J i?? •n Hiiwi-H laiMnsWrHiirtnttd >*twuiv i? mitHit wh i+t ittw mi« :^( r. ,-ijyiJ,iittHM**im«if.* 1 1 '-itimrf II OMuiijAWnihMi WilUSPJ f umj ; li .,^ CoRNEi-L University Law Library FROM THE BENNO LOEWY LIBRARY RECEIVED BY CORNELL UNIVERSITY UNDER THE WILL OF MR. BENNO LOEWY Cornell University Library KD 1480.L67 1857 A practical treatise on the law of trust 3 1924 021 859 305 Cornell University Library The original of tinis book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924021859305 PEACTICAL TEEATISE THE LAW OF TRUSTS TRUSTEES. BY THOMAS LEWIN, ESQ., OF TRINITY COLLEGE, OXON., M.A., AND OF LINCOLN'S INN, BAHRISTER-AT-LAW, ONE 01' THE OOHTETANOIHS COUNSEL TO THE OOUKT OE OHANOEKY. THIRD EDITION. LONDON : W. MAXWELL, 82, BELL YAED, LINCOLN'S INN, Hato iSeokstUtx enS i^ubligljet: HODGES,' SMITH, & Co., DUBUlir. 1857. B ii^3:l LONDON : BEADBUBT AND EVANS, PRINTERS, WHITEFEIAUS. RIGHT HONORABLE LORD ST. LEONARDS, ETC. ETC. ETC. Mt Lord, .^' '^'^ The rare talents and indefatigable industry/ "wMcli, ? without any extrinsic aid, have raised your Lordship/ .^o^ the most honorable eminence, command the adiniration and respect of every Member of the profession. ';:':Jv Personally I feel myself under peculiar obhgations. Your Lordship's writings have been the models, and have furnished no small part of the materials, for the present treatise; and your Lordship's appointment of me as one of the Conveyancing Counsel to the Court has enabled me to bring to the revision of my work an enlarged practical experience. Permit me, my Lord, on these public and private grounds, to dedicate the following pages to your Lordship, and with the earnest hope that your Lordship's valuable life may long be preserved to the profession and the community at large, I remain Your Lordship's most obliged and grateful servant, THE AUTHOR. a 2 PREFACE. In the present Edition the Author has recast the earlier part of the work, and, besides incorporating recent cases and statutes, and interspersing much additional matter through- out, has appended a supplementary chapter on Pleading and Practice. The correction of the press was kindly undertaken for the Author by Mr. F. 0. Haynes, whose extensive knowledge of law and careful research are Well known at the Chancery Bar. Had the labours of Mr. Haynes gone no further, the Author would have felt grateful for the assistance, but in fact Mr. Haynes, as the sheets passed through his hands, has identified himself with the Author, and examined into the law — has inserted additional authorities which had been inadvertently omitted, and corrected mistakes into which the Author had occasionally fallen. Moot points, also, as they arose have been freely discussed, and the reader has the benefit of the conclusions arrived at. The Author is of course to be held responsible for the errors which remain, but the value of the work (whatever it may be) has been unquestion- ably much enhanced by the legal acumen and learning which Mr. Haynes has imported into it. VI PREFACE. The Index has been compiled for the Author by Mr. P. A. Kingdon, a much esteemed former pupil. The merits of this part of the work will be best tested in the use, but a superficial glance will show that never were more pains taken to render an Index as perfect as possible. The Author begs in conclusion to thank his coadjutors for their timely aid, and to assure them that he appreciates his own performance much more highly from the circumstance that two gentlemen of their talents and standing, have con- descended to bestow upon it so much of their time and labour. Jvly i, 1857. TABULAE ANALYSIS. PAET I. Definition of a trust, p. 15. Classification of trusts, p. 21. Creation of trusts, p. 24. By act of a party, p. 24. By operation of law, p. 176. Neceasaiy parties to a trust, p. 24. What property maybe made subject to a trust, p. 45. Formalities required, p. 56. The object proposed, p. 103. Of the lan- guage de- claring the tiTist, p. 140. Lawful trusts, p. 103. Unlawful trusts, p. 131. trusts, p. 140. Implied trusts, p. 167. Executed, p. 144. Executory, p. 144. In marriage ar- ticles, p. 146. In wills, p. 153. Settlor, p. 24. Trustee, p. 30. Cestui que trust, p. 41. At common law, p. 56. Under Stat. ofFrauds, p. 60. Under Stat, of "Wills, p. 65. Of transmuta- tion of pos- session, p. 81. Resulting trusts, p. 176. Constructive trusts, as renewal of leaseholds, &c., p. 217. Legal interest, but not the equitable, disposed of, p. 176. Upon purchases in names of third persons, p. 199. By presumption of law, p. 177. By force of words, p. 181. In name of a stranger, p. 199. In name of a child, p. 207. TABULAR ANALYSIS- PAET II. The Trustee. Disclaimer and ac- ceptance, p, 232. The legal estate in the trustee, p. 246. The office of trustee, p. 289. How vested, p. 246. Properties of estate, p. 260. What owners of the estate bound by the trust, p. 279. At common law, p. 260. By statute, p. 273. General properties, p. 289. Duties of trustees, p. 326. 1. Renunciation, p. 289. 2. Delegation, p. 290. 3. Joint nature of the ofSce, p. 297. 4. Survivorship, p. 299. 5. Liability, p. 302. 6. Trustee excluded from all benefit, p. 318. Powers, p. 512. General, p. 512. ' Special, p. 624. Allowances, p. 545. Relinquishment of office, -p. 565. For trouble, p. 545. For expenses, p. 557. By consent of cestui que trusty p. 565. By power, p. 566. By smt, p. 582. In trusts of personalty, p. 326. In trusts of renewable leaseholds, p. 383. In trusts to pre- serve contin- gent remain- ders, p 404. In trusts for sale, p. 414. 1. Reduction into possession, p. 326. 2. Safe custody, p, 332. 3. Investment, p. 337. 4. Liability of trustees to payment of interest, p. 358. 5. Distribution of the trust fund, p. 365. In trusts for pay- ment of debts, p. 474. Geiiiral duties, p. 414. Trustees' receipts, p. 428. In trusts for charities, p. 492. ■ Purchase of the trust property by trustees, p. 460. TABULAE ANALYSIS. IX PAET III. The Cestui que Trust. Estate as between cestui que trust and trustee, p. 585. Estate as uffected by dealings of ces- tui gue i?*us(, or by operatdon of law, p. 600. -_P Subsidiary rights of cestui gue trust, p. 693. In. the simple trust, p. 586. In the special trust, p. 697. Jus nabendi^ p. 585. J-ULS disponendi, p. 595. Maxims of equity in support of the cestui gue trusts' estate against the acts of the trustee, p. 792. Statutory enact- ments remedy- ing inconveni- ences from the disability of the trustee, p. 83'2. Belief against failure of the trustee, p. 693. Eights in prevention of a breach of trust, p. 710. 9. 10. 11. Assignment, p. 600. Testamentary disposition, p. 615. Seisin, p. 617. Dower and curtesy, p. 621. ■peme covert, p. 627. Judgments, p. 646. Extents, p. 673. Forfeiture, p. 674. Eschoat, p. 678. Descefut, p. 680. Assets, p. 681. Kemediea in event of a _breach of trust]" p. 724. Appointment of proper trustees, p. 710, Compulsion of trustees to duty, p. 718. Injunction against breach of duty, p. 723. Of following the spe- cific trust estate, p. 724. Of attaching property into which the trust estate has been converted, p. 763. Kemedy against the trustee personally, p. 763. Eemedies in breaches of trust by trustees for charities, p. 778. PAET IV. Pleading and Practice in reference to tlie Law of Trusts and Trustees- Necessary parties to suits, p. 841. Ordei^ and manner of suing and de- fending, p- 856. Distringas, p. 868. Compulsoiy pay- ment into court, p. 864. Receivership, p. 869. Costs of suit, p, 872, CONTENTS. INTRODUCTION. PAGE Origin of trusts . ... . . . . . . 1 Invention of the suhposna ..... The simple trust or use ...... Confidence in the person of the trustee .... Privity of estate in the trustee . . . . ■ Privity as applied to the estate of the eesi/ai que use The special trust ....... Both kinds of trusts applicable to chattels .... Statute of 1 R 3. c. 1 What trusts within it ... . . . [Whether a trust could have been declared on an estate for life 6, note (1)] Statute of 2r Hen. 8. c. 10 7 [Mr. Sanders's doctrine, that before this statute no use could have been declared on an estate in taU,' or for life . 7, note (1)] What trusts -within the statute ....... 7 Introduction of the modem trust . ' . . 8 Statutes against uses not appUoable to trusts Trusts at first administered on principles of uses Subsequent improvements of the system .... In respect of the estate in the trustee .... In respect of the cestui que trust .... Principles governing trusts at the present day . 8 9 9 10 11 13 PART I. DEFINITION, DISTRIBUTION, AND CREATION OF TRUSTS. CHAPTER I. DEFINITION OF A TRUST. 1. A trust is a confidence . . . . . . 15 2. Reposed in some other . . . . . . .15 How far the equitable merges in the legal estate . . . 16 XU CONTENTS. PABE 3. Not issuing out of the land, but collateral to it . . . 18 4. Annexed in privity to th.e estate . . . . . . 18 5. Annexed in privity to the person ..... 19 6. Cestui que trust has no remedy but by siibpcena in Chancery . 19 CHAPTEE II. CLASSIFICATION OF TRUSTS. The simple trust .... . . . 21 The special trust ......... 21 The latter either ministerial . . . . ,, . . . 21 Or discretionary ......... 21 Mixture of trust and power ....... 22 Trusts laTrful and unlawful ....... 22 Trusts public and private ....... 23 CHAPTER III. OF THE PARTIES TO THE CREATION OF TRUSTS. Section I. OF THE SETTLOR. Who may create a trust .... .... 24. The Crown 24 Corporations .......... 25 A feme covert ......... 25 As to property settled to separate use . . . , . 26 Infants .......... 26 Lunatics ... ...... 2? Traitors, felons, and outlaws ...... 28 Bankrupts and Insolvents . . . . . . . 29 Section II. WHO MAY BE A TRUSTEE. The Crown . 30 A Corporation ■•...... 31 Bank of England ••■...... 31 Feme covert ought not to be appointed ..... 34 Nor a /eme sole .••...... 35 Nor an infant ■•••..... 35 Alien may be a trustee of chattels personal .... 39 CONTENTS. Xlll PAGE Person domiciled abroad not a fit trustee ... .40 Bankrupts and insolvents not absolutely disqualified . 40 Cestms que trust should not be appointed trustees . . . 40 Proper number of trustees ....... 40 Section III. "WHO MAY BE CESTUI QUE TEIIST. The Crown may be . . . .... 42 A corporation not, so as respects lands, without license from the Crown .......... 43 Nor alien, of lands ........ 43 Secus as to proceeds o£.. Ekins .. 238,441,443,488 V. Gould . 328, 329, 332, 877 V. Jackson . . 633, 635 Bain v. Lescher . . . 122 Bainbridge v. Lord Ashburton 264 Bainbrigge v. Blair . 320, 549, 564, 556, 711, 870, 871 Back V. Andrews V. Gooch Backhouse v. Backhouse . ». Middleton . Bacon v. Bacon V. Proctor Badcock, in re Badcocke, ex parte . Baden v. Earl of Pembroke Bage, ex parte Baggett V. Meux Bagshaw v. Spencer V. Burton Baker, ex parte V. Carter ». Hall . V. Martin V. Read Balch V. Wastall Balchen v. Scott Baldock, ex parte Baldwin v. Baldwin V. Banister Bale V. Coleman 141. Balfour v. Welland Balgney v. Hamilton Ball V. Harris V. Montgomery Ballet V. Sprainger Balls V. Strutt Balsh V. Hyham V. Wastall Bamford v. Baron . Banbury v. Briscoe . Band v. Fardell Bangley's Trust Bank of England v. Lunn V. Moffatt V. Parsons. Bankes v. Le Despencer 1). Sutton, 621, 625, 680, 794, 795 Barber, ex parte . . . 265 V. Barber . . . 735 Barclay v. Raine . . . 227 V. Russell . . 198, 325 Bards well v. Bardswell 168, 170 BiacB, ex parte. . . . 771 Barfield ». Rogers . . .836 852 . 826 460, 465, 470, 774, 875 . 194 . 551 . 470 . 648 240, 291 . 424 . 628 . 319 144, 146, 266 432, 433, 436 . 206, 756 416, 440, 441, 442, 454 . 878 . 395 . 723 522, 569, 562 . 12 . 479 . 227 . 362, 363 . 381 32,33 32, 33 32,33 157, 638 TABLE OF CASES. Ivii PAOE PAGE Barker v. Boucher . . 489 Beale v. Symonds . 285 322, 679 V. Greenwood . , 247, 248 Beales v. Spencer . . 122 V. Duke of Devonshire . 435 Bean v. Sykes . 372 V. Lea , . 369 Beanland v. Halliwell . 813 V. May . ^ 20, 688 Beard v. Nulthall . . 94 Barkley v. Reay, Lord . . 871 Beatson v. Beatson . . 91 Barlow v. Grant , 517, 518 Beatty v. Johnstone . 847 Barnard v. Heaton . . . 397 Beauclerk v. Ashburnham 349, 542 V. Hunter . 729 Beaumont v. Beaumon ) . 869 V. Large . 408 409 410, 411 V. Meredith . . 866 V. Proby . . . 145 V. Salisbury (Mai quis] . 253 Barnardiston v. Soame . 20 Beavan v. Lord Oxford 280, 666, Barnes v. Crow . 591 668, 672 Barnwall v. Barnwall 660, 663, Beckett v. Cordley . . 39 664 754, 755 Beckford v. Beckford 215, 216 Barnwell v, Barnwell . 658 V. Close . 734 Barret v. Glubb . 269 V. Wade . 730, 731 Barrett v. Buck 118, 177 Bedford (Duke of) v. Marquis Barrington v. Hereforc . 194 of Abercorn . 164, 165 V. Liddle 119, 120 Charity, in re . . 493, 780 Barrow v. Greenough . 70 V. Leigh . . 658 Barry, inre . . 835 V. Woodham . . 456 V. Marriott 343, 346 Bedwell v. Froome . . 207 V. Woodham . . 858 Beech v. Keep . 81,84 Bartholomew's Trust, in re . 380 V. St. Vincent . . 119 Barthrop v. West . . 681 Beer (in the goods of) . . 234 Bartlett «. Bartlett . . 865 Beere v. Head . . 669 V. Green . , . 149 Begbie v. Crook , . 236 ■ V. Pickersgill . 200, 204, 205 Beilby, ex parte 123, 773 Bartley v. Bartley . 450, 533 Belch V. Harvey . 731 Barton ». Briscoe . 130, 631 Belchier, ex parte 293, 295, 305, Barwell v. Parker . 489 490, 491 310 332, 422 Baskerville ■». Baskerville . 144, 156 Belke's Charity . 718 Basset's (Sir W.) case , . 184 Belli). Bell . 721, 724, 725, 729, V. Clapham , . 408 730, 733 Bastard v. Proby . . . 156 Bell V. Hyde . , . 34 Bate V. Hooper 340, 353, 373 Bellamy, ea; patre . . 833 ». Scales . 356 V. Burrow . 63 Bateman v. Davis . 340 774, 777 Bellasis v. Compton . , 56,61 V. Hotchkin 111 , 119, 238 Bellingham v. Lowther . . 98 V. Margerison . 491, 852 Beloved Wilkes's Charity, ' n re 543 Bates V. Dandy . 631 Benbow v. Townsend 66, 61, 207 Bath (Earl of) v. Abney . . 272 Benn v. Dixon. . 808 ». Earl of Bradford 414, 489, Bennet, ex parte 136, 476 491, 513, 820 V. Box . 682, 683 Batson v. Lindegreen . 488 V. Davis. 121, 173, 260, Batteley v. Windle . . 180 276, 279 623 624, 694 Battersby's Trust . 895 V. Going . 873 Battier, ex parte . 269 V, Mayhew . 758 Baugh V. Price 466, 472 V. Whitehead . . 755 Baugham, esc parte . 380 Bennett ». Attkins . 873, 876 Baxter v. Pritchard . 478 V. Burgis . 244 Baxter's Will . . 891 ex parte 460, 461, 462, 463, Bay ley v. Boulcott 56,61 463 466, 467 V. Mansell . 713 V. Colley 392, 395, 402, V. Powell 184, 878 722 729 737, 778 Baylies v. Baylies . 589 V. Honywood . 542, 706 Baylis v. Newton . 177, 214 V. Powell 648 652, 663 Bayly v. Gumming 237, 533 Benson v. Benson 125, 130, 238, 631, Baynard v. WoUey . 768, 851 820, 822 Baynes v. Baynes . 839 V. Whittam . . . 172 Iviii TABLE OF CASES- Bentham v. Wiltshire Bentley 11. Craven . v. Mackay Berkhampstead Free ex parte Berrington u. Evans Berry v. Usher Bessey v. Windham Bethune «. Kennedy Sevan's case . Bevant v. Pope Beveridge, ex parte Beverley D. Beverley Beynon v. GoUins PAOB . 445 . 225, 318 63, 83 School, 493, 643, 782 . 661 183, 195, 196 . -478 354, 810, 812 . 827 . 260 . 715 . 603 . 435 Bick V. Motly 315, 362, 771, 772 Bickham v. Freeman . . 489 Bicknell v. Gough . . . 734 Biddulph, en parte . . . 772 V. Biddulph . . . 796 Bifield V. Taylor . . 841, 844 Biggs, inre . . . . 376 V. Andrews . . . 807 V. Penn . . . 854 Bignold V. Springfield . . 782 Bill V. Cureton . . • 93 Billing V. Webb . . .837 Billingsley v. Mathew . . 300 Billingsly v. Critchet . . 518 Binford v. Bawden . . 817 Bingham v. Clanmorris . . 236 V. Woodgate . . 284, 61 6 Bingley School, in re . . 785 Binion v. Stone . . .209 Binks V. Lord Eokeby 427, 431, 435 Birch V. Blagrave . . 178, 215 V. Cropper V. Wade Bird V. Johnson V. Lockey V. Peagrum Birls V. Betty . Birmingham School, in re Biscoe V. Kennedy 575 167, 703, 704 . 132 . 351, 361 . 642 . 767 492 634 V. Perkins 247, 405, 408, 409, 410, 411 . 372 . 68 . 866 147, 153, 154 . 536 . 122 Bishop V. Colebrook V. Talbot Black V. Creighton . Blackburn v. Stables Blackbume, ex parte Blacklow V. Laws . Blackston w.Hemsworth Hospital 502 Blackwood v. Borrowes . 317, 338, 419, 773, 777 Blagrave v. Blossom . . 258 Blair v. Bromley . . .734 V. Ormond . . .742 V. Nugent . . . 745 Blake v, Bunbury . . . 586 *. Foster . . .733 Blakely v. Brady Bland v. Bland V. Wilkins Blann v. Bell . Blatch V. Wilder . Blennerhassett v. Day Blewitt V. Millett . V. Thomas Blinkhorne v. Feast Bliss V. Bridgwater . Blithe's case . Blomfield v. Eyre . Bloye's Trust, in re FASE . 87 169, 171 . 193 810, 813 173, 488 423, 734 220, 224 . 734 . 39 . 238 34, 626 753 379, 380, 460, 461, 462 . 521 . 317 274, 275 Blue V. Marshall Boardman r. Mosman Boddy V. Esdaile Bodenham v. Hoskyns 227, 459, 562 Boden's Trust, in re . . 888 Bold V. Hutchinson . . 149 Bolton V. Bolton, . . 97, 99 (Duke of) V. Deane . 754, 755 V. Williams . 634, 635, 639 Bond V. Hopkins . . .732 • ■». Nurse ... 19 Bone V. Cook . . . 306, 317 Bonham v. Newcomb . . 97 Bonifant v. Greenfield 235, 236, 237 Bonithon v. Hockmore 545, 546, 556 Bonner v. Bonner . . 370 Bonney v. Ridgard 453, 464, 465, 457, 460, 730, 731 Booth, ex parte . . . 290 V. Booth 239, 240, 290, 317, 768, 774 41. Warrington Boreham v. Bignall . Bosanquet, ex parte . Boschetti v. Power . Boson V. Statham Boss 1). Godsall Bostock V. Blakeney Bosvil V. Brander . Bosworth V. Forard Boteler v. Allington Bothomly v. Lord Fairfax Boughton V. James V. Langley Boulton V. Beard Bourne v. Buckton ■». Bourne V. Mole Bovey v. Smith Bowater v. Elly Bowden v. Bowden Bowes, ex parte V. East London works' Company . V. Earl of Shaftesbury . 805 Bowker v. Burdekin . 477, 479 734 . 368 . 835 . 866 56, 61, 67, 68, 74,80 . 339 356, 512, 514 . 628 . 251 . 16 489, 621 . Ill . 248 . 366 118, 119 . 808 . 867 725, 726, 727 603 810 263, 264, 836 Water- 622, 762, 778 TABLE OF CASES. lix FAQS PAGE Bowles V. Rogers . 277 Bromfield v. Wytherley . . 360 D. Stewart 223, 224, 778 Bromley «. Holland 842, 848 V. Weeks . 713 V. Lingard . 773 Bowyer v. Rivitt . 659 1). Smith . . 851 Bowra v. Wright . . 894 Brook v. Brook . 35 Box V. Box . 372 (Earl) V. Bulkeley . . 725 ' V. Jackson . 629 Brookes v. Burt . 848 Boyce v. Corbally . . 533 Brookman v. Hales . 182, 218 Brace v. Duchess ol Marl- 11. Rothschild . . 225 borough . 280 Brooksbank ». Smith . 733 Brackenbury v. Brackenhury . 138 Broom ». Broom . 839 Bradburne, in re . 837 ■». Summers . . 497 Bradford v. Belfield . 296, 297 Brougham (Lord) v. Poulett Bradgate v. Ridlington . 487 (Lord) . . . 564 Bradish ». Gee . 823, 824 Broughton «. Broughton 320, 649, Bradshaw, ex parte . . 890 650 V. BradsJtiaw . . 300 V. James . . 641 «. Fane . . 417 . V. Langley . 246 Bradwell v. Catchpole . 304, 726 Browell v. Read 237, 424, 869, 871 Brandlyn v. Ord . 726 Brown, ex parte . 781 Brandon v. Aston . . 136, 520 V. Bamford . 129 V. Robinson . 132 V. Bigg . . 196 Brasier v. Hudson . . 431 ■». Brown . 713 Brassey v. Chalmers 417, 530, 533 ■ ■». Dawson . . . 498 Bray, ex parte . 557 V. De Tastet . . 648 V. West . . 235 2). Groombridge . 664 Braybroke (Lord) v. Inskip 262, 263,' «. Higgs 168, 197, 626, 695, 264, 449 696, 701, 702, 703, 706, 708, 709 Brearcliff v. Dorrington . . 614 V. How . . 686, 876 Breedon ». Breedon . 432 V. Jones . . 182, 191 Brest V. Offley . 167 . V. Like . . 123 Brett V. Greenwell . . 369 V. Litton 343, 360, 361, 548 Brettell, ex parte . 263, 264 V. Pocock 124, 128, 701, 704 Brewer v. Swirles . 640, 776 V. Raindle . 260 Brewster v. Angell . 164, 165, 166 V. Sansome . 361, 364 Brice v. Stokes 304, 305, 306, 311, V. Whiteway . . 256 312, 316 317, 774, 775 Browne v. Blount . . 849 Bridgenorth (Corporation oif) ». V. Cavendish 481, 482, 483, ■ Collins . 116 653 Bridge v. Bridge 65, 81, 83, 84, 89, V. Cross . . 742, 776 94 11. De Laet . 189 V. Brown 613, 517, 567 V. Elton . 628 Bridger v. Rice . 415 11. Lockhart . -867 Bridgett v. Hames . . 851 V. Southouse . . , 359, 361 Briggs V. Chamberlain . 818 V. Stoughton . . Ill V. Oxford (Earl c f) . . 112 Brudenell v. Boughton . 65 V. Penny 68, 78 168, 169, 173 Bruere v. Pemberton . 359 Blight V. North . 516, 659 Brummell v. Macpherson . 42 Bright's Trust, in re . 613 Brunsden v. Woolredge 542, 699, Bristed v. Wilkins . . 671 706 Bristol (Countess of) » Hunger- Bryan v. Collins . 116 ford . . 183, 184 v. Brydges . 142 Bristow V. Pegge . 590 Buchanan v. Hamilton . 710 Britten v. Cole . 647 Buck V. Shippam . 486 Britton ». Twining . . 142 Buckeridge ii. Glasse 2C 7, 711, 756, Broadhurst v. Balguy 306, 775, 778 7 74, 775, 778 Brocksopp V. Barnes 545, 549, 563 V. Ingram . 393, 396 Brodie v. Bany . 643, 869 Buckingham (Earl of) v. I )rury 39, 792 V. St. Paul . 872 Buckle V. Mitchell . . 93 Bromiield, ex parte 826, 827, 828, Buckley's Trust, in re . 375 829, 830 Buckley v. Lanauze . 218 Ix TABLE OF CASES. Buffery, ex parte Bugden v. Bignold . Buggins V. Yates 169, 1 Bulkly V. Wilford . Bull J). Birkbeck — V. Vardy Bullock V. Knight . V. Wheatley . BuUpin V. Clarke . Bunnett v. Foster . Bunting, in re , . Burbridge, ex parte . Burchett v. Durdant Burden v. Burden . Burdett v. Rockey . V. Willet Burdon v. Burdon . Burdon v. Kennedy Burge V. Brutton Burgess v. Wheate PAGE 716 608 0, 180, 183 . 226 . 403 . 172 . 629 . 328 634, 641 183, 851 . 226 . 278 . 248 . 549 . 261 . 754 . 643 649, 665 320, 550 10, 11, 12, 13, 14, 15, 30, 42,. 43, 57, 103, 269, 270, 280,. 281,. 282, .283, 284, 285, 318, 321, 322, 323, 593, 600, 615, 622, 625,-629, 675, 677, 678, 680, 724, 725, 792, 795, 872 Burgh ». Burgh . . .280 * V. Francis . . . 279 Burke v. Jones, . . . 484 Burn V. Carvalho . . .92 Burney «. Macdonald, 43, 72, 132, 472 Burniei). Getting . . . 342 Burntree Building Society, in re 837 Burrell v. Bgremont (Lord) . 733 Burridge v. Kow Burrough v. Philcox Burroughs v. Elton . V. M'Creight . Burrowes v. Lock . Burrows v. Greenwood V. Walls Burt, re . ■ V. Dennet V. Ingram V. Sturt . Burting v. Stonard . Burton, ex parte V. Hastings v.. Hodsoll V. Mount t!. Pierpoint K. Wookey Burtt's Trust, re Estate, re Bush v. Allen Butcher r>. Easto Butler & Baker's case Butler's Trust, re . Butler, ex parte V. Bray . , V. Portarlington V. Prendergast . 771 703, 704 . 659 748 . 605 . 875 599, 778 882, 901 . 846 . 339 119, 120 . 459 226, 768 148, 149 . 807 . 810 121, 694 . 546 297 534, 267, 533 . 250 . 477 235, 236 . 381 . 274 299, 536 . 63 842, 847 Buxton, ex parte V. Buxton Byam v. Byam PAGE . 423 . 329, 415 450, 533, 536,. 543 Byrchall v. Bradford 243, 764, 774 Byrne, re .... 713 V. Frere . . 733, 734, 738 Cadooan V, Earl of Essex 349, 542 V. Kennet . . . 594 Cafe V. Bent . 524, 544, 582, 812 CafErey ». Darby 326, 557, 558, 766, 875 Caillaud «. Estwick Caldecott v.. Brown . V. (Jaldecott Callaghan v. Egan . Callow V. Howie Calvert v. Godfrey . Calverley v. Phelp . Cambridge ». Rous . Camden v. Anderson Camoys (Lord) v. Best Campbell v. Campbell V. Ferrall «. Graham V. Home ■». Walker 421, 460, 461," 462, 464,. 465, 466, 467, 468, 470, 471, 472, 473 . 649 . 514 364, 814, 815 . 839 . 633, 634 . 840 . 842 . 195, 197 . 203 . 566, 578 . 547 . 662 . 739 367, 695 Caney v. Bond Cann v. Cann Canning ». Hicks Cant, ex parte Cantley, re Cape V. Cape . Capel ». Wood Car V. Burlington V. Ellison Carbis, ex parte Carew v. Johnston Carleton v. Earl of Dorset Carlisle (Corporation of) v. son Carlon v. Farlar Carmichael v. Wilson Carpenter, yj re V. Carpenter . V. Heriot ». Marnell Carr v. Bedford V. Ellison v. Errol . Carrick v. Ei-rington Carsey v. Barsham . Caiter v. Barnardiston V. Home V. Taggart V. Waine Carteret (Lord) v. Paschal 328 472 18 901 264 122 384 489, 490, 491 272, 816 612, 613 . 546 631 Wil- . 753 . 662 361, 517 . 882 . 603 . 472 274, 275, 276 538, 707 . 816 . 163 . 182 . 305 251, 428 225, 318 369, 370 . 474 . 630 TABLE OF CASES. Ixi PAGE Carteret (Lord) v. Petty . 50 Caxtwrigiit, ex parte . 714,716 Carvill v. Carvill . . .173 Carwardine v. Carwardine . 246 Gary v. Gary . 167, 168, 169 Casamajor v. Strode . . 816 Casborne v. Scarfe . 262, 263, 264, 621 623 680 Gasburne v. Gasbume 11 625 Gasey's Trust, in re , 136 Gathorpe, ex parte . 343 Gator V. Croydon Railway Com- pany .... 763 V. Earl of Pembroke 758 Cave V. Roberts 325 Cavendish v. Mercer 620 Cawkwell, ex parte . 479 Cawthorn, in re 380 Gazneau's Legacy . 378 Chadwick v. Heatley 373 V. Holt 667 Challen v. Shippam 357 Chalmer v. Bradley 289, 470, 471, 472,729 737 819 Chaloner v. Butcher 824 Chamberlain v. Agar 71 Chamberlaine v. Ghamberlaine 70 Chambers, ex parte 517 V. Chambers . 149 810 V. Goldwin 546 556 V. Minchin 290, 291, 293, 305, 311 ,312 315 • V. Waters . . .462 Champion, ex parte . .351 V. Rigby . . .470 Chancellor v. Morecraft . . 851 Chandler, in re . . . 763 Ghancey v. May . . . 851 Chase v. Gable . . . 477 Chaplin, ex parte . . . 342 V. Chaplin 57, 138, 178, 621, 625 W.Horner 797,798,805,819 Chapman v. Blisset 104, 246, 247 V. Gibson ... 96 Charity Corporation v. Sutton . 290, 545, 846 Chasteney, ex parte . . 833 Ghedworth v. Edwards 337, 756, 758 Chelmsford. (Poor of) v. Mild- may 493 Chertsey Market, iw re . 817,415, 493, 723, 767, 777, 781, 783, 787, 845 Chester v. Piatt . . .635 V. Rolfe . . 517, 774 Chesterfield (Earl of) v. Jansen 471, / 472, 473, 778 Chetham v. Lord Audley . 547 Chichester v. Bickerstaff . . 800 Child 4). Gibson . , .360 V. Stephens ... . 488 PAGE Chion, ex parte . . 274, 754 Bhipping-Sodbury School, in re 783 Chirton's case . . . 673 Chitty V. Parker . . 183, 184 Cholmondeley v. Cholmondeley 168 (The Marquis of) v. Lord Clinton . 618,730,732,733, 737 Christian v. Devereux . . 744 Christophers v. White . . 320 Christ's Hospital v. Budgin 177, 216 V. Grainger . . 23, 717 Christy v. Courtenay 207, 209, 212, 214, 215 Chumley, ex parte . . . 826 Churchill v. Bank of England . 671 V. Dibben . . .645 V. Lady Hobson 241, 291, 310, 313 V. Marks . . .136 City of London v. Garway 182, 183 V. Richmond . . . 851 Clack V. Holland . 329, 729, 764 Clapham (Inhabitants of) v. Hewer . . . .779 Clare v. Earl of Bedford . . 39 Glare v. Ormond . . .699 V. Wood . . . 657 Clark I). Burgh . . .629 V. Cook . . .630 Clarke's Charity, in re . . 781 Clarke v. Danvers . 199, 202, 216 V. Earl of Ormonde . 428 V. Parker V. Pistor V. Swaile V. Turner Clay V. Sharpe V. Willis Clegg V. Edmondson Clerk V. Miller Clerkson v. Bowyer Clifton V. Lombe 533 . 123 464, 471 . 707 . 427 687, 688 . 742 . 633 . 18 . 168 . 637 291, 293, 328, 337, 351, 766 314, 336, 367 . 167 . 490, 491 40, 579 144, 146, 155 . 426 340, 480 . 861 838, 839 729 34©, 596, 766, 774, 775 Cockerell v. Cholmley . 472, 778 Cogan V. Stevens . . . 189 Clinton v. Willes Clough V. Bond V. Dixon Clowdsley v. Pellham Clowes V. Waters . Clutton, ex parte . Coape V. Arnold . 142, Cochrane v. Robinson Cock V. Goodfellow Gockburn v. Thompson Gockell V. Pugh V. Taylor Cocker v. Quayle Ixii TABLE OF CASES. PAOB PASS Coke's case (Sir E.) 646, 673 Cookson V. Cookson . 823, 824 Colchester v. Lowten . & V. Eeay . 806, 816 Cole V. Gibson . 472 Coope V. Carter . 766 V. Moore 615, 723 , 724, 725 Cooper, ex parte . 613 V. Muddle . 771 V. Douglas . 617 ■ . V. Wade 22, 297, 526, 528, 630, V. Fynmore . 605 533, 534 , 680, 712 V. Jones . 893 Colebrooke's (Sir George) case 464, V. Thornton . . 696 473 V. Wyatt . 136, 136 Colegrave v. Manby . 392 Cooper's Trust, in re 191, 193, 808 Coles V. Trecothick 460, 462, 463, Cooth V. Jackson . 205 464 Cope V. Parry . 842 CoUard v. Hare . 730 Copeman v. Gallant 274, 275, 277, CoUett V. Morrison . 137 278 CoUingwood v. Pace . 677 Copper Mining Company v. Beach Collins V. Archer . . 753 425 V. Carey . 320, 549 Copperthwaite v. Tuite . 633 V. Collins 364, 810 Coppin V. Fernyhough 218, 222, 224, V. Reece . 486 384, 397, 398, 729 V. Vining 538, 642 V. Gray . . 634 V. Wakeman 182, 183, 195, Corbett v. Barker . . 733 196 Cordal's case . . 251 Collinson v. CoUinson 209, 214 Corder v. Morgan . . 427 V. Lister 456, 563 Cordwell v. Mackrill . 727, 728 V. Patrick 81,91 Cornbury (Lord) v. Middleton 12, CoUis V. Collis 338, 867 600, 615 Colman v. Sarel . 84, 94, 971 874 Cornish v. Mew . 395 Colmore v. Tyndall . 253 Cornthwaite v. Frith . 481, 482 Colston V. Lilley . 427 Cory V. Gertcken . . 39 Colt V. Colt 12, 621 Coryton v. Helyar . 8 Colwall V. Shadwell 819 Costeker v. Horrox . 867 Commissioners of Charitable Cotham v. West . 517 Donations v. Archbold 710, 711 Cotteen v. Missing . 81, 91 V. Wybrants 441, 443, 722, 726, Cotterell v. Purchase 734 745, 746 , 748, 749 Cottingham v. Shrewsbury . 845 Compton V. Bedford 477, 480 Cottington v. Fletcher 62, 63, 137, V. Collinson . 34, 35 178, 179 V. Compton . . 658 Cotton V. Clark . 877 (Lord) V. Oxenden . . 798 Court V. Jeffery . 458, 849 Congreve, ex parte . . 715 Courtenay v. Courtenay . 583 Coningham v. Mellish . 180 Courthorpe v. Heyman 12, 600 V. Plunkett . . 84 Courtois, in re . 378 ConoUy v. Parsons . 421, 424 Cousen, ex parte . . 276, 714 Consett V. Bell 101, 846 Coventry (Mayor of) v. Coventry 97, Conry v. Caulfield . 325, 845 584 Conyngham v. Conyngham . 243 — ^ V. Atty.-Gen. . . 711 Cook V. Arnham 734, 752 V. Hall . . 751 V. Duckenfield . 180 Covington, in re . 380 V. Fountain . . 173 Cowdery v. Way . 633 V. Fryer . 243 Cowgill V. Lord Oxmantown . 418 V. Gregson . 688 Cowley V. Hartstonge 538, 806, 808 V. Gwavas . 179 Cowman v. Harrison . 171 • V. Hutchinson 177, 180, 181 Cowstad V. Cely . 847 V. Parsons . 513 Cowper V. Earl Cowper . 680 Cooke, ex parCe . 136 Cox V. Barnard . 94, 863 V. Blake . 252 V. Bateman 204, 238, 757 V. Cholmondeley . 218 V. Cox . . 376, 433 i;. Crawford . 237, 265, 266, V. Dolman . 748, 749 528 532, 533 V. Parker 14, 321, 679 V. Stationers' Company ] Cox's case (Sir Charles . 687 182, 190, 193, 194, 195, 197 1 Coysegame, ex parte . 277 TABLE OF CASES. Ixiii Crabb o. Crabb Crabtree v. Bramble PAGE 56, 61 792, 794, 805, 806, 823, 824 Crackelt ». Bethune 357, 359, 362, 876 Cradock v. Piper Craigdallie v. Aikman Crallan v. Oulton . Cramer v. Cramer . Cranch v. Cranch . Crane v. Drake Cranstonn v. Johnston Crawford, ex parte Crawley v. Crawley Crawshay v. Collins Creagh v. Blood Creed v. Covile V. Creed V. Perry Creuze v. Hunter Crewe v. Dicken 320, 550, 655 . 497 . 484 . 890, 904 . 808 455, 456, 459 . 48 . 479 . 118, 808 . 321, 548 16, 232 12, 683 . 236, 847 . 372 . 489 233, 237, 297, 449, 531, 532, 633, 634 Cripps V. Jee . . . 178 Crisp V. Heath . . . 660 V. Spranger . 226, 292, 469 Crispe v. Blake . . .606 Croft V. Adam . . .696 V. Slee . . . 183, 190 Crofton V. Ormsby . . 725 Crofts V. Middleton . . 634 Crompton v. North . . .181 Crook V. Ingoldsby . . . 572 Crooke v. Brooking . . 63, 76, 77 Crop V. Norton . 63, 200, 218 Cropper v. MeUersh . . 855 Crosby v. Church . 636, 640, 645 Crosley v. Archdeacon of Sud- bury 261 Crosse v. Smith . . .296 Crossley v. Crowther . .718 Crouch V. Citizens of Worcester 606, 508 Crowe V. Ballard 460, 470, 472, 473 V. Crisford . . .810 Croyden's Trust . . 380 Crozier v. Crozier . . . 166 Cruse V. Barley 182, 183, 190, 195 Cruwys v. Colman 167, 169, 704, 706 Cuddy V. Waldron . . .857 Cuff V. Hall . . . 416, 527 Cullingworth v. Lloyd . . 486 Culpepper «. Aston 179, 414, 428, 429, 434, 436 Cummins v. Cummins 238, 239, 240, 319 Cunliffe v. Cunliffe . . .168 Cunningham v. Moody 621, 680, 793, 794, 819, 820 Curling v. May . . . 806 Currant v. Jago . . .216 Curre v. Bowyer . . . 655 Currer v. Walkley . Curiie, ex parte Curteis v. Candler . Curtis V. Curtis 621, 622, ■». Lukin . Ill, ». Price . V. Rippon Cusack V. Cnsack . Custance v. Bradshaw V. Cunningham Cuthbert v. Baker . Cutterback v. Smith FAGIi . 435 . 833 . 367 753, 755 112, 597 . 253 169, 171 147 807 179 432 488 43, 677, 678 . 122 . 643 . 278 . 575 . 35 810 725 368, Daok's case (Sir John) Dakins v. Berisford . Dalbiac v. Dalbiac . Dale, ex parte D'Almaine v. Anderson Daniel v. Ubley ». Warren Daniels v. Davison . D'Arcy v. Blake 622, 625, 626, 755 Darcy v. Hall . . .318 Darke v. Martyn . . . 337 Darley v. Darley 97, 121, 122, 123 Daxlington, ex parte . .617 D'Amay v. Chesneau . . 276 Darwell v. Darwell . . 310 Davall V. New River Company 321, 679 Davenport v. Coltman 182, 183, 184 179, V. Stafford Davenport's Charity, re Davers v. Dewes Davey v. Miller David V. Frowd Davidson v. Foley V. Gardner Davies, re V, Ashford V. Austen V. Davies V. Goodhew V. Thornycroft V. Weld . V. Westcomb Davis, ex parte V. Dendy V. Dysart V. Jenkins V. Kirk . V. Prout . V. Spurling 226, 290, 292, 293, 459 V. Strathmore (Earl of) Davy V. Hooper 356 718, 899 196, 197 . 885 . 375 191, 650 . 460, 633 . 895, 901 . 823 . 518 147, 268, 727 . 806, 807 . 128 . 407 . 421 . 575 . 556 . 227 . 498, 779 . 680 . 121 V. Pepys V. Seys . Dawson t>. Clarke 672 700 . 646 . 873 179, 180, 181, 197, 317, 557 Ixiv TABLE OF CASES. PAGE PASE Dawson v. Hearu . . 597 Doe V. Ball . . 478 V. Massey . 359 V. Barrell . 667 Day V. Croft . . 557, 870 V. Barthrop . 253 Dean v. Allen . 426 V. Bennett . 264 Dearden, in re . 836 «>. Biggs . . 249 Dearie v. Hall . 605, 607 V. Bolton . 252 De Clifford, in re . . 836 V. Cadogan . 258 Deerhurst (Lord) v. Duke of V. Cafe . 141, 253, 254, 259 St. Albans . . 163 V. Claridge, . . 247 Deeth v. Hale . 597, 819 V. Cockell . 106, 107 Deg V. Deg 63, 204, 206, 238, 757 V. Danvers 61, 617 Degg's case . 828 V. Edlin . . 247 Delaue v. Delane . . 207 V. Bwart . 252 Delauney v. Barker . 274, 275 V. Field . . 247 Deloraine (Lord) v. Browne 732, 734, V. Godwin . 301, 419 735, 738 V. Greenhill . . 665 De Manneville v. Crompton . 543 V. Harris 182, 233, 236, 237, Dennis v. Badd . 227, 830 243 Denton v. Davies . 64, 757, 762, V. Hawkins . . 505 764 V. Hawthorn . . 132 V. Denton . 589, 592 V. Hicks . 253 Deptford (Churchwardens of) ■ V. Hiley . 106, 107 V. Sketchley . 106, 107 V. Homfray . 247, 250 Derbishire v. Home 633, 765, 775, V. Hughes 441, 442, 444, 445, 778 447 Devenish v. Baines 60, 71 V. Ironmonger . 254 Devey v. Peace . 575 V. Jones . 498, 590 V. Thornton . 367, 595, 876 V. Keen . . 753 Devon v. Watts . 477, 480 V. Lea . 251, 255 Dew V. Clarke . 834 V. Lightfoot . . 265 Dewdney, ex parte . . 731 V. M'Kaeg _ . 498, 590 Dibbs V. Goren . 373 V. Munro . 132 Dickenson v. Dickenson . 420, 430 V. Nicholls 249, 253 Dickinson v. Shaw . . 211 V. Norton . 717 Dickonson v. Player . 340 V. Passingham . 247 Dickson, re. . . 558, 662 V. Phillips . 686, 748 Digby V. Howard . 643 ^«. Pott . . 591 V. Irvine 635, 666, 669 V. Pratt . . 250 V. Langworth . . 602 V. Price . . 288 V. Legard . 182, 183 V. Roe 527, 580 Dike V. Ricks . 429 V. Rusham . 93 Dillon V. Coppin . 81, 84, 94 V. Shotter . 250 V. PlaskeU . 662 V. Simpson 250, 25 1, 254, 259 Dimes v. Scott 291, 353, 815 V. Smyth . 236 Dimsdale v. Dimsdale . 94 V. Sotheron . 252 Dinwiddle v. Bailey . 753 V. Staple 590, 691 Disher v. Disher . 797 V. Sybourn . 591 Dix V. Burford . 243 V. Terry . 106, 107 Dixon V. Olmius 71, 122 V. Thompson . . 45 V. Dawson . 181 V. Underdown . 195 V. Gay fere 745, 816, 823 V. Willan . 256 V. Saville . 621, 625 V. Woodhouse . 250 Dobson V. Carpenter . 426 V. Wroot . 591 V. Land . 319, 332, 516 Dolder v. Bank of Englanc 1 . 865 Docker v. Somes 318, 319, 321, 361, Dollond V, Johnson . 689 362 Dolman v. Pritman . 489 Docksey v. Docksey . 181 Dolton V. Hewen . 435 Dod V. Dod . . 147 • ~v. Young . 444 Dodson V. Hay 154, 156, 621, 622, Dommett v. Bedford . 136 793 Donaldson v. Donaldson . 81,91 Doe V. Amey . . 667 Donne v. Hart 26, 629 TABLE OF CASES. Ixv FASE Donohoe v. Conrahy . . 65 Doody V. Higgins . . . 856 Doolan «. Blake . . .632 Doran v. Wiltshire . . 433, 435 Dorchester (Lord) v. Earl of Effingham . . .332 Dormer's case . . 826, 827 V. Fortescue, 409, 761, 752, 763 754, 755, 766 Dornford v. Dornford, 358, 359, 364, 766, 771, 772 Douglas 1). Allen V. Browne V. Congreve v. Horsfall Dove V. Everard 484 . 290 . 816 . 844 235, 242 Dovenby Hospital, in. re . . 782 Dover, ex parte . 243, 838, 880 Dowling ». Belton . . .830 V. Hudson . . . 434 Dowling V. Maguire 632, 634, 635 Downe (Viscount) «. Morris, 14,18, 283, 285, 322 Dovyns v. Thomas . . . 860 V. Worrall . . . 700 DovsTies V. Grazebrook, 414, 461, 463, 464 Downing v. Townsend . . 95 Dowtie's case .... 676 Doyle V. Blake, 232, 240, 289, 292, 310,311, 313, 366 Doyley v. Attorney-General . 297, 533, 534, 696, 700, 704, 712 Doyly V. Sherratt . . .298 Drake v. Whitmore . . 417 Drakeford v. Wilks . . 70 Drakeley's Trust, in re . . 118 Drant v. Vause . . .808 Drayson v. Pocock . 414, 460, 712 Drewr V. Harman . . . 842 Drever v. Mawdesley . . 641 Drohan v. Drohan . . 456, 522 Drosier v. Brereton . 82, 345, 350 Drummond v. Duke of St. Al ban's 751, 756 Drury v. Scott . . .642 Duberly v. Day . . 26, 629 Dubless V. Flint . . 864, 866 Dubois, ex parte . . . 269 Dudgeon v. Cormley . . 858 Dudley (Lord) v. Lady Dudley 794 Du Hourmelin v. Sheldon 43, 807 Dumas, ex parte . . 274, 276 Dummer v. Corporation of Chip- penham .... 31 Dumoncel v. Dumoncel, 43, 132, 621 Dunbar v. Tredennick, 466, 469,470, 472, 473, 725 Duncan v. Chamberlayne . 613 Dunch V. Kent 318, 428, 436, 486 Duncombe v. Mayer . . 592 Duncombe v. Nelson Dundas v. Blake V. Dutens Dunkley v. Dunkley Dunman, ex parte . Dunnage v. White . Dunne v. Dunne Dunster v. Glengal Durour v. Mottenx . Dutton V. Morrison 476, Dyer v. Dyer •. 200, 207, PAQE . 617 . 746 . 648 369, 370 . 422 . 181 . 614 . 608 196, 197 477, 478, 479 209, 211, 212, 213 Bade v. Bade . . 167, 169, 171 Bales V. England . 167, 169, 283 Earlom u. Saunders . 792, 796, 806, 816 Bast V. Ryall . . . 506, 876 Bast Greenstead's case . . 726 East India Company v. Hench- man 225 Eaton V. Smith . . . 531 Bbrand v. Dancer . . 200, 216 Eccleston v. Skelmersdale . 846 Eckhardt v. Wilson . 477, 479 Eddleston v. Collins . . 36 Bden v. Poster . 492, 493, 499 Bdenborough v. Archbishop of Canterbury 107, 109, 1 10, 777, 874 Edmonds v. Dennington . . 631 V. Peake . . . 427 Edwards v. Fashion . . 202 V. Freeman ... 20 V. Graves ... 19 • V. Harvey . . 421, 872 V. Jones . . 81, 88 V. Lewis . . . 220 V. Morgan . . 751, 756 V. Pike . . .80, 205 V. Tuck . . . 118, 119 ■ V. Countess of Warwick . 797, 806, 806, 820, 822, 824 Eidsforth v. Armstead, 441, 446, 447 Bland v. Eland 435, 436, 437, 444, 456, 458 Blborne v. Goode . . 116, 118 Bldridge v. Knott . . . 735 Blibank (Lady) v. Montolieu . 628 BUerthorpe, in re . . . 883 EUice, ex parte . . . 343 Elliot V. Brown . . . 202 V. Edwards . . . 725 V. Elliot 177, 207, 211, 214, 215 V. Merriman 435, 441, 444 455, 738 Ellis, ex parte Ellis V. Atkinson V. Maxwell V. Nimmo 274 123 . 116 . 96, 97, 99 e Ixvi TABLE Off CASES. PAGE PAOB Ellis V. Selby . , . 182 Faulkner v. Elger . . .109 Ellison V. Airey . 551 Fauntleroy, in re . . . 713 i>. Ellison 81, 84, 89, 99 Fawcet v. Lowther . . 680 ■ V. Elwin . 628 Fawcett v. Whitehouse . . 225 Ellison's Trust, in re , 236, 895 Fearns v. Young . . 558, 808 Elliston, e^joar^e . . 277 Fearon v. Webb . . 107, 108 Elmsley v. Young . . 707 Featherstonhaugh v. Fenwick 218, Else V. Osborn . 407 220 Elsee, ex parte . 567 Fell V. Brown . . .849 Eltham (Inhabitants of) V. V. Lutwidge . . . 875 Warreyn 198, 506 Fellowes u. Till . . .839 Elton V. Harrison . . 444 V. Mitchell 304, 305, 337, 774 Eniblyn v. Freeman . 182 Fellows's Settlement, in re 897, 901 Emelie v. Emelie . . 341 Feltham's Trusts, in re. . 380 Emmett v. Dewhurst . 486 Fenniliteau, ex parte . . 835 Emuss V. Smith , . 808 Fenwick v. Greenwell . 700, 765 England (Bank of) v. Lunr I 32, 33 Feoffees of Heriot's Hospital u. V. Moffat 32,33 Boss . . . 567, 561 V. Parsons 32,33 Fergus (Executors of) v. Gore . 484 England (Mary), in rt . . 408 Ferguson v. Livingstone . . 734 ■ V. Downs 131, 244 V. Tadman . . .174 Entwistle v. Marklant I .' . 813 Ferraby «. Hobson . 606, 506 Erskine's Trust, in re . 380 Fernie i>. Maguire . . .331 Bstwick V. Caillaud, 474", 475, 476, Ferrars v. Cherry . . 725, 726 477 , 480, 648 Fettiplace v. Gorges . . 642 Etty V. Bridges 608 ,611 , 614, 863 Fidgeon w. Sharp . . . 480 Evans v. Bagwell . 482, 483 Field's Trust, in re. . . 381 ■ V. Bicknell J 692, 776 Mortgage . . . 265 ■ V. Brown 14, 18, 285 Field ex parte . . . 860 V. Coventry . 870 V. Dononghmore 367, 486, 595 - — - V. Hellier 114 117,119 K. Evans . . .123 V. Jackson , 416, 523 V. Lonsdale . . . 101 • V. John . . 241 V. Sowle 634, 635, 640, 641 V. Stokes . 852 Finch's case (Sir Moyle) 4, 9, 16, V. Tweedy , . 486 18, 56, 287 Evelyn «. Forster . 835, 839 Finch V. Finch 200, 207, 209, 215 V. Templar 93, 34, 97, 99 V. Earl of Winchelsea 99, 174, Everett, in re . , . 377 279, 280 V. Prythergch . . 870 V. Hollingsworlh . 701, 704 Evroy v. Nicholas . . 39 Finden «. Stephens . . 102 Ewer V. Corbet 455 456, 458 Finlay v. Howard . .710 Exel V. Wallace . . 145 Fishbourne, in re . . 461 Eyre's case . 820 Fish V. Klein ... 39 Eyre v. Dolphin 218 220, 224 Fitch V. Weber . . 182, 184 V. Marsden 118 119, 183 Fitigerald, in re . . 683, 713 V. Countess of Shaftesbury, 299, K.Fitzgerald . . .631 300, 536 V. Jervoise . 415, 792, 816 V. O'Flaherty . . 876 V. Pringle . . 341, 877 Fabg's Trust, in re . 380, 677 Fitzgibbon v. Blake . 634, 642 Fain v. Ayers . 227 Fitzroy v. Howard . . . 384 Falkland, Lord v. Bertie . 753 Flack's settlement, in re . . 378 Falkner ?). Lord Wynford . 700 Flanagan v. S'lanagan . . 177 Fane v. Fane . 59,61 V. Nolan . . 366, 876, 877 Parquharson v. Seton . 845 Flanders v. Clark . . 536, 696 Farr v. Newman 261, 262, 274, Flemming «. Page . . .725 278 Fletcher ex parte . . . 381 V. Sheriffe 857, 868 V. Ashburner . 177, 183, 793, Farrar v. Winterton . 666 819 Farrell v. Smith . . 375 V. Chapman . . .189 Farrington v Knightly . 19 V. Fletcher . 81, 94, 719 TABLE OF CASES. Ixvii . 794 . 93 375, 426 . 333 . 184 . 893 877, 979 . 849 152, 161, 163, 261,280,718 . 731, 732 . 167 301, 419, 497, 498, 527, 580 . 623 . 488, 489 . 792, 796 . 477 . 662 . 167, 706 430, 434, 435, 437, 440, 441, 442, 446, 453, 458 V. Ross . 339, 359, 361, 365 Fletcher v. Eobinson V. Sidley V. Stevenson V. Walker Flint V. Warren Flitcroft, in re Fogin V. Andrews Foley, em parte V. Burnell V. Hill . V. Parry V. Wontner FoUettD.Tyrer Foly's case Foone v. Blount Foord ex parte Footner v. Sturgis Forbes v. Ball V. Peacock Ford V. Hopkins V. Ryan . V. White Ford's Charity, in re Forder v. Wade Fordham v. Wallis . Fordyce v. Bridges . V. Willis . 758 331, 433, 453 . 729 . 785 . 621,751 . 373 . 533, 712 25, 66, 57, 69, 61, 267 Forrest v. Elwes Forshaw v. Higginson . 583, 584 Forster v. Hale 61, 62, 63, 64, 66 Fortescue v. Bamett . . 86 Forth V. Duke of Norfolk . 660, 653, 655, 665 Fosbrooke v. Balguy . 217, 225, 318, 319 Foster v. Blackstone . 606, 608, 612, 660, 663, 656 . 592 . 608 174 . 369 . 692 . 734 . 97 . 650 . 559 . 43 . 671 643, 644 . 181 . 346 . 791 . 136 .277 V. Crabb V. Cockerell V. Deacon ■ V. Foster V. Handley V. Hodgson Fothergill v. Fothergill V. Kendrick Fountaine v. Pellett Fourdrin v. Gowdey Fowler V. Churchill ». Fowler V. Garlike V. Reynall Fowlser, ex parte . Fox V. Bishop of Chester . V. Fisher PASE Foxall, inre . . . . 713 Fozard's Trust, in re . 379, 816 Fozier v. Andrews . . 877, 879 France v. Woods . . . 332 Francis v, Francis . . 345, 561 Francis v. Grover . . . 746 Francis v. Wigsell . . 635, 640 Franco v. Franco . 317, 629, 851 Frank W.Frank . . .816 Franklin v. The Bank of Eng- land 32 V. Frith ;. 351, 359, 875, 878 • V. Green . . . 619 Franklyn, ex parte . . . 343 Franks v. Price . . . 157 Fraser v. Palmer . . 320, 649 Frazer v. Moor . . . 734 Freake v. Cranefeldt . . 486 Frederick v. Aynscombe . 796 V. Frederick . . .806 Freeman v. Fairlie 547, 699, 864, 867 V. Tatham ... 64 V. Taylor . . .650 Freemoult v. Dedire . 174, 488 Freme v. Woods . . .332 Fremington School, in re . 781 French, ex parte ' . . . 348 V. Baron . . . 546 V. Davidson . 638, 539, 543 V. Hobson . . . 777 Frewin v. Charleton . . 409 Friendly Society, ex parte . 783 Frost's Settlement, in re . 895 Fulham, in re V. Jones . Fuller V. Knight V. Lance Fussell V. Elwin Fulton V. Gilmour . Fursaker v. Robinson Fust, ex parte Futter V. Jackson . . 901 . 796 349, 415, 771 . 476 . 854 . 374 . 94 . 343 . 867 Fyler v. Fyler Fyson v. Pole 226, 358, 562, 766, 774 . 734 V. Mackreth . 460, 469, 473 Gaffee, in re ... 131 Gainsborough v. Gainsborough 181 Gale V. Pitt . . . .356 V. Williamson . . 477 Galliers v. Moss . . . 264 Galway v. Butler . . . 857 Gannon v. White ... 89 Gardiner v. Fell . 62, 753, 764 Gardner v. Marshall . . 370 ■ V. Rowe ... 63 Garey v. Whittingham . . 858 Garfoot v. Garfoot . . . 173 Garland, ex parte . . .273 e 2 Ixviii TABLE or CASES. PAGE Garrard v. Lauderdale 81, 84, 99, 101, 476, 482, 483 V. Tuck Garrat v. Cullum Garratt v. Lancefield Garrett v. Noble V. Wilkinson . Garth v. Baldwin ' V. Cotton Gascoigne v. Thwing Gaskell v. Gaskell . V. Harman ■ V. Holmes Gaston v. Frankum Gaunt V. Taylor Gayner's case . Geary v. Bearcroft Geaves, ex parte Gennys, ex parte Gent V. Harris George v. Ba;nk of England V. Howard Gibbons v. Baddall . Gibbs V. Glamis V. Herring V. Ougier «. Rumsey Gibson v. Bott V. Jeyes . V. Lord Montford K. Rogers ■ V. Winter 586, 590, 748 . 275 . 426 . 415 . 216 141, 142, 247 156, 408, 753 . 204, 205 . 100 . 792 . 368 . 634 . 857, 868 . 477 57, 260, 590 . 277, 772 . 274, 276 369, 370 . 61 . 179 . 725 . 482 . 313 . 183 181, 182, 183, 195 . 814, 815 460, 461, 463 . 261 . 616 . 269 PAOE Godfrey v. Watson . . 566, 657 Godolphin v. Godolphin 34, 525, 526 Giddings v. Giddin;:s 218, 220, 221, 223, 224, 225, 397 39S Gifford V. Hort . . 733 V. Manley . . .238 Gilchrist v. Cator . . .370 Giles V. Dyson . . . 557 Gill V. Attorney-General . 314 Gillam, ex parte . . . 833 Gillespie v. Alexander . . 375 Gillett V. Peppercorn . . 226 Gillibrand v. Goold . 421, 430 Gillies V. Longlands 818, 819, 823 Girling v. Lee . . . 488 Gladding v. Yapp . . .182 Gladden v. Stoneman . . 870 Gladstone v. Hadwen . . 274 Glaister v. Hewer . . .216 Glass V. Oxenham . . . 847 Glenorchy (Lord) v. Bosville 141, 144, 164 Glover v. Monckton . 251, 256 V. Strothoff ... 53 Glynn v. Lock . . 330, 433 Gobe V. The Earl of Carlisle . 18 Goddard, in re . . .836 Goddard v. Macaulay . 836, 881 Godden v. Crowhurst . . 134 Godfrey «). Dixon . . 43,132 - — V. Furzo . . . .274 Godsall V. Webb Godwin v. Winsmore Goffe V. Whalley . Golding V. Yapp Goldsmid v. Stonehewer . Gomley v. Wood Goode V. West Goodenough v. Goodenough V, Tremamondo Goodere v. Lloyd . Goodrick v. Brown . Goodright v. Hodges • V. Opie . V. Wells Goodson V. EUisson 91 621, 622 . 684 59, 69 . 855 549, 550 376, 377 . 755 .. 810 . 181 . 602, 604 60, 199, 203, 205, 207 . 195 15, 16, 61, 591 367, 595, 600, 850 . 691 . 262 251, 255 . 763 . 832 . 97 . 668 836, 837 238, 648, 663 209, 212, 216 . 621 12, 600 . 94, 97, 99 . 113 Goodtitle v. Jones . V. Layman V. Whitby Goodwin v. Gosnell V. Lister Gordon v. Gordon . V. Trail . > . Gore's Charity, in re V. Bowser Gorge's (Lady) case V, Chansey Guring v. Bickerstaff «. Nash . Gorst V. Lowndes . Gosling V. Carter 435, 441, 442, 444, 446, 447 V. Dorney . . . 487 Goss V. Neale . . 474, 475 Gough V. Birch . . . 458 V. Bull . . . 729, 748 Gould V. Fleetwood . 545, 653 Gouldswoith V. Knight . 107, 299 Governess's Institution v. Rus- bridger Gover, ex parte Gower v. Eyre V. Grosvenor , V. Main waring Gowland v. De Faria Grace, ex parte Graham v. Birkenhead V. Fitch . V. Lord Londonderiy Grange v. Tiving Grant v. Lynam V. Mills . Gravenor v. Hallum Graves v. Dolphin . Gray, ex parte V. Chaplin V. Gray . 424 614 144, 150, 158 22, 626, 697, 699 . 738 . 218 737, 775 . 633 386, 395 36, 36, 37 . 705 276, 725 . 194 132, 133 . 269 . 852 . 83 TABLE OF CASES. Ixix Gray v. Haig . Greatley v. Noble Greaves v. Powell Greedy v. Lavender Green, ex parte — — - V. Ekins . — — V. H olden V. Hovifard V. Jackson V. Marsden V. Pledger V. Rutherforth 10, V. Spicer . V. Stephens Greenfell v. Girdlestone Greenhill v. Greenhill Greenhouse, ex parte Greening v. Beckford Greenwell v. Greenwell Greenwood v. Churchill V. Bvans . V. Taylor V. Wakeford Gregory v. Gregory PAGE . 599 634, 639, 756 . 487 . 628 269, 517 . 148 . 836 699, 707 . 197 170, 171 . 866 31, 492, 494 132, 133 158, 796 736, 737 615, 616 496, 711 . 613 . 520 . 478 387, 390, 391, 400, 401 . 486 583, 684, 768 306, 306, 310, 462, 470, 471 . 246, 248 . 642 V. Henderson . ' — — V. Lockyer Greisley w. Chesterfield (Earl of) 813 Grenville (Lord) v. Blyth . 279 Greswold v. Marsham . . 660 Grey i;. Colville . 12,682,689 V. Grey 177, 200, 207, 210, 211, 212, 213, 214 Grierson v. Eyre . . 753 Grieshach v. Freemantle . 823, 824 Grieveson v. Kirksopp . 696, 701, 704, 807, 808 Griffin, ex parte 294, 298, 332, 357 V. Griffin . 217,220 Griffith V. Evans 168, 170 V. Buckle , .147 V. Ricketts . 807 Griffiths V. Vere 114, 117 Grigby V. Cox 632 Grimstone, ex parte 825, 826, 827, 830 Grogan v. Cooke 648, 649 GrooniB. Booth . 851 Grosvenor 1). Carlw light . . 360 Groves v. Groves 138, 200, 204, 205, 207 Gubhins v. Creed . . 318 Qade V. Worthington . 543, 696 Guiberts' Trust , . 577 Guidot V. Guidot 792 . 796, 806 Gurner, ex parte 357, 772 Guthrie v. Crossley . . 480 Gwilliams v. Rowel . 173, 300 Haberdasher's Company v. At- torney General . Habergham v. Vincent Hackett v. M'Namara Hadley, in re . Hagger, ex parte Halcott V. Markant . Haldenby v. Spofforth Hale V. Allnutt V. Lamb Haley v. Bannister . Halford v. Stains Hall, in re V. Austin V. Coventry ■ V. Dewes ■ V. Hallett . 876 17,66, 69, 181 . 416 . 572, 895 . 838 204, 206, 206 . 416 . 480 94, 97, 221 . 114, 118 118, 120, 177 . 763 . 864 . 752 301, 528 46, 358, 359, 361, 460, 465, 469, 470, 873 V. Hugonin . . . 372 V. Jones . . . 300 V. Laver . . . 101, 561 V. Noyes . . 461, 470 Hall's Charity, 2» j-e . . 781 Halliburton v. Leslie . ■ 36 Halliday v. Hudson . 179, 181 Hamer's Devisees . . . 285 Ham's Trust . . .380 Hamilton v. Ball . . .138 ■ V. Fry . . . 582, 683 V. Grant . . . .731 V. Handcock . . . 833 V. Houghton . . 488, 489 V. Mainwaring . . 131 V. Wright . . -318 Hamond v. Hicks . . . 729 Hampshire v. Bradley . . 875 Hampton v. Spencer . 63, 64 Hanbury v. Kirkland 306, 317, 361 Hancom v. Allen . . 341, 361 Hancox, ex parte . . . 716 Handcock ( v.) . . 833 Handick v. Wilkes . . . 147 Hands v. Hands . .701, 704 Hankey v. Garret . . 369, 361 V. Hammond . . . 273 Hanman v. Riley . . 485, 855 Hanne v. Stevens , . . 849 Hanson v. Beverley . . 451, 523 V. Keatin . . 26, 629 Hanson, ex parte . . . 277 Harbert's case . . . 646, 669 Harcourt v. Seymour . 816, 824 Harden v. Parsons 304, 306, 310, 314, 332, 337,776 Hardey v. Hawkshaw i . . 807 Harding v. Glyn 167, 696, 701, 703, 704, 706 V. Hardrett . . 284, 726 Hardman ex parte . . .715 V. Johnson . . . 225 Ixx TABLE OF CASES. FASE Hardwick v. Mynd 290, 422, 434, 447, 449, 471, 529, 633, 738 Hardwicke (Lord)a.' "/^ernon 466, 469, 699 Hardy v. Reeves Harford v. Furrier Haigrave v. Tindall Hargreaves v. Michell Hargthorpe v. Milforth Harland v. Binka «. Trigg . Harley v. Harley Harman v. Fisher . Harmood v. Oglander Harnard v. Webster Harnett v. Macdougal V. Maitland Harris' Tnist, in re , ■ V. Booker V. Davison V. Horwell V. Mott . V. Poyner V. Pugh . Harrison v. Borwell in re —^ V. Cage , V. Coppard V. Duignan V. Forth . V. Graham V. Harrison V. HoUins V. Naylor V. Pryse . V. Stewardson Harrop v. Howard Hartnall, in re Harte ». French V. Middlehurst Hart V. Tribe .... Hartford, in re . . . Hartga v. The Bank of England Hartley v. Hurle Harton v, Harton Hartop V. Hoare Haitshorn v. Slodden Hartwell v. Chitters Harvey v. Audland . V. Harvey . 694, 811, 851 Harwood v. Wrayman . . 685 Hasell, ex parte . . . 730 Hassell v. Simpson . . . 477 Hathorntwaithte v. Russell . 871 Havers v. Havers . . 870, 871 Hawker v. Hawker . . 251, 256 Hawkins v. Chappell . 318, 415 V. Gardner . . .61 728, 734 . 174 . 488 484, 729 . 310 476, 483 168, 169 . 627 . 480 16, 735, 751, 756 . 766 . 130 . 514 . 379 . 665 . 656 • 70 633, 646 . 810 247, 665 . 735 . 252 . 428 . 227 . 746 . 726 235,241,290, 291, 305, 310 . 356 . 733 . 153, 166 . 372, g46 . 843,852 . 130 . 891, 906 . 713 . 149 . 168 . 713 32 122 247, 265 . 275 . 480 . 687 . 94 121, 386, 517, Hawkins v. Kemp , V. Lawse V. Luscombe V. Obeen Hay V. Bowen Hayes v. Kingdoms Hayford v. Benlows Hays, ex parte Hayton v. Wolf Haytor f .' Rod Haywood v. Ovey . Head v. Lord Teynham Heap V. ToDge Heardson v. Williamson Hearle v. Greenbank PAGE 237, 449, 532 . 685 . 265 . 832 . 368 177, 201, 210 . 189 . 617 . 234 . 805 . 848 596, 848 . 94 . 256 34, 35, 36, 526, 623, 624 Hazeldine, in re . . . 895 Heath, in the matter of . . 714 V. Henley . . .729 ■ V. Percival . . . 847 Heathcote v. Hulme 359, 361, 363 Heatley v. Thomas Heaton, ex parte V. Marriott Heenan v. Berry Heighington v. Grant Hemming, ex pa/rte Henchman v. ral Henderson v, M'lver Henley v. Stone V. Philips V. Webb . Hennessey, ex parte Herbert, ex parte . Hercy v. Ballard V. Dinwoody Hereford v. Ravenhill Heron v. Heron Hertford (Borough of) v. of same Borough (Marquis of) in re Hethersell «. Hales Hewett V. Hewett . V. Foster Hewitt V. Wright . V. Morris Hey's Will, in re . Hibbard v. Lanibe Hibbert v. Cooke V. Hibbert Hichens v. Congreve Hiohens v. Kelly Hickling v. Boyer . Hicks V. Hicks V. Sallitt Hickson v. Fitzgerald Hide V. Heywood Higgiiison «. Barneby 633, 634, 640 . 772 . 304 . 745 363, 876 . 380 Attorney-Gene- 194, 198, 325, 796 667 . 842 . 877 817, 821, 823 . 609, 610, 612, 613 . 277' . 761, 766 471, 738, 739 . 189, 806 . 204, 206 Poor 878 860, 864 . 559 . 629, 696 315, 316, 876 . 184 . 814 . 893 22, 531, 533, 636, 710, 712 . 614 . 101 225, 861 . 842 . 426 369, 361, 777 . 753, 764 . 234, 874 . 557, 875 165 TABLE OF CASES. Ixxi Higginson v. Kelly - Highway v. Banner . Higinbotham v. Holme Hilchina v. Hilchins Hill, ex parte . V. Buckley V. Cock . V. Edmonds . V. Gomme V. Hill . V. Bishop of London ■ V. Magan ' V. Simpson pAaB . 136 148, 604 . 136 . 251 . 136 . 415 . 183 . 630 . 765 164, 165 172, 180, 269, 318 560, 872 455, 456, 457, 459 736, 738 359, 361 . 707 420, 630 . 167 867, 869 . 39 . 135 260, 276, 279 , 811 734, Hillary v. Waller Hilliard, in re Hinckley v. Maolarens Hind V. Poole . Hindle v. Taylor Hinde v. Blake Hindmarsh v. Southgate Hinton, ex parte V. Hinton Hinves v. Hinves Hitch V. Leworthy Hixon V. Wytham Hoare v. Parker 1!. Peck . Hobart v. Countess of Suffolk Hobby V. Collins Hobson V. Bell V. Trevor «. Staneer Hockley v. Bantock V. Mawbey Hodge V. Attorney-General V. Churchwood Hodges, in re . V. Blagrave Hodgeson v. Bussey Hodgkinson v. Cooper Hodgson, ex parte . Hodgson, in re V. Hodgson Hodle V. Healey Hodsden v. Lloyd . Hodson's settlement Holder v. Darbin . 296 487 594 735 179 . 818 423, 612 . 751 . 842 341, 356 . 700 . 30 . 746 . 378 . 426 . 149 . 224 . 136 . 380 . 605 . 734 . 261 . 895 . 713 Holdernesse v. Carmarthen 820, 821 Holford V. Phipps . . .695 Holgate V. Haworth . 359, 879 Holland's case 19, 20, 30, 629, 677, 678 V. Baker . 843, 844, 851 V. Hughes 351, 353, 355, 792 Holliday v. Overton " . . 141 Hollingsworth v. Shakeshaft . 359 HoUis's case (Lord) . . 729 HoUoway's case . . 28, 287 Holloway v. Headington . 94, 99 PAGE Holloway v. Radcliffe . . 819 Holmes «. Bell . . .849 V. Coghill ... 97 V. Dring . . 337, 338 V. Moore . . .338 Holt, ex parte . . .772 v. Holt . . 217, 222 Homan v. Hague . . . 867 Honner v. Morton . . .627 Honnor's Trust . . . 604 Honor v. Honor . . . 148 Hood V. Clapham . . . 810 V. Hall . . . .836 Hooke V. Kinnear . . . 844 Hooper v. Eyles . . . 204 V. Goodwin . . . 183 V. Smith . . 477, 480 Hope V. Corporation of GIou- V. Liddeli 263, 451, 765, 776 Hopkins v. Hopkins 8, 104, 144, 156, 181, 247, 619 V. Myall . . .596 Hopkinson v. Roe . . , 657 Horde v. Earl of Suffolk . . 642 Hore V. Beecher . . . 631 Horn V. Horn . 435, 436, 648 Home V. Barton 156, 165, 166, 167 Horner v. Wheelwright . . 590 Horrocks v. Ledsam . 848, 872 Horsfall, in, re . . . 264 Horsley v. Chaloner V. Fawcett Horwood, ex parte . V. West Hoskins v. Nicholls Houell V. Barnes Hough's will, in re Hougham v. Sandys Houghton, ex parte V. Koenig House V. Way Hovenden v. Lord Annesley 30, 719, 730, 732, 734, 735, 739 Hovey v. Blakeman 124, 312, 314, 277, 168, 332 851 278 171 867 630 250 681 199, 200, 203 274 808 How V. Godfrey 21. Kennett V. Whitfield Howard's Estate, in ?). Digby «. Ducane V. Hooker V. Jemmet V. Papera V. Rhodes Howe V. Earl of re 315 645, 646, 657 . 474 . 529 . 884 643, 644 . 462 . 631 274, 758 870, 871 . 683 Dartmouth 330, 342, 351, 353, 355, 768, 808, 809 V. Howe . . . 199, 202 Howel V. Howel . . 148, 149 Howell «. Howell . . . 752 Ixxii TABLE OF CASES. PAGE HoTTse V. Chapman . .183 Hoy V. Master . . 170, 172 Huddlestone v. Whelpdale . 402 Hudson V. Hudson . . 300, 316 Huet V. Fletcher . . .739 Hughes, ex parte 462, 464, 465, 466, 468, 469, 473 V. Evans . . .180 U.Kelly . . .746 V. Key . . . 851, 857 V. Lumley . . .672 «. Stubbs . . 83, 100 V. Wells . . 640, 775 V. Wynne . . 484, 491 Hughson V. Cookson . . 850 Hulkes V. Barrow . . . 384 V. Day . . . .670 Hulme V. Hulme . . . 574 V. Tenant 123, 632, 634, 641 Humberstone v. Chase . 32, 845 Humble v. Bill 435, 454, 455, 459 Hume V. Edwards . . . 797 Humphreston's case . 36, 37 Humphry's estate, in re . 895 Humphrey v. Morse . . 873 Humph erey v. Richards . . 642 Humphreys v. Hollis . . 844 Hun^ate v. Hungate . , 200 Hungerford v. Eaile . . 476 Hunt V. Baker . . .131 V. Bateman . . . 747 V. Coles . . . .665 Huntingdon (Earl of) v. Countess Hunton v. Davies . Hurly, ex parte Husband v. Pollard Huskisson v. Bridge Hussey V. Grills V. Markham . Hutcheon v. Mannington Hutcheson v. Hammond The . 721 . 739 . 422 . 94 . 171 615, 617 . 233 . 816 182, 195, 196, 613, 517 Hutchins v. Lee . 61, 177, 178 Hutchinson v. Hutchinson 526, 704 • V. Massareene V. Morritt V. Stephens V. Townsend Hutton V. Sandys ■ V. Simpson Hylton V. Hylton Hyne v. Redington Hynshaw v. Morpeth Corpora- tion 428 . 318 838, 888 . 850 . 605 . 754 . 777 341, 342 198 Ibbetson v. Ibbetson . . 161 Inchiquin v. French . . 77 Incledon v. Northcote . 629, 631 Incorporated Society v. Rich- , ards . . . . 749, 786 Inge, ex parte . . 494, 495 Inglefield v. Coghlan . . 122 Ingliss V. Grant . 474, 479 Ingram, in re . , . . 381 Inkersole, ex parte . . . 715 Inwood V. Twyne . 513, 823, 829 Irwin V. Rogers . . . 878 Isaac V. Defriez . . . 706 Isaacs V. Weatherstone . . 869 Isald V. Fitzgerald . . .224 Ithell u. Beane . . .435 Jackson's case . . . » 725 Jackson v. Gamett . . . 476 V. Haworth . . .633 u. Hobhouse . . . 123 V. Hurlock . . 190, 194 V. Jackson . . 202, 351 V. Kelly . . . .197 u. Milfield . . .839 V Welsh . . 218, 224 V. WooUey ... 524 Jacob J). Lucas . 301,326,768 V. Shepperd . . . 480 Jacobs V. Amyatt . . . 122 Jacomb v. Harwood . . 316 James, ex parte 460, 461, 462, 464, 465, 466, 467, 468, 469, 470, 560 V. Dean 218, 219, 220, 222, 224 V. Frearson 237, 241, 243, 244 Janaway, in re . . . 832 Jarman v. Wooloton . . 277 Jebb V. Abbott . . .435 Jeffereys v. Small . . .202 Jefferies v. Harrison . . 873 Jefferys v. Jefferys . . 94, 99 Jenkins v. Hiles . . . 441 V. Jenkins . . . 250 V. Milford . . 588, 591 V. Perry . . 489, 490 Jenkyn v. Vaughan . . 93 Jenner v. Tracy . . . 734 Jennings v. Selleck . 177, 216 Jerdon v. Foster . . . 832 Jervoise, in re . . . 377 V. The Duke of Northumber- land 141, 142, 144, 145, 154, 158 Jesse V. Bennett . . . 854 Jessopp V. Watson . . 183, 184 Jesus College v. Bloome . . 753 Jevon V. Bush . . 20, 521 Jewson V. Moulson . . . 629 Johnes u. Lockhart . . 122 Johnson, ex parte . . 343, 835 V. Arnold . . 806, 807 V. Ball .... 68 V. Freeth . . .128 TABLE OF CASES. Ixxiii Johnson v. Holdsworth V. Johnson V. Kennett PASE 52, 672 184, 808 434, 435, 436, 437, 439, 444 . 93 . 731 . 558 . 361 . 336 . 172 . 419 . 642 . 372 . ,319 . 486 834, 883 . 29 . 93 . 852 357, 362, 364 . 631 . 324 . 77 639, 641 . 853 . 854 387, 388, 391, 399, 403, 607, 845 . 218, 223, 775 . 147 296, 332, 345, 595, "*«*■ 875 . 118, 119 . 423 V. Mitchell 182, 183, 195, 196, 197 142, 256 . 95 V. Legard V. Smith, V. Telford Johnston v. Lloyd V. Newton V. Rowlands Johnstone v. Baber V. Lnmb Joliffe, ex parte Jolland ( V.) Jolly V. Norton Jones, in re V. Ashurst V. Croucher ■ V. Del Rio V. Foxall ■ V, Gibbons V. Goodchild V. Habbs V. Harris ■ V. How . V. James • v. Jones . V. Kearney ■ V. Langton V. Lewis . ■ V. Maggs V. Matthiff PAGE Keane v. Robarts . 226, 292, 428, 454, 455, 456, 458, 459, 561 V. Morgan t!. Morley V. Powell V. Powles V. Price . V. Reasbie V. Salter . 524 . 725 435, 528 . 680 124, 130 V. Lord Say and Seal 247, 248, 254 • V. Scott . . . 484, 485 V. Torin . . .700 V. Turberville . 139, 277, 736 V. Williams . . .667 Joseph's Will, in re . . 377 Josling V. Karr . . . 849 Josselyn v. Josselyn . . 597 Joy V. Campbell 139, 277, 293, 305, 311, 313, 725, 758, 773 Joyce V. Joyce . . . 713 Juxon V. Brian . . . 428 Kampf v. Jones Kator V. Pembroke Kaye v. Powel 858 725 585 Kearnan v. Fitzsimon Kearsley v. Woodcock Keating v. Keating . Keble v. Thompson. Keech v. Sandford . Keeling v. Child Kekewich v." V. Marker Kellaway v. Johnson Kellett V. Kellett . Kemp V. Kemp Kempton v. Packman Kendall v. Granger . V. Micfield Kenge v. Delavall . Kennedy v. Daly 238 . 135 . 416 337, 771, 773 22U, 223, 224 723 '. 88, 91, 94 . 538 353, 766, 776, 853 . 181 10, . 218, 222 . 182 . 17 . 640 174, 280, 325, 721, 725, 726 . 544, 582 . 193, 197 V. Turnley Kennell v. Abbott . Kenney v. Browne . Kenrick v. Lord Beauclerk 247, 248 Kensey v. Langham Kensington Hastings' case 467 248 269 198 121, 122, 123 . 835 737, 775 . 153 . 633 . 844 . 477 . 798 196, 471, 488, 738, 762 Kilbee v. Sneyd 290, 292, 294, 314, 316, 336, 461, 463, 465, 777 Kildare (Earl of) v. Eustace 10, 30, 678 V. Dollond Kent, in re V. Jackson Kentish v. Newman Keogh V. Cathcart . Keen v. Magawly Kettle V. Hammond Kettleby v. Atwood Kidney v. Koussmaker Killett V. Killett Killick, ex parte V. Flexney Kilpin V. Kilpin Kilvington v. Gray Kincaid, in re Kinder v. Miller Kinderley v. Jervis King V. Ayloff , ex parte V. Ballett • V. Boston V. Archbishop bury . V. Denison V. Leach . e. Marissal V. Mildmay V. MuUins V. Turner . 179 . 121 217, 220, 460, 465 56, 61 . 813 . 370 . 204, 206 . 285 28, 287 . 771, 773 . 689 . 205 of Canter- . 543 39, 179, 180, 181 836, 837, 839 . 649 . 260 . 374 . 834 Ixxiv TABLE OF CASES. PAGE King's Mortgage, in re . . 264 King (The) v. St. Catharine's Hall 495 V. Coggan . . . 324 V. Daccombe . . 675, 677 V. De la Motte 649, 650, 674 (The) V. Egginton . . 758 V. Holland . 11, 12, 43, 132 V. Jenkiilp . . 19 V. Lambe . . . 673 V. Portington . . 62, 71 V. Smith . . .673 V. Trussel . . .136 . V. Wilson . . . 324 V. Winstanley . , 424 Kingdome v. Bridges . 210, 216 Kingsman v. Kingsman . 70, 74 Kingston v. Lorton . 168, 731 • (Earl of) V, Lady Piere- point .... 311 Kirbyw. Mash . . 718,875 Kiricke v. Bransbey . .179 Kirk V. Clark . . 844, 848 V. Paulin . . .122 V. Webb . . 204, 206 Kirkby v. Dillon . . 648, 650 Kirkman v. Miles . . 800, 823 Kirkpatrick's Trust . . 348 Kirwan v. Daniel . 476, 482, 483 Kitchen v. Calvert . . .136 KnatchbuU v. Fearnhead 375, 765, 768 Knight V. Boughton . .169 V. Knight 130, 168, 169, 170, 171, 172, 173, 631 V. Majoribanks . 460, 465 V. Martin . . .367 ■?). Pechey . . .204 V. Earl of Plymouth 343, 351 V. Selby Knights V. Atkyns , Knott V. Cottee Knowles v. Spence Knox V. Kelly Knye v, Moore 141 . 797 102, 172, 364, 877 . 731 . 746 . 846, 848 Laoey, ex parte, 318, 460, 461, 462, 463, 464, 465, 466, 468, 469, 473 Lachton v. Adams . . . 372 Lacon v. Lacon . . . 734 Lad V. London City . . 198 Ladbroke, ex parte . . 422 Ladbrook v. Bleaden . . 234 Lade v. Halford . . .590 V. Lade . . . .200 Laifan, in re . . ■ ■ 714 Lake w. Craddock . . .202 V. De Lambert . 34, 711 V. Gibson . . 201, 202 PASB Lamas v. Bayly . . . 206 Lamplugh v. Lamplugh . 39, 207, 209, 210, 212, 215 Lanauze v. Malone . . . 357 Lancashire v. Lancashire . 530, 581 Lancy v. Fairechild . . 798 Landen v. Green . . . 873 Lander v. Weston . 349, 357, 4^ Lane v. Debenham . 301, 419, 530, V. Dighton V. Wroth Langford v. Auger 536, 638 204, 206, 756, 769, 762, 763 . 291 . 263 ■ V. Gascoyne, 290, 293, 311, 774 V. Mahony Langham v. Sandford Langhorn v. Langhorn Langley v. Fisher . V. Hawk V. Sneyd . Langstaffe v. Fenwick Langston v. Ollivant Langlon v. Astrey . V. Horton V. Tracy Lansdowne v. Lansdowne L'Apostre v. Le Plaistrier La Terriere v. Bulmer La Touche v. Dunsany Lavender v. Stanton Law, in re V. Bagwell V. Skinner Lawes v. Bennett Lawless v. Shaw Lawrence v. Beverley V. Bowie V. Maggs Lea V. Grundy Leach v. Dean V. Leach Leahy v. Dancer Lear v. Leggett 561 69, 69, 182 . 896 325, 721 . 870 . 680 . 546 . 339 724, 726 . 279 . . 482 . 753 . 274, 275, 278 . 814 . 845 . 432 668, 837, 839 . 748 . 476, 477 . 808 . 173 . 796 . 767 222, 385, 386, 396 . 643 . 93 . 168 . 660, 661 135 Lechmere v. Earl of Carlisle . 719, 792, 79.3, 798, 801, 807, 825 V. Lavie . . 168, 169, 171 V. Lechmere . 797, 798, 799, 802, 805 Ledwich, in re . . . 710 Lee V. Alston .... 753 V. Brown . 613, 517, 519 V. Delane . . . 868 V. Howlett . . . 608 V. Lee .... 361 V. Prieaux . . . 122 V. Young 538, 542, 643, 712 Leech v. Leech ... 97 Leeds (Duke of) v. Amherst 737, 743 V. Munday . . . 263 TABLE OF CASES. Ixxv Lees V. Sanderson Lefroy v. Flood Legard v. Hodges Legate v. Sewell Legg V. Gold wire Leigh V. Barry 302, 306, 310, 476 Leister v. Foxcroft Leith V. Irvine Lemaitre v. Bannister Leman v. Whitley . Lenaghan v. Smith Lench v. Lench FASE . 314 172, 173 . 174 164, 603 . 148 70 547, 556 169, 170 . 178 . 850 204, 205, 206, 756, 762, 774 Le Neve v. Norris . Lennard v. Curzon . Leonard v. Baker . V. Lord Sussex Lesley's case . Leslie v. Baillie V. Birnie V, Duke of Devonshire V. Guthrie Lethieullier v. Tracy Lever v. Andrews . Levet V. Needham Levett's Trust, in re Lewellin v. Cobbold V, Mackworth Lewes v. Lewes — — , in re Lewin v. Okeley Lewis, ex parte (Otto), ex parte V. Hillman V. Lane . V. Lewis . 845 474, 475 . 154 -. 225 . 367 . 498 . 182, 188, 189 . 276 251, 255, 678 . 200 177, 179 . 378 . 865 719, 729 . 135 . 883 489 . 423 . 833 . 378 46, 616 . 56 ■ V. Madocks 174, 759, 762, 763 V. Lord Zouche . . 651 Lichfield «. Baker . . .810 Liley V. Hay . . . 169, 698 Lillia V. Airey . . . 633 Limbrey v. Gurr . . . 132 Limbroso v. Francia . . 395 Linch V. Cappy . . . 360 Lincoln Primitive Methodist Chapel, in re . . . 718 Lincoln (Countess of) v. Duke of Newcastle Lincoln v. Allen V. Windsor V. Wright Lindon v. Sharp Lindow v. Fleetwood, Lindsell v. Thacker Lingard v. Bromley Lingen v. Sowray . Linion v. Bartlett . Lismore (Lord), in re 146, 152, 159, 161, 163 . 359 . 320, 550 306, 316, 768, 771, 775 . 477 . 164, 166 . 121, 264 . 768, 846 796, 818, 824 . 480 . 795 Lister's Hospital, in re . 378, 785 Lister ». Lister . 461, 462, 468, 471, 738 Little, ex parte . . 427, 691 Littlehales v. Gascoyne . 359, 875 Livesey v. Harding . . 538, 542 V. Livesey . . .373 Lloyd V. Baldwin . . 435, 436 V. Loaring . . . 851 V. Smith . . .853 V. SpiUet 15, 57, 61, 177, 178, 179, 180, 181, 229, 878 V. Went worth . .180 V. Williams . 369, 488, 489 Lloyde v. Gregory . . 36, 37 Loader v. Clarke . . . 776 Lock V. Lock . . 384, 395, 402 Locke V. Lomas . . 434, 623 Lockey v. Lockey . 730, 754, 755 Lockwood V. Abdy . . 226, 561 Lockyer v. Savage . . .135 Locton V. Locton . . .173 Loddington v. Kime . . 484 Lodge V. Lyseley . 650, 655, 656 Lofts, ex parte . . .479 Lomax v. Ripley . . 71, 73 London Bridge Act, in re . 427 London, Brighton, &c. Railway Company, in re . . 718, 785 London Gas Light Company v. Spottiswoode . 768, 849, 864 London (City of) v. Garway 182, 183 ■ V. Richmond . . .851 Long V. Yonge . . . 852 Longdon v. Simson . . .114 Longmore v. Broom . 359, 703 Longuet v. Hockley . . 273 Lonsdale (Earl of) v. Beckett . 577 Lord V. Bunn . . 135, 450, 712 V. Godfrey . . 354, 811 Lorimer, in re . . 380, 381 Louch, ex parte . . 478, 479 Love V. Bade . . . 751, 786 Love V. Gaze .... 69 Lovegrove, ex parte . . 657 V. Cooper . . . 688 Loveridge v. Cooper . 605, 607 Lovett's Exhibition, in re . 713 Low, ex parte . . . 479 V. Carter . . . 765 Lowe V. Morgan . . . 842 Lowes V. Hackward . . 196 Lowry v. Fulton 232, 235, 241, 242, 243, 289 Lowson if.'Copeland 328, 365, 878 Lowther v. Carlton . . . 726 Loyd V. Griffith . . .427 V. Read 200, 211, 212, 214, 216 Lucas, ex parte . . . 380 Luckin v. Rnshworth . 217, 224 Ludlow, ex parte . . , 828 Ixxvi TABLE OF CASES. Ludlow (Corporation Greenhouse . 723, Lumb V. Milnes Lunn's Charity, in re Lupton V. White Lushington, ex parte Lush's Estate, in re Lydiatt v, Foach Lyne, ex parte Lyon V. Baker Lyse V, Kingdon Lyster v. Burroughs V. Dolland Maberly v. Turton . 517, 697 M'Carthy v. Daunt . . .747 V. Decaix . . .778 Macartney v. Blackwood . 466, 762 Macauley v. Philips . . 629 M'Donald v. Bryce . . 116, 118 • V. Hanson . . . 421 M'Donel v. Hesilrige . . 93 Macdonald v. AValker . . 265 Macdonnell v. Harding . 333, 775 Mace V. Cadell . . .278 Macey v. Shurmer . . . 168 Mackenzie v. Mackenzie 476, 891, 905 Mackie v. Mackie . . . 816 M'Key, ex parte . . . 618 Mackinnon i: Stewart 476, 481, 666 Mackreth v. Symmons . . 725 M'Cleland v. Shaw . . 183, 196 M'Gachen v. Dew 326, 771, 849 M'Hardy v. Hitchcock . 864, 866 Macleod v. Annesley . 345, 349 M'Leod 0. Drummond 464, 456,456, 467, 458, 469 Macnab v. Whi thread . 168, 170 Macnamara v. Jones . . 556 Macpherson v. Macpherson . 814 Maddison v. Andrew . . 543 Madoc V. Jackson . . . 700 Madox V. Jackson . . . 848 Madge v. Riley . . .839 Mngawley's Trust, in re . .93 Maggeridge v. Grey . . 710 Maguire v. Scully . . 147, 149 Mahon v. Savage 542, 699, 706 ■ (Lord) V. Earl Stanhope . 418 Maire, ex parte . . ■ 835 Maitland v. Bateman . . 329 Major V. Lansley . . 646, 694 Malcolm v. O'Callaghan . . 557 Malim v. Barker . . . 168 V. Keighley . 168, 1C9, 171 Mallahar v. Mallabar 181, 196, 197 Walone v. Geraghty . 718, 848 V. O'Connor . . 168, 170 PAOH of) V. 777,779,780, | 781 ,782 , 783 122 838 337 605 885 603, 607 299 122 320 550 343, 767, 876 174 202, 665 ... PAGK Malzy V, Edge . . 240, 244 Manchester (Mayor of) v. Man- chester (Overseers of) . . 272 Manchester New College, in re 781, 782, 783 Mangles v. Dixon . . . 729 Manifold, in re . . . 837 Manners v, Fnize . Manning v. Thesiger Manning's Trust Mansell v. Mansell V. Vaughan Mansfield (Earl of) v. Ogle V. Shaw . Mant V. Leith Maplett V. Pocock Mapp u. Elcock Mara v. Manning March v. Russell Margetts v. Barringer Marker v. Marker . Mark well's Legacy, in re Marlborough (Duke of) v Godolphin . V. St. John Marlow v. Pitfield V. Smith Marriot v. Marriot Mariiott v. Kinnersley V. Turner Marryat v. Marryat V. Townley V. The Bank Marsh ( v.) , ex parte V. Hunter Marshall, ex parte V. Blew . V. Bousfield V. Bremner V. Siadden Martin, ex parte V. Hooper V. Margham V. Martin 849, 851 . 895 405, 406, 724, 725, 764 299, 528, 536 ~ ■ 749 870 . 345 . 873 . 179 640, 777 765, 777 . 122 . 778 378, 785 Lord 701, 703 . 614 37, 486 262, 279 . 70 306, 764 . 183 . 865 144, 149, 152, 153, 166, 164 . 33 . 823 . 277 341, 356 263, 715 . 594 163, 164 . 810 Holloway 111, 191, 649, 664 V. Sedgwick Marwood v. Turner Mdry England, in re Masham v. Harding Mason v. Bogg V. Day . V. Limbury V. Mason Mrissam v. Hftrding Masselin's Will, in re Massey, ex parte V. Banner . . 418 277 487 136 61, 63, 153, 318 236, 874 . 613 604 . 617 . 489 . 485 . 831 . 167 . 690 . 378 . 277 296, 332, 333 TABLE OF CASES. Ixxvii PAflE Massey v. Parker . 121, 122, 124 Master v. De Cioismar . 43, 163 V. Fuller Mather v. Norton . V. Priestman . V. Thomas Mathison v. Clarke Matson v. Swift Matthew v. Hanbury Matthews V. Bagshaw . 635 . 439 . 422 . 265 319, 320, 546 . 807 . 138 . 547 Matthew v. Brise 333, 342, 352, 753 V. Gabb . .613, 614 Matthie V. Edwards . 414, 423 Maugham v. Mason 183, 195, 196 Maundrell v. Maundiell . . 191 Mavor v. Davenpoit . . 238 Maxwell v. Ashe ■ . . .223 ■ V. Wettenhall . 489, 490 May V. Selby . . .851 ■ V. Taylor . . 249, 269 Maynard's Settlement, in re . 890 Maynwaring v. Maynwaring 822, 823 Mead v. Lord Orrery 454, 455, 456, 459, 460, 725 Meader v. M'Cready . . 362 Meaghan, i» ?"e . . . 136 Medley v. Horton . . . 130 V. Martin . . .279 Medlicott v. O'Donel . 732, 734 Meek v. Kettlewell 81, 83, 84, 88, 91, 92, 93, 94 Meggison v. Moore . . 168, 172 Meggot V. Meggot . . . 755 Megod's case . . . . 8, 20 Mehrtens v. Andrews . 353, 743 Meinertzhagen v. Davis 40, 576, 577 Melland v. Gray . . .363 Melling v. Leak . 586, 590, 748 Mennard v. Welford . . 574 McHardy v. Hitchcock . 864, 866 Meredith v. Heneage 167, 168, 169, 170, 171, 172 . 16 . 836 . 726 . 277 . 665 67,77 . 153, 156 608, 610, 611, 612 . 474, 475 Merest ». James Merry, ex parte , . Mertins v. Jolliffe . Mestaer v. Gillespie Metcalf V. Scholey . Metham v. Devon . Meure v. Meure Meux V. Bell V. Howell V. Maltby . . .851 Meyer v. Simonsen . . . 816 V. Montriou . . . 867 Meyrick's Trust, in re . . 888 McFadden t). Jenkyns . 61,91 Middleton v. Dodswell 522, 870, 871 V. Losh .... 120 V. Eeay . . 544, 582 i>. Spicer . 42, 198, 318, 324 Milbank v. Collier . Miles V. Durnford . Miliield, in re Millard's case V. Eyre . Miller's case . V. Huddlestone V. Knight V. Priddon V. Race Milles «. Milles PAGE . 851 138, 454, 456 834, 837, 839 . 725 . 711 . 19 . 853 . 839 . 578, 581 274, 275, 757, 758 387, 392 Milligan v. Mitchell . 497, 723 Mills «, Mills . 341, 353, 811 V. Osborne . . . 338 Milnes v. Cowley . . . 763 Milsington v. Mulgrave . . 386 Milsintown v. Earl of Portmore 387 Miltown V. Trimbleston . . 901 Minchin v. Nance . . .174 Mitchell V. Nixon . . .572 Mitchelson v. Piper . . 524 Mitford, ex parte . . . 771 V. Mitford . 276, 629, 631 Mogg V. Baker . . . 475 V. Hodges . . 183, 189 Moggridge v.- Thackwell . . 693 Mohun^.'Mohun . . 872,874 Molony, in re ' . . . 838 V. Kennedy . . . 642 V. L'Estrange . . 472 Molten V. Camroux ... 27 Money, in re ... 378 Montefiore, in re . . . 772 Montford (Lord) -v. Lord Ca- dogan , 238, 241, 385, 387, 392, 402, 766, 768, 769, 770, 774 Montgomeiie v. Bath (Marquis of) 842 Montgomery v. Johnson . Montmorency v. Devereux Monypenny v. Bristow . Moody, ex parte V. in re . V. Matthews V. Walter Moon V. Blake Moons V. De Bernales 235, 243 . 472 751, 753, 754, 756 . 772 . 834 223 405, 408, 409, 910 847 361, 766, 771, 772 . 755 63, 290 . 277 . 141 320, 549, 553, 874 . 34 . 130, 643 V. Scarborough (Earl of ) . 643 V. Vinten . . 837, 847 Morden College case . . 502 Morgan, ex parte . 263, 465, 737 Morgan v. Horseman . . 480 Moor V. Black Moorcroft v. Dowding Moore, ex parte V. Cleghorn V. Frowd V. Hussey V. Moore Ixxviii TABLE OF CASES. Morgan v. Morgan PAQE 116, 119, 623, 624, 753 V. Sherrard . 686 Moriarty v. Martin . . 167 Moricew. Bishop of Durham 169, 181 Morison v. Morison . . 319, 553 Morley's Trust, in re . 263,264 Morley v Bird 201 V. Lord Hawke . 774 V. Motley . 332 Mornington, ex parte . 894 Morony v. Vincent . . 873 Morret v. Paske . 318 Morrice v. Bank of Ei igland . 689 Morrill v. Lawson . . 847, 849 Morris v. Preston . . 573 V. Lavie . . 771 Morse v. Faulkner . . 62 V. Langham . . 484 — V. Royal 461 463, 464, 470, 471 , 472, 473, 734 Mortimers. Davies . 200 V. Ireland . 266 V. Watts . , 386, 543 Mortlock V. BuUer . . 415, 418 Morton v. Tewart . 63, 64 Moseley v. Moseley . 696, 707 Moses V. Levi . 314, 315 Mosley v. Ward 357, 361, 875, 878, 879 Mott V. Buxton . 247, 269 Mount, in re . . 835 Mousley ». Carr 362, 363, 876 Moyle i>. Moyle 232, 317, 336, 351 Moyse v. Gyles . 201 M'Queen «. Farquhar . 726 Muckleston v. Brown 67, 68, 71, 72, 73, 138 178, 182, 773 Mucklow V. Fuller . . 240, 318 Mulcahy v. Kennedy . 734 Mulvany v. Dillon 217, 220, 224, 461, 465 Mumma v. Mumma 39, 209, 212 Munch V. Cockerell 293, 362, 766, 778, 845, 848 Mundy v. Mundy . . 765 Murless v. Franklin ." 200, 207, 209, 214, 215 Murphy, in re . 