit upon the author." — La7v Times. Ringwood's Outlines of the Law of Banking. In crown lamo, price 5^., cloth. 1906. "... The book is in a most convenient and portable form, and we can heartily commend the latest production of this well-known writer to the attention of the business community." — Financial Times. Rowlatt's Law of Principal and Surety. By S. A. T. RowLATT, M.A., late Fellow of King's College, Cambridge; of the Inner Temple, Barrister-at-Law. In Svo, price i6s, 1899. "... Here will be found all the rights and liabilities of the surety, his defences, his releases, the eflfect of bankruptcy, and so on ; and, as we said at the outset, the index forms a most excellent and comprehensive guide to the text. . , . We can quite believe that this text-book will take a respectable place among legal authorities." — Law Titties, " He brings out fully in all its ramifications the nature of the law of guarantee."— 5"a/«7-rfa>' Review, "There are too many works on most branches of the English Law, and too many writers eager to make books on almost every legal subject, however small. It is, therefore, a remarkable fact that a subject so important as the Law of Sureties has been comparatively neglected, there being only one recent work of repute devoted entirely to the subject. For this reason we welcome Mr, Rowlatt's treatise, which has solid merits that ought to insure success. The book is a very good one, and the author maybe congratulated on the successful accomplishment of a difficult task.'* — Law Journal. STEVENS &' HAYNES, BELL YARD, TEMPLE BAR. 27 Salkowski's Institutes and History of Roman Private Law. With Catena of Texts. By Dr. Carl Salkowski, Professor of Laws, Konigsberg. Translated and Edited by E. E. Whitfield, M.A. (Oxon.). In 8vo, price 32j., cloth. 1886. >v i , Salmond's Jurisprudence ; or, Theory of the Law. By John W. Salmond, M.A., LL.B., Barrister-at-Law ; author of "Essays in Jurisprudence and Legal History." Third Edition. In demy 8vo, price I2J. 6d., net, cloth. 1910. Salmond's Essays in Jurisprudence and Legal History. By John W. Salmond, M.A., LL.B. (Lond.), a Barrister of the Supreme Court of New Zealand. In crown 8vo, price 6s., cloth. 1891. Salmond's Law of Torts. A Treatise on the EnglishLawof Liability for Civil Injuries. By John W. Salmond, M. A., LL.B., Barrister-at-Law. Third Edition. In 8vo, price 22j. 6(^. , cloth. 1912. Savigny's Treatise on Obligations in Roman Law. By Archibald Bkown, M.A., Edin. and Oxon., and B.C.L. Oxon., of the Middle Temple, Barrister-at-Law. In 8vo, 1872, price Ts. 6(1., cloth. 1872. Scott's Abstract Drawing. Containing Instructions on the Drawing of Abstracts of Title, and an Illustrative Appendix. By C. E. Scott, Solicitor. In crown 8vo, price 4^. 6d., cloth. 1892. " This little book is intended for the assistance of those who have the framing of abstracts of title entrusted to their care. It contains a number of useful rules, and an illustrative appendix." — Liaw Ti?nes. " A handy book for all articled clerks." — Law Students' Journal. " Solicitors who have articled clerks would save themselves much trouble if they furnished their clerks with a copy of this little book before putting them on to draft an abstract of a heap of title deeds."— Z.rt«/ Notes, " The book ought to be perused by.all law students and articled clerks." — Red Tape. Sealer's Law of Parliamentary Registra= tion. With an Appendix of Statutes and Full Index. By J. R. Seager, Registration Agent. In crown 8vo, price ^s., cloth. 1881. Short & Mellor's Practice on the Crown Side of the Queen's Bench Division of Her Majesty's High Court of Justice. (Founded on Corner's Crown Office Practice), including Appeals from Inferior Courts ; with Appendices of Rules and Forms. Second Edition. By F. H. Short, Chief Clerk of the Crown Office, and Francis Hamilton Mellor, M.A., K.C. In royal 8vo, price 30J., cloth. 1908. Short's Crown Office Rules and Forms, 1886. The Supreme Court of Judicature Acts and Rules of the Supreme Court, 1883, relating to the Practice on the Crown side of the Queen's Bench Division ; including Appeals from Inferior Courts, Tables of Court Fees, Scales of Costs ; together with Notes, Cases, and a Full Index. By F. H. Short, Chief Clerk of the Crown Office. In 8vo, price 12s., cloth. 1886. 28 STEVENS &- HAYNES, BELL YARD, TEMPLE BAR., Short's Taxation of Costs in the Crown Office. Comprising a Collection of Bills of Costs in the Various Matters Taxable in that Office, including Costs upon the Prosecution of Fraudulent Bankrupts, and on Appeals from Inferior Courts ; together with a Table of Court Fees, and a Scale of Costs usually allowed to Solicitors, on the Taxation of Costs on the Crown Side of the Queen's Bench Division of the High Court of Justice. By Fredk. H., Short, Chief Clerk in the Crown Office. In 8vo, price loj., cloth. 1879. Shower's Cases in Parliament Resolved and Adjudged upon Petitions and Writs of Error. Fourth Edition. Containing additional cases not hitherto reported. Revised and Edited by Richard Loveland Loveland, of the Inner Temple, Barrister- at-Law ; Editor of "Kelyng's Crown Cases," and "Hall's Essay on the Rights of the Crown in the Seashore." In 8vo, price 4/. 4^., best calf binding. 1876. Simpson's Law and Practice relating to Infants. Third Edition. By E. J. Elgood, B. C. L. , M. A. , of Lincoln's Inn, Barrister-at-Law. In Royal 8vo, 2\s. 1909. Slater's Law of Arbitration and Awards. With Appendix containing the Statutes relating to Arbitration, and a collection of Forms and Index. Fourth Edition. By Joshua Slater, of Gray's Inn, Barrister-at-Law. Crown 8vo, price 6s. dd., cloth. 1905. Slater's Principles of Mercantile Law. By Joshua Slater, of Gray's Inn, Barrister-at-Law. Third Edition. Crown 8vo, price 6^. dd., cloth. 1507. Smith's Law and Practice in the Ecclesi= astical Courts. For the use of Students. By Eustace Smith, of the Inner Temple; author of '* A Summary of Company Law" and '* A Summary of the Law and Practice in Admiralty." Sixth Edition, in 8vo, price Sj., cloth. 1911. " His object has been, as he tells us in his preface, to give the student and general reader a fair outline cf the scope and extent of ecclesiastical law, of the principles on which it is founded, of the Courts by which it is enforced, and the procedure by which these Courts are regulated. We think the book well fulfils its object. Its value is much enhanced bj' a profuse citation of authorities for the propositions contained in it." — Bar Exavtination Journal. Smith's Law and Practice in Admiralty. For the use of Students. By Eustace Smith, of the Inner Temple ; author of *' A Summary of Company Law." Fourth Edition, in 8vo, price io.r. , cloth. 1892. " The book is well arranged, and forms a good introduction to the subject." — Solicitors Journal. " It is, however, in our opinion, a well and carefully written little work, and should be in the hands of every student who is taking up Admiralty Law at the Final." — Laiu Students' Journal. " Mr. Smith has a happy knack of compressing a large amount of useful matter in a small compass. The present work will doubtless be received with satisfaction equal to that with which his previous ' Summary "has been met." — Oxford and Cambridge Underg^-aduates' Jour^ial. Smith's Quarter Sessions Practice. A Vade Mecum of General Vractice in Appellate and Civil Cases at Quarter Sessions. By Frederick James Smith, of the Middle Temple, Barrister-at-Law, and Recorder of Margate. In Royal 1 2mo, price 20j., cloth. 18S2. STEVENS <5r- HAYNES, BELL YARD, TEMPLE BAR. 29 Smith's Short Practical Company Forms. By T. Eustace Smith, of the Inner Temple and Lincoln's Inn, Barrister-at-Law, Author of " A Summary of the Law of Companies," etc., assisted by Roland E. Vaughan Williams, of the Inner Temple, Barrister-at-Law. In 8vo, price 8i., cloth. 