136 Murray v. Barlee 634 , 635, 636, 641 i. Palmer . 472 V. Pinkett . 756 Murrell v. Cox . 310, 315 Myler?;. Fitzpatrick 226,561,562 Nab i;. Nab . 61,63,64,71 Nail V. Punier . . .774 Nairn v. Majoribanks . .614 Nantes v. Corrock . 629, 641, 642 Napier v. Napier . . . 369 PAOE Nash V. Coates . . 253, 264 V. Dillon . . .873 — — V. Preston . . 9, 260 V. Smith . . . 179 Naylor v. Arnitt . . . 622 V. Winch . , 460, 465 Neale v. Davies . . . 325 Neate v. Duke of Marlborough 650, 652, 658, 662, 663 Needham, in re . . 233, 237 Needler's case . . . 774 •». Bishop of Winchester . 34 Neeves v. Bnrrage . . . 624 Nelson v. Bridport . 54, 56 Nesbitts. Tredennick 217, 218, 222 Nettletons. Stephenson . .118 Nevarre v. Rutton . . . 729 Nevi] V. Saunders . . . 247 New V. Jones . 320, 546, 549, 550, 657 Newburgh ». Bickerstaflre 753, 755 V. Newburgh . . 71, 75 Newcastle (Duke of) v. Count- ess of Lincoln . . 146, 150 Newcomen v. Hassard 639, 645, 646 Newlands v. Paynter 44, 121, 125, 131 Newman v. Jones . . . 774 V. Warner . . 533, 712 Newport's case . . . 828 Newton u. Askew . 92, 94, 599 V. Bennet 359, 360, 488, 489, 876, 877 V. Chantler V. Earl of Egmont V. Pelham V. Preston Charity, in re NichoUs, in re V. Crisp . Nicholson v. Falkiner V. Tutin Nickolson v. Knowles Nicloson V. Wordsworth 477, 480 . 862 . 74 . 204 . 782 . 713 . 183 P57, 858 . 483 . 226 233, 236, 237 . 27 . 718 . 37 383, 384, 396 . 870 . 626 Niel V. Morley Nightingale's Charity v. Earl Ferrers II. Lawson Noad V. Backhouse Noble V. Pry V. Meymott 233, 567, 572, 851 Noel V. Lord Henley • 190, 813 1). Jevon . . 11,260,279 Nokes V. Seppina;s . . 867 Norbury v. Calbeck . . 878 — — V. Norbury . . . 343 Norcliff V. Worsley . . 603 Norden «. James . . 479, 497 Norfolk's case (Duke of) 104, 131, 132, 681, 761 TABLE OF CASES. Ixxix PAGE Norfolk (Duke of) v. Browne . 177 Norris v. Le Neve . 224, 225 V. Norris . 349, 873, 874 V. Wright . 340, 345, 350, 356, 357, 853, 858 North V. Chatnpernoon . 602, 603 V. Crompton V. Williams Norton V. Frecker V. Pritchard V. Turvill Norway v. Norway Nowlan v. Nelligan Nugent V. Gifford Nunn V. Wilsmore Nurton v. Nurton Oakes v. Strachey Oakley v. Young Oates v. Cooke O'Brien v. O'Brien O'Callaghan v. Coc O'Connor v. Spaight Odell, in re O'Dowda V. O'Dowda O'Fallon v. Dillon . O'Ferrall v. O'Ferrall Oglander v. Oglander Ogle V. Cook . O'Gorman v. Comyn O'Hara v. O'Neil . O'Herlihy v. Hedges Oke V. Heath . O'Keefe v. Calthorpe 'Kelly V. Glenny . Oldham v. Hughes V. Litchford Oliver v. Court . 181 '. 602, 603, 604 . 754 _ . 580 37, 633 642, 729 , 234, 874 I . 168 . 454, 455, 456, 457, 459 _ 474, 475, 477, 487 464, 455 808, 811 . . 252 . 250 356, 367 per . . 876 668, 753 568 669 659 384 . 713 . 183 658, 659, 660 . 63 . 318 . 195, 197 . 712 . 734, 739 798, 816, 817 . 71 317, 415, 421, 424, 467, 470, 471 Omerod v. Hardman . . 428 Ommaney, ex parte 836, 901 O'Neill «. Lucas . . .118 Onslow's (Speaker) case . . 820 Onslow V. Lord Londesborough 425 V. Wallis . 322, 323, 696 O'Reilly v. Alderson . 574, 710 Ord V. Noel 414, 415, 422, 423, 424 1). White . . .729 Orgill, ex parte . . . 715 Ormonde (Marquis of) v. Kyners- ley Ormsby, in re Orr V. Newton Orrett v. Corser Orrok v. Binney Osborne ( v.) V. Fallows V. Foreman 225 645, 546, 557 241, 330 . 773 . 458 . 373, 583 . 842 . 853 FASE . 777 478 ." 139, 773 . 699, 873 ^ , 795 . 633 . 356 '. 39 373 755 476 , , 461 Osmond v. Fitzroy . Oswald V. Thompson Ottley V. Browne . V. Gilby Otway V. Hudson . V. Wing . Ousley V. Anstruther Overton v. Bannister Owen V. Aprice V. Body . V. Foulkes V. Williams 217, 218, 220, 224 Owens V. Dickenson 636, 638, 642 Oxenden v. Lord Compton 798, 825, 826, 827, 828, 829, 830 Oxford (University of) v. Ri- chardson .... 753 Oxley, ex parte . . . 135 Packer v. Wyndham . 629, 631 Padbury v. Clark . .816, 823 Paddington Charities, in re . 106 Page, ex parte . . .716 V. Adam 435, 437, 440, 444 V. Broom . . . 425 V. Cooper . . 416, 417 ■ V. Leapingwell 182, 183, 195 V. Way . . . .134 Paine v. Meller . . 174, 175 Painter, ex parte . . 715, 716 Palmer, ex parte . . .715 V. Carlisle (Lord) . . 842 V. Jones . . . 766 . V. Mitchell . V. Simmonds V. Young Palmes v. Danby PanneU v. Hurley Panton v. Panton Papillon V. Voice Parke's Charity Parker v. Bloxam . 168, 171 . 218 . 830 226, 227, 459, 662 337 144, 16*4, 562 503, 781, 782 . 319 V. Brooke 121, 643, 694, 727, 728 V. Carter 686, 617, 622 623 Parkes v. White 120, 123, 124, 406, 460, 462, 470, 640, 643, 774 Parkinson's Tnist, in re . . 169 Parnham v. Hurst . . 276 Parr v. Attorney-General Parrot v. Treby Parrott v. Palmer . . 31 . 877 . 763 Parry's Trust, in re Parry in re . V. Warrington Parsons v. Baker . 381 . 377 . 813 . 168 V. Potter . 235 Partridge v. Pawlet Passingham v. Selby . 201 . 489 lxx> TABLE OP CASES. FASE Passingham v. Sherborne 605, 579 Pattinson, in re . . 883, 906 Pattison v. Hawkeswoith . 735 Paul V. Birch . . . .274 V. Compton . 167, 168, 172 Pawlett, ex parte . . . 348 ■ V. Attorney-General 1 1, 30, 103, 260, 279, 280, 284, 286, 677, 725 Payne, ex parte . 168,169,836 4). Barker . . . 695 V. Compton . . . 725 Peacham v. Daw . . . 867 Peachy v. Duke of Somerset . 283 Peacock v. Monk Peake v. Ledger V. Penlington Pearce v. Gardner . V. Newlyn V. Slocombe . Pearse v. Baron V. Green Pearson v. Belchier 633, 643, 645 . 851 . 164 416, 527 725 489, 490 . 165 . 699 739 V. The Bank of England 33 V. Lane V Pulley , Peart, eas parte Pease, ex parte Peat V. Crane . Peatfield v. Benn Pechel V. Fowler Peers v. Ceeley Pelly V. Maddin PenfolJ V. Bouch Penn v. Lord Baltimore Penne v. Peacock . Pennell v. Deffell . V. Home Pennefather, in re . Penny v. Pretor V. Turner Pentland v. Stokes . Pepper v. Tuckey . Peppercorn v. Waynian Perkins v. Baynton . ■ V. Bradley Perrott v. Perrott . . .408 Perry (in the goods of) . . 234 V. Knott . 10, 16, 17, 768, 845,846, 850, 853,854 698, 821 731, 734 . 381 . 278 . 361 . 582 415, 422, 723 . 366, 658 . 200 . 181, 595, 875 10, 30, 31, 47,50 . 526 333, 760 . 742 . 713 . 836 703, 704 . 720 712, 838 . 237 359, 361 V. Phelips Persse v. Persse Petit V. Smith Petre v. Bruin ■». Petre . Pettiward v. Prescott Petty V. Styward Peyton v. Bury V. M'Dermott 762 . 94 . 20 . 488 746, 746 . 762 . 201 299, 636 . 835 Phayre v. Peree Phelps, ex parte Phene v. Gillan Philips V. Brydges PAGE . 725 . 711 . 563 10, 16, 17, 600, 604, 615, 792 . 492 . 426 . 373 781 V. Bury . c. Everard V. Philips Phillipott's Charity Phillippo V. Munnings 243, 356, 729, 763, 867 Phillips's Charity, in re . . 781 ■ V. Buckingham (Duke of) 850 ex parte V. Brydges V. Eastwood . V. Gnrth V. Phillips Phillipson v. Gatty 181, Phillpotts V. Phillpotts . Philpot, ex parte . Phipps V. Lord Ennismore V. Kelynge Pickering v. Pickering 353, 354, 811, 812 V. Lord Stamford 734, 737, 739 826, 826, 827, 829, 830 . 142 . 616 701, 707 183, 197 346, 366, 357, 737, 849 . 138 . 479 . 136 111 ■ V. Vowles 217, 218, 222, 263, 386 Pickett V. Loggon . . 762 Pickstock V. Lyster . 474 , 476, 476 Pickup V. Atkinson , . 810 Pie) ce K. Scott 429, 458 Piercy v. Roberts , - 133 Pierson v. Garnet 167, 168, 169, 170, 696 V. Shore 217, 831 Piety V. Stace 367 359 361, 875 Pike V. White . 45 Pilkington v. Bayley . . 57 f. Boughey 168, 182 Pimm V. Insall , . 286 Pink V. De Thuisey . . 638 Pitt V. Bonner 767, 768 Pitt or Pit V. Hunt 12 631, 648 V. Pelham . 173, 694 Pitts V. Edelph , . 726 Plasket V. Lord Dillon 648 , 650, 651 Platelu.Craddock . 326 Piatt V. Sprigg , ." 407 Playfair v. Cooper , . 748 Playters v. Abbott . 390 397, 403 Plenty «. West . 675 Plucknett v. Kirke . 650, 684 Plunket V. Penson , 488, 684, 686, 689, 690 Plunkett, ex parte , . 713 Plyer's Trust, in re , 886, 896 Plymouth v. Hickman . . 64 TABLE OF CASES. Ixxxi PAGE Pocock V. Reddington . 338, 343, Price V. Leaden PAGE . 562 357, 875 V. Oneby . 832 Podmore v. Gunning . 77 V. Price . 81, 84 Poland V. Glyn . 480 Prichard v. Ames . 121, 122, 694 Pole V. Pole 207, 210, 211, Priddy v. Rose . 771 215 Pride v. Fooks 118, 318, 344, Pollard, ex parte . 48 764, 876 V. Downes . 562 Prideaux, in re . 835 Pollexfen v. Moore . 234 Primrose ». Bromley . 238 PoUey V. Seymour . 806, 808 Prince v. Heylin . 735 Pomfret (Earl of) V. Lord Pring, ex parte . 183 Windsor . 325, 729, 735, 739 V. Pring 74, 76 Pool Bathurst's Estate, in re . 577 Prior's (Tiady) Charity, in re . 506 Poole V. Pass . 595, 596 u. Horniblow . . 744 V. Franks 871 V. Penpraze . 279 Pooley V. Ray . 740 Pritchard v. Langher . 330 Poor V. Mial . 193 Piopert's purchase, in re . 882 Pope V. Gwyn . 488 Projected Railway, ex parte . 362 V. Pope . . 170, 171 Prosser, ex parte . 835 V. Whitcombe . 701, 704, Proudfoot 11. Hume . 866, 867 706, 707 Prowse V. Abingdon . 489 Porey v. Juxon 8 Prytharch v. Havard . 839 Porter's trust, in re . 895 Pugh, ex parte . 370 V. Watts . 583 in re . 634 ■ V. Walker . . 477 v. Vaughan . 689 Portington's (Lady) case . 58 Puleston V. Puleston . 67 Portlock V. Gardner . 226,319,562, Pullen V. Middleton . 46 730 Pulling V. Tucker . 480 Portsmouth (Earl 3f) V. Fel- Pulteney v. Darlington . 768, 792, lows . .711 796, 800, 802, 803, 805, 807, Potter V. Chapman . 22, 536, 821 , 823, 824, 825 538, 543 V. Warren 751 753, 754, 755 Poulson, ex parte . 772, 773 Pulvertoft V. Pulvertof 81, 84, 93, Poulton, in re . 834 94,98 Povey V. Juxon . 59 Purdew v. Jackson 627, 629, 630 Powdrell v. Jones . 627 Purefoy v. Purefoy . 484 Powel V. Price . 149, 725 Pushman v. Filliter . 167, 168, Powell's case . 487 169, 171 Powell V. Cleaver . 353, 808 Pybus V. Smith . 123, 766 V. Evans . 328, 351 Pye, ex parte 65, 82 V. Hankey . 643 V. Gorge 406, 406, 724 V. Matthews . 882, 886 Pyncent v. Pyncent . 849 V. Merrett . 325 Pym V. Lockyer . 136 V. Wright . 851 Powerscourt v. Pow erscourt . 642 Powles V. Page . 613 QuarrEll v. Beckford . 659 Powlett (Earl) «. H 3rbert 317, 875 ■rhe Queen v. Abrahams . 19 Powys V. Blagrave . 614 ' V. Harrogate Commis- V. Mansfield . 216 sioners . 272 Prankerd v. Prankei d . 199,214 V. Norfolk Commissioners Pratt i;. Colt . 12, 650, 682 of Sewers . . 516 ""v. Sladden . 181 V. Pitt . 836 Prendergast v. Byre i 835, 836, 839 V. Sterry . 271 Prentice v. Prentice .856 1!. Trustees of Orton Vi- Preston v. Grand C oilier Dock carage . 19 Company . . 851 Queens' College, Cambridge, in Prevost V. Clarke . 167 re . 495 Price V. Berrington . 27 Quick V. Staines . 278 V. Blakemore 759, 762, 763 t). Byrn . 460, 470 V. Dewhurst . 835 Raby'u. Ridehalgh . 340, 344, 771 / 'Ixxxii TABLE OF CASES. Rachfield v. Careless PAOB 59, 69, Rex V. Flockwood PAOB . 301 182, 262 V. Lexdale . 575 Rackham v. Siddall 245, 247, 258, V. Tippin . 287 263, 765 'ReynoMs, ex parte 465,468,469,711 Eadcliffe ». Ecoles . . 835 V. Jones . 288, 766 Radnor (Lady) «. Rotherham . 621 V. Messing , 621 RaiFety v. King . 733 Itice V. Rice . . 606, 729 Ramsden i>. Langley . 558 Rich V. Cockell . 694 Randal v. Heavle . 168 Richard's Trust . 897 ,«. Randal . 94 V. Pel kins . 870 Randall's Will, in re . 890 Richardson, ex parte . 278 V. Bookey . 181, 183 V. Bank of England 865, 866, V. Errington 460, 461, 463, 867, 868 469, 470 , 471, 737, 778 V. Chapman 168, 543, 708 V. Russell . 225 V. Horton . 285 Raphael v.. Bank of England . 758, V. Hulbert . 234, 847 *. Boehm 356, 359, 364, V. Jenkins 239, 692, 767 766, 877 V. Larpent . 852 Rashley v. Masters . 796, 872, 873 V. Moore . 392 Rastel V. Hutchinson . 205 Riddle v. Emerson . 61 RatcliiFv. Graves . 360 Rider v. Kidder . 33, 199, 200, 205, Ealcliffe v. Winch . . 521 207, 216 Ravenscroft v. Frisby . 745 V. Rider . 207, 649 Ravenshaw v. Hollier . 174 Ridgeway, ex parte . 343 Rawe V. Chichester 218, 219, 220, Ridgway v. Woodhouse . .193 222, 224 Ridout V. Lewis . 643 Rawleigh's case . 214 Rigby, ex parte . 297 Raworth v. Parker . . 486, 487 Rigden «. Vallier . 152, 201, 202 Ray, ex parte . . 121, 122 Riggs V, Sikes . 202, 833 V. Adams . 168, 696 Right V. Smith . 248 Raymond v. Webb . 414 Ripley v. Waterworth 33, 189 Rayner v. Mowbray . 701, 707 Rippon V. Norton . . 134 Rea V. Williams . 201 Rivet's case . . 272 Reach v. Kennegall .. 71, 877 Robarts ( v.) . 644, 583 Read v. Prest . 856 Roberdeau v. Rous 47, 48, 753 V. Snell . 144, 149, 155 Roberts v. Dixwell . 142, 144, 166, V. Truelove . . 290 167 , 261, 623, 681 Reade v. Reade 751, 765, 756 V. Kingsley . . 148 V. Sparkes ■ 691, 857, 858 V. Lloyd 87, 606 Reading Dispensary, in re . 782 V. Spicer . 122, 694 Redington v. Redington 200, 203, V. Tunstall 470, 471, 473, 737, 207, 211, 212 ,214,215,216 742 Reece v. Trye . 325, 721 Robertson v. Skelton . 174 Reech v. Kennegal . 71, 877 Robinson v. Comyns or Cuming 16, Reed v. O'Brien 89, 848 247, 604 Rees, ex parte . 781 V. Grey 246, 247, 254 V. Keith . 631 »;..Hedger . 657 V. Williams . 341, 356 ». Knight . 187, 805 Reeve ?J. Attorney-General 30, 31, 677 V. Lowater 435, 441, 445, V. Parkins . 723 446, 447 Reeves v. Creswick . 387, 393, 400 • V. Pett . 232, 318, 319, 545, Regina v. Shee . 272 661, 553 Reid V. Thompson . 596 V. Ridley . 466, 468 Remington, in re 715 V. Robinson . 341, 346, 350, Rendlesham v. Meux . 417 365 366, 361, 363 Renvoize v. Cooper . 265 V. Smith . 168 Retford, West (Church lands), V. Taylor 179, 180, 183 in re . 781 V. Wheelwright . 121 Revell V. Hussey . . 175 V. Wood . 837 Rex V. Blunt . 673 Rochard v. Fulton . . 608 — V. Bulkeley . 673 Rochdale Canal Co. v. King . 743 TABLE OF CASES. Ixxxiii Roche, in re 572, 573, 574, 711, 713 V. O'Brien 471, 472, 473, 734, 737, 738, 778 V. Hart . . .873 Rochford v. Fitzmaurice . 147, 148, 149, 154, 156. 157, 164, 253 V. Hackman . . 135, 873 Rocke t). Hart . 359, 361, 363 V. Rocke . . . 597 Rodgers v. Marshall . 97, 99 Roe V. Fludd . . .195 V. Reade . . 263, 591 Rogers v. Linton . . . 849 V. Rogers 180, 181, 183, 184, 865 V. Skillicorne 434, 436, 436 RoUe's Charity, in re . . 718 RoUeston v. Morton . . 662 Rollfe V. Budder . . 121, 694 Rome V. Young . . . . 485 Rook V. Worth 823, 829, 830, 838 Roper V. Holland ... 19 V. Radcliffe . . .179 Viose, ex parte . , .613 V. Cunningham . . 69 ■ V. Haycock . . . 478 Ross's Trust, in re . 123, 124, 632 , in re . . . . 381 V. Ross . . . .865 Rothwell V. Rothwell . . 867 Round V. Byde . . .480 Roupe V. Atkinson . . 629 Routh V. Howell . . 295 ■ V. Kinder . . .847 Rowe V. Almsmen of Tavistock 506, 507, 508 • V. Bant . Rowel V. Walley Rowland v. Morgan V. Witherden Rowley v. Adams V. Unwin Rowth V. Howell Roy V. Gibbon Royds V. Royds 659 . 395 . 163, 368 306, .351, 357 882, 888, 896, 903, 904 . 642, 778 . 332 . 867, 869 . 876 Royston Free Grammar School, in re . Rumball v. Munt . RumboU ». Rumboll Rumford Market case Rundle v. Rundle . Rushworth's case . Russell's case , ex parte V. Clowes V. Dickson • v. Jackson V. M'Culloch V. Plaice Rust V. Cooper 782 783 . 107 203, 209, 210 . 217 . 202, 207 . 218 36, 39 . 891 . 325 125 Vl, 74, 169 . 657 . 454 47, 480 PAOE Rutherford v. Maule . . 324 Ryall V. Rolle 274, 275, 276, 650, 764, 758 ■ • V. Ryall . 63, 204, 206, 756, 762 Rycroft v. Christy . 91, 92, 122 Ryder v. Bickerton . 337, 338, 774 Ryland v. Smith . . .369 Sadler v. Hobbs . 304, 305, 311, 312,313,314,318 V. Lee .... 594 Saint John's Col., Cambridge, v. Todington .... Saint John (Lord) v. Boughton 492 485, 745 739 781 855 ■ V. Turner . . , Saint Wenn's Charity, in re Sale V. Kitson V. Moore . 168, 169, 170, 173 Saloway v. Strawbridge . 420, 530 Salsbury v. Baggott . 721, 726 Salt V. Chattaway . . 183, 197 Salter v. Cavanagh . 181, 731, 745 Saltoun V. Houston Salvin v. Thornton Salway v. Salway . Sammes v. Rickman Sampayo v. Gould Sanders v. Page V. Richards Sanderson v. Walker Sandford, in re V. Keech Saudon v. Hooper Sands v. Nugee Sandys v. Watson Sanford v. Irby Saunders, ex parte V. Dehew V. Neville V. Vautier Savage v. Carroll V. Foster V, Taylor Saville i). 'Tancred Savory v. Barber Sawley v. Gower Sawyer v. Birchmore Say V. Creed . . 239 . 604 . 334, 357 . 873 . 164, 352 . 629, 631 . 454 463, 470, 876 . 835 . 217 . 659 . 533 . 873, 878 . 256 . 716, 716 93, 724, 726 . 595 . 597 . 763 . 39, 774 . 511 . 226, 459 . 852 . 684 . 375 . 368 Sayers, ex parte 276, 754, 758, 759 Scales V. Maude . . 81, 88 Scammell v. Wilkinson . . 261 Scarborough v. Borman . .125 (Earl of) V. Parker . . 875 Scarisljrick v. Skelmersdale . Ill Scattergood v. Harrison . 319, 546 Scawen v. Scawen . 214, 215 Schroder v. Schroder . . 752 Score V. Ford . . 865, 869 f2 Ixxxiv TABLE OF CASES. Scott V. Becher V. Davis V. Nesbitt V. NicoU V. Scholey V. Spashett V. Surman ■ ■ i>. Tyler . Scounden v. Hawley Scroope v. Scroope . Scudamore, ex parte V. Scudamore Scully V. Delaney V. Scully Sculthorp V. Burgess Scurfield v. Howes PAGE . 867, 870 124, 472, 473, 632 47, 471 ., 842 648, 665 . 370 274, 276 453, 454, 455, 466, 458, 459 31, 260 . 210 . 480 793, 797, 805 . 239, 316 . 848 . • . 177 305, 311, 312, 315, 316, 766 . 153 . 97 82, 84 . 846, 848 98, 816, 819 359, 875, 878 . 226 16, 792 . 70 . 847 . 727 827, 828, 829 . 263, 833 . 118,177 . 476 . 830 . 808 426 Seale v. Seale Sear v. Ashwell Searle v. Law Seddon v. Connell Seeley a. Jago Seers v. Hind Segrave v. Kirwan Selby V. Alston Sellack v. Harris Selyard v. Harris Senhouse v.. Earle Sergeson v. Sealey Sergison, ex parte Sewell V. Denny V. MusSon Seys V. Price Shadbolt v. Thornton ■ ■ V. Woodfall . Shaftesbury v. Duke of Marl- borough 387, 389, 391, 393, 395, 397, 398 Shakeshaft, ex parte 366, 357, 767, 768, 771, 772, 773 Shales «. Shales ... . 214 Shallcross v. Wright . .184 Shanley v. Baker . . . 197 Shannon v.. Bradstreet . . 591 Shapland v. Smith . . . 247 Sharp V. Cossent . . . 135 V. Sharp . . 233, 264, 570 Sharpe v. Earl of Scarborough . 650, 661, 688, 691 Sharpe's Trust, in re . 377, 380 Shaw, ex parte . . 264, 479 V. Borrer 414, 428, 429, 440, 441, 513 29 102, 167 V. Bran . o. Lawless ■ V. Rhodes -= V. Weigh Shee V. Hale . Sheldon v. Weldman Shelly's case . Shepherd «. Mouls . V. Shepherd Sheppard v. Smith . V. Woodford . Sheridan v. Joyce . Sheriff v. Axe . PAGB 341,355,356 . 621 . 876, 877 . 272 . 366, 756 320, 546 Sherrard v. Lord Harborough 179, 318 Sherratt v. Bentley . . 234, 874 Sherwood, in re . . 320, 649 Shewell v. Shewell . . .368 Shewen v. Vanderhorst . . 524 Shields v, Atkins . . . 325 Shine v. Gough . . 611, 591 Shipbrook (Ld.) v. Lord Hinchin- brook . 305, 311, 312, 315, 316 .488 . 808 845, 864 . 489 648, 649 . 227 . 836 . 820 269, 318, 782 . 422 200, 207, 211, 214, 215, 216 Shiphard v. Lutwidge Shippardson v. Tower Shipton V. Rawlins Shirley v. Ferrers — — V. Watts Shore v. Collett Shorrocks, in re Short V. Wood Shrewsbury School, in re Sidebotham v. Barrington Sidmouth v. Sidmouth 114, 117, 119 . 250 . 135, 136 . 729 . 827 Sidney v. Shelley Siebert v. Spooner . Sikes V. Lister . Silk ». Prime . Sillibourne v. Newport Simmonds v. Palles . Simes v. Eyre . V. Naylor Simpson v. Morley . V. Sikes . V. Taylor Sims V. Marryatt Sish V. Hopkins Sisson V. Shaw Sitwell V. Bernard . Skarff V. Soulby - . Skeats v. Skeats Skeetes, in re Skett V. Whitmore . Skinner, ex parte 505, 607, 781, 782, 783 Slade V. Rigg .... Slater v. Wheeler . Slewringe's Charity, in re Sloane v. Cadogan . Sloman v. Bank of England Sloper, in re . Small V. Attwood V. Mar wood V. Dudley Smart v. Bradstock Smee v. Martin 182, 191 . 477 . 832 . 489 . 538 482, 483 . 849 . 834 . 668 477, 478, 479 . 648 . 249 . 660 . 617 . 813 . 93 209, 211, 216 . 785 61, 204 . 848 300, 847 781, 783 81, 89, 93 372 897 774, 777, 844 . 237 . 480 . 852 . 518 Smith, ex parte 298, 471, 771, 835 TABLE OF CASES. IXXJLV PAGE PAGB Smith V. Adams , , 621 Stahlschmidt v. Lett , 620 V. Adkins . 106 Staines v. Morris . , 425 V. Attersoll , , 77 Stair V. Macgill , 813 V. Baker , 199 Stamford (Earl of) v. Sir John V. Boucher , , 894 Hobart 144, 166 V. Cai^elford . 200 643 Stamp V. Cooke , , 707 732 Stamper v. Millar . , 301 V. Claxton 184, 186, 818 Siandford u. Marshall , 634, 641 V, French . 774 777 Stanes v. Parker , 649, 560^ V. Garland 93 Stanley, in re , 836 V. Guyon , 435 V. Bond , , 670 V. Hibbard , , 832 V. Darington . , 291 V. Hurst . 662, 663 666 V. Leigh , , 160 V. Jameson ■ 20 Stanley v. Lennard . , 145 247 V. Keating , , 481 Stansfield v. Hobson , 855 V. King . 39, 180 Stanton v. Hall 121 122, 135 V. Lyne . 99 Staple's Trust, in re . , 381 V. Smiih 34, 6 05, 609, 612, 771, Stapleton v. Stapleton . 82 870, 885 896 Starkey v. Brooks . 180 181, 183 V, Snow . 595 850 Stead V. Nelson 633 635, 645 V. Spencer , , 626 V. Newdigate . 792 807 818 V. Warde , 101 Steele v. Philips 650 V. Wheeler 236, 449, 585 Stent V. Bailis , 174 V. Wilkinson . 63 Stephens v. James . , 136 Smyth's Settlement 896, 897, 906 V. Trueman . 94 Snow V. Booth 749 Stevens v. Hotham 425 ». Hole . . 875 V. South Devon Railway Snowdon v. Dales . 132, 133 Company . . .516 Sockett V, Wray , 35 Stermett v. Bainbridge , 468 Sombre Dyce, in re , 835 Stewart v. Hoare 656 Somerset's case (Ea d of) 676 ■ V. Noble , 489 Sonley v. Clockma ters' Com- Stickland v. Aldridge . 67, 68 ,70,, pany . , , 693 71 Southampton (Lord) V, Marquis Stickney v. Sewell . 338 345 of Hertford . Ill, 161 191 Stiffe V. Everitt 627 Southcomb v. Bisho ) of Exeter 742 Stikeman v. Dawson , 39 South Eastern Eai way Com- Stile V. Tomson , 630 pany, ex parte 342 Stiles V. Guy 239, 316, 329, 338, Southouse V. Bate , , 181 661 737 South Sea Compai IV 0. Wy- Stileman v, Ashdown 210, 212, 660, mpndsell . . 734 736 668 669 660 Southwell V. Ward . 713 Stocken v. Dawson . 649 Sowarsby v. Lacy > 432 Stone V. Godfrey 326 737 775 778 Sowerby's Charity, 'n re . 782 V. Gratham . , 476 Spackmau v. Timbr ell , 285 V. Theed 383, 384, 386, 388, Spalding v. Shalmer 304, 429 435 389, 395 Sparling v. Parker , 815 • — — V. Van Heythuysen 482 490 Spink V. Lewis . 182, 183 V. Wythipole . , , 37 Spottiswoode v. Sto( ikdale 486 Stones. «. Rowtoh . , 678 Sprange v. Barnard . 169, 171 Stonehewer v. Thompson , 660 Sprigg V. Sprigg . 190, 195 Stonehouse v. Evelyn , , 183 Spring V. Biles , , 706 Stonor V, Curwen . 147 156 156 Spurgeon v. Collier . 284, 724 Storry v,_ Walsh 441 445 446 448 Spunner v. Walsh . , , 836 Story V. Tonge , 372 Spurrier v. Hancock , , 175 Stott V. HolHngworth , 813 Squire v. Dean , , 643 Stow V. Drinkwater . 262 -. V. Ford . , , 486 Strafford v. Powel. . 146 163 Stacey v. Elph 2 33, 235, 242, 462 V. Twynam . , 465 Stacldipuse v. Bams ton 737, 761 766 Streatfield v, Streatiield . , 148 Stackpole v. Davorei 1 . 761, 752 Stretton v. Ashmall . , 346 Stacpople V. Stacppp le . 369, 876 ; Stright, ex parte . . 612 Ixxxvi TABLE OF CASES. PAGE Strode v. Russel . . . 262 V, Winchester . . 71 Strong V. Strong . . . 853 Stroughill V. Anstey 416, 417, 434, 436, 437, 439, 468 Stuart, ex parte . . . 425 ■ V. Biuere . . .813 V. Kirkwall 634, 635, 639, 641 V. Stuart . . 340, 348 Stuckey v. Drewe . . . 476 Stulz's Trusts, in re . . 136 Slahhs, ex parte . . . 715 V, Roth . . . 218, 223 V. Sargon . . . 181 Sturgis V. Champneys . 629, 630 V. Corp . . . .124 Sturt V. Mellish . . 19, 20 Stutely, ex parte . . 379, 772 Styan, in re . . , . 613 Suir Island Female Charity School, in re Supple V. Lowson 503, 782 642, 706, 706, 782 . 190 808, 810, 815 319, 460 359, 361 198, 726 . 511 . 613 . 726 Suteliffe V. Cole Sutherland v. Cooke Sutton V. Jones V. Sharp Sutton Colefield case Swan V. Swan Swayne v. Swayne ■ Sweet V. Southcote Sweetapple v. Bindon 153, 621, 622, 793 Swift, ex parte . . . 617 V. Davis . . 211, 214 V. Gregson . . 701, 706 V. Nash ... 69 Swinnock v. Crisp . . . 618 Sykes v. Hastings . . . 319 Sylva V. Da Costa . . .834 Sylvester v. Jarman . . 263 V. Wilson . . . 247 Symance v. Tattam . . 409 Symons v. Rutter . . . 807 Symson v. Turner . . . 247 Synge v. Hales . 141, 146, 164 Tabor v. Grover . . .18 Taggart v. Taggart . . 152, 153 Tait n. Jenkins . . . 871 V. Northwick . . 482, 491 Talbot V. Earl of Radnor 234, 367 ■ — r- V. Whitfield . . .820 Taner v. Ivie .... 465 Tanner v. Dancey . . . 873 w. Elworthy. .•. . ■ . 218 Tappenden v. Burgess 477, 478, 479 V. Walsh . . .694 Tarback v. Marbury . . 476 Tardiif v. Robinson . . 392 Targus v. Puget Tarleton v. Hornby Tasker v. Small Taster «. Marriott Tatam v. Williams Taylor, ex parte Taylor's Trust, in re V. Allen . V. Alston a. Clark V. Crompton V. George V. Glanville V. Hawkins V. Haygarth 198, 321, 324, 679 V. Hibbert V. Jones V. Plumer PAQE . 163 . 768, 846 . 176, 844 . 218 . 742 . 477, 478 . 807 . 870 . 214, 215 . 815 . 763 . 167, 168 367, 873, 875 . 466 813 93, 648 274, 275, 764, 757, 758, 763 V. Salmon . . . 851 V. Stibbert . . .725 V. Tabrum . 424, 767, 876 V. Taylor 39, 184, 207, 212 216, 633 V. Wheeler . . .276 Tee V. Ferris . . . 71, 73 Tebbs V. Carpenter . 328, 358, 359, 361, 362, 364, 365, 876, 879 Tenant v. Brown Tench v. Cheese Terry v. Terry Theebridge v. Kilburne Thetford School case Thicknesse v. Vernon Thomas, ex parte . V. Bennett V. Bume V, Dering V. Dunning V. Gwynne V. Hole . V. Thomas Thomason v. Maokworth Thompson, in re 1). Blackstone . V. Grant V. Harrison V. Jackson V. Leach V, Simpson Thompson v. Speirs Thorby v. Yeats 173 . 116 . 337, 613 . 149 . 198, 199 . 201 . 277, 278 . 643 . 223 538, 640, 641 . 842, 843 . 834 . 707 751, 756 . 251 . 836 . 415 . 264 . 777 . 476 . 36 722, 728, 745, 775 . 613 595, 858, 875 Thorn ley v. Aspland . . 137 Thornton v. Ellis ", . . 813 V. Hawley 800, 806, 807, 816 Thorp V. Thorp . . 376, 377 Thorpe v. Jackson . . . 848 V. Owen . 61, 82, 172, 681 Thrupp V. Harman 643, 644, 681 Thrustout V. Coppin . . 262 Thruxton v. Attorney-General . 66 TABLE OF CASES. Ixxxvii PAGE PAGE Thynn v. Thynn . , . 71 TuUet V. Tullet . . 830 Tibbits J). Tibbits . 168 169, 171 TuUett V. Armstrong 122 128, 633, Tickner v. Smith. . , . 358 634, 635 Tidd V. Lister 370 687, 870 Tulloch V. Hartley . . . 60 Tieruey v. Wood . , . 65 Tunstall v. Trappes 651, 661,662, Tiffin V. Longman . , . 705 672, 772 Tinstone's Trust, in re . . 377 Tunstall's Will . 896 Tilly V. Bridges . 755 Turquand v. Knight . 876 Timson v. Eamsbottom 608, 610, 614 Turner, ex parte 436 , 441 , 442, 772 Tipping V. Piggott . , 405, 406 (Sir Edward's) case . 631 V. Power , . 873 V. Buck . 288 , 719, 751 Titley w. Wolstenholme . 265, 266 V. Corney 290, 599 Todd V. Wilson , 649, 660 V. Frampton . . 368 Toft V. Stephenson . . 746 V. Gwinn . 603 Toller V. Attwood . . 256 V. Harvey . 415 V. Carteret . . . 48 V. Hill . . 217 Tooke V. Hollingworth . 274 V. Hind . . 853 Tournay, in re . 376 V. Mauley 356 366, 674 Townley v. Bedwell 392, 808 V. Sargent 146, 164 V. Bond . 244 390, 392 V. Turner . 358 V. Sherborne . 299 302, 304 V, Wardle . . 238 Townsend, ex parte , 29, 296 Tumley v. Kelly . 121 , in re , . 883 Turpin, ex parte . 771 V. Ash . , . 756 Tutin, ex parte . 833 D. Barber . 314 Twisleton v. Thelwel . 873 V. Lawton , . 409 Twopeny v. Peyton . 133 • V. Westacott . , . 93 Twyne's case . . 476 V. Wilson ^ 301, 528 Tylden v. Hyde . . 445 Townshend ( Marquis of) ■D. Tylee v. Tylee . 869 Bishop of Norwich . 179 Tyler v. Lake . 122 V. Townshend 729, 730, 731 Tyler's Tiust, in re . 895 V. Windham . . . 643 Tyrrell v. Hope , . 122, 277 Townson v. Tickell 236, 237 Tyrrell's case (Lady) . 177 Trafford v. Boehm 341, 351, 768, 792, 820 821, 823 V. Trafford . . . 160 Underwood v. Hatton , 376, 487, Trash.D. Wood . 45, 680 522, 766 Travel! v. Danvers . . 710 V. Stevens 315 316, 774 Travers v. Townsend . . 876 Uniacke, in re .233, 237 Tregonwell v. Sydenham 181, 182, University College, Oxford, in re 495 189 190, 191 of Oxfurd V. Richardson . 753 Trench w. St. George 384, 385 Upton Warren, in, re . 781 V. Harrison 200, 2U6, 360, 756, UpfuU's Trust, in re . . 376 763 Urch V. Walker 233, 234, 240, 241, Trent v. Banning . . 250 .366 Treves v. Townsend 359, 361, 362 Uvedale v. Ettrick . , . 712 Trevor v. Peryor. . . . 682 v. Uvedale . 873 V Trevor 147, 155, 166, 725 Trickey v. Trickey , . 117 Trinity College v. Brown . 272 Van v. Barnett 723, 806, 816,823 Triquet v. Thornton . 806 Van Sandau v. Moore , . 857 Trot V. Vernon . 167 Vandebende v. Levingston . 752 Trott V. Dawson . 660 Vanderstegen v. Witham . 19 Tiower v. Knightley 531, 819 Vaughan v. Buck 369, 370, 810, 812 Trutch V. Lamprell . 291 V. Burslem 151, 162, 163 Tryon, in re . . 234 V. Farrer . 504 .Tucker ®. Boswell . . 813 V. Vanderstegen 639, 768 V. Thurstan . . 284 Venables v. Morris . . 263 Tudor V. Samyne . . 631 Verner, ex parte . 136 Tuer V. Turner . 818 Verney i).. Carding . 725, 768 luffnell V. Page . 45, 616 V. Verney 384, 386, 395 Ixxxviii TABLE OP CASES. PAGE PAGE Vernon's case . . 58 Wallgrave v. Tebbs 73,79 Vernon, ex parte , . 200, 832 Wallwyn v. Coutts . 101, 476, 481 V. Blacker! ey . . 844 Walsh V. Dillon . 858 V. Vawdry . 238, 764 V. Gladstone . . 672 V. Vernon 94, 167, 830 V. Walliiiger . 701 703, 704 Verulam (Earl of) v. Bathurst " 155 Walter v. Maunde . 599, 707, 808 Vez V. Emery . 367 V. Saunders . 631 Vezey v. Jamson . 182 Walton, ex. parte . . 71S Vick V. Edwards . 252 V. MeiTy . 839 Vickers v. Cowell . . 201 V. Walton 69, 69, 180, 182 V. Scott . . 415, 813 Walworth v. Holt . . 851 Vigor V. Harwood . . 813 Wankford v. Wankford . . 234 Vigrass v. Binfield . 337, 867, 869 Warburton v. Hill 608, 613 614, 616 Villers v. Beaumont . 97 V. Sandys 300, 301, 667, 581 Villiers v. Villiers . 250 V. Vaughan . 837, 839 Vincent v. Godson . . 239 Ward V. Arch 729, 747 V. Newcombe . 345, 810 V. Audland . 88 Viner v. Cadell . 274, 278 V. Bassett . 853 Voyle V. Hughes . . 91 V. Burbury V. Butler V. Lant . 253, 254 239, 240 . ,177 Waokerbath, ex parte . 305 Wardle v. Claxton 122, 123 V. Powell . 294 Ware /u. Polhill . 829 Wade V. Paget . 16 Waring, in re 376, 380 Wadley v. Wadley . . 392 V. Coventry . 277 Wagstaff V. Smith . 122,124,248 V. Waring 326, 344, 346, 360j n. Wagstaff 45, 615, 616 -858 Wain V. Earl of Egmont 487, 538, Warman v. Seaman . 177 641 Warmstrey v. Tanfield . 12, 600 Wainwright ». Bagshaw . . 107 Warrick v. Warrick 148, 727 V. Elwell . 15 Warter v. Hutchinson 248, 251, 254, V. Hardisty . . 635, 646 257 V. Waterman . . 696 Warwick Charities, in re . 718 Waite V. Whorwood . 754, 757 Countess of, v. Edwards . 643 Waithman, ex parte . 612 — -■ — V. Richardson . 37, 681 Wake V. Wake . 893, 903 Washborn v. Downes . 602 Wakeford, in re . 834, 883 Waterhouse v. Stanfield . . 49 Wakeman v. Duchess of Rut- Waters v. Bailey . 218 land . . 427, 844 V. Wood . 44 Walbum v. Ingilby . 846 Watkins, ex parte . . 612 Walford( V.) . . 596 V. Cheek 434, 435 466, 458 Waldo V. Caley . . 642 Watson, ex parte . 361, 772 V. Waldo . 516 V. Hayes . 183 Walker ( v.) . . 346 V. Hinsworth Hospita I . 607 Walker, in re 546 818, 834, 883 V. Earl of Lincoln . . 195 V. Denne 791, 795, 798, 805, V. Marshall . 370 806, 819 , V. Pearson 258, 300 V. Meager . 487, 643 V. Toone 460, 465 466, 471 V. Preswick . . 726, 845 Watts's settlement, in re 674, 885, V. Shore 415, 775, 816 896 V. Smalwood . 429, 434, 524 V. Ball . 621, 625 — — V. Symonds 290, 304,307,311, V. Bulks . 99 312, 317, 337, 338, 357, 699, 726, V. Cresswell . . 39 767, 774, 775 777, 778, 845 V. Girdlestone'338, 341, 356,418 V. Walker. . 538, 540 V. Hyde . 472 V. Wetherell . . 518 ». Jeffereyes . 671 V. Woodward . . 363 V. Kancie 454, 456 Wall V. Bright 175, 263, 268 V. Porter 280, 671 Wallburn v. Ingilby . 846 V. Turner . 595 Walley v. Whalley . 217, 222, 224, Waugh's Trust, in re 883, 906 726, 847 Way v. East . . 132 TABLE OF CASES. Ixxxix: Weale v. OUive Weatherby v. St. Giorgio Weaver v. Maule . Webb V. Ledsam V. Lugar ■». Rorke PA8E . 84 . 430 283, 284 . 305 . 218 . -470 V. Earl of Shaftesbury . 142 318, 544, 569, 582, 723 V. Webb . . . 118, 857 V. Wools . . 168, 171 Wedderburn v. Wedderburn 319, . 729, 730, 777," 778 Wedgwood ». Adams . . 424 Weiss V. Dill . '. . . 557 Weld -v. Bonham . . .851 V. Tew . . . .827 Welford ». Liddle . . .734 Wellesley i>. Wellesley . . 174 West «!. Ayles . . . 834 11. Errissey . 148, 149, 727 V. Steward . . . 474 Westby v. Westby . . 670 Westbrook, in re . . 646, 556 V. Blythe . . 668, 672 Westcott V. Culliford . . 368 Western v. Ca,rtwright . . 734 Westley v. Clarke . 304, 305, 310, 317 Weston V. Filer . . 893, 903 Westover v. Chapman . 338, 363 Wetherell «. Collins . .842 V. Hall . . . .593 ■». Langston . . . 237 V. Wilson . . . 596 West Ham Charities, in re . 782 Whale V. Booth 278, 455, 466, 457 Whalley v. Whalley . . 734 Whateley v. Kemp . . 148 Whatton v. Toone . . 460, 734 Wheate v. Hall . . .164 Wheatley v. Purr ... 81 Wheeler, in re . . . 883 Wheelwright v. Jackson . . 480 Wheldale v. Partridge 793, 799, 804, 806, 824 Whelpdale v. Cookson . 461, 464 466,473 Whetstone (Lady) v. Bury . 678 Whichcote v. Lawrence 461, 463, 469, 470, 471, 7-38 Whinchcombe v. PuUeston . 136 Whish, ea; parte . . .715 Whistler v. Newman 634, 640, 775, 875 J). Webb . . . -842 Whiston V. Dean and Chapter of Rochester . . . ■ . -493 .« 264 . 28 . 462 241, 868 Whitacre, ex parte . Whitaker v. Wisbey Whitcomb ». Minchin White V. Bartqn PAGE White «. Baylor . . 283, 692f V. Briggs . 168, 169, 170, 171 V. Carter . . .155 — i— «. Cuddon . . . -416- V. Evans . 69, 69, 162 V. Ewer . . . 731- a. Foljambe . .421, 426 ■«. Lincoln . . 337,599- v. Nutts . . .175 V. Parker . . 247, 24S v. Tommy . . . 465 V. White 383, 384, 395, 396, 397, 398, 399, 402, 706, 713, 774 ». Williams ... 69 Whitecomb v. Jacob . 766, 757 Whitfield V. Brand . . 278 ». Prickett . . .135 Whitley, e^^arte . 713,715,716 Whitmarsh v. Robertson . 866 Whitmore v. Weld . . 39 Whittingham's case . 36, 37 Whittem v. Sawyer . . 369 Whittle V. Halliday . . 848 V. Henning . . . 372 Whitton ex parte . . . 836 V. Lloyd . . . 488 Whitwick V. Jermin . . 796 Whitworth v. Gangain . 280, 672 Wichfield v. Baker . . .808 Widdowsonti. Duck . 343, 624 Widmore v. Woodroffe . . 699 Wigg V. Wigg . .173, 725 Wightman v. Townroe . . 272- Wiglesworth v. Wiglesworth 357, 867 Wike's case 30, 260, 280, 629, 677 Wilcocks V. Hannygton . . 83 Wild V. Wells Wildes V. Davies Wilding V. Bolder V. Richards Wiles V. Cooper V. Gresham 326, 340, 521, 756 Wilkes V. Steward Wilkins v. Fry V. Hunt . - — — V. Stevens Wilkinson, ex parte V. Brayfield V. Malin V. Parry . 765 . 119 40, 679 481, 482, 483 . 858 Wilks V. Groom ■ V. Wilkinson Willan V. Lancaster Willand v. Fenn Willats V. Busby. . Willet V. Sandford Willett V. Blandford Williams' estate, in re Williams, in re 337, 338 . 423, 426 . 873 . 206 . 243, 715 . 178 298, 299, 601 666, 677, 774, 777, 847 . 885 131, 135, 139, 656, 659 . 617 . 316 93, 849, 850 319 881 836 xc TABLE OF CASES. FAQE PAGE Williams v. Bird . . 716 Withers v. Withers 60, 199, 202 V, Carter . 167 Withington v. Withington . 674 V. Coade. 182, 183 Withy V. Mangles . . 707 V. Corbet . 101 Witter V. Witter . . 19, 829 V. Kershaw . 182 Witts V. Bodington , , V. Lomas . 768 V. Dawkius . 123 ^- V. Lord Lonsdale . 324 Wivelescom case . 495 V. Nixon 240, 29*9, 310, 316, Wolestoncroft v. Long . 487, 488 316 , 317, 318 Wood V. Betlestone . 894, 898 V. Powell , 363, 364 V. Cox . . 168 V. Waters , . 248 V. Dixie . 475 V. Williams . , 169, 173 V. Downes 473, 867 Williamson v. Codrington 93,94 V. Hardisty . . 238 V. Curtis . . 435 V. Harman . 434, 623 V. Park . . . 659 V. Nosworthy . 18 V. Williamson , . 93 V, Richardson . 415 Willis V. Childe . , . 643 V. Stane . 710 V. Hiscox 593, 878 v.. White . 441, 532. 844 V. Kibble . . 561 V. Williams . . 842 V. Willis 200 204, 205 V. Woods . 857 Wilmot V. Pike . . 608 Wood's Trust, in re . 377 Willmott V. Jenkins . . 243 Woodcock V. Renneck 700, 704 Willoughby v. Willoughby 131, 725 Woodhead v. Mai-riott 368, 879 Wills V. Sayers , 121, 122 Woodin, ea; parte . 226, 562 Wilson, in re , . 836 Woodhouse v. Hoskins 144, 404, V. Beddard . , . 805 408, 409, 410 V. Bennett 265 267, 533 Woodman v. Horsley . 122 V. Broughton . . 845 V. Morrel 178, 200, 207, 214, V. Clapham . . 174 215, 216 V. Day . 476, 477, 480 Woodmeston v. Walker . 124 . 297 Woods V. Woods . 169, 596, 857 V. Dent . '45, 63, 616 Woodyat v. Gresley . 771 V. Fielding , . 686 Woollett V. Harris . 180, 181 V. Foreman , , . 756 Woolmore v. Burrows 154, 166, 157, V. Goodman . , . 768 164. 404 V. Heaton . 564 Woolnough V. Woolnough . 603 V. Hoare . . 272 Worley v. Framptun . 425 V. Knubley . 239 Worrall v. Harford 101, 317, 557, 561 V. Major 169, 171 183, 187 Worsley v. Demattos 476, 477, V. Moore 729, 767 478, 480 V. Oldham . 371 Wortham v. Pemberton . 629, 632 V. Wilson 113, 875 Worthington v. Evans . . 533 Wilton V. Hill , . 865 Wrangham, ex parte . 496 V. Jones . 842, 853 Way V. Smith . 816 Wiltshire v. Rabbits . 608 Wray v. Steele 200, 201 Winch V. Brutton . . . 171 Wren v. Kirton . 2£ 5, 296, 333 V. Keeley 274, 275 Wright V. Atkyns 168, If i9, 170, 173 Winchelsea «). Norcliffe 829, 830 V. Hall . . 195 Winchester (Bishop of) V. Knight 753 Wright V. Maunder . 422 Winged v. Lefebury . 725 V. Newport Pond E chool Winn V. Fenwick . . 705 606, 608 Winnall, ex parte ■ . 291 V. Pearson 141, 14 2, 145, 247, Winnington v. Foley . 409 251, 266 Winslow V. Tighe . 218, 223 V. Rose . . 808 Winter, ex parte . 838 V, Row . 193, 194 V. Rudge . 572 V. Snowe . 39 Wise, in re . . . . 882 V. Wright 183, 184 V. Wise . 233, 609 WrigSl's settlement, in ri ! . 376 Wiseman v. Roper . . 94 will, in re . 377 Witham's case « . 6,9 Wrigley v. Sykes 441, 445, 446, Withers v. AUgood . • . 142 447 TABLE OF CASES. XCl PAGE Wyatt V. ShaiTatt . 349, 867, 869 Wych V. East India Company 721, 734 V. Packington 177, 179, 180 Wyche, in re ... 550 Wykham v. Wykham . 253, 604 Wynch v. Grant . . .239 Wynne v. Hawkins . 169, 171 V. Styan . . . 733 Wynter v. Bold . . .420 Yallop, ex parte . . . 203 V. Holworthy . . 753 Yarnold v. Moorhouse . . 135 Yates V. Hambly . . .842 Yervel (Poor of) v. Sutton 506, 507, 508 York V. Brown . 320, 549, 874 York Buildings Company Mackenzie . . 466, V. Baton Young V. Dennet V. Grove V. Martin ■ V. Peachy V. Scott . V. Waterpark . 729, Younge v. Combe Younger v. Welham Younghusband v. Gisborne FAQK V, 467, 471 201, 202 . 488 . 182 . 172 177, 178 . 857 747, 748 359, 361 . 298 134, 598, 656 ZiNOK V. Walker Zoach V. Lloyd Zouch V. Parsons . 275 . 830 36, 37, 38 TABLE OP STATUTES CITED. EDWARD I. PAOE FAOE 29. c. 3. s. lO (Judgments 11. (Statute Merchant) . 278 against cestui que 13. St. 1. 0. 1 (De Donis) 601 trust) . 664, 690 St. 1. 0. 18 (Elegit) 278 s. 12 (Estates pur au- St. 1. 0. 39 (Levari Facias) 647 tre vie) 202 st. 3 (Statute Merehant) . 278 WILLIAM AND MARY. EDWARD II. 3. c. 14 (Action against De- 9. St. 2 (Sheriffs) . 269 4. visee) 239, 689, c. 3. s. 10 (Bequests of 690 EDWARD III Stock) . 32 27. St. 2. c. 9 (Statute Staple) 278 6. c. 20. s. 20 (Bank of Eng- land) . WILLIAM III. 32 RICHARD II. 15. c. 5 (Mortmain) 43 7 & 8. c. 25. 3. 7 (Right of HENRY VI. voting for Mem- 8. c. 7 (Right of voting for bers of Parliament) 270 Memhers of Parlia- ANNE. ment) . 270 4. c. 16. s. 22 (Subpoena) . 859 RICHARD III. 6. 0. 35 (Yorkshire Registry) 596 1. c. 1 [Cestui que Use em- 7. 0. 19 (Infant Trustees) 38, 832 powered to pass Legal GEORGE I. Estate) . . 5 601 1. st. 2. c. 19 (Bequests of HENRY VII. Stock) . 32 4. c. 24 (Fines) . 601 GEORGE II. 19. c. 15 (Execution against Uses) . 10 4. c. 10 (Lunatics, &c.. Trus- tees of Lands) 833 8. c. .6 (Yorkshire Registry) . 596 HENRY VIII. 9. c. 6 (Mortmain) 44, 79, 132 21. c. 4 (Sales by Executors) 532 14. c. 20. s. 9 (Estates ^ar au- 26. c. 13 (Forfeiture) . 9, 28 674 tre vie) 202 27. c. 10 (Statute of Uses) 7,10 18. c. 18. s. 1 (Right of voting 33. 0. 20 (Forfeiture) 674, 675 676 for Members of ELIZABETH. 30. Parliament) . 0. 19. s. 49 (Bequests of 271 13. c. 4 (Extents) . 673 stock) . 32 c. 5 (Creditors) . 93, 475, 476 27. 0. 4 (Purchasers) . . 92, 93 GEORGE III. 43. c. 4 (Charitable Uses) 779 25. 36. c. 35 (Extents) 0. 90 (Lunatic, &o.. Trus- 673 CHARLES II. tees of Stock) 833 22 & 23. c. 25 (Game Act) . 29. c. 3. 3. 5 (Devises of T;a,nd) 593 39 & 40. c. 36 (Bank of Eng- 65 land) . . 33 0. 56 (Disentailing 859 s. 7 (Creations of Trust of Land) 60 money-land) 820 821 s. 8 (Exception of Im- 0. 88. s. 10 (WiU of plied Trusts) 204, 228, the Sovereign) 25 762 c. 98(ThellussonAct) 112 s. 9 (Assignments of 47. c. 74 (Traders' Lands, Trusts) 600 Assets) 273 TABLE OF STATUTES CITED. XCJll 52. c. 101 (Romilly's Act) 718, 779 54. c. 145 (Corruption of Blood) 28 56. c. 91 (Charity Commis- sioners) . . 783 58. e. 95. s. 2 (Right of voting for Coroners) . 592 59. 0. 81 (Charity Commis- sioners) ; .783 GEORGE IV. I & 2. 0. 19 (Lunatic Trustees) 834 6. c. 74 (Trustee Act) . . ih. c. 16 (Bankruptcy Act) 479, 557 7. 0. 57 (Sales under Insolvent Debtors' Act) . 422 WILLIAM IV. II G. 4. & 1 W. 4, 0. 40 (Exe- cutor Trustee for next of kin) . 59, 325 c. 47 (Action against Devisee, Assets) . 239, 273, 474 c. 60 (Lord St. Leonards' Trustee Act) 713, 834, 835, 836, 837, 838, 839 1. c. 60. s. 23 (Charities) . 716 1 & 2. c. 32 (Game Act) . 593 2. c. 45. s. 23 (Reform Act, Right of Voting) . 271 c. 57 (Charities) . . 716 3&4. 0. 27 (Limitation of Ac- tions and Suits) 288, 484, 722, 743, 744, 745, 786 c. 74 (Fines and Reco- veries) . 16, 148, 156, 157, 236, 237, 411, 472, 604, 817, 822 c. 104 (Assets) . 273, 285, 435, 474, 688, 691, 692, 796 c. 105 (Dower) . 621, 626, 794 c. 106 (Inheritance) . 187, 618, 680 4 & 5. c. 23 (Escheat) . . 836 c. 29 (Lpch's Act) 347, 348 c. 92 (Fines and Reco- veries, Irish) , 236 5 & 6. e. 76 (Municipal Cor- poration Act) 25, 31, 716, 717 VICTORIA. 1. c. 26 (Wills) . 33, 45, 60, 65, 80, 118, 195, 203, 249, 259, 617, 825, 831 1 & 2. e. 110 (Insolvency, Judgments) . 29, 136, 278, 350, 476, 6=8 2 & 3. c. 11 (Judgments) . 669 3 & 4. c. 77 (Grammar-school Act) . . .500 0. 82 (Judgments) . 670 5. c. 5 (Abolition of Equity Exchequer Juris- diction) . . 859 5 & 6. c. 116 (Insolvent Act) 278 6 & 7. c. 18. s. 74 (Right of Voting) . 271, 593 c. 73 (Solicitors' Act) . 561 7 & 8. c. 45. 3. 2 (Dissenters' Religious Property Limitation Act) . 497 c. 66 (Aliens) . 39, 43 c. 76 (Real Property Amendment Act, now repealed) 156, 236, 412 c. 92 (Right of voting for Coroners) . 593 0. 96 (Insolvency) . 278 8 & 9. 0. 16. s. 20 (Com- panies' Clauses Act) 859 0. 106 (Real Property Amendment Act) 412, 424, 600, 817 10 & 11. c. 96 (Trustee Relief Act) Zn5etseq., 785 12 & 13. c. 106 (Bankrupt Law Consolidation Act) 29, 273, 277, 287, 477, 479, 714 13 & 14. 0. 35 (Sir G. Turner's Act) . . .368 0. 60 (Trustee Act, 1850) 283, 286, 714, 840, 847 14 & 15. c. 83 (Court of Appeal in Chancery) . 714 15 & 16. e. 86 (Chancery Amendment Act) 854, 860, 866 16 & 17. c. 137 (Charitable Trusts Act, 1853) 499, 717, 718, 784 et seq. 18 & 19. c. 15 (Judgments) 657, 669 c. 124. (Charitable Trusts Amend- ment Act, 1855) 382, 504, 511, 785, 786 19 & 20. e. 50 (Sale of Parish Advowsons). . 107 c. 94 (Uniform Ad- ministration of Es- tates) . . .797 ADDENDA. The following List of References will, it is believed, be found to embrace almost all tlie decisions of importance bearing upon the subject matter of the treatise reported during its progress through the Press, down to the 1st of July, 1857. A few earlier cases, which had escaped previous attention, have also been added. Mere typographical errors (except where they might possibly mislead) h&ve not been noticed. PAGE 19, note (a), add Sloperv. Cottrell, 2 Jur. N. S. 1046 27, — (i), — Greenslade v. Bare, 20 Beav. 284 28, line 13. Read thus :—"Areitpoji aMffiimc^er forfeitedabsolutelytotheCrown.'' And note that, attainder is necessary to support the Crown's right even to the year, day, and waste ; Bex v. Brldger, 1 M. & W. 146. 33, note (1), by the 8 & 9 Vict. cap. 97, the provisions of the former Acts relating to registration of testamentary instruments in the ofice of the Bank were repealed. 62, — (d), add Wood v. Midgley, 5 De Gex, M. & G. 41 70. As to the limits of the jurisdiction of Courts of Equity in cases of devises or bequests obtained by fraud, see Hindson v. Weatherill, 5 De Gex, M. & G. 301, and the cases there collected. 81, note (a), add Sccdes v. Maude, 6 De Gex, M. & G. 43 ; Airey v. Hall, 2 Jur. N. S. 658 — Dipple T. Corles, 11 Hare, 183 — Airey v. HaM, 2 Jur. N. S. 658 ; and Kiddill v. Pamell, 6 Weekly Rep. 324 — Lewis V. JJees, 3 K. & J. 132 — Holmes v. Penney, 3 K. & J. 99 — Dening v. Ware, 22 Beav. 184 — Paterson v. Mwrphy, 11 Hare, 88 See further, as to the ClerkenweU Case, Cajrter v. Oropley, 26 L. J. N. S. (Ch.) 246 — Tmvm V. Newcome, 3 K. & J. 16 — Tench v. Cheese, now reported, 6 De Gex, M. & G. 453' — Baker v. Bradley, 2 Jur. N. S. 98 — Fratt V. Mathew, 22 Beav. 339 — Holmes v. Penney, 3 E. & J. 90 — Childers v. ChUders, 3 Kay & Johns. 310 ; under appeal at the date of publication. ; and see observations of Lord St. Leonards, in Potts v. Potts, 3 Jones & Lat. 353 add Doncaster v. Doncaster, 3 K. & J. 26 Ba/rnes v. Grani, 2 Jur. N. S. 1127 Haddelsey v. Adams, 22 Beav. 266 ; Lewis v. Rees, 3 K. & J. 132 265, — (5), — Knight v. Robinson, 2 K. & J. 503 266, — (d), — Beasley v. WilMnson, 13 Jur. 649 ; in which case a devise by a sole surviving devisee in trust of all estates, which at his decease might be vested in him as trustee, and which he comld devise without breach of trust, was held by the Vice Chancellor of England to pass Trust Estates, ■ 269. As to the right of the cestui que trust to vote for coroners ; see pp. 592, 593 277, note (6), add Re Bamhhead's Trust, 2 Kay & Johns. 560 288. Compare subsequent observations at p. 722 290, note (e), add Ohost v. Waller^ 9 Beav. 497. 82, — .(»), 84, — («), 93, w, 93, — (I), 94, — if), 99, — (9), 108, — («). 111, — («), 116, — {/), 123, — m, 131, — (h), 135, — w, 138, — (6), 161, — (6); 163, (»), 168, — (i), 253, — ^f), ADDENDA. XCV PAGE 290, note (/), add Truich v. Lamprdl, 20 Beav. 116 ; Thompson v. Finch, 22 Beav. 316 311, — (a), — Re Fryer, 3 Jut. N. S. 485 ; decided ty Vice Chancellor Wood, whiok supports Lord Northington's view. ^ 318, — {a), — SugdeuY. Crosslcmd, 3 Sm. & Giff. 192 319, — (d), — Wedderlurn v. Wedderhwrn, reported on the late hearing before the Master of the Rolls, 22 Bear. 84. It appears from a note hy the reporter at page 124, that the decision was appealed from, but that the suit was compromised. 321, — (A), — Coxy. Parker, now reported, 22 Beav. 168 323, — (c), — As to the necessity for the pardon containing words of resti- tution, see BvUoch v. Dodds, 2 B. & Aid. 277 329, — (e), — Sughes v. Empson, 22 Beav. 181 332, — (/), — Johnson v. Newton, 11 Hare, 160 ; Willcs v. Groom, 3 Drewry, 584 337, — (5), — Dnlce of Leeds Y. Earl Amherst, iO Be^arT. iZQ 342, dele the reference to 16 Beav. 76, at (/). 362, note (c). In Mayor of Berwick v. Murray, March 7, 1857, the Lord Chan- cellor explained that, what he thought in Attorney-General v. Alford was, "that, although there had been great misconduct on the part of Mr. A., in not communicating to the proper autho- rities the fact that trust monies had come to his hands, yet that was not a sort of misconduct frhich enabled him (the Lord Chan- cellor) to charge Mr. A. with more than the ordinary rate of interest." Taken from short-hand writer's note of Judgment, add Penny v. Avison, 3 Jur. N. S. 62 — ■ Pride v. Fooks, 2 Beav. 430 ; Wilson v. Peake, 3 Jur. N. S. 155 — Earper v. Munday, 2 Jur. N. S'. 1197 — Koeber v. Stwgis, 22 Beav. 588 — Warter v. Anderson, 11 Hare, 301 — Re Woodhurn, 5 Weekly Rep. 649, M. E. 423 ; in which case it was decided by the full Court of Appeal (notwithstanding the con- trary opinion previously entertained, see 3 K. & J. 41), that the Court has jurisdiction under the Trustee Relief Act to make the trustee pay costs. And see Re Jones, 3 Drewry, 679 416, — (c), — Devaynes v. Roiimson, 5 Weekly Rep. 509 446, lines 3 to 5. In reference to obtaining a vesting order in such a case, see Re Wise, 5 De Gex & Sm. 415 448, add Colyer v. Finch, 3 Jur. N. S. 25, argument of Lord Chancellor in moving the House. 454, — Clarke v. Panopticon, 3 Jur. N. S. 178 474, — Moore v. Petckell, 22 Beav. 172 ; in which case, however, Jon^s v. Scott, 1 R. & M. 255, reversed in D. P. 4 CI. & Fin. 382, appears to have been altogether overlooked. 478, note (e), add Bittleston v. Cooke, 2 Jur. N. S. 758; ffutton v. Cruttwell, 1 Ell, & Bl. 15 — (/). — Smith Y. Hurst, 10 Hare, 30 493, — [b), — Attorney-General v. Governors of Dedham Grammar School, 3 Jur. N. S. 325 503, add Re Ashton Charity, 22 Beav. 288 614, note (a). See Re SMngley, 3 Mac. & Gor. 221 ; and Gregg y. Coaies, 2 Jur. N. S. 964 ; where the tenant for life was held liable under the parti- cular words of the will in each case . 516, — (6), add Vance v. East Lancashire Railway Company, 3 K. & J. 50 517, — {g), — Worthimgton v. M'Craw, 26 L. J. N. S. (Ch.) 286 519, — {a), — Worthington v. M'Crcm, ubi su/pra. 521, — (a), — Forshaw v. Higginson, 3 Jur. N. S. 476 534, second paragraph. But compare the subsequent discussion, at page 567, upon the question how far a trustee becomes such before the transfer to him of the trust estate. 556, note (c), add Nicholson v. Tmtin, 3 K. & J. 159 568, — (c). The reference should be Appendix No. VII. 570, add Peaa-ce v. Pearce, 22 Beav. 248 572, second paragraph. See,^ Armstrong's Setflemiwt, 5 Weekly Rep. 448, and Re Woodgaie's Settlement, ib., in reference to the question there adverted to. 364, - («). - (6). 367, - W, 370, - («), 373, - (/), 380, - («), XCVl ADDENDA. FADE 577, note (/), add Nicholson v. Smith, 3 Jur. N. S. 313 578, — (6), — Nicholson v. Smith, 26 L. J. N. S. (Ch.) 312 ; 3 Jur. N. S. 313 580, — (d),. — Sugdem. Crosaland, 3 Sm. & ffif. 192 '582. Palmers Settlement, cor. Vice Chancellor Kindersley, April 18, 1857, costs of ap^nting newi trustees ordered to be paid oat of the corpus. 583, note (h), 3,0.. Gardiner y. Dotimes, 22 Beav. 395 613, — (c), — Ex parte Boidton. 3 Jur. N. S. 425 — (g), — Elder v. Maclean, 3 Jur. H. S. 283 621. The reference to the Dower Act should be 3 & 4 W. IV. c. 105 640, note (5), add Eanchett t. Briscoe, 22 Beav. 496 662, — ■ (6), — Jones t. Bailey, 17 Beav. 582 ; but qvmre rightly decided. 668, — (o), — Beavan v. Earl of Oxford, now reported, 6 De Gex, M. & G. 492 670, — {d},) and } add Wells v. Giibs, 22 Bear. 204 671, - (c), ) 672, — (as), — Kinderley t. Jervis, 22 Beav. 1 677, — (/), — Chattel interests accruing to a felon after conviction, but before restoration to civil rights, are forfeited to the Crown. Roberts v. Walker, 1 R. & M. 752. SecHs as to chattels accruing sub- sequently to such restoration. Stokes v. ffolden, 1 Keen, 145 ; Qough V. Davies, 2 E. & J. 623 ; Thompson's Trusts, 22 Beav. 606 688, — (c), — French v. French, 3 Jur. N. S. 428 722, — {a), — Attorney-General v. Magdalen College, was reversed in D. P., on the 13th of June, 1857 745, — (a), — Mawksbee v. Mawksbee, 11 Hare, 230 749, — (e), — Attorney-General v. Magdalen Gollege has been reversed in D. P. 756, — (6), — Mayor of Berwick Y. Murray, 3 Jmt. N.S.I; Harford -7. Lloyd, 20 Beav. 310 762, — (g), — Matthias v. Matthias, 3 Jur. N. S., 429 766, — (c), — Oibbins v. Taylor, 22 Beav. 344 771, — (c), add Egbert v. Butter, 21 Beav. 560 772, — (jr). As to the discharge of a debt created by a breach of trust under the Insolvent Acts, see Thompson v. Finch, 22 Beav. 316 ; on appeal, 25 1. J. N. S. (Ch.) 681 776, — (a), — Story v. Gape, 2 Jur. N.S. 706 778, — (a), — Robinson v. Wheelwright, 6 De Gex, M. & Gr., 535 ; Wilton v. HUl, 25 L. J. N. S. (Ch.) 156 782, — if) — Re Ashton Charity, 22 Beav. 288 807 — (h), — Nor would such proceed? be forfeitable to the Crown as personalty until the period for conversion arrives. Thompson's Trusts, 22 Beav. 506 809, — (a), — Wilkinson v. Duncan, 3 Jur. N. S. 530 819, — (a), — Exparte Stewart, 1 Sm. & Gif. 32 825. Add to first paragraph of Section 11 : — But of course where a power (asa power of sale) is given to a trustee, the mere circumstance that the exercise of it may vary the rights of the cestuis que trust will not be allowed to fetter the free action of the trustee. Lantsberyr. Collier, 2 Kay & Johns, 709 851, note (ft), add Williams v. Salmond, 2 K. & J. 463 852, — (c), — Ogden v. Lovn-y, 25 L. J. N. S. Ch. 198 855, — (e) — Chaffers v. Baker, 5 Weekly Eep. 326 856, — (ft), — Rump v. Oreenhill, 20 Beav. 512 ; Ogden v. Lowry, 25 L. J. N. S. (Ch.) 198 872 — (/), — Saunders v. Saamders, 5 'Weeldy Eep. 479 895, — (d) — The trust property having greatly increased, the Court, upon an apphoation under the Act, appointed two additional trustees, though the Instrument of Trust provided for two only. Boycotts Settlemeni, 5 Weekly Eep. 15 901, — (a), — In Re Primrose's Settlement, 5 Weekly Eep. 508, the Master of the Eolls was of opinion, that he had no jurisdiction under this Act to order respondents to pay costs. But compare the decision in Re Woodbum, 5 Weekly Eep. 649, under the Trustee Belief Act. INTKODUCTORY VIEW RISE AND PROGRESS OF TRUSTS. The origin of trusts, or rather the adaptation of them to Origin of tnista. the EngUsh law, may be traced to the ingenuity of fraud. By the interposition of a trustee the debtor thought to withdraw his property out of the reach of his creditor, the freeholder to intercept the fruits of tenure from the lord of whom the lands were held, and the body ecclesiastic to evade the restrictions directed against the growing wealth of the church by the statutes of mortmain. Another inducement to the adoption of the new system was the natural aniiety of mankind to acquire that free power of alienation and settlement of their estates, which, by the narrow policy of the common law, they had hitherto been prevented from exercising. Originally, the only pledge for the due execution of the The subpoena, trust was the faith and integrity of the trustee ; but the mere feeling of honour proving, as was likely, when opposed to self-interest, an extremely precarious security, John Waltham, Bishop of Salisbury, a Chancellor in the reign of Richard the Second, originated the writ of mh- poena, by which the trustee was liable to be summoned INTEODUCTION. into Chancery, and compellable to answer upon oath the allegations of his cestui que trust. No sooner was this protection extended, than half the lands in the kingdom became vested in feoffees to uses. Thus, in the words of an old counsellor, the Parents of the trust were Fraud and Fear, and a Court of Conscience was the Nurse («). Trusts simple or Qf trusts there wcre two kinds : the simple trust, and spefeial. the special trust. The simple trust, which also passed by Simple trust de- the name of a use, was defined in legal phraseology to be, " a confidence, not issuing out of the land, but as a thing collateral, annexed in privity to the estate of the land, and to the person touching the land, scilicet, that cestui que use should take the profit, and that the terre-tenant should execute an estate as he should direct" {b). In order rightly to understand what was meant by this rather technical description, we shall briefly consider the prin- ciples that were recognised by Courts of equity (for these had the exclusive jurisdiction of trusts), first, with refer- ence to the terre-tenant or feoffee to uses, and secondly, with reference to the beneficial proprietor, or cestui que use. Confidence in the With rcspect to the feoffcc to uscs, it was held to be person. absolutely indispensable that there should be confidence in the person, sadi privity of estate. For want of the requisite of personal confidence it was ruled that a corporation could not stand seised to a use ; for how, it was said, could a corporation be capable of confidence when it had not a soul? Nor was it competent for the king to sustain the character of trustee ; for it was thought inconsistent with his high prerogative that he should be made responsible to his own subject for the due administration of the estate. (a) Attorney- General v. Sands, (b) Co. Lit. 272, b. Hard. 491. INTRODUCTION. And originally the subpoena lay against the trustee himself only, and could not have been sued against either his heir or assign ; for the confidence was declared to be personal, and not to accompany the devolution of the property («). But the doctrine of the Court in this respect was subse- quently put on a more liberal footing, and it came to be held that both heir and assign should be liable to the execution of the use. An exception however was stUl made in favour of a purchaser for valuable consideration not affected by notice {b). The meaning of privity of estate may be best illustrated Mvity of estate. by an example. Had a feoffment been made to A. for life to his own use, with remainder to B. in fee to the use of C, and then A. had enfeoffed D. in fee, in this case, though D, had the land, yet, as he did not take the identical estate in the land to which the use in favour of C. was attached, he was not bound by C.'s equitable claim. And, by the same rule, neither tenant by the curtesy, nor tenant in dower, nor tenant by elegit, was liable to the execution of the use, for their interests were new and original estates, and could not be said to have been impressed with the use. So the lord who was in by escheat, a disseisor, abator, and intruder, were not amenable to the subpoena ; for the first claimed by title paramount to the creation of the use ; and the three last were seised of a tortious estate, and held adversely to the feoffee to uses. With respect to the cestui que use, the principle upon Privity as regards ^ ^ . the cestui que use. which his whole estate depended was also what in legal language was denominated jony2Yy. Thus, on the death of the original cestui que use, the right to sue the subpoena was held to descend indeed to the heir on the ground of (o) 8 E. 4. 6 ; 22 E. 4. 6. (6) Keilway, 42, b. B 2 INTRODUCTION. Special trust de- fined. Trusts applica- ble to chattels. haeres eadem persona cum antecessore ; but the wife of the cestui que use, or the husband of a feme cestui que use, and a judgment creditor, were not admitted to the same privi- lege ; for their respective claims were founded not on privity with the person of the cestui que use, but on the course and operation of law. And for the like reason a use was not assets, was not subject to forfeiture, and on failure of heirs in the inheritable line did not escheat to the lord. And as a use was regarded in the light of a chose in action, that is, a mere right to enforce a claim against another in a court of equity, the use was held not to be assignable {a). The special trust (for hitherto we have spoken of the simple trust or use only) was where the conveyance to the trustee was to answer some particular and specific purpose, as upon trust to reconvey in order to change the line of descent, upon trust to sell for payment of debts, &c. In the special trust the duty of the trustee was not, as in the use, of a mere passive description, but imposed upon him the obligation of exerting himself in some active character for the accomplishment of the object for which the trust was created. In case the trustee neglected his duty, the cestui que trust was entitled to file a bill in Chancery, and compel him to proceed in the execution of his ofiice {b). Both the use and the special trust were applicable to chattels real and personal, as well as to freeholds ; but trusts of chattels were for obvious reasons much less frequently in practice. The amount of the property was small ; the owner, even without the interposition of a trustee, had the fullest control and dominion over it ; and a chattel inte- («) Finch's case, 4 Inst. 85. Hen. 7. Append, to Treat, of Powers, (b) See the case in the reign of No. 1. INTEODUCTION. rest, as it followed the person, was equally subject to for- feiture whether in the custody of a trustee, or in the hands of the beneficial proprietor (a). But to the extent, what- ever it was, to which trusts of chattels were adopted, they were conducted upon the same principles, mutatis mutandis, as were trusts of freeholds ; the right to sue a suijposna turned equally on privity {b), and the interest of the cestui que trust was held not to be assignable (c). Such was the nature of trusts as they stood at common statutes affecting trusts. law J but the manifold frauds and mischiefs to which the new system gave occasion, particularly " the great uu surety and trouble arising thereby to purchasers," called loudly from time to time for the enactment of remedial statutes. One of the most important of these was the 1 Ric. 3. c. 1, the substance of which may be well expressed in the terms of the preamble, viz., that " all acts made by or against a cestui que use should be good as against him, his heirs, and feoifees in trust," in other words, that all dealings of the cestui que use with the trust property should have precisely the same legal operation, as if the cestui que use had him- self possessed the legal ownership. To what interests the legislature intended this statute to apply has not on all hands been agreed. A feofi'ment mfee to uses was clearly the case primarily intended. Upon a feoffment in tail, it seems no use could have been declared, for a tenant in tail was incapacitated by the statute de donis from executing estates [d). With respect to a feoffment for life to uses, there appears to be no reason upon principle (except so far as the language of the act may be thought to furnish any inference), and certainly there is no objection on the (a) 5 H. 5. 3, 6. (c) Jenk. 244, o. 30. (i) Witham's case, 4 Inst. 87. {d) Co. Lit. 19, b. INTEODUCTION. score of authority, why the cestui que use might not have passed the legal estate by virtue of the statutory power. It has been contended by Mr. Sanders, that on a feoffment for life no use could have been declared, on the ground that, as the tenant for life held of the reversioner, the con- sideration of tenure would have conferred a title to the beneficial interest on the tenant for life himself {a). But this reasoning can have no application where the estate for life was not created, but was merely transferred, for then the assignment of the life estate was not distinguishable in this respect from a conveyance of the fee ; in each case there was no consideration of tenure as between the grantor and grantee, but in each case the services incident to tenure were due from the grantee to a third person (1). It is clear that the statute embraced uses of lands only, and did not extend either to special trusts, or to trusts of chattels : not to special trusts, because the trustee combined in himself both the legal estate and the use, though com- pellable in Chancery to direct them to a particular purpose; and not to trusts of chattels, because the preamble and the statute were addressed to cestui que use and liis Jieirs, and io feoffees in trust. (a) Sand, on Uses, o. 1, s. 6, div. 2. In what cases a use might have been declared upon an estate for life. (1) The state of the law upon this subject appears to have been as follows :— 1. On the creation of an estate for life, had no use been men- tioned on the face of the instrument, the tenant for life had held for his own benefit in compensation of his services ; Perk. s. 535 ; B. N". C. 60 ; Br. Feff. al. Uses, 10 ; and no use could have been averred in contradiction to the use implied. See Gilb. on Uses, 67. 2. Had a use been expressly declared by the deed, the tenant had been bound by the terms on which he accepted the estate ; Perk. s. 537 ; Br. Feff. al. Uses, 10, 40. 3. Unless a rent had been reserved, or consideration paid, in which case a Court of equity would not have enforced the use against the purchaser for valuable consideration ; B. N. C. 60 ; Br. Feff. al. Uses, 40. 4. On the assignment of a life estate a use might have been declared, as on a conveyance in fee. INTEODUCTION. / The mischiefs of the system increasing more and more, 27 h. 8. c. 10. (the statute of Richard occasioning still greater evils than it remedied, from the facility it gave to the cestui que use and his feoffee, vrho had now each the povs^er of passing the legal estate, of defrauding by collusion the bond fide purchaser,) the legislature again interposed its authority by the 27 Hen. 8. c. 10, and thereby annihilated uses as regarded their fiduciary character, by enacting, that " where any person stood seised of any hereditaments to the use, confidence, or trust of any other person, or of any body politic, such person or body politic as had any such use, "confidence, or trust, should be deemed in lawful seisin of the hereditaments in such like estates as they had in use, trust, or confidence" (1). Uses by the operation of this statute became merged in Speoiaitiustsand ■' •"■ trusts of chattels the legal estate ; but special trusts and trusts of chattels excepted from '^ ' -^ -^ the statute. were not within the purview of the act : the former, be- cause the use, as well as the legal interest, was in the trustee ; the latter, because a termor is said to be possessed, and not to be seised of the property. (1) As this statute does operate on tte use of a life estate, but does not Objections to the apply to a seisin in tail, the doctrine of Mr. Sanders, that prior to the doctrine that no 27 Hen. 8. there was no use of a seisin either in tail or for life, seems open J^® '^"^ ■, *I to the following objections : — ^1. That the statute in executing the use of a ^pon ^^ estate in life estate operates on an interest which at the time of the enactment had tail or for life, no existence ; and, 2ndly, That in not executing a use declared on a seisin in taU, it operates differently on two estates that fall within precisely the same principle. To meet the former objection, Mr. Sanders holds the statute of Hen. 8. to be prospective, and distinguishes it from the statute of Richard, which he considers not to be prospective, by observing that the latter employs the word "use'' only, while the former has the additional term of " trust ; " but to this it may be answered, that although the statute of Richard does not contain the word trust, the preamhle does, and that the distinction contended for between use and trust had no existence until a comparatively recent period. See Altham v. Anglesey, Gilb. Eq. Rep. 17. To obviate the latter objection, it is maintained by Mr. Sanders that tenant in tail is within the statute of Hen. 8. ; an opinion which, it is submitted, is directly opposed to the general stream of authority. Go. Lit. 19, b ; Shep, Touch. 509 ; Gilb. on Uses, 11, and Sir E. Sugden's note, ibid. O INTRODUCTION. Introduction of In the room of uses which were thus destroyed as they the modern trust. arose, the judges by their construction of the statute created a novel kind of interest, since distinguished by the name of Trust. Before the statute of Hen. 8. a person, to have had the complete ownership, must have united the pos- session of the land and the use of the profits. The pos- session and the use were even at common law recognised as distinct interests, though the cestui que use was left to Chancery for his remedy {a). On a feoffment to A. to the use of B. to the use of C, the possession was in A., the use in B., and the limitation over to C. was disregarded as surplusage. When the statute of Hen. 8. was passed, it executed the estate in B. by annexing the possession to the use ; but having thus become functus officio it did not, as the act was construed, affect the use over to C. However, Chancery, now that uses were converted into estates, decreed C. to have a title in equity, and enforced the exe- cution of it under the name of a trust (5). wdltin-^""^ " Interests in land," said Lord Hardwicke, " thus be- nfrSe.^""^ came of three kinds: first, the estate in the land itself, ' the ancient common-law fee ; secondly, the use, which was originally a creature of equity, but since the statute of uses it drew the estate in the land to it, so that they were joined and made one legal estate ; and, thirdly, the trust, of which the common law takes no notice, but which carries the beneficial interest and profits in a court of equity, and is stiU a creature of that court, as the use was before the statute" (c). Trusts not with- This ucwly-created interest was held to be so perfectly in statutes re- i ■/ lating to usee. (o) Lit. s. 462, 463 ; Co. Lit. 272, (6) See Hopkins v. Hopkins, 1 b; and see Carter, 197; Porey v. Atk. 591. Juxon, Wels. 135 ; Megod's case, (c) Willet v. Sandford, 1 Ves. aodb. 64. 186 ; Cory ton v. Helyar, 2 Cox, 342. INTRODUCTION. distinct from the ancient use, that the statutory provisions, by which many of the mischiefs of uses had been remedied, as the 19 Hen. 7. c. 16, by which uses had been made hable to writs of execution, and the 26 Hen. 8. c. 13, by which they had become forfeitable to the Crown for treason, were decided to have no application (1). However, the trust took the likeness of the use, conforming itself to the nature of special trusts and trusts of chattels, which had never been disturbed by any legislative enactment. To show how the principles of uses prevailed after the Trusts at first . iii-i ■ n T-n ■ T 1 /• modelled after statute 01 Hen. 8., it was held m the reign ot Jihzabeth [a), the pattern of uses. that the equitable term of a feme covert did not vest ■ in the husband by survivorship, for a trust, it was said, was a thing in privity, and in nature of an action, and no remedy for it but by writ of sudpcena. And a few years after in the same reign it was resolved by all the Judges that a trust was a matter of privity and in nature of a c/iose in action, and therefore was not assignable (3). And in the sixth year of King Charles the First it was decided by the Judges, that as a feme was dowable by act or rule of law, and a Court of equity had no jurisdiction where there was not fraud or covin, the widow of a trustee was entitled beneficially to her dower out of the trust estate (c). But during the reigns of Charles the First and Charles improvements introduced by Lord Notting- (a) Witham's case, 4 Inst. 87 ; [b) Sir Moyl Finch's case, 4 Inst. S. C. Popham, 106, sub nomina 86. Johnson's case. (c) Nash v. Preston, Cro. Car. 190. (1) As the statutes relating to uses have never been repealed, but are -Vftether in some merely inoperative from the want of any subject-matter, the question cases the statutes suggests itself whether they be not still applicable to a use created by a enacted against bargain and sale not by indenture, or by indenture not duly enrolled ; for *tj^''o'^ "/^^te^" ™* as the 27 Hen. 8. o. 10, is prevented from transferring the possession, the old common-law use seems in this case to survive. See Shep. Touch. 508. 10 INTRODUCTION. the Second, and particularly during the Chancellorship of Lord Nottingham, who, from the sound and compre- hensive principles upon which he administered trusts, has been styled the father of equity {a), the Courts gradually threw off the fetters of uses, and disregarding the opera- tion of mere technical rules, proceeded to establish trusts upon the broad foundation of conformity to the course of common law. " In my opinion," said Lord Mansfield, " trusts were not on a true foundation tiU Lord Notting- ham held the great seal ; but by steadily pursuing from plain principles trusts in all their consequences, and by some assistance from the legislature, a noble, rational, and uniform system of law has since been raised ; so that trusts are now made to answer the exigencies of families and all purposes, without producing one inconvenience, fraud or private mischief, which the statute of Hen. 8. meant to avoid" ib). • As to the changes that were successively introduced, it Alterations made o •' in trusts as re- -yjras held with reference to the trustee, that actual conft- gards the trustee. '' ' ■' dence in the person was no longer to be looked upon as essential. A body corporate therefore was not exempted from the writ of subpoena on the ground of incapacity (c) ; and even the. king, notwithstanding his high prerogative, was invested with the character of a Royal Trustee {d), though the precise mode of enforcing the trust against him was not exactly ascertained : to use the language of Lord Northington, " the arms of equity were very short against the Prerogative" {e). The subtle distinctions which had (a) Philips V. Brydges, 3 Ves. 1 Ves. 468; Attorney-General v. 127 ; Kemp v. Kemp, 6 Ves. WJiorwood, 1 Ves. 536. 858. [d) See Pcnn v. Lord Baltimore, (i) Burgess v. Wheate, 1 Ed. 1 Ves. 453 ; Earl of Kildare \. 223. Eustace, 1 Vern. 439. (e) See Green v. Rutherworth, (e) Burgess y. l\nieate,\'E,A.1o&, INTEODUCTION. 11 formerly attended the notion of privity of estate were also gradually discarded. Thus it was laid down by Lord Hale, that tenant in dower should be bound by a trust as claiming in the joer by the assignment of the heir [a] ; and so it was afterwards determined by Lord Nottingham (3) : and when an old case to the contrary was cited before Lord Jeffries, it was unanimously declared both by the bench and the bar to be against equity and the con- stant practice of the •Court (c). A tenant by statute mer- chant was held to be bound upon the same principle, for he took, it was said, by the act of the party, and the remedy which the law gave thereupon {d). But as to tenant by the curtesy. Lord Hale gave his opinion, that one in the post should not be liable to a trust without express mention made hy the party who created it; and therefore tenant by the curtesy should not be bound (e) : but his Lordship's authority on this point was subsequently over- ruled, and curtesy as well as dower was made to follow the general principle. With respect to the cestui que trust, or the person en- ^gt^^'^u'^trast. titled to the subpoena, the narrow doctrine contained under the technical expression of privity began equally to be waived, or rather to be appHed with considerable latitude of construction. " The equitable interest," said Justice RoUe, " is not a thiny in action, but an inheritatice or chattel, as the case may fall out" (/) ; and when once the trust, instead of passing as a chose in action, came to be treated on the footing of an actual estate, it soon drew to {a) Pawletty, Attorney-General, {d) Pawletty. Attorney-Oeneral, Hard. 469. Hard. 467, per Lord Hale. (6) Noel V. Jevon, Freem. 43. (e) S. C. lb. 469. (e) MS. note by an old band in (/) King v. Holland, Styl. 21 ; tbe copy of Croke's Reports in Lin- see Cashurne v. Casburiie, 2 J. & coin's Inn Library, Cro. Car. 191. W. 196. 12 INTRODUCTION. it all the rights and incidents that accompanied property at law : thus, the equity of the cestui que trust, though a bare contingency or possibility {a), was admitted to be assignable {b) ; and Witkam's case, that a husband who survived his vidfe could not, for want of privity, claim her equitable chattel, was declared by the Com't to be no longer an authority (c). So a judgment creditor, it was held by Lord Nottingham, might prosecute an equitable fieri facias {d) ; and though Lord KeejJter Bridgman refused to allow an equitable elegit (e), it is probable, had the question arisen before Lord Nottingham, his Lordship would in this, as in other cases, have acted on a more liberal principle; at all events, the creditor's right to relief in this respect has since been established by the current of modern authority (/). Again, a trust was decided by Lord Nottingham to be assets in the hands of the heir {ff) ; and though Lord Guildford afterwards overruled this decision Qi), yet Lord Nottingham's view of the subject appears to have been eventually established {i). Curtesy also was permitted of a trust estate, though the widow of cestui que trust could never make good her title to dower (^) ; " not," said Lord Mansfield, " on reason or principle, but because wrong determinations had misled in too many instances to be then set right " © ; or rather, as Lord Redesdale thought, because the admission of dower would («t) Warmstrey v. Tanfield, 1 Ch. (e) Pratt v. Colt, Freem. 