1896. " This collection of Company Forms shoald certainly prove of service to secretaries, directors, and others interested in the practical working of companies. . . . The forms themselves are short and to the point." — Law Times. Smith's Summary of Joint Stock Com= panics' Law under the Companies (Con= solidation) Act, 1908. By T. Eustace Smith, Barrister-at-Law. Eleventh Edition, in 8vo, price ^s. 6^., cloth, igog. "The author of this handbook tells us that when an articled student reading for the final examination, he felt the want of such a work as that before us, wherein could be found the main principles of a law relating to joint-stock companies . . . Law students may well read it ; for Mr. Smith has very wisely been at the pains of giving his authority for all his statement* of the law or of practice, as applied to joint-stock company business usually transacted in solicitors' chambers. In fact, Mr. Smith has by his little book offered a fresh inducement to students to make themselves — at all events, to some extent — acquainted with company law as a separate branch of study." — Law Xim.es. "These pages give, in the words of the Preface, ' as briefly and concisely as possible a general view both of the principles and practice of the law aflfecting companies.' The work is excellently printed, and authorities are cited ; but in no case is the very language of the statutes copied. The plan is good, and shows both grasp and neatness, and, both amongst students and laymen, Mr. Smith's book ought to meet a ready sale." — Law Jotimal. Snell's Principles of Equity. Intended for the use of Students and the Profession. By Edmund H. T. Snell of the Middle Temple, Barrister-at-Law. Sixteenth Edition. By Archibald Brown, M.A. Edin. and Oxon., and B. C.L. Oxon., of the Middle Temple, Barrister-at-Law ; Author of "A New Law Dictionary," "An Analysis of Savigny on Obligations," and the " Law 6f Fixtures. " In 8vo, price 2l.r., cloth. 1912. South African Republic, Cases decided in the High Court of the, during the Year 1893, as reported by J. B. M. Hertzog, B.A., LL.D., (late) First Puisne Judge of the Orange Free State, formerly an Advocate of the High Court of the South African Republic. Translated by J. Woodford S. Leonard, B.A., LL.B., formerly an Advocate of the High Court of the South African Republic, Advocate of the Supreme Court oi the Transvaal Colony. And revised by the Hon. J. G. Kotze, K.C, late Chief Justice of the South African Republic, subsequently Attorney-General of Rhodesia, and now Judge President of the Eastern Districts' Court in the Cape Colony. In royal 8vo, bound in half-calf, price 50J-. net ; postage \s. extra. South African Republic, The Official Reports of the High Court of, translated into English, with Index and Table of Cases. By Walter S. Webber, and revised by the Hon. J. G. Kotze, K.C, Late Chief Justice of the South African Republic, subsequently Attorney-General of Rhodesia, and now Judge President of the Eastern Districts' Court in the Cape Colony. Vol. I.— 1894. Vol. II.— 1895. Vol. III.— 1896. Vol. IV. — 1897. Translated by the Hon. Mr. Justice Kotze. Vol. V.— 1898. Vol. VI. — 1899. Translated by B. de KORTE. In royal Svo, bound in half-calf, price 50J. net each ; postage ij-. extra. Story's Commentaries on Equity Juris= prudence. Second English Edition, from the Twelfth American Edition. By W. E. Grigsby, LL.D. (Lond.), D.C.L. (Oxon.), and of the Inner Temple, Barrister-at-Law. In royal Svo, 1 100 pages, price 45^., cloth. 1892. " It is high testimony to the reputation of Story, and to the editorship of Dr. Grigsby, that another edition should have been called for. . . . The work has been rendered more perfect by additional Indices." — Law Ti»ies. 30 STEVENS &= HAYNES, BELL YARD, TEMPLE BAR. Tarring' s Chapters on the Law relating to the Colonies. To which are appended Topical Indexes of Cases decided in the Privy Council on Appeal from the Colonies, Channel Islands and the Isle of Man, and of Cases relating to the Colonies decided in the English Courts otherwise than on Appeal from the Colonies. By Charles James Tarring, M.A., sometime Judge of H.B.M.'s Consular Court, Constantinople, and H.M.'s Consul ; late Chief Justice of Grenada, W. Indies; Author of "British Consular Jurisdiction in the East," "A Turkish Grammar," &c. Third Edition, much enlarged, in 8vo, price 2,1s., cloth. 1906. Tarring's British Consular Jurisdiction in the East. With Topical Indices of Cases on Appeal from, and relating to. Consular Courts and Consuls; also a Collection of Statutes concerning Consuls. By C. J. Tarring, M.A., Chief Justice of Grenada. In 8vo, price 7^. bd., cloth. 1887. Tarring's Analytical Tables of the Law of Real Property. Drawn up chiefly from Stephen's Blackstone, with Notes. By C. J. Tarring, of the Inner Temple, Barrister-at-Law. In royal 8vo, price 5^., cloth. 1882. "Great care and considerable skill have been shown in the compilation of these tables, which will be found of much service to students of the Law of Real Property." — Laiv Times. Taswell=Langmead's English Constitu= tional History. From the Teutonic Invasion to the Present Time. Designed as a Text-book for Students and others. By T. P. Taswbll-Lakgmead, B.C. L., of Lincoln's Inn, Barrister-at-Law, formerly Vinerian Scholar in the University and late Professor of Constitutional Law and History, University College, London. Seventh Edition, Revised throughout, with Notes. By Philip A. Ashworth, Barrister-at-Law ; Translator of Gneist's " History of the English Constitution." In 8vo, price fjs., cloth. 1911. Thomas's Leading Statutes Summarised. For the Use of Students. By Ernest C. Thomas, Eacon Scholar of the Hon. Society of Gray's Inn, late Scholar of Trinity College, Oxford ; author of " Leading Cases in Constitutional Law Briefly Stated." In one volume, 8vo, price 9^. , cloth. 1878. Thomas's Leading Cases in Constitutional Law. Briefly Stated, with Introduction and Notes. By Ernest C. Thomas, Bacon Scholar of the Hon. Society of Gray's Inn, late Scholar of Trinity College, Oxford. Fourth Edition by C. L. Attenborough, of the Inner Temple, Barrister-at-Law. In 8vo, enlarged, price 6^., cloth. 1908. Thwaites's Articled Clerk's Guide to the Intermediate Examination, As it now exists on Stephen's Commentaries. Containing a complete Scheme of Work, Notes and Test Questions on each Chapter : List of Statutes. Also a com- plete Selected Digest of the whole of the Questions and Answers set at the Examinations on those parts of " Stephen " now examined on, up to January, 1902. Intended for the use of all Articled Clerks who have not yet passed the Intermediate Examination. Charles Thwaites, Solicitor. In 8vo, price los , net, cloth. 1902. STEVENS &> HAYNES, BELL YARD, TEMPLE BAR. 31 Trial of Adelaide Bartlett for Murder. Complete and Revised Report. Edited by Edward Beal, B.A., of the Middle Temple, Barrister-at-Law. With a Preface by Sir Edward Clarke, K.C. In 8vo, price las., cloth. 1886. Van Leeuwen's Commentaries on the Roman = Dutch Law. Revised and Edited with Notes in Two Volumes by C. W. Decker, Advocate. Translated from the original Dutch by J. G. K0Tz6, LL.B., of the Inner Temple, Barrister-at-Law, and Chief Justice of the Transvaal. With Facsimile Portrait in the Edition by DecIcer of 1780. In 2 Vols., royal 8vo, price 90J., cloth. 1887. Waite's Questions on Equity. For Students preparing for Examination. Founded on the Ninth Edition of Snell's " Principles of Equity." By W. T. 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Fourth Edition, in demy Svo, price 25s. cloth, A TREATISE UPON THE LAW OF EXTRADITION and the Practice thereunder in Great Britain, Canada, the United States, and France, with the Conventions upon the Subject existing between England and Foreign Nations, and the Cases decided thereon. By Sir Edwauu Clarke, Knt., K.C., Her Majesty's Solicitor-General, 1886-1892. Formerly Taucred Student of Lincoln's Inn. Fourth Edition, prepared by the Author and E. Peroival Clarke, B.A., of Lincoln's Inn, Barrister-at-Law. [See Catalogue at end of this Volume,! IW' mm mi 'mm^ds