139. Re. 29 ; Lord Cornhury v. Middle- {/) See infra, ton, 1 Ch. Ca. 208; Gorini/ v. (ff) Grey v. Colville, 2 Ch. Ee. Bicherstaff, 1 Ch. Ca. 8. 143. (J) Courthope v. Heyman, Cart. {h) Creed y. Covile, 1 Vern. 172. 25, per Lord Bridgman. (i) See infra. (c) Einy v. Holland, Al. 15. [k) Colt v. Colt, 1 Ch. Re. 254. {d) Anon, case, cited Sahh v. {I) Burgess v. Wheate, 1 Ed. Wastall, 1 P. W. 445 ; Pit v. Hunt, 224. 2 Ch. Ca. 73. INTRODUCTION. 13 have occasioned great inconvenience to pnrchasers — a mischief that in the case of curtesy vras not equally to be apprehended («). Lord Mansfield was for carrying the analogy of trusts to Lord Mansfield's . . doctriBes. legal estates beyond the legitimate boundary. " A use or trust," he said, " was heretofore understood to be merely as an agreement, by which the trustee and all claiming from him in privity were personally liable to the cestui que use, and all claiming under him in like privity ; nobody in the post was entitled under or bound by the agreement : but now the trust in this Court is the same as the land, and the trustee is considered merely as an instrument of conveyance " {IS). And in the application of this principle his Lordship argued, that the estate of the cestui que trust was subject to escheat, and that, on failure of heirs of the trustee, the lord who took by escheat was boxmd by the trust. But to these propositions the Courts of equity have principles go- never yet assented. The limit to which the analogy of the present day. trusts to legal estates ought properly to be allowed was well enunciated by Lord Northington in the case of Burgess v. Wlieate. " It is true," he said, " this Court has considered trusts as between the trustee, cestui que trust, and those claiming under them, as imitating the possession ; but it would be a bold stride, and, in my opinion, a dangerous conclusion, to say therefore this Court has considered the creation and instrument of trust as a mere nullity, and the estate in all respects the same as if it still continued in the seisin of the creator of the trust, or the person entitled to it : for my own part / know no instance where this Court has permitted the creation of the trust to affect the (a) See infra. (6) Burgess v. Wheats, 1 Ed. 226. 1^ ^ INTEODUCTION. right of a third person' [a) ; that is, to illustrate the principle by instances, a tenant by the curtesy, or in dower, or by elegit, as claiming through the cestui que trust or trustee, though in the post, is bound by and may take advantage of the trust ; but, according to Lord Northington, the lord, who comes in by escheat is not in any sense a privy to the trust, and therefore can neither reap a benefit from it on failure of heirs of the cestui que trust, nor is bound by the equity on failure of heirs of the trustee ij)). (a) Burgess v. Wheate, 1 Ed. 842 ; but whether a lord taking the 250, 251. legal estate by escheat shall or not (6) It is clear that the lord cannot be bound by the trust, has never acquire an equitable interest by been decided. See Evans v. Brown, escheat ; Burgess v. Wheate, 1 Ed. 5 Beav. 114 ; Viscount Downe v. 177 ; Cox y. Parher, 2 Jur. N. S. Morris, 3 Hare, 409. CHAPTER I. DEFINITION OF A TRUST. As the doctrines of trusts are equally applicable to real and DeEnitionofa personal estate, and the principles that govern the one will be found, mutatis mutandis, to govern the other, we cannot better describe the nature of a trust generally, than by adopting Lord Coke's definition of a use, the term by which, before the Statute of Uses, a trust of lands was designated {a). A trust, in the words applied to the use, may be said to be " A con- fidence reposed in some other, not issuing out of the land, but as a thing collateral, annexed in privity to the estate of the land, and to the person touching the land, for which cestui que trust has no remedy hut hy subpoena in Chancery " (&). 1. It is a confidence ; not necessarily a confidence expressly A confidence, reposed by one party in another, for it may be raised by im- plication of law: and the trustee of the estate need not be actually capable of confidence, for the capacity itself may be supplied by legal fiction, as where the administration of the trust is committed to a body corporate ; but a trust is a con- fidence, as distinguished from jus in re and jus ad rem, for it is neither a legal property, nor a legal right to property (c). 3. It is a confidence reposed in some other ; not in some other Reposed in some than the author of the trust, for a person may convert himself °* ^^' into a trustee, but in some other than the cestui que trust ; for as a man cannot sue a subpoena against himself, he cannot be said to hold upon trust for himself ((i). If the legal and (o) Burgess v. Wheate, 1 Ed. (c) Bacon on Uses, 5. See Waine- 248, per Lord Keeper Henley ; wright v. Elwell, 1 Mad. 634. Lloyd V. Spillet, 2 Atk. 150, per {d) Goodright v. Wells, Dougl. Jiord Hardwicke. 747, per Lord Mansfield. (6) Co. Lit. 272, b. estate. 16 MEEGEE. [CH. I. equitable interests happen to meet in the same person, the equitable is forever absorbed in the legal; as if A. be seised of the legal inheritance ex parte paternd, and of the equitable ex parte maternd, upon the death of A. the heir of the maternal line has no equity against the heir of the paternal (a). And the same rule prevails as to leaseholds for lives (b). If, for instance, the legal estate in a freehold lease be vested in a husband and his heirs, in trust for the wife and her heirs, the child who is the heir of both, and takes the legal estate ex parte paternd, and the equitable estate ex parte maternd, will, by the merger of the equitable in the legal, become seised both at law and in equity ex parte paternd, and the sub- sequent devolution will be regulated accordingly. How far the g^t this rule holds only where the legal and equitable eqiutable merges _ <= j. in the legal estates are co-extensive and commensurate; for if a person be seised of the legal estate in fee, and have only a partial equitable interest, to merge the one in the other might occasion an injurious disturbance of rights. Thus before the Fiaes and Becoveries Act (c), if lands had been conveyed to A. and his heirs, in trust for B. in tail, with remainder to A. in fee, had the equitable remainder limited to A. been converted into a legal estate, it would not have been barrable by B.'s equitable recovery ((i). Lord Alvanley upon this case observed — "It was maintained, that where there is in the same person a legal and equitable interest, the former absorbs the latter. I admit that where he has the same interest in both, he ceases to have the equitable estate, and has the legal estate, upon which the Court will not act, but leaves it to the rules of law ; but I do not by any means admit, that, where he has the whole legal estate and a partial equitable estate, the latter sinks into the former. It has been very ably argued, that there seems an absurdity in saying he had an equitable remainder for himself, (a) Selby v. Alston, 3 Ves. 339 ; (b) Creagh v. Blood, 3 Jones & Ooodright v. Wells, Dougl. 747, Lat. 133. per Lord Mansfield ; Wade v. Paget, (c) 3 & 4 W. 4. c. 74. 1 B. C. C. 363; S. C. 1 Cox, 74; {d) Philips v. Brydges, 3 Ves. Philips v. Brydges, 3 "Ves. 126, per 120; Pohinson v. Cuming, Rep. t. Lord Alvanley ; Finch's case, 4 Talb. 164 -,8.0.1 Atk. 473 ; and Inst. 85, 3rd resolution ; Harmoodv. see Boteler v. AlUngton, 1 B. C. C. Oglander, 8 Ves. 127, perhovi. Eldon. 72 ; Merest v. James, 6 Mad. 118. OH. I.] MEBGEB. 17 ■where he had the whole legal fee ; hut it is much more absurd to say he had a legal remainder. It is impossible — it would be a solecism— ^to state to a lawyer that he could have an estate in fee with a remainder in tail expectant in law upon it ; but there is no such absurdity in saying he might have the whole legal estate, and a limited interest in the beneficial interest of that estate. When I am told that legal and equitable estates cannot subsist in the same person, it must be under- stood always with this restriction — that it is the same estate in law and in equity : for then there is no person upon whom the Court can act — the equitable estate is absorbed — the better phrase is, that it no longer exists ; but when for the purposes of justice it is necessary it should exist, that circumstance shall not put a party entitled into a worse condition (a)." Again, in Habergham v. Vincent (b), a testator devised copyhold lands to five trustees, upon trust to convey the estate to certain uses, which failed, with an ultimate limitation to the heirs of the surviving trustee. On a bill filed by the heir-at-law of the testator against the surviving trustee. Lord Loughborough observed — "It is impossible to contend that under the limitation to the right heir of the surviving trustee, the trustee can take the fee beneficially.'' But on a sub- sequent day, he added — "I am not so clear that if anything passed under the remainder to the right heir of the surviving trustee, it would not be the fee to the trustee himself. Other- wise I must declare him a trustee for his own right heir. I doubt whether a man having the legal estate himself could be a trustee of the equitable interest for his own right heir. I take it a man owes no duty to his own heir-at-law." But eventually the Court arrived at a different conclusion, and a settlement was directed, so as to give the ultimate remainder to the right heir of the trustee as a purchaser. In the case of a mortgage in fee it is said, a man and his in what sense heirs are trustees for himself and his executors (c) ; the meaning i^^rustee fw is that, until a release, or foreclosure of the equity of redemp- ^^^^^^ ^^^ tion, the interest of the mortgagee is of the nature of per- (o) Philips V. Brydges, 3 Yes. (c) Kendal v. MiefieU, Barn. 50, 125 — 127. per Lord Hardwicke, (6) 2 Ves. jun. 204. 18 PEIVITY. fCH. I. Trust not issuing out of the land, tut collateral to it. Annexed in privity to the estate. Extent of the term privity of estate. sonalty, and passes on his death to his personal representative ; the heir, therefore, takes the estate upon trust for the executor. A release or foreclosure, unless it happen in the lifetime of the mortgagee, comes too late after his decease to alter the character of the property, for, as the tree falls, so it must lie (a) (1). 3. A trust is not isswing out of the land, but as a thing col- lateral to it. A legal charge, as a rent, issues directly out of the land itself, and therefore hinds every person, vs^hether in the per or post, whether a purchaser for valuable consideration or volunteer, whether with notice or without ; but a trust is not part of the land, but an incident made to accompany it, and that not inseparably, but during the continuance only of cer- tain indispensable adjuncts ; for — ■ 4. A trust is annexed in privity to the estate, that is, must stand or fall with the interest of the person by whom the trust is created ; as, if the trustee die and leave no heir, it was the opinion of Lord Northington that the lord who takes by escheat is not a privy to the estate upon which the trust was ingrafted, and therefore will not be bound by it, but will hold beneficially (6). And upon the same principle, if the trustee be disseised, the tortious fee is adverse to that impressed with the trust, and therefore the equitable owner cannot sue the dis- seisor in Chancery, but must bring an action against him at law in the name of the trustee (c). Duriag the system of uses, and also while trusts were in their infancy, the notion of privity of estate was not extended to tenant by the curtesy, or in dower, or by elegit, or ia fact to any person claiming by operation of law, though through the trustee ; but in this respect the landmarks have since been {a) Canning v. Hichs, 2 Ch. Ca. 187 ; 8. C.l Vern. 412 ; Tabor v. Grover, 2 Vern. 367 ; -S. C. 1 Eq. Oa. Ab. 328 ; Clerhson v. Bowyer, 2 Vern. 66 ; Gohe v. Earl of Car- lisle, cited ib. ; Wood v. Nosworthy, cited Awdley v. Awdley, 2 Vern. 193. (6) See Viscount Downe v. Morris, 3 Hare, 394 ; Evans v. Brown, 5 Beav. 114. (c) Finch's case, 4 Inst. 85, 1st resolution ; and see Gilbert on Uses, edited by Sir E. Sugden, p. 429, note 6. (1) But if tbe heir foreclose, or obtain a release of the equity of redemp- tion, it is said he may keep the estate, and pay the executor the debt only. Clerhson v. Bowyer, 2 Vern. 67, per Cur. But quasre. CH. I.] PRIVITY. ]9 carried forward, and at the present day a trust follows the estate into the hands of every one claiming under the trustee, whether in the per or post. A lord by escheat, as Lord Northington thought, would be still an exception; and a disseisor is unquestionably not bound, for he asserts a new and adverse estate. 5. A trust is annexed in privity to the person. To entitle the Trust annexed in cestui que trust to relief in equity it is not only necessary he p^J.^^ *° ^^^ should prove the creation of the trust, and the continuance of the estate supporting it, but should also evince that the assign is personally privy to the equity, and therefore amenable to the subpoena. If it can be shown that the assign had actual notice, then, whether he paid a valuable consideration or not, he is plainly privy to the trust, and bound to give it effect ; but if actual notice cannot be proved, then, if he be a volunteer, the Court will still affect him with notice by presumption of law ; but if he be a purchaser, the Court must believe, that, having paid the full value of the estate, he was ignorant, at the time he purchased, of another's equitable title. A purchaser for valuable consideration without notice is therefore the only assign against whom privity annexed to the person cannot at the present day be charged. 6. The cestui que trust has no remedy hut by subpoena in No remedy of the Chancery ; and by Chancery must be understood, not exclu- tat in Chancery, sively the court of the Lord Chancellor, but any court invested with an equitable jurisdiction, as opposed to common-law courts (a), and spiritual courts (6), neither of which have any (a) Short v. MelKsh, 2 Atk. 612, the Court acted. In Moper v. Sol- per Lord Hardwioke ; Allen v. land, 3 Ad. & Ell. 99, a cestui que Imlett, P. L. Holt's Eep. 641 ; Hoi- trust recovered upon an action of land's case, Styl. 41, per RoUe, J. ; debt for money had and received on Queen v. Trustees of Orton Vicarage, proof of the admission by the trustee 14 Q,. B. Re. 139; Vanderstegen v. that he had a balance in hand for Witham, 6 M. & W. 457 ; Bond v. the plaintiff. iV"Mrse,10Q.B.Ee.244. InTAeQweere (6) Miller's case, 1 Freem. 283 ; V. Abrahams, 4 Q,. B. Re. 157, the King v. Jenkins, 3 Dowl. & Ryl. Court professed to proceed upon the 41 ; Farrington v. Knightly, 1 P. legal right, so that the principle W. 549, per Lord Parker ; Edwards was not disturbed, though there v. Graves, Hob. 265 ; Witter v. may be a question how far the facts Witter, 3 P. W. 102, per Lord justified the assumption upon which King. 2 20 COURTS OF EQUITY. [CH. I. cognisance in matters of trust. A common-law court could never indeed, from the defective nature of its proceedings, have specifically enforced a trust ; but at one time it affected to punish a trustee in damages for breach of the implied con- tract (a) : an exercise of authority, however, clearly extra- provincial, and long since abandoned (&). Should a spiritual court attempt to meddle with a trust, the Court of Queen's Bench might be moved to issue a prohibition (c). (a) Megod's case, Godb. 64 ; lish, 2 Atk. 612, per Lord Hard- Jevon V. Bush, 1 Vem. 344, per ynoke; Holland's case, &ty\. il, per Lord Jeffries ; Smith v. Jameson, EoUe, J. ; Allen v. Imlett, F. L. 5 T. E. 603, per Buller, J. ; and see Holt's Eep. 14. 1 Eq. Ca. Ab. 384, D. {a). (c) Petit v. Smith, 1 P. W. 7 ; (6) Barnardiston v. Soame, 1 Edwards v. Freeman, 2 P, "W. 441, State Trials, 443, Harg. ed., per per Sir J. Jekyll; Barker v. May, Chief Justice North ; Sturt v. Mel- 4 M. & E. 386. CHAPTER II. CLASSIFICATION OF TRUSTS, The first and natural division of trusts is into simple and Trusts simple or special. ^P^"'^'- The simple trust is where property is vested in one person simple trust. upon trust for another, and the nature of the trust, not being qualified hj the settlor, is left to the construction of law. In this case the cestui que trust has jus hahendi, or the right to be put in actual possession of the property, and jus disponendi, or the right to call upon the trustee to execute conveyances of the legal estate as the cestui que trust directs. The special trust is where the machinery of a trustee is intro- Special trust. duced for the execution of some purpose particularly pointed out, and the trustee is not, as before, a mere passive depositary of the estate, but is called upon to exert himself actively in the execution of the settlor's intention ; as where a conveyance is to trustees upon trust to sell for payment of debts. Special trusts have again been subdivided into ministerial Special trusts (or instrumental) and discretionary. The former, such as mental or discre- demand no further exercise of reason or understanding than ti™ary. every intelligent agent nlust necessarily employ; the latter, such as cannot be duly administered without the application of a certain degree of prudence and judgment. A trust to convey an estate must be regarded as minis- terial; for, provided the cestui que trust be put in possession of the estate, it is perfectly immaterial to him by whom the conveyance is executed. Mr. Fearne was of opinion, that even a trust for sale should r]ij.„gt ^^ ggjj j^^j^ be considered as ministerial ; " for the price," he said, " is not ^ ?^^' ^'5*™^ J° arbitrary, or at the trustee's discretion, but to be the best that can be gotten for the estate, which is a fact to be ascertained 23 THE DIPFEEENT KINDS OF TRUSTS. [CH. n. Mixture of trust and power. Distinguislied from trust with power annexed. Trusts lawful and unlawful. independently of any discretion in the trustee" {a). But there is much room for judgment in the manner of proceeding to a sale, and the precautions that are taken wiU. have a material influence upon the price. A fund in trustees upon trust to distribute among such charitable objects as the trustees shall think fi.t.(&), or an advowson conveyed to them upon trust to elect and present a proper preacher (c), is clearly a discretionary trust ; for the selection of the most deserving objects in the first instance, and the choice of the best candidate in the second, is a matter calling for serious deliberation, and not to be determined upon without due regard to the merits of the candidates, and all the particular circumstances of the case. A trust " to distribute at the discretion of the trustees " is frequently designated in thebooks as a mixture of trust and power (d), that is,' a trust of which the outline only was sketched by the settlor, while the details were to be filled up by the good sense of the trustees. The exercise of such a power is impe- rative, while the mode of its execution is matter of judgment and discretionary. A mixture of trust and power is not to be confounded with a common trust to which a power is annexed ; for, in the latter case, the trust itself is complete, and the power, being but an accessory, may be exercised or not, as the trustee may deem it expedient ; as where lands are limited to trustees with a power of varying the securities : for in such a case the power forms no integral part of the trust, but is merely collateral and sub- sidiary, and the execution of it, in the absence of fraud, cannot be compelled by application to the Court. Again, trusts may be divided, with reference to the object in view, into lawful and unlawful. The former, such as are directed to some honest purpose, as a trust to pay debts, &c., which are called by Lord Bacon Intents or Confidences, and will be administered by the Court. The latter are trusts (a) Fearne's P. "W. 313. (6) Attorney- General v. Glee/, 1 Atk. 356 ; Ilihlard v. Lambe, Amb. 309; Cole v. IVade, 16 Ves. 27; Gower v. Mainwaring, 2 Ves. 7. (c) Attorney- General v. Scott, 1 Ves. 413 ; Potter v. Chapman,, Amb. 98. {d) Cole V. Wade, 16 Ves. 43; Gower v. Mainwaring, 2 Ves. 89. CH. n.] THE DIFFEKENT KINDS OP TRUSTS. 23 created for the attainment of some end contravening the policy of the law, and therefore not to be sanctioned in a forum pro- fessing not only justice but equity, as a trust to defraud cre- ditors or to defeat a statute. Such are designated by Lord Bacon as Frauds, Covins, or Collusions {a). Another division of trusts is into public and private. By Trusts public public must be understood such as are constituted for the benefit either of the public at large or of some considerable portion of it answering a particular description. To this class belong all trusts for charitable purposes, and indeed public trusts and charitable trusts may be considered as synonymous expres- sions (6). In private trusts the beneficial interest is vested absolutely in one or more individuals who are, or within a certain time may be definitively ascertained, and to whom, therefore, collectively, unless under some legal disability, it is competent to control, modify, or determine the trust; the duration of trusts of the latter kind cannot be extended by the wiU of the settlor beyond the limits of legal limitations, viz., a life or lives in being with an ingraftment of twenty-one years. But the objects of a public trust are an uncertain and fluctuating body, and the trust itself is of a permanent and lasting character, and is not confined within the limits pre- scribed to a settlement upon a private trust (c). (a) Bac. on Uses, 9. Attorney- General v. Corporation of (6) See Attorney- General v. As- Shrewsbury, 6 Beav. 220, pinall, 2 M. & Cr. 622 ; Attorney- (c) Christ's Hospital v. Grainger, General v. Keelis, 2 S. & S., 76; 1 Mac. & Gord. 460. CHAPTER III. OF THE PARTIES TO THE CREATION OP A TRUST. Now that we have defined and distributed trusts, we shall next enter upon the creation of them ; first, by the act of a party, and secondly, by operation of law. Upon the subject of the former class, we propose to treat. First, Of the necessary parties to the creation of a trust ; Secondly, "What property may be made the subject of a trust; Thirdly, With what formahties a trust may be created ; Fourthly, What may be the object or scope of a trust ; and Fifthly, In what language a trust may be declared. In this chapter, we shall consider the necessary parties to a trust. SECTION I. as THE SETTLOK. The creation of a trust implies the presence of three persons, or at least of three characters, namely, — 1, a settlor; 3, a trustee ; and 3, a cestui que trust. General power of As the creation of a trust is a modification of property in a crea ing a nis . pg^j.^.jg^2g^j. form, it may be laid down as a general rule that whoever is competent to deal with the legal estate, may vest it in a trustee for the purpose of executing the settlor's in- tention. The cro-wn. The Sovereign, as to his private property, may, by letters patent, grant it to one person upon trust for another (a). But the trust must appear upon the face of the letters patent ; for if the grant be expressed to be made to one person, a trust in favour of another cannot be proved by parol in favour of (o) Bao. on Uses, 66. CH. m. S. l.J THE SOVEREIGN.— CORPOBATIONS. 35 another, for this would contradict the nature of the instru- ment which purports to be an act of bounty to the grantee (a). However, if the grant be to A. and his heirs with the limitation of a beneficial interest to A. for life only, a trust of the re- mainder will not pass to the- grantee, but will result to the crown, for the presumption of bounty as to the whole is rebutted by the declared intention as to the part (&). All prizes taken in war vest in the sovereign, and rtiay by Prizea. the royal warrant be granted to trustees upon trust to dis- tribute in a prescribed form amongst the captors; but an instrument of this kind is held not to vest an interest in the cestuis que trust which they can enforce in equity, but to re- semble a power of attorney for reducing the prizes into pos- session, or a creditor's deed to which the creditors are not parties, and may at any time be revoked or varied at the pleasure of the sovereign before the general distribution (c). The crown m.ay loj will bequeath its private personal pro- WiU of the sove- reign, perty to one person in trust for another, but the will must be in writing and under the sign manual (d), though the Ecclesiastical Court has no jurisdiction to admit it to pro- bate (e). As to the power of Corporate Bodies to create a trust, it Corporations, was competent to them, before the late Municipal Corporations Act(/), (subject as to ecclesiastical corporations to the restrain- ing statutes of Elizabeth), to alienate-, their property, and as a consequence to vest it in a trustee (g). But now civil cor- porations are themselves trustees of their property, for the public purposes prescribed by the Municipal Corporations Act, and are debarred from ahenating their real (h) or personal estate (i) without the consent of the Lords of the Treasury. A Feme Covert may create a trust of real estate, but it must Feme oovert. be with the consent of her husband, and there must be all the attendant formalities required by the Fines and Eecoveries (a) Fordyee v. Willis, 3 B.C.C. 577. (/) 5 & 6 W. 4. c. 76. (6) Bao. on Uses, 66. (g) Colchester v. Lowten, 1 V. & (c) Alexander v. Buhe of Wei- B. 226. lington, 2 R. & M. 35. (A) 5 & 6 W. 4. c. 76, s. 94. (d) 39 & 40 G. 3. 0. 88, s. 10. («) Attorney - General v. As- (e) "Williams on Executors, 13, pinall, 2 M. & Cr. 613 ; Attorney- 5th ed. General v. Wilson, Cr. & Ph. 1. 26 FEMES COVEET. [CH. in. S. 1. Act. It is somewhat singular that by our law a married woman is under a total disability as to her choses en actio%. The husband, however, may create a trust of them sub modo ; that is, if they be reduced into possession during the coverture, the settlement will be unimpeachable, but if they remain choses en action at the death of the husband, the wife will be entitled to them by survivorship. And the husband may, subject to the wife's equity to a settlement {a), create a trust of the wife's equitable chattel real (6), unless the chattel be of such a nature that it cannot possibly fall into possession during the coverture (c). Separate use. As regards property settled to the separate use of a feme covert, without a clause against anticipation, she is to all intents and purposes considered a feme sole, as if real estate be conveyed to a trustee and his heirs, or if personal estate be vested in a trustee and his executors upon trust for the feme covert, for her sole and separate use, and to be at her sole disposal as to the fee-simple in the one case and the absolute interest in the other, she has the entire control and may exercise her ownership or implied power of appointment by creating a trust, extending even beyond the coverture. If the feme covert be tenant for life only to her separate use without any clause against anticipation, she has full power to make a settlement of her life estate. Where the power of anticipation is restrained the feme covert of course can make no disposition of the property, except as to the annual produce which has actually become due. Infanta. If ^Q Infant before the Fines and Eecoveries Act had levied a fine or suffered a recovery, he might also have declared the uses(ci), and unless the fine or recovery had been reversed by him during his nonage he had been bound by the decla- ration ie), but deeds have now been substituted for fines and recoveries, and every deed of an infant, whether under the act or independent of it, either is void or may be avoided. An infant at the present day might make a feoffment and at the same time declare a use upon it, and both feoffment and use [a) Hanson v. Keating, 4 Hare, 1. (J) Donne v. Hart, 2 E. & My. 360. (c) Duherhj v. Bay, 16 Beav. 33. \d) Gilb. oa Uses, 41, 245, 250. (e) lb. 246. OH. in. S. 1.] INFANTS. — LUNATICS.— ALIENS. 37 would be voidable only and not void (a), and by analogy it Hiigbt be held that the infant can also engraft a trust upon the legal estate, but a court of equity would never allow any equitable interest to be enforced against the infant to his prejudice, but would give him the same power of avoidance over the equitable as he had over the legal estate, and if the infant has died without having avoided the trust, it is con- ceived that a court wiU still investigate the transaction, and see that no unfair advantage had been taken (&). An infant may by the custom of Kent for valuable considera- Custom of Kent, tion certainly, and according to the better opinion, without value (c), make a feoffment at the age of fifteen, and upon such feoffment he may declare uses (d). But a court of equity would no doubt confine such a custom within its narrowest bounds, or as trusts have sprung into being since the statute of Hen. 8. might hold the custom to be void as of recent growth in respect of the equitable interest, and at all events would not allow the custom to be made an instrument of fraud. Before the late Wills Act (e) an infant of the age of fourteen years might have bequeathed his personal estate and have created a trust of it, but now, as regards personal as well as real estate, every testator must be of the age of twenty-one years. Lwnatics or Idiots might, before the Fines and Recoveries Lunatics. Act, have levied a fine or suffered a recovery, and the uses declared would have been valid until the fine or recovery had been reversed. But now fines and recoveries have been abolished, and the deed of a lunatic or idiot is ipso facto void (/). The feoffment of a lunatic or idiot is voidable by the heir only {g). However, should a lunatic or idiot engraft a declaration of trust upon a feoffment a court of equity would have jurisdiction to set it aside Qi) ; though generally it declines to interfere even in this case as against a purchaser for valuable consideration without notice of the lunacy or idiocy (i). (o) Bao. on Uses, 67 ; Bao. Ab. lunatic, see Molton v. Camroux, 2 Uses, E. Esch. Rep. 487, 4 Bxeh.. Eep. 17. (6) See Cr. Dig. vol. iv. p. 130. {g) Co. Lit. 247, b. (e) Robinson on Gavelkind. [h) See Cruise, vol. iv. p. 130, vol. [d) Gilb. on Uses, 250. v. p. 253 ; Niel v. Morley, 9 Ves. 478. (e) 1 Viet. c. 26. (J) See Price v. Berrington, 3 (/) But as to the contracts of a Mao. & Gord. 486. 28 TEAITOES, FELONS, OUTLAWS. [CH. IH. S. 1. ■^li™' An Alien may acquire real estate by purchase, though he cannot take it by descent or operation of law, and if he pu:;- chase it he may hold it until office found, but cannot give an alienee a better title than he had himself. An alien, therefore, can only create a trust of real estate until the Crown steps in. As to personal estate an alien enemy cannot even hold it, but an alien friend may be the lawful owner of chattels personal, and may exercise the ordinary rights of proprietor- ship over them, and consequently may create a trust. Traitors, felons, With regard to Traitors, Felons, and Outlaws, a distinction must be taken between real and personal estate. In high treason, lands, whether held in fee simple, or fee tail {a), or for life, are forfeited absolutely to the crown. In petty treason and murder (6), lands in fee (subject to the year, day, and waste of the sovereign), escheat to the lord of the fee, and lands in tail are forfeitable to the Crown for the life of the offender, and on his death devolve on the issue in tail. Outlawry for treason, petty treason, or felony, is equivalent to attainder, and the lands of the outlaw are forfeited, or escheat, exactly in the same manner as if a judgment had been pronounced (c). In treason, petty treason, and felony, or in outlawry for those crimes, the forfeiture works from the time of the offence, and therefore from that date no trust can be created as to lands : but the goods and chattels of traitors, felons, and outlaws, are forfeited only from the time of conviction, or declaration of outlawry, and therefore up to that period the traitor, felon, or outlaw, may vest his goods and chattels in a trustee upon trusts. However, the law will not allow this power of disposi- tion to be exercised coUusively for the purpose of defeating the just rights of the crown {d) ; but the traitor, felon, or outlaw may sell the goods for valuable consideration (e). And so he may assign the property upon trust to secure the hojid fide debt of a creditor (/) ; but the existence of the debt must be [a) 26 Hen. 8. o. 13. See 2 Bao. ' {d) See Anon. 2 Sim. N.S. 71. Ab. 576, 580. (e) Hawk. Pleas of the Cr., book (6) See 54 G. 3. e. 145. 2, o. 49. (c) See Co. Lit. 390, b; Hollo- {/) Perkins v. Bradley, 1 Ha. way's case, 3 Mod. 42; King v. 219; Whitaker y. Wisbey, 12 C. h. Ayloff, 3 Mod. 72. K. 44. CH. m. S. l.J BANKRUPTS, INSOLVENTS. 29 actually proved, and the mere recital of it in the security will not be sufficient (a). An assignment upon a meritorious consideration, as a bargain and sale to a trustee for the purpose of making provision for a son, will not support the deed (6). " Though a sale," said Lord Holt, " bond fide, and for a valuable consideration, had been good, because the party had a property in the goods till conviction, and ought to be reasonably sustained out of them, yet such a conveyance as this could not be intended to any other purpose than to prevent a forfeiture and defraud the king ; " and added, " that there was a fraud at common law in such a case " (c). OutlaTny. Outlawry in misdemeanours and civil actions is a contempt of Court, and works a forfeiture of the profits of the offender's lands for his life, and of his goods and chattels, whether real or personal, absolutely. The person so outlawed, therefore, cannot from that time affect the pernancy of the profits of his real estate, nor make any settlement of his personal estate. If a man be declared a bankrupt, all the real and personal Bankrupt, estate to which he may acquire a title up to the time of obtain- ing his certificate, becomes vested in his assignees {d) ; but the surplus after payment of his debts still belongs to him, and of this interest he may create a trust. In the case of an insolvent, all the real and personal estate Insolvent, "which may be vested in or may accrue to him up to the date of the final discharge, is transferred by the act to his assignees (e) ; and as to subsequently acquired property, the assignees may, by virtue of the judgment to be entered up against him, at any time divest it out of the insolvent by taking out execution, but they must first obtain the order of the Court (/). An insolvent, therefore, can make no settlement of property which he has acquired before the final discharge, and the claim of the assignees, should it be ever advanced, would by the Hen of the judgment over-ride a trust of any real or leasehold estate to which he might have become entitled even subsequently to the final discharge. (a) Shaw v. Bran, 1 Stark. 320. {d) 12 & 13 Viot. e. 106, ss. 141, (6) Jones v. Ashurst, Skinn, 142. 357. (e) l&2Viot. e. 110,3.37, (c) 4 Black. Comm. 387, 388. {/ 1 & 2 Viot. c. 110, s, 87. 30 TRUSTEES. — THE CROWN. [CH. HI. S. 2. SECTION II. WHO MAT BE A TEtTSIEE. The crown. The Sovereign may sustain the character of a trustee, so far as regards the capacity to take the estate, and to execute the trust; but great doubts have been entertained whether the subject can, by any legal process, enforce the performance of the trust. The right of the cestui que trust is sufficiently clear, but the defect lies in the remedy (a). The Court of Chancery has no jurisdiction over the king's conscience, for that it is a power delegated by the king to the chancellor to exercise the king's equitable authority betwixt subject and subject (&). The Court of Exchequer has, in its character of a court of revenue, an especial superintendence over the royal property; and it has been thought that through that channel a cestui que trust might indirectly obtain the relief to which, on the general principles of equity, he is confessedly entitled. No such juris- diction, however, appears to have been known when Lord Hale was chief baron (c). Lord Hardwicke once observed in Chancery, " I will not decree a trust against the crown in this Court, but it is a notion established in courts of revenue by modern decisions that the king may be a royal trustee " (d) ; but the doctrine was still unsettled in the time of Lord Northing- ton (e). And in a recent case (/), it was decided that though the Court of Exchequer could decree the possession of the property according to the equitable title, it had no jurisdiction to direct the crown to convey the legal estate. The subject may undoubtedly appeal to the sovereign by presenting a peti- (o) PawlettY. Attorney- General, (d) Perm v. Zord Baltimore, 1 Hard. 467, 469 ; Burgess v. Wheate, Ves. 453 ; and see Reeve v. Attorney- 1 Ed. 265 ; Kildare v. Eustace, 1 General, 2 Atk. 224 ; Sovenden v. Vem. 439. Zord Annesley, 2 Sch. & Lef. 617. (6) Said by counsel in Pawlett v. (e) See Burgess v. Wheate, 1 Ed. Attorney- General, Haid. 468. 255. (c) See Pawlett v. Attorney- (y) Hodge v. Attorney- General, General, Hard. 467, 469 ; and see 3 Y. & C. 342. Wike's case, Lan. 54. CH. ni. S. 2.] COEPOEATIONS. BANK OF ENGLAND. 31 tion of right (a), and it cannot be supposed that the fountain of justice would not do justice (b). A corporation could not have been seised to a use, for, as Corporation, was gravely observed, it had no soul, and how then could any confidence be reposed in it? But the technical rules upon which this doctrine proceeded, have long since ceased to operate in respect of trusts ; and at the present day every body corporate is compellable in equity to carry the intention into execution (c). Indeed, every corporation since the Municipal Corporations Act {d) has become a trustee, for a corporation has now no longer the power to alien and dispose of its pro- perty, except with the sanction of the lords of the Treasury, but is bound to apply it to certain public purposes pointed out by the Act ; and if there be any misapplication of that fund, there lies a remedy in Chancery by information (e). But although the Court has ample jurisdiction to oblige a corpora- tion to the observance of good faith, and the property already vested in a corporate body will be administered upon the trust attached to it, yet by the statute of mortmain no real estate can now be conveyed to a corporation upon any trust without the licence of the crown. However, there is no objection to an assignment or bequest of pure personal estate to a corporation upon a trust. The Bank of England cannot directly or indirectly be made Bank of England, a trustee of stock. The corporation manages the accounts of the public funds, and is charged with the care of paying the dividends; but refuses, and cannot be compelled by law, to (a) As to the transfer of tke equity wood, 1 Ves. 536 ; Attorney- General jurisdiction of the Court of Exohe- v. Mayor of Stafford, Bam. 33 ; quer to the Court of Chancery, see Attorney - General v. Foundling 5 Vict. c. 5, s. 1 ; and Attorney- Hospital, 2 Ves. jun. 46 ; Attorney- General V. Corporation of London, General v. JEarl of Clarendon, 17 8 Beav. 270, 1 H. of L. Ca. 440. Ves. 499 ; Attorney-General v. (5) Scounden v. Hawley, Comb. Caius College, 2 Keen, 165. 172, per Dolben, J. ; Reeve v. At- ( seems to be generally agreed that, at common law, a feoffment Effect of feoff- r i i r •> o . mert, or. delivery of lands (k), or an actual delivery of goods and chattels (Z), is an act of so great solemnity, that it serves to carry the present possession, and is voidable only, and not void. Effect of delivery Where the property is of an incorporeal nature, as the de- of a deed. . . . livery of the thing itself is impossible, the common law has Substituted the kindred precaution of delivery of the deed. The effect of a deed delivered by an infant has been much disputed ; by some it has been held to be absolutely null and void {in), (a) Co. Lit. 3, b ; and see Mr. (i) See Grange v. Tivmg, 0. Hargrave's note (4), ib. But acts Bridg. 109 ; Hearle v. Greenbank, done by an infant in tbe character 3 Atk. 695; S. C. 1 Ves. 298. of steward cannot be avoided by (k) Tlwmpson v. Leach, 3 Modi reason of Us disability. Eddleston 311, ^er Gur.; Br. Ab. "Covert. V. CoWiras, 3 DeGex, Mac. & Gord. 1. and Inf." pi. 1; and see Co. Lit. (6) Co. Lit. 128, a ; Br. Ab. 42, b, 51, b ; WhittingTiam's case, 8 "Covert, and Infant," pi. 55, and Eep. 42, b; Br. Ab. "Covert, and see Hearle v. Greenbank, 3 Atk. 710. Inf." pi. 40. (e) Co. Lit. 88, b. (I) Perk. 14 ; Br, Ab. " Covert. {d) Co. Lit. 172, a. and Inf." pi. 1. (e) Co Lit. 52, a; Br. Ab. "Co- (m) Br. Ab. "Covert, and Inf." vert, and Infant," pi. 55. pi. 1 & 10 ; Lloyde v. Gregory, Cr. (/) 1 Watk. on Copyb. 24 ; and see Gar. 502, per Cur. ; Thompson v. Halliburton v. Leslie, 2 Hog. 252. Leach, 3 Mod. 310, per Oar. See [g) Toller on Executors, 31. observations on the two last cases in [h) RusselVs case, 5 Re. 27, a ; Zouch v. Parsons, 3 Burr. 1806 & €o. Lit. 172, a ; ib. 264, b ; 1 Roll. 1807 ; and see Humphreston^s case, Ab. 730, F. 2. 2 Leon. 216. CH. ni. S. 2.] INFANTS. 37 by others to be voidable only (a), and by others again to be void or voidable, as the validity of the execution is taken to be for the infant's benefit or not (6). Another opinion still (which is that of Perkins (c), and was adopted in the case of Zouch V. Parsons (d), ini may therefore be regarded as the doctrine of the present day) is, that an infant's deed, where the delivery of it answers to the livery of seisin, and operates as . the conveyance of an interest, is merely voidable ; but where it does not take effect as an assurance by delivery of the hand, as in a power of attorney (e), it is then actually void. Lord Mansfield, however, subjoined the qualification, that if a case should arise where it would be more beneficial to the infant that the deed should be considered as void ; as, if he might incur a forfeiture, or be subject to damage, or a breach of trust in respect of a third person (/), unless it was deemed void, the reason of an infant's privileges would in such case warrant an exception from the rule {g). Where the instrument carries no solemnity with it, the validity of the act must then depend on the question how far the assu- rance promotes the interest of the infant. Thus in Humphreston's case (li), where a minor had made a lease for years by parol, it was held by Justice Gawdy, that, the lease having been made ' to try the title of the land, which was a good consideration, and to the profit of the infant, and for his advancement, . the lease was not void: but Justice Southcote and Chief Justice' Wray conceived that the lease being without rent, profit, or ' other recompence, it was void ab initio for want of a considera- {a) Norton v. Turvil, 2 P. W. Conn. & Laws. 427, 2 Drur. & War. 145, per Sir J. Jekyll. 307. (6) See Zouch v. Parsons, 3 Burr. (e) See Br. Ab. " Covert, and 1804 ; and see Humphreston's case, Inf." pi. 1 ; Whittingham's case, 8 2 Leon. 216 ; Lloyde v. Gregory, Rep. 45, a. Cr. Car. 502 ; Nightingale v. Earl (/) Qucere if a Court of law ooidd Ferrers, 3 P. W. 210. notice a breach, of trust. See War- (c) Sects. 12 & 154 ; and see Br. wick v. Richardson, 10 Mees. & Ab. " Dum fuit infra setatem," pi. Wels. 295. 1 ; id. " Covert, and Inf." pi. 12 ; [g) Zouchy.Parsons,^'&w:iA%(n. Stone v. Wythipole, Cr. EL 126 ; (A) 2 Leon. 216 ; and see Lloyde Marlow v. Bitfield, 1 P. W. 559. v. Gregory, Cr. Car. 502, Co. Lit, [d) 3 Burr. 1807; confirmed by 51, b; Grange v. living, Sir 0. the recent ease oi Allen v. Allen, 1 Bridg. 117. 38 INFANTS. [oh. m. s. 2. tion; so that all the judges agreed in making the infant's benefit the criterion, though they differed in the application of it to the particular circumstances of the case. Power of sub- Supposing the infant's assurance not to have been a nullity sequent aToi - ^^ initio^ ^ ig gtiU in his power to defeat the act by a subse- quent avoidance. Lord Mansfield's It is laid down, indeed, by Lord Mansfield, in Zoitch v. Par- doctrine. ' I'll 7 J sons (a), that if an infant do a right act, which he ought to do, which he is compellable to do, it shall bind him ; as if he make equal partition, if he pay rent, if he admit a copyholder upon a surrender. And upon this principle the Court decided, in that case, that a mortgagee's infant heir, who had conveyed the trust estate by the mortgagor's direction, could not subse- quently avoid it. But this determination seems open to objec- tion; for, if the Court proceeded on the ground that the conveyance was a right and proper act, on principles of eqmty, such a doctrine would manifestly confound the legal and equi- table jurisdictions ; for, independently of the trust, the avoid- ance had been effectual, and if, on the equity of the case, it was declared to be a nullity, the decree of the Court amounted to a precedent for granting equitable relief. But if the Court considered the infant as compellable to convey under the statute of 7 Ann. c. 19, this appears not exactly the truth ; for the act is not imperative, but discretionary ; it declares that it shall be lawful for the infant to convey ; and the infant's assurance is to be made upon the direction of the Court of- Chancery or Exchequer ; so that a Court of common law, in deciding the validity of the infant's conveyance, assumed to itself that dis- cretion which the legislature had expressly delegated to one of the courts of equity. Lord Mansfield in conclusion observed, that by this decision circuity of suit was avoided ; for, if a court of law should declare the conveyance inoperative, a court of equity would not hesitate to decree a new conveyance. It was under cover of this plea that the legal and equitable juris- dictions were in the last century almost confounded ; but the tendency of the courts at the present day is to keep the juris- dictions distinct. [a] 3 Burr. 1801. CH. in, S. 2.] AilENS. 39 Another objection to an infant trustee is, that hecannot he Infant cannot be decreed to make satisfaction on the ground of a breach of ff 'trust.* trust (a). However, an infant has no privilege to cheat men (&), and therefore he will not be protected, if he be old and cunning enough to contrive a fraud (c). From the great inconveniences attending the appointment Consequent pre- of an infant as trustee, there arises a strong presumption, te takes not as wherever property is given to an infant, that he is intended to ^^^gg^jl"^* take it beneficially (d). An alieii may effectually be appointed a trustee in respect of Alien may be a chattels personal, but not in respect of freeholds or chattels teis peisonli^*' real. The policy of the law will not allow an alien to sue °^^y- or be sued touching lands in any court, of law or equity (e) ; and on inquisition found, the legal estate of the property would vest by forfeiture in the Crown. In a case where a testator devised real estate to his wife and Real estate an alien upon trust to sell, and they sold accordingly, and g^^j^gj and'alien executed a conveyance ; a question afterwards arcfse whether ^v°^ t™^*- the purchaser had a good title, and with a view of curing the defect an Act of Naturalisation was obtained : but it was held, that the common form of the Act of Naturalisation did not confirm the purchaser's title retrospectively, but that the objec- tion remained. The parties had endeavoured to introduce into the bill special words to meet the case, but a departure from the usual course was found impracticable (/). (a) See Whitmore v. Weld, 1 (d) Lamplugh v. Lamplugh, 1 P. Vem. 328 ; RusseWs case, 5 fie. W". 112 ; BUnhhorne v. Feast, 2 27, a ; Hindmarsh v. Southgate, 3 Ves. 30 ; Mumma v. Mumma, 2 Kuss. 324. Vem. 19 ; Taylor v. Taylor, 1 Atk. (J) Evroy v. NicTiolas, 2 Eq. Ca. 386; Smith v. King, 16 East, 283; Ab, 489, per Lord King. and see King v. Denison, 2 V. & B. (c) See Cory v. Gertcken, 2 Mad. 278. 40 ; Kvroy v. Nicholas, 2 Eq. Ca. (e) Gilb. on Uses, 43 ; and see Ab. 488 ; Earl of Buckingham v. Fish v. Klein, 2 Mer. 431. See late Drury, 2 Ed. 71, 72 ; Clare v. Earl act 7 & 8 Viot. c. 66. The exceptions of Bedford, 13 Vin. 536 ; Watts v. in the 6th section enabling subjects Cresswell, 9 Vin. 415 ; Beckett v. of a friendly state to hold lands for Cordley, 1 B. C. C. 358 ; Savage v. 21 years for purposes of residence, i i x • i t i- j the instrument. ™'* ^he averment 01 a trust m contradiction to any expression of intention on the face of the instrument itself (cQ. Nor be repugnant Nor is it iiecessary in order to exclude averment that the to the scope of r- ■ ■, the instrument, beneficial ownership should be conferred upon the grantee of the legal estate expressly, for a trust cannot be raised by {a) See Fordyce v. Willis, 3 B. (c) Adlington v. Cann, 3 Atk. C. C. 587; Benhow v. Townsend, 1 151, ^er Lord Hard wioke; Boson r. M. & K. 506 ; Bagley v. BoulcoH, Statham, 1 Ed. 513, per Lord 4 Russ. 347 ; Crabh v. Crabb, 1 M. Keeper Henley. AX. 511; Kilpiny. Kilpin,ld. 520. {d) Lewis v. Lewis, 2 Ch. Rep. (6) See Bellasis v. Compton, 2 77 ; Finch's case, 4 Inst. 86 ; For- Vern. 294 ; Fordyce v. Willis, 3 B. dyce v. Willis, 3 B. C. C. 587. C. C. 587 ; Thruxton. v. Attorney- General, 1 Vern, 341. dH. V. «. 1.] TRUSTS AT COMMON LAW. 67 parol, if, from the nature of the instrument, ov any circunlstance of evidence appearing on the face of it, an intention of making the legal holder the beneficiary also, can be clearly implied. Thus a trust cannot be averred, where a valuable consideration is paid (a) ; and if a pension from the Crown be granted to A., a trust cannot be raised by parol in favour of B. ; for a pension is conferred upon motives of honour, and the inducements to the bounty are the personal merits of the annuitant (6). And it was a principle of uses, that, on a feoffment, which Trusts not aver- could be made by parol, a use might be declared by parol; but required To pats where a deed was necessary for passing the legal estate, there *^® ^^^*' ^^*^*^" the use which was ingrafted could not be raised by aver- ment (c). As trusts have been modelled after the likeness of the use(i), the distinction at the present day may deserve consideration. It is laid down by Duke expressly, that, where the things given may pass without deed, there a charitable use jnay be averred by witnesses; but, where the things cannot pass without deed, there charitable uses cannot be averred without a deed proving the use (e). And Lord Thurlow, it is probable, alluded to the same distinction when he observed, " I have been accustomed to consider uses as averrable, but perhaps when looked into, the cases may relate to feoffmentj not to conveyances by bargain and sale, or lease and re- lease "(/). And in AdUngton v. Cann{g), where a testator devised the legal estate in lands to A. and B.,and their heirs by a will duly executed, and left an unattested paper referring to trusts for a charity, Mr. Wilbraham in the argument .observed, " If this were a voluntary deed, would a paper, even declaring a trust, be sufficient to take it from the grantee ? no, certainly (^) ; " and it is very observable that Lord Hardwicke, in ■ (fl) See Gilb, on Pses, 51, 57; W-iS-i:; Attorney- General y. Scott, Pilhington v. Bayley, 7 B. P. C. Eep. t. Talb. 139 ; Burgess v. 526. Wheate, 1 Ed. 195, 217, 248; (5) Fordyce v. Willis, 3 B. C. C. Geary v. Bearcroft, Sir 0. Bridg. ■587. 488. (c) Gilb. on Uses, 270. (e) Duke, 141. \d) See Fordyce v. Willis, 3 B. (/) Fordyce v. WUlis, 3 B. C. C. C. C. 687 ; Lloyd v. Spillet, 2 Atk. 587. 150; Attorney-General y. Lockley, (g) 3 Atk. 141. Append, to Vend. & Purcb. No. 16, {h) lb. 145. 11th ed. ; Chaplin v. Chaplin, 3 P. 58 TRUSTS AT COMMON LAW. [CH. V. S. 1, referring to this observation, excludes the case of a deed, and lays it down that " if the testator had made a feoffment to him- self and his heirs, and left such a paper, this would have been a good declaration of trust " (a). Trusts not aver- The averment of a trust was never permitted as against a ratle on a devise ,. , ■, • in-rr i •!■ even at common devtsee. A devise, as was resolved m Vernon s case, implies a ' consideration, and therefore cannot be averred to the use of another (b) ;• for that, observes Lord Chief Baron Gilbert, were an averment contrary to the design of the will appearing in the words (c); and accordingly in Lady Portington's case{d), the Court of Queen's Bench refused to admit evidence against the devisees, both from the Statute of Frauds and also from the nature of the thing. It is laid down, indeed, by Jenkins, that an averment might be at common law upon a will, though it was in writing ; but his only authority in support of this position is a case that has evidently been mistaken. " A devise," he says (by the custom of London before the Statute of WUls), " was to A., B., and C, and that A. should have all the profits during his life. Upon a suit in Chancery by the heir of A., the trust of this land was averred to be reposed in the said A., B., and C, to the use of A. and his heirs; and it was so proved. The Chancellor made a decree, by the advice of the judges, that A. being dead, his heir should have the land(e)." But the case, as stated by Fitzherbert (/), from whom it is cited by Jenkins, involved a very different question. A citizen of London had devised to his son and three others, and his will was that one of the three should have the profits for life. The cestui que trust for life died, and the heir (viz. of the testator, and not of the cestui que trust) filed his bill in Chancery as entitled to the resulting interest, and prayed a conveyance. It was argued for the trustees, that in a feoffment the use would have resulted ; but in a will the devisees were intended to take every beneficial interest, that was not expressly disposed of from them. But the Court refused to recognise the distinction, and decreed a resulting trust to the testator's heir. Nor on a Request Upon the Same principle the averment of a trust was always or appointment of an executor. ^^^ 3 ^^^_ ^g^^ ^^^ ^ g^j^_ jg2_ (b) 4 Rep. 4, a. (e) Jenk. 3 Cent. Ca. 26. (c) Glib, on Uses, 162. (/) Pitzherb. Ab. Devise, 22. CH. V. S. 1.] TRUSTS AT COMMON LAW. 59 inadmissible as against a legatee, and though the law for a long time fluctuated in respect of an executor claiming the surplus of the personal estate (a), it was at length determined that even the executor's beneficial title could not be defeated by parol. Upon the latter point the following distinctions were observed : — 1st. Where a person was simply appointed executor, which Admission and rejection of parol conferred upon him a legal title to the surplus, averment was eridence as not admissible to make him a trustee for the next of kin (&). ofexecutors.^ 2dly. If from any circumstance appearing on the face of the will, as the gift of a legacy to the executor, the law presumed he was not intended to take the surplus beneficially, the executor was at liberty to rebut that presumption by the pro- duction of parol evidence (c), and of course the next of kin might then fortify the presumption by opposing parol evidence in contradiction. But, 3dly. Where the will itself invested the executor with the character of trustee, as by giving him a legacy " for his trouble," or by styling him a " trustee " ex- pressly, the pri7)id facie title to the surplus was then in the next of kin, and parol evidence was not admissible to disprove the express intention (d). By the late Act 11 G. 4. & 1 W. 4. c. 40, an executor is prima facie a trustee for the next of kin (e). But where there are no next of kin the title of the executor, as against the Crown, is not affected by the statute, but he may still take beneficially. The declaration of a use by the king must have been by Declaration of , . , , . . Trust by or to letters patent (/) ; and it seems the same doctrine is now the king. applicable to trusts (g). Nor could a use have been declared to the king in the ordinary mode. The king, says Chief Baron Gilbert, " cannot have a feoffee to his use, because he cannot take but by matter of record ; but, if the use be found by office upon record, then he may take" {h). However, Lord Bacon (a) See Povei/ v. Juxon, Nels. Ves. 435 ; S. C. 19 Ves. 641 ; 135 ; Fane v. Fane, 1 Vern. 30. Golding v. Yapp, 5 Mad. 69 ; (J) Langham v. Sandford, 19 White v. Evans, 4 Ves. 21 ; TFo/- Ves. 644, per Lord Eldon ; White ton v. Walton, 14 Ves. 322, per Sir V. WtUiams, 3 V, & B. 72 ; 8. 0. W. Grant. Coop. 58. («) See Love v. Gaze, 8 Beav. 472. (c) Walton V. Walton, 14 Ves. (/) Bacon on Uses, 66. 322, per Sir W. Grant. {g) Fordyce v. Willis, 3 B. C. C. {d) Rachfield v. Careless, 2 P. 577. W. 158 ; Langham v. Sandford, 17 (A) Gilb. on Uses, 44, 204. 60 STATUTE OF FEAUDS. [CH. V. S. 2. seems to have thought, that the purpose of the inquest was not to make, but to find the title ; for he says, " It behoveth both the declaration of the use, and the conveyance itself, to be matter of recoi:d, because the king's title is compounded of both " (a). Copyholds. Hargrave's opinion that uses of copy- holds were within the act. SECTION II. OP THE SIATT7IE OF TEAtrDS. By the seventh section of the Statute of Frauds (b) it is enacted, that " all declarations or creations of trusts or con- fidences of any lands, tenements, or hereditaments, shall be mani- fested and proved by some writing, signed by the party who is by law enabled to declare such trust, or by his last will in writing, or else they shall be utterly void and of none effect." Upon the subject of this enactment we shall first briefly point out what interests are within the act, and, secondly, what formalities are required by it. 1. Of the interests within the act. Copyholds are to be deemed within- the operation of the clause, for, as a trust is ingrafted on the estate of the copyhold tenant, the rights of the lord, who claims by title paramount, cannot in any way be injuriously affected (c). A trust, there- fore, cannot be declared by parol so as to make the copyholder a trustee for another. Mr. Hargrave seems to have thought, that even the uses of a surrender were trusts within the intention of the act ; for, in a note to Coke on Littleton he observes, " A nuncupative will of copyholds was a valid declaration of the uses, where the sur- render was silent as to the form, tUl the 29 Car. 3. required all declarations of trusts to be in writing " (1). But the surrender (a) Bacon on Uses, 60. (6) 29 Car. 2. c. 3. (c) See Withers v. Withers, Amb. 151 ; Qoodright v. Hodges, 1 Watk. on Cop. 227; 8. C. Lofft. 230; Acherley v. Acherley, 7 B. P. C. 273 ; but see jbevenish v. Baines, Pr. Ch. 5. (1) Mr. Watkins argues, and apparently both on principle and authority (see Devenish v. Saines, Pr. Ch. 3), that a nuncupative will of copyholds was effectual. 1 Wat. Cop. 130. Now by the late Will Act (1 Vict. o. 26) copyholds have been put on the same footing with otber property. CH. y. S. 2.] CHATTELS EEAL AND CHARITABLE USES. 61 of a copyhold to uses is merely a direction to the lord in what manner to regrant the estate, and the surrenderee is a cestui que use by misnomer only, and not in fact; and indeed the Court of Queen's Bench has expressly decided that uses of copyholds are not within the Statute of Frauds, on the ground that a surrender to uses is not the creation of a trust or confi- dence apart from the legal estate, but a mode established by custom of transferring the legal estate itself (a). Chattels real are within the purview of the act, and a trust Chattels real of them must therefore be evidenced by writing as in the case of freeholds (&). But chattels personal are not within the act, and a trust by Chattels personal •averment will be supported (c). It has even been held that a act. sum of money secured upon a mortgage of real estate, is not an interest within the act, and that a parol declaration is good (cZ). And if a trust be once created by parol declaration, it cannot be affected by any subsequent parol declarations of the settlor (e). An attempt was formerly made to have a charitable use CharitaWe uses excepted from the statute, but Lord Talbot decreed (/), and Lord Hardwicke af&rmed the decision (g), and Lord Northington said every man of sense must subscribe to it (/i), that a gift to a charity must be treated on the same footing with any other disposition. (o) Doe V. J)anvers, 7 East, 510, per Sir J, Leaoh ; JFane v. 299. Fane, 1 Vern. 31, per Lord Notting- (6) Skett Y. Whitmore, Preem. ham; Nab v. Nab, 10 Mod. 404. 280 ; Forster v. Hale, 3 Ves. 696 ; But this case, as reported 1 Eq. Ca. Middle V. Emerson, 1 Vern. 108 ; Ab. 404, appears an authority the and see Sutchins v. Lee, 1 Atk. other way. 447 ; Bellasis v. Compton, 2 Vern. {d) Benbow v. Townsend, 1 M. & 294. E. 506 ; and see Bellasis v. Comp- (c) Bayley v. Boulcott, 4 Euss. ton, 2 Vern. 294. 347, per Sir J. Leach ; M^Fadden, (e) Xilpin r. Kilpin, 1 M. & K. v. Jenkyns, 1 Hare, 461, per Sir J. 520, see 539 ; Crahb v. Crdbb, 1 M. Wigram; S. C. 1 Ph. 157, per & E. 511. Lord Lyndhurst ; Thorpe v. Owen, (/) Loyd v. Spillet, 3 P. W. 5 Beav. 224 ; George v. Bank of 344. England, 7 Price, 646 ; Hawkins v. [g) 8. C. 2 Atk. 148 ; S. C. Barn. Gardener, 2 Smale & Grif. i51, per 384; and see Adlington v. Cann, V. C. Stuart ; Fordyce v. Willis, 3 3 Atk. 150. B. C. C. 587, per Lord Thurlow ; (A) Boson v. Statham, 1 Ed. 613. Benbow v. Townsend, 1 M, & K. 6-3 STATUTE OP FBAUDS. — CEOWN. [CH. V. S. 2i Whether the crown is hound by the statute. Colonial lands. Whether the sta- tute to be a bar must be pleaded. Trusts to be proved hy, not declared in, writing. In Lady Portingtori's case (a) it was held by the Court of Queen's Bench, that the Crown was bound by the Statute of Frauds, and therefore was not at liberty to prove a superstitious use by parol ; but in the Court of Exchequer it was ruled, on the contrary, that the Statute of Frauds did not bind the Crownj but took place only between party and party. Lord Hardwicke expressed his doubts upon the latter doctrine, that the Crown is not bound by a statute unless specially named ; but at the same time mentioned a case in which that doctrine had been followed (&). It seems the statute will not apply to lands situate in a colony planted before the Statute of Frauds was passed (c). Planters carry out with them their own laws as they were sub- sisting at that time ; but sixbsequent enactments at home will not follow them across the seas, unless it be so specially pro- vided. A fortiori the Statute of Frauds will not affect foreign lands not subject to the crown of England. If a bill be filed to have the benefit of a parol trust of lands, is a defendant, who would rely on the Statute of Frauds as a bar, bound to plead it ? The analogy of the section of the same statute relating to contracts touching interests in lands, would lead to the inference that to a bill for the execution of a parol trust, the defendant must plead the statute or he wiU be deemed to waive the bar. The point, however, remains to be decided (d). 2. What formalities are required by the statute. The principal point to be noticed is, that trusts are not • necessarily to be declared in writing, but only to be manifested and proved by writing; for, if there be written evidence of the existence of such a trust, the danger of parol declarations, against which the statute was directed, is effectually removed (e). It may be questioned whether the act did not intend that the (a) King" -v. Partington, 1 Salk. 162 ; and see Adlington v. Cann, 3 Atk. 146. (6) Adlington v. Cann, 3 Atk. 154. (e) See 2 P. W. 75 ; and see Gar- diner V. Fall, IJ. & W. 22. {d) See Cottington v. Fletcher, 2 Atk. 155. (e) Forster v. Hale, 3 Ves. 707, per Lord Alvanley ; S. C. 5 Yes. 315, per Lord Loughborough. CH. V. S. 3.] STATUTE OF FRAUDS. FOEMALITIES. 63 declaration itself should be in writing ; for the ninth section enacts, that " all grants and assignments of any trust or con- fidence shall likewise be in writing, signed by the party granting or assigning the same, or by such last will or devise {a) ; " but, whatever may have been the actual intention of the legislature, the construction put upon the clause in practice is now firmly established. The statute will be satisfied, if the trust can be manifested As by a letter, by any subsequent acknowledgment of the trustee, as by an ' ' express declaration by him (&), or any memorandum to that effect (c), or by a letter under his hand {d), by his answer in Chancery (e), or by a recital in a bond (/) or deed {g), &c. ; and the trust, however late the proof, takes effect from the creation of the trust. Even where a lease was granted to A., who after- wards became bankrupt, and then executed a declaration of trust in favour of B., a jury having found upon an issue directed from Chancery that A.'s name was bond fide used in the lease in trust for B., it was held the assignees of A. had no title to the property Qi). In another case, on the marriage of Lord Windsor with Miss Tovey, certain estates of his lord- ship, called Breedon and Eedmarley, were omitted from the settlement with a view of selling them and purchasing others more convenient, which when purchased were to be settled. About the same time Lord Windsor, by Ernes, his agent, con- tracted for the purchase of the manor of Bromsgrove, and Lord Windsor and Emes bound themselves to pay the purchase- money. The conveyance was made to Lord Plymouth, who (o) i, e, A ■will executed in con- (e) Hampton v. Spencer, 2 Vem. foimity with section 5. Note that 288 ; Nah v. Nah, 10 Mod. 404 ; Croohe v. Brooking, 2 Vein. 50, 106, Cottington v. Fletcher, 2 Atk. 155 ; was before the Statute of Frauds. Ryall v. Myall, 1 Atk. 69, per Lord (J) Ambrose v. Ambrose, 1 P. W. Hardwicke ; Wilson v. Dent, 3 Sim. 321 ; Crop v. Norton, 9 Mod. 233. 385. A bill differs from an answer, (c) Bellamy v. Burrow, Rep. t. as it is not signed by the party. Talb. 97. See, however, Butler v. Portarling- {d) Forster v. Hale, 3 Ves. 696 ; ton, 1 Conn. & Laws. 1. JS. a 5 Ves. 308 ; Morton v. Tewart, (/) Moorcroft v. Dowding, 2 P. 2 T. & C. Ch. Ca. 67 ; Bentley v. W. 314. Machay, 15 Beav. 12 ; Smith v. {g) Beg v. Deg, 2 P. W. 412. W^iftinsore, cited3Ves.705; O'Hara (h) Gardner v. Howe, 2 S. & S. V. O'Neill, 7 B. P. C. 227 ; and see 346 ; S. C. affirmed, 5 Russ. 258. Gardner v. Howe, 2 S. & S. 354. 64 STATUTE OF FEAUDS. FOEMALITIES. [CH. V. S. 3. Relation to sub- ject-matter, and nature of trust must be clear. The writing must be signed. paid the purchase-money himself^ and raised it by a mortgage of his property. Two years afterwards Lord Windsor raised the same sum by a mortgage of Breedon and Bromsgrove, and paid it to Lord Plymouth, who signed a receipt for it. Lord Plymouth devised Bromsgrove for payment of his debts, but it was held that a trust for Lord Windsor was sufQciently proved ■within the Statute of Frauds. Creditors, the Court said, are favourites, but we must not pay them out of other men's estates ; nor, as Justice Twisden was wont to say, steal leather to make poor men shoes (a). But with regard to letters and loose acknowledgments of that kind, the Court expects demonstration that they relate to the subject matter (6); nor will the trust be executed if the precise nature of the trust cannot be ascertained (c) ; and if the trust be established on the answer of the trustee, the terms of it must be regulated by the whole answer as it stands, and not be taken from one part of the answer to the rejection of another {d) ; and the plaintiff, if he read the answer in proof of the trust, must at the same time read from it the particular terms of the trust (e). When the trust is manifested and proved by letters, parol evidence may be admitted to show the position in which the writer then stood, the circumstances by which he was surrounded, and the degree of weight and credit to be attached to the letters, independently of any question of construction (/). It will be observed, that the words of the statute require the writing to be signed (g) ; and not only the fact of the trust, but also the terms of it, must be supported by evidence under signature Qi) ; but, as in the analogous case of agreements under the fourth section of the act (i), the terms of the trust may be collected from a paper not signed, provided such paper (a) Plymouth v. Hichman, 2 Vern. 167. (S) Forster v. Hale, 3 Ves. 708, per Lord Alvanley. (c) Forster v. Hale, 3 Yes. 707, per Lord Alvanley ; Morton v. Te- wart, 2 Y. & C, Ch. Ca. 80, per Sir J. L. K. Bruce. (d) Hampton v. Spencer, 2 Vern. 288 ; Nab v. Nab, 10 Mod. 404. (e) Freeman v. Tatham, 5 Hare, 329. (/) Morton v. Tewart, 2 T. & C. Ch. Ca. 67, see 77. {'g) See Denton v. Davis, 18 Yes. 503. (A) Forster v. Hale, 3 Yes. 707, per Lord Alvanley. (j) See Vend. & Purch. ch. 3, s. 2. CH. V. S. 3.] STATUTES OF WILLS. 65 can be clearly connected with, and is referred to by, tbe writing that is signed (a). The signature must be by the party " who is by law enabled to declare such trust." It has been occa- sionally contended, that by this description is meant the person seised or possessed of the legal estate ; but it has been decided that whether the property be real (6) or personal (c), the person enabled to declare the trust is the owner of the beneficial interest, and who has therefore the absolute control over the property, the holder of the legal estate being a mere instrument or conduit-pipe [d). SECTION III. OF IHH STATUTES OP WILLS. By the fifth section of the Statute of Frauds (e) aU devises of lands are required to be in writing and signed by the testator, or by some person in his presence and by his direc- tion, and to be attested or subscribed in his presence by three witnesses ; and by the nineteenth section, aU bequests of 'per- sonal estate are required to be in writing, with the exception of certain specified cases in which nuncupative wUls are allowed. To trace the operation of these enactments (/) we must bear Principle of in mind that the absolute owner of property combines in him- rations not tes- self both the legal and equitable interest, and when the legis- ^^"'^''^YwUis lature enacts that no devise or bequest of property shall be valid without certain ceremonies, a testator cannot by an informal instrument affect the equitable, any more than the legal, estate, for the one is a constituent part of the ownership as much as the other. Thus a person cannot but by a will duly signed and attested give a sum of money originally and primarily out of land, for the charge is a part of the land, and to be raised out of it by sale or mortgage (g) ; and if a testator by will duly signed and attested give lands to A. and his heirs (a) Forster v. Hale, 3 Ves. 696. («) 29 Car. 2, c. 3. (6) TierneyY. Wood, 19Beav. 330. (/) The statute now in force is 1 (c) Bridge v. Bridge, 16 Beav. Vict. o. 26, but the cases were de- 315 ; ex parte Pye, 18 Ves. 140, &c. cided on the Statute of Frauds. [d) See Donohoe v. Conrahy, 2 {g) See Brudenell v. Boughton, 2 Jones & Lat. 688. Atk. 272. 66 STATUTES OF WILLS. [CH. V. S. 3. " upon trust," but without specifying the particular trust in- tended, and then by a paper, not duly signed and attested as a will or codicil, declare a trust in favour of B., the beneficial interest under the will is a part of the original ownership, and cannot be passed by the informal paper, but will descend to the heir-at-law (a). Again, if a legacy be bequeathed by a will, in writing, to A. " u;pon trust," and the testator, by parol, express an intention that it shall be held by A. upon trust for B., such a direction is in fact a testamentary disposition of the equitable interest in the chattel, and therefore void by the statute, which imposes the necessity of a written will. If it be said that such expression of intention, though void as a devise or bequest, may yet be good as a declaration of trust, and there- fore that where the legal estate of a freehold is well devised, a trust may be engrafted upon it by a simple note in writing; and where a chattel personal is well bequeathed, a trust of it, as excepted from the seventh section of the Statute of Frauds, may be raised by a mere parol declaration ; the answer is, that a wide distinction exists between testamentary dispositions and declarations of trust. The former are ambulatory until the death of the testator, but the latter take effect, if at all, at the time of the execution. " The deed," observed Lord Lough- borough, in a similar case, " is built on the will ; if the will was destroyed, the deed I should consider absolutely gone; the will without the deed is incomplete, and the deed without the will is a nullity" (6). And Mr. Justice Buller observed, " A deed must take place upon its execution, or not at aU ; it is not necessary for a deed to convey an immediate interest in possession, but it must take place as passing the interest to be conveyed at the execution ; but a will is quite the reverse, and can only operate after death" (c). "We may therefore safely assume, as an established rule, that if the intended dis- position be of a testamentary character, and not to take effect in the testator's lifetime, but ambulatory until his death, such disposition is inoperative unless it be declared in writing in («) See Adlington v. Cann, 3 Atk. (c) Hdbergham v. Vincent, 2 Ves. 151. jun. 230. (i) Habergham v. Vincent, 2 Ves. jun. 209. CH. V. g. 3.] STATUTES OF WILLS. 67 strict conformity with the statutory enactments regulating clevises and bequests (a). Lord Northington once enunciated the proposition, that a Lord NortHng- writing signed by a party who had power to make a trust, opinion, declaring the trust upon the will, is good though such writing be not attested by three witnesses according to the solemnities of the Statute of Frauds (6) ; but this is a solitary dictum, and has been long overruled by the highest authorities (c). Inchiquin v. French (d) may be mentioned, as the case has incMquin v. been mistaken. A testator devised all his real estate, charged with debts and legacies, in strict settlement, and gave a legacy of 20,000i. to Sir Wm. Wyndham ; by a deed poll of even date with his will, the testator declared that the 20,0O0Z. was given to Sir Wm. Wyndham upon trust for Lord Clare. " The deed poll," adds Mr. Cox, the reporter, " does not appear to have been proved as a testamentary paper ; " and according to the same report. Lord Hardwicke decreed that the legacy of 20,000Z. given to Sir Wm. Wyndham, and by the codicil declared to be in trust for Lord Clare, was a subsisting legacy. It might be inferred from this statement, that Lord Hardwicke admitted the deed poll as a declaration of trust ; but it will be observed that he calls it a codicil, and from the report of the same case in. Ambler (e) we learn the facts, viz., that Lord Clare was out of the jurisdiction, aind Lord Hardwicke declined to entertain the question as to Lord Clare's right in his absence ; but the counsel, for all parties, desiring his Lordship to determine whether, assuming the legacy to be valid, it was to be paid out of (a) In Metham v. Devon, 1 P. W. taiy character. If the deed was not 629, a testator directed his executors proved, or assumed to have been to pay 3000/. as he should by deed proved, as part of the will, it is appoint, and subsequently the tes- difBcult to find any principle upon tator by a deed appointed the 3000?. -which the case can be supported to the children of his son by Mrs. H., from the brief statement of it in the and the Court established the gift to report. the children on the ground that the (6) Boson v. Statham, 1 Ed. 514. deed referred to the will, and was (c) Adlington v. Cann, 3 Atk. part thereof and in the nature of a 151 ; Muchleston v. Brown, 6 Yes. codicil. It does not appear in this 67 ; Stiekland v. Aldridge, 9 Ves. case whether the deed had been 519 ; and see Puleston v. Puleston, proved with the will, but undoubtedly Finch. 312, Jenk. 3 Cent. Ca. 26. it might have been, as, though a {d) 1 Cox, 1. deed in form, it was of a testamen- {e) Amb. p. 33. F 2 68 STATUTES OF WILLS. [CH. V. S. 3. Where no trust appears on the will and no fraud. Where the de- visee is made by the will a trustee, and the testator leaves an in- formal declara- tion of trust. Parol evidence. the real or personal estate, his Lordship held, that as the will contained a general charge of legacies and the gift hy the codicil, though not attested hy the Statute of Frauds, was a legacy, it was raisahle primarily out of the personal estate, and then out of the real estate. This was the only point determined hy him. If a testator, by his will, devise an estate, and the devisee, so far as appears on the face of the will, is intended to take the beneficial interest, and the testator leave a declaration of trust not duly attested, and not communicated to the devisee and assented to by him in the testator's lifetime, the devisee is the party entitled both to the legal and beneficial interest; for the estate was well devised by the will, and the informal declaration of trust is not admissible in evidence {a). This doctrine, of course, does not interfere with the known rule, that a testator may, by his will, refer to and incorporate therein, any document which at the date of the wUl has an actual existence, and is thus made part of the will. Should the testator devise the estate in such language that the will passes the legal estate only to the devisee, and mani- fests an intention of not conferring the equitable, in short, stamps the devisee with the character of trustee, and yet does not define the particular trusts upon which he is to hold; in this case, no paper not duly attested (except of course papers existing at the date of the will, and incorporated by reference) will be admissible to prove what were the trusts intended. Nor will the devisee be allowed to retain the beneficial interest himself; but while the legal estate passes to him, the equitable will result to the testator's heir-at- law (6). And under the present Statute of Wills, the law is the same in reference to a bequest of personal estate (c). And if it appear by the will that the devisee was meant to (a) Adlington v. Cann, 3 Atk. 141 ; and see Stichlandy. Aldridge, 9 Ves. 519 ; and observations of Sir J. L. K. Bruco in Briggs v. Penny, 3 De Gex and Sm. p. 547. (6) Muchleston v. Brown, 6 Ves. 52. Bishop V. Talbot, as cited ib. 60, ■was a devise to trustees in trust, but on consulting the Reg. Lib. it appears there was no notice of the trust upon the will, Reg. Lib. 1772, A. fol. 137. In Boson v. Siatham, 1 Ed. 508, the devisees were de- scribed as trustees, but this circum- stance was not adverted to by the counsel or the Court. (c) Johnson v. Ball, 5 De Gex & Sm. 85. CH, V. S. 3.] STATUTES OP WILLS. 69 be a trustee, and not to take the beneficial interest, parol evidence cannot be deceived in support of a contrary inten- tion, for this would be not to rebut an equitable presump- tion, but to act upon parol testimony in contradiction to a written instrument (a). We now proceed to notice two exceptions to the general rule. Exceptions to that a trust cannot be created by devise or bequest, except with ^^^"^^ the formalities required by the enactments relating to wills. The first exception existing, however, in the case only of Charge of debts testamentary instruments executed before Jan. 1, 1838 (6), was, that a testator might, by a will duly attested, charge his real estates with debts and legacies ; and then a debt subsequently contracted, or a legacy given by a codicil, though not attested, would under the general charge contained in the formal instrument, be raisable out of the real estate. The reason is, that debts and legacies being primarily payable out of the personal estate, are a fluctuating charge upon the real estate. The lands only are affected to the extent of the deficiency of the personalty, and the amount of the latter must be uncertain up to the time of the testator's death. The testator, by contracting debts or giving legacies by an un- attested codicil, exercised the power which the law allowed him of reducing the personal estate ; and as regards the Statute of Frauds, it was conceived to be immaterial whether the testator diminished the personal assets in this or any other manner (c). But the exception does not extend to a wHl so worded as to amount to a reservation of a power to charge by unattested codicil (d) ; nor, it is conceived, to a charge by wiU of lands with debts and legacies, and a subsequent gift by unattested codicil of legacies to be raised enclusively out of the real estate ; this last amounting to the devise of a direct interest in land. (o) It should be borne in mind Oolding v. Yapp, 5 Madd. 59; that the point may yet qootit in prao- White v. JSvans, 4 Yes. 21 ; Walton tiee in reference as well to testators v. Walton, 14 Ves. 322. dying after as those dying hefore (c) Hahergham v. Vincent, 2 Ves. 1838. jun. 236. (5) See Langham v. Sandford, 17 {d) Mose\. Cunningliame, 12 Ves. Ves. 442 ; S. C. 19 Ves. 643 ; Bach- 29 ; Swift v. Nash, 2 Keen, 20. field V. Careless, 2 P. W. 168; 70 STATUTES OF WILLS. [CH. V. S. 3. Case of fraud in heir. Fraud. Anotlier exception to the rule, that parol trusts cannot be declared upon a will, is in the case of fraud. The Court will never allow a man to take advantage of his own wrong, and therefore if an heir, or devisee, or legatee, or next of kin, con- trive to secure to himself the succession of the property through fraud, the person to whom, but for the intervention of fraud, the property would have passed, may affect the conscience of the legal holder, and convert him into a trustee, and compel him to execute the disappointed intention. Thus if the owner of an estate hold a conversation with the heir, and be led by him to believe that if the estate be suffered to descend, the heir will make a certain provision for the mother, wife, or child of the testator, a Court of Equity, not- withstanding the Statute of Wills, will oblige the heir to make a provision in conformity with the express ov impUed engage- ment ; for the heir ought to have informed the testator that he, the heir, would not hold himself bound to give effect to the intention, and then the testator would have had the opportunity of intercepting the right of the heir by making a will (a). In de-risee. So if a father devises to his youngest son, who promises that if the estate be given to him he will pay 10,000J. to the eldest son, the Court, at the instance of the eldest son, will compel the youngest son to disclose what passed between him and the testator, and if he acknowledge the engagement, though he pray the benefit of the statute in bar, he will be a trustee for the eldest son to the extent of 10,000Z. (6) And so, generally, if a testator devises an estate to A. the beneficial owner upon the face of the will, but upon the under- standing between the testator and A. that the devisee will as to a part or even the entirety of the beneficial interest hold upon any trust which is lawful in itself, in favour of B., the Court, at the instance of B., will affect the conscience of A., and decree him to execute the testator's intention (c). (a) Sellach v. Harris, 5 Vin. Ab. Vern. 559 ; Draheford v. Wilks, 3 521 ; Stieldand v. Aldridge, 9 Ves. 519, per Lord Eldon. ; Harris v. Harwell, Gilb. Eq. Rep. 11. (h) Stieldand v. Aldridge, 9 Ves. 619. (c) Kinffsman v. Kingsman, 2 Atk. 539 ; Barrow v. Green, 3 Vqs. 152 ; Marriot v. Marriof, 1 Strange, 672, per Cur. ; Seagrave V. Kirwan, 1 Beatt. 164, per Sir A. Hart ; Leister v. Foxcroft, cited ib. ; Chamherlaine v. Chamberlaine, CH. V. S. 3.] STATUTES OF WILLS. 71 It often happens that a proposed devisee enters into ain Engagement to execute an unlawful trust. engagement with the testator in his lifetime to execute a secret ^*^°"*^ *° trust of an unlawful character, one which the policy of the law does not allow to be created by wiU. In this case the Court will not suffer the devisee to profit by his fraud, but on proof of the fact raises a resulting trust in favour of the testator's heir-at-law. If, therefore, a testator devise an estate in words carrying upon the face of the will the beneficial interest, and obtain a promise from the devisee that he will hold the estate upon trust for a charitable purpose, the heir-at-law, as entitled to a resulting trust, may file a bill against the devisee, and compel him to answer whether there existed any such under- standing between him and the testator ; and if the defendant acknowledge it, he will be decreed a trustee for the plaintiff, and to convey the estate to him accordingly {a). " Surety," said Lord Eldon, " the law will not permit secret engagements to evade what, upon grounds of public policy, is established ? Is the Court to feel for individuals, and to oblige persons to discover in particular instances, and not feel for the whole of its own system, and compel a discovery of frauds that go to the roots of that system ? There is surely a stronger call upon the justice of the Court to say, upon a private bargain, between the testator and those who are to take apparently under the will, which is to defeat the whole of the provisions and policy of the law, that they shall be called on to say whether they took the estate, as they legally may not do, for charitable purposes " (6). In Bishop v. Talbot (c), a testator by will duly attested gave Bishop «. Talbot. 2 Eq. Ca. Ab. 43 ; ib. 465 ; Thynn {a) Adlington v. Cann, Barn. V. Thynn, 1 Vern. 296; Devenish 130; King v. Zady Partington, 1 V. Baines, Prec, in Ch. p. 3 ; Old- Salk. 162 ; Muckleston v. Brown, 6 ham V. Litchford, 2 Vern. 506 ; Ves. 52 ; Stichland v. Aldridge, 9 same case, Freem. 284; Beech v. Ye&. 6\&; 3.-B.dL&e& Attorney- General Kennigate, Amb. 67 ; S. C. X Ves. v. Duplessis, Park. 144 ; Bussell 123 ; Newhurgh v. Newburgh, 5 v. Jachson, 10 Hare, 204 ; Tee v. Madd. 366, per Sir John Leaoli; Jferm, 2 Kay & J. 357 ; Lomax y. Chamberlain v. Agar, 2 Ves. & B. Bipley, 3 Sm. & Gif. 48. 259; Nah v. Nah, 10 Mod. Rep. (6) Jfactesion v.5roton,6 Yes.69. 404 ; Strode v. Winchester, 1 Dick. (e) Cited Muckleston v. Brown, 6 397 ; S. C. stated from Keg. Lib. Ves. 60, 67 ; Re^. Lib. A. 1772, fol» App. Wo. 1 ; and see Alison's case, 137, A. 1773, fol. 686. 9 Mod. Rep. 62 ; Dixon v. Ohnius, 1 Cox, 414. 72 STATUTES OF WILLS. [CH. V. S. 3. his real estate to A. and B. in fee, and by a memoranduni signed, but not attested, declared certain charitable trusts. A bUl was filed by the heir-at-law against the devisees, who by their answer insisted that the devise was not upon any secret trust, nor for other purposes than what appeared on the will, but admitted they had the memorandum in their possessioB, and submitted the effect thereof to the judgment of the Court, Sir Thomas Sewell is reported to have said, " He did not think the principal matter would be the validity of the paper writing; the question was, what would be the effect of the answer, supposing there was no paper; admitting there was no trust for charitable purposes except what was mentioned in the answer, this was a sort of disclaimer upon their part, and the question was, who should have it ?" And his Honor decreed the heir-at-law to be entitled to a resulting trust. " Sir Thomas Sewell," said Lord Eldon, " went a great length in that case. If he had said the law would authorise him to hold the memorandum a suf&cient denotation of intention that the devisees should be trustees, the difficulty would be, how he came to read the memorandum. But he took it in another way, that as they set forth the memorandum, they admitted the purpose of the testator, and put it, not upon the effect of the me- morandum, vi sua, if I may so express it, but as taken as their admission. I doubt whether that is quite correct reasoning ; but though Sir Thomas Sewell might be wrong in the fact that that was an admission, his opinion is ah authority in point of law, that if there was an admission he would execute the trust. Then it comes to this, that the doctrine of the Court is, that the defendant shall answer in such a case ; and if he answers in the affirmative, there is a resulting trust for the heii- " (a). Barney v. Mac- In a recent case (b) the Court was much more favourable to the devisees in the construction put upon this act. A testator devised certain freeholds to four persons during the life of A. for their own use and benefit, and three of them at the same time signed and delivered to the testator letters of acknow- ledgment that, although the estate was expressed to be devised to them beneficially, they would hold the same upon trust for (o) MucMeston v. Brown, 6 Ves. (6) Burney v. Macdonald, 15 68. Sim. 6. CH. V. S. 3.J STATUTES OF WILLS. 73' an alien. A bill was filed, by two of tbe trustees who had signed the letters, against the two other trustees, the alien and the Crown, in the absence of the heir, to have the rights of all parties ascertained and declared. The trustee who had not signed an acknowledgment did not admit any trust, and was held to be clearly entitled to the beneficial interest ; and even as to the three devisees who had signed the acknowledg- ment, the Vice-Chancellor was of opinion that the devisees had so signed under the impression that the trust for an alien was good, and that, acting under a misapprehension in that respect, they were not bound by the letters as an admission of trust. The Court therefore declared that all four devisees were beneficially entitled. "Where a devise is to several persons, as tenants in common. Devise may he it may be void as to one to whom the testator's unlawful inten- and void "as to tion was communicated in his Hfetime, and good as to the ^°"*''«'^- others who were not privies to the intention {a). And where no trust is imposed by the will, and no commu- Devise not void ,. J ■ j.1. i J. i. > Tjr i.' i.1, J • -n 1 because devisee nication was made m the testator s metime, the devise will be means to execute good, although the devisee may, notwithstanding the absence f^^ uula-rful of legal obligation, be disposed from the bent and impulse of his own mind, to carry out what he believes to have been the testator's wishes {b). Another case may occur, as follows: — A devise may, be a An engagement to hold an in- benefieial one upon the face of a will, but there may have definite part of existed an understanding between the testator in his lifetime au^niawfur'' and the devisee, that, without any particular part of the estate t'^^st. being specified, such portions of it as the devisee, in the exercise of his discretion, might think proper, should be ap- plied to a charitable purpose. Under such circumstances the heir of the testator would have a right to interrogate the devisee whether he has exercised that discretion, and to call for a conveyance of so much as the devisee may have made subject to the unlawful purpose (c). In the above cases it is not a sufficient answer to a biU for Defendant must the defendant to say that the secret trust is not for the plaintiff, the secret trust was. (a) Tee v. Ferris, 2 Kay & J. 3. 313 ; Lomax v. Ripley, 3 Sm. & 357. Gif- 48. {b) Wallyrave ^. Tchhs, 2, Kay & {c) MucMeston,-^. Brown, QNes.Qd. 74 STATUTES OF WILLS. [CH. V. S. 3, Engagement to execute a trust and no trust declared. for thus the devisee makes himself the judge of the title. The trust may be for a charity, and if so, the beneficial interest would result for want of a lawful intention, or the equitable in- terest may, on some other ground, enure to the heir as undisposed of (ft). If the defendant deny the trust by his answer, the fact in this as in other cases of fraud may be established against him by the production of parol evidence (&). It is clear that if a devisee enter into an engagement with the testator to execute an unlawful trust, the heir may file a biU, and claim the beneficial interest ; but suppose the devise is a beneficial one upon the face of it, and the testator com- municates his will to the devisee, and requests him to .be a trustee for such purposes as the testator shall declare, which the devisee undertakes to do, but the testator afterwards dies without having expressed any trust, it seems that in this case alsd the devisee will not be allowed to take the beneficial interest, but the heir-at-law will be entitled. > Thus in Muckleston v. Brown (c) the testator applied to three persons to act as trustees for the execution of certain trusts, which he intended to declare, and upon their undertaking the trust, the testator devised all his real estate to them, subject only to the payment of his debts and legacies. The testator died without having declared any trust as he had proposed. Upon a bill filed by the heir. Lord Eldon was of opinion, though very guardedly expressed, that the devisee was bound to answer. He observed, " I am not quite prepared to say it is clear that if the testator made the devise, meaning, at the time,; thereafter duly to declare trusts, and it happened that he did not declare any, that sort of case would not be within the equity of this Court, and whether, if they admitted his will was made upon an undertaking that they would execute such trusts, the heir would not have a right to say no trust was duly declared, the purpose therefore failed, and the trust results by law to him, not upon the intention, but upon the ground that there is no intention, and he is entitled to avail himself of that." [a) Newton v. Pelham, cited Bo- son V. Statham, 1 Ed. 514. (6) Kingsman v. Kingsman, 2 Ver. 599 ; Pring v. Pring, 2 Ver. 99. (c) 6 Ves. 52. See too the obser- tions of V. C. (now L. J.) Turner, in Russell V. Jackson, 10 Hare, p. 214. CH. V. S. 3.] STATUTES OF WILLS; 75 Another case, distinct from all the preceding, is where a Case of devisee testator devises an estate to persons as trustees, but no trusts m^'faoe of the^^ are declared by the will, so that the equitable interest would, J^' ™? p^™^ upon the face of the instrument, result to the heir-at-law, and trust for a the testator informs the devisees that his intention in making the devise was, that they should hold the estate in trust for certain persons, which the devisees undertake to do. WUl the Court, under such circumstances, compel the devisee to ex- ecute the parol intention, or will the equitable interest result to the heir ? In favour of the parol trust, it will be argued that the testator left his will in the form in which it appears, under the impression that his object, verbally communicated, would be carried out, and that the trust can therefore be sup- ported, on the ground of mistake in himself, or fraud in the devisee in not apprising the testator that the trust could not be executed. To this the answer is, that, upon the face of the will, the equitable interest results to the heir-at-law, and that, if the testator had not disposed of the equitable interest, as required by the statute, the Court cannot make a will for him, on the plea of mistake or fraud (a) : that the Court has interfered in the case of fraud in those instances only where the devisee, taking the beneficial interest under the will, was the contriver of the fraud, and, as no man may take advantage of his own wrong, the Court compelled the devisee to execute the intention fraudulently intercepted : but in the case supposed, the legal estate only is in the devisee, while the bene- ficial interest is in the heir-at-law, who is wholly disconnected from the fraud. What jurisdiction, therefore, has the Court to act upon the conscience of the heir, to deprive him of that estate which has not been devised away according to the Statute of Wills ? and how can the trustees for the heir be held to be trustees for another in the absence of all fraud on the part of the heir ? It would seem, upon principle, that where a trust results upon the face of the wUl, the circumstance of an express or implied promise on the part of the devisee to execute a certain trust is not a sufficient ground for authorising the Court to execute the trust as against the heir-at-law. [a] Newhurgh v. Newhurgh, 5 Madd. 364. 76, STATUTES OF WILLS. [CH. T. S, 3, The point' might have arisen in each of the four following cases, but except in the latest of the four, it does not appear to have been taken. Pring ». Pring. In Pring v. Pring (a), a man by his will appointed A., B., and C. his executors in trust, and gave them a legacy of 201. a-piece : the wife brought her bill against the executors, alleging that the defendants had been made executors in trust for her. Two of the defendants admitted the trust ; but the third denied it, and insisted that at all events, if the will stamped them as trustees, it must be taken to be a trust not only for the wife but also for the next of kin. The will decla- ring that the executors were only in trust, and not declaring for whom, the Court held that the person might be averred; and two of the executors having, by their answer, confessed the trust, and it being likewise fully proved that it was the intent of the testator, and that he declared it a trust for his wife, the Court decreed the trust for the plaintiff, with costs against the adversary defendant. It is presumed that in this case a com- munication had passed between the testator and the executors, and that if a trust had not resulted upon the face of the will, the Court, on the ground of fraud, might have compelled the executors to give the beneficial interest which they took under the will, to the person to whom they had promised it in the tes-. tator's life-time. Whether the Court was right, as a trust appeared upon the will, in giving away the beneficial interest,, not of the fraudulent executors, but of the innocent next of kin, appears open to question. Crooke v. In Crooke v. Brooking (&), a testator by his will gave to his Brooking. _ , brothers Simon and Joseph, 1500Z. for such uses as he had declared to them, and by them not to be disclosed ; charging them that they would perform the same, as they would answer it at God's tribunal. The money was paid to Simon and Joseph ; and Simon, in a letter to Joseph, acknowledged the trusts to have been for Ann Crew for life and then for her sister's children. Joseph died, and one of the children filed his bill against Simon for an execution of the trust, which the Court decreed ; but the question argued appears to have been, (a) 2 Vern. 99. (6) 2 Vern. 50 and 107. CH. V. S. 3.] STATUTES OF WILLS. 7'? not between the plaintiff and the next of kin whether a valid trust was created, but as the money had been actually paid to the trustees, what class of children were the cestuis que trust, on the assumption that the trust itself was valid. And besides, this was a case before the Statute of Frauds. In the more recent case of Smith v. Attersoll{a) a testator Smith w. by his will gave fifty commercial dock shares to his two sons, Joseph and John, who were also his executors, in trust for certain purposes which the will stated had been fully explained to them. On the same day on which the will was executed, Joseph and John signed an acknowledgment that they would hold the shares upon trust for the testator's six natural children. The acknowledgment was not proved as a testamentary paper. The bill was filed by one of the six children to have the trusts of the dock shares, as expressed in the acknowledgment, carried into execution. The executors by their answer admitted the trust. It does not appear that the testator's next of kin were made parties. Lord Gifford decreed the execution of the trusts on the ground that the paper writing, though not testamentary, was an admission of the trust by the executors ; but the observation occurs that the executors had not the beneficial interest in themselves, and therefore no admission by them could give a title to another. Several cases were cited by the Court in support of :the decision, but all of them, except Crooke v. Brooking, men- tioned above, are distinguishable (&). It is a very material circumstance that the question was litigated between the executors and a cestui que trust only in the absence of the next of kin, to whom, in fact, the equitable interest had resulted. In Podmore v. Gunning (c), the principal question litigated Po^mpre ■>:. was whether the testator had in fact stamped the devisee with (a) 1 Euss. 266. vations, ante, p. 67. Metham v. (J) As Jones v. Hahhs, Gilb. Eq. Devon, 1 P. "W. 529, but the Court •Rep. 146, but there the money treated the deed as testamentary passed, and the parol trust was de- and in the nature of a codicil; and Glared in the life-time of the tes- no doubt it might have been proved tator. Inchiquin v. French, 1 Cox, as such, even if it had not been 1, but this case was mistaken, see proved already. Ambler's Eep. p. 33, and the obser- (c) 7 Sim. 644. 78 STATUTES OF WILLS. [CH. Y. S. 3. the character of a trustee, so that the equitable interest upon the face of the instrument resulted; and, in the event of the Court being of that opinion, a contest would have arisen be- tween the heir and next of kin on the one hand, and the secret cestuis que trust on the other. In the case under consideration. Sir Thomas Staines devised his residuary estate to his wife, her heirs, administrators, and assigns, " having a perfect confidence that she would act up to the views which he had communicated to her in the ultimate disposal of his property after his decease {a)." A bill was filed by the two natural daughters of Sir Thomas, alleging that Sir Thomas at the time of making his will had expressed to Lady Staines his desire of providing for the plaintiffs, and that Lady Staines had promised that if the residuary estate were devised to her she would execute his intention in the plaintiffs' favour. The Vice-Chancellor was of opinion that the language of the will did not declare Lady Staines to be a trustee ; that the words "having a perfect confidence that she would act up to the views which he had communicated to her," did not necessarily imply that any absolute direction had been given to her as to the disposition of the property, but were consistent with the testator having given to his wife either an absolute dis- cretion, or, a general recommendation leaving it to her dis- cretion to act upon it or not in such manner as she might think fit; but the Vice-Chancellor admitted that if the plaintiffs had proved that Lady Staines had undertaken to dispose of the estate in a given manner, she would have been boimd by the engagement. The plaintiffs, therefore, failed in converting Lady Staines into a trustee for themselves, and as Lady Staines was not distinctly invested with the character of trustee upon the face of the will, no equitable interest resulted. Effect of the We have stated the rule that if a testator make a devise Mortmain. Carrying the beneficial interest on the face of the will, but it appears from the admission of a devisee or by evidence that the devisee was pledged to the testator to execute a charitable trust, the Court will not allow the execution of such a trust, but wUl give the estate to the heir-at-law. The question here suggests (a) Compare Briggs v. Penny, 3 De Gex & Sm. 525 ; 3 Mae, & Grord. 546. CII. V. S. 3.] STATUTES OF WILLS. 79 itself, whether the Statute of Mortmaia(a), which declares a devise "intrust or for the benefit of" a charity to be abso- lutely void, applies to such a case, so as not only to defeat the equitable interest admitted or proved to have been intended for a charity, but also to make void the devise of the legal estate itself, so that by the effect of the statute, when the fact has been estab- lished, the devisee takes no interest either at law or in equity. Lord Hardwicke determined in Adlington v. Cann{b), that the Statute of Mortmain did not extend to trusts by parol. " I am of opinion," he said, " that the Statute of Mortmain has not abrogated the Statute of Frauds, which, being made for the public good, ought normam imponere futuris. It is true the Statute of Frauds cannot govern the particular pro- visions of the Statute of Mortmain, but it must govern the .construction of subsequent acts ; for they must be construed by rules of law, and by what is laid down in precedent acts. If it should be admitted that the Statute of Mortmain took all these cases out of the Statute of Frauds, and was intended to introduce parol evidence, it would do more mischief, by laying the foundation of a great deal of perjury, than it can possibly do good in any other respect whatsoever (c). Besides, very little inconvenience can arise from my determination to this effect, for the instances of trustees abusing a trust for charity are so frequent, that they are a sufficient warning to reason- able men not to leave their estates under such uncertainty, as to put them absolutely under a person's power, and then trust to his generosity for the disposing of them in charity (ci)." Thus, in Lord Hardwicke's view of the subject, a parol trust in mortmain, where the devisee entered into no engagement with the testator, could not be established against the devisee to deprive him of the beneficial interest (e) ; and where the devisee did enter into such an engagement, and the fact was either ad- mitted by the defendant, or established against him by evidence, the trust only was void upon principles of equity, and not the devise of the legal estate by force of the Statute of Mortmain. * (o) 9 Gr. 2, 0. 36. (e) And this is now settled law. (5) 3 Atk. 141. Walgrave v. Tebhs, 2 Kay & J. 313; (c) Id. 150. and cases cited supra. {d) Id. 153. 80 STATUTES OF WILLS. [CH. V. S. 3. Lord NortMngton, on the contrary, thought that secret trusts were within the letter of the Statute of Mortmain; and he therefore decided, that, whether the testator had held communication with the devisee (a) or not (6), the intention of creating an honorary trust would, if established, avoid the devise of the legal estate itself. "What," he says, "stands in my way? One objection is, that the beneficial devise to the trustees and their heirs by the wUl is not to be revoked or controlled by the second instrument, it not being executed according to the Statute of Frauds, and therefore it only can be taken as an honorary trust, and as such is not within the Statute of Mortmain. This is as much as to say, that, being a fraud within both acts, it is not within either. And the objection is, that it will be more inconvenient to let in fraud and perjury by opening the Statute of Frauds, than to let in devises to charities by opening the Statute of Mort- main. My opinion is, that the Statute of Mortmain meant to prevent honorary trusts or devises for charities qudcunque arte vel ingenio ; and the honorary trust infects the wiU, as much as if it were declared in the most solemn manner (c)." Sir Thomas Sewell, in the case of Bishop v. Talbot, before stated, where the fact of the trust was established on the admission of the devisee, considered the heir as entitled to a resulting trust. His Honor therefore was apparently of opinion with Lord Hardwicke, (as appears the more correct view) that, in the case of a trust in mortmain not declared with the formalities required for a wUl, the devise of the legal estate was good, as not affected by the Statute of Mortmain, though equity where there was any mala fides in the devisee would set it aside on the ground of fraud upon public policy. Statute of wills ' The provisions of the Statute of Frauds relating to wills have now in force, ° now been repealed, and the distinction which before existed between devises of real and bequests of personal estate has been abolished {d). The principles, however, established by the fore- going cases with reference to the Statute of Frauds still apply mu- tatis mutandis to the enactments of the statute at present in force. (a). Edwards v. Pike, 1 Ed. 267. (c) Boson v. Statham, 1 Ed. 512, (J) Boson V. Statham, 1 Ed. 514. 508. {d) 1 Vict. c. 26. CH. V. S. 4.] TRANSMUTATION OF POSSESSION. 81 SECTION IV. OF TEANSMTJTATION OP POSSESSION. Whebe there is valuable consideration, and a trust is intended to be created, formalities are of minor importance, since if the transaction cannot take effect by way of trust executed, it may be enforced by a Court of equity as a contract for value. Where there is no valuable consideration, it has been not unfrequently supposed that, in order to give the Court jurisdiction, there must be a transmutation of possession, i. e., the legal interest must be divested from the settlor, and transferred to some third person. But upon a careful examination of the authorities the principle appears to be, that whether there was transmutation of possession or not, the trust will be supported — provided it was in the first instance perfectly created (a). To elucidate this subject it may be convenient to marshal the cases under the following heads. First. It is evident that a trust is not perfectly created wieresome where there is a mere intention or voluntary agreement to jjjtended" establish a trust, the settlor himself contemplating some fur- ther act for the purpose of giving it completion. Thus in Cotteen v. Missing (&), Ann Lee Missing was entitled Cotteen v. to a residuary personal estate in the hands of the executors, and Charlotte Missing being in destitute circumstances, the executors applied to Ann Lee to make her some allowance. Ann Lee wrote in reply, " As to the money to be allowed to Charlotte, when you ascertain what the property is, whatever you and Mr. Missing think right that I should give, I shall abide by." The executors answered, that they thought 500Z. (a) See Ellison v. Ellison, 6 Ves. Meeh v. Kettlewell, 1 Hare, 469 ; 662 ; Pulvertoft v. Pulvertoft, 18 Fletcher v. Fletcher, 4 Haxe, 74 ; Ves. 99 ; Shane y. Cadogan, Yeni. Price y. Price, liTie,a,y. 5^%; Bridge & P. Append. No. 24 ; Edwards v. v. Bridge, 16 Beav. 315 ; Beech v. Jones, 1 M. & Or. 226 ; Wheatley Keep, 18 Beav. 285 ; Donaldson v. \. Purr, 1 Keen, 551; Garrard y. Donaldson, 1 Kay, 711; Scales y. Lauderdale, 2 R. & M. 453 ; Col- Maude, 6 De Gex, M. & Gr. 43. linson v. Patrick, 2 Keen, 123 ; (6) 1 Mad, 176. Dillon V. Coppin, 4 M. & Cr. 647 ; 83 WHEN A TRUST IS [CH. V. S. 4. would be a proper sum ; and Ann Lee then replied, " With respect to Charlotte, as you and Mr. Missing say she ought to be allowed 5001., I will readily consent to it. I am willing to do anything that is right." Under these circumstances Sir T. Plumer thought that the gift was still in fieri. " To make a complete gift there must not only be a clear intention, but the intention must be executed and carried into effect. At the date of the first letter to the executors the gift was inchoate, the quantum of property not having been ascertained. The second letter amounted to a declaration of the propriety of giving her 5001., and shews her approval of a gift to that amount, but does not give effect to the gift and carry it into execution. Nothing is said as to who is to pay the money, or when it is to be paid. The executors were not warranted in paying it out of the money in their hands. If they had done so, Mrs. Missing might have said, I meant to give the money on terms and conditions as to marriage and age. Nothing is said as to what part of her property this money was to be raised out of, whether out of the money in the funds, or out of the estate. Nothing is to be found in the letters but an inten- tion to give, and therefore this case widely differs from the cases alluded to, where acts were done carrying the gift into execution. Here the gift was not completed. Supposing it were anything like an authority to an agent, the subsequent marriage of Mrs. Missing was a revocation of such authority, as was likewise her death. This was a mere inchoate im- perfect gift not carried into feXecution, and which has therefor^ failed." Where the settlor Secondly. If the settlor propose to convert himself into a a trustee. trustee, then the trust is perfectly created so soon as the settlor has executed an express declaration of trust, intend- ing to be final and binding upon him, and in this case it is immaterial whether the nature of the property be legal or equitable. Ex parte Pye. Thus in Ex parte Pye, or Ex paHe Dubost (a), J. M. had authorised C. D. to purchase an annuity for M. G. G. for life. {a) 18 Yes. 140 ; and see Thorpe Stapleton, 14 Sim. 186 ; Searle v. V. Owen, 5 Beav. 224 ; Stapleton y. Law, 15 Sim, 99 ; Drosier T. £rere- CH. V. S. 4.] PEEFECTLT CBEATED, 83 The annuity was purchased, but in the name of J. M., who thereupon sent over a power of attorney to transfer the annuity into the name of M. G. G. Before the commission could be executed J. M. died, but Lord Eldon determined that a valid trust had been created. " The question," he said, " involves the point, whether the power of attorney amounts here to a declaration of trust. It is clear, that this Court wiU not assist a volunteer ; yet if the act is completed, though voluntary, the Court will act upon it. It has been decided, that, upon an agreement to transfer stock, this Court will not interpose ; but if the party has declared himself to be the trustee of the stock, it becomes the property of the cestui que trust without more, and the Court will act upon it. From the documents before me it does appear, that though in one sense this may be represented as the testator's personal estate, yet he has committed to writing what seems to me a sufficient declaration that he held this part of the estate in trust for the annuitant." In this case it wiU be observed, that the gift was perfected as soon as the agent had laid out the money in the purchase of the annuity. Had the purchase been made in the name of J. M. as beneficial owner, the execution of the power of attorney, as it failed to transfer the possession, would not have been a valid declaration of trust ; but the purchase was made in the name of J. M. as trustee for the annuitant, and the power of attorney and other documents were read, not as instruments originating the trust, but as proofs of the trust which had been previously created. In a late case (a) Sir J. Wigram expressed himself more cautiously than was necessary, as to the jurisdiction of the Court in enforcing a trust against the settlor himself, and suggested several accompanying circumstances as material to the establishment of such a trust. " In the case," he said, " of a formal declaration by the legal or even beneficial owner of property, declariug himself in terms the trustee of that property, ton, 15 Beav. 221 ; Bentley v. {a) Meek v. Kettlewell, 1 Hare, Machay, 15 Beav. 12 ; Bridge v. 470 ; and see Hughes v. Stubhs, 1 Bridge, 16 Beav. 315 ; Gray v. Hare, 478. Gray, 2 Sim. N.S. 273 ; Wilcocks v. Hannyngton, 5 Ir. Ch, Ee. 38. 84 /WHEN A TEUST IS [CH..V..S..4. Where the settlor appoints a stranger the trustee. Where the pro- perty is a legal interest. Colman v. Sard. for a volunteer the Court might not he hound to look heyond' the mere declaration. If the owner of property having the, legal interest in himself, were to execute an instrument by which he declared himself a trustee for another, and had disclosed that instrument to the cestui que trust, and afterwards acted upon it, that might perhaps he sufficient ; for a Court of equity, adverting to what Lord Eldon said in Ex parte Duhost, might not be bound to inquire further into an equitable title so established in evidence." Thirdly. Where the settlor purposes to make a stranger the, trustee, then to ascertain whether a trust has been perfectly created or not, we must take the following distinctions : — 1. If the subject of the trust be a legal interest, and one capable of legal transmutation, as land or chattels which pass by conveyance, assignment, or delivery, or stock which passes by transfer, in this case the trust is not perfectly created unless the legal interest be actually vested in the trustee : it is not enough that the settlor executed a deed affecting to pass it, and that he believed nothing to be wanting to give effect to the transaction : the intention of divesting himself of the legal property must in fact have been executed, or the Court will not recognise the trust (a). " I take the distinction," said Lord Eldon, " to be, that if you want the assistance of the Court to constitute you cestui que trust, and the instrument is voluntary, you shall not have that assistance for the piupose of constituting you cestui que trust, as upon a covenant to transfer stock, &c. : if it rests in covenant and is purely, volun-, tary, this Court will not execute that voluntary covenant; but if the party has completely transferred stock, &c., though it is voluntary, yet the legal conveyance being effectually made, the equitable interest will be enforced by this Court " (&). In Colman v. Sarel (c), George Davy having lOOOZ. Bank [a] See Garrard v. Lauderdale, 2 Russ. & M. 452 ; Meeh v. Kettle- well, 1 Hare, 469 ; Dillon v. Coppin, 4 M. & Cr. 647 ; Coningham v. Plunhett, 2 Y. & C. Ch. Ca. 245 ; Searle v. Law, 15 Sim. ,95 ; Price V. Price, 14 Beav. 598 ; Bridge v. Bridge, 16 Beav. 315; Weale v. Ollive, 17 Beav. 252; Beech v. Keep, 18 Beav. 285. (6) Ellison V. Ellison, 6 Tes. 662 ; and see Puhertoft v. Pulvertoft, 18 Yes. 89. (c) 1 Yes. jun. 50 ; S. C. 3 B. C C. 12. ,CH. V. S. 4.] PERFECTLY CREATED. 85 Annuities standing in his name, assigned that sum by deed upon trust for Joan Sarel for life, with remainder to her children, and covenanted to pay the dividends accordingly, hut no actual transfer of the stock was ever made. The children filed a bill for the execution of the trust, and Lord Thurlow, in dismissing the bill, observed, " When a deed is not sufficient in truth to pass the estate out of the hands of the settlor, but the party must come into equity, the Court has never yet ■executed a voluntary agreement. To do so would be to malce him who does not sufficiently convey, and his executors after his death, trustees for the person to whom he has so defectively conveyed, and there is no case where a Court of equity has ever done that." , In Antrohus v. Smith (a), a Mr. Crawfurd being entitled to Antrotus®. ,ten shares of the Forth and Clyde Navigation, wrote, upon the ™' receipt for one of the subscriptions, and signed the following indorsement, " I do hereby assign to my daughter, A. Crawfurd, all my right, title, and interest of and in the enclosed call, and ,all other calls of my subscription in the Clyde and Forth ;Navigation." After Mr. Crawford's death, the representative of A. Crawfurd filed a bill to have the shares transferred. Sir W. Grant dismissed the bill, and observed, " This instrument, of itself, was not capable of conveying the property. It is said to amount to a declaration of trust. Mr. Crawfurd was no otherwise a trustee than as any man may be called so who professes to give property by an instrument incapable of con- veying it. He was not in form declared a trustee, nor was that mode of doing what he proposed in his contemplation. He meant a gift. He says he assigns the property. But it was a gift not complete. The property was not transferred by the act. Could he himself have been compelled to give effect to the gift, by making an assijpiment ? There is no case in which a party has been compelled to perfect a gift which, in the mode of making it, he has left imperfect." 2. If the subject of the trust be a legal interest, but not one Where tie pro- capable of legal transfer, as a bond or other chose en action, interest incapaUe which cannot be assigned at law, then whether we look to of legal transfer. (o) 12 Ves. 39, 86 WHEN A TRUST IS [CH. V. S, 4. principle or authority, there is considerable difficulty. On the one hand, it may be argued that as the settlor cannot divest himself of the legal interest, to say that he shall not constitute another a trustee without passing the legal interest would be debarring him from the creation of a trust in the hands of another at all, and that the rule therefore should be that if the settlor make all the assignment of the property in his power and perfect the transaction as far as the law permits, the Court in such a case should recognise the act, and support the ralidity of the trust. On the other hand, it may be urged, that in equity the universal rule is that a Court will not enforce a voluntary agreement in favour of a volunteer ; and as by the supposition the legal interest remains iu the settlor (who there- fore at law retains the full benefit), a Court of equity will not in the absence of any consideration deprive him of that interest which he has not actually parted with. Some Judges have adopted the one view of the question, and some the other. Fortescue v. In Fortescue v. Barnett (a), A. assigned a policy to trustees, but retained possession of it, and afterwards received a bonus upon it, and then surrendered it to the insurance office. The surviving trustee filed a bill against the settlor himself for an account of the proceeds. The counsel for the defendant, the settlor, argued that there was no difference between an attempted assignment of stock, and of a bond or policy, and therefore that no trust was created; but Sir J. Leach ruled otherwise, and said, " In the case of a voluntary assignment of a bond, where the bond is not delivered but kept in the pos- session of the assignor, this Court would undoubtedly, in the administration of the assets of the assignor, consider the bond as a debt to the assignee. There is a plain distinction between an assignment of Stock where the stock has not been trans- ferred, and an assignment of a bond. In the former case, the material act remains to be done by the grantor, and nothing is in fact done which will entitle the assignee to the aid of this Court until the stock is transferred ; whereas the Court will admit the assignee of the bo7id as a creditor. In, the present (o) 3 M. & E. 36. CH. V. S. 4.] PERFECTLY CREATED. 87 case the gift of the policy appears to me to have been perfectly- complete without delivery ; nothing remained to be done by the grantor, nor could he have done what he afterwards did to defeat his own grant if the trustees had given notice of the ■assignment to the assurance office. The question does not bere turn upon any distinction between a legal and an equitable title, but simply upon whether any act remained to be done by the grantor, which, to assist a volunteer, this Court would not compel him to do. I am of opinion that no act remained to be done to complete the title of the trustees. The trustees ought to have given notice of the assignment, but their omis- sion to give notice cannot affect the cestms que trust." And in Roberts v. Lloyd (a), where Mrs. Roberts assigned a Koberts v. LloyJ. bond to a trustee with a power of attorney, and both trustee and cestuis que trust had notice of it, and after the death of the settlor, a bill was filed by one of the cestuis que trust against the trustee and the obligor, on the ground that the trustee had by his agent received and misapplied the money, and that the obligor with a knowledge of the settlement had been a party to the misapplication, Lord Lang'dale said, " I think Mrs. Eoberts did everything incumbent on her to make the trust complete and valid, and that the plaintiff is entitled to have the benefit of it;" and both trustee and obligor were held liable. So in Blakely v. Brady (b), A. had a promissory note to pay Blakeiyi;. Brady, the sum of 1620L on a certain notice, and interest in the mean time, and assigned it to B. by deed, and gave him a power of attorney, and then A. died, and B. filed his bill against his administrator to have the benefit of the trust. Lord Plunket decreed the money to the plaintiff. " The doctrine," he said, ■" that a chose en action is not legally assignable, does not appear to me to be one that a Court of equity is called on to ■extend beyond the exact limits to which it has been already carried by distinct authority. If the transaction is not in itself illegal, and if no act remains to be done by the grantor, why is it not to be acted on as a valid and complete transaction beween the parties ? " (c) (a) 2 Beav. 376. (6) 2 Drur. & Walsh, 311. (c) lb. 326. 88 WHEN A TRUST IS [CH. V.S. 4. Edwards ». Jones. On the other hand in Edwards v. Jones (a), Mary Custance being entitled to a bond wrote and signed the following endorse- ment upon it, " I, Mary Custance, of, &c., do hereby assign and transfer the within bond, &c. unto and to the use of my niece, E. Edwards, of, &c., with full power and authority for the said E. Edwards to sue for and recover the amount thereof, &c.," and deKvered the bond to the assignee. On the death of Mary Custance, her niece E. Edwards filed a bill against the executor for an assignment of the bond. The Vice- Chancellor of England dismissed the bill with costs, and on appeal to the Lord Chancellor the decision was affirmed. In the course of his judgment, Lord Cottenham referred to the case of For- tescue v. Barnett, and endeavoured to distinguish it from the case before him, but it is evident that Sir J. Leach's decision did not meet with his approbation. Wardi).Audland. Again, in Ward V. Audland{b), where A. assigned to trustees a policy, mortgages, and other choses in action, to trustees, and the cestuis que trust filed a bUl against the executors of A. for the establishment of the trust, the Vice -Chancellor of England dismissed the bill with costs, and said, " There was no equity for the Court to interfere, but what the plaintiffs got by their deed they might maintain by their deed." The case was carried on appeal to the Lord Chancellor, who dis- missed the biU, from error in the form of the pleadings, and without prejudice to the institution of another suit; but apparently he adhered to the doctrine laid down in Edwards V. Jones (c). A suit was subsequently instituted at the KoUs, and his Lordship dismissed the bill on the same grounds on -which the Vice- Chancellor had refused relief in the former .suit {d). The opinion of Sir J. Wigram in the late case of Meek v. KettleweU{e) was strongly expressed in support of the view taken by the Vice-Chancellor of England and Lord Cottenham. However, in a more recent case (/) Lord Justice K. Bruce observed, " It is upon legal and equitable principle, we appre- (a) 1 M. & Cr. 226. (e) 1 Hare, 464 ; and see Scales [b) 8 Sim. 571. v. Maude, 6 De Gex, M. & G. 43. (e) Cooper's Ca. 1837-8, p. 146. (/) Kekewich v. Manning, 1 De ■ Id) 8 Beav. 201. ofex, Mac. & Gord. 187, 188. <3H. V. S. 4.] PERFECTLY CREATED. 89 hend, clear that a person sui juris acting freely, fairly, arid with ■sufficient knowledge, ought to have and has it in his power to make in a binding and effectual manner a voluntary gift of any part of his property, whether capable or incapable .of manual delivery, whether in possession or reversionary or howsoever circumstanced," and it is conceived that this principle wUl for the future prevail. 3. If the subject of the trust be an equitable interest, then Where the pro- a trust is perfectly created when the settlor has executed an table interest."" assignment of it to a new trustee ; for an equitable interest is capable of transmission from one to another ; and here the Court finds the relation of trustee and cestui que trust estab- lished without the necessity of calling on the settlor to join in any act for giving it completion. This was decided by Sir "W. Grant in the case of Sloane v. Sloaner.Cadogan. Cadogan{a). W. B. Cadogan was entitled, subject to his father Lord Cadogan's life interest therein, to one quarter share of a sum of 20,000L, invested in Bank annuities in the ■names of the trustees of Lord Cadogan's marriage-settlement, and this reversionary interest he assigned to four trustees upon trust as to lOOOZ. for himself, his appointees or assigns, and as to the residue upon trust for himself for life, with remainder to Jane his wife for life, with remainder to their issue as they should jointly appoint, and in default of issue as W. B. Cadogan should by deed or -will appoint, and in default of such appointment upon trust for Lord Cadogan, the father, his executors, administrators, and assigns. W. B. Cadogan by will appointed Jane his wife sole executrix, and gave her " all his estate and effects." There was no issue, and on the death of W. B. Cadogan Jane his widow filed a bill ■against the executors of Lord Cadogan (who were in posses- sion of the trust fund, but in what character does not appear) to have her right to the whole one quarter share of the 20,000Z. (o) Append, to Vend. & Puroli, date of settlement the legal estate -Queere, also, if the same point was was not in the settlor; and see notinleimMlisonY.Mlison,6Yes. Seed v. O'Brien, 7 Beav. 32; 656 ; for though the facts are very Bridge v. Bridge, 16 Beav. 315 ; imperfectly stated, it would seem Gannon v. White, 2 Ir. Eq. Ee. from some expressions that at the 207. 90 WJISN A TRUST IS [CH. V. S. 4. established. Her claim was advanced upon two grounds, 1, That supposing the assignment by W. B. Cadogan to be validi, the plaintiff took as appointee under the will in execution of the power. 2. That if the assignment were invalid, then the plaintiff took as executrix of W. B. Cadogan. The defendr ants, the executors of Lord Cadogan, insisted that the assign- ment was valid, but that the will was not an execution of the power, and, therefore, that the ultimate limitation to Lord Cadogan (subject to the plaintiff's life interest) took effect; and so it was decided. In the course of the argument Sir W. Grant remarked, "The assignment was as good an assign- ment as could be made of this reversionary interest ; you may be a trustee for a volunteer; " and in his judgment he observed, "It was said that the gift to Lord Cadogan was merely voluntary, and Lord Cadogan could not have had any assist- ance from this Court, that the question is the same as if the representatives (of Lord Cadogan) were seeking relief, as the circumstance of his executors having the money makes no difference, and I think that that circumstance is immaterial. But as agaiast the party himself and his representatives a voluntary settlement is binding. The Court wUl not interfere to give perfection to the instrument, but you may constitute one a trustee for a volunteer. Here the fund was vested in trustees. W. B. Cadogan had an equitable reversionary interest in that fund, and he has assigned it to certain trustees, and then the first trustees are trustees for his •assigns, and they may come here, for when the trust is created no consideration is essential, and the Court will execute it though voluntary." " If," said Sir J. Wigram, " the equitable owner of pro- perty, the legal interest of which is in a trustee, should ex- ecute a voluntary assignment and authorise the assignee to .sue for and recover the property from that trustee, and the assignee should give notice thereof to the trustee, and the trustee should accept the notice and act upon it, by paying the interest and dividends of the trust property to the assignee during the life of the assignor, and with his consent, it might be difficult for the executor or administrator of the assignor afterwards to contend that the gift of the property CH. V. S. 4.] PEErECTLY CREATED. '91 was not perfect in equity (a). The Vice-Chancellor tere enumerates all the safeguards and confirmatory acts of which the transaction was capable, but it must not be inferred that if some of these were wanting the trust would not be supported. In one case(&) the late Vice-Chancellor of England ques- tioned the principle of Shane v. Gadogan. But in Kekewich V. Manning (c), Lord Justice K. Bruce observed, " Suppose stock or money to be legally vested in A. as a trustee for B. for life, and subject to B.'s life interest for C. absolutely; surely it must be competent to C. in B.'s lifetime, with or without the consent of A. to make an effectual gift of C.'s interest to D. by way of pure bounty, leaving the legal interest and legal title untouched. If so, can C. do this better or more effectually than by executing an assignment to D. ? It may possibly be thought necessary that notice should be given to A., but upon that we express no opinion." These principles have since been acted upon in Voyle v. Hughes (d), and Shane v. Gadogan may now be regarded as established law. It had before been contended that the assignment operated by way of contract, and as there was no consideration the Court could not enforce it; but the rule now is, that the assignment passes the equitable estate, and even if .notice be not given to the trustees of the fund, the assignment is good as against the assignor (e). In other cases a party entitled to an equitable interest, where new trust instead of assigning it to new trustees, has directed the old out new trustees trustees to stand possessed of it upon the new trusts (/), and, of course, it has been considered quite immaterial whether the -settlor selected new trustees or was content with the original trustees. In other cases the owner of an equitable interest has simply Assignment to a assigned it to a stranger for the stranger's own benefit (gf), own benefit. (a) Meeh v. Kettlewell, 1 Hare, (/) Byeroft v. Christy, 3 Beav. 471. 238 ; M'Fadden v. Jenkins, 1 Hare, (J) Beatson v. Beatson, 12 Sim. 458, 1 Phill. 153. 281. {g) Cotteen v. Missing, 1 Mad. ■ (c) 1 De Gex, Mac. & Gord. p. 188. 176 ; Collinson v. Patrick, 2 Keen, • Id) 2 8m. & Gif. 18. 123 ; and see Godsall v. Webb, 2 (e) Donaldson v. Donaldson, 1 Keen, 99. Kay, 711. 93 VOLUNTARY SETTLEMENTS. [CH. V, S. 4. ■which also in principle is the same as Sldane v. Cadogan, for there can be no difference between the gift of an equitable interest to A. and the gift of it to B. in trust for A. Meek v. Kettle- In a late case (a) it was decided by Sir J. Wigram, that a voluntary assignment of a mere expectancy (as of an heir or next of kin) in an equitable interest, and not comnmnicated to the trustees, did not amount to the creation of a trust. This .was the only point actually decided, and perhaps a distinction may be said to exist between the settlement of an actual interest and an expectancy, for a trust to be enforced must be perfectly created, whereas any dealing with what a person has not, but only expects to have, must necessarily in some sense be in fieri. However, in the course of his argument the learned Judge denied that any distinction existed between settlements of a legal interest, as in Edwards v. Jones, and of an equitable interest, as in Sloane v. Cadogan, two cases which it is submitted, both on principle and authority, ought not to be confounded. Great importance was also attached by his Honor to the circumstance that notice of the assignment was not given to the trustees. But notice in these cases is not indispensable. As against the .settlor, an equitable interest is perfectly transferred without notice. It is only as between purchasers that the service of notice on the trustee, or the want of it, has a material effect upon the transfer (6). Meek v. Kettlewell was afterwards heard on appeal before Lord Lynd- hurst, who affirmed the decision (c). Voluntary settle- I^ * Complete voluntary settlement be once executed it Sust defeated"by ^^^^°^ ^^ revoked by a subsequent voluntary settlement ((i) ; subsequent sale, but a voluntary settlement of land by way of trust, perfectly created is liable, under the 27 Eliz. cap. 4, like a settlement of the legal estate, to be defeated by a subsequent sale to a purchaser, even with notice. And the cestid que trust can neither obtain an injunction against the sale, though the settlement was founded on meritorious consideration, as a provision for a wife (o) Meek v. Kettlewell, 1 Hare, (c) 1 PMU. 342. 464. (d) Newton v. Askew, 11 Beav. (6) See Burn Y. Carvalho, 4: M.. & 145; Rycroft v. Christy, 3 Beav. Cr. 690; Donaldson v. Donaldson, 238. 1 Kay, 711. CH. V. S. 4. J VOLUNTARY SETTLEMENTS.' 93' or child («), nor can follow the estate into the hands of the purchaser (b), nor charge him with misapplication of the pur- chase money, if, with notice of the voluntary settlement, he paid it to the vendor (c), nor can come upon the settlor him- self to compensate the cestuis que trust for their loss (d). However, the trust will be executed by the Court until the estate be actually sold (e) ; and the author of the settlement, if he contract for the sale, cannot himself file a bill to enforce the specific performance (/), though the purchaser may do so (g), and though the settlor himself may defeat the trust by a sub- sequent sale, the heir or devisee of the settlor has no such power (h) ; but chattels personal (in which respect they differ from chattels real (i) ) are not within the statute of 27 Eliz. c. 4, relating to purchasers, and therefore a voluntary settle-^ ment of chattels personal cannot be defeated by a subsequent sale {k). Again, a voluntary settlement either of real or personal estate by one virtually insolvent or largely indebted at the time, wUl by the 13 Eliz. c. 5, be void as against creditors (l). ■Whether Court As every agreement under hand and seal carries a consider- enforce mecifie ation upon the face of it, and wUl support an action at law, the performance of ^ -^ -^ _ _ agreements inference has not unfrequently been drawn, that equity in such (a) Pulvertoft v. Tulvertoft, 18 (ff) Willats v. Bushy, 5 Beav. 193. Yes. 84. {h) Doe v. jtusham, 17 Q.. B. (5) Williamson v. Williamson, 1 E,ep. 723. Yes. 516, per Lord Hardwicke. («) Saunders v. Dehew, 2 Vern. (c) Evelyn v. Templar, 2 B. C. C. 272, second note. 148 ; and see Pulvertoft v. Puher- {k) Pill v. Cureton, 2 M. & E. toft, 18 Ves. 91, 93; Buckle v. bdZ; M'Donel\.Hesilrige,lQ'&ea.Y. Mitchell, 18 Ves. 112; but compare 346; Jones v. Croucher, 1 Sim. & Leach v. Dean (1 Ch. Ee. 146) with Stu. 315 (this case cites also the Pulvertoft v. Pulvertoft, 18 Ves. 91 ; authority of Sir W. Grant in Shane and see 18 Ves. 92, note (b). . v. Cadogan, Append, to Vend. & (d) Williamson v. Codrington, 1 Purch., but the dictum does not Ves. 516, per Lord Hardwicke ; but appear) ; Meek v. Kettlewell, 1 Hare, see Leach v. Dean, 1 Ch. Ee. 146 ; 473, per Sir J. 'Wigram. .S. C. cited Pulvertoft v. Pulvertoft, (1) Fletcher v. Sidley, 2 Vern. X8 Ves. 91. 490; Taylor v. Jones, 2 Atk. 600; (e) Pulvertoft v. Pulvertoft, 18 Townsendy. Westacott, 2 Be&Y.SiO; Yes. 94. Skarfy. Soulhy, 1 Mac. & Gor. 364; (/) Johnson v. Legard, Turn. & Re Magawley's Trust, 5 De Gex & Euss. 294; Smith v. Garland, 2 'Bm.\;JenkynM.raughan,Z^iewvy, Mer. 123. 419. 94 AGREEMENTS UNDER SEAL. [CH. V. S. 4. under seal where there is no valuable consideration. a case, tliougTi the triist has not been perfectly created, will, specifically execute the contract in favour of volunteers. But the doctrine is at once contradicted by the circumstance that, equity never enforced a covenant to stand seised to the use of a stranger in hlood ; and, if we examine the authorities, we shall find there is very little ground in support of the position. In Wiseman v. Roper (a) the covenant was entered into for the purpose of reconciling family differences — a consideration always held to be good (6). Beard v. Nutthall (c) was the ease of a bond from a husband to the wife, which is not an agree- ment to do a future act, but the perfect creation of a present debt. In Husband v. Pollard (d), a lease was assigned to a volunteer, with a covenant to renew, and a Court of equity compelled the execution of the covenant as incidental to the lease. In other cases the covenant has been enforced in order to avoid circuity, inasmuch as the trustees, with whom the covenant was entered into, might have recovered at law, not merely nominal damages, but the full value of the estate (e). At all events, it is well settled at the present day, that a voluntary covenant, notwithstanding the solemnity of the seal, will not be specifically executed (/). It has also been sometimes supposed that where the trust is (a) 1 Ch. E,e. 158. ' (6) See Persse v. Persse, 7 CI. & Pin. 279 ; Heap v. Tmge, 9 Hare, 90 ; Dimsdale v. Dimsdale, 3 Drew, 556. (c) 1 Vern. 427. {d) Cited Randal v. Randal, 2 P. "W. 467 ; and see Williamson v. Codrington, 1 Ves. 511 ; Harvey v. Audland, 14 Sim. 531. (e) Vernon v. Vernon, 2 P. W. 594 ; Goring v. Nash, 3 Atk. 186 ; 2nd ground ; S. C. cited 1 Ves. 513 ; Stephens v. Trueman, 1 Ves. 73. (/) Hale V. Lamhe, 2 Ed. 294, per Lord Northington ; Fursaker t. Robinson, Pr. Ch. 475 ; Evelyn v. Templar, 2 B. C. C. 148 ; Colman y. Sarel, 3 B. C. C. 12 ; Jefferys v. Jefferys, Cr. & Phil. 138 ; Meeh v. Kettlewell, 1 Hare, 474, per Sir J. Wigram ; Fletcher v. Fletcher, 4 Hare, 74, per eundem ; Newton v. Askew, 1 1 Beav. 146 ; Dillon v. Cop- pin, 4 Cr, & M. 647 ; Kehewich v. Manning, 1 De G. M. & G. 188. But a voluntary covenant to pay a sum to A. in trust for B. lias been allowed to create a debt in favour of B. ; Fletcher v. Fletcher, 4 Hare, 67 ; and see Bridge v. Bridge, 16 Beav, 315. But as the ground of this is, that the covenant is perfect at law and the covenantee could recover upon it, it seems to follow that where only nominal damages would be given at law, a Court of equity would not allow proof of the whole sum. See Pulvertoft v. Puhertoft, 18 Ves. 93 ; Holloway v. Headington, 8 Sim. 324; Cox v. Barnard, 8 Hare, 310. CH. V. S. 4.] MERITORIOUS CONSIDERATION. 95 imperfectly created, the Court, without proof of valuable con- Meritorious sideration, will act upon meritorious consideration, as payment of debts, or provision for a wife or child (a). The covenant to stand seised to uses, and the jurisdiction of the Court in supplying surrenders, and aiding the defective exe- cution of powers, have generally been referred to as establishing, or at least countenancing, this doctrine. As regards the covenant to stand seised to uses, it is evident Analogy of cove- . . ... „ . , nant to stand that mere meritorious consideration was not a sufficient ground seised to uses. to attract the jurisdiction of the Court ; for no use would have arisen in favour of a wife or child, unless there had been a covenant. " There are several ways in the law," said Lord Chief Justice Holt, " for declaring of uses, whether upon trans- mutation of possession or without it. If a use be declared upon transmutation of possession, as in a fine or feoffment, it is sufficient for the party on the transmutation to declare that the use shall be to such a party, and of such an estate ; but if a use arise without transmutation of possession, the use then does not arise by virtue of any declaration or appointment, but there must be some precedent obligation to oblige the party declaring the use, which must be founded on some considera- tion; for a use, having its foundation generally on grounds of equity, could not be relieved in Chancery without transmutation of possession, or an agreement founded on a consideration; and, therefore, if bargain and sale were made of a man's lands^ on the payment of the money the use would have arisen without deed by parol; hut, if the use was in consideration of blood, then it could not arise by parol agreement without a deed, because that agreement was not an obliging agreement — it wanted a con- sideration, and therefore, to make it an obliging agreement, there was necessity of a deed " (&). Thus, if equity be governed by the strict analogy of uses, the Court cannot act upon meri- lorious consideration where the contract is by parol; and though, where the agreement is under seal, the argument of analogy applies, yet it follows not that equity will now raise a (a) A cMld may plead meritorious it as against the child ; Downing consideration as against the parent, v. Townsend, Amb. 592. hut of course a parent cannot plead (J) Jones v. Morley, 12 Mod. 161. 9S MERITORIOUS CONSIDERATION. [CH. V. S. 4. Analogy from supplying surrenders of copyholds. Analogy of aiding the defective execution of powers. trust, because formerly it would have created a use : a bargain.- and sale for 5s. consideration still operates by way of convey- ance to transfer the estate : but, should the bargain and sale be void as such for want of an indenture, or an indenture duly inroUed, it could not be argued that the agreement at the present day would be specifically executed upon the basis of a trust. It may further be remarked, that, if the covenant ta stand seised to uses were now to regulate the administration of trusts, there would still be no ground for extending the relief to creditors, who, however, it is admitted on all hands, are equally entitled to the benefit of meritorious consideration. And the covenant to stand seised to uses extended, we must remember, not only to a wife and child, but also to hrothersi nephews, and cousins ; but no one, at the present day, would think of admitting th« same latitude in the execution of a trust. With respect to the jurisdiction of the Court in supplying surrenders of copyholds, the principle upon which the relief is founded appears to be this, that as the heir was never meant by the law to take otherwise than in default of the ancestor's will, if the ancestor manifest any intention in favour of a meri- torious object, the Court will not suffer the mere want of form to carry a benefit to the representative. " I have looked," said Lord Alvanley, " at all the cases I can find, upon what principle this Court goes in supplying a defect. It is this — Whenever a man, having power over an estate, whether ownership or not, in discharge of moral or natural obligation shows an intention to execute such power, the Court will operate upon the conscience of the heir to make him perfect this intention. This is not to be confounded with the case of the heir's being disinherited by a will of freeholds not duly executed : there is no will at all : the Court cannot see there is such an in- strument: but whenever there is such a power, it has been executed" (a). The ground, upon which the Court aids the defective execu- tion of powers, will be found upon examination to be precisely (a) Chapman v. Oibson, 3 B. C, C. 230 ; and see Ellis v. Nimmo, Lloyd & Goold, t. Sugden, 341, 348, PH. V. S.-4.] JIEEITORIOUS CONSIDEEATION: 97 that upon which it supplies the surrenders of copyholds. The power, to the extent to which it may be exercised, is regarded in equity as part of the dominion — as a portion of the actual estate ; and the donee of it is pro tanto the iond fide owner of the property, and the person taking in default of the donee's disposition is a quasi heir (a). The only distinction between an actual heir and the person taking in default of the power, is this, that the former is so constituted by course of law, while the latter is a quasi heir specially appointed by the settlor. Thus, in aiding the defective execution of powers, the Court says, as in supplying surrenders, — the donee of the power, who is the owner of the property to the extent of that power, has indicated an intention of providing for a meritorious object; and the person taking in default of the power, who is a kind of heir, shall not, through want of form, run away with the estate from those who are much better entitled. The authorities upon the subject of meritorious consideration are somewhat conflicting, but the results appear to be these (6) : — It is clear that an agreement founded on meritorious con- Agreement founded on me- sideration wUl not be executed as against the settlor himself (c). ritorfous con- Indeed, relief in such a case would oifend against the security not be enforced of property ; for if a man will improvidently bind himself by a tbr^mS^^'' complete alienation, the Court will not unloose the fetters he hath put upon himself, but he must lie down under his own ■folly (d) ; but if the Court interpose where the act is left incom- plete, what is it but to wrest property from a person who has not legally parted with it ? Another observation that suggests itself is, that during the life of the settlor the ground of the meritorious consideration scarcely seems to apply; for can it {a) See Holmes v. Coghill, 12 v. Nash, 3 Atk. 186 ; Barley v. Ves. 213 ; Coventry v. Coventry, Darley, 3 Atk. 399 ; Hale v. Lamh, at the end of Francis's Maxims of 2 Ed. 292 ; Evelyn v. Templar, 2 Equity. B. C. C. 148 ; Colman v. Sarell, 1 (i) See Bonham v. Newcomb, 2" Ves. jun, 50; S. C. 3 B. C. C. 12 Vent. 365; Leech v. Leech, 1 Ch. Antrohus v. Smith, 12 Ves. 39 Ca. 249 ; Fothergill v. Fothergill, Rodger s v. Marshall, 17 Ves. 294 Preem. 256 ; Sear v. Ashwell, cited Ellis v. Nimmo, Lloyd & Goold. 333 Gordon v. Gordon, 3 gw. 411, see cases discussed, App. No. III. note ; Watts v. Biillas, 1 P. W. 60 ; (c) Antrohus v. Smith, 12 Ves. 39. Bolton V. Bolton, Serjt. Hill's MSS. (<^) Tillers v. Beaumont, 1 Vern. 77; S. C. 3 .Sw. 414, note ; Goring 101, per Cur. H 98 MEEITORIOUS CONSIDEEATION. [CH. V. S. 4. be thought to be the duty of a husband to endow his wife, during the coverture, with a separate and independent pro- vision ? or is a parent bound by any natural or moral obHgation to impoverish himself (for such a case may be supposed) for the purpose of enriching a child ? or has a Court of equity the jurisdiction to appropriate a specific fund to creditors, when, the debtor stiU living, the presumption of law is, that the creditor can obtain satisfaction of his debt by the usual legal process ? It is after the decease of the settlor that meritorious consideration becomes such a powerful plea in a court of equity. The wife and the children have" then lost the personal support of the husband and parent, and who can then have a juster claim to the inheritance of his property ? The creditor is then barred by the act of God of his remedy against the debtor, and, should the assets prove insufficient, how but by the assistance of equity can he hope to be satisfied his demand ? Another objection to the execution of a voluntary contract against the settlor himself, at least in respect of land, is the principle expressed by Lord Cowper, that Equity, like Nature, will do nothing in vain {a) ; as if money be directed to be con- verted into land, or land into money, the devisee or legatee may elect to take the property in its original state, for, should the Court direct an actual conversion, the devisee or legatee might immediately annul the order by resorting to a re-coa- version. And so, should the Court decree the specific per- formance of a contract regarding realty for meritorious con- sideration, the property the next moment might be disposed of to a hond fide purchaser, and the settlement become perfectly nugatory. Again, if the imperfect gift can be enforced against the settlor himself, then the equitable right must form a lien upon the property, and, upon the death of the settlor, his heir would, in all events, be bound to convey ; but, even in aiding the defective execution of powers and supplying surrenders of copyholds, a previous inquiry by the Master is invariably directed, whether the heir of the settlor has any other adequate provision. But will a contract founded on meritorious consideration, (a) Seeley v. Jago, 1 P. W. 389 ; Ch. Ca. 243 ; but see Puhertoft v. aud see Bellingham v. Lowther, 1 Puhertoft, 18 Yes. 99. CH. V. S. 4.] MERITORIOUS CONSIDERATION. 99 though void as against the settlor himself, he enforced as How far enforced . . , , - _ , as against parties between "parties claiming under the settlor ? It seems to have claiming under been always admitted, that if the settlor sell the estate or ™' become indebted, the equity of the cestui que trust claiming on the ground of meritorious consideration, will not bind a pur- chaser or creditors {a). But if he subsequently make a voluntary settlement, or die without disposing of the estate by act inter vivos, will the equity attach as against the volunteers under the settlement (6), or a devisee (c), or the heir at law {d) ? The old cases would rather lead to the conclusion that the agreement would be specifically executed, with however the savitig clause, that the Court would not have enforced it even as against these classes of persons, where they too could plead meritorious consideration (as if they were the children of the settlor), with- out a previous inquiry by the Master, whether they had any adequate provision independently of the estate (e). At the present day, however, it seems to be established that even as against volunteers claiming under the settlor, whether with or without any provision aliunde, a voluntary agreement whether under seal or not, whether coupled with a valid trust of other property settled at the same time or not, cannot be enforced on the mere ground of meritorious consideration (/). We have laid down the rule that the trust will be enforced when it has been perfectly created, whether there was transmuta- tion of possession or not. It is equally clear that a trust once perfectly created, whether by transmutation of possession or not, cannot be defeated by the subsequent act of the settlor, and that the circumstance of the legal interest becoming revested in the settlor is immaterial (g). (a) Bolton v. Bolton, 3 Serjt. (e) See Goring v. Nash ; Hodgers Hill's MSS. 77 ; S. a S Sw. 414, v. Marshall, ubi supra. note; Goring v. Nash, 3 Atk. 186; (/) Jefferys v. Jefferys, 1 Cr. & Finch v. Earl of Winchelsea, 1 P. Ph.. 138 ; Antrohus v. Smith, 12 W. 277 ; and see Garrard v. Lau- Ves. 39 ; Evelyn v. Templar, 2 B. derdale, 2 R. & M. 453, 454. C, C. 148 ; Holloviay v. Seadington, (6) Bolton V. Bolton, uM supra. 8 Sim. 325. The high authority, (e) lb. however, of Lord St. Leonards is iu [d) Watts V. Bullas, 1 P. "W. 60 ; the opposite scale ; Ellis v Nimmo, Goring J.Nash, 3 Atk. 186; Badgers Lloyd & Goold, t. Sugd. 333. V. Marshall, 17 Ves. 294. {g) Ellison v. Ellison, 6 Ves. 656 ^ Smith V. Lyne, 2 T & C. Ch. Ca. 345. H 2 100 INTENTION. [CH..V..S. 4. GJaskell v, 6askeU, No trust unless Again, in every case of the creation of a trust, it is the there be an m- _ ° ' •' tentiou to create intention that governs ; and if upon a consideration of all the circumstances the Court is of opinion that the settlor did not mean to create a trust, then, whether there was transmutation of possession or not, the Court will not raise up a trust where none in fact was contemplated. Thus where a person wrote a letter to his bankers, and directed them to transfer certain sums into the names of him- self and three others, as trustees for his wife during her life, and after her death for his son during his minority, and the transfers were effected accordingly, but it appeared in evidence that the settlor never communicated the facts to the other trustees, and that he gave the directions under the impression that he could thus avoid the legacy duty, it was held that the fund had never been placed out of the settlor's power, but he' might at any time have revoked the directions, and therefore the money was to be considered as stUl part of his personal estate ia). And in another case (&), where a testatrix gave a legacy of 100?. to A., and after making her will drew a cheque for 150J. in favour of B. ; and at the same time gave him verbal direc- tions, when the legacy was paid, to make up to the legatee the difference for the lOOZ. and the price of a share in the London and Birmingham Railway Company, and the sum of 150i. was transferred by the bankers, in the testatrix's lifetime, from her account to the account of B. ; the Court held that it was a private arrangement between the testatrix and B., and meant to be revocable like the will ; and therefore, that B. was merely A.'s agent, and that no trust was created. Again, where a person directed his agents to invest a sum in the purchase of 4000Z. stock in the names of himself and his wife in trust for his son ; and the agents wrote that they had purchased the stock, but that it could not be done as he desired, as the bank did not admit notice of any trust upon their books, and the settlor thereafter treated the stock as his own by receiving the dividends ; the Court held. Hughes V. Stubbs. (a) Oaskell v. Oashell, 2 Y. & J. 502. (6) Hughes v. StuUs, 1 Hare, 476. CH. V. S. 4.] INTENTION. | / OFC, 101 I I 8 that as the intention had not been carried out, no trusi was '^25 created {a). ' • ' j^, . Again, where a person, having deposited in a savings hank Keld v. Londs- as much money in his own name as the rules allowed, deposited a further sum in his name as trustee for his sister, but without making any communication to her ; and it appeared that he made such deposit with a view of evading the rules of the bank ,and not to benefit his sister ; and by the act of parliament he retained the control of the fund; the Court held that no trust was created (b). So a trust for payment of debts, created without the con- Voluntary trust currence of the creditors, is construed, though there be trans- dTbteT"^^" ° mutation of possession, not as conferring an interest which the creditors could enforce in equity, but as an arrangement between the settlor and his trustees for his own private con- venience, and revocable at pleasure (c). Upon a similar principle, it has been held that a grant from the Crown of prizes taken in war, to trustees upon trust to dis- tribute in a particular manner amongst the captors, gives them no right which they can enforce in equity; but the Crown may, at any time before the final distribution, recall its direc- tions and substitute others (d). So an ostensible, but not actual cestui que trust, exists where Trusts to pay expenses, &o. in the trustees are directed to pay out of the estate the costs and the first place. charges of the management and administration of the trust; for the persons employed by the trustees have, notwithstanding that declaration, no lien upon the trust fund, but only a remedy against the trustees upon the ground of the contract (e). How- ever, if there be a positive direction to the trustees to employ A. as auditor or receiver, and allow him a proper salary, it has been held to constitute a trust in favour of A. (/). But if a testator (a) Smith v. Warde, 15 Sim. 56. {d) Alexander v. Duke of Wel- (J) Field V. Lonsdale, 13 Beav. lington, 2 R. & M. 35. 78. (e) Worrall v. Harford, 8 Ves. (c) Wallwyn v. Coutts, 3 Mer. 4 ; Hall v. Laver, 1 Hare, 671. 707 ; S. C. 3 Sim. 14 ; Garrard v. (/) Williams v. Corbett, 8 Sim. lord Lauderdale, 3 Sim. 1 ; 2 R. 349 ; Hibbert v. Hibbert, 3 Mer. & M. 451. This subject will he 681 ; Consett v. Bell, 1 Y. & C. Ch. treated of under the head of Trusts Ca. 569. for the payment of debts. 102 INTENTION. [CH. V. S. 4. • merely recommend or express a desire that his trustees should employ A. as receiver, the question is, whether the words used amount to a trust, or only to an expression of opinion and advice : and to discover the meaning, the Court examines the provisions of the will, and if it finds that, to consider the words as a trust would he inconsistent with the general cha- racter of the wUl, which assumes that the administration of the estate is to be unfettered by such a trust in favour of A., the Court comes to the conclusion that the words were meant only by way of suggestion and advice (a). [a] Shaw v. Lawless, 1 L. & Gr. Q-.i. Plunk. 559; Findeny, Stephens, t. Sugd. 154; reversed 1 Dr. & 2 Phill. 142; KnoU v. Cottee, 2 Walsli, 512 ; 6 CI. & F. 129 ; LI. & PkiU. 192, CHAPTER VL OF THE OBJECT PROPOSED BY THE TRUST- Trusts, with reference to their object, may he distributed into Law/id and Unlawful ; the former, such as are directed to some legitimate purpose ; the latter, such as are in contraven- tion of the policy of the law. It is almost unnecessary to observe, that, in creating a trust, care must be taken to confine it within allowable bounds. SECTION I. OE lAWniL TEtrSTS. As a general rule, the intention of the settlor, whatever it may be, shall be carried into effect (a). And if the object of the trust do not contravene the policy No objection to a „, ,, . trust because the 01 tne law, the mere circumstance that the same end cannot be legal estate can- efifectuated by moulding the legal estate, is no argument that ^^^^^ ^^ ^^^^ it cannot be accomplished through the medium of the equi- table. The common law has interwoven with it many technical rules, the reason of which does not appear, or at the present day does not apply ; but a trust is a thing sui generis, and, where puhKc policy is not disturbed, will be executed by the Court agreeably to the settlor's intention. In legal estates a fee cannot, except by executory devise, be Fee upon a fee. limited upon a fee ; but this modification of property was allow- able in uses, and by the statute of Hen. 8. has gained admit- (a) Attorney- General v. Sands, on Uses, 79 ; Burgess v. Wlieate, 1 Hard. 494, per Lord Hale ; Pawlett Ed. 195, per Sir T. Clarke. V. Attorney- General, ib. 469; Bacon 104 LAWFUL TEUSTS. [CH. VI. S. 1. Contingent remainders. Limitations of chattels. tance into legal estates, and is now matter of daily occurrence in settlements by way of trust (a). At law, except in executory devises a freehold contingent limitation must be supported by a freehold particular estate, and if the contingent limitation do not vest at the determina- tion of the particular estate, it is extinguished ; but to trusts the rule is held not to be applicable^ or, as the doctrine is expressed, the legal estate in the trustees is sufficient to sup- port all the equitable interests (b). At law a chattel real can by will only, and not by deed, and a chattel personal can neither by will nor deed, be limited to one person for life, with remainder to another ; but in trusts a chattel interest, whether real or personal, can be subjected to any number of limitations, provided there be no perpetuity. "It is objected," said Lord Nottingham, "that a lease for years, which is a chattel, will not bear a contingent limitation in regard of the poverty and meanness of the estate. Now, as to this point, the difference between a chattel and an inheritance is a difference only in words, but not in substance or reason, or in the nature of the thing ; for the owner of a lease has as absolute a power over his lease, as he that hath an inheritance hath over that ; and therefore, when no perpetuity is introduced, nor any inconveniency doth appear, there no rule of law is broken. It hath happened sometimes, and doth frequently, that men have no estates at all, but what consist in leases for years ; now, it were, not only very severe, but, under favour, very absurd to say, that he who has no other estate, but what consists in leases for years, shall be incapable to provide for the contingencies of his own family " (c). A testator had devised to one that served the cure of a church, and to all that should serve the cure after him, all the tithes, profits, &c. ; but, as the successive curates were not a body corporate, they were incapable of taking the legal estate : however, equity carried the intention into effect, and decreed the devisee and his heirs to be trustees for the persons intended (a) Duke of Norfolk's case, 3 Ch. Talb. 145 ; Hopkins v. Sopkins, Ca. 35. ib. 43. (b) Chapman v. Blisset, Cas. t. (c) See Duke of Norfolk's case, 3 Ch. Ca. 32. CH. VI. S. 1.] LAWFUL TRUSTS. 105 to be benefitted (a). So on the erection of a chapel, the benefit of the endowment cannot, without an act of parliament, be transmitted at law to the successive preachers and their con- gregations, but the ordinary mode of accomplishing the object is by vesting the legal estate of the property in trustees (with a power of renewing their number on vacancies by death, &c.), upon trust to permit the preacher and congregation for the time being to have the use and enjoyment of the chapel. The limitation of an estate to the poor of a parish would, at Trust for the law, be void (6), because the rules of pleading require the claimants to briug themselves under the gift, and no indefinite multitude, without public allowance, can take by a general name ; but by way of trust they are capable of purchasing, for they assert no title in themselves, but call upon the trustees to observe the dictates of good conscience (c). What persons are designated by the description of " poor of a parish " was at one time matter of considerable doubt. Lord Eldon thought, that the fund should be administered without reference to parochial relief; for assistance might be given to, a pauper without exonerating the rich from their usual contribution to the rates — to the relief, which the law had provided, further rehef might be added, which the parish was not bound to afford ( ' • (6) ParkesY. White, 11 Yes. 222; (e) Jones v. Salter, 2 E. & M. 208 ; Woodmeston v. Walker, 2 K. & M. 197 ; Brown v. Pocock; ib. 210 ; ;S. C. 2 M. & K. 189 ; and see Massey v. Parker, 2 M. & K- 174. CH. TI. S. 1.] lEUST FOE SEPARATE USE, 125 difficulties upon principle in the way of Holding the trust for the separate use to arise upon the marriage. Thus, it cannot he said there is any necessity for such a doctrine with the view of protecting the feme in the due enjoyment of her property ; for, having an absolute power of disposition over the interest hefore her marriage, she may settle it in whatever manner she pleases by express contract ; and, if she marry without such special agreement, the legal presumption ought to be, that she intended the marriage itself to operate as a gift of it to the husband. It may be thought hard perhaps that a father should not be allowed to tie up the property of his daughter against the effects of a future coverture (a) ; but is it not equally hard that he should not be allowed to fetter the owner- ship of a weak and extravagant son ? In fact, the law must proceed upon general principles; and the rule is, that every person, whether male or female, who is sui juris, has a legal capacity, and therefore cannot be restrained in the exercise of the rights of property, even at the will of a parent. Besides^ if the father were allowed to tie up the property of his daughter, his will should be imperative ; whereas it is now on all hands agreed, that the feme, while sole, may dispose of the property at pleasure by an express assignment, whether in favour of her intended husband or any other person. But the principal objection is, that the exclusion of the marital rights would be a repugnancy to the estate itself; for when the feme is so absolutely the owner of the fund that it may be paid into her own hands by the trustees, or may be assigned by her to a mere volunteer, or may become vested by bankruptcy or insolvency in her assignees, it is surely inconsistent to say- that the marriage shall not be a transfer of it to the husband, a purchaser for valuable consideration. However, Lord Cottenham, in the cases of Tullett v. Artn- Tullett v. Arm- strong, and Scarborough v. Borman {b), anxious to prevent ^ "°^' (a) See Benson v. Benson, 6 Sim. 478, where a Tjequest of chattels real 130. was to the testator's daughter, who (6) 4 M. & C. 377 ; and see New- was then sole and without the inter7 lands v. Paynter, ib. 408 ; Russell vention of any trustee, and on her v. Dickson, 2 Drur. & War. 138 ; marriage the husband was deemed &. Archer v. Rooke, 7 Ir. Eq. Kep. 'trustee for her. , 126 TEUST FOE SEPAEATE USE. [CH. VI. g. 1. the consequences that would have flowed from a different decision, and not finding any other safe ground upon which to base his judgment, asserted an inherent power in the Court of Chancery to modify estates of its own creation, and in virtue of that jurisdiction established the validity of the separate use to its fullest extent. " It is said," he observed, "to have been very generally understood in the profession, that the separate estate would continue to operate during a subsequent coverture, and that conveyancers have acted so extensively upon that supposition, that very many families are interested in the decision of this question. That circumstance ought to have great attention paid to it. For the future it would not probably be found dif&cult to obtain the desired security for the future wife by other means consistent with the well-established rules of property, but the existing arrange- ments must depend upon the decision of this case. I have over and over again considered this subject with a great anxiety to find some principle of property consistent with the existing decisions upon which the preservation of the separate estate during a subsequent coverture could be supported. I have been anxious to find means of preserving it, not only to maintain those existing arrangements which have proceeded on the ground of its validity, but because I think it desirable that the rule should, if possible, be established for the future, believing, as I do, that when a marriage takes place, the wife having property settled to her separate use, aU the parties in general suppose that it will so continue during the coverture. To permit the husband therefore to break through such a settlement, and himself to receive the fund, would, in general, be contrary to the intention of the parties, and unjust towards the wife. This view of the case has led to a suggestion which has often been made in argument, by which the object might be attained without violating any rule of property, viz. by supposing the husband marrying a woman with a property so settled, tacitly to assent to such settlement, or, at least, to be bound by an equity not to dispute it. I was for some time much disposed to adopt this view of the subject, and in all cases in which the husband was cognizant of the fact, there would be much of equitable principle to support the gift or CH, VI. S. 1.] TEUST FOE SEPAEATE USE. 137 settlement against lim ; but putting the title of the wife upon such assent of the husband, assumes that but for such assent it would not exist. It abandons the idea of the old separate estate continuing through the subsequent coverture, and sup- poses a new separate estate to arise from the act of the husband. If the title of the wife were to rest upon that sup- position, I fear that the remedy would be very inadequate, and that questions would constantly arise as to how far the circum- stances of each case would afford evidence of assent, or raise this equity against the husband. After the most anxious con- sideration, I have come to the conclusion that the jurisdiction which this Court has assumed in similar cases justifies it in extending it to the protection of the separate estate, with its qualification and restrictions attached to it, throughout a sub- sequent coverture, and that resting it upon such jurisdiction is the broadest foundation, and that the interests of society require that this should be done(l). When this Com-t first established the separate estate, it violated the laws of property as between husband and wife, but it was thought beneficial, and it prevailed. It being once settled that a wife might enjoy separate estate as a feme sole, the laws of property attached to this new estate, and it was found as part of such law, that the power of alienation belonged to the wife, and was destructive of the security intended for it. Equity again interfered, and by another violation of the laws of property, supported the validity of the prohibition against alienation. In the case now under consideration, if the after-taken hus- band be permitted to interfere with the property given or settled before the marriage to the separate use of the wife, much of the benefit and security of the rules which have been (1) Yet the Lord Chancellor, in a subsequent case, is made to say, " The principle of my decision was, that a person marrying a woman with property so circumstanced is considered as adopting the property in the state in which he finds it, and bound by equity not to disturb it. That is the only principle which I could find upon which to support limitations to the separate use under such circumstances." Newlands v. Paynter, 4 M. & Cr. 417. There appears evidently to have been a struggle in the mind of the Court, between the wish to support the separate use (from a fear of the consequences in a different decision), and the difficulty of finding a principle upon which to maintain it. riage. 128 EESTRAINT ON ANTICIPATION. [CH. VI. S. 1. SO established will be lost. Why then should not equity in this case also interfere, and if it cannot protect the ■wife con- sistently with the ordinary rules of property, extend its own rules with respect to the separate estate, so as to secure to her the enjoyment of that estate which has been so invented for her benefit ? It is, no doubt, doing violence to the rules of property to say, that property, which being given with qualifi- cations and restrictions which are held to be void, belonged absolutely to the woman up to the moment of her marriage, shall not be subject to the ordinary rules of law as to the interest which the husband is to take in it; but it is not a stronger act to prevent the husband from interfering with such property, than it was originally to establish the separate €state, or to maintain the prohibition against alienation." The clause 3. With reference to the third question, viz., whether not tbn'wiir°*"^'^t^' °^^^ *^^ separate use, but also the clause against anticipation, upon the mar- shall operate upon the marriage, it was formerly held by Sir L. Shadwell, V. C. E., that while the separate use was good (a), the clause against anticipation was nugatory (b). Lord Langdale, M. R., with more consistency, supported both the separate use and also the clause against anticipation (c). The case of Tullettv, Armstrong (d) has now decided the validity of the clause against anticipation as well as of the separate use. " If," said the Court, "the case be of a separate estate, without power of antici- pation, it must exist with that qualification or fetter, if it exist at all, and there is no principle upon which it can be held that the separate estate operates during a coverture subse- quent to the gift, but that the provision against anticipation with which the gift was qualified does not. It is obvious that such a rule would in practice defeat the intention of the donor, and, in many cases, render the provision which he had made for the protection of the object of his bounty the means and instrument of depriving her of it. When once it was established that the separate estate of a married woman was to be so far enjoyed by her as a feme sole, as to bring with it all (a) Davis v. Thornycroft, 6 Sim. (e) Tullett v. Armstrong, 1 420, Beav. 1. (i) Brown v. PococTc, 5 Sim. 663 ; (rf) 4 M & C. 390. Johnson v. Freeth, 6 Sim. 423. CH. VI, S. ] .] RESTRAINT ON ANTICIPATION. 129 ihe incidents of property, and tliat she might therefore dispose of it as a feme sole might do, it was found that to secure to her the desired protection against the marital rights, it was necessary to qualify and fetter the gift of the separate estate by prohibiting anticipation. The power to do this was esta- blished by authority not now to be questioned, but which could only have been founded upon the power of this Court to jnodel and qualify an interest in property, which it had itself created, without regard to those rules which the law has established for regulating the enjoyment of property in other cases. If any rule, therefore, were now to be adopted by which the separate estate should, in any case, be divested of the protection of the clause against anticipation, it would, in such cases, defeat the object of the power so assumed. A feme covert with separate estate not protected by a clause against anticipation, is, in most cases, in a less secure situ- ation than if the property had been held for her simply upon trust. In the latter case this Court, with the assistance of her trustees, can effectually protect her; in the other, her sole dependence must be upon her husband not exercising that influence or control, which, if exercised, would, in all proba- bility, procure the destruction of her separate estate. In the case of a gift of separate estate, with a clause against antici- pation, the author of the gift supposes that he has effectually protected the wife against such influence or control. Upon what principle can it be that this Court should subject her to it, and by so doing defeat his purpose, and completely alter the character and security of his gift ? The separate estate, and the prohibition of anticipation, are equally creatures of equity, and equally inconsistent with the ordinary rules of property. The one is only a restriction and qualification of the other. The two must stand or fall together." It was held in a case (a) before the late Vice- Chancellor of Brown*. Bam- ford. England, that if a fund be vested m trustees upon trust to pay the proceeds to such persons and for such purposes as a feme covert shall, when and as they become due, appoint, but so as not to charge or anticipate the same, and in default of (a) Brown v. Bamford, 11 Sim. 127. 130 EESTEAINT ON ANTICIPATION. [CH. VI. S. 1. appointment to pay tlie same into the hands of the feme, for her separate use (without the addition of any words to restrain her 'power of anticipation), if the feme covert assign the Ufa I estate limited to her in default of appointment, it destroys the •power, and the restriction upon the anticipation annexed to it is nugatory. Such a doctrine would have led to great incon- Tenience, as the precedents of the most approved conveyancers were known to have been frequently expressed in that form, and the decision after failing to secure the assent of other judges (a) was ultimately reversed on appeal (&). The sub- stantial intention was taken to be, that the payment into her hands, as well as the power to appoint, was not to operate until the annual proceeds had become actually due. Medley v. In another case the trust was to pay to such person or persons Horton. i /. . . . as the feme should appoint, and m default into her own proper hands, the receipts of the feme or her appointee to be sufficient discharges, and that the trustees should be at liberty to require from the /eme a separate receipt for each quarterly payment, "it being the testator's intention that the annual interest and pro- ceeds should not be sold, charged, or otherwise disposed of;" and the Vice-Chancellor of England held that the testator having previously given a general power of disposition, the concluding words were inconsistent with such a gift, and therefore nuga- tory (c). This, however, was before his Honor's decision in Brown v. Bamford had been overruled by the Lord Chancellor, and the decision it is conceived could not be supported. Effect of separate If a fund be settled to the separate use of a feme, which is use on second marriage. meant to be confined to that particular marriage, and the hus- band afterwards die, and the widow marry again, the second husband shall not be excluded from his ordinary marital rights ((i). The question simply is. What was the intention of the settlement ? for Tullett v. Armstrong has now decided, that if the exclusion of any future husband was also in con- (a) Moore v. Moore, 1 Collyer, (c) Medley v. Horton, 14 Sim. 54 ; Harrop v. Howard, 3 Hare, 222. 624 ; Harnett v. Macdougall, 8 (d) Barton v. Briscoe, Jac. 603 ; Beav. 187. Benson v. Benson, 6 Sim. 126; [h] 1 Phill. 620. Knight v. Knight, ib. 121 ; Jones V. Salter, 2 R. & M. 208. CH. TI. S. 2.] UNLAWFUL TEUSTS. 131 templation, it shall be carried into effect {a), and if the separate use extend to any marriage, present or future, even the arrears due to the feme at the time of the subsequent marriage are protected from the after-taken husband (&). SECTION II. OF XTNLAWPTIL TETJSTS. The Court will not permit the system of trusts to be Trusts against directed to any object that contravenes the policy of the law (c). Thus, if the trust of a chattel be limited to A. and his heirs, it wiU nevertheless be personal estate, and vest in the executors (rf), for to hold the contrary would shake the first principles of law and confound the great landmarks of pro- perty. So the trust of a chattel cannot be entailed, as, if it be limited to A. and the heirs of his body, with remainder to B., the absolute interest vests in A., and the remainder to B. is a nullity (e). But trusts of terms attendant upon the in- heritance were always excepted from the rule ; for these, partly to protect the estate from secret incumbrances, and partly to keep the property in the right channel (/), were made to follow, as shadows, the devolution of the freehold (gi). Again, a person cannot settle property upon trust for illegitimate illegitimate children to be thereafter horn, but the declaration of trust is void, and the beneficial interest results to the settlor (h). So a trust of real estate cannot be declared in favour of a Trusts for Cor- porations. corporation without a licence from the Crown (i). (o) AsMon V. M'Bougall, 5 Beav. Lord Gruildford ; Hunt v. Saker, 2 56; iJe Go/ee, 7 Haie, 101; 1 Mao. Freem. 62; Attorney- General v. & Gor. 641. Sands, Nels. 133. (5) Ashfon V. M'Bougall, 5 Beav. (e) Duke of Norfolk's case, 3 Ch. 56 ; and see Newlands v. Paynter, Ca. 9, 11 ; Sunt v. Baker, 2 Freem. 4 M. & Cr. 418 ; England v. Downs, 62. 6 Beav. 269. (/) See Willoughly v. Willoughhy, (c) See Attorney - General v. 1 T. R. 765. Pearson, 3 Mer. 399 ; Hamilton v. [g) For the law upon tHs subject, Mainwaring, 2 Bligh, 209 ; Earl see Vend. & Purch. Ch. 15. of Kingston v. Lady Piereppint, 1 (A) Wilkinson v. Wilkinson, 1 T. Vern. 5. & C. Ch. Ca. 657. ((f) Buhe of Norfolk's case, 3 Ch. ( t) See Sheph. Touch. 509 ; Sand. Ca. 9, 11 -,8.0.1 Vern. 164, per on Uses, 339, note E. 15 Ric. 2. c. 5. . K 2 132 UNLAWFUL TEUSTS. [CH. TI. S. 2, Perpetuities. Trust for alien. And a trust of real estate declared in favour of an alien will vest in the Crown without the form of a previous inquisition (a). Trust for charity. go, neither lands nor property savouring of the realty can be conveyed upon trust for a charity, unless the requirements of the 9 G. 2. c. 36, as respects execution and inrolment (J), and ahsence of any reservation for the henefit of the grantor (c), be complied with. And where lands were conveyed to trustees for a charity by a deed duly inroUed, and without any reser- vation upon the face of it to the grantor, but upon a secret trust that the deed should not operate until after the settlor's death, the deed was, upon biU filed, declared void, and decreed to be set aside (d). A perpetuity will no more be tolerated when it is covered with a trust, than when it displays itself undisguised ia a settlement of the legal estate (e). " A perpetuity," said Lord Guildford, " is a thing odious in law, and destructive to the commonwealth. It would put a stop to commerce, and pre- vent the circulation of the riches of the kingdom, and therefore is not to be countenanced in equity. If in equity you could come nearer to a perpetuity, than the rules of common law would admit, all men, being desirous to contiaue their estates in their families, would settle their estates by way of trust, which might indeed make well for the jurisdiction of the Court, but would be destructive to the commonwealth " (/). So trusts cannot be created with a proviso, that the interest of the cestui que trust shall not be aliened (g), or shall not be made subject to the claims of creditors (h). If it can only be ascertained that the cestui que trust was intended to take a vested interest, the mode in which, or the time when, the cestui que trust was to reap the benefit, is perfectly immaterial — the Kestriction of alienation. (a) See Dumoncel v. Dwmoncel, 13 Ir. Bq. Rep. 92; Vin. Ab. AKen, A, 8 ; Godfrey v. Dixon, Godb. 275 ; Br. Feff. al. Uses, 389 ; King V. Holland, Al. 16, Styl. 21 ; Bur- ney v. Maodonald, 15 Sim. 6. (J) Doe V. Hawthorn, 2 B. & Aid. 96 ; Boe v. Munro, 12 M. & W. 845. (c) Limhrey v. Ourr, 6 Mad.; Attorney- General v. Munby, 1 Mer. 327. {d) Way V. East, 2 Drewry, 44. (c) See Duhe of Norfolk's ease, 3 Ch. Ca. 20, 28, 35, 48. {/) A 0. 1 Vern. 164. {(/) Snowdon v. Dales, 6 Sim. 624; Green v. Spicer, 1 R. & M. 395 ; Graves v. Dolphin, 1 Sim. 66 ; Brandon v. Mobinson, 18 Ves. 429. (7j) Graves v. Dolphin, Snowdon v. Dales, Brandon v. Bobinson, itti supra ; Bird v. Johnson, 18 Jul. 976. CH. Vr. S. 2.] UNLAWFUL TRUSTS. 133 entire interest may either be disposed of by the act of the cestui que trust, or may become vested in his assignees by operation of law on his bankruptcy or insolvency. Thus, if the trust be to pay the interest of a fund to a person for life " at such times and in such manner as the trustees shall think proper " (a), or " from time to time as and when it shall become due and payable " Q>), or " in such smaller or larger portions, at such times immediate or remote, and in such way and manner as the trustees shall think best" (c), the discretion of the trustees is determined by the bankruptcy or insolvency of the cestui que trust, and the entirety of the life estate becomes vested in the assignees. Even where the trustees were directed to pay the interest of a sum " to A. for life or during such part thereof as the trustees should think proper, and at their will and pleasure, but not otherwise, and so that A. should not have any right, title, claim, or demand other than the trustees should think proper; " and after A.'s decease, to pay the interest to his widow for her life, and after her decease to assign the prin- cipal and " all savings or accumulations of interest, if any," to the children, the Court thought, that, taking the whole instru- ment together, the trustees had no power to withhold and accumulate any portion of the interest during the life of A., and therefore, on his bankruptcy, the assignees became abso- lutely entitled {d). However, where a fund was given to trustees upon trust Trusts for main- to apply the whole or such part of the interest as they ^°*'"^^' "• should think fit during the life of A., for his support and maintenance, and for no other purpose, it was held by the Vice-Chancellor of England that nothing passed to the assignees (e). And where a residuary estate was given to the testator's son for life, but if he did any act whereby the interest vested in him would become forfeited to others, the trustees were to apply the annual produce " for the maintenance and support of the son, any wife and child or children he might have, as the trustees should in their discretion think fit," and the son became bankrupt, having a wife and children, ( x-x- under the settlor, by other authority (6), and may be illustrated by the two following cases, both arising out of the same transaction, the one before Lord Redesdale, and the other before Lord Manners : — John Brown, a trader in partnership with his brothers William and Thomas, resolved on commencing business as a banker ; and, for the purpose of avoiding the penalties of the statute against a banker's trading, he assigned all his interest in the mercantile concern to his brother William in trust for himself; and William executed a declaration of trust accord- ingly. Shortly afterwards, William also, intending to enter into a banking-house, prevailed on Thomas to become trustee Property settled ■with an unlawfvil purpose may be (a) Muckleston y. Brown, 6 Ves. 68 ; and see Chaplin v. Chaplin, 3 P. W. 233 ; Hamilton v. Ball, 2 Ir. Eq. Eep. 191 ; Groves v. Oroves, 3 Y. & Jer. 163. [h) Matthew v. Ilanhury, 2 Vern. 187 ; Brackenhury v. Brackenhury, 2 J. & W. 391 ; Miles v. JDurnford, 2 Mae. & Gord. 643 ; and see Fhill- potts V. Phillpotts, 10 Com. B. Eep. 85 ; Oroves v. Groves, 3 Y. & Jer. 163. See a classification of the cases in reference to cohabitation bonds, 3 Mao. & Gor. note (c), page 100. en. VI. S. 2.] UNLAWFUL TEUSTS. 139 both for himself and John, for their respective shares in the partnership. William Brown died, and Thomas Brown, the trustee, became bankrupt. The legatees of William filed a biU against the assignees and others to have the benefit of the secret trust, and Lord Eedesdale said, " I will not enter into the question, whether William might not have compelled Thomas to account with him as trustee, if he had brought a bill in his lifetime ; btit, as between the creditors and legatees of WiUiam (on the one side) and Thomas (on the other), there is no doubt, in point of conscience, Thomas was bound to con- sider this a trust for them ; and accordingly he dofis, after the death of William, acknowledge himself to be a trustee. I remember a case, where a person, who was executor to a smuggler, on being called on to account for the estate of the testator, endeavoured to avoid a considerable part of the amount, by saying that they were smuggling transactions, on which the Courts would not allow any action to be maintained. The answer was. All that died with the smuggler ; he could not have himself sued, but his executor shall not set up that as a defence against his creditors and legatees " (a). . Afterwards, John Brown himself filed a bill in Chancery to have the benefit of the trust ; but Lord Manners said, " The bill in this case is brought by John Brown himself, and I am quite clear that he cannot recover ; and, as he has endeavoured to make this Court ancillary to his plan for evading the pro- visions of a positive law, I must dismiss the bill with costs " <6). Where, however, the trust, though unlawful, and therefore or by settlor inoperative, is not tainted with fraud, the Court may grant tCe'kloposi- relief even to the settlor. Thus, A. settled personal property ti^e fi-aud. upon B. and C, and such other illegitimate children of D. as should be thereafter born, if they respectively attained the age of 25. B. and C. died under 25, but other children were born, and then A. filed a bill for the retransfer of the fund, and there being no fraud on the part of the settlor it was so' directed (c). [a] Joy V. Campbell, 1 Soli. & (c) Wilhinson v. Wilkinson, 1 Y. Lef. 328, see 335, 339. & C. Ch. Ca. 657. ' (6) Ottley V. Browne, 1 B. & B. 360. CHAPTER VII. IN WHAT LANGUAGE A TRtJST MAT BE DECLARED. A PERSON may declare a trust either directly or indirectly : the former, by creating a trust eo nomine in the form and terms of a trust ; the latter, without affecting to create a trust in words, by evincing an intention, which the Court will effectuate through the medium of an implied trust (1). SECTION I. OP BIEECT OK EXPEESS BECIAEATIOlfS OF TETJST. General rule. ^^ creating a trust, a person need only make his meaning clear as to the interest he intends to give, without regarding the technical terms of the common law in the limitation of legal estates: an equitable fee may be created without the Distinction he- (^) '^^® terms Implied Trusts, Trusts hg Operation of Law, and Con- tween Implied structive Trusts, appear from tlie books to be almost synonymous expressions ; trusts, Trusts by ^ut for the purposes of tbe present work the following distinctions, as and^Constructive ''"''s^'isred the most accurate, will-be observed :— 1. An implied trust is one trusts. declared by a party not directly, but only by implication ; as where a testator devises an estate to A. and his heirs, not doubting that he wUl' ^hereout pay an annuity of 201. per annum to B. for his life, in which case A. is a trustee for B. to the extent of the annuity. 2. Trusts hy operation of law are such as are not declared by a party at all, either directly or indirectly, but result from the effect of a rule of equity ; as where an estate is devised to A. and his heirs, upon trust to sell and pay the testator's debts, in which case the surplus of the beneficial interest results to the testator's heir. 3. Constructive trusts (which form one branch of trusts by operation of law, while resulting trusts constitute the other) are such trusts as the Court elicits by a construction put upon certain acts of parties, as where a tenant for life of leaseholds renews the lease on his own account, in which case the law gives the benefit of the renewed lease to those who; were interested in the old lease. CH. VII. S. 1.] EXPRESS TRUSTS. 141 word " heirs," and an equitable entail without the words " heirs of the body " (a) ; provided words which though not technical are yet popularly equivalent be used, or the intention otherwise sufficiently appear upon the face of the instrument. And if an estate be devised unto and to the use of A. and Equitatie fee . may be liniited his heirs, upon trust for B., without any words of limitation, without the B. takes the equitable fee; for the whole estate passed to the pUed^oit^"^^' trustees, and whatever interest they took was given in trust for B. (6) But if an estate be conveyed by deed unto and to the use of a trustee, and his heirs, in trust for the settlor for life, and after her death upon trust for her children, simply without the words heirs, the children by analogy to legal limitations take an estate for life only (c). But though technical terms be not absolutely necessary, yet Force of technical no rule is better established than that where technical terms are employed, they shall be taken in their legal and technical sense (cZ). Lord Hardwicke indeed said that, in limitations of a trust Lord Hard- either of real or personal estate to be determined in that court, ^'° ^ opinion. the construction ought to be the same as in limitations of the legal estate, with this distinction, unless the intention of the testator or author of the trust plainly appeared to the contrary (e). But this position has since been repeatedly and expressly over- since overruled. ruled. " I am of opinion," said Lord Henley, " that a limita- tion in a trust, perfected and declared by a testator, must have the same construction as the devise of a legal estate executed ; and to hold the contrary would make property very precarious and uncertain ; the testator would mean one thing in this court, and the direct contrary on the other side of the hall " (/). And on another occasion he observed, " I am very clear that this (a) See Shep. Touch, by Preston, Taylor, 1 Ed. 367, per eundem ; 106. Sijnge v. Hahs, 2 B. & B. 507, per . (S) Moore v. Cleghorn, 10 Beav. Lord Manners ; Jervoise v. Buke of 423; affirmed on appeal, 12 Jurist. Northumberland, 1 J. & W. 571, 591; £ra!>/t i ./ ^ chattels on same (a) Howel v. Howel, 2 Ves. 359 ; (e) Hart v. MiMlehurst, 3 Atk. and see Powell v. Price, 2 P. W. 371 ; and see Maguire v. Scully, 2 535; ChambersY.Chambers, Fitzgib. Hog. 113 ; S. C. 1 Beat. 370. Eep. 127 ; S. C.2 Eq. Ca. Ab. 35 ; (/) See Marryat v. Townly, 1 Bochford v. Fitzmaurice, 1 Conn. & Ves. 105. Laws. 174. [g) Hodgeson v. JBussey, 2 Atk. (5) WestY.i:rrissey,2'P.W.3i9. 89; S. C. Barn. 195. See Bartlett (c) Powel V. Price, 2 P. W. 535 ; v. Green, 13 Sim. 218. and see Mr. Feame's observations. (A) Theehridge v. Kilburne, 2 Conting. Rem. 103. Ves. 233. {d) Burton v. Hastings, Gilb. Eq. (i) Bead v. Snell, 2 Atk. 642. Rep. 113 ; S. C.\ Eq. Ca. Ab. 393, per Lord Cowper. 150 EXECUTOKY TRUSTS [CH. Vn. S- I.' trusts as real estate. Limitation over on dying under 21, or under 21 ■without issue. and chattels upon the same trusts, and for the same intents and purposes, as the freeholds are settled, the Court will not apply the limitations to the personal estate literally, the effect of which would be to vest the absolute interest in remainder in the first son on his birth, but will insert a proviso that will have the effect, at least to a certain extent, of making the personal estate follow the course of the real. Sir Joseph Jekyll said, the practice of conveyancers was to insert a limitation over on "dying under 21" (a); but Lord Hardwicke conceived the common limitation over to be on "dying under 21 without issue " (&). In The Duke of Newcastle V. The Countess of Lincoln (c), the chattels were articled to be settled to the same uses as the realty, viz. to A. for hfe, remainder to the first and other sons in tail male, remainder to B. for life, remainder to B.'s first and other, sons in tail male, remainders over. A. died, having had a son who lived only nine months. Lord Loughborough said, " I perfectly agree that in wills you are not to do for the testator all that can be done by law ; you are to do for the testator no more than what he has intended to be done, and according to the common acceptation of the words. But I put it to you whether in the nature of things there is not a radical and essential difference between marriage-settlements and wills. The parties contract upon a settlement for all the remainders ; they are not voluntary, but within the consideration ; the issue are aU purchasers. Sup- pose then a settlement to be made of freehold estate, and as to the leasehold estate there is only this article, that the settle- ment shall be analogous to that of the freehold : do I execute it, and make a like settlement, by giving an interest which cuts off all the issue ? Suppose a bill was brought to carry the Settlement into effect after a child had lived a single day, should I permit the father to say it was his property ? It is utterly impossible to make the identical settlement of the leasehold estate as of the freehold ; but if I am to make it in analogy to the settlement of the freehold, shall I not carry it on to all the (a) Stanley v. Leigh, 2 P, W. 690. (J) Gower v. Grosvenor, Barn, 63 ; S. C.6 Mad. 348. (e) 3 Ves, 3S7. CH. Vn. S. 1.] IN MARRIAGE ARTICLES. 151 near events, or shall they fail because I cannot embrace all the remote events ? {a) My opinion decidedly is, that, in the case of marriage articles, the settlement should be such that no child born and not attaining 21 should, by his birth, attain a vested interest to transmit to his representatives, and thereby defeat the ulterior objects of the articles, which are not decidedly in favour of one son, but equally extended to every son ; and that I take to be the settled rule and established practice" (h). His Lordship therefore held that the leaseholds had not vested absolutely in the deceased son of A., and ordered a proviso to be inserted in the settlement, that they should not vest absolutely in any son of B. who should not attain 21, or die under that age leaving issue male. From this decision an appeal was carried to the House of Lords (c) ; but, before the cause could be heard, a son of B. having attained 21, the decree was, that the son of B. had become absolutely entitled. Thus the House of Lords decided that the absolute interest had not vested in the first tenant in tail on his birth ; but what proviso ought to have been inserted, whether a hmitation over " on dying under 21," or " on dying under 21 without issue male," the House in event was not called upon to determine. The order of the House of Lords in this case was made with the approbation of Lord EUenborough and Lord Erskine, who took part in the debate : and also of Lord Thurlow (d). But Lord Eldon denied before the House that there was any distinction between articles and wills, and there- fore relying upon Foley v. Burnell, and Vaughan v. Burslem, two cases upon wills decided by Lord Thurlow, he said, had the cause come originally before him, he should have decreed the absolute interest to have vested in the eldest child upon birth ; that, notwithstanding several dicta in favour of a limita- tion over, no case could be found in which articles had been actually so executed; that assignments had been made of leasehold property under the notion that a son when born would take an absolute interest; and, were the House to sanction the decree of Lord Loughborough, it would shake a (a) 3 Ves. 394. (c) 12 Ves. 218. (6) lb. 397. {d) 12 Ves. 237. 152 EXECUTOEY TRUSTS [CH. vn. s. 1. Persoualty can- not be knit to realty entirely. Joint-tenancy in articles con- strued tenancy in common. very large property (a). However, his Lordship conceived that Lord Hardwicke's doctrine was originally the best, and there- fore, recollecting the opinion of that great Judge, the opinion of Sir Joseph Jekyll, and the decision of the Court below, and knowing the concurrent opinions of Lord EUenborough and Lord Erskine, and also the opinion of Lord Thurlow (whose present sentiments, however, he could not reconcile with the cases of Foley v. Burnell, and Vaughan v. Burslem, formerly decided by his Lordship (6),) he bowed to all these authorities, and, though he was in some degree dissatisfied with the de- termination, he nevertheless would not move an amendment (c). It must be observed, that a settlement of the personalty cannot be made exactly analogous to a settlement of the realty, whether the limitation adopted be " on dying under 21," or " on dying under 21 without issue." For if the former be supposed, then, the object of the articles being to knit the leasehold estate to the freehold, if the son die under age leaving issue who will succeed to the freehold, the two estates will go in different directions. But, if the limitation over be " on dying under 21 without issue," then, if the son die leaving issue, the grandchild may die under age and unmarried, when the leaseholds will go to the son's per- sonal representative, while the freeholds will devolve on the second son (d). The case of the Countess of Lincoln v. The Duke of Newcastle appears to be the only authority upon the subject, and that has sanctioned the insertion of the proviso, " on dying under 21 without issue." Again, in marriage articles, as joint-tenancy is an inconvenient mode of settlement on the children of the marriage (for, during their minorities no use can be made of their portions, as the joint-tenancy cannot be severed (e),), the Court will rectify the articles by the presumed intent of the contract, and will permit (a) 12 Ves. 236, 237. (J) Lord Eldon could not recon- cile Lord Thurlow's opinion with these cases, because his lordship refused to admit the distinction between articles and wills. (c) The Countess of Lincoln v. The Duke of Newcastle, 12 Ves. 237. [d) Countess of Lincoln v. Duke of Newcastle, 12 Ves. 228, 229. (e) Taggart v. Taggart, 1 Sch. & Lef. 88, per Lord Redesdale ; and see Eigden v. Vallier, 3 Atk. 734, and Marryat v. Townley, 1 Ves. 103. CH. VII. S. 1.] IN WILLS. 153 words that would be construed a joint-tenancy at law, to create in equity a tenancy in common (a). In other cases the Court has varied the literal construction Words supplied by supplying words, as where the agreement was to lay out 2001. in the purchase of 30Z. a-year, to be settled on the hus- band and wife for their lives, remainder to the heirs of their bodies, remainder to the husband in fee, and, until the settle- ment should be made, the 200Z. was to be applied to the separate use of the wife ; and, if no settlement were executed during their joint lives, the 200Z. was to go to the wife, if living ; but, if she died before her husband, then to her brother and sister; and the wife died before her husband, but left issue ; it was held the brother and sister had no claim to the fund, the words " if she died before her husband " intending plainly if she so died "without leaving issue " (6). Next as to wills ; and here, as no presumption arises a priori, How "leirs of that " heirs of the body " were intended as words of purchase, stnied in exe- if the executory trust of real estate be to " A. and the heirs of i^^^jjj;™'*" his body " (c), or to " A. and the heirs of his body and their heirs " (d), or to A. for life and after his decease to the heirs of his body" (e), the legal and ordinary construction will be adopted, and A. will be made tenant in tail. So, where the . estate was directed to be settled on the testator's " daughter and her children, and, if she died without issue," the re- mainder over, the Court said, that, by an immediate devise of the land in the words of the wiU, the daughter would have been tenant in tail, and in the case of a voluntary devise the Court must take it as they found it, though upon the like words in marriage articles it might have been otherwise (/). And where a testator directed lands to be settled on his '' f- ^°\¥^' ^""^ neirs of uis body, (o) Taggart v. Taggart, 1 Soh. & 151, ^er Lord Hard wioke; Marshall Lef. 84. V. Bousfleld, 2 Mad. 166. (J) Kentish v. Newman, 1 P. W. (d) Marryat v. Townley, 1 Ves. 234 ; and see Targus v. Puget, 2 104, per Lord Hardwioke. Ves. 194 ; Master v. De Croismar, (e) Blackburn v. Stables, 2 V. & 11 Beav. 184; Martin v. Martin, 2 B. 310, per Sir W. Grant; Seale v. K. & M. 507. Seale, 1 P. W. 290 ; Meure v. (c) Harrison v. Naylor, 2 Cox, Jfewre, 2 Atk. 266,^er Sir J. Jekyll. 247 ; Bagshaw v. Spencer, 1 Ves. (/) Sweetapple v. Bindon, 2 Vern. 536. 154 EXECUTOBY TETJSTS [CH. vn. S. 1. and their heirs male succes- sively." "Proper entail on the heir male." Heirs of the body construed to mean sons, even in wills, where any expression of intention to that effect. " nephew for life, remainder to the heirs male of his body, and the heirs male of the body of every such heir male, severally and successively one after another as they should be in seni- ority of age and priority of birth, every elder and the heirs male of his body to be preferred before every younger," Lord Cowper said, the nephew took by a voluntary devise, and, although executory, it was to be taken in the very words of the will as a devise, and was not to be supported or carried further in a Court of Equity than the same words would operate at law in a voluntary conveyance (a). The decision apparently went upon the ground that the words " and the heirs male of the body of every such heir male, severally and successively, &c." were all included in the notion of an entail, and expressio eorum, quce tacite insunt, nihil operatur. And in a more recent case, where the executory trust was for A. generally, with a direction, that the trustees should not give up their trust till " a proper entail was made to the heir male by liim," it was determined that A. took an estate tail (6). But, in another case, where the devise was extremely similar, viz., to A. with a direction that the estate should be entailed on his heir male, Lord Eldon, on the assumption that it was an executory trust, and not a legal devise, considered the entail so doubtful that he would not compel a purchaser to accept a title under it (c). But " heirs of the body " will in the case of executory trusts in wills as well as in articles be read first and other sons, provided the testator expressly manifest such an intention, as if he direct a settlement on A. for life " without impeachment of waste " (d), or with a limitation to preserve contingent remainders (e), or if he desire that " care be taken in the settle- ment that the tenant for life shall not bar the entail " (/) ; and (a) Legatt v. Sewell, 2 Vern. 551. (J) Blaehhurn v. Stables, 2 V. & B. 367 ; reoognised in Marshall v. Bousfield, 2 Mad. 166 ; and see Dodaon v. Hay, 3 B. C. C. 405. (c) Jervoise v. Duke of North- umberland, 1 J. & W. 559 ; and see Woolmore v. Burrows, 1 Sim. 512. , {d) Glenorchy v. Bosville, Cas. t. Talbot, 3. (e) Papillon v. Voice, 2 P. W. 471 ; and see Rochford v. Fltxmau- rice, 1 Conn. & Laws. 138. (/) Leonard v. lord Sussex, 2 Torn. 526. . GH. Vn. S. 1.] IN WILLS. 155 in one case " heirs of the hody " was so construed, where a testator had devised to the separate use of a /erne covert for life, so as she alone should receive the rent, and the husband should not intermeddle therewith, and after her decease in trust for the heirs of her body ; for, from the limitation to the heirs immediately after the wife's decease, coupled with the direction that the husband should not intermeddle with the estate, the Court collected the intention of excluding the husband's cur- tesy, an object which could only be accomplished by giving to " heirs of the body " the construction of words of purchase (a). And a direction to settle on A. and the heirs of his body " as " A.^ and the counsel shall advise " (b), or " as the executors shall think a?oomserBhalf' fit " (c), is strong collateral evidence, that something more was ^^^^e, &c." intended than a simple estate tail. And Sir L. Shad well thought that if a testator directed an Rule in Shelley's estate to be settled on a feme covert for life, for her separate ^bie"where'tiie use, and at her death on her issue, the feme would not be ^^ ^^^'^ '^ *" the separate use. tenant in tail, for the separate use requiring the life estate to be vested in trustees, the equitable estate in the feme could not unite with the legal estate in the issue, and therefore the rule in Shelley's case would not apply (ci). And where the trust Trevor «. Trevor, was to settle on A. for life, without impeachment of waste, with remainder to his issue in strict settlement, the Court directed the estates to be settled on A. for life, without im- peachment of waste, with remainder to his sons successively in tan male, with remainder to the daughters, as tenants in common in tail male, with cross remainders in tail male, and the proper limitations to trustees were inserted to preserve contiugent remainders (e). "We may here remark that " heirs of the body " and " issue " "Heirs of the are far from being synonymous expressions. The former are "issue"°not of properly words of limitation, whereas the latter term is in its ^^^ ^''™^ ^""P"^- (a) Roherts v. Dixwell, 1 Atk. 268 ; Harl of Verulam v. Bathurst, 607 ; 8. C. West'a Rep. *. Lord 13 Sim. 386. Hardwioke, 536. (e) Trevor v. Trevor, 13 Sim. (J) White V. Carter, 2 Ed. 366 ; 108 ; affirmed on tMs point, 1 H. of reheard, Amb. 670. ■ L. Ca. 239; and see Coape v. Arnold, (c) Bead v. Snell, 2 Atk. 642. 2 Sm. & Gif. 311 ; 4 De Gex, Mac. & [d) See Stonor v. Curwen, 5 Sim. Gord. 574. 156 EXECUTORX TRUSTS [cH. vn. S. 1. Daughters in- cluded in "heirs of the body " and "issue." Limitation to preserve con- tingent remain- ders. First freehold in trustees. primary sense a word of purchase. In several cases the Court appears to have ordered a strict settlement from the use of the term "issue," where, had the expression been "heirs of the body," the estate would probably have been construed an estate tail (a). Of course, daughters as well as sons will be included under " heirs of the body " (6), or " issue " (c) ; for they equally answer the description, and are equally objects of bounty; and the settlement wUl be made upon them in default of sons, as tenants in common in tail, with cross remainders between (or amongst) them (d). In executing a strict settlement the Court, before the 8 & 9 Vict. c. 106, always took care that proper limitations to trustees should be inserted after the life estates for the preservation of contingent remainders (e) ; and, although by the effect of the Act last referred to, contingent remainders are no longer destructible by the forfeiture, merger, or surrender of the pre- vious life estate, the limitations to trustees to preserve ought still, it is conceived, to be interposed, as well with the view of affording a convenient means of protecting the interests of contingent remaindermen in the event of wilful waste or destruction being committed by the tenant for life before any remainderman comes in esse (/), as with the view of preserving the protectorship, under the Fines and Eecoveries Act, in the event of the destruction of the previous life estate. In a case occurring before the Fines and Eecoveries Act (3 & 4 W. 4. c. 74), where the testator had shown an anxious (a) Ashton v. AsMon, cited in Bagshaw v. Spencer, 1 Coll. Jur. 402 ; Meure v. Meure, 2 Atk. 265 and see Some v. Barton, Coop. 25 Dodson V. Hay, 3 B. C. C. 405 Stonor V. Curwen, 5 Sim. 264 Crazier v. Crazier, 2 Conn. & Laws. 311 ; and see Rochfard v. Fitz- maurice, 1 Conn. & Laws. 158 ; Bastard v. Prohy, 2 Cox, 6. (6) Bastard v. Prahy, 2 Cox, 6. (c) Meure v. Meure, 2 Atk. 265 ; Ashton V. Ashton, cited in Bagshaw v. Spencer, 1 Coll. Jur. 402 ; Trevor V. Trevor, 13 Sim. 108. {d) Meure v. Meure, Ashton v. Ashton, Bastard v. Prahy, and Trevor v. Trevor, uhi supra ; Mar- ryat v. Tawnley, 1 Ves. sen. 105. (e) Harrison v. Naylor, 2 Cox, 247 ; S.C. Z B. C. C. 108 ; Wool- more V. Burrows, 1 Sim. 512 ; Basherville v. Basherville, 2 Atk. 279; Trevor v. Trevor, 13 Sim. 108 ; Stamford v. Hobart, 3 B. P. C. 31 ; and see Hopkins v. Hopkins, 1 Atk. 593. (/) Garth v. Cotton, 1 Ves. 554. CH. VII. S. 1.] IN WILLS. 157 wish that the power of defeating the entail should be as much restricted as possible, the Court, instead of giving the first freehold to the tenant for life, which would have enabled him to make a tenant to the praecipe, ordered the freehold during his life to be vested in trustees in trust for him (a). However in a case occurring after the Fines and Recoveries Bankes ». Le Act where an estate was vested in a trustee upon trust to execute ^^p™"^"^- a strict settlement on Lady Le Despencer and her family, and the Master, to whom a reference was directed, approved of a settlement on Lady Le Despencer for life, &c., but refused to appoint a protector under the 32nd section of the Act, the Court held that, though in certain cases it might be advisable to appoint a protector, there should be special circumstances to warrant it. That the trustee was the " settlor " within the meaning of the 32nd section, and had the power to appoint a protector ; and as he did not desire it, the Court, unless there were good reasons to the contrary, would not control his dis- cretion : that a protector under the Act was an irresponsible person, and was at liberty to act from caprice, ill-will, or any bad motive, and might even take a bribe for consenting to bar the entail, without being amenable to the Court, and therefore, on the whole, it was better not to clog the settlement with a protector (b). "Where gavelkind lands are the subject of the executory Gavelkind lands- trust, the circumstance of the custom will not prevent the settlement upon the first and other sons successively, for the heirs take not by custom, but under the construction of a Court of Equity, which must be guided by the rules of the Common Law (c). In the foregoing cases the Court has rectified the will on Where the tes- the ground of the limitations having been imperfectly declared ; settlement, but but if a testator direct a settlement, and be his own convey- theTmftationT^ ancer, that is, declare the limitations himself, intending them to be final, the hands of the Court are bound, and the words must be taken in their natural sense (d). Thus a testator (a) Woolmore v. Burrows, 1 Sim. (c) Moherts v. Dixwell, 1 Atk. 512, see 527. 607. (6) Banhes v. Ze Despencer, 11 {d) Franks v. Price, 3 Beav. Sim. 508. 182 ; and see Rochford v. Fitz- 158 EXECUTORY TBDSTS [CH. VH. S. 1. devised to A. for life without impeachment of waste, re- mainder to trustees to preserve contingent remainders, remaiti- der to the heirs of the body of A., remainders over, and then directed the residue of his personal estate to be laid out in a purchase of lands, and declared that the lands when pur- chased " should remain and continue to, for, and upon such and the like estate or estates, uses, trusts, intents, and pur- poses, and under and subject to the like charges, restrictions, and limitations, as were by him before limited, and declared of and concerning his lands and premises thereinbefore devised, or as near thereto as might be, and the deaths of parties would admit." Lord Northington observed, " It is said, that if the limitations had been repeated, it would have been the same with Pajpillon v. Voice (2 P. W. 471) ; but I think not; because the testator refers no settlement to his trustees to complete, but declares his own uses and trusts, which being declared, I know no instance where the Court has proceeded so far as to alter or change them" (a). However, the decision to which his Lordship came seems not to have met with the entire approbation of Lord Eldon (6). Executory trusts In the cases relating to executory trusts of chattels in wills. wills, the bequest, instead of being direct, has generally been by way of reference to a previous strict settlement of realty. The law upon this subject was for a long time in a very fluctuating state, as will appear from a review of the cases. Gower V. In Gower v. Grosvenor (c), a testator devised his real estate to Sir Thomas Grosvenor for life, with remainder to his first and other sons in tail, and in default of issue to Robert Grosvenor for life, with remainder to his first and other sons in taU, and the testator then proceeded, " My wiU and mind is, that my library of books, &c., shall go as heir-looms, as far as they can by law, to the heirs male of my family successively, as my real estate is hereby settled." Sir Thomas died without issue, and the bill was filed by a legatee maurice, 1 Conn. & Laws. 173 ; 2 Ves. 76 ; Jervoise v. Buke ofNorth- Drur. & "War. 21. umherland, 1 J. & "W. 572. (o) Austen v. Taylor, 1 Ed. 361. (c) 5 Madd. 337 ; Barnardiston, (J) See Green v. Stephens, 17 54. CH. Vn. S. 1.] OF CHATTELS. IN WILLR. 159 of Sir Thomas against Eobert Grosvenor, who was the exe- cutor of Sir Thomas, and the tenant ia possession of the real estate, to have the books, &c., applied as part of Sir Thomas's personal estate. It was argued for the plaintiff that the chattels had vested absolutely in Sir Thomas, inasmuch as he had a son who, as tenant in tail of the real estate, might have claimed the chattels absolutely, and that the limitations after the entail, intended for the second son, were void for remoteness; but Lord Hardwicke held the meaning of the limitations as regards the chattels on the death of Sir Thomas to be in the alternative, that is, if Sir Thomas should have a son, then such son was to take, but if he should have no son, then to go to Robert for life, with remainder to his first and other sons, so that the limitation to Robert and his son was not in remainder after an entail, but a contingency to be determined on the death of Sir Thomas ; that as the heir-looms were to go as far as they could by law, the testator intended a settlement to be made by the Court, and the trust being executory, the proper Hmitations would be to Sir Thomas for Ufe, with remainder to his first son absolutely : but if he died under 21 without issue, then to the second son in like manner; and if he had no such son, then to Robert Grosvenor for life, &c. The Court, therefore, decided that the chattels had not vested absolutely in Sir Thomas, the tenant for life. The point actually determined, viz., that Sir Thomas did not take absolutely, was clearly right; but the doctrine laid down by Lord Hardwicke, that the trust was • executory, and that the chattels would be settled in the manner suggested by him, has been much questioned (a). The direction that chattels shall go along with strictly settled real estate, "as far as the law will allow," may either mean that the chattels shall be held upon the same trusts as the real estate, so far as the diff'erent natures of the two properties wiU permit, in which case the first tenant in tail of the real estate will be entitled to the personal estate absolutely ; or it may intend, that the Court shall make such a settlement of the chattels, and insert in it such limitations as will carry (a) See Countess of Lincoln v. JDicke of Newcastle, 12 Yes. 228. Trafford. 160 EXECUTORY TRUSTS [CH. VII. S. 1. them in the same channel with the real estate, for as long a period as by any device in the law can be effected. In the former construction the testator is said to be his own conveyancer, that is, he has declared the limitations himself, and the legal consequence must follow, though it may dis- appoint the object, by giving the tenant in tail of the real estate the absolute interest in the personal. In the latter construc- tion the trust is executory; that is, the testator has only expressed the general intention, and has committed to the trustees the duty of giving it effect by inserting the proper limitations in making the settlement. Lord Hardwicke enter- tained the first view, but the latter has been adopted in more recent decisions. Trafford v. In Trafford v. Trafford (a), a testator devised lands in trust for Sigismund for life, remainder to his first and other sons in tail male, remainder to Clement for life, remainder to his first and other sons in tail male, with remainders over, and then bequeathed as follows : " I devise all my plate, &c., to such male person (when he shall attain the age of 21 years) who shall then be entitled to the trust in possession of the real estate; and I direct that till such male person shall attain 21, the said plate, &c., shall be kept on D., and be used by such male person residing there : and I declare it to be my express wish and desire that the said plate, &c., may, in the nature of heir-looms, go with the said estate, and be used therewith, as long as the law of the realm will permit." ■ Sigismund died without issue. Clement died, and the bill was filed by his eldest son, then an infant, to have the heir-looms delivered to him, which the executrix of Sigismund resisted, on the ground that Sigismund, who was under 21 at the date of the will, had afterwards, on attaining that age, become absolutely entitled. Lord Hardwicke declared that the plain- tiff, on attaining 21, would take the property of the heir- looms, and in the mean time was entitled to the use. The first observation that occurs is, that as the limitation of the heir-looms was not to such son of the tenants for life, but to such male person as should attain 21, a century might (ffl) 3 Atk. 347. PH. VII. S. 1.] OF CHATTELS IN WILLS. 161 Occur, through successive infancies, before the heir-looms would be vested. The legality of the direction might there- fore have been questioned in limine {a). However, to pass by this point, which was overlooked by the Court, the case is remarkable, as the only instance in which, under a will, the Court has inserted a limitation over on the death of the tenant in tail under 21. Possibly Lord Hardwicke might have executed the trust in this manner, in pursuance of the general principles laid down by him in Gower v. Grosvenor ; but Lord Eldon has justly observed (&) that in Trafford v. Trafford, the testator himself had expressly said that the property should not vest until that age. The case, therefore, has been regarded by subsequent judges as resting upon its own special circumstances, and not as an authority for the iusertion of such a limitation in ordinary cases. In Foley v. Burnell (c), a testator bequeathed all the stan- Foley v. Burneii. dards, fixtures, &c., " to be held and enjoyed by the several persons who, from time to time, should respectively and suc- cessively be entitled to the use and possession of the houses before devised by him in strict settlement, as and in the nature of heir-looms, to be annexed to and go along with such houses respectively," and then added, " it is my will and intention, that one of the services of plate should go to and be enjoyed by the possessor of W., and the other by the possessor of S. for the time being." Edward Foley was first tenant for life of the real estate, and the heir-looms were taken by the sheriff under an execution against E. Foley, and the bill was filed by the first remainderman in tail to have the heir-looms restored. Lord Thurlow, in looking over the evidence, discovered that a son had been born to E. Foley, which son had died a few days after birth, and so dismissed the bill, on the ground that the absolute interest had vested in E. Foley, as adminis- trator of his deceased child. From this decision the plain- tiffs appealed to the Lords Commissioners, and the ques- tion was, whether the absolute interest had vested in the (o) See Lord Southampton v. JMeisora v. /6iei!sore, 5 Myl. &Cr. 26. Marquis of Hertford, 2 Ves. & Be. (h) See Countess of Lincoln v. 54; The Countess of Lincoln v. J)M/ce ofiVejocasiSfe, 12 Ves. 231. Buhe of Newcastle, 12 Ves. 231 ; (c) 1 B. C. C. 274. 162 EXECUTORY TRUSTS. [CH. VH. S. 1. child absolutely, or whether the Court ought not, as the trust was executory, to have inserted a limitation over to the remainderman on the death of the child under 21. Lord Loughborough said there was no rule of law against the latter construction, if the intention sufficiently appeared ; but that the Court would not act upon mere conjecture. Lord Commissioner Ashurst was of opinion that the testator had been his own conveyancer, and had declared his own limi- tations. Lord Commissioner Hotham concurred, and the bill was dismissed. An appeal was carried to the House of Lords (a), when the decree of the Lords Commissioners was affirmed. This case, if it stood alone, might have been dis- tinguished from Gower v. Grosvenor, as in the latter the will was merely directory, while in Foley v. Burnell there was a direct bequest of the heir-looms : so that in the former case the trust was executory, while in the latter it was a trust executed. However, this distinction has not been observed in more recent cases. In Vaughan v. Burslem (6), the testator said, " I direct that all my plate, &c., shall go as heir -looms, with my real estate, and be held and enjoyed by the person or persons that shall, for the time being, by virtue of my will, be entitled to my real estate, as far as the rules of law and equity will permit." Lord Thurlow considered the words " as far as the rules of law and equity will permit " to refer only to the known rule that the personal property could not go as far as the real, and that there was no case where the settlement had been carried to the utmost extent of what the law might do. That the words were not sufficient to prevent the vesting of the absolute interest in the first tenant in tail, and the bill which was filed by a remainderman, on the supposition that the heir- looms had not vested absolutely in a prior tenant in tail who had died an infant, was dismissed. Here, if in any case, the trust was executory ; and yet, notwithstanding the words, " that the plate, &c., should go as heir-looms," and " as far as the rules of law and equity would permit," the Court held the property to vest absolutely in the first tenant in tail, though he did not attain 21. {a) 4 Brown's P. C. 328.. (6) 3 B. C. C. 101. CH. Vn. S. 1.] OF CHATTELS IN WILLS. 163 Other decisions to the same effect have since followed (a), and Gower v. Grosvenor, and Tr afford v. Tr afford, may be considered as overruled. The law at the present day appears to be, that where a testator devises lands in strict settlement, and then bequeaths heir-looms to be held by or in trust for the parties entitled under the limitations of the real estate, or without making any bequest, directs or expresses a desire that the heir-looms shall be held upon the like trusts, even though the testator should add the words " as far as the rules of law and equity will permit," the use of the heir-looms will belong to the tenant for life of the real estate for his life only, and the property of the heir-looms will vest absolutely in the first tenant in tail immediately on his birth, though he afterwards die an infant. The Court, in these cases, either regards the trust as executed, and not of a directory cha- racter, or if the trust be executory, the Court considers it has no authority in making a settlement to insert a limi- tation over on the tenant in tail dying under 21. However, there is no unlawfulness in such a limitation, so that if a bequest of heir-looms in a will be clearly executory, and the testator manifests a distinct and unequivocal intention that a settlement shall be made of the heir-looms, and that such clauses shall be inserted as will' render them inalienable for as long a period as the law will permit, the Court would probably execute the intention by settling the heir-looms, and inserting a limitation, by which the absolute interest in the first tenant in tail should, by his death under 21, be carried over, as in the Countess of Lincoln v. Duke of Newcastle, a case of marriage articles, to the person next entitled in remainder {b). Again, in wills, if the words taken in their usual sense would Whether joint- ^ . . ^ . tenancy in execu- create a joint-tenancy, the Court has no authority, as it has in tory trusts in articles, to execute the trust by giving a tenancy in common; ^ruedas tenancy m common. (a) Carr v. Errol, 14 Ves. 478 ; of Lincoln v. Duke of Newcastle, 12 Lord Deerhurst v. Duke of St. Ves. 217. Albans, 5 Madd. 232 ; Stratford v. (6) See the observations of Lord Powell, 1 B. & B. 1 ; Rowland v. Loughborough in Foley v. JSurnell, Morgan, 6 Hare, 463 ; S. C. on ap- 1 B. C. C. 284, and of Lord Thurlow peal, 2 PhiU. 764 ; and see Countess in Vaughan v. Burslem, 3 B. C. C. p. 106. M 2 164 POWEES AUTHORISED [cH, vn. S. 1. but, where the testator has shown a desire of providing for his children (a), or putting himself in loco parentis for his grand- children (6), the Court has adopted the. same construction, as in articles : however, in the cases which have occurred, there has always been some accompanying circumstance to denote a tenancy in common, as the estate really intended. Executory trusts in post-nuptial settlements, whether voluntary or founded on a valuable consideration, will be construed in the same manner as executory trusts in wills (c). We shall conclude this branch of our subject with a few observations upon the powers to be introduced in the execution of settlements, where the trust is executory. If the testator or contracting parties give no directions as to the insertion of powers, the Court cannot, upon the ground of implied intention, order a power to be introduced {d), except possibly a power of leasing, which diifers from all other powers in being an almost necessary adjunct for the preservation of the estate itself (e). If the authority be expressed in general Usual powers." terms, as "to insert all usual powers," the trustees may then introduce powers of leasing for 21 years (/), of sale and ex- change (g), of varying securities by investing in government or real securities (h), and of appointment of new trustees (i) ; and, it seems, where the property is joint, or contains mines, or is fit for building, they may also insert powers of partition, of Post-nuptial settlements. Of powers in executory trusts, Powers not in- serted without a direction. (a) Marryaty. Townly, lYes. 102. (6) Synge v. Sales, 2 B. & B. 499. (c) JRochford v. Fitzmauriee, 1 Conn. & Laws. 158. {d) Wheate v. Hall, 17 Ves. 80, see 85 ; and see Brewster v. Angell, 1 J. & "W. 628. In a recent case, however, where a will had simply directed a settlement without autho- rising any powers expressly, the M. R. held a tacit intention to be implied that powers of leasing, sale and exchange, and appointment of new trustees, and of signing receipts, with provisions for maintenance, education, and advancement, should be inserted, Turner v. Sargent, 17 Beav. 515. (e) See Fearne's P. "W. 310; IFboZ- more v. Burrows, 1 Sim. 518. (/) See Hill V. Hill, 6 Sim. 144; The Duke of Bedford v. The Mar- quis of Alercorn, 1 Myl. & Cr. 312. [g) Hill V. Hill, 6 Sim. 136; Peake v. Penlitigton, 2 V. & B. 311 ; and see Williams v. Carter, Append, to Treat, of Powers, No. 5. (A) Sampayo v. Gould, 12 Sim. 426. («') Lindow v. Fleetwood, 6 Sim. 152 ; Brewster v. Angell, 1 J. & W. 628, per Lord Eldon ; Sampayo \. Gould, 12 Sim. 426. CH. Vn. S. 1.] BY EXECUTORY TRUSTS. 165 leasing mines, and of granting building leases (a). " But there is a palpable distinction," said Sir Launcelot Shadwell, " between powers for the management and better enjoyment of the settled estate, as powers of leasing, of sale and exchange, &c., which are beneficial to all parties, and powers which confer personal privileges on particular parties, such as powers to jointure, to charge portions to raise money for any particular purpose, &c." (6). The latter, therefore, may not be introduced under a direction to insert usual powers, for they have the effect of diminishing the corpus of the settled estate, and the Court has no rule by which to determine the quantum of the charge (c). And if the wiU or articles direct the insertion of some particular powers by name, then, as expressio unius exclusio alterius, the meaning of the words " usual powers " will be materially qualified. Thus, where it was stipulated that the settlement should contain a power of leasing for 21 years in possession, a power of sale and exchange, of appoint- ment of new trustees, and other usual powers, it was held that a power of granting building leases could not be inserted (d). So, if the trustees be authorised to insert a power of sale and exchange of estates in the county of Hereford, and all other usual powers, they would not be justified in extending the power of sale and exchange to estates lying in a different county (e). And where a testator directed that the settlement should contain all proper powers for making leases, and otherwise according to circumstances, and that provision should also be made for the appointment of new trustees, and the Court was asked to insert a power of sale and exchange, Lord Eldon said, " It was held by Sir "W. Grant, that unless the insertion of a power were authorised by the direction to make a settlement, it could not be introduced ; and if, where nothing is expressed, nothing can be implied, it is impossible, where something is expressed, I can imply more than is expressed ; and particularly where the will notices what powers are to be given " (/). But, {a) See Silt v. Hill, 6 Sim. 145 ; {d) Pearse v. Baron, Jao. 158. The Buke of Bedford v. The Mar- (e) Bill v. Hill, 6 Sim. 141, per guis of Ahercorn, 1 Myl. & Cr. 312. Sir L. Shadwell. (6) Hill Y. Hill, 6 Sim. 144. (/) Brewster Y.Angell, IJ. & W. (c) Higginson v. Barnehy, 2 S. & 625 ; and see Home v. Barton, Jao. S. 516, see 518. 439. 166 PEOPER POWERS. [CH. vn. S. 1. "Proper powers.'' Power of sale. where a testator directed the insertion of powers of leasing, and sale or exchange, or partition, and then added, " And my will is, that in such intended settlement shall be inserted all such other proper and reasonable powers as are usually inserted in settlements of the like nature," and the question was raised, whether, under these words, a power of appointment of new trustees might be introduced, Lord Cottenham, then M. E., said, " He had referred to the will, and as he found that those general words were in a separate and distinct sentence, he was of opinion they would authorise the insertion of the power " (a). A testator had directed the insertion of proper powers for making leases or otherwise to be reserved to the tenants for life, while qualified to exercise them, and, whenever disquaUfied, to the trustees. In the execution of the settlement, a power of sale and exchange was introduced, and was limited to the trustees with the consent of the tenant for life ; but it was held by Lord Eldon, that the insertion of the power in that mode was not in conformity with the instructions (6). It was after- wards debated before Sir T. Plumer, whether a power of sale and exchange could, in any form, be admitted ; when his Honour said, " The first point to be considered is, in whom the powers are to be vested ; and it is clear that they are to be given to the tenants for life, if qualified, and if they should not be able to act, to the trustees. — Now, if the power of sale and exchange is to be given to the tenant for life without check or control, I cannot say that it is a proper power; on the contrary, it may be very dangerous, as the tenant for life may, for many reasons, be induced to seU, when it may not be for the benefit of the remaindermen ; nor is it usual to give him this power without the check of requiring the assent of the trustees. Take it' the other way: if the tenant for life is disqualified, as by infancy, can the Court say it is a proper power to be given exclusively to the trustees ? " And therefore his Honour thought the power of sale and exchange could not be introduced (c). If a settlement of stock with a power of varying securities [a] Lindow v. Flcettoood, 6 Sim. 152. (i) £rewstery.Angen,lJ.&W.625. (c) Some V. Sarton, Jac. 437. CH. Vn. S. 2.] IMPLIED TRUSTS. 167 contain a covenant to settle real estate upon the like trusts, and with the like powers, a power of sale and exchange is implied, as corresponding with the power oi varying secwrities (a). Trusts are often created by words of reference to other trusts, and where this is the case, care should be taken to insert a proviso where such is the intention, that charges on the estate shall not be increased or multiplied. Should the clause, how- ever, be omitted, the Court will exercise its judgment on the question whether the duplication of charges was or not intended by the parties (6). SECTION II. OF IMPLIED TKirSIS. Wherever a person, having a power of disposition over pro- General rule, perty, manifests any intention with respect to it in favour of another, the Court, where there is sufficient consideration, or in a will where consideration is implied, will execute that intention, through the medium of a trust, however informal the language in which it happens to be expressed. A frequent case of implied trust arises where a testator Words precatory, employs words precatory, or recommendatory, or expressing a belief (c). Thus if he " desire " (^, " will " (e), " request " (/), " will and desire " (g), " wish and request " (h), " entreat " (i), (a) Williams v. Carter, 2 Sug. & G. 154 ; S. C. 5 CI. & Kn. 129 ; Vow. 635 ; and see Home v. Barton, 8. C. LI. & G. temp. Plunkett, 559. Jao. 440. (e) Bales v. England, Pr. Ch. 200 ; (J) Hindu v. Taylor, 5 De G-ex, Clowdsl^ v. Pellham, 1 Vern. 411. Mac. & Gord. 577. (/) Pierson v. Garnet, 2 B. C. C. (c) Cary r. Gary, 2 Sch. & Lef. 38 ; S. C. affirmed, id. 226 ; Bade 189, ^er Lord Redesdale ; Paul v. v. Bade, 5 Mad. 118; Moriarty v. Compton, 8 Ves. 380, per Lord Martin, 3 Ir. Ch. Rep. 26. Eldon. ig) Birch v. Wade, 3 V. & B. {d) Harding v. Glyn, 1 Atk. 469 ; 198 ; Forhes v. Ball, 3 Mer. 437. Mason v. Limhury, cited Vernon v. (h) Foley v. Parry, 5 Sim. 138 ; Vernon, Amb. 4 ; Trot v. Vernon, affirmed, 2 M. & K. 138. 8 Vin. 72 ; Pushman v. Filliter, 3 («) Prevost v. Clarke, 2 Mad. Ves. 7 ; Brest v. Qfley, 1 Ch. Rep. 458 ; Meredith v. Heneage, 1 Sim. 246 ; Cary v. Cary, 2 Sch. & Lef. 553, 555, per Chief Baron Wood ; 189 ; Crutvys v. Caiman, 9 Ves. and see Taylor v. George, 2 V. & B. 319 ; and see Shaw v. Lawless, L. 378. 168 IMPLIED TRUSTS. [CH. vn. S. 2. No trust raised where there is uncertainty. " most heartily beseech " (a), " order and direct " (b), " authorise and empower " (c), " recommend " (d), " hope " (e), " do not doubt " (/), " be well assured " {^), " confide " Qi), " have the fullest confidence ' (i), " trust and confide " {k), " have full assurance and confident hope " (I), " well know " (m), or use such expressions as " of course the legatee will give " (m), " in con- sideration the legatee has promised to give" (o), &c. In these and similar cases, the intention of the testator is considered imperative, and the devisee or legatee is bound, and may be compelled to give effect to the injunction. But such a construction will not in general prevail where either the objects intended to be benefited are imperfectly described {p), or the amount of the property to which the trust (o) Meredith v. Heneage, 1 Sim. 553, per Chief Baron Wood. (5) Cary v. Gary, 2 Soh. & Lef. 189; finiite v. Briggs, 2 Phill. 583. (c) Brcwn v. Siggs, 4 Ves. 708 ; 5 id. 495 ; affirmed, 8 Ves. 561 ; and in D. P. 18 Ves. 192. (d) Tibbits v. Tibbits, Jac. 317 ; S. C. affirmed, 19 Ves. 656 ; Hor- wood v. West, 1 S. & S. 387 ; Paul V. Compton, 8 Ves. 380, per Lord Eldon ; Malim v. Keighley, 2 Ves. jun. 333 ; S. C. ib. 529 ; Malim v. Barker, 3 Ves. 150; Meredith v. Heneage, 1 Sim. 553, per Chief Baion Wood ; Kingston y. Lorton, 2 Hog. 166 ; Cholmondeley v. Chol- mondeley, 14 Sim. 590 ; Hart v. Tribe, 18 Beav. 215 ; and see Meg- gison v. Moore, 2 Ves. jun. 630 ; ■Sale V. Moore, 1 Sim. 534 ; JSx parte Payne, 2 Y. & C. 636 ; Sandal Y. Hearle, 1 Anst. 124. As to Cunliffe v. Cunliffe (Amb. 686), see Pierson v. Garnet, 2 B. C. C. 46 ; Malim v. Keighley, 2 Ves. jun. 532 ; Pushman v. Filliter, 3 Ves. 9. (e) Harland v. Trigg, 1 B. C. C. 142 ; and see Paul v. Compton, 8 Ves. 380. (/) Parsons v. Baker, 18 Ves. 476; Taylor v. George, 2 V. & B. 378; Malone v. O^ Connor, Lloyd & Goold. temp. Plunkett. 465 ; and see Sale v. Moore, 1 Sim. 534. {g) Macey v. Skurmer, 1 Atk. 389 ; S. C. Amb. 520. See Ray v. Adams, 3 M. & K. 237. {h) Griffiths v. Evans, 5 Beav. 241. (i) See Wright v. Athyns, 17 Ves. 255, 19 Ves. 299, Coop. Ill, 1 T. & R. 143 ; Webb v. Wools, 2 Sim. N. S. 267 ; Palmer v. Sim- monds, 2 Drewry, 225. {k) Wood V. Cox, 1 Keen, 317; S. C. 2 M. & C. 684 : Pilkington v. Boughey, 12 Sim. 114. [1] Macnab v. Whitbread, 17 Beav. 299. (in) BardsweUy.Bardswell,9&m. 323 ; Nowlan v. Nelligan, 1 B. C. C. 489 ; Briggs v. Penny, 3 Mac. & Gord. 546, 3 De G. & Sm. 525. {n) Robinson v. Smith, 6 Mad. 194 ; but see Lechmere y. Zavie, 2 M. & K. 197; and see Leach v. Leach, 13 Sim. 304. (o) Clifton V. Lombe, Amb. 519. {p) Harland v. Trigg, 1 B. C. C. 142 ; Tibbits v. Tibbits, 19 Ves. 664, per Lord Eldon ; Richardson, v. Chapman, 1 Burn's Ecoles. Law, 245 ; Pierson v. Garnet, 2 B. 0. C. 45, per Lord Kenyon, S. C. id. 230, per Lord Thurlo w ; Knight v. Knight, 3 ]5eav. 173, per Lord Langdale ; CH. Vn. S. 2.] IMPLIED TRUSTS, 169 should attach is not sufficiently defined (a) ; for the difficulty that would attend the execution of such imperfect trusts is con- verted by the Court into an argument that no trust was really intended (b) : but although vagueness in the object will un- questionably furnish reason for holding that no trust was intended, this may be countervailed by other considerations ; and if it appear clearly that a trust was intended, though the objects are not sufficiently defined, there will be a resulting trust for the benefit of the heir-at-law, or next of kin, accord- ing to the nature of the property (c). The rule as laid down by Lord Alvanley and since recognised as the correct principle was this, " "Wherever a testator points out the objects, the pro- perty, and the way in which it shall go, that creates a trust unless there are plain express words or necessary implication that he does not mean to take away the discretion, but intends to leave it to be defeated " (d). The objects have been held to be uncertain where personal Uncertainty of the objects. estate has been given to A., with a hope " that he would continue it in the family " (e) ; but, as regards personal estate, the word family has been sometimes construed as equivalent to relations, that is next of kia (/) ; and where freeholds were so devised, it was held that by " famUy " was to be understood Sale v. Moore, 1 Sim. 534 ; Cary v. Ves. 205 ; JEade v. Uade, 5 Mad. Cary, 2 Soh. & Lef. 189, per Lord 118; Curtis v. Mippon, 5 Mad. Eedesdale ; Meredith v. Heneage, 1 434 ; Mussell v. Jackson, 10 Hare, Sim. 542, see 558, 559, 565; Ex 213. parte Payne, 2 T. & C. 636. (6) Morice v. Bishop of Durham, (a) Lechmere v. Lavie, 2 M. & 10 Ves. 536, per Lord Eldon. E. 197 ; Knight v. Knight, 3 Beav. (c) Briggs v. Penny, 3 Mae. & 148; Meredith v. Heneage, 1 Sim. Gor. 546. 556 ; Buggins v. Yates, 9 Mod. 122 ; {d) Malim v. Keighley, 2 Ves. Sale V. Moore, 1 Sim. 534 ; Anon. jun. 335. See Knight v. Boughton, case, 8 Vin. 72 ; Tibbits v. Tibbits, 11 CI. & Fin. 548, 551. 19 Ves. 664, ^er Lord Eldon; Wynne (e) Sarland v. Trigg, 1 B. C. C. V. Saivkins, 1 B. C. C. 179 ; Pier- 142. See Wright v. Atkyns, Coop. son V. Garnet, 2 B. C. C. 45, per 121 ; Woods v. Woods, 1 M. & Lord Kenyon; S. C. ib. 230, per C. 401; Be Parkinson's Trust, Lord Thurlow ; Bland v. Bland, 2 1 Sim. N. S., 242 ; Williams y. Cox, 349 ; Le Maitre v. Bannister, Williams, 1 Sim. N. S., 321 ; but cited in note to Bales v. England, see WJate v. Briggs, 2 Phill. 583 ; Pr. Cb. 200 ; Sprange r. Barnard, and Liley v. ITey, 1 Hare, 580. 2'B.C.C. 5^5; PushmanY. Filliter, (/) Cruwys y. Colman, 9 Ves. 3 Ves. 7 ; Attorney- General v. Sail, 319. Eitzg. 314; Wilson v. Major, 11 170 IMPLIED TRUSTS. [CH. VXI. S. 2. the worthiest member of it, viz. the heir at law (a). Even ia freeholds however the designation was held to be too un- certain where the request was to distribute "amongst such members of the person's family" as he should think most deserving (6). In another case both real and personal estate were blended together, and given to A., in full confidence that she would devise the whole of the estate to " such of the heirs of the testator's father as she might think best deserved a preference," and the Court could not determine whether heirs were intended, or next of kin, or both (c). Again, a residuary estate was bequeathed to A., with a recommendation that she would " consider the testator's relations." Sir A. Hart asked, " Who are the objects of the trust ? Did the testator mean relations at his own death, or at A.'s death ? Did he mean that she should have the liberty of executing the trust the day after his death ? " And his Honour was of opinion that no trust could attach [d). But there can be no uncertainty of the objects where such a trust is to be executed by will, for then those who answer the description at the death of the donee of the power must be the parties contemplated (e). Uncertainty of The Court has refused to establish the trust from the matter. Uncertainty of the subject, that is, of the property intended to be bound by the trust, where the recommendation has been to "consider certain persons" (/), "to be kind to them" (g), to " remember them " (/;.), "to do justice to them"(i), "to make {a) Atkyns v. Wright, 17 Ves. (e) Pierson v. Garnet, 2 B. C. C. 255; S. C. 19 Ves. 299; 8. C. 38; S. C.ii. 226; Athynsy. Wright, Coop. Ill ; and see S. C. 1 Turn. & 17 Ves. 255 ; S. C. 19 Ves. 299; B,\xss.U3;MaloneY.O'Connor,JAoji S. C. Coop. Ill; and see S. C. 1 & Goold. temp. Pluukett, 465: Turn. & Euss. 162; Knight v. Griffiths V. Hvans, 5 Beav. 241 ; Knight, 3 Beav. 173 ; Meredith v. White V. Briggs, 2 Phill. 583 ; Heneage, 1 Sim. 558. Green v. Marsden, 1 Drewry, 646. (/) Sale v. Moore, 1 Sim. 534 ; (J) Green v. Marsden, 1 Drewry, and see Hoy v. Master, 6 Sim. 568, 646. {g) Buggins v. Yates, 9 Mod. (c) Meredith v. Heneage, 1 Sim. 122. 542, see 558, 559, 565 ; but see {h) Bardswell v. Bardswell, 9 Wright v. Atkyns, Coop. 119. Sim. 319. {d) Sale V. Moore, 1 Sim. 534, (i) Le Maitre v. Bannister, Pr. see 540 ; and see Macnab v. Whit- Ch. 200, note (1) ; Pope v. Pope, bread, 17 Beav. 299 ; but see Wright 10 Sim. 1. v. Atkyns, Coop. 119 — 123. CH. YII. S. 2.] IMPLIED TEUSTS. 171 ample provision for them " (a), " to use the property for herself and her children, and to remember the Church of God, and the poor " (6), " to give what should remain at his death, or what he should die seised or possessed of" (c), "to finally appropriate as he pleases, " with a recommendation to divide amongst certain persons {d), to divide and dispose of the savings (e), or the bulk of the property (/), or wherever the donee of the property has had power to dispose of any part he pleased, whether expressly given him, or arising from implica- tion, or from the nature of the subject (g). But where the recommendation was, that the legatee, in case she married again, should settle what she possessed under the testator's will to her separate use, and should bequeath what she should die possessed of under the will in favour of certain persons, it was held that the whole personal estate was overreached by the trust. Sir John Leach said, " The testator directs, that upon a marriage, whenever a second marriage may happen, the whole of the property shall be secured, and a power to dispose of any part of the property absolutely, at any time during her life, is not to be reconciled to that provision. I must therefore consider that, when he recommends her to give what she shall die possessed of, be had in view the whole property which she should possess under his will " (h). And where both objects and property are certain, yet no whetlier tmst or trust will arise, if the testator expressly declares that the tionTfintentkn' language is not to be deemed imperative, or the construing it "o* ?^ r^™ rt a trust would be a contradiction to the terms in which the pre- ceding bequest is given (i), or if, all circumstances considered, (a) WincJiY. BruUon,14:8im.319. (d) White v. Briggs, 15 Sim. 33. (6) Curtis V. Rippon, 5 Mad. 434. (e) Cowman v. Harrison, 10 (c) Sprange v. Barnard, 2 B. C. Hare, 234. C. 585; Green v. Marsden, 1 (/) Palmer v. Simmonds, 2 Drewry, 646; Pushman v. Filliter, Drewry, 221. 3 Yes. 7 ; Wilson v. Major, 11 Ves. (g) Malim v. Keighley, 2 Ves. 205; Bade v. Bade, 5 Mad. 118; jun. 531, per Lord Loughborough; Wynne v. Hawkins, 1 B. C. C. 179; and see Knight v. Knight, 3 Beav. Lechmere v. Lavie, 2 M. & K. 197 ; 174 ; 11 CI. & Fin. 513 ; Huskisson Bland v. Bland, 2 Cox, 349 ; At- v. Bridge, 4 De Gex & Sm. 245. torney- General v. Hall, Fitzg. 314 : (A) Horwood v. West, 1 S & S. 387. and see Meredith v. Heneage, 1 Sim. [i) Webb v. Wools, 2 Sim. N. S. 556 ; Tibbits v. Tibbits, 19 Ves. 267 ; Huskisson v. Bridge, 4 De Gex 664 ; Pope v. Pope, 10 Sim. 1. & Sm. 245. 172 IMPLIED TEUSTS. [CH. VII. S. 2. it is more probable the testator meant to communicate a mere discretion ia) ; as if he at the same time declare that the estate shall be " unfettered and unlimited " (6), or if he " recommend but do not absolutely enjoin" (c), or if the gift be absolutely to A., with words expressing merely the reason or motive with which the gift is made, as " to enable him to assist such of the children of B. as he shall find deserving of encourage- ment "(li). The construction of the words we are considering never turns on their grammatical import, they may be imperative, but are not necessarily so (e). In Shaw v. Lawless (/), the trustees were recommended to employ a receiver, and Lord Cottenham, alluding to that case, observed, " It was there laid down as a rule which I have since acted upon, that though 'recommendation' may in some cases amount to a direction and create a trust, yet, that being a flexible term, if such a construction of it be inconsistent • with any positive provision in the will, it is to be considered as a recommendation and nothing more. In that case the interest supposed to be given to the party recommended was iacon- sistent with other powers which the trustees were to exercise, and those powers being given in unambiguous terms, it was held that as the two provisions could not stand together, the flexible term was to give way to the inflexible term"(^). Trustees of this And if a trust be created, it does not follow that it shaU be so strictly bound equally restrictive, as where the trust is properly such. Thus trnit.'""""™™ ^^ ^^*^t® was devised to A. and her heirs, "in the fullest confidence " that after her decease she would devise the pro- perty to the family of the testator ; and Lord Eldon asked, (a) Bull v. Vardy, 1 Ves. jun. (c) Young v. Martin, 2 Y. & C. 270 ; Knott v. Cottee, 1 Phill. 292 Knight v. Knight, 3 Beav. 148 Meggison v. Moore, 2 Ves. jun. 630 Ch, Ca. 582. (<^) Benson v. Whittam, 5 Sim. 30 ; Thorp v. Owen, 2 Hare, 611. Hill V. Bishop of London, 1 Atk. (e) Meggison v. Moore, 2 Ves. 618; and see Paul v. Compton, 8 jun. 632, per Lord. Loughborough; Ves. 380 ; Knightv. Knight, 3 Beav. and see Johnston v. Rowlands, 2 De 174, 11 CI. & Fin. 513; Lefroy Gex & 8m. 358, ^er Vice-Chanoellor v. Flood, 4 Ir. Ch. Rep. 1. Knight Bruce. (J) Meredith v. Heneage, 1 Sim. (/) LI. & Goold, t. Sugden, 154; 542 ; S. C. 10 Price, 230 ; Hoy v. 5 CI. & Fin. 129 ; Lloyd & Goold, 3Iaster, 6 Sim. 568. t. Plunkett, 559. [g) Knott Y. Cottee, 2 PhiU. 192. CH. vn. S. 2.] IMPLIED TRUSTS. 173 " Is there any case in which the doctrine has been carried so far, that the tenant in fee shall not be at liberty, with respect to timber and mines, to treat the estate in the same husbandlike manner as another tenant in fee ?" and his Lordship said he should hesitate a long time before he held that the person bound by the trust was not entitled to cut timber in the ordinary management of the property (a). And so it was after- wards decided by the House of Lords on appeal (6). The current of decisions has of late years set against the Doctrine now doctrine of converting the devisee or legatee into a trustee (c). imaged! Of course, where the words are construed in equity to raise Wlere the words a partial trust, the devisee or legatee is deemed a trustee to t^uj^ the'^sm-- the extent only of the charge, and the surplus will not result pl"^ does not to the heir or next of kin, but will belong to the devisee or legatee beneficially {d). But if a trust be established as to the whole property giveUj Wliere the -B-ords and the objects of the trust for any reason fail, the ivhole bene- to whole pro- ficial interest will be a resulting trust in favour of the testator's P^"^^" real or personal representative (e). • Again (to proceed with the instances of implied trusts), if a Charge of debts, person by will direct his realty to be sold, or charge it with debts and legacies (/), or with any particular legacy (g), the legal estate may descend to the heir, or it may pass to a devisee ; but the Court will view the direction as an implied declaration of trust, and will enforce the execution of it against the legal proprietor. Again, if a person agrees for valuable consideration to settle Agreement for valuable con- sideration. (o) See Wright v. Atkyns, Turn. (e) Briggs v. Penny, 3 Mac. & & Russ. 157, 163. Gord. 546, 3 De G. & Sm. 525. (6) See Lawless v. Shaw, Lloyd (/) Pitt v. Pelham, 2 Freem. & Goold, *. Sugden, 164. ' 134 ; S. C. 1 Ch. Re. 283 ; Locton (c) Sale V. Moore, 1 Sim. 540 ; v. Locton, 2 Preem. 136 ; Ashy v. and see Meredith v. Heneage, id. Boyl, 1 Ch. Gas. 180 ; Tenant v. 566 ; Lawless v. Shaw, 1 Lloyd & Brown, ib. ; Garfoot v. Oarfoot, 1 Goold, 164; Knight v. Knight, 3 Ch. Ca. 35; S. C. 2 Freem. 176; Beav. 148 ; Williams v. Williams, Gwilliams v. Rowel, Hard. 204 ; 1 Sim. K. S. 358 ; Lefroy v. Flood, Blatch v. Wilder, 1 Atk. 420 ; 4 Ir. Chan. Rep. 9. Carvill v. Carvill, 2 Ch. Re. 301 ; {d) Wood V. Cox, 1 Keen, 317 ; Cooh v. Fountain, 3 Sw. 592 : Ben- reviTsed, 2 M. & C. 684. net v. Bails, 2 P. W. 318, &c. iff) ^J'm ^- '^W. 1 -^tk. 382. 174 IMPLIED TRUSTS. [CH. Vn. S. 2. a specific estate, he thereby becomes a trustee of it for the intended objects, and all the consequences of a trust will follow [a) ; and so if he covenant to charge all lands that he may possess at a particular time (b), or at any time (c), he will be a trustee of such lands to the extent of the charge. And even if a person engages on his marriage to settle all the personal estate that he may acquire during the coverture, the trusts upon which it is so agreed the personalty shall be settled will fasten upon the property as it falls into possession ; and if the money has been laid out in a purchase, may be followed into the land (d). Contract for sale. Again, if a person contract to sell another an estate, the vendor has impliedly declared himself a trustee in fee for the purchaser, and is accountable to him for the rents and profits (e); and if the tenants have been allowed improperly to run in arrear (/), or there has been unhusbandlike farming {g), or any other injury done, either by the wilful waste or neglect of the vendor {h), he is answerable to the purchaser as for a breach of trust. On the other handj if any damage arise to the estate, not by the default of the vendor, as by fire (i), or dilapida- tions (k), the loss will fall on the purchaser ; and if the accident by which the damage arises brings with it legal obligations which must be immediately satisfied, and which the vendor satisfies, the expense thus incurred must be borne by the pur- chaser (Z); and so, should the estate become by any accident more valuable, the purchaser will take the improvement (m). (a) Finch v. Winchelsea, 1 P. (/) Acland v. Gaisford, 2 Mad. 28. "W. 277 ; Freemoult v. Dedire, ib. {g) Ferguson v. Tadman, 1 Sim. 429 ; Kennedy v. Daly, 1 Sch. & 630 ; Foster v. Beacon, 3 Mad. 394. Lef. 355 ; Legard v. Hodges, 1 Ves. (A) Wilson v. Clapham, 1 J. & jun. 477 ; S. C. Z B. C. C. 531, 4 W. 39. B. C. C. 421 ; JRavenshaw v. Hollier, [i) Paine v. Meller, 6 Ves. 349 : 7 Sim. 3. Harford v. Furrier, 1 Mad. 539, (6) Wellesley v. Wellesley, 4 M. per Sir T. Plumer ; Acland v. Gais- & C. 561. ford, 2 Mad. 32, per eundem ; as to (c) Lyster v. Burroughs, 1 Drury Stent v. Bailis, 2 P. W. 220, see & Walsh, 149. Paine v. Meller, 6 Ves. 352. (J) ZetCTST. ilfarfoc^s, 8 Ves. 150; (A) Minchin v. Nance, 4 Beav. S. C. 17 Ves. 48. 332. (e) See Acland v. Gaisford, 2 (l) Robertson v. Skelton, 12 Beav. Mad. 32 ; Wilson v. Clapham, 1 J. 280. & "VV. 38. (to) See Harford v. Furrier, t CH. Vn. S. 2.] IMPLIED TRUSTS. 175 It should be observed, however, that the vendor is, after all, ^ a trustee sub modo only, for he cannot be compelled to deliver ^ up the possession until the purchase-money has been paid (a), z And so the purchaser is only a cestui que trust sub modo, and > he cannot enforce any equitable rights attached to the estate - until the contract has been completed (6).^>w^^^'^^i^i>r It would be endless to pursue implied trusts through all > their ramifications, but the general principles may be collected from the examples given. Mad. 539 ; Revell v. Hussey, 2 B. Mad. 32 ; Wall v. Bright, 1 J. & & B. 287 ; Paine v. Meller, 6 Ves. W. 494. 352 ; Spurrier v. Hancock, 4 Ves. (5) See Tasker v. Small, 3 M. & 667 ; White v. Nutts, 1 P. W. 61. Cr. 70. (o) See Acland v. Gaisford, 2 CHAPTER VIII. or RESULTING TRUSTS. Classification of trusts by opera- tion of law. Subdivision of resulting Tnists. Hating discussed the various questions involved in the crea- tion of trusts by the act of a partj'', we shall next direct our attention to the creation of trusts by operation of law. Trusts of this kind may be regarded as twofold, viz. 1. Eesulting, 2. Constructive. Resulting Trusts, the subject of the present chapter, may be subdivided into the two following classes : First, "Where a person being himself both legally and equitably entitled makes a conveyance, devise, or bequest of the legal estate, and there is no ground for the inference that he meant to dispose of the equitable ; and, Secondly, Where a purchaser of property takes a conveyance of the legal estate in the name of a third person, but there is nothing to indicate an intention of not appro- priating to himself the beneficial interest. SECTION I. General rule. Chattel interest in real estate results to heir's OF HBSTJLTINa TEUSTS WHEEE THEKE IS A DISPOSITION OF THE LEGAL AND NOT OF THE EQITITABLB INTEEEST, The general rule is, that wherever, upon a conveyance, de- vise, or bequest, it appears that the grantee, devisee, or legatee was intended to take the legal estate merely, the equitable interest, or so much of it as is left undisposed of, will result, if arising out of the settlor's realty, to himself, or his heir, or, if out of personal estate, to himself or his executor. Should the interest resulting as a remnant of the real estate to the heir be of a chattel nature, as a term of years, or a sum CH. Vm. S. 1.] RESULTING TRUSTS. 177 of money, it will, on the death of the heir, devolve on his per- pei-Bonal repre- sonal representative (a). Bentative. And if real estate charged with debts be sold by the Court in the lifetime of the heir, the surplus (as the exact amount required could not be raised) will, from the time of sale, be considered personal estate, and devolve on the heir's personal representative (6). The intention of excluding the person invested with the legal Of trusts result- estate from the usufructuary enjoyment, may either be presumed tion. ''^ ^'^^""'^ by the Court, or be actually expressed upon the instrument. Should an estate be granted either without consideration or whether trust for merely a nominal one (c), and no trust be declared of any ^^ ^^^ declared part, then if the conveyance be simply to a stranger in blood, °^ *"? P'''^' and no intention appear of conferring the beneficial interest, as the law will not suppose a person to part with property without some inducement thereto, it seems a trust of the whole estate (as in the analogous case of uses before the statute of Henry) will result to the settlor (d). If the conveyance be to a wife (e) or son (/) it will be pre- sumed an advancement, and the wife or son will be entitled (a) Levet v. Needham, 2 Vern. Hardwicke was apparently of opinion 138; Wych v. Packington, 3 B. P. that, since the Statute of Frauds, C. 44 ; Sewell v. Denny, 10 Beav. there are only two cases of resulting 315 ; Barrett v. Buck, 12 Jui-. 771. trust, viz. : 1st, "Where an estate is See Salford v. Stains, 16 Sim. 288. purchased in the name of a stranger ; (J) Flanagan v. Flanagan, cited and 2ndly, Where on a voluntary Fletcher v. Ashhurner, 1 B. C. C. conveyance a trust is declared of 500. part, ia which case the residue results. (c) See Hayes v. Kingdome, 1 It would seem to follow that, in his Vern. 33 ; ScuWhorpe v. Burgess, 1 opinion, should a voluntary convey- Ves. jun. 92. ance he made and no trust at all he (d) Buke of Norfolk v. Browne, expressed, the grantee would take Pr. Ch. 80 ; Warman v. Seaman, the beneficial iaterest to his own 2 Freem. 308, per Cur. ; Hayes v. use ; and see Eutchins v. Lee, 1 Kingdome, 1 Vern. 33 ; Grey v. Atk. 447. Grey, 2 Sw. 598, ^er Lord Wotting- (e) See Christ's JECosp. v. Budgin, ham ; EUiot v. Elliot, 2 Ch. Ca. 2 Vern. 683. 232, per eundem : Attorney- General (/) Jennings v. Selleck, 1 Vern. V. Wilson, 1 Or. & PhU. 1 ; and see 467 ; Grey v. Grey, 2 Sw. 598, per Sculthorpe v. Burgess, 1 Ves. jun. Lord Nottingham ; Flliot v. B/liot, 92 ; Lady Tyrrell's case, 2 Freem. 2 Ch. Ca. 232, per eundem ; and 304 ; Ward v. Lant, Pr. Ch. 182 ; see Hayes v. Kingdome, 1 Vern. but in Lloyd r. Spillet, 2 Atk. 150, 33 ; Baylis v. Neicton, 2 Tern, 28: and Young v. Peachey, ib. 257, Lord Cook v. Hutchinson, 1 Keen, 42. 178 BESULTING TEUSTS. [CH. Vm. S. 1, beneficially. In a case where a son conveyed an estate to his father, as purchaser, for the sum of 400Z., and then filed a bill against the devisees of the father for a re-conveyance, and it appeared from parol evidence which was read de bene esse that no money was ever paid, and that the intention of the parties was, that the son being in bad credit the father should be the ostensible owner of the estate, in order the more readily to raise money on mortgage. Sir J. Leach held, that since the Statute of Frauds parol evidence was inadmissible to prove a trust, and that as there was no fraud or misapprehension, but the meaning was that the father should exercise towards the world at large the beneficial ownership, there was no resulting or constructive trust, but that the devisees must keep the estate. The Court, however, decreed the son as vendor upon the face of the deed to have a lien upon the property for the 400Z. as upon unpaid purchase-money (a). Cripps V. Jee. In a similar case of absolute sale upon the face of the deed, but where the grantee afterwards admitted himself in writing to be a trustee. Lord Kenyon held that, the written evidence estabhshing facts inconsistent with the deed, further evidence by parol was admissible to prove the truth of the trans- action (b). Mistake or fraud. Qf course the Court will not permit the grantee to retain the beneficial interest if there was any mistake on the part of the grantor (c), or any mala fides on the part of the grantee (d). But if the grantor himself intended a fraud upon the law, the assurance, if the defendant demurs, will be made absolute against the grantor (e); however, if the defendant admit the trust, it seems the Court will relieve (/). It was said in one case that if a man transfer stock or deliver money to another. [a) Leman v. Whitley, 4 Russ. per eundem ; Young v. Peachy, 2 423. Atk. 254 ; Wilkinson v. BrayfieU, (6) Cripps v. Jee, 4 B. C. C. 472. cited ib. 257 ; 8. C. reported 2 (c) Birch v. Blagrove, Amb. 264; Vern. 307. Anon, cited Woodman v. Morrel, 2 (e) Cottington v. Fletcher, 2 Ati. Freem. 33; s.-aA. ma Attorney- Oene- 156, ^er Lord Hardwicke; and see ral V. Boulden, 8 Sim, 472. Chaplin v. Chaplin, 3 P. V. 233 ; {d) Lloyd V. Spillet, 2 Atk. 150, Mucldeston v. Brown, 6 Yes. 68. S. C. Barn. 388, per Lord Hard- (/) See Cottington v. Fletcher,, wicke ; Hutchins v. Lee, 1 Atk. 448, Mucldeston v. Brown, ubi supra. CH. Vni. S. 1.] RESULTING TEUSTg. 179 it must proceed from an intention to benefit that other person, and therefore, although he be a stranger, it shall be primd facie a gift (a), but if such an intention cannot be inferred consistently with the attendant circumstances, a trust will result (&). If upon a conveyance (c), devise [d), or bequest (e), a trust be Where a trust is .,., declared of part declared ot part ot the estate, and nothing is said as to the of the estate, the residue, then, clearly, the creation of the partial trust is /ue re°sults! "^^^^ regarded as the sole object in view, and the equitable interest undisposed of by the settlor results to him or his repre- sentative. But upon this subject a distinction must be observed Partial dedara- between a devise to a person for a particular purpose with tinguished from no intention of conferring the beneficial interest, and a devise ^ ° '"^^®' with the view of conferring the beneficial interest, but subject to a particular injunction. Thus, if lands be devised to A. and his heirs upon trust to pay debts, this is simply the creation of a trust, and the residue will result to the heir; but if the devise be to A. and his heirs charged with debts, the intention of the testator is to devise beneficially subject to the charge, and then whatever remains, after the charge has been satisfied, will belong to the devisee (/). No positive rule can be laid down to determine in what No positive rule . f> • 1 1 i to ^^ ^"■^'^ down. cases the devise will carry with it a benencial character, and in what it will be construed a trust ; but on all occasions the Court, refusing to be governed by the mere technical (o) George v. Howard, 7 Price, 644 ; Nash r. Smith, 17 Ves. 29 ; 651 53, W]/ch V. Pachinton, cited Moper v. (5) See Custance v. Cunningham, Radcliffe, 9 Mod. 187 ; Davidson v. 13 Beav. 363. Foley, 2 B. C. C. 203 ; Kiricke v. (c) Cottington v. Fletcher, 2 Atk, Bransbey, 2 Eq. Ca. Ab. 508 ; Levet 135 ; Culpepper v. Aston, 2 Cli. Ca. v. Needham, 2 Tern. 138 ; SCalliday 115 ; Cook v. Gwavas, cited JRoper v. Hudson, 3 Ves. 210 ; Eillett v. V. Radcliffe, 9 Mod. 187 ; Lloijd v. Killett, 3 Dow. 248 ; &c. Spillet, 2 Atk. 150 ; 8. C. Barn. (e) Robinson v. Taylor, 2 B. C. C. 388, per Lord Hardwicke. 589 ; Mapp v. Eleock, 2 Phill. 793 ; {d) Sherrard-f. Lord Harhorough, affirmed on appeal, 3 H. of L. Ca. Amb. 165 ; Marquis of Townshend 492 ; and see Dawson v. Clarke, 18 r. Bishop of Norwich, cited Saun- Ves. 254. ders on Uses, C. 3, s. 7, div. 3 ; Ho- (/) Xing v. Denison, 1 V. & B. hart Y. Countess of Suffolk, 2 Vern. 272, per Lord Eldon. N 2 180 EESULTING TEUSTS. tcH. vm. s. 1. Relationship of the devisee or legatee. "Trust" and "trustee" do not necessarily exclude a bene- ficial gift. phraseology, extracts the probable intention of the settlor from the general scope of the instrument {a). The recognition of the relationship of the parties has often materially influenced the Court against the construction of a mere trust (b). Thus, where a testator gave 51. to his brother, who was his heir-at-law, and "made and constituted his dearly beloved wife his sole heiress and executrix, to sell and dispose thereof at her pleasure, and to pay his debts and legacies ; " Lord King said, the devise that the wife should be sole heiress of the real estate did, in every respect, place her in the stead of the heir, and not as a trustee for him ; that it was plainer by reason of the language of tenderness and affection, "his dearly beloved wife," which must intend to her something beneficial, and not what would be a trouble only; and what maide it still stronger was, that the heir was not forgot, but had a legacy of 51. left him; and so his Lordship decreed the devisee to be beneficially entitled (c). But any allusion of this land is merely one circumstance of evidence, and therefore to be counteracted by the language of other parts of the instru- ment (d). Although the introduction of the words "upon trust" may be strong evidence of the intention not to confer on the devisee a beneficial interest (e), yet that construction may be negatived by the context, or the general scope of the instrument (/) ; and, in like manner, the devisee may be designated as " trustee ; " but if the term be used with reference to one only of two funds, he may still establish his title to the beneficial interest in the other (g). (a) Jlill V. Bishop of London, 1 Atk. 620, per Lord Hardwicke ; Walton V. Walton, 14 Ves. 322, per Sir W. Grant ; Starkey v. Brooks, 1 P. W. 391, per Lord Cowper; King v. Denison, 1 V. & B. 219, per Lord Eldon. (5) Lloyd V. Spillet, cited Cook V. Duckenjield, 2 Atk. 566 ; Lloyd V. Wentworth, cited Bohinson v. Taylor, 2 B. C. C. 594; Smithy. King, 16 East, 283 ; Coningham v. Hellish, Pr. Ch. 31 ; Cook v. Sut- chinson, 1 Keen, 42. (c) Bogers v. Bogers, 3 P."W. 193'. (d) BugginsY. Yates, 9 Moi. 122; Wych V. Packington, 2 Eq. Ca. Ab. 507 ; and see King v. Denison, 1 V. & B. 274. (e) See Hill v. Bishop of London, 1 Atk. 620 ; Woolletty. Harris, i Mad. 452. (/) Dawson y. Clarke, 13 Tea. 409; S. C. 18 Yes. 247, see 257 Coningham v. Mellish, Pr. Ch. 31 Cook V. Hutchinson, 1 Keen, 42 Hughes v. Evans, 13 Sim. 496. {g) Batteley v. Windle, 2 B. C. C. CH. Vin. S. 1.] REStTLTING TRUSTS. 181 ' It must also be observed, that, as the heir is a person Heir of settlor favoured in law, he wUl not be excluded from the resulting from?wiut!'^ trust on bare conjecture (a): and there must be nositive i°g trust on mere » , ^ . conjecture. evidence ot a benent intended to the devisee, and not merely negative evidence that no benefit was intended to the heir ; for the trust results to the real representative, not on the ground of intention, but because the ancestor has declared no inten- tion (i). Thus, a legacy to the heir will not prevent a trust from resulting (c) ; but, joined to other circumstances in favour of the devisee, it will not be without its effect (d). It need scarcely be remarked, that, as the species, of trust parol evidence. we are now considering results by presumption of law, it may be rebutted by positive evidence by parol, that the testator's intention was to confer the surplus interest beneficially (e). . Next, a trust results by operation of law, where the intention Of trusts result- not to benefit the grantee, devisee, or legatee, is expressed upon ^^q expressed." the instrument itself, as if the conveyance, devise, or bequest, be to a person "upon trust," and no trust is declared (/), or upon certain trusts that are too vague to be executed {g), or 31 ; Pratt v. Sladden, 14 Yes. 193 ; 506 ; King v. Denison, 1 V. & B. and see Oihhs v. Rumsey, 2 V. & B. 274 ; Amphlett v. Parke, 2 R. & M. 294. 230 ; Mallabar v. Mallahar, Cas. t. [a) Halliday v. Hudson, 3 Ves. Talb, 78. 211, per Lord Loughborough ; and (c) Crompton v. North, as cited see Kellett v. Kellett, 3 Dow. 248 ; Gainsborough v. Gainsborough, 2 Amphktt V, Parke, 2 E. (& M. 227; Vern. 253; Donksey v. Bocksey, 2 Phillips V. Phillips, 1 M. & K. 661 ; Eq. Ca. Ab. 506; Mallabar v. Mal- Salter v. Cavanagh, 1 Dru. & Walsh, labar, Cas. t. Talb, 78 ; Cook v, 668. Hutchinson, 1 Keen, 50, per Lord (i) See Hopkins v. Hopkins, Cas. Langdale. t. Talb. 44; Tregonwell v. Syden- (/) Dawson v. Clarke, 18 Ves. Jtam, 3 Dow. 211 ; Lloyd y. Spillet, 254, per Lord Eldon ; see Southouse 2 Atk. 151 ; HaberghamY. Vincent, y. Bate, 2 V. & B. 396 ; Morice v. 2 Ves. jun. 225. JBisJinp of Durham, 10 Ves. 537; (c) Bandall v. Bookey, 2 Vern. Woollett v. Harris, 5 Mad. 452 ; 425 ; S. C. Pr. Gh. 162 ; Hopkins Pratt v. Sladden, 14 Ves. 198 ; V. Hopkins, Cas, t. Talb. 44 ; Star- Dunnage v. White, 1 Jac. & "Walk. ■key V. Brooks, 1 P. W. 390, over- 583 ; Goodere v. Lloyd, 3 Sim. 538 ; juHng iVbriA V. Crompton, 1 Ch. Ca. Anon, case, 1 Com. 345 ; Penfold-v. 196 ; Salter v. Cavanagh, 1 Dru. & Bouch, 4 Hare, 271. Walsh, 668. {g) Fowler v. Garlike, 1 R. & M. [d) Mopers v. Rogers, 3 P. W. 232 ; Morice v. Bishop of Durham, 193 ; S. C. Sel. Ch. Ca. 81 ; and see 9 Ves. 399 ; S. C. 10 Ves. 622 ; Docksey v. Docksey, 2 Eq. Ca, Ab. Stubbs v. Sargon, 2 Keen. 255 ; 182 EESULTING TRUSTS. [CH. VIU. B. 1.. upon trusts to be thereafter declared, and no declaration ever made (a), or upon trusts that are void for unlawfulness (6), or that fail by lapse (c), &c. ; for in such cases the trustee can have no pretence for claiming the beneficial ownership, when, by the express language of the instrument, the whole property has been impressed with a trust, r.iroi evidence. And where, as in these cases, a trust results to the settlor or his representative, not by presumption of law, but by force of the written instrument, the trustee is not at liberty to defeat the resulting trust by the production of extrinsic evidence by. parol {d). Having distinguished between the two kinds of resulting trusts (a classification necessary to be made for the purpose of ascertaining the admissibility of parol evidence), we proceed to introduce a few remarks applicable to resulting trusts generally, whether arising by presumption of law or from the language of the instrument. In trusts for sale, First. If real estate be devised upon trust to sell for a par- proceeds result ticular purpose, and that purpose either wholly fail or do not S. C. 3 M. & C. 507 ; Kendall v. and his heirs, in trust to sell and Granger, 5 Beav. 300 ; Leslie v. pay part of the proceeds to persons Devonshire, 2 B. C. C. 187 ; Vezey capable of taking, and other part to V. Jamson, 1 Sim. & Stu. 69 ; and a charity, the statute of mortmain see JEJllis v. Selhy, 7 Sim. 352 ; 8. C. did not avoid the whole legal devise, 1 M. & C. 286; Williams -v. Ker- but affects only the interest given to sAaw, 5 CI. & Fin. 111. the charity; Young v. Cfrove, i (a) Emhlyn Y. Freeman, Pr. Ch. Com. B. Re. 668 ; Doev. Sams, 16 541 ; City of London v. Garway, 2 Mees. & W. 517. Vern. 571 ; Collins v. Waheman, 2 (c) Achroyd v. Smithson, 1 B. C. Ves. jun. 683 ; Fitch v. Weber, 6 C. 503 ; Spinh v. Lewis, 3 B. C. C. Hare, 145; a.ni see Browny. Jones, 355; Williams v. Coade, 10 Ves. 1 Atk. 188 ; Sidney v. Shelley, 19 500 ; IHghy v. Legard, cited Cruse Ves. 352; Broohman v. Hales, 2 V. v. Barley, 3 Cox's P. W. 22, note & B, 45. (1) ; Sutcheson v. Hammond, 3 B. (6) Carrich v. Errington, 2 P. W. C. G. 128 ; Davenport v. CoUrmmy 361; Arnold Y. Chapman, 1 Ves. 12 Sim. 610 ; MucklestonY. Brown, 108 ; Tregonwell v. Sydenham, 3 6 Ves. 63. Dow. 194 ; Jones v. Mitchell, 1 S. & [d) See Langham v. Sanford, 17 S. 290 ; Gibhs v. Mumsey, 2 V. & Ves. 442 ; S. C. 19 Ves. 643 ; Mach- B. 294 ; Page v. Leapingwell, 18 field v. Careless, 2 P. W. 158 ; Ves. 463 ; Pilkingtnn v. Boughey, Gladding v. Yapp, 5 Mad. 69 ; White 12 Sim. 114 ; and see Coohe r. The v. Evans, 4 Ves. 21 ; Walton v. Stationers' Company, 3 M. & K. Walton, 14 Ves. 322. 262. If an estate was devised to A. CH. vm. s. 1.] HESULTING TRUSTS. 183 exhaust the proceeds, the part that remains unapplied, whether to the heir, not the estate has been actually sold or not, will result to the testator's heir, and not to his next of kin (a). And the whole or surplus will result in this manner, though the proceeds of the realty he blended with personal estate in the formation of one common fund (6). And even an express declaration that the proceeds bi the sale shall be considered as part of the testator's per- sonal estate will not prevent the operation of the rule (c) ; for a direction of this kind is construed to extend to the purposes of the will only, and not to give a right to those who claim, as the next of kin, by operation of law. In the case of Phillips v. Phillips (d) before Sir J. Leach, the proceeds of the sale were directed to be taken as part of the testator's personal estate, and were blended into one fund with the personalty, and a legacy which had lapsed was decreed in favour of the next of kin ; but the opinion of the profession was always against the decision ; and it is observable, that ColUns v. Wakeman (e), the only authority precisely in point, was not once adverted to in (a) Starhey v. Brooks, 1 P. W. 390; Randall v. Boohey, Pr. Ch. 162 ; Sfonehouse v. Evelyn, 3 P. W. 252 ; Robinson v. Taylor, 2 B. C. C. 589 ; Cruse y. Barley, 3 P. W. 20 ; Buggins v. Yates, 2 Eq. Ca. Ab. 508 ; Mill v. Coeh, 1 V. & B. 173 ; City of London v. Garway, 2 Vern. 571 ; Nicholls v. Crisp, cited Croft V. She, 4 Ves. 65 ; Diyhy v. Legard, 2 Dick. 500 ; Spink v. Lewis, 3 B. C. C. 355 ; Chitty v. Parker, 4 B. C. C. 411 ; Collins v. Wakeman, 2 Ves. jun. 683 ; Jlowse v. Chapman, 4 Ves. 542 ; Williams v. Coade, 10 Ves. 500 ; Berry v. Ushtx, 11 Ves. 87 ; Gills v. Rumsey, 2 V. & B. 294 ; Maugham v. Mason, 1 V. & B. 410; Wilson v. Major, 11 Ves. 205; Wright v. Wright, 16 Ves. 188 ; Hooper v. Goodwin, 18 Ves. 156 ; Jones v. Mitchell, 1 S. & S. 290 ; Page v. Leapingwell, 18 Ves. 463 ; Gihls v. Ougier, 12 Ves. 416; M'Cleland v. Shaw, 2 8ch. & Lef. 545 ; Mogg v. Hodges, 2 Ves. 62; Byrey. Marsden, 2 Keen. 564; Ex parte Pring, 4 Y. & C. 507 ; Watson V. Hayes, 5 M. & Cr. 125 ; Davenport v. Coltman, 12 Sim. 610; Bunnett v. Foster, 7 Beav. 540 ; Marriott v. Turner, 20 Beav. 557, &o. Note, Countess of Bristol v. Hungerford, 2 Vern. 645, is misre- ported — see Rogers v. Rogers, 3 P. W. 194, note (C). (J) Ackroyd v. Smithson, 1 B. C. C. 503 ; Jessopp v. Watson, 1 M. & K. 665 ; Salt v, Chattaway, 3 Beav. 576. (c) Collins v. Wakeman, 2 Ves. jun. 683; and seeAmphletty. Parke, 2 R. & M. 226. Ogle v. Cook, cited in Fletcher v. Ashlurner, 1 B. C. C. 602, and in Ackroyd v. Smithson, id. 513, was for a long time con- sidered contra ; but in Collins v. Wakeman, 2 Ves. jun. 686, Lord Loughborough had the Eeg. Lib. searched, and it was found the point had been left undecided. (d) 1 M. & K. 649. (e) 2 Ves. jun. 683. 184 RESULTING TRUSTS. [cH. vin. s. 1; Direction for sale, and tliat the proceeds shall be per- sonal estate. Fitch V. Weber. Whether the in- terest results as real or personal estate. Smith V. Claxton. this case, either by the bar or the bench. The case has repeatedly received the express disapprobation of the Court (a)j and has at length been overruled (&). If a testator direct the proceeds of the sale to be taken as personal estate, and nothing more is said, then, as every part of the will ought, if possible, to have an operation, the meaning of the testator might be thought to be, that the realty should be converted into personalty for the benefit of the next of kin j and in The Countess of Bristol v. Hungerford (c), where the testator directed the proceeds of the sale to be taken as per- sonal estate, and go to his executors, to whom he gave SOL a-piece, it is said the next of kin were declared entitled. It appears, however, that the two next of kin were also the cO' heirs, and therefore as utrdque via data the same persons would claim, it was obviously unnecessary to determine the question. It has been decided in a late case that even if the testator say " nothing shall result to the heir-at-law," yet a bequest to the next of kin is not sufficiently implied, but the heir-at-law will take in spite of the intention to the contrary (d). If the execution of the trust require the estate to be sold, but the purposes of the trust do not exhaust the proceeds, the part that is undisposed of will result to the heir in the character of personalty, and, though the sale Was not actually effected in his lifetime, will devolve on his executor (e) : but if the trusts declared by the testator do so entirely fail as not to call for a conversion, then the whole estate will result to the heir as realty, and descend upon his heir (/), though the estate may by the mistake of the trustees have been actually sold (g). The doctrines upon this subject have been very clearly stated («) See Fitch v. Weber, 6 Hare, 145 ; Shallcross v. Wright, 12 Beav. 505; Flint v. Warren, 16 Sim. 124. (5) Taylor v. Taylor, 3 De G. Mae. & Gord. 190. (c) Pr. Ch. 81 ; & 0. 2 Vern. 645 ; correotfd from Keg. Lib., in Rogers V. Rogers, 3 P. W. 194, note (C) ; and see >Sir W. Bassets case, cited Bayley v. Powell, 2 Vern. 361. {d) Fitch V. Weber, 6 Hare, 145, and compare Johnson v. Johnson, i Beay. 318. (e) Hewitt V. Wright, 1 B. C. C. 86 ; Wright v. Wright, 16Ves.,18&; Smith V. Claxton, 4 Mad. 484; Dixon V. Dawson, 2 S. & St. 327 ; Jessopp V. Watson, 1 M. & K. 665 ; Hatfield Y. Pryme, 2 Coll. 204. (/) Smith V. Claxton, ubi supra ; Chitty V. Parker, 2 Ves. jun. 271. {g) Davenport v. Coltman, 12 Sim. 610. CH. Vm. S. l.J RESULTING TRUSTS. 185 by Sir John Leach in the case of Smith v. Claxton (a). A testator by one devise had given an estate to trustees and their heirs upon trust to sell, and out of the proceeds to pay his funeral expenses, debts, and legacies, and, subject thereto, upon trust to pay the surplus to his wife. By a second devise he had given an estate to the same trustees and their heirs, upon trust to pay the rents to his wife for life, and after her death to Thomas for life, and after his death upon trust to sell and divide the proceeds amongst the children of Thomas, and, faiUng such children, between Joseph and Eobert in equal shares. By a third devise he had given an estate to the same trustees and their heirSj upon trust, subject to an annuity, for Eobert for hfe, and after his decease upon trust to sell and apply the produce for the benefit of the children of Eobert, and, failing such children, upon trust for Thomas and Joseph in equal shares. The wife died in the lifetime of the testator ; Eobert also died in the lifetime of the testator without issue ; Thomas survived the testator, but died a few months after, having had an only child, who had died in the testator's life- time. Sir John Leach said — " Where a devisor directs his real estate to be sold, and the produce to be applied to par- ticular purposes, and those purposes partially fail, the heir-at- law is entitled to that part of the produce which in the events is thus undisposed of. The heir-at-law is entitled to it because the real estate was land at the devisor's death, and this part of the produce is an interest in that land not effectually devised, and which therefore descends to the heir. A devisor may give to his devisee either land or the price of land at his pleasure, and the devisee must receive it in the quality in which it is given, and cannot intercept the purpose of the devisor. If it he the purpose of the testator to give land to the devisee, the land will descend to his heir ; if it be the piu'pose of the devisor to give the price of land to the devisee, it will, like other money, be part of his personal estate. Under every will, when the question is, whether the devisee, or' the heir failing the devisee, takes an interest in land as land or money, the true inquiry is, ■whether the devisor has expressed a purpose, that, in tlie events (a) 4 Mad. 484. 186 RESULTING TRUSTS. [CH. Vm. S. 1. which have happened, the land shall be converted into money. Where a devisor directs his land to be sold and the produce divided between A. and B., the obvious purpose of the testator is, that there shall be a sale for the convenience of division, and A. and B. take their several interests as money, and not land ; and if A. die in the lifetime of the testator, and the heir stands in his place, the purpose of the devisor still apphes to the case, and the heir shall take the share of A., as A. himself would have taken it, as money, and not land : but if A. and B. both die in the lifetime of the testator, and the whole interest in the land descends to the heir, the question would then be, whether the devisor can be considered as having expressed any purpose of sale applicable to that event, so as to give the interest of the heir the quality of money. The obvious purpose of the testator being that there should be a sale for the con- venience of division between his devisees, that purpose could have no application to a case in which the devise wholly failed, and the heir would therefore take the whole interest as land. To apply these principles to the present case : under the first devise, the estate is directed to be sold, and the produce appUed in aid of the personal estate in payment of debts and legacies, and the surplus is given to the wife. The debts and legacies are fully paid out of the personal estate, and the wife dies iu the testator's lifetime. The whole interest thus resulted to the heir, and the devisor's purpose of sale, being plainly for a distribution according to the will, has no application to the events which have happened, and the heir took the estate as land, which descends in that character to his heir. Under the second devise, there is an obvious purpose of sale for the con- venience of division between the sons of Thomas, or, failing them, between Joseph and Robert. The only son of Thomas, and the devisor's son Eobert, both die in the devisor's lifetime, and the heir becomes entitled by lapse to the moiety of the produce intended for Robert. The purpose of sale for con- venience of division still applies to the events which have happened, and this moiety is not land, but personal estate of the heir. Under the third devise, there is the same obvious purpose of sale : first, for a division between the children of Eobert, and, failing them, between the heir and Joseph. There CH. Vni. S. 1.] RESULTING TRUSTS. 187 were no children of Eobert, but the purpose of sale remains, and this moiety also is not land, but personal estate of the heir." Secondly. If a testator bequeath money to be laid out in a Money to he laid purchase of land, to be settled to uses which either wholly or s^ts to the exe- partiaUy fail to take effect, the undisposed of interest in the ''^*™- money, or estate if purchased, will result to the testator's executor, upon trust for his next of kin. Should the heir advance a claim, it must be either in his character of heir or as purchaser. It cannot for a moment be contended, that he can establish a claim in the character of heir, for, to assert such a title, he must prove himself to be the heir of the person last seised, and here by the terms of the question the testator had no seisin (a). " The conversion of the estate," said Lord Northington, " is to be after the testator's death, and whoever takes under the settlement directed to be made will take a new-created interest, which never did, and never was intended to vest in the testator, and therefore he cannot take but as purchaser (6)." But if the heir is to claim as purchaser, he must show that the will contains a bequest to him either expressly or by implication. Now, he cannot main- tain that any express gift was made in his favour, for the supposition is, that the testator has declared no intention ; nor is it easy to discover upon what ground any implied gift can be supported, for, if implied at aU, it must be so from some- thing said in the will; but if a testator merely direct lOOOZ. to be laid out in lands, to be settled on A. for life, the injunction plainly involves nothing more than what is actually expressed. To take the converse of this case, should a testator devise real estate to be sold, and direct the interest of the proceeds to be paid to A. for life, it is undoubted law, that the remainder of the stock would result to the heir, and is not by implication a bequest to the executor (c). It may be said, that a testator is supposed so to favour the heir, that, where money is to be (a) Under tlie late InHeritanoe Act, (J) Robinson v. Knight, 2 Ed. 3 & 4 W. IV. 0. 106, the title is to 159. be deduced from tlie ^^ purchaser," (c) Wilson v. Major, 11 Ves. tut the argument in the text ia 205. ee, IdYea.'Ul. Vend, and Puroh. Wo. 24 ; Moyse y. (e) Morley v. Bird, 3 Ves. 631, Gyles, 2 Vern. 385 ; York v. Eaton, per Lord Alvanley ; Rigden v. Val- 2 Freem. 23 ; Rigden v. Vallier, 3 lier, 3 Atk, 734, per Lord Hard- Atk. "735, per Lord Hardwicke; wicke; .4«o». case, Carth. 16; Part- Hayes Y. Kingdome, 1 Vern. 33 ; ridge v. Pawlet, 1 Atk. 467 ; Petty Aveling v. Knipe, 19 Ves. 444, per v. Styward, 1 Ch. Re. 57 ; Tickers Sir W. Grant ; Lake v. Gibson, 1 v. Cowell, 1 Beav. 529. Eq. Ca. Ab. 291, per Sir Jos. Jekyll ; 203 PURCHASES IN NAMES OF STEANGEES. [CH. VIH. S. 2. Trading. Subsequent im- provement by Unequal contri- bution. Copyhold grant to A. for life, and fine paid by B., who on B.'s death shall have it? common, of a mortgage term, purchased the equity of redemp- tion to them and their heirs, it was held the nature of the inheritance should follow that of the term {a). And in all cases of a joint undertaking or partnership, by way of trade, or upon the hazard of profit and loss, the jus accreseendi is excluded and the survivors are trustees, in due proportions, for the representatives of those who are dead (6). And where the purchasers pay equally, and take a joint estate, and one after- wards improves the property at his own cost, he has a lien upon the land pro tanto for the money he has expended (c). Should the contribution of the parties be unequal, then in all cases a trust results to each of them in proportion to the amount originally subscribed {d). If A. discharge the fine on a grant of copyholds to B., C, and D. successively for their lives, the equitable interest will result to A. ; but should A. die intestate, on whom will the remaining equity devolve ? Estates pur autre vie in copyholds were not within the Statute of Frauds (e), nor the 14 Gr. 3. c. 20. s. 9. (/), and before the late Wills Act the questions were asked, Can the heir take an estate which has no descendible property ? or can the executor claim as assets what is not of the nature of personalty ? or shall the tenants of the legal estate become the beneficial proprietors in the absence of any one to advance a better title ? In Glarh v. Danvers (g) the plaintiff was both heir and executor of the equitable owner, and was decreed the benefit of the trust. In Howe v. Howe (h) the administratrix was held entitled, and so it was allowed in Bundle V. Rundle (i), and was determined in Withers v. Withers {k), and was subsequently sanctioned by the high authority of Lord (a) Bdwards v. Fashion, Pr. Oh. 332 ; and see Aveling v. Knipe, 19 Ves. 444. (5) Lahe v. Gibson, 1 Eq. Ca. Ab. 290 ; S, C. (by name of Lake v. Craddoeh) affirmed 3 P. W. 158; Jeffereys v. Small, 1 Vern. 217 ; Elliot v. Brown, cited Jackson v. Jackson, 9 Ves. 597 ; Jjyster v. Dolland, 1 Ves. jun. 434, 435, per Lord Thurlow ; and see York v. Eaton, 2 Freem. 23. (c) Lake v. Oibson, 1 Eq. Ca. Ab. 291,per Sir J. Jekyll. {d) Lake v. Oibson, 1 Eq. Ca. Ab. 291, per Sir J. Jekyll; JRigden v. Vallier, 3 Atk. 735, per Lord Hard- wioke. (e) 29 Car. 2. o. 3. s. 12. (/) Eundle v. Rundle, Amb. 152. {g) 1 Ch. Ca. 310. [h) 1 Vern. 415. (i) 2 Vern. 252, 264; S. C. Amb.152. [k) Amb. 151. CH. Vni. S. 2.] PURCHASES IN NAMES OF STEANGEES. 203 Mansfield. "It is always presumed," said his Lordship, "that whoever pays the fine takes for his own use and benefit, and does not mean to serve the others, who are mere nominees to give as large an estate as by the rules of the manor he can have ; and as his personal estate is diminished by the payment of the fine- money his personal representative is entitled to the advantage resulting from it" (a). Now_by the late Wills Act (1 V. c. 26. s. 6.) it is declared, that an estate pur autre vie in copyhold shall, if not disposed of by the will of the grantee, go to his personal representative. The Court cannot imply a resulting trust in evasion of an No resulting act of parliament, and therefore if A., on purchasing a ship, cha.se of a ship in take the transfer in the name of B., the complete ownership, ^t-^^nger's name. both legal and equitable, is in B. (h) In order to enforce the navigation laws, and secure to British subjects the exclusive enjoyment of British privileges, the Eegistry Acts require an exact history to be kept of every ship, how far throughout her existence she has been British built and British owned, and if implied trusts were permitted the whole intent of the legisla- ture might be indirectly defeated (c). It was at first contended that the acts were not meant to apply to transfers by operation of law ; nor are they to transfers by mere operation of law that could not be effected in the mode prescribed by the statutes, as in the transfer to executors, to assignees of bankrupts, &c. ; but they do reach the case of transfers not by mere operation of law, but connected with the acts of parties, and arising ex contractu (d). Upon the same principle, while the papistry laws were in Resulting tmsts force, if A., a papist, had purchased an estate in the name of acts. B., the Court could not have presumed a resulting trust to A., which, as soon as raised, would have become forfeitable to the state (e). And so if a purchaser take a conveyance in the name of In purchases for giving Totes. (a) Goodright v. Hodges, 1 Watk. (c) See Exparte Yallop, 15 Ves. Cop. 228 ; and see Rumholl v. Rum- 66, 69. loll, 2 Ed. 15. {d) See Exparte Yallop, 15 Ves. (J) Exparte Yallop, 15 Ves. 60 ; 68 ; Exparte Soughton, 17 Ves. Exparte Houghton, 17 Ves. 251 ; 254. Camden y. Anderson, 5 T. E. (e) See Redington v. Redington, 709. 3 Ridg. 184. 204 PURCHASES IN NAMES OF STRANGERS. [CH. Vm. S. 2. Parol evidence aa regards Statute of Frauds. Purchase by aa agent. another, with the view of giving him a vote for a member of parliament, he cannot afterwards claim the beneficial owner- ship, for the operation of such a right would render the original purchase fraudulent {a). As the Statute of Frauds (6) extends to creations or de- clarations of trusts by parties only, and does not affect, indeed expressly excepts, trusts arising by operation or construction of law, it is competent for the real purchaser to prove his pay- ment of the purchase-money by parol, even though it be otherwise expressed in the deed. In Kirk v. Webb (c) it was argued " there could be no trust unless there were a declaration in the deed to that purpose, for by the statute there could be no trust unless it were ■declared in writing; that if it were a resulting trust, it was made so by parol proof, which was directly contrary to the statute, and would open a door to all the mischiefs it was intended to prevent ; that it would introduce an utter un- certainty into all men's titles, for the best title might be spoiled by proving the purchase-money to be another person's ; " and the Court refused to admit the evidence, and the decision was followed in subsequent cases (d) ; however, the doctrine, though supported by numerous precedents, has since been clearly overthrown by the concurrent authority of the most distinguished judges (e). The rule as at present established will not warrant the admission of parol evidence, where an estate is purchased by an agent, and no part of the consideration is paid by the employer ; for though an agent is a trustee in equity, yet the (a) Groves v. Groves, 3 Y. & J. 163, see 172, 173. (5) 29 Car. 2. c. 3. (c) Free. Ch. 84. (d) Heron v. Seron, Pr. Ch. 163 ; ,S. C. Freem. 248; Skett v. Whit- more, Freem. 280 ; Kinder v. Miller, Pr. Ch. 172 ; and see Halcott v. Markant, Pr. Oh. 168 ; Hooper v. Eyles, 2 Vern. 480 ; Newton v. Preston, Pr. Ch. 103 ; Cox v. Bate- man, 2 Ves. 19; Ambrose \. Ambrose, 1 P. W. 321 ; Deff v. Deg, 2 P. W. 414. The earlier case of Gascoigne V. Thwing, 1 Vern. 366, accorded with the modern doctrine. (e) Ri/all V. Ryall, 1 Atk. 59; S. C. Amb. 413; Willis v. Willis, 2 Atk. 71 ; Bartlett v. Pichersgill, 1 Ed, 515 ; Lane v. BigUon, Amb. 409 ; Knight v. Pechey, 1 Dick. 327; S. a cited from MS. 3 Vend. & Purch. 258 ; Groves v. Groves, 3 Y. & J. 163 ; Lench v. Lench, 10 Ves. 517. CH. Vni. S. 2.] PUECHASES IN NAMES OP STEANGERS. 205 trust is one arising ex contractu, and not resulting by operation of law (a). The agent may be indicted for perjury in denying his character, and may be convicted, yet the Court has no power to decree the trust (&). The employer, therefore, as he cannot profit by the conviction, is not prevented by interest from being a witness against the agent (c). And parol evidence, where admitted, must prove the fact Parol evidence very clearly (d) ; though no objection lies against the reception of mere circumstantial evidence, as that the circumstances of the pretended purchaser were so mean as to make it im- possible he should have paid the purchase-money himself (e). Should the nominal purchaser deny the trust by his answer, Trust may be there seems to be no reason why parol evidence should not be defoidant'T de'- admitted to establish the fact against him ; for, before the "*'• Statute of Frauds, parol evidence was undoubtedly admissible, and, as trusts by operation of law are expressly excepted from the statute, by what rule is parol evidence to be excluded (/) ? But the solemnity of the defendant's oath will of course require a considerable weight of evidence to overcome its impression (g). It is laid down by Mr. Sanders, that "if a person at his Of parol evidence death leave any papers disclosing the real circumstances of the of the nominal case, the Court will raise the trust even against the express p^'=''*^^''- declaration of the purchase-deed (h)." We have seen that, according to the latest authorities, parol evidence is ia ordinary (o) Bartlett r. Pichersgill, 1 Ed. v. Lench, 10 Ves. 518 ; Wilkine v. 515; Mmtel v. Hutchinson, 1 Dick. Stevens, 1 Y. & C. Ch. Ca. 431. 44 ; Lamas v. Bayly, 2 Vem. 627 ; (/) In Bartlett v. Pichersgill, 1 Atkins v. Howe, Mose. 39; S. C. Ed. 515, where the defendant denied Cas. Dom. Proo. 1730. the trust, Lord Henley said, if the (6) Bartlett v. Pickersgill, 1 Ed. plaintiff had paid any part of the 517. purchase-money, he would have ad- (c) King v. Boston, 4 East, 572. mitted the evidence ; and see Ed- (d) Oascoigne v. Thwing, 1 Vem. wards v. Pike, 1 Ed. 267. Mr. 366 ; Halcott v. Markant, Pr. Ch. Sanders (Uses and Trusts, c. 3. s. 7. 168 ; Willis v. Willis, 2 Atk. 71 ; div. 2 ) dissents from the doctrine ; Goodright v. Hodges, 1 Watk. Cop. hut the authorities cited hy him to 229, per Lord Mansfield ; Groves v. the contrary do not appear to war- Crowes, 3 Y. & J. 163 ; and see rant his conclusion. Pider v. Kidder, 10 Ves. 364. {g) See Cooth v. Jackson, 6 Ves. 39. (e) Willis V. Willis, 2 Atk. 71, [h) CJses and Trusts, c. 3. s. 7. per Lord Hardwicke ; and see Bench div. 2. 200 PUECHASES IN NAMES OF STRANGERS. [CH. Vni. S. 2. cases admissible against the language of the purchase-deed; but, if Mr. Sanders's opinion to the contrary {a) were well founded, it does not appear how mere papers would satisfy the requisitions of the statute; for, to have that effect, the writings ought also to be signed by the party. The cases of Ryall V. Byall (&) and Lane v. Dighton (a), which are cited for the position, do not at all turn upon the distinction suggested. It is observed by the same writer, that, " after the death of the supposed nominal purchaser, parol proof alone can in no instance be admitted against the express declaration of the deed " (d) ; but the cases relied upon in support of this doc- trine (e) do not distinguish between proofs in a person's hfe- time and after his decease : they are certainly authorities for the exclusion of parol evidence universally, but in this respect, as before noticed, they have been subsequently overruled. It would seem, upon principle, that the death of the nominal purchaser cannot affect the admissibility of parol testimony, whatever effect it may have in detracting from its weight. Of following In the question, whether a purchase in the name of a third trust-money into ,,.,,, . . •■,■■,, land. person can be estabushed by parol testimony is also mvolved the question, whether trust-money can be followed into land by parol. A purchase with trust-money is virtually a purchase paid for by the cestuis que trust ; and on the ground that such a purchase is a trust resulting by operation of law, and not within the purview of the Statute of Frauds, it has been settled that parol evidence is clearly admissible (/). The resulting On the other hand, as the trust results to the real purchaser rebutted by by presumption of law, which is merely an arbitrary impli- P^™'" cation in the absence of reasonable proof to the contrary, the nominal purchaser is at liberty to rebut the presumption by , (a) Uses and Trusts, c. 3. s. 7. id. 168; Kinder y. Miller, id. 172; div. 2. S. C. 2 Vera. 440 ; Deg v. Beg, 2 (J) Amb. 413. P. "W. 414, per Lord King. (c) Amb. 409. (/) Lench v. Lench, 10 Ves. 517, {d) Uses and Trusts, c. 3. s. 7. per Sir W. Grant ; Byall v. Byall, div. 2. 1 Atk. 59 ; S. C. Amb. 413 ; Lane (e) Kirh v. Wehh, Pr. Ch. 84 ; v. Dighton, Amb. 409 ; Balgney v. 8. C. Freem. 229 ; Heron v. Heron, Hamilton, Amb. 414 ; Trench v. Pr. Ch. 1G3 ; Hakott v. Markanf, Ilarrinon, 17 Sim. 111. -t circumstance of chaser, is held to operate by rebutting the resulting trust ; and evidence. it has been determined in so many cases that the nommee being a child shall have such operation as a circumstance of evidence, that it would be disturbing land-marks if we suffered either of these propositions to be called in question ; — namely, That such circumstance shall rebut the resulting trust ; and, That it shall do so as a circumstance of evidence. I thinlc it would have been a more simple doctrine, if the children had been considered as purchasers for valuable consideration. This way of considering it would have shut out all the circumstances of evidence which have found their way into many of the (a) This ground for the doctrine under the late Inheritance Act, takes no longer exists — since the father, next after brothers and sisters. CH. Vm. S. 2.] PURCHASE IN NAME OP A CHILD. 209 cases, and -would have prevented some very nice distinctions, and not very easy to be understood. Considering it as a circumstance of evidence, there must, of course, be evidence admitted on the other side. Thus it was resolved into a question of intent, which was getting into a very wide sea with- out very certain guides "(a). The difficulties arising from the light in which the question has been thus viewed will amply appear from the numerous refined distinctions upon which the Court from time to time has been called upon to adjudicate. ■ 1. A distinction was formerly taken where the child was an Case of the cMd infant (h) ; for a parent, it was said, could scarcely have intended to bestow a separate and independent provision upon one utterly incapable of undertaking the management of it. But still more improbable was the supposition that an infant should have been selected as a trustee (c), and accordingly the notion has long since beien overruled {d) ; nay, the infancy of the child is now looked upon as a circumstance particularly favourable (e). 2. It was objected, that a reversionary estate, from the Purchase of uncertainty of the time when it would fall into possession, was estate,'^^'™*'^ not such a kind of interest as a parent would prudently pur- chase by way of provision for a child; but mere proximity or remoteness of the enjoyment, whether the reversion be ex- pectant on the decease of the parent or a stranger, has since been held clearly insufficient to countervail the general rule (/). 3. A purchase in the joint names of the father and son has Purchase in joint met with objections ; " for this," observes Lord Hardwicke, and son. " does not answer the purpose of an advancement, as it entitles the father to the possession of the whole tiU a division, and to a moiety absolutely even after a division, besides the father's [a) Dyer v. Dyer, 2 Cox, 94 ; C. Ch. Ca. 9 ; Christy v. Courtenay, S. C. 1 Watk. Cop. 218. 13 Beav. 96 ; Collinson v. Collinson, (J) 2FreerQ. 128, o. 151 ; and see 3 De G. M. & G. 403; Mumma v. JBinion v. Stone, id. 169; S. C. Mumma, 2Yein. 19; Finchv. Mnch, Nels. 68. 15 Ves. 43, &c. (e) See supra, p. 39. (e) Feame's P. W. 327. {d) Lamplughy. Lamplugh, 1 P. (/) Ti,umholly.Iiumholl,'2,'&\.\1, W. Ill; Lady Gorge's case, cited per liordH-enlej; Finchv. Finch, 15 2SW.600; SkeatsY.Skeats,2Y.& YesAS; MurlessY.FranJclin,18w.l3. SlO yUECHASE IN NAME OF A CHILD. [CH. VHI. S. 2. taking a chance to himself of heing a survivor of the other moiety : nay, if the son die during his minority, the father would he entitled to the whole hy survivorship, and the son could not prevent it hy severance, he being an infant " (a). But surely no improvidence can he justly charged on a parent who so settles his estate, that if the son die a minor it shall revert to himself; that until the marriage of the son or other pressing occasion, the father and son shall possess an equal interest during their joint lives, with the right of survivorship as to the whole; that the son shall have the power, when necessary, of settling one moiety of the estate, hut shall leave the other moiety to his parent. Whatever opinion may be entertained as to the principle, the doubts above expressed by Lord Hardwicke can scarcely be maintained in opposition to repeated decisions (&). A purchase in the joint names of the son and a stranger is less favourable to the supposition of an intended advancement (c) ; but even here the right of the child is now indisputably established (d). However, the advancement cannot be more extensive than the legal estate in the child (e) ; and therefore the stranger, quatenus the legal estate vested ia him, must hold upon trust for the father (/). Purcbaseofcopy- 4_ It is the custom, in many manors, to make grants for holds granted for . _ ' J ' o lives successive, lives Successive. Should a father pay the fine upon a grant to himself and his two sons, shall this be held an advancement or a trust ? Upon the difficulty of this case. Lord Chief Baron Eyre has remarked, " When the lessees are to take successive, it is said, that as the father cannot take the whole in his name, but must insert other names in the lease, then the children shall be trustees for the father. And to be sure, if the circum- stance of the child being the nominee is not decisive the other way, there is a great deal of weight in this observation. There may be many prudential reasons for putting in the hfe (o) Stileman v. Ashdown, 2 Atk. (d) Lamplugh v. Lamplwgh, 1 P. 480; and see Pofe V. Pofe, 1 Ves. 76. "W. Ill; Kingdome v. Bridges, 2 .{b) Scroope v. Scroops, 1 Ch. Ca. Vein. 67. 27 ; Sack v. Andrews, 2 Vern. 120 ; (e) See JRumboUy. SumhoU, 1 Ed. Grey v. Grey, 2 Sw. 599, and oases 17. there cited. (/) See Kingdome v. Bridges, 2 (c) See Hayes v. Kingdome, 1 Vern. 67 ; Lamplttgh v. Lampl^h, Vern. 34. 1 P. W. 112. CH. Vm. S. 2.] PURCHASE IN NAME OP A CHILD. 211 of a child in preference to any other person; and if in that case it is to be collected from circumstances whether an advancement was meant, it will be diflacult to find such as will support that idea. To be sure, taking the estate in the name of a child, which the father might have taken in his own, affords a strong argument of such an intent ; but where the estate must necessarily be taken to him in succession, the inference is very different " (a). And in accordance with this reasoning was decided the case of Dickinson v. Shaw {b) ; but ia Dyer v. Dyer (a) the notion was overruled, as savouring too much of refinement ; and so at the present day it must be considered as settled (d). 5. It may happen, that the child in whose name the purchase ChUd already is taken may have been already provided for, a circumstance ^™" ^ of very considerable weight in rebutting the presumption of further advancement. " The rule of equity," said Lord Chief Baron Eyre, " as recognised in other cases, is, that the father is the only judge on the question of a son's provision, and therefore the distinction of the son being provided for or not is not very solidly taken " (e). However, the distinction has been relied upon in several cases (/), and has been repeatedly recognised by the highest authorities (g). At the same time, jt must be noticed that the prior advancement of the child has always been accompanied with some additional circumstance that tended to strengthen the presumption that no further pro- vision was designed (h) ; and Lord Loughborough laid down the general rule to be, that a purchase made by a father in the name of a son, already fully advanced and established by him, not was, but might be a trust for the father (i). (o) Dyer v. Dyer, 2 Cox, 95 ; S. {g) See Grey v. Qrey, 2 Sw. 600 ; C. 1 Watk. Cop. 221. S. C. Fincli, 341 ; Loyd v. Mead, (6) Cited 2 Cox, 95 ; 1 Watk. 1 P. W. 608 ; Redington v. Beding- Cop. 221. ton, 3 Eidg. 190 ; GUb. Lex Prat. (c) 2 Cox, 92 ; 1 Watk. Cop. 216. 271. [d) Swift V. Davis, 8 East, 354, (A) Pole v. Pole, Elliot v. Elliot, note (a) ; Fearne's P. W. 327 ; ubi supra ; and see Grey v. Grey, ! V. Skeats, 2 T. & C. Ch. Ca. 9. 2 Sw. 600 ; Gilb. Lex Prset. 271. (e) Dyer v. Dyer, 2 Cox, 94 ; S. {i) Redington v. Redington, 3 C. 1 Watk. Cop. 220. Ridg. 190 ; and see Sidmouth v. (/) Elliot V. Elliot, 2 Ch. Ca. Sidmouth, 2 Beav. 456. 231; Pole y. Pole, 1 Ves. 76. 312 PURCHASE IN NAME OF A CHILD. [CH. Vm. S. 2. Whether child considered as provided for ■when adult. Previous pro- vision in part. EevBrsionary estate not a pro- vision. Case of father holding the possession, and child an infant. Son signing re- ceipts for rents in father's name. Chief Baron Eyre's opinion. Lord Notting- ham's opinion. It is said by Lord Chief Baron Gilbert, that " if a father purchase in the name of a son who is of full age, which by our law is an emancipation out of the power of the father, there if the father take the profits, &c. the son is a trustee for the father " {a). But for this opinion there appears to be not the slightest ground (&). The provision must exist not by a fiction of law but bond fide and substantially ; as, said Lord Nottingham, "if the son be married in his father's lifetime, and with his father's consent, and a settlement be thereupon made, whereby the son appears to be fully advanced, and ia a manner emancipated " (c). A provision in part will not have the effect of rebutting the presumption of advancement id) ; and the settlement of a reversionary estate upon the son will not be deemed a provision, for he might starve before it fell into possession (e). 6. Suppose the father continues, after the purchase, in the per- ception of the rents and profits, and exerts other acts of owner- ship, then, if the son be an infant, it is said, as the parent is the natural guardian of the child, the perception of the profits or other exercise of dominion shall be referred to that ground, and the right of the son shall not be prejudiced, and so in numerous cases the point has been adjudged (/) ; and it will not vary the case if the son sign receipts in the name of the father> for during his minority he could give no other receipts that would discharge the tenants who hold by lease from the father if). Lord Chief Baron Eyre has expressed himself dis- satisfied with this reasoning in reference to the guardianship, and puts the question, " If the father take the rents as guardian of his son, would the Court sustain a bUl by the son against the father for these rents ? He should think it pretty difficult to succeed in such a bill" iji). Lord Nottingham has referred (a) Lex Pra3t. 271. [h) In OreyY. Grey (uhi supra), for instance, the son was of age. (c) Grey v. Grey, 2 Sw. 600. {d) lb. ; Redington v. Redington, 3 Ridg. 190. [e) Lamplugh v. Lamplugh, 1 P. W. HI. (/) Gorge's case, cited Cro. Car. 550, and 2 Sw. 600; Mumma v. Mumma,2YeTn.l9;Tayhr-v.Taylor, 2 A.tk. 386 ; Lamplugh v. Lamplugh, 1 P. W. Ill ; and see Stileman v. Ashdown, 2 Atk. 480; Loyd v. Read, 1 P. "W. 608 ; Christy t. Courtcnay, 13 Beav. 96. [g) Taylor v. Taylor, 1 Atk. 386. (h) Dyer v. Dyer, 2 Cox, 94; 8. C. 1 Watk. 220. CH. Vni. S. 2.] PURCHASE IN NAME OF A CHILD. 213 the decisions to a higher ground. " Some," he said, " have taken the difference, that where the father has colour to receive the rents as guardian, there perception of profits is no evidence of a trust : otherwise it would be if the perception of profits were without any such colour. Plainly the reason of the resolutions stands not upon the guardianship, but upon the presumptive advancement, for a purchase in the name of an infant stranger with perception of profits, &c. will be evidence of a trust " (a). 7. Suppose the father purchases in the name of a son who Case of the father is adult, and then, without contradiction from the son, takes session, and son the rents and profits, and exerts other acts of ownership ; ^^^^' even here it has been determined the right of the son will prevail. A stronger instance can hardly be conceived than occurred in the very leading case of Grey v. Grey (b), before Grey v. Grey. Lord Nottingham. We have his Lordship's own manuscript of this case, and the circumstances are thus stated : — " The evidence to prove this purchase in the name of the son to be a trust for the father consists of, 1st, father possessed the money; 2dly, received the profits twenty years; 3dly, made leases ; 4thly, took fines ; 5thly, enclosed part in a park ; 6thly, built much ; 7thly, provided materials for more ; 8thly, directed Lord Chief Justice North to draw a settlement; 9thly, treated about the sale of it " (c) : yet, for all this, it was decided, after long and mature deliberation, that the considera- tion of blood and affection was so predominant, that the father's perception of rents and profits, or making leases, or the like acts, which the son, in good manners, did not con- tradict, could not countervail it {d). The propriety of this decision, upon principle independently of authority, has been called into question. " Admitting," it is said, " that they are subsequent acts, whereas the intention of the father in taking the purchase in the son's name must be proved by concomitant acts, yet they are pretty strong acts of ownership, and assert the right, and coincide with the possession and enjoyment "(e). (a) Grey v. Grey, 2 Sw. 600. {d) See 2 Sw. 599. [b] 2 8w. 594 ; Finch, 338. (e) Dijer v. Dyer, 2 Cox, 95 ; S. C. (e) 2 Sw. 596. 1 Watk. Cop. 220. . 214 PUECHASE IN NAME OF A CHILD. [CH. VHI. S. 2. Evidence from facts to rebut the presumption. Evidence from parol declara- tions. It might perhaps be successfully contended, that Lord Not- tingham's determination was founded upon the more enlarged view of the subject in respect even of principle ; however, the point must at the present day be considered as settled at least upon authority, if any point can be considered as settled after repeated decisions [a). The advancement of the son is a mere question of intention, and therefore facts antecedent to or contemporaneous with the purchase (b), or so immediately after it as to constitute part of the same transaction (c), may properly be put in evidence for the purpose of rebutting the presumption. Thus it will not be held an advancement, if, on a grant of copyholds to a father and his son for their lives successive, the father at the same court surrender the copyholds to the use of his will {d), or obtain a licence from the lord to lease for years (e), or take pos- session by some overt act immediately consequential upon the purchase (/). So the father may prove a parol declaration of trust by him- self, either before or at the time of the purchase, not that it operates by way of declaration of trust (for the Statute of Frauds would interfere to prevent it) ; but as the trust would result to the father, were it not rebutted by the sonship as a circumstance of evidence, the father may counteract that circumstance by the evidence arising from his parol declaration. (o) Woodman v. Morrel, 2 Freem. 32, reversed on the re-hearing (see n ote by Hovenden) ; Shales v. Shales, ib. 252 ; Sidmouth v. Sidmouth, 2 Beav. 447 ; and see Elliot v. El- liot, 231 ; but see Loyd v. Read, 1 P. W. 607 ; Medington v. Hedington, 3 Ridg. 190 ; Murless v. Franklin, 1 Sw. 17 ; Scawin v. Scawin, 1 T. & C. Ch. Ca. 65. (J) See ColUnson v. Collinson, 3 De Gex, M. & G. 409 ; Murless v. Franklin, 1 Sw. 17, 19 ; Sidmouth V. Sidmouth, 2 Beav. 447 ; Loyd v. JJeai^.lP.W. 607; Taylor y. Alston, cited 2 Cox, 96, 1 Watk. Cop. 223 ; JRedington v. Hedington, 3 Ridg. 177; Grey v. Grey, 2 Sw. 594; Rawleigh's case, cited Hard. 497; Baylis v. Newton, 2 Vern. 28 ; Shales v. Shales, 2 Freem. 252; Scawin v. Scawin, 1 T. & C. Ch. Ca. 65 ; Christy v. Courtenay, 13 Beav. 96. (c) JRedington v. Hedington, 3 Ridg. 196, per Lord Loughborough. {d) Franker dY. Prankerd, 1 S. & S. 1. (e) Swift V. Davis, 8 East, 354, note (a). (/) LordEldon could scarcely have meant more than this, when he ob- served, "Possession taken by the father at the time would amount to such evidence." Murless v. Frank- lin, 1 Sw. 17. CH. Vm. S. 2.] PURCHASE IN NAME OF A CHILD. 215 Of course the father cannot defeat the advancement by any subsequent declaration of his intention (a). On the other hand, the son may produce parol evidence to Evidence on the . . ,. ^ ,,„.. ,. part of the child. prove the intention oi advancement (o), and a fortiori such evi- dence is admissible on his side, as it tends to support both the legal operation and equitable presumption of the instru- ment (c). And it seems the subsequent acts and declarations of the father may be used against him by the son, though they cannot be used in his favour {d), but the subsequent acts or declarations of the son cannot be used against him by the father ; for the question is, what did the father mean by the purchase ? Nothing, therefore, that the son could do or say (short of a disclaimer) can affect his interest, except, indeed, he was a party to the purchase, and his construction of the transaction may be taken as an index to the iatention of the father (e). From the manner in which the Court has disposed of the Rule not to be several distinctions we have been considering, one general refinement^.'"^ principle is to be extracted applicable to every case. " We think," said Chief Baron Eyre, " that reasons which partake of too great a degree of refinement should not prevail against a rule of property, which is so well established as to become a land-mark, and which, whether right or wrong, should be carried throughout" (/); and Lord Eldontothe same effect observed, " that the Court in Dyer v. Dyer meant to establish this principle, that the purchase is an advancement ^nma/acie, and in this sense, that this principle of law and presumption is not to be frittered away by mere refinements " [g). (a) See Elliot v. Mliot, 2 Ch. W. 113; Redingfony. Redington, 3 Ca. 231 ; Finch v. Finch, 15 Tes. Eidg. 182, 195. 51 ; Woodman v. Morrel, 2 Freem. [d) See Redington v. Redington, 3 33 ; Birch v. Blagrave, Amb. 266 ; Kidg. 195, 197 ; Sidmouth v. Sid- Gilb. Lex Prset. 271 ; Sidmouth v. mouth, 2 Beav. 455. Sidmouth, 2 Beav. 456; Skeats v. (e) See Murless v. Franklin, 1 Skeats, 2 T. & C. Ch. Ca. 9 ; Christy Sw. 20 ; Pole v. Role, 1 Ves. 76 ; v. Courtenay, 13 Beav. 96. but see Sidmouth v. Sidmouth, 2 (6) Taylor v. Alston, cited 2 Cox, Beav. 455 ; Scawin v. Scawin. 1 Y. 96, 1 "Watk. Cop. 223 ; Beckford v. & C. Ch. Ca. 65. Beckford, Lofft, 490. (/) 2 Cox, 98 ; 1 Watk. Cop. 226. (c) See Taxjlor v. Taylor, 1 Atk. [g] Finch v. Finch, 15 Ves. 50. 386; Lamplugh v. Lamplugh, 1 P. 216 PURCHASE IN NAME OF A CHILD. [CH. VIII. S. 2. Eule applies to an illegitimate child. Eule applies to daughters as well as sons, and to a wife, and grand- child, nephew, or person towards whom the pur- chaser stands in loco parentis. Purchase-money not paid, a debt from parent. Advancement applies to per- sonalty. The doctrine of advancement has been applied to the case of even an illegitimate son (a) ; for it is said the principle is, that a father is under a moral duty to provide for his child, and as the obligation extends to the case of an illegitimate child, he is equally entitled to the benefit of the presump- tion (6). It has been said that the presumption is not so strong ia favour of a daughter as of a son, because daughters are not generally provided for by a settlement of real estate (c) ; but the distinction has been contradicted by more than one deci- sion, and does not now exist {d). Advancement wiU. be pre- sumed in the case of a wife (e), and the presumption will be the same where the purchase is made in the name of a grand- child if), of a nephew (g), and, it is conceived, even of a stranger in blood Qi), towards whom the person purchasing has placed himself "in loco parentis." Where the purchase is held to be an advancement, and the purchase-money has not been paid, it wUl be a charge on the father's assets as an ordinary debt (i). Of course the doctrine of advancement applies to personal as well as real estate ; as where a father purchases stock in the name of his son (k). In a recent case, where monies were lent out in the name of a person who was both son and solicitor of the owner of the sums lent, it was held that the particular relation of sohcitor prevented the application of the general rule [l). [a] Seekford v. Beckford, Lofft, 490 ; Fearae's P. W. 327. (6) See Fonb. Eq. Tr. 123, note (i), 4tli ed. (c) Gilb. Lex Pr»t. 272. {d) Lady Gorgets case, cited Cro. Car. 550, 2 Sw. 600 ; Jennings v. Sel- lecJc, 1 Vein. 467 ; and see Woodman V. Morrel, 2 Freem. 33 ; Clarke v. Danvers, 1 Ch. Ca. 310. (e) Kingdome v. Bridges, 2 Vern. 67 ; Christ s Hospital v. Budgin, id. 683 ; Back v. Andrews, id. 120 ; Glais- ter V. Hewer, 8 Ves. 199, per Sir W. Grant; Rider Y.Kidder, 10 Ves. 367, ^er Lord Eldon; Gilb. Lex Pr^t. 272. (/) JEbrand v. Dancer, 2 Ch. Ca. 26 ; and see Loyd v. Read, 1 P. W. 607 ; Currant v. Jago, 1 Coll. 265, note (c). [g) Currant Y. Jago, 1 Coll. 261. Qi) See tbe analogous class of oases in reference to double portions, Powys V. Mansjield, 3 M. & Or. 359, &c. (i) Redington v. Redington, 3 Eidg. 106, see 200. {k) Sidmouth v. Sidmouth, 2 Beav. 447. (Z) Garrett v. Wilkinson, 2 De Gex & Sm. 244. CHAPTER IX. OF CONSTRUCTIVE TRUSTS. A constructive trust is raised by a court of equity, wherever General doctrine. a person, clothed with a fiduciary character, gains some personal advantage by availing himself of his situation as trustee (a) ; for as it is impossible a trustee should be allowed to make a profit by his office, it follows, that so soon as the advantage in question is shown to have been acquired through the medium of the trust, the trustee, however good a legal title he may have, will be decreed in equity to hold for the benefit of his cestui que trust. The most common instance of a constructive trust occurs in Renewal of the renewal of leases ; the rule being, that if a trustee (&), or ^*°^^' executor (c), or even an executor de son tort (d), renew a lease in his own name, he wUl be deemed in equity to be a trustee for those interested in the original term. The leading authority upon this subject is Sandford v. Knmford market Keech, commonly called the Eumford Market Case (e). A lessee of the profits of a market had devised to a trustee for an infant, and the trustee applied for a renewal on behalf of the infant, which was refused, on the ground that there could (o) As to the meaning of the term Ahney v. Miller, "2 Atk. 597, per "constructive trust," and the branch. Lord Hardwicke; Killich v. Flex- of such trusts, reserved for descrip- ney, 4 B. C. C. 161 ; Pickering v. tion in a later chapter, see page 140, Vowles, 1 B. C. C. 198, per Lord suprdi, and page 228, infrd,. Thurlow ; Luchin v. Rushworth, (6) Griffin v. Griffin, 1 Sch. & Finch. 392 ; Anon. 2 Ch. Ca. 207 ; Lef . 354, per Lord Redesdale ; Pick- and see Mulvany v. Billon, 1 B. & ering v. Vowles, 1 B. C. C. 198, per B. 409 ; Foshrooke v. Balguy, 1 M. Lord Thurlow ; Pierson v. Shore, & K. 226 ; Owen v. Williams, Amb. I Atk. 480, per Lord Hardwicke ; 734 ; Neshitt v. Tredennick, 1 B. & NesUtt V. Tredennick, 1 B. & B. 46, B. 46, per Lord Manners. per Lord Manners ; Turner v. Hill, (d) Mulvany v. Billon, 1 B. & B. II Sim. 13, per Sir L. Shadwell. 409. (e) Walley v. Whalley, 1 Vern. (e) Sel. Ch. Ca. 61. 484; Rolty. Holt, 1 Ch. Ca. 190; 218 CONSTRUCTIVE TRUSTS. [CH. DC. be no distress of the profits of a market, but the remedy must rest singly ia covenant, of which an infant was incapable. Upon this the trustee took a lease for the benefit of himself; but Lord King said, " I must consider this a trust for the infant ; for I very weU see, if a trustee, on the refusal to renew, might have a lease to himself, few trust estates would be renewed to cestid que use. Though I do not say there is fraud in this case, yet he should rather have let it run out than have had the lease to himself. This may seem hard, that the trustee is the only person of all mankind who might not have the lease, but it is very proper that rule should be strictly pursued, and' not in the least relaxed ; for it is very obvious what would be the consequence of letting trustees have the lease on refusal to renew to cestui que use." And so decreed that the lease should be assigned to the iufant. Rule applicable Upon the same principle, if a person possessing only a to tenant for life, • t • • ■, ,.^•/./^/^ i-i &c. partial interest m a lease, as a tenant for life (a) (though with an absolute power of appointment, but which he does not exercise (&),) a mortgagee (c), devisee subject to debts and legacies (d) or to an annuity (e), a joint-tenant (/), or partner (j^),' renew the term upon his own account, he shall hold for the benefit of all parties interested in the old lease ; for in con- sideration of equity the subject of the settlement is not only the lease, but also the right of renewal ; and no person taking only a limited interest can avail himself of the situation in (a) Ilyre v. Dolphin, 2 B. & B. (5) Broohman v. Hales, 2 V. & 290; JRawe v. Chichester, Amb. 715 ; B. 45. Coppiny. FernyKough, 2 B. C. C. (e) RushwortWs case,^Teem. 13; 291 ; Pickerings. Vowles, 1 B. C. C. JVeshitt v. Tredennich, 1 B. &B. 46, 197 ; Taster v. Marriott, Amb. 668 ; per Lord Manners. Owen V. Williams, id. 734 ; James {d) Jackson v. Welsh, LI. & G. V. Dean, 11 Ves. 383 ; S. C. 15 Ves. Rep. t. Plunket, 346. 236 ; Kempton v. Packman, cited 7 (e) Winslow v. Tighe, 2 B. & B. 7e3. 176 ; Oiddings v. Oiddings, 3 195 ; Stuhhs v. Moth, id. 548 ; and Russ. 241 ; Neshitt v. Tredermich, see Welh v. Lugar, 2 T. & C. 247 ; IB. & B. 46, per Lord Manners ; Jones v. Kearney, 1 Conn. & Laws. Crop V. Norton, 9 Mod. 233 ; Buck- 34. ley V. Lananze, LI. & Gr. Rep. t. (/) Palmer v. Young, 1 Vem. Plunket, 327 ; Tanner v. Elworthy, 276. 4 Beav. 487 ; Waters v. Bailey, 2 [g) Feather stonhaugh v. Femiiick, Y. & C. Ch. Ca. 219. 17 Ves. 298 ; Ex parte Qrace, 1 Bos. & Pul. 376. CH. IX.] CONSTRUCTIVE TEXJSTS. 219 whicli the settlement has placed him to obtain a dispropor- tionate advantage in derogation of the rights of other equal claimants. Even where a testator was possessed of leaseholds, and Even to a yearly devised all his interest therein to A. for life, remainder to B., *^''^°*' and the lease having expired in the testator's lifetime, he was at his death a mere yearly tenant, it was held that A., having renewed the lease, must hold it upon the limitations of the wiU, for the yearly tenancy was an interest capable of transmission by devise ; and the tenant for life could not, by acting upon the good-wiU that accompanied the possession, get the ex- clusive benefit of a more durable term (a). But if a person devise a lease in strict settlement, and the Case of tenant at lease expire in his lifetime, and at the time of his death he is anoe. merely tenant at will, or at sufferance, then, if the executor renew, he is not a trustee for the devisees, for as there was no interest upon which the will could operate, there was, in fact, no devise (6). And so, where a testator possessed leaseholds for years, and was in possession of other lands without title under the mistaken impression that they were contained in the lease, and devised the lands he held upon lease to A., his exe- cutrix, for life, with remainder over, and A. obtained a lease of the lands not passed by the will, it was ruled that no trust attached upon the term in favour of the remaiaderman (c). But although the devisees cannot claim in these cases, the executor himself wUl not be allowed to keep the beneficial interest. " The question," said Lord Eldon, " is new, whether an exe- cutrix, dealing with the opportunities which she derives by her succession, without title to the estate (which) a tenant by sufferance or at will had held, is a trustee for the devisee, who cannot say he took an interest under the will, or whether it is to be said only that the advantage she made of those oppor- tunities should be for the general estate. The result is this : I think it is impossible she could hold it for herself. Supposing another person, not the executrix, was residuary legatee, the (a) James v. Dean, 11 Ves. 383; (6) See James v. Bean, 11 Yes. S. C. 15 Ves. 236. 391, 392. (c) Rawe v. Chichester, Amb. 715. 220 CONSTEUCTIVE TRUSTS. [CH. IX. Agent of trustee cannot renew for his own benefit. Trustee may not sell the right of renewal. What particular circumstances will not vary the general rule. question, I should think, would be in favour of that residuary legatee, (the renewal) being a casual advantage from the dealing of the executrix " (a). Neither can an agent (6), or other person acting under the authority of a trustee, executor, or tenant for life, renew for his own benefit; for "there is nothing," said Lord Hardwicke,^ " the Court has more adhered to than that, if the tenant, or any person claiming from the tenant, apply to renew, whether the new lease be granted to the same person or any other, if the lessee in the new take in the right of him who was the owner of the old lease, he must take subject to all the equity to which the original lessee was liable '' (c). And if, instead of taking a renewal himself, the trustee, executor, or tenant for life, dispose of the right of renewal for a valuable consideration, the purchase -money wUl be subjected in equity to the trusts of the settlement ; for if a person cannot appropriate the renewal to himself, the Court wiU not suffer him to sell {d). And in the preceding cases the rule of equity wUl not be varied, because the lease had not customarily been renewed (e), or the period of the old lease had actually expired (/), or the renewal was for a different term, or at a different rent (g), or instead of a chattel lease, was for lives (h), or other lands were demised, not comprised in the original lease (i), or the landlord refused to renew with the cestui que trust (k), or the co-trustees refused to concur in a renewal for the cestui que trust's benefit (l). (a) James v. Dean, 11 Ves. 392, per Lord Eldon. In JRawe v. Chichester, uhi supra, the executrix was also residuary legatee. (J) Griffin v. Griffin, 1 Soh. & Lef. 353 ; and see Edwards v. Lewis, 3 Atk. 538 ; Mulvany v. Dillon, 1 B. & B. 417. (c) Edwards v. Lewis, 3 Atk, 538. {d) Owen v. Williams, Amb. 734. (e) See Featherstonhaugh v. Fen- wick, 17 Ves. 298 ; ■ Mulvany y. Dillon, 1 B. & B. 409; Eyre v. Dolphin, 2 B. & B. 290 ; Killich v. Flexney, 4 B. C. C. 161. (/) Edwards v. Lewis, 3 Atk, 638, per Lord Hardwicke. {g) Mulvany v. Dillon, 1 B. & B. 409 ; James v. Dean, 7 Ves. 383 ; S. C. 15 Ves. 236, &o. [h) Eyre v. Dolphin, 2 B. & B. 299. (si) Giddings v. Giddings, 3 Euss. 241. But the lease of the addi- tional lands win not be a graft, ^cAesore v.-PflM-, 2 Conn. & Laws.208. {k) Keech v. Sandford, Sel. Ch. Ca. 61 ; Griffin v. Griffin, 1 Soh. & Lef. 353. '{I) Slewett v. MilleU, 7 B. P. C. 367. ■CH. IX.] CONSTRUCTIVE TRUSTS. 221 or the lessee, having purchased the immediate reversion, took the renewal from the superior landlord (a). But where a lessee of lands in Ireland charged a lease with Nesbitt v. Tre- a jointure, and then mortgaged it to Newcomen, and again to ^^'"^^"^^ Nesbitt, and afterwards the rent falling in arrear, the landlord recovered possession upon ejectment, and the lessee allowed six months (the period of redemption by the lessee fixed by the statute) to pass without tendering the rent, fines, and costs, and Nesbitt (who, as mortgagee, had three months longer to redeem under the statute,) sent notice to the lessee that he would not redeem; but that if the lessee himself did not proceed, he should make the best bargain he could with the landlord, and then offered to take a new lease, to commence from the expira- tion of the three months, with a proviso, that if any other of the parties interested should make a lodgment before that time, the agreement should be void ; it was decided by Lord Manners that the lease which was afterwards granted to the mortgagee was not bound by any trust for the mortgagor. " The principle," -said his Lordship, " to be extracted from all the authorities ■amounts to this, — that whenever a mortgagee, executor, trustee, or tenant for life, gets an advantage, either by being in posses- sion, or behind the back of the party mortgagor, cestui que trust, or remainderman, he shall not retain the same for his own benefit, but hold it in trust, — the new lease, in any of those cases, will be considered as a graft upon the old one. Here there is full notice given by the mortgagee that he will not redeem, and he gives his reasons for it ; he does not go behind the back of the mortgagor, nor is he in possession, nor does he use any means of getting to himself an advantage which belongs to another ; and he cannot, as I apprehend, be brought within the principles of those cases by which in taking a new lease he becomes clothed with a trust. In all the cases upon this subject, the party by being in possession obtained the renewal, or it was done behind the back, or by some con- trivance, or in fraud, of those who were interested in the old lease, and there was either a remnant of the old lease, or a tenant-right of renewal, on which the new lease could be (a) QiddingsY, Giddmffs,3 Russ. 241. 222 CONSTEUCTIVE TRUSTS. [cn. nc. Trustee's lien for expenses of renewal. es in- curred by tenant for life. ingrafted. Here no part of Nesbitt's conduct shows a con- trivance ; nor was lie in possession. All that Nesbitt treated for was a new lease, giving, however, full opportunity to the lessee to dispose of his interest, or to renew, if he was enabled to do so. It was urged, that a court of equity will relieve against penalties and forfeitures ; but those are cases of con- tract, and introduced by the acts of the parties themselves, not where a forfeiture arises under the provision of an act of parliament, and where the lessee has so totally forfeited his interest as not to be relievable either in law or in equity." And his Lordship appears to have determined the case upon the general principle ; for he observed, in conclusion, " But I have no occasion to touch upon the act of parliament " (a). A trustee or executor who has renewed a lease has a lien upon the estate for the costs and expenses of the renewal, with interest (6) ; and where lands are taken under the new lease that were not comprised in the original lease, the Court will apportion the expenses according to the value of the respective lands (c). The trustee will also be allowed for money subse- quently laid out in lasting improvements (d), though made duriag the suit for recovering the lease (e). In the case of a renewal by tenant for Hfe, if he put iu his own life, he of course can have no claim to reimbursement (/), but if he put in the life of another, the expenses wiU be appor- tioned at the death of the tenant for life according to the time of his actual enjoyment of the renewed interest (g) ; and he will be a creditor on the estate for the apportionment, though the remaindermen be his own children, who resist the claim on the ground of advancement Qi). In the case of a testator devising aU his interest in lease- (o) Nesbitt v. Tredennich, 1 B. & B. 29. (6) Holt V. Holt, 1 Ch. Ca. 190 ; JRawe V. Chichester, Amb. 715, see 720 ; Coppin v. Fernyhough, 2 B. C. C. 291 ; Lawrence v. Maggs, 1 Ed. 453 ; Pickering v. Vowles, 1 B. C. C. 197 ; James v. Dean, 11 Ves. 383 ; Kempton v. Packman, cited 7 Vea. 176. (c) Giddings v. Giddings, 3 Euss. 241. {d) Holt V. Holt, Lawrence v. Maggs, ubi supra. (e) Walley v. WlialUy, 1 Tern. 484. (/) Lawrence v. Maggs, 1 Ed. 453. {g) See infra. (/») Lawrence v. Maggs, 1 Ed. 453. CH. IX.] CONSTEUCTIVE TRUSTS. 223 Jiolds subject to an annuity, the question of the annuitant's Contribution to contribution has been differently regarded by different judges, a^iiitants. In Maxwell v. Ashe {a) Sir John Strange decided that the annuitant was not bound to contribute. In Moody v. Mat- thews (&), where a feme sold an annuity to A. for his life, out of tithes held by her upon lease, and covenanted to pay the annuity, and that the tithes should continue subject to it during the life of A., and the feme married and died, and the husband, who took the term by survivorship, renewed at his own expense. Sir W. Grant determined that the annuitant was not to be called upon to contribute, for that would be to make him pay the consideration twice, and he said the case of Maxwell v. Ashe was decisive. On the other hand, it was ruled by Lord Manners, in the case of a will, that the annuitant must con- tribute in proportion to his interest in the property ; for though the testator had given no direction upon this point, it was incident to this sort of tenure (c). At the time of this decision his Lordship was not aware of the cases before Sir J. Strange and Sir W. Grant ; but on a subsequent occasion, when the same point again arose before him, he adhered to the same opinion, notwithstanding the authority, for " all the legatees," he said, " appear to have been equally the objects of the testator's favour. Could it have been his intention that one of them should alone bear the expense of the renewal, and that the others should receive the fuU amount of their annuities without any deduction ? " (d). In making the assignment- to the cestui que trust the trustee Terms of aesign- a o T_ • 1 ment by the will also be indemnified against the personal covenants which trustee. he entered into with the lessor (e) ; and on his own part must clear the lease of all incumbrances created by him, except under-leases at rack-rent (/). The trustee must also account to the cestui que trust for the {a) Maxwell Y.Ashe, cited 7 Ves. {d) Stubbs v. Moth, 2 B. & B. 548. 184. (e) Giddings v. Giddings, 3 Buss. (6) 7 Ves. 174 ; and see Jones v. 241 ; Keech v. Sandford, Sel. Ch. Kearney, 1 Comi. & Laws. 47 ; Ca. 61. Thomas Y. Burne, 1 Dru. & Walsh, (/) Bowles y. Stewart, 1 Sch. & 657. Lef. 209, see 230. (c) Winslow Y. Tighe, 2 B. & B. 195. 234 CONSTEUCTIVE TEUSTS. [CH. IX. Accounting for mesne rents and profits. Remedy against purchasers and others claiming under the lessee. Limitation of time. mesne rents and profits which he has received from the estate (a), and also for any sub-fines that may have been paid to him by under-lessees (5). And the cestui que trust, though the lease ■which was the ground of his equity has since actually expired, may still file a bill for an account of the rents and profits (c). In the case of a renewal by tenant for life, the account will of course be restricted to the period since the tenant for hfe's decease (d). The cestui que trust may pursue his remedy not only against the original trustee, executor, or tenant for life, and volunteers claiming through them (e) ; but also against a purchaser, with notice express or implied of the plaintiff's title (/) ; and a pur- chaser will be deemed to have had notice if the lease assigned to him recited the surrender of a former lease which recited the surrender of a previous lease, in which mention was made of the settlement under which the cestui que trust claims (g) ; and the volunteer or purchaser with notice will not be helped by a fine levied [h), or even by a release from the cestui que trust, if executed by him while in ignorance of the facts of the case {i). However, a purchaser will stand in the place of his assignor in respect of any allowances for expenses incurred in the renewal (fc). A cestui que trust will be barred of his remedy if he be guilty of long acquiescence, as, it seems in one case, for a period of fifteen years (Z). (a) Oiddings v. Giddings, Keech V. Sandford, ubi supra ; Mulvany v. Dillon, 1 B. & B. 409 ; Walley Y. Whalhy, 1 Vern. 484 ; Lucken V. Hushworth, Fincli. 392 ; Blewett V. Millett, 1 B. P. C. 367. (b) Sawe v. Chichester, Arab. 715, see 720. (c) Hyre v. Dolphin, 2 B. & B. 290. {d) James v. Dean, 11 Ves. 383, see 396 ; Oiddings v. Oiddings, 3 Kuss. 241. (e) Bowles v. Stewart, 1 Soh. & Lef. 209 ; Eyre v. Dolphin, 2 B. & B. 290 ; Blewett v. Millett, 7 B. P. C. 367. • (/) Coppin V. Fernyhough, 2 B. C. C. 291 ; Walley v. Whalley, 1 Vern. 484 ; Eyre v. Dolphin, 2 B. & B. 290. {g) Coppin v. Fernyhough, uhi supra; Sodghinson v. Cooper, 9 Beav. 304. {h) Bowles V. Stewart, 1 Soh. & Lef. 209. (i) s. a {k) Coppin V. Fernyhough, 2 B. C. C. 291. (l) Isald Y. Fitzgerald, cited Oiven Y. Williams, Amb. 735, 737 ; and see Norris v. Le Neve, 3 Atk. 38 ; Jackson v. Wekh, LI. & G. Rep. t. Plunket, 346. CH. IX.] CONSTEUCTIVE TEUSTS, 225 If the trustee of a lease become the pv/rchaser of the reversion, Case of trustee Sir W. Grant said, that, as he thereby intercepts and cuts oif chasing the the chance of future renewals, and consequently makes use of i'«^«™i"°- his situation to prejudice the interests of those who stand behind him, there might be some sort of equity in a claim to have the reversion considered as a substitution for those interests, but his Honor was not aware of any determination to that effect (a). But where a lease had been held of a college, and, the No tenant-right corporation having disposed of the reversion to a stranger, the y^^'^hat soidtr trustee purchased of the alienee, his Honor expressly decided ^^ mdiTidual. that the parties interested in the original lease had no equity against the trustee, for the tenant-right of renewal with a pubhc body was gone, and a lease at a rack-rent was all that could be expected from a private proprietor (&). The principle upon which a Court of equity establishes con- Factor, agent, . &c., constructive structive trusts might be pursued mto numerous other truatee. iustances : as if a factor (c), agent (d), or other confidential person, acquire a pecuniary advantage to himself through the medium of his fiduciary character, he is accountable for those profits to his employer or other person whose interests he was bound to advance. So if a tenant for hfe commit equitable waste, he is a trustee Equitable waste. of the proceeds for the benefit of the remainderman (e). " The restraint upon the legal owner as to equitable waste," said Sir J. Leach, "is to be considered as founded on a breach of that trust and confidence which the devisor reposed in the tenant for life, that he would use his legal estate only for the purpose of fair enjoyment. It is a trust implied in equity from the subsequent limitations, and from the presumed intention of the testator that he meant an equal benefit to all in succession "(/)• (a) Mundall v. Russell, 3 Mer. {d) Fawcett v. Whitehouse, 1 B. 197 ; and see Hardman v. Johnson, & M. 132 ; Hichens v. Congreve, ib. 347 ; Norris v. Le Neve, 3 Atk. ib. 150 ; Carter v. Home, 1 Eq. Ca. 37 and 38 ; Lesley's case, 2 Freem. Ab. 7 ; Broohman v. Rothschild, 3 52; Foshroohe w. Balguy, 1 M. & Simons, 153; Oilletty.Peppercorne, K. 226 ; Oiddings v. Giddings, 3 3 Beav. 78 ; Bentley v. Craven, 18 Euss. 241. Beav. 75. (6) iJaree?«ZZv.-BM«se//, 3 Mer. 190. {e) Marquis of Ormonde v. (c) East India Company v. Kynersley, 5 Mad. 369. Henchman, 1 Ves. jun. 287 ; -S". C. (/) Ib. 8 B. P. C. 85. 1 22fi CONSTEUCTIVE TRUSTS. [CH. IX. Fraud in attor- ney. Agent not constructive trustee. Again, where A. contracted for the sale of part of his estate, and the purchaser requiring a fine to be levied, B., who was A.'s attorney, and also his heir-apparent, advised a fine to be levied of the whole estate, whereby the will of the vendor was revoked, and the part not included in the sale descended to B. as heir-at-law, it was held that the devisee under the will could call upon B. as a trustee (a). "Whether you meant fraud," said Lord Eldon, "whether you knew you were the heir-at-law of the testator or not, you who have been wanting in what I conceive to be the duty of an attorney, if it happens that you get an advantage by that neglect, you shall not hold that advantage, but you shall be a trustee of the property for the benefit of that person who would have been entitled to it if you had known what as an attorney you ought to have known, and, not knowing it, you shall not take advantage of your own ignorance. It is too dangerous to the interests of mankind that those who are bound to advise, and who, being bound to advise, ought to be able to give sound and sufficient advice, to allow that they shall ever take advantage of their own ignorance, of their own professional ignorance, to the prejudice of others" (&). An agent employed by a trustee is accountable to his principal only, and cannot as a constructive trustee be made responsible to the cestuis que trust (c). But of course the rule does not apply where the agent has taken an nctiYelj fraudulent part, and so made himself a principal (d). " It cannot be disputed," said Lord Langdale, " that if the agent of a trustee, whether a corporate body or not, knowing that a breach of trust [a) Bulhly v. Wilford, 2 CI. & Fin. 177 ; 8. C. 8 Bl. N. S. Ill ; and see Segrave v. Kirwan, Beat. 157. (J) 2 CI. & Fin. 177. (c) Keane v. Moharts, 4 Mad. 332, see 356, 359 ; Davis v. Spur- ling, 1 E. & M. 64; 8. C. Taml. 199 ; Crisp v. 8pranger, Nels. 109 ; Saville v. Tancred, 3 Sw. 141, note ; Nicholson v. Knowles, 5 Mad. 47 ; Myler v. Fitzpatrich, 6 Mad. 360 ; Fyler v. Fyler, 3 Beav. 550 ; Loch- wood V. Ahdy, 14 Sim. 437 ; and see Ex parte Burton, 3 Mont. D. & De Gex, 364; Be Bunting, 2 Ad. & EU. 467. {d) See Fyler v. Fyler, 3 Beav. 550 ; Portloch v. Gardner, 1 Hare, 606 ; Ex parteWoodin, 3 Mont. D.& De G.399; Attorney-QeneraU.Car- poration of Leicester, 7 Beav. 176 ; Pannell v. Hurley, 2 Coll. 241; Alleyne v. Darcy, 4 Ir. Ch. Eep- 199. CH. IX.] CONSTRUCTIVE TRUSTS. 227 is being committed, iaterferes and assists in that breach of trust, he is personally answerable, although he may be employed as the agent of the person who directs him to commit that breach of trust" (a). Thus, where a trust fund was lodged at a banker's and was headed as a trust account, and the surviving trustee became indebted to the bank, and with the concurrence of the bankers (who were cognisant of the trust, not only from the heading of the account, but also expressly, from certain private transactions), the trust fund was applied in discharge of the trustee's private debt ; the bankers could not protect themselves on the ground of mere agency, but were held responsible to the cestms que trust for a breach of faith (6). Under the head of constructive trusts may be mentioned Title-deeds. the case of a settlement left in the hands of a person taking only a partial benefit under it as a tenant for life ; where the other persons interested and claiming under the same title have a right to the fair use of the document, and the holder is deemed a trustee for them, and is bound to produce it at their request (c) ; and in one case it was ruled that if a person sell part of his estate and retain the title-deeds, though he may not have given a covenant for production, he is compellable to produce them as common property to the purchaser (d). But iu Barclay v. Raine (e), Sir J. Leach seems to have doubted whether, if part be sold and the title-deeds be delivered to the purchaser, a future purchaser from him could be ordered, where there was no covenant for that purpose, to produce them to the owners of the other parts. The real property commissioners observe, that previously to this case it had been supposed, either that an original independent equity existed entitling any party interested in a deed to call for its production by any other person having the custody of it, or at least that such an equity existed wherever the parties (a) Attorney -General v. Corpo- 42; Harrison v. Coppard, 2 Cox, ration of Leicester, TBesiY. no. 318; Shore v. CoUeti, Coop. 234; (6) Pannell v. Hurley, 2 Coll. Davis v. Dysart, 20 Beav. 405. 241 ; Bodenham v. Hoshyns, 2 De id) Fain v. Ayers, 2 S. & S. 533. Gex, M. & G. 908. (e) 1 S. & S. 449 ; see 7 Byth. (e) Banbury v. Briscoe, 2 Ch. Ca. by Jarm. 375. Q 2 228 CONSTEUCTIVE TRUSTS. [CH. IX. requiring the production claimed under a person who had taken the precaution to procure a covenant for that purpose, and the person having the actual custody of it derived that custody from or through a person who had entered into such covenant (a); upon which Sir E. Sugden observes, that the rule in equity was never so universal as it is quoted in the first part of the above statement, but that the second branch, stating what at least the doctrine was, appears to be correct (&). Constructive Constructive trusts are said also to arise where the trust trustees from . -i ■, ■, <■ • <■ notice of the estate IS converted by the trustee irom one species of property ™^ ■ into another ; and again, where the trust estate passes from the trustee into the hands of a volunteer, whether with or without notice, or of a purchaser for valuable consideration with notice ; but as these are cases rather of an existing trust continued and kept on foot than of a new trust created, the consideration of these topics will be reserved to a subsequent part of the treatise. In concluding the subject of trusts by operation of law, it may be proper to offer a few remarks on the wording of the Statute of Frauds (c). Statute of Frauds By the eighth section it is enacted, that "where any as affecting trusts in, i<- it ti-i by operation of conveyance shall be made ot any lands or tenements by which ''^^ a trust or confidence shall or may arise or result hy the impU- cation or construction of law, or be transferred or extinguished- by an act or operation of law, then and in every such case such trust or confidence shall be of the like force and effect as the same would have been if that statute had not been made ; any thing therein-before contained to the contrary not- withstanding." Lord Hard- Lord Hardwicke upon this clause observed, " I am now wicke's opinion, ^^^y^^ ^^^^ l,y tj^e Statute of Frauds to construe nothing a resulting trust but what are there called trusts by operation of law ; and what are those ? Why, First, when an estate is purchased in the name of one person but the money or consideration is given by another; or. Secondly, where a (a) 3rd Eep. (c) 29 Car. 2. c. 3. (i) 2 Vend. & Purch. 11 Ed. 479, 480. CH. IX.] CONSTEUCTIVE TEUSTS. 229 trust is declared only as to part, and nothing said as to the rest, in which case what remains undisposed of will result to the heir-at-law. I do not know any other instance besides these two, where the Court has declared resulting trusts by operation of law, unless in cases of fraud, and where trans- actions have been carried on maid fide " (a). But upon this opinion of Lord Hardwicke, Mr. Fonblanque Mr. FonbUnquo's has made the following just remarks : — " This construction of "P""™- the clause of the Statute of Frauds restrains it to such trusts as arise by operation of law, whereas it clearly extends to such as are raised by construction of Courts of equity ; as, in the case of an executor or guardian renewing a lease though with his own money, such renewal shall be deemed to be in trust for the person beneficially interested in the old lease. It is also observable, that the first instance stated by his Lordship of a resulting trust is not so qualified as to let in the exceptions to which the general rule is sul^ject, and the second instance is only applicable to a will, whereas the doctrine of resulting trusts is also applicable to conveyances " (b). As to the latter part of this criticism it may be observed that while Atkyns makes Lord Hardwicke speak of a will only, Barnardiston, the other reporter, applies his Lordship's observation to a convey- ance (c). It would thus appear that Lord Hardwicke in fact extended his remark to both a will and a conveyance. Both Lord Hardwicke and Mr. Fonblanque assume that the seventh or enacting clause embraces all trusts indiscriminately, and that such as arise by operation of law are only saved from the act by virtue of the subsequent exception contained in the eighth section ; but the language of the latter clause, that " where any conveyance shall be made of any lands or tene- ments by which a trust or confidence shall or may arise or result," &c. seems to have escaped observation; for, unless conveyance be taken with great violence to the meaning of words to include a devise, it is clear that trusts resulting under a wUl are not reached by the terms of the saving. Nor is it easy to suppose that the legislature could mean to include a (a) Lloyd v. Spillet, 2 Atk. 150. (c) See Lhyd v. Spillet, Barn, (i) 2 Tr. Eq. 116, note (a). 388. 230 CONSTRUCTIVE TRUSTS. [CH. IX. devise ; for the fifth and sixth sections relate exclusively to devises, and, had it fallen within the scope of the act to extend the eighth section to willsj it can scarcely be conceived that the proper and technical word should not necessarily have suggested itself. The question then arises, If resulting trusts upon a will are not saved by the exception, how are they not affected by force of the previous enactment ? As the statute was directed against frauds and perjuries, it is obvious that resulting trusts were not within the mischief intended to be remedied. The aim of the legislature was, not to disturb such trusts as were raised by maxims of equity, and so could not open a door to fraud or perjury, but, by requiring the creation of trusts by parties to be manifested in writiug, to prevent that fraud and perjury to which the admission of parol testi- mony had hitherto given occasion. And the enactment itself is applicable only to this view of the subject; for the legislature could scarcely direct, that " all declarations or creations of trusts should be manifested and proved," &c. unless the trusts were in their nature capable of manifestation and proof ; but, as resulting trusts are the effect of a rule of law, to prove them would be to instruct the Court in its own principles, to certify to the judge how equity itself operates. The exception could only have been inserted ex majori cauteld, that the extent of the enactment might not be left to implication. But why, it will be asked, are resulting trusts upon conveyances excepted, and not resulting trusts upon wills ? The only explanation that suggests itself is this : — The statute had spoken only of declarations or creations of trust, and by a wUl no resulting trust is or can be declared or created. If lands be devised to A. and his heirs upon trust to pay the testator's debts, the resulting trust of the surplus is no new declaration or creation; the right construction is, that the testator has disposed of the legal estate to the devisee, and of part of the equitable in favour of creditors ; but the residue of the equitable, though said to result, has in fact never been parted with, but descends upon the heir-at-law as part of the original inheritance. In conveyances, however, this is not equally the case ; for if a purchase be taken in the name of a third person, a trust which had no previous existence arises upon the property in favour CH. IX.] CONSTEUCTIVE TRUSTS. 231 of the real purchaser; and so if a lease be renewed by a trustee, the equity which was annexed to the old term imme- diately fastens upon the new. Here, then, it is evident there is an actual creation of trust ; and, to obviate all doubts as to the operation of the enactment, resulting trusts arising out of conveyances are expressly excepted. CHAPTEE X. OF DISCLAIMER AND ACCEPTANCE OF THE TEUST. No person compellable to be a trustee. Heir of a trustee. Haying treated of the creation of trusts, whether by the act of a party or by operation of law, we shall next direct our attention to the estate and office of the trustee, and, as a pre- liminary inquiry, we propose in the present chapter to offer a few remarks upon the subject of the trustee's disclaimer or acceptance of the trust. I. Of Disclaimer. It may be laid down as a clear and undisputed rule, that no one is compellahle to undertake a trust (a). " Though a person," said Lord Eedesdale, " may have agreed iu the life- time of a testator to accept the executorship, he is stiU at liberty to recede, except so far as his feelings may forbid it ; and it will be proper for him to do so, if he finds that his charge as executor is different from what he conceived it to be when he entered into the engagement" (6). But there does not appear to be any instance in which, after acceptance by the trustee, his heir has been allowed to dis- claim ; and if the law permitted it, many instances would no doubt have occurred. The inconveniences of such a right of disclaimer would be great, as the legal estate would become vested in the crown. However, where the heir takes not strictly in that character, but as special occupant, he may exercise his discretion in accepting the estate or not (c). If the party named as trustee intend to decline the adminis- (a) Sobinson v. Pett, 3 P. W. 251, per Lord Talbot ; Moyle v. Moyle, 2 R. & M, 715, per Lord Brougham ; Lowry V. Fulton, 9 Sim, 1 23, per Sir L. Shadwell. (6) Bmjle v. Blahe, 2 Sch. & Lef. 239. (c) Creagh v. Blood, 3 Jones & Lat. 170. CH. X.J DISCLAIMER. 233 tration of the trust, lie ought to execute a disclaimer without Disclaimer delay. There is no rule, however, that a trustee must execute deed. ^ ^ a disclaimer within any particular time : thus it will operate after an interval of sixteen years, if the interval can be so explained as to rebut the presumption of his having accepted the trust (a). But if he lie by for so long a time, it is for the jury to say whether it was not because he had assented to the devise (6) ; and where a trustee, knowing his appointment as trustee, has done nothing, but has not disclaimed, it will be presumed after a long lapse of time, as twenty years (c), and a. fortiori, after thirty-four years (d), that he had accepted the trust ; and even where the d6ed was only four years old. Lord St. Leonards observed, "that where an estate was vested in trustees who knew of their appointment and did not object at the time, they would not be allowed afterwards to say they did not assent to the conveyance, and it would require some strong act to induce the Court to hold that in such a case the estate was divested. Pie spoke," he said, " with respect to the effect upon third parties; every Court and every jury would pre- sume an assent " (e). The disclaimer should be by deed, for a deed is clear Form of the dis- evidence and admits of no ambiguity (/) ; and the instrument should be a disclaimer and not a conveyance, for the latter, as it transmits the estate, has been held to imply a previous acceptance of the office {g) ; but Lord Eldon expressed his opinion, that, where the intention was disclaimer, the instru- ment ought to receive that construction, though it was a con- veyance in form Qi). If an executor of an executor take upon him the adminis- (a) Doe -v. Harris, 16 M. & W. {g) Crewe v. Dicken, 4 Ves. 97; 517 ; and see Nolle v. Meymott, 14 and see Tlrch v. Walker, 3 M. & C. Beav. 471. 702. (5) See Doe v. Harris, 16 M. & (A) Nicloson v. Wordsworth, 2 W. 522, Sw. 372. In Attorney- General y. (c) Jrare J7m"acAe, IJones&Lat. 1. Doyley, 2 Eq. Ca. Ab. 194, the {d) In re Needham, 1 Jones & trustee who declined to act was di- Lat. 34. reoted to convey, and the same de- (e) Wise v. Wise, 2 Jones & Lat. cree was made in Hussey v. Mark- 403 ; see 412. ham, Rep. *. Finch, 258. In Sharp (/) Stacey v. Elph, 1 M. & K. v; Sharp, 2 B. & A. 405, it was 199, per Sir J. Leach. held the trustees had not acted, 334 DISCLAIMER. [CH. X. Executor of an executor. Devise of several trust estates. Can a person accept a tounty and repudiate a trust under the same will. Opinion of counsel as to disclaimer. Disclaimer of trust by answer in Chancery. tration of the goods of the first testator, he cannot refuse the administration of the goods of the latter ; for it is only through the medium of the latter testator that he can reach the execu- torship of the former. And although it was formerly thought that an executor might renounce probate of the original tes- tator, and at the same time or subsequently prove the will of the immediate testator (a), yet the practice has now been settled to the contrary (6). Suppose a trustee of two distinct settlements created at different times and wholly independent of each other were to devise all his trust estates to the same person, could such person accept one estate, and disclaim the other ? It would probably be held, that he might ; but he should lose no time in manifesting his intention, for should he act as owner of one estate and not expressly disclaim the other, the law would presume him to have accepted both. If a person be nominated a trustee in a will and also take a benefit under it, can he claim the testator's bounty, and at the same time disclaim the onus of the trust ? (c) It would seem that he might, for an executor, who is also a legatee, may renounce probate and yet claim the legacy, and it is difficult to point out the distinction between the two cases. If one be named as trustee without any authority from him- self, he is justified in taking the opinion of counsel upon the propriety of executing a deed of disclaimer, and if a person agree to pay the costs of the disclaimer, and the bill of costs be taxed, the item of counsel's opinion will be allowed (d). A trust may be disclaimed at the bar of the Court (e), or by answer in Chancery, and the person named as trustee will be entitled to his costs (/), but only as between party and party (g), though they had conveyed the estate instead of disclaiming. See Urch v. Walker, 3 M. & C. 702 ; Richardson V. Hulbert, 1 Anst. 65. (a) Shepp. Touch, by Preston, 464 Wankford\, Wankford, Freem. 520 Hayton v. Wolfe, Cro. Jac. 614 >S. C. Palmer, 156 ; Hutton, 30. (J) In the goods of Perry, 2 Curt, 655 ; and see In the goods of Beer, 15 Jar. 160. (c) See Talbot v. Radnor, 3 M. & K. 254 ; Pollexfen v. Moore, 3 Atk. 272 ; Andrew v. Trinity Hall, Camb., 9 Ves. 525. (d) In re Tryon, 7 Beav. 496. (e) Ladbrooh v. Bleaden, M. II. 16 Jut. 630. (/) Hickson v. Fitzgerald, 1 Moll. 14. {g) Norway v. Norway, 2 M. & K. 278, overruling MerraW V. -Bewt- ley, 1 R. & M. 655. CH. X.] DISCLAIMER. 235 though the hill he not dismissed against him hefore the hear- ing (a) ; and if his answer be unnecessarily long, he will only- he allowed what would have heen the reasonable costs of a simple disclaimer (&). A trust may also be repudiated on the evidence of conduct May he shown without any express declaration of disclaimer (c) ; but a person would act very imprudently, who allowed so important a ques- tion as whether he is a trustee or not to remain matter of construction. After renunciation of the trust, whether by express dis- After disclaimer, the trustee may claimer, or by conduct which is tantamount to it, a trustee act as agent to may assist as agent, or act under a letter of attorney, in the management of the estate, without incurring responsibility (d) ; hut the caution need scarcely be suggested, that all such inter- ference cannot be too scrupulously avoided before the fact of the renunciation of the trust has been most unquestionably established. The circumstance that the person named as trustee is to receive a profit from his agency, excites a suspicion in the mind of the Court (e). What will amount to a disclaimer at law, so as to devest the How estate de- estate, is a very distinct question from the disclaimer of the trustee. of&ce in equity. It was formerly held (at least such was the clear opinion of Freeholds may be disclaimed by Lord Coke), that a freehold, whether vested in a person by deed, feoffment, grant (/), or devise (g), could not he disclaimed but by matter of record;- and the reason, upon which this maxim was founded, was, that the suitor might be more certainly apprised who was the tenant to the prcrcipe (h). But the (a) Bray v. West, 9- Sim. 429. (/) Butler and Baker's case, 3 Ee. (6) MartinY. Pers.se, 1 Moll. 146 ; 26, a, 27, a; Anon, case, 4 Leon. Parsons v. Potter, 2 Hog. 281. 207 ; Shepp. Touch. 285. (e) Staceyr. JElph, 1 M. & K. 195. (y) Bonifanty, Greenfield, Godb. (d) Dove V. Everard, 1 R. & M. 79, per Lord Coke ; but at tbe re- 231 ; Harrison v. Oraham, 3 Hill's hearing (Cr. El. 80) it was adjudged MSS. 239, cited 1 P. W. 241, 6tli that three could pass the loAoZe estate, ed., note {y) ; Stacey v. Elph, 1 M. the fourth having disclaimed by act & K. 195 ; Lowry v. Fulton, 9 Sim. in pais ; and see Shepp. Touch. 104; Montgomery Y.Johnson, 11 Ir. 452. Eq. Kep. 480. Qi) Butler and Baker's case, 3 Ke. (e) Montgomery y. Johnson, Wlc. 26, b. Eq. Kep. 481. 236 DISCLAIMEE. [CH. X. Disclaimer of uses. Disclaimer of chattels. Disclaimer hj feme covert. doctrine of modern times is, that disclaimer by matter of record is unnecessary (a) ; for, as Lord Tenterden observed, there can be no disclaimer by a person in a court of record, unless some other person think fit to cite him there to receive his disclaimerj and if the estate be damnosa hcereditas, that is not very likely to happen (&). Mr. Justice Holroyd laid it down, that even a deed might be dispensed with, and a party might disclaim a freehold by parol {c); and the doctrine has been sanctioned by an actual decision of Sir A. Hart {d), and by the apparent approbation of other Judges {e).*^^/^-^^^^^^ ^r^ '^^^"^^^ "/^ It was laid down in Butler and Baker's case, that estates < limited wnder the statute of uses were to be disclaimed with the same formalities as estates at common law (/) ; but Lord Eldon doubted whether a party could disclaim in the case of a con- veyance to uses, except by release with intent of disclaimer : however, his Lordship added, he was aware that such a doctrine would shake titles innumerable ig). It seems to be clearly established, that a disclaimer, even by parol declaration, wUl suffice to devest the legal estate, when the trust property is a mere chattel interest Qi). Whether a feme covert could, under the Fines and Eeco- veries Act, disclaim an interest in real estate, was, by the terms of the statute, left doubtful ; the act enabling her only to "dispose of, release, surrender, or extinguish" any estate or power as if she were a feme sole (i). In the Irish Act, 4 & 5 W. 4. c. 92, s. 68, the word "disclaim" was expressly intro- duced; and now, by 8 & 9 Vict. c. 106, s. 7, a married woman is enabled, in like manner, to " disclaim" any estate or interest in lands in England. (a) Townson v. Tickell, 3 B. & A. 31 ; Beghie v. Crooh, 2 Bing. N. S. 70; S. C. 2 Scott, 128. (4) Townson v. Tichell, 3 B. & A. 36. (c) lb. 38, citing Bonifant v. Greenfield, Cr. El. 80 ; and see Doe V. Smyth, 9 D. & R. 136. (d) Bingham v. Clanmor.ris, 2 Moll. 253. And see Creed y. Creed, 2 Hog. 215; Be Ellison's trust, 1 Jur. N. S. 62. (e) See Boe v. Sarris, 16 M. i% W. 517. (/) 3 Re. 27, a. (cj) Nicloson v. Wordsworth, 2 Swi 372. {h) Shepp. Toucli. 285; Butler and Baker'' s case, 3 Re. 26, b, 27, a; Smith v. Wlieeler, 1 Vent. 130; S. C. 2 Keb. 774 ; Doe v. £ams, 16 M. & W. 520, 521, per Paike, B. (t) 3 & 4 W. 4. c. 74, s. 77. CH. X.] ACCEPTANCE OF THE TRUST. 237 The effect of disclaimer by a trustee is to vest the whole i legal estate in the co-trustee (a) ; and, as regards the exercise of " the office, even if the trust be accompanied with a power, as, ' ' of signing receipts, the continuing trustee may administer the trust without the concurrence of the trustee who has chosen to renounce, and without the appointment of a new trustee (6). The settlor, it is said, must be presumed to know what the legal consequences of the death or disclaimer of some of the trustees would be (c) ; and when the disclaimer has been executed, it operates retrospectively, and makes the other trus- tee the sole trustee ab initio (d). But in personal contracts the rule is different, for where A. Disclaimer of personal con- covenants with B., C, and D. as trustees, and B. disclaims, tracts. C. and D. do not take the joint covenant, and cannot sue with- out B. (e) If trustees are also appointed protectors of the settlement, Disclaimer of and they intend to disclaim the protectorship, the deed of disclaimer must, by the Fines and Eecoveries Act, be enrolled, in Chancery (/). II. Of Acceptance. A trustee may accept the office either by signing the trust How trust ac- deed(5r), or by an express declaration of his assent (/i), or by proceeding to act in the execution of the duties of the trust. If a person named as a trustee has, during a long period. Presumption of done nothing at variance with the acceptance of the office, the Court, until the contrary be shown, presumes that he has accepted it (i). (a) Bonifant v. Oreenfield, Cr. (c) Browell v. Reed, 1 Hare, El. 80 ; Crewe v. Dicken, 4 Ves. 435, per Sir J. Wigram. 100, per Lord Loughborough ; Small (d) Peppercorn v. Wayman, 5 y\Marwood, 9 B. & C. 299 ; Freem. De Gex & Smale, 230. 13, ease 111 ; Hawhins v. Kemp, (e) Wetherell v. Langston, 1 3 East, 410 ; Townson v. Tickell, 3 Eich. 634. B. & A. 31 ; Browell v. Beed, 1 (/) 3 & 4 "W. 4. c. 74, s. 32. Hare, 435, ^er Sir J. Wigram ; and {g) See Buckeridge v. Glasse, 1 see Nicloson v. Wordsworth, 2 Sw. Cr. & Ph. 131, 134. 369. (A) See Doe v. Harris, 16 Mees. (6) Adams v. Taunton, 5 Mad. & "W. 517. 435 ; Cooke v. Crawford, 13 Sim. (i) In re Uniacke, 1 Jon. & Lat. 96 ; Bayly v. Cumming, 10 Ir. Eq. 1 ; In re Needham, ib. 34 ; and see Eep. 410; Hawkins v. Kemp, 3 JamesY. Frearson,lY.&C.Ch..Ca,. ' East, 410. 370 ; Doe v. Harris, 16 M. & W. 522. acceptance. 238 ACCEPTANCE OF THE TEUST. [CH. X. Recitals. Of acceptance under hand and If the trustee execute the deed, he should see that the re- citals are correct. If it be stated, for instance, that stock has been transferred into the name of the trustee, he should ascer- tain that such is the truth, or the Court may hold him liable for the consequences. However, in a late case (a) where, not- withstanding the recital to the contrary, it was suggested that no stock had ever been in existence, the Master of the Eolls observed, " I cannot say that the trustees are bound by the recital of that fact contained in the deed. We have had so many instances of parties representing that they were entitled to particular property, and which representation has afterwards turned out to be wholly untrue, that it would be unjust and dangerous to bind third parties by such representations ; and I am not aware that it has ever been held that trustees are bound by the representations of parties about to be married, of the state of their property. I do not, therefore, accede to the argument, that the recital alone binds the trustees." With respect to the liabilities of the trustee, it is perfectly immaterial to him whether he declare his acceptance of the of&ce or his consent be implied, for in each case the obligations imposed upon him are precisely the same (6). In the event of a breach of trust the consequences to the parties beneficially interested may admit of a slight variation. A breach of trust creates per se a simple contract debt only (c) ; but, if the trustee has agreed, under his hand and seal, to execute the trust, this amounts to a covenant even though the heirs be not named, and the breach of trust, thus becoming a specialty debt, wiU, in legal assets, take precedence of simple contract debts {d). However the mere fact of a trustee being made a party to and executing a deed appointing him to that office, will not of itself amount (a) Bateman v. Hotchhin, 10 Beav. 418. I have been informed by one of the counsel in the cause that in Bliss v. Bridgwater, at the Rolls, many years ago, Sir J. Leach held differently; and see Oore v. Bowser, 3 Sm. & Gif. 6. (J) See Lord Montfort v. Lord Cadogan, 19 Ves. 638. (c) Vernon v. Tawdry, 2 Atk. 119; S. G. Barn. 280; Cox v. Bateman, 2 Yes. 19; Kearnan v. Fitzsimon, 3 Ridg. P. C. 18. (d) Wood V. Hardisty, 2 Coll. 542 ; Gifford v. Manley, For. 109 ; Mavor v. Davenport, 2 Sim. 227; Benson v. Benson, 1 P. W. 131 ; Deg v. Deg, 2 P. W. 414; Turner V. Wardle, 7 Sim. 80 ; Primrose v. Bromley, 1 Atk. 89 ; Cummins v. Cummins, 3 Jones & Lat. 64 ; see Baily v. Bhins, 2 Dick. 632. CH. X.] ACCEPTANCE OF THE TRUST. 239 to a covenant on his part to execute tjie trusts, if the deed do not contain any words which can be construed a covenant at law (a) ; and if the deed do contain such words, yet the trustee cannot be sued upon covenant if he has not executed the deed ; though, of course, after accepting the trust he will be liable for a breach of contract, as for a simple contract debt (h). If he has executed the deed, it is not necessary, in order to make it a covenant, that there should be the words covenant or agree, but the word declare will suffice (c). If the trustee has covenanted for himself and his heirs, a remedy then lies at common law against the heir in respect of estates descended ; and by 3 W. & M. c. 14, the like remedy was enacted against the devisees of the debtor ; but this was only where the spe- cialty would have supported an action of debt, as in the case of a bond, and did not apply to a covenant, by which, not a debt was created, but damages were recoverable (d) ; but the 11 G. 4. & 1 Gul. 4. c. 47, has now perfected the remedy by extending it to the case of a covenant. A still more recent statute (e) has declared that the lands of a debtor shall be liable to all his debts, whether on simple contract or on specialty ; but spe- cialties, where the heir is bound, are still made to take pre- cedence of simple contract debts, and specialties where the heir is not bound. What acts of a person nominated as trustee will amount to Of acceptance ty a constructive acceptance of the office, is a question constantly trust. arising, and not easily to be determined by any general rule. If a person named as executor take out probate of the wiQ, Effect of probate, he thereby constitutes himself executor, and incurs all the liabilities annexed to the office (/). But it was held in one (a) Adey v. Arnold, 2 De Gex, 1 Bing. N. C. 433 ; Cummins v. Mac. & Gord. 433 ; Wynch v. Grant, Cummins, 3 Jones & Lat. 64 ; 8 Ir. 2 Drewry, 312. It appears from the Eq. Rep. 723. latter case, that in Adey v. Arnold {d) Wilson v. Knuhley, 7 East, the trustee had executed the deed, 127. a circumstance not jnentioned in the (e) 3 & 4 W. 4. o. 104. report of Adey v. Arnold. (/) Booth v. Booth, 1 Beav. 125 ; (5) Richardson v. Jenkins, 1 Ward v. Butler, 2 Moll. 533, per Drewry, 477 ; Vincent v. Godson, Lord Manners ; Stiles v. Guy, 1 1 Sm. & Gif. 384. Mao. & Gord. 431, per Lord Cotten- (c) Bichardson v. Jenkins, uhi ham; Scully v. Delany, 2 Ir. Eq. supra ; and see Saltoun v. Houston, Re. 165. 240 ACCEPTANCE OF THE TEUST. [CH. X. Where the exe- cutor is also named as devisee upon trust. Two trusts in same instrument. Acting in the executorship. Effect of adminis- tration where executorand trus- tee renounces. case, that A. having after probate received part of the assets transmitted to him by the post, and handed over the money to B., the acting executor, was not liable ; the receipt by A., in the first instance, not being his own act, and the transmission to B. being merely consequent upon the receipt (a). If the office of executor is, by the will, clothed with certain trusts, it is not competent to a person named as executor to -prove the will and thereby make himself an executor, and then to reject the obligations that are knit to the office. Thus, if a testator direct that his " executors " shall get in certain out: standing effects to be applied to a particular purpose, a person cannot make himself executor by proving the will, and refuse the trusts (6). 4f^*s-e^.^-v-^-*~- <«»i»v^ f^^t.^--^'^^'" #*i?-, • - And if an executor be also designated as trustee of the real estate, he cannot desert the situation of trustee, and accept only that of executor, for the acting as executor is an acceptance of the entire trusteeship (c). And if a person, by the same instrument, be nominated trustee of two distinct trusts, he cannot divide them, but if he accept the one, he wiU be deemed to have accepted the other (d). And if an executor act in any part of the executorship, as by signing a power of attorney to get in part of the testator's estate (e), he brings down the whole burden upon him, though at the time of acting he disclaim the intention of assuming the office generally (/). If A. be named as executor and trustee, and he renounces probate and disclaims the trust, and B. takes out letters of administration with the wiU annexedj..B., though he thus becomes the personal representative, is not also trustee in any other sense than as holding the surplus assets after the ordinary administration, with notice of a trust. A proper trustee can only be appointed by the institution of a suit for (a) Bakhen v. Scott, 2 Ves. jun. 678. (6) MueMow v. Fuller, Jao. 198 ; and see Booth v. Booth, 1 Beav. 125 ; Williams v. Nixon, 2 Beav. 472. (c) Ward V. Butler, 2 Moll. 533. N. S. 80. ((?) Urch V. Walker, 3 M. & C. 702. (e) Cummins v. Cummins, 8 Ir. Eq. Rep. 723. (/) Doijle V. Blahe,1%ab.. & Lef. 231 ; but see Maky v. Bdge, 2 Jur. CH. X.] ACCEPTANCE OF THE TEXJST. 241 the purpose, unless such a case was specially provided for by the power of appointment contained in the will. If a person be named as trustee in a settlement, but he does Taking custody not execute it and declines to act ; he, of course, will not be an acceptance of deemed to have accepted the trust by merely taking the settle- *™^*- ment into his custody untU a trustee can be found (a). Any voluntary interference with the assets, whether with or Voluntary inter- without probate, will stamp a person as acting executor. Thus, ^tsets is"accep- where of four executors one onlv proved, and the other three ^^"^ °^ *?■? •'_ ^ executorship. gave a letter of attorney describing themselves as executors to the fourth, described as acting executor, to receive a quantity of stock, Lord Hardwicke ruled that the whole number, by this conduct, had drawn upon themselves the burden of the executorship (&). So the joioing in an assignment of the testator's lease (c), or Acts of accept- the bringing an action ia the course of executing the trust (d), is an acceptance of the office, and an executor and trustee for sale will be deemed to have acted in the trust, if the property be sold by direction of the trustees, and he is present, and takes part, and exercises authority or ownership by giving orders respecting the sale, and afterwards calls on a co-executor to inquire into the state of the testator's accounts (e). In Orr v. Newton (/), A., one of six executors, admitted in Orr v. Newton. his answer that during the life of B., another of the executors, and who had alone taken out probate, he had assisted in writing letters to the co-executors towards collecting the testator's estate, and it was proved that A. had written on behalf of him- self and his co-executors to a debtor of the testator requiring payment. Lord Camden, notwithstanding these circumstances, observed in his argument, that " B. undertook to act solely, and did act solely until he died," implying that A. had, by his con- duct, not assumed the character of executor. But the case (a) JEvansY. John, 4 Beav. 35, (d) Montforty. Cadogan, 17 Ves. ( 6) Harrison v. Graham, 3 Hill's 489. MSS. 239 ; 8. C. cited Churchill v. (c) James v. Frearson, 1 Y. & C. LadyHolson, 1 P. W. 241, note [y), Ch. Ca. 370 ; see 375, 377. 6th ed. ; White v. Barton, 18 Beav. (/) 2 Cox, 274; see Lowry v. Ful- 192. ton, 9 Sim. 122. (c) Urch V. Walker, 3 M. & Cr. 702. 248 ACCEPTANCE OP THE TRUST. [CH. X. was one of " cruel persecution " against A. ; and his Lordship put the fairest possible construction upon all that A. had done : and besides, Lord Camden might only have meant that B. was substantially the sole acting executor, without adverting to the question, whether the interference of A. ought not, in strict legal construction, to be held an acceptance of the executorship. Interference not The rule, that every voluntary interference with the subject- acceptance where , , .,, , • , , , ,-,,■, clearly referribie matter Will convert a person mto a trustee, must be taken with thantXtance!^ *^^^ qualification, that the interference is not such as to be plainly referribie to some other ground than the part execution of the trust. Thus A., B., and C. were named as executors and trustees, and A. alone proved the will and administered, and sold certain chattels to B., and afterwards applied to B. as the friend of the family for advice ; B. in consequence nego- tiated the sale of the testator's property, and became a pur- chaser of part himself, taking the conveyance from A. the tenant for life and the heir-at-law, under the impression that the devise to A., B., and C. (as B. and C. did not act in the trust) had become inoperative. On A.'s death B. expressly renounced the executorship. A bill was filed under these cir- cumstances against B., as having acted in the trust, and mis- conducted himself in that character ; but Sir J. Leach was clearly of opinion, that " B. had never interfered with the property, except as the friend or agent of the widow. It was true he had never executed a deed disclaiming the trust, but his conduct had disclaimed the trust. In the purchase of the small real estate made by him he had taken by feoffment from the widow and eldest son of the testator, in whom the estates could only have vested by the disclaimer of the trustee ; " and his Honor dismissed the biU with costs (a). Trustee may not But if a trustee act ambiguously he cannot afterwards take and the^nTs"''^' advantage of the doubt, and say he acted not as trustee, but '''*™- in some other character. Thus, a testator devised that the produce of a plantation should be consigned to A. and be employed by him upon certain trusts, and A. with full notice (a) Stacey v. Mph, 1 M. & K. Euss. & Myln. 231 ; S. C. Taml. 195 ; and see Dove v. Eoerard, 1 376 ; Lowry v. Fulton, 9 Sim. 115. CH. X.] ACCEPTANCE OF THE TRUST. 343 of the will received the produce of the estate, and then pleaded that he been acting merely as factor or agent ; but Lord Hardwicke said it was incumbent on the trustee if he would not have acted to have refused, and not, going on in that ambiguous way, to leave himself at liberty to say he acted as trustee or not (a). Upon the question of acceptance or non-acceptance of the Parol evidence. office, of course parol evidence is admissible as on any other issue (6). "Where a fund is given to a person upon certain trusts, and Executor con- . . Ill verting himself he IS appointed executor, as soon as he has severed the legacy into a trustee. from the general assets, and appropriated it to the specific purpose, he dismisses the character of executor, and assumes that of trustee (c). Indeed the assent of the executor to the legacy, however proved, converts him into a trustee (d ). If a person be asked and consent to become a trustee of a One nominated a . . , , . trustee may sue marriage-settlement, and thereupon his name is introduced into as such without articles as the basis of the settlement, he may sue the parties ^l^^^'^ ^"^^ ' bound by the articles for specific performance, though he may not have executed any written instrument declaratory of his acceptance of the trust (e). As soon as a trustee has accepted the office, he must bear Duties oonse in mind that he is not to sleep upon it, but is required to take an active part in the execution of the trust. The law knows not such a person as a passive trustee. If, therefore, an unprofessional person be associated in the trust with a professional one, he must not argue, as is often done, that because the solicitor is better acquainted with business and with legal technicalities, the administration of the trust may be safely confided to him, and that the other need not interfere except by joining in what are called formal acts. [a) Conyngham v. Conyngham, 1 C. 309; Byrehall v. Bradford, 6 Ves. 522; Montgomery v. Johnson, Mad. 13; /S. C. ib. 235 ; Ex parte 11 Ir. Eq. Kep. 476; see Zowry y. Dover, bBiva. 500; Ex parte Wilkin- Fulton, 9 Sim. 115; Boe v. Harris, son, 3 Mont. & Ayr, 145 ; see WilU 16 M. & W. 517. inott v. Jenkins, 1 Beav. 401. (6) See James v. Frearson, 1 Y. (d) Dix v. Burford, 19 Beav. & C. Ch. Ca. 370. 409. (c) PUllipo V. Munnings, 2 M. & (e) Cook v. Fryer, 1 Hare, 498. R 2 quent on accept- ance. 244 ACCEPTANCE OF THE TRUST. [CH. X. If he sign a power of attorney for sale of stock, or execute a deed of reconveyance on repayment of a mortgage sum, he is as answerable for the money as if he were himself the solicitor and had the sole management of the transaction. A trustee on Again, when a trustee has entered upon the trust, he is inform himself bound at once to acquaint himself with the nature and parti- the trust. ^ ° cular circumstances of the property, and to take such steps as may be necessary for the due protection of it. Thus he is not liable for the defaults of any predecessor in the trust, but if the fund is in danger, and not in the state in which it ought to be, the Court will presume him to have made proper in- quiries, and will hold him responsible if he does not take such measures as may be called for (a), inventoiy. So E trustee of chattels personal for the separate use of a wife must take care, on accepting the trust, to have the effects ascertained by a proper inventory, or in a suit for an account of the trust estate he may be deprived of his costs (&). Part of the trust If part of the Original trust estate is supposed to be lost, or is not forthcoming, the Court will not appoint new trustees of the residue, so as to make them partial trustees only, but will appoint them trustees generally, and if required will at the same time, for the protection of the trustees, direct an inquiry whether any part of the trust fund has been lost, and what steps should be taken for its recovery (c). A trustee by 'W'e may add in conclusion, that if a person by mistake or mistake. . •' i- J otherwise assume the character of trustee, when it really does not belong to him, he may be called to account by the cestuis que trust, for the monies he received under the colour of the trust. Thus, when a testator devised an estate to W. Thompson upon certain trusts, with a power of sale to him, his heirs and assigns, and the trustee devised all his real estates to his sister, Grace Thompson, charged with 50l. to his friend Watson, and died leaving his brother Jonas Thompson his heir-at-law, and, on the death of the trustee. (o) See Townley v. Bond, 2 Conn. ( h) England v. Downs, 6 Beav. & Laws. 405 ; James v. Frearson, 1 269 ; see 279. Y. & C. Ch. Ca. 370 ; and see Maky (c) Bennett v. Burgis, 5 Hare, V. Edge, 2 Jur. N. S. 80; bxit qucere. 295. CH. X.] ACCEPTANCE OF THE TRDST. 345 Grace Thompson assuming to be devisee, sold the estate and received the money and paid it wrongfully to the tenant for life ; in a suit against the representative of Grace Thompson, the Court held, although she was neither heir nor devisee, yet as she had acted as trustee and received the money in that character, she was accountable for it to the cestuis que trust (a). (a) Rackham v. Siddall, 16 Sim. on appeal as to the point under eon- 297; affiimed by the Lord Chancellor sideration, 1 Mac. &Gord, 607. CHAPTER XL OF THE LEGAL ESTATE IN THE TRUSTEE. Upon this subject we propose to treat, First. Of vesting the legal estate in the trustee ; Secondly. Of the properties and devolution of the legal estate ; and Thirdly. Of the question what persons taking the legal estate will be bound by the trust. SECTION I. OF VESTIKS THE LEeAL ESTATE IN THE IBTJSTEE. I. Of the legal estate in the trustee with reference to the statute of Uses. Statute of Bses. In the case of a simple trust, as the statute of Henry the Eighth operates upon the first use, whether designated in the instrument as a use or trust, if a conveyance or devise be to A. and his heirs " ia trust" for B. and his heirs, the posses- sion will be executed in B. (a) ; and the statute must operate, notwithstanding the intention of the settlor to the contrary, for the will of the subject cannot control the express enact- ment of the legislature (6). In order, therefore, to prevent the legal estate from being executed in the cestui que trust, it is necessary to vest in the trustee not only the ancient common law fee, but also the primary use, as, by conveying or devising (a) As in Austen v. Taylor, 1 Ed. Chambre & Gibbs laid a stress on 361 ; Mohinson v. Orey, 9 East, 1, the testator's intent, but Judge &o. See Broughton v. Langley, 2 Heath referred the case to the true Salk. 679 ; Chapman v. Blissett, principle, viz. that the trustees hav- Cas. t. Talb. 150, ing a duty to perform, it was a (6) See Carwardine v. Carwar- trust special, and so out of the sta- dine, 1 Ed. 36. In Gregory v. tute. Henderson, 4 Taunt. 772, Judges CH. XI. S. 1.] STATUTE OF USES. 247 " to the trustee and his heirs to the use of the trustee and his heirs (a)," or " unto and to the use of the trustee and his heirs (6) ;" for although by this form of limitation the trustee will be in by the common law, yet, as the use and the posses- sion are both vested in the trustee, the trust over, as not being the primary use, will not be affected by the statute. But special trusts are not within the purview of the act (c) ; Special trusts J ,■■ J. .» , . T ji i , 1 not within the and thereiore, it any agency be imposed on the trustee, as by act. a limitation to A. and his heirs, upon trust to pay the rents (cf), or to convey the estate (e), or if any control is to be exercised, or duty to be performed, as in the case of a trust to apply the rents to a person's maintenance (/), or in making repairs (g), to hold for the separate use of a feme covert (h), or to preserve contingent remainders (i), and a fortiori if to raise a sum of money {k), or to dispose of by sale (l), in all these cases as the trust is of a special character, the operation of the statute of uses is effec- tually excluded. But if an estate be released by deed to A. and his heirs " upon trust," after the marriage of relessor "■ for her and her assigns for life, for her own sole and separate use," but no active duty in respect of the separate use is expressed to be reposed in the trustee personally, a common (a) Mobinson v. Comyns, Eep. t. Talb. 154; Attorney-General v. Scott, id. 138 ; Hopkins v. Hopkins, 1 Atk. 589, per Lord Hardwioke. (5) Doe v. Passingham, 6 B. & C. 305 ; Doe v. Field, 2 B. & Ad. 564; Harris v. Pugh, 12 Moore, 577 ; 8. C. ^ Bing. 335 ; Rackham V. Siddall, 1 Mao. & Gord. 607. (c) See Introduction ; and see Wright v. Pearson, 1 Ed. 125 Mott V. Buxton, 7 Ves. 201. ((^ Pobinson v. Grey, 9 East, 1 : Symson v. Turner, 1 Eq. Ca. Ab, 383, note, 3d resolution; Garth v, Baldwin, 2 Ves. 646 ; Chapman v. Blissett, Cas. t. Talb. 145 ; Barker V. Greenwood, 4 M. & Wels. 429 Anthony v. Bees, 2 Cr. & Jer. 75 White y. Parker, 1 Bing. N. C. 573; and see Boe v. Homfray, 6 Ad. & Ell. 206; Kenrick v. Lord Beau- clerk, 3 Bos. & Pull. 178 ; Nevil v. Saunders, 1 Vern. 415 ; Jones v. Say 8f Seal, 1 Eq. Ca. Ab. 383. (e) Garth v. Baldwin, 2 Ves. 646 ; Boe V. Field, 2 B. & Ad. 504 ; Boe v. Fdlin, 4 Ad. & Ell. 582. (/) Sylvester v. Wilson, 2 T. 11. 444; Boe v. Edlin, 4 Ad. & Ell. 582. [g) Shapland v. Smith, 1 B. C. C. 75. {h) Harton v. Harton, 7 T. E. 652 ; and see Nevil v. Saunders, 1 Vern. 415 ; Jones v. Lord Say Sf Seal, 1 Eq. Ca. Ab. 383 ; Boe v. Claridge, 6 Com. B. Re. 641. («') Biscoe v. Perkins, 1 V. & B. 485 ; and see Barker v. Greenwood, 4 M. & W. 431. {k) Wright Y. Pearson, I Ed.. U9; Stanley v. Lennard, 1 Ed. 87. {I) Bagshaw v. Spencer, 1 Ves. 142. Si"? Z5TATE TAKEX [CH. XL 8. 1. law court rejects the sole and separate use as an estate known only in equity, and holds the legal estate for life to be executed in the relessor (a). Trust to "pa- And if the trust be simply to "permit and suffer A. to A. to reeecK," receive the rents (h)," the legal estate is executed in A- Hott- tS ^u"^^ ^ ever, if the lands be devised to three persons and their heirs in trust, to permit A. to receive the net rents for her life for her own use, and after her death to permit B. to receive tiie net rents for her life for her sole and separate use, with remainder over and a power of sale to the trustees, it has been held that the legal estate is in the trustees, for that Ihey are to receive ihe rents, and thereout pay the land-tax and other charges on the estate, Mid hand over the net rents only to the tenant for life (c). Qiar.-5 rf ^*a. If the legal estate be limited to the trustees charged with dehtg, and subject thereto in trust for A., but no direction to Hie trustees personally to pay the debts (<7), here as the trustees have no agency assigned to them, but merely stand seized in trnst, the statute will operate, and execute the possession in A. Doe r. ?r::ji;'ji. And where copyholds were devised to trustees during the ^^ mincritv of ihe testator's son, "the same to be transferred ,^*ife> 0f^^^2^/io him" when he attained twentj-'One, and if he died under ^^3. twenty-one the testator gave the estate over, it was held that the trustees took a chattel interest only, until the son attained tvrentr-one, and that the copyholds then vested in the son- It was said, that if the derise were to the son on attaimiig twenty-one vdthout the intervention of trustees, the admission of the son as tenant on the rolls would operate as a tT'inifer of the estate, and that the words " the s^ne to be transferred" did not imply that the trustees were to transfer [a) Wmiam* v. Waier$, 14 M. & v. Greentcood, 4 M. & W. 429, jwr TV. 166. Parke, B. {hj Boughtan v. Langley, 1 Eq. (e) Barker t. Greenwood, 4 IL & Ca. Al. 383; S. C. 2 Salk. ■5:^:' : W. 421 ; JFXtfev. Parlsir, 1 Bing. oTimlm? Burehett t. iJurd^nt, 2 y. C. 573. Vii:t311; Bightv. Smith,\-2'Ea^ [d] Kenrick x. Lord Beamlerl, 4oo ; Waggtaff v. Smith, 9 Tes. 3 B. & P. 175 ; X:-net-f. lord Sag o24. per Sir TV. Grant ; Gregory t. St Seal, S Tin. 2€2. In tai= case Ihe Benderton, 4 Tatirt. IIZ, per'SsaiiL, remai^ 'jht was given to the trustees J. ; Warter v. ffutehinum, 5 Moor. -^yjzi tmrt subject to the annnitifs, 143 ; *. C. 1 B. 4: C. 721 : Barker ziA was held tfj he eieented. CH. XI. 8. 1.] liY THE TKUSTEE. 249 the legal estate (a). This construction appears somewhat forced, as tho estate is not transferred by the admission, but by the surrender. However, the estate remains in the sur- renderor wntil the admission of the surrenderee, though it then operates retrospectively from the date of the surrender. Where the trust was " to pay unto or permit and suffer a Tru»t to pay person to receive" the rents, as the former words would have "^i*™"*' *'*■ created a special trust, and the latter would have been con- strued a use executed by the statute, the Court determined, for want of a better reason, that the former or latter words should prevail, as the instrument, in which they were found, happened to be a deed or a will (b). II. Of the legal estate in the trustee as governed by the object and scope of the trust. As legal limitations are properly cognisable by a common- General mieg. law court, it might naturally be supposed that the construction put upon the instrument would stand wholly unaffected by the circumstance of the creation of the trust. But as the effect of a deed or will is to be ruled by the intention, and every person in limiting an estate to a trustee must be guided by the equity he proposes to raise upon it, the Courts, as well of common law as of equity, were necessarily led to enter upon the consideration of the trust, in order to measure the extent of the legal interest by the scope and object of the equitable (c). The following rules of construction have been adopted by the Courts in reference to this branch of our subject, and, except so far as they are controlled by the positive enactments of the late Wills Act{d), must still be resorted to for guidance. First, Wherever a trust is created, a legal estate sufficient for the execution of the trust shall, if possible, be implied: Secondly, the legal estate limited to the trustee shall not be carried farther than the complete execution of the trust necessarily requires. 1. To illustrate the first of these rules, the Court has in Legal estate sup- plied in toto on / («) JDoe V. Nicholh, \ B. & Or. by a court of law, see Sims v. Mar- 336. ryat, 17 U. B. Kep. 292 ; May y. (b) Doe V. Bir/gH, 2 Taunt. 109. Taylor, 6 Mann. & Gr. 261. (c) As to the cognisance of trusts (d) 1 Vict. c. 26, ss. 30, 31. 250 ESTATE TAKEN [CH. XI. S. 1. account of the trust. Implied devise in the word "trustee." Legal estates enlarged. Trust to sell con- fers a fee. some instances swpplied the estate in toto ; as where a testator had devised to a feme covert the issues and profits of certain lands to be paid by his executors, it was held the land itself was devised to the executors in trust to receive the rents and profits to the use of the wife (a). If a testator simply appoint a person his executor and trustee, it seems the latter word is not so exclusively appUed to real estate, as to carry by implication to the executor a devise of the testator's freeholds, but if the testator direct certain acts to be done by the trustee which belong to the owner of the freeholds, such a devise will be implied (6). And so if the testator appoint a person his " trustee of inheritance," which is equivalent to making him the trustee of his inherit- able property (c). And if a testator constitute a trustee by wUI, and devise the legal estate to him, and then by a codicil "nominates and appoints another person to be trustee" in his place, the codicil not only confers the office of the trustee- ship, but also carries the legal estate with it (d). In other cases the Court has extended the estate, as where the devise was to three trustees, and the survivor of them, and the executors and administrators of such survivor, upon trust to pay certain annuities for lives, it was ruled that the trustees took an estate for the several lives of ilie annuitants (e). If land, said Lord Hardwicke, be given to a man without the word heirs, and a trust be declared which can be satisfied in no other way but by the trustees taking an inheritance, it has been construed that a fee passes (/). Thus a trust to sell {g), (o) Sush V. Allen, 5 Mod. 63 Doe v. Homfray, 6 Ad. & Ell. 206 and see OatesY. Cooke, SBiir. 1684 Sir "W". Black. 543 ; Boe v. Wood- home, 4 T. K. 89. (J) Oates V. Coohe, 3 Burr. 1684 ; Bush V. Allen, 5 Mod. 63 ; Anthony V. -Bees, 2 Cr. & Jer. 75 ; Doe v. Shotter, 8 Ad. & Ell. 905. (e) Trent v. Sanning, 1 B. & P. New Eep. 116 ; 10 Ves. 495 ; 7 East, 95 ; 1 Dow. 102 ; Doe v. Pratt, 6 Ad. & Ell. 180. {d) Re Hough's Will, 4 De Gex & Sm. 371. (e) Doe V. Simpson, 5 East, 162; and see Atcherley v. Vernon, lO Mod. 523 ; Oates v. Coohe, 3 Bur. 1684; ShawM. Weigh, 2 Str. 798; Jenkins v. Jenkins, Willes, 650. In Doe V. Simpson a life estate only was implied, as the trustee was merely such. ; but in Jenkins v. Jen- kins, the trustee being also interested beneficially, the construction was more liberal, and it was thought the fee simple passed. (/) Villiers v. VilUers, 2 Atk. 72. [g) Shawv. Weigh, 2 Str. 798; CH. XI. S. 1.] BY THE TRUSTEE. 251 even on a contingency (a), confers a fee simple as indispen- sable to the execution of the trust; and the construction is the same in a sale implied, as where the devise is upon trust out of the rents and profits of an estate to discharge certain legacies made payable at a day inconsistent with the applica- tion of the annual profits only (6). But a power of selling will not be implied by a limitation Charges not im- . . plying a power to a trustee, or to a trustee, his executors and aommistrators, of sale. upon trusts to pay debts and legacies generally (c), or {semble) to raise a sum of money (cZ). In such cases, where nothing in the context implies the limitation of the fee, a chattel interest only will pass. But, if a greater estate be limited expressly, as by a devise to A. and his heirs upon trust to pay debts, the Court has no jurisdiction' to cut down the expression and reduce the estate to a chattel (e) ; though if a chattel interest be carved out of the fee and be so limited, the word " heirs" may be rejected as inconsistent with the estate, as where lands are devised to trustees and their heirs, until an infant attains twenty-one, and then to the infant in fee(/). If an estate be granted to two, and the survivor of them, Grant to two and and the heirs of such survivor, they are not joint tenants in fee, survivor. but take a freehold for their joint lives, with a contingent remainder to the one that may happen to survive. The same construction will be put upon a devise expressed simply in the same terms without any trust annexed, or even if there be Bagshaw v. Spencer, 1 Ves. 144, per C. J. ; Hoberts v. Bixwell, 1 Atk. Lord Hardwioke ; and see Glover v. 609, per Lord Hardwioke. Monckton, 3 Bing. 13; 10 Moore, {d) Doe y. Simpson, 5 ~S.aat,\Q1; 453. As to Hawher v. Hawker, 3 and see Bosworth v. Forard, 0. B. & Aid. 537, and Warier v. Bridg.E.ep.167; Thomason\.Mach- Hutehinson, 5 Moore, 143, S. C. 1 worth, id. 507 ; Co. Lit. 42 a, note B. & C. 721, see remarks infra, (7), Butler's ed. pp. 256, 257. (e) Wrights. Pearson, 1 Ed. 119, (a) Gibson v. Lord Montfort, 1 see p. 123. Tes. 485, see p. 491. (/) Goodtith v. Whithy, 1 Burr. (5) Gibson v. Lord Montfort, uhi 228 ; Doe v. Lea, 3 T. R. 41 ; War- supra, ter v. Hutchinson, 1 B. & C. 721 ; (c) Co. Lit. 42 a ; CordaVs ease, and see Achland v. Lutley, 9 Ad. & Cr. El. 315; Carter y. Barnadiston, Ell. 879; but see Lethieullier v. 1 P. "W. 505 ; Hilchins v. Hilchins, Tracy, 3 Atk. 780, Fearne's C. K. 2 Vern. 403 ; Doe v. Simpson, 5 226, Butler's note. East, 171, iier Lord EUenborough, 25a ESTATE TAKEN [CH. XI. S. 1. Legal estate cur- tailed from the nature of the trust. a trust, provided the nature of it do not require the fee simple to he vested in the trustees {a). But if such a devise, even to beneficiaries, he coupled with words pointing to a joint tenancy, that construction will be adopted, as if the gift be to two and the survivor of them and their heirs (6), or to them as joint tenants, and the survivors and survivor of them, and the heirs and assigns of such survivor (c). And if the devise he to two and the survivor of them, and the heirs of such survivor, upon trusts that require the fee simple to be vested in the trustees, or upon trust for sale, the prevailing opinion is, that notwith- standing the old case of Vick v. Edwards (d) to the contrary, the Courts would compel a purchaser to accept a title on the assumption that the trustees took the fee simple (e). Whatever doubts, observes Butler, were formerly entertained, it now appears to be the settled opinion of the profession that a devise to two and the survivor of them, and the heirs and assigns of such survivor, enables the trustees to vest the fee in the purchaser, and that titles under such a devise are accepted with a conveyance from the trustees and without the concurrence of the heir "(/). 2. To illustrate the second rule, if an estate be devised to A. and his heirs upon trust to permit B. to receive the rents during his life, and on his death to convey to C. in fee, here the legal estate for the life of A. is vested in B., and the remainder only in the trustee (g). On the other hand, if an estate be devised to A. and his heirs in trust, to pay the rents to B. for his life, and on his death the testator devises the estate to C. in fee, here the legal estate for the life of B. is in the trustee, and the legal estate in the remainder is vested in C. (h) So where a copyhold was devised to A. and his heirs upon trust for the separate use of a feme covert during her [a) Re Harrison, 3 Anst. 836. (5) Doe V. Sotheron, 2 Bar. & Ad. 628 ; Oahley v. Young, 2 Eq. Ca. Ab. 537. (c) Ooodtitk V. Layman, Fearne's C. R. 358. (d) 3 P. W. 372. («) See Doe v. Ewart, 7 Ad. & Ell. 636 ; Doe v. Sotheron, 2 Bar. & Ad. 628. (/) Co. Lit. 191 a. note 1 ; and see Fearne's C. R. 358. [g] X»oev.£oZfe»,U Ad.&EI1.188; Adams v. Adams, 6 Q,. B. Eep. 860. [h) Adams v. Adams, 6 G. B. Eep. 860 ; Cooke y.Blake, 1 Bxoh. Rep. 220. CH. XI. S. l.J BY THE TRUSTEE. 253 life, and after her decease in trust as the feme should appoint, and in default of appointment to the testator's right heirs, it was thought hy Judge Heath that the trustee took a base fee determinable on the life of the feme, and by Judge Chambre, ihat the devise amounted only to an estate pur autre vie (a). But it seems that such a limitation in a deed, where the con- struction is narrower, would have conferred the fee simple (b). So in a devise to A. for life, remainder to trustees and their Limitation to heirs to preserve contingent remainders (the words "during heirs to preseiTe the life of A." being omitted), with remainders over, the ^°*^dfrtte' trustees were construed to take not a fee simple, but an estate ''ords " during ^ . the life of," &c. for the life of A. (c) And Sir W. Grant expressed himself heing omitted. in favour of a similar construction where the instrument was a deed {d) : but it has since been decided that in the latter case a fee simple passes (e), unless it be quite clear upon the face of the deed itself that thft words " during the life of A." were meant to be in the deed, and are wanting through inadvertence (/). Of course there can be no such restriction of the estate by implication wherar the natural sense of the words admits of a fair and reasonable construction, as if before the late Act the fee in the trustees would have supported any contingent limitations that would otherwise have been left at the mercy of the tenant for life (g). Upon the principle we are now considering, if the legal Where legal es- ,. .,,.,. iii tate is in trustees estate be given to trustees, and their heirs, upon a trust not upon a partial executed by the statute during the life of A., and after A.'s ^^^i^^^^q^Tta- decease to uses in strict settlement, the vesting of the estate We interest may (a) JDoeY.£arthrop,5Ta.nnt.382, {d) Curtis y. Price, 12 Yes. 89 ; and see Wardy. Burbury, 18 'Rea.Y. but see Wykham v. Wykham, 18 190 ; Doe d. Players v. Nicholls, 1 Ves. 419, and following pages. B. & Cr. 342 ; Doe v. Cafe, 1 Exch. (e) Colmore v. Tyndall, 2 T. & J. Rep. 675. 605, (6) Wykham v. Wykham, 11 East, (/) Beaumontx. Marquis of Salis- 458 ; see 8. C. 18 Ves. 419, and fol- hury, 19 Beav. 198. lowing pages. {g) Venahles v. Morris, 7 T. R. (c) Doe V. Hicks, 7 T. K. 433 ; 342, 438 ; and see Curtis v. Price, as to Boteler v. Allington, 1 B. C. 12 Ves. 100 ; Doe v. Hicks, 7 T. E. C. 72, see Doe v. Hichs, 7 T. R. 437 ; Bochford v. Fitzmaurice, 1 435, and Wykham v. Wykham, 18 Conn. & Laws. 169 ; 2Dnir.&Warr. Ves. 418 ; and see Nash v. Coates, 16. 3 B. (& Ad. 839. 254 ESTATE TAKEN [CH. XI. S. 1. be executed ty the statute of uses. Jones V. Lord Say & Seal. "Warter v. HutcMnson. in the trustee during the life of A. will not prevent the opera- tion of the statute in executing the uses in remainder (a). Thus, in the much disputed, but, as it appears, rightly- decided case of Jones v. Lord Say <& Seal (b), where a testatrix devised to trustees and their heirs upon trust to pay the legacies, devises, and bequests thereinafter mentioned (some life annuities only were given), and to pay the residue of the rents and profits as her daughter should appoint for her Hfe, and after her decease the trustees to "stand seised" of the premises to certain uses, "subject to the payment of the several annuities :" — it was held by the Court that the legal estate during the life of the daughter was vested in the trustees, but that the remainder expectant upon her decease was exe- cuted to the cestuis que use : the trustees were not required to be agents after the death of the daughter, but were simply, sub- ject to the payment of the annuities, which meant only, subject to the annuities, to stand seised to uses. So, where a testator devised to three trustees and their heirs subject to the following uses and estates, viz. in trust to permit two persons to receive annuities, and, subject there- to, he devised the premises to the trustees and their heirs until A. attained twenty-one, upon certain trusts, and, when A. should attain twenty-one, he devised the premises to the trustees and their heirs to uses in strict settlement, it was held that the trustees took a chattel interest only, and that the uses in remainder were executed by the statute (c). The testator prefacing each limitation with a devise to "the trustees and their heirs," the repetition of these words was probably regarded as surplusage, and the wUl was construed as foUows : — " I devise the estate to the trustees and their heirs to the following uses, to the use that A. and B. may receive annuities, and subject thereto to the use of the trustees until A. attain twenty-one, and on A.'s attaining twenty-one (a) Doe v. Simpson, 5 East, 171, per Lord Ellenborough ; Robinson V. Grey, 9 East, 1 ; Adams v. Adams, 6 Q.. B. Eep. 860 ; Doe v. Ironmon- ger, 3 East, 633 ; and see Nash v. Coates, 3 B. & Ad. 839. (6) 8 Vin. 262. (c) Warter v. Hutchinson, 5 Moor, 143 ; «. a 1 B. & C. 721 ; and see Ward v. Burlury, 18 Beav. 190 ; Doe V. Cafe, 7 Exoh. Rep. 675. CH. XI. S. l.J BY THE TBtFSTEE. 255 to uses in strict settlement." Independently of this construc- tion, it seems the devise to the trustees and their heirs until A. attained twenty-one would only have the effect of com- municating a chattel interest (a); for as every estate of a certaia and definite duration, though determinable on a life, is a chattel in its nature, the limitation to the heirs would be rejected as repugnant. In Harton v. Hartoti (b) a testator devised to A. and B. and Harton v. T . , . ^ . Harton. their heirs upon trust to permit C, a feme covert, to receive the rents during her life for her separate use, and after her decease to the use of her first and other sons in tail ; and in default of such issue to the use of the daughters in tail as tenants in common ; and in default of such issue upon trust to permit D., a feme covert, to take the rents during her life for her separate use, with remainder to the use of her first and other sons in tail, with remainder to her daughters in tail as tenants in common ; and in default of such issue, upon trust to permit E., a spinster, to receive the rents during her life for her separate use, with like remainder to the use of her first and other sons in tail, with remainder to her daughters in tail, as tenants in common : and it was determined that the fee simple was in the trustees ; but this decision can scarcely be reconciled with principle, and seems to have presented some difficulty to the mind of Lord Eldon. " The Court," said his Lordship, " held that the legal estate was in the trustees through- out, as it appears to me, for this reason, that, there being vari- ous trusts for the separate use of married women after various trusts not for married women, those trusts could not subsist unless the legal estate was in the trustees from the beginning to the end, and they relied on the non-repetition of a legal estate" (c). In a recent case, however, before Vice-Chancellor Wigram, his Honor appears to have considered himself bound by Harton v. Harton (d), and in a still later case the Court of (a) Goodtitle v. Whithy, 1 Bur, (6) 7 T. E. 652. 228; Boe v. Lea, 3 T. R. 41 ; and see (c) Hawkins v. Luscomhe, 2 Sw. Ackland v. Lutley, 9 Ad. & Ell. 391. 879 ; but see LetUeullier v. Tracy, [d) Brown v. Whiteway, 8 Hare, 3 Atk. 780 ; Fearne's Conting. Rem. 145. 226, Butler's note. 256 ESTATE TAIiEN [CH. XI. S. 1. Trust to lease &c. confers fee Semlle. Hawker v. Hawker. Queen's Bench recognised its authority, at least to a limited' extent [a). But if a devise be to trustees and their heirs upon a trust that cannot be executed without an absolute control oyer the property, as upon trust to lease for an indefinite number of years (&), or to raise a sum of money by sale (c), and subject thereto to uses in strict settlement, the trustees will not be held to take a mere power so as to let in the statute to execute the uses, but will be construed to take the legal estate in fee, and the uses that are limited wiU stand as equitable 'interests. It has been observed in the " Treatise of Powers {d}," that this rule was not attended to in the case of Hcmker v. Hawker (e). The devise in that case was to three trustees and their heirs upon trust to sell the testator's lands at H. for payment of his debts, and, in case the proceeds should be insufSicient, then as to his lands at F. upon trust to sell for the like purpose, and to dispose of the surplus monies in manner thereinafter directed, and, in case it should not be necessary to dispose of the said lands at F., then as to such his lands {inter alia) upon trust for the maintenance of his daughter tiU twenty- one, and, on her attaining twenty-one, to the use of the trustees during her life, and after her decease to the use of her children; and the Court certified as to the lands at F., that the trustees did not take a larger estate than for the life of the daughter. The devise was probably considered to be of a double aspect, viz. to the trustees and their heirs upon trust to seU, &c. if one event happened, and upon trust for the daughter, &c. if another event happened. The latter series of limitations took effect, and therefore, as no power of sale was to be exercised by the trustees, it was not necessary under the circumstances to arm them with the inheritance. (a) Toller v. Attwood, 15 Q. B. Rep. 951. (6) Doe V. Willan, 2 B. & AH. 84 ; but see Heardson v. William- son, 1 Keen, 33 ; Ackland v. Lutley, 9 Ad. & Ell. 879. (c) Wright v. Pearson, 1 Ed. 123 ; Bagshaw v. Spencer, 1 Ves. 142 ; Glover v. Monckton, 3 Bing. 13 ; Bale v. Coleman, 2 Eq. Ca. Ab. 309, note (e) ; Sanford v. Irhj, 3 B. & Aid. 654 ; Jones v. Morgan, 1 B. C. C. 206 : for a correct report of the will, see Fearne's C. E. Ap- pendix, No. 3. {d) 1 Sug. Pow. 127, 6th, edit. (fi) 3 B. & Aid. 537. CH. Xr. S. 1.] WHAT ESTATE VESTED IN THE TRUSTEE. 257 The case of Warter v. Hutchinson {a) is more difficult to be Warter v. reconciled with the rule we are discussing. The limitations, ^^**"i^'"'- so far as they concern the present subject, were to trustees and their heirs to the following uses, viz. to the trustees, their heirs and assigns, until A. attained twentj'-one, upon trust as soon as convenient after the testator's decease to raise out of the rents and profits, or by sale or mortgage thereof, a sum sufficient for the payment of debts, funeral expenses, and the costs of the trustees, and also the sum of 2000Z. to be applied in manner therein directed, the residue of the rents and profits, after payment of debts, funeral expenses, and the sum of 2000L, to be paid to A. on his attaining twenty-one, and when A. should attain twenty-one the testator devised the premises to the trustees and their heirs to uses in strict settlement ; and the Court certified that the trustees took a chattel interest, and not the fee simple. The construction appears to have been, that, as the limitation to the trustees and their heirs was expressly limited to the period until A. attained twenty-one, the estate was intended to be a chattel interest only, and the charges were to be raised either by sale or mortgage of that chattel interest, or out of the inheritance by virtue of an implied power. Recent cases have established the following important Present rule qualification of the rule now under consideration, viz., that t^"s to' trustees where an estate is in the first instance given to trustees and their heirs upon trusts which do not exhaust the equitable fee simple, and for which a particular estate short of the legal fee in the trustees would be sufficient, but discretionary powers are superadded, which cannot be exercised by the trustees without arming them with the means of passing the fee simple, there the Courts have held that the trustees do not take a particular estate by way of vested interest with a power under the statute of uses or by a common law authority of passing the fee, but that they retain the legal fee simple given to them in the first instance, on the footing that they were meant to exercise the discretion given to them by virtue of their ownership and not by the mere operation of a {a) 5 Moore, 143 ; S. C. 1 B. & C. 721. 258 WHAT ESTATE VESTED IN THE TRUSTEE. [CH. XI. S. 1. Devise to uses. Where the powers do not affect the fee. power (a). Baron Parke observed, in the leading case (6), " It is certainly true that where the purposes of the trusts on which an estate is devised to trustees are such as not to require a fee in them, as, for instance, where the trust is to pay annuities or to pay over rents and profits to a party for life, there, if, subject to the specified trust, the estate is given over, the parties entitled under such devise over have been held to take legal estates, the gift to the trustees (even when given with words of inheritance) having been taken in such cases to have been meant to be co-extensive only with the trusts to be performed. This rule of construction has probably created much more difficulty than it has obviated. It is, however, now too well settled to be called in question. — But when an estate is given to trustees, all the trusts which they are to perform must primd facie at least be performed by them by virtue and ia respect of the estate vested ia them. — The fee is in terms devised to them, and it would be a very strained and artificial construction to hold first that the natural meaning of the words is to be cut down, because they would give an estate more extensive than the trust requires, and then, when the trust does in fact require the whole fee simple, to hold that that must be supplied by way of power defeating the estate to the subsequent devisees, and not out of the interest of the trustees." The rule of construction laid down in this case has since been followed, even where the language of the subsequent limitations has been peculiarly applicable to a devise of the legal estate, as where after the primary devise to the trustees and their heirs upon limited trusts with discretionary powers the estate was expressed to be limited in strict settlement, by a declaration of uses to that effect (c). But the principle does not apply where the devise is to trustees and their heirs upon trust for a person for life, and after her death upon certain trusts during the minority of her {a) Watson v. Pearson, 2 Exoh. Eep. 581 ; Blagrave v. Blagrave, 4 Exoh. Rep. 550 ; Davies v. Dames, 1 Q,. B. Kep. 430 ; Doe v. Cadogan, 7 Ad. & EU. 636; Rackham v. Siddall, 1 Mac. & Gord. 607. (5) Watson v. Pearson, 2 Exeh. Kep. 593. /^iff^J.^lpi^SJ'^^ (c) Blagrave v. Blagrave, 4 Eioh. Rep. bbOTBackham v. Siddall, \ Mao. & Gord. 607 ..X.^ -<^ ^/^' CH. XI. S. 1.] WHAT ESTATE VESTED IN THE TRUSTEE. 259 children, with a mere power of leasing, to be exercised during the continuance of the trust without any authority affecting the fee simple (a). The law upon the subject has now undergone some alter- Late wm Act. ation from the provisions of the late act (1 V. c. 26) for the - amendment of the law of wills. By the 30th section it is declared, "that where any real estate (other than or not being a presentation to a church) shall be devised to any trustee or executor, such devise shall be construed to pass the fee simple, or other the whole estate or interest which the testator had power to dispose of by will in such real estate, unless a definite term of years, absolute or determinable, or an estate of freehold shall thereby be given to him, expressly or by implication." And by the follo^ving section it is enacted, " that where any real estate shall be devised to a trustee without any express limitation of the estate to be taken by such trustee, and the beneficial interest in such real estate or in the surplus rents and profits thereof shall not be given to any person for life, or shall be given for life, but the purposes of the trust may continue beyond the life of such person, such devise shall be construed to vest in such trustee the fee simple or other the whole legal estate which the testator had power to dispose of by will, and not an estate determinable when the purposes of the trust shall be satisfied." The effect of these provisions is by no means clear, but it Effect of the act. is conceived that a definite chattel interest, as a term of 99 years, or a simple freehold as an estate for the life of A., may • still either be limited expressly to trustees or be raised by implication ; and that in cases where before the act an indefinite chattel interest would have passed as in a devise to trustees (without the word " heirs ") to pay debts, or a freehold with an indefinite interest superadded as in Doe v. Simpson (b), there the words of the wiU are in future made to pass the fee simple (c). (a) Doe v. Cafe, 7 Bxeh. Eep. (c) See tke observations on the 675 j-'^nd see Adams v. Adams, 6 above clauses, H. Sugden on Wills, a. B. Kep. 860. p. 119 ; 2 Jarm. on WiUs, 263, - (b) 5 East, 162. ' s 2 260 PROPERTIES OF THE LEGAI. ESTATE. [CH, XI. S. 2. SECTION II. THE PKOPEETIES AND DEVOLTTTION OF THE LEGAL ESTATE. This branch of our subject we propose to consider, First, with reference to the common law ; and. Secondly, with refer- ence to the construction of particular statutes. Legal estate subject at com- mon law to dower, cartesy, forfei- ture, and escheat. Secxis now. Trust elattels subject to for- feiture, &c. Whether term in a trustee requires I. As regards the common law, it may be stated as a general rule, that the legal estate in the hands of the trustee has pre- cisely the same properties and incidents as if the trustee were the usufructuary owner. Thus, if real estate be put in trust it is still subject at law in the hands of the trustee to curtesy (a), dower (6), and freebench (c), and until a late act was liable to forfeiture (d), and on the decease of the trustee descended to his heir, and, failing the heir, fell by escheat to the lord (e) ; but now by 13 & 14 V. c. 60, ss. 15, 46, substituted for 4 & 5 W. 4. c. 23, trust property is protected from forfeiture and escheat (/). So chattels real and personal held upon trust were forfeit- able until the late act, which extends to personal as well as real estate, for the offence of the trustee (g), but in the case of two joint trustees, a moiety only was forfeited, and the King and the other trustee were tenants in common Qi). So on the decease of the trustee the chattel, as part of his personal estate at law, will devolve on the executor or administrator. And if the executor die, having appointed an executor, the chattel will devolve on that executor. If the lands comprised in a trust term be situate in a (a) Sennet v. Davis, 2 P. W. 319. (J) Ifoel v. Jevon, Freem. 43; Nash V. Preston, Cr. Car. 190. (c) Hinton v. Hirdon, 2 Ves. 631, 638 ; Bevant v. Pope, Freem. 71 ; and see Brown v. Raindle, 3 Ves. 256. {d) Pawlett V. Attorney- General, Hard. 466, per Lord Hale ; Oeary V. Bearcroft, Cart. 67, per Cur.; King v. Mildmay, 5 B. & Ad. 254. (e) Jenk. 190, c. 92. (/) See infra, pp. 285, 286, 287. {g) Pawlett Y. Attorney- General, Hard. 466, per Lord Hale ; Wikes's case, Lane, 54 ; Scounden v. Hawley, Comb. lTi,per Dolben, J.; Jenk. 219, 0. 66 ; ib. 245, o. 30. (A) Wikes's case. Lane, 54. CH. XI. S. 2.] PROPEETIES OF THE LEGAL ESTATE. 261 different diocese from that in which the trustee was domiciled, a prerogative probate. it seems a prerogative probate will be necessary before the term can be legally transferred (a). The chattel is of no value beneficially to the testator's estate ; but ecclesiastical courts do not take cognisance of trusts. And perhaps the better opinion is, that a chattel interest Whether a chat- held upon trust may at law be taken in execution for the debt jn e™ecution for" of the trustee ; for, so soon as the writ of execution reaches *^^ f ^*' "^ *^® the sheriff's ofiice, it binds the goods and chattels of which the debtor is then possessed, and a trust estate, as well as a beneficial ownership, must be subject to the lien, for the common law can scarcely operate differently where it recog- nises no distinction. The sheriff is a mere instrument for the execution of the legal process, and property, which the common law holds liable, the sheriff can have no discretion to exempt upon grounds of equity. The mere of&cer of the court cannot have ligandi et non ligandi potestatem (b). It was said, however, by Mr. Justice Ashhurst, " Suppose a person has goods as a trustee for certain purposes, which was made known to the sheriff before the sale, if the sheriff persist in selling, it would in my opinion be a tortious act in him "(c). On the other hand, Lord Thuiiow seems to acknowledge the legal right against the trustee, by observing, that, if a creditor of the trustee take the goods in execution, he will himself become a trustee by construction of equity (d). Assets in the hands of an executor are regarded even by the The common law 1 • s M J. ij- j-j recognises assets common law as a species of trust property, and in respect oi ^ ^f^ j^j^^^g ^^ them has ingrafted upon itself a quasi equitable jurisdiction: au executor to he thus, if an executrix marry, she may by will, without the consent of her husband, appoint an executor in whom the assets will vest, and who will thus become the executor of the original testator (e) ; and though the husband during the coverture has power to dispose of the assets in the course (a) See Crosley v. Archdeacon of {d) Foley v. Burnell, 1 B. C. C. Sudhury, 3 Hagg. 201 ; 3 Vend. & 278. Purch. 14. (e) Scammell v. Wilkinson, 2 (6) Burdett v. Rochey, 1 Vern. 58, East, 552 ; Hodsden v. Lloyd, 2 B. per Cur. C. C. 543, per Lord Thurlow. (c) Farr v. Newman, 4 T. R. 647. 362 DEVISE OF TRtrST ESTATES. [CH. XI. S. 2. Trustee may deal ■with the trust estate hy act inter tItos, May devise or tequeath it. In what cases the trust estate will pass by a general devise. of administration (a), he will not be entitled to them in his marital right bj'' survivorship (6). Nor can the assets be taken in execution for the debt of the executor (c) ; and, if he commit felony or treason, they are exempted from forfeiture to the King(fZ); and if the executor die intestate, instead of vesting in his administrator, they vest in the administrator de bonis non oi the testator ( e). y^^^^^:^:zr y^^ .!^^:2tZ:'.^:^.^i^y^tr^ 'a. trust estate, whether real or personal, may, at laiu, be con- veyed, assigned, or incumbered by the trustee like a beneficial estate ; and, if there be co-trustees, each may exercise the like powers of ownership over his own proportion. And, as the trustee may dispose of the property in his life- time, so he may devise or bequeath it at his death. But a trust estate will not in all cases pass by the same words in a will as a beneficial ownership would, for wherever the estate does not pass by operation of law solely, but through the medium of the intention, it becomes necessary, in order to ascertain the effect of the instrument, to take into consideration the particular circumstances of the trust. Whether a trust estate shall pass inclusively in a general devise, is a question that has been frequently under discussion. The rule as originally established was, that a general expres- sion would carry a dry trust estate (/), but afterwards there were some misgivings upon the subject {g) (1) ; and the Court at last acceded to the proposition, that general words would not pass trust estates, unless there appeared a positive (a) Thrustout v. Coppin, 2 W. Black. Kep. 801. (5) Co. Lit. 351 a, 351 b ; Stow, V. Drinhwater, Lofft, 83. (c) Farr v. Newman, 4 T. E, 621. ((7) Farr v. Newman, 4 T. R. 628, per Grose, J. (e) lb. per eundem ; Rachfield v. Careless, 2 P. W. 161, per Powis, J. (/) Harlow v. Smith, 2 P. W. 198. {g) See Brayhrohe v. Inship, 8 Ves. 437. How the opinion {^) '^^^ doubt appears to have originated in part from an expression of arose that a gen- Lord Hardwicke in Casborne v. Scarfe, 1 Atk. 605, that by a devise of all eral devise would lands, tenements, and hereditaments, a mortgage in fee would not pass, no pass a rus mjess the equity of redemption were foreclosed. But Lord Hardwicke was not speaking here of the legal estate, but of the beneficial interest in the mortgage. The same thing was said in the same sense in Strode v. Mussel, 2 Vern. 625, Lord Hardwioke's authority has been cited on both sides of CH. XI. S. 3.] DEVISE OF TRUST ESTATES. 263 intention that they should so pass (a). The question was reconsidered before Lord Eldon, when the result of the cases, after a careful examination of them, was declared to be, that, ■ where the will contained words large enough, and there was no ' expression authorising a narrower construction, nor any such disposition of the estate as it was unlikely a testator would make of property not his oivn (as complicated limitations, or any purpose inconsistent with as probable intention to devise as to let it descend), in such a case, the trust estate would pass (&). A charge of debts, legacies, annuities, &c., and a fortiori, a Charge of debts, direction to sell, is considered a sufficient indication of an t^e trust estate. intention not to include a mere trust estate (c) ; and so where a testator gave, devised, and bequeathed to trustees all such real , estates as were then vested in him by way of mortgage, the better to enable his said trustees to recover, get in, and receive the principal monies and interest which might be due thereon, it was ruled that the devise extended only to mortgages vested in the testator beneficially, and did not pass the legal estate of a mortgage in fee vested in him upon trust for another {d). Even where a testator, having a trust estate and also estates of his own, gave and devised " all his real estate, whatsoever and wheresoever, to Grace Thompson, her heirs and assigns, for ever, charged with 50J. to his friend Watson," it was held that the trust estate did not pass (e). (a) Attorney- General v. Bulhr, Sylvester v. Jarman, 10 Price, 78 ; 5 Ves. 340. -Re Morley's Trust, 10 Hare, 293 ; (6) Brayhroke v. InsUp, 8 Ves. see Wall v. Bright, 1 J. & "W. 494. 436 ; see Roe v. Beade, 8 T. E. 118; [d) Ex parte Morgan, 10 Ves. 101 ; Ex parte Morgan, 10 Ves. 101 ; and see Sylvester v. Jarman, 10 Zangfordr. Auger, 4 Hare, 313. Price, 78 ; Ex parte Brettell, 6 Ves. (c) Boe V. Beade, 8 T. E. 118 ; 577. Duke of Leeds v. Munday, 3 Ves. (e) Backham v. Siddall, 16 Sim. 348; Attorney- Generals. Buller, 5 297, 1 Mac. & Gor. 607; Hope v. Ves. 339 ; Ex parte Marshall, 9 Sim. Liddell, 21 Beav. 183. 555 ; Ex parte Morgan, 10 Ves. 101 ; the question (compare -DMX;e of Leeds v. Munday, 3 Ves. 348, with Ex parte Sergison, 4 Ves. 147) ; but that he approved of the old rule is evident from Ex parte Bowes, cited in Mr. Sanders's note to Cashorne v. Scarf e, 1 Atk. 605. Lord Northington and Lord Thurlow are said to have entertained the same opinion. (See Ex parte Sergison, 4 Ves. 147 ; but, as to Lord Thurlow, see an obiter dictum, Pickering v. Vowles, 1 B. C. C. 198.) 2CU BEVISE OF TEUST ESTATES. [oh. XI. S. 2. What expres- sioiis will not or will exclude the trust estate. Distinction as to legal estate in mortgages The expression " my real estates " will not restrict the meaning to those vested in the testator beneficially (a), nor will a devise to A., his heirs and assigns, " to and for his and their own use and benefit " (b), nor a devise to A. and her heirs, to be disposed of by her by will or otherwise, as she may think fit (c) ; though under a devise to a woman for her separate use, as the words import a beneficial enjoyment, a dry legal estate will not pass (d). Again, a devise to A. and B., "to be equally divided between them as tenants in common and to their respective heirs," will pass the trust estate (e). But where lands are limited in strict settlement, with a vast number of limitations, contingent remainders, executory devises, powers of jointuring, leasing, and raising sums of money, it cannot for an instant be supposed the testator meant to include any lands of which he had not the absolute disposition (/) ; and the same construction will prevail even when the estate is devised to A. for life or in tail with remainder over (g). The question whether the legal estate in a mortgage in fee passes, requires a separate consideration. The mortgagee has a beneficial interest in the property, as a security, a distinction not always sufficiently adverted to, but which is strongly in favour of the legal estate passing to the person who is to receive the mortgage money Qi). Hence the decisions establishing that the legal estate passes by a general devise of securities for money {i), and that in the case of such a bequest neither a (a) Srayhroke v. 'Inskip, 8 Ves. 425. (b) Ux parte Shaw, 8 Sim. 159; Bainbridge -v. Lord Ashburton, 2 T. & C. 347 ; Sharpey. Sharpe, 12 Jur. 598 ; and compare Ex parte Brettell, 6 Ves. 577, with. Braybrohe v. In- ship, 8 Ves. 434. (e) Ex parte Shaw, 8 Sim. 1 59. {d) Lindsell v. Thacker, 12 Sim. 178. The marginal note of the Re- port is quite contrary to the de- cision. (e) Ex parte Whitacre, at the Rolls, July 22, 1807, cited 1 Sand. Uses & Trusts, 359, 4th ed. See Re Mor- hy's Trust, 10 Hare, 293. (/) Braybroke v. Inskip, 8 Ves. 434, per Lord Eldon. {g) Thompson v. Grant, 4 Madd. 438 ; overruling Ex parte Bowes, cited in Mr. Sanders's note to Casborne v. Scarf e, 1 Atk. 605 ; Re Horsfall, 1 Maolel. & Tounge, 292 ; GalUers v. Moss, 9 B. & Cr. 267. (A) Doe V. Bennett, 6 Eich. 892; and comments of Vice-ChanoeUor Kindersley on this case, Re Cantley, 17 Jur. 124. (f) King's Mortgage, 5 De Grex & Sm. 644, and cases there reviewed. CH. XI. S. 2.] DEVISE OF TEUST ESTATES. 265 general trust to sell and convert (a), nor a charge of debts (b), will prevent it from passing; and it is conceived^ notwith- standing a former decision of the Court of Exchequer (c), that the case of a general devise and bequest of real and personal estate charged with debts admits of no substantial distinction. The rule that trust estates will pass under a general devise Power of a trus- assumes that a testator by making such a devise does not commit devke the't™st a breach of trust, otherwise general words would not have estate. been construed to carry the trust estate. However, it was observed in one case by the late Vice-Chancellor of England that in his opinion it was not lawful for a trustee to dispose of the estate, but that he ought to permit it to descend ; and that there was no substantial distinction between a conveyance inter vivos, and a devise, for the latter was nothing but a post mortem conveyance {d). But Lord Langdale considered that there was a wide distinction between a conveyance in the trustee's life-time and a devise by his will ; for during his life he had a personal discretion confided to him, which he could not delegate, but the settlor could not have reposed any personal confidence in the trustee's heir, for it could not be known beforehand who such heir would be ; and that if the estate were allowed to descend, it might become vested in married women, infants, or bankrupts, or persons out of the jurisdiction ; and he could not therefore hold it to be a breach of trust to transmit the estate by will to trustworthy devisees (e). The propriety or impropriety of a devise of trust estates must evidently depend on all the circumstances of the case. If an estate be conveyed to A. and his heirs upon trust, that A. and his heirs shall execute the trust, it is considered that, in the absence of special circumstances, the trustee ought not to break the natural devolution of the trust by passing the legal estate to a devisee, while the trust was confided to (a) Hx parte JBarher, 5 Sim. 451 ; (d) Cook v. Crawford, 13 Sim. Mather v. Thomas, 6 Sim. 115. 98. (5) Field's Mortgage, 9 Hare, 414, (e) Titley v. Wolstenholme, 7 Beav. overruling Senvoize v. Cooper, 10 435; ani see Macdonald v. Walker, Price, 78. 14 Beav. 556 ; Wilson v. Bennett, 5 (c) Doe v. Lightfoot, 8 M. & W. De Gex & Sm. 479. 553. 266 DEVISE OF TBUST ESTATES. [CH. XL S. 3. Whether a de- visee can execute the trust. Where the trust is confided to the trustee and Ms Titley v. Wol- stenholme, doubted. the heir ; and in such a case, the assets of the trustee might perhaps be held liable for the costs of restoring the trust to its proper channel (a). But it is conceived that if the heir apparent or presumptive were an infant, bankrupt, insolvent, lunatic, feme covert, or out of the jurisdiction, it would be a proper act to transmit the estate to a devisee. How far a devisee of the trust estate can execute the trust, will, of course, depend on the intention of the settlor. Thus, real or personal estate may be vested in A. upon trust, that A., personally, shall execute the trust ; and in this case, the heir or executor of A., though he take the legal estate, cannot act as trustee (b). A fortiori in that case the devisee would be a mere depository of the legal estate, without any authority to execute the trust (c). So, if a settlor vest an estate in A. upon trust, that A. and his heir shall sell, &c. ; a devisee being the hceres factus only, and not the hares natus, cannot exercise the power (d). But it most frequently happens that an estate is vested in A. upon trust, that A., his heirs and assigns, shal^ hold upon the trusts : and the question then is, whether a devisee of A. may, as falling under the description of assigns, not only take the estate, but also execute the trust ? In a late case, where the settlement contained no poiver of appointment of new trus- tees, it was held, that as a conveyance in the life-time of the trustee to a stranger would have been a breach of trust, the word assign could mean only a devisee taking under a post mortem conveyance, when the personal confidence in the trustee necessarily ceased ; and the Court, on a bill filed by the cesttds que trust for the appointment of new trustees, refused the relief prayed on the ground that the devisees had not only the legal estate, but were properly trustees within the scope of the settlor's intention (e). This case went to the utmost verge, and, indeed, cannot be (a) See Cook Y.Crawford, 13 Sim. {d) Cook v. Crawford, 13 Sim. 98. (6) See Mortimer v. Ireland, 11 Jur. 721. (c) Mortimer v. Ireland, 11 Jur. 721 ; S. C. before Vice -Chancellor Wigram, 6 Hare, 196. 91. (e) Titley\. Wolstenholme, 7 Beav. 425, referred to without disapproba- tion by Lord Cottenham in Mortimer V. Ireland, 11 Jur. 721. CH. Xr. S. 3.] DEVISE OF TRUST ESTATES. 267 implicitly relied upon ; for even vfhere there is no power of appointment, the word " assigns " may be satisfied by holding it to mean a dowress, tenant by the curtesy, or in a case .prior to the act excepting trust estates from forfeiture, the lord taking by forfeiture, who are assigns in law. It is, however, at all events clear, that should the settlement contain a power of appointment of new trustees, the word assigns could then receive the construction of persons lawfully appointed under the power, and a devisee would be construed not to be a trustee. Thus, in Fordyce v. Willis {a), a discretionary trust was limited to trustees, their heirs and assigns ; but the Court held, that trustees appointed by the Court were not assigns within the contemplation of the power. In the recent case of Wilson v. Bennett (b), the two devisees WUson v. of the surviving trustee contracted to sell, and the title was held by Vice-Chancellor Knight Bruce to be too doubtful to be enforced. It was afterwards discovered that one of the devisees was also the heir of the surviving trustee ; but Sir James Parker stiU held the title to be too doubtful, on the ground that the testator had never contemplated such an event as that the estate should vest in the successor and the power go to another. He added, that it would often be the duty of a trustee to take care that the legal estate did not vest in a lunatic, or a person out of the jurisdiction, or otherwise unfit, and for that purpose to devise it ; but in every case the question was, whether the devise was in accordance with the title under which the trustee held. It will be borne in miad^ in explana- tion of this case, that if an estate be limited to A. and his heirs upon trust, and A. devises the estate, there is in fact no heir ; for the settlor must have meant the heir in respect of the trust estate, and by the devise the descent has been broken and there is no heir. In another case (c), where leaseholds were assigned to two Ue Burtt's trustees, their executors and administrators, upon trust ; and the surviving trustee devised the leaseholds to A. and B. upon the same trusts, and appointed A., B., and C. executors : on (o) 2 Phil. 497. (c) Re BurWs Estate, 1 Drew. (6) 5 De G. & Sm. 475. 319. 268 DEVISE OF TRUST ESTATES. [CH. XI. S. 2. An estate con- tracted to be sold ■will be in- cluded in a general devise. Trustee has the piivilegea and burdens of the legal estate. a petition by A. and B. to the Court to have a trust fund, the proceeds of the leaseholds, paid out to them, Vice-Chancellor' Kindersley refused, observing, that the surviving trustee had no authority to bequeath the execution of the trust, but could only pass the legal estate. The petition was then amended by joining C. as a co-petitioner, so that the petition was now that of the legatees, and also of the executors ; but the Vice- Chancellor still refused, on the ground that the testator had himself declared, that his executors as such should not be trustees, and, therefore, since, by the bequest, he had taken the legal estate from those who ought to have been trustees, there must be an appointment of new trustees. A vendor, after the contract for sale, but before the com- pletion of it, is a trustee for the purchaser sub modo only, and the estate will pass by a general devise in his will, where it would not have been included had the testator been a mere and express trustee. " A constructive and a naked trustee,'' said Sir T. Plumer, "for many purposes stand in different situations. A mere trustee is a person who not only has no beneficial ownership in the property, but never had any, and could therefore never have contemplated a disposition of it for his own purposes. A vendor was at one time both the legal and beneficial owner, and may again become so if any thing should happen to prevent the execution of the contract. It may turn out the title is not good, or the purchaser may be unable to pay, or he may become bankrupt. The purchaser is not entitled to the possession unless stipulated for, and if he should take possession it would be a waiver of any objections to the title. If the purchase-money has not been paid, a Court of equity would restrain him at the instance of the vendor." And upon these grounds his Honor held in the case that elicited the above remarks, that an estate which was the subject of a contract was included in a general devise to trustees though upon trust to sell (a). As the dry legal estate in the hands of the trustee is affected by the operation of law, and may be disposed of by the act of the trustee, precisely in the same manner as if it were vested (a) Wall V. Bright, 1 J. & W. 494. CH. XI. s. 2.] trustee's right to vote. 269 in him beneficially, so it confers upon liim all the legal privileges, and subjects him to all the legal burdens, that are incident to the usufructuary possession (a). Thus the trustee can bring any action respecting the trust Trustee must estate in a court of law, the cestui que trust, though the *'"°sa'=t'0'>^. «''=• absolute owner in equity, being at law regarded, as a general rule, in the light of a stranger (b). So the trustee of a manor is the person to appoint the steward of it (c), and the trustee of an advowson to present to the church {d), but in either case he has the mere legal right, and is bound in equity to observe the directions of his cestui que trust (e). So where a debtor to the trust estate becomes bankrupt, the Trustee must trustee is the person to prove for the debt, and that without ruptcy ° ^'^^ the concurrence of the cestui que trust (/), unless it be such a simple trust as where A. is trustee for B. absolutely, and then it rests in the discretion of the commissioners to require the concurrence of the cestui que trust ; for who knows but that B. may have already received the money {g) ? And originally the trustee as the legal proprietor had the Trustee if in right of voting for coroners (/j) (1); but by the 58 G. 3. c. 95, for coroners" ^' sect. 2, it was enacted, that " no person should be allowed to have any vote for or by reason of any trust estate or mortgage, unless such trustee or mortgagee should be in actual possession (o) Burgess v. Wheats, 1 Ed. 251, 338, per Lord Eldon ; Attorney- per Lord WortMngton. OeneralY. Newcombe, 14 Ves. T,per (b) See Allen v. Imlett, Holt, 641 ; eundem ; Kensey v. Langham, Cas. Gibson v. Winter, 5 B. & Ad. 96; t. Talb. 14:4:, per Lord Talbot; Am- May V. Taylor, 6 M. & Gr. 261. hursty. Bawling, 2 Vem. 401; £ar- [e) Mott V. Buxton, 7 Ves. 201 ; ret v. Gluhb, "W. Black. Eep. 1053, and see Gary, 14. per De Grey, J. {d) See in Re Shrewsbury School, (/) Ex parte Green, 2 Deao. & 1 M. & Or. 647 ; Hill v. Bishop of Chit. 116, per Cur. London, 1 Atk. 618. {g) Ex parte Dubois, 1 Cox, 310 ; (e) Attorney- General Y.BarJcer, tmi see Ex parte Battier, Bnck, 426; 3 Atk. 677, per Lord Hardwieke ; Ex parte Gray, 4 D. & Cb. 778. Attorney- General Y.Forster, lOVes. {h) Burgessi. Wheate, 1 Ed, 251. (1) And Lord Nortbington added for " sheriffs " [Burgess v. Wheate, 1 Ed. 251) ; but the election of sheriffs had been transferred from the people to the Chancellor, Treasurer, and Judges, by 9 E._2. st. 2, before the establishment of trusts. 270 trustee's right to vote. [CH. XI. s. 8, Trustee's right to Tote for a member of par- liament. or receipt of the rents and profits of the same estate, but that the mortgagor or cestui que trust in possession should vote for the same." So the trustee was the person entitled at common law to vote for members of parliament (a) ; but by the 8 H. 6. c. 7, it was enacted that every elector should have " a freehold of the value of forty shillings a-year at the least, above all charges," and the sheriff was authorised to " examine every elector upon oath how much he might expend by the year," and " if he could not expend forty shillings by the year," he was disabled ffom voting. It can scarcely be doubted that from the time of this enactment a trustee, had the sheriff questioned his qualifica- tion, could not have satisfied the requisitions of the act ; but the sheriff probably did not exercise this right of interroga- tion, and therefore the trustee, as he was the freeholder, though he could not expend the rents, was allowed to continue in the enjoyment of the franchise, particularly as the cestui que trust, who had not the freehold, was at all events excluded. The 7 & 8 Gul. 3. c. 25, s. 7, enacted, that "no person should vote for or by reason of any trust estate or mortgage, unless such trustee or mortgagee was in actual possession or receipt of the rents and profits of the same, but that the mortgagor or cestui que trust in possession should vote for the same. By the effect of this clause, the cestui que trust, if in possession, was now for the first time entitled to a vote, and the trustee in that case was expressly excluded from the privilege ; if the trustee was in possession or in receipt of the rents and profits, the legis- lature, without any positive enactment, seems to have regarded the trustee as qualified by the trust estate to be an elector. The 10 Anne, c. 23, s. 2, declared, that " no person should vote who should not have received the rents or profits, or be entitled to have received the same to the full value of forty shillings or more to his own use for one year before such elec- tion." The statute of H. 6. had apparently excluded the trustee, the statute of William had expressly disabled him if not in actual possession or in receipt of the rents and profits ; and now by this last enactment of Anne he was incapacitated from (a) Burffessv. Wheate, 1 Ed. 251, ^jpj' Lord Northington. CH. XI. S. 2.] TEUSTEE LIABLE TO RATES. 271 giving a vote in any case. By the same statute, any candidate or voter was authorised to administer an oath to the elector at the time of polling, but, among the qualifications particularly enumerated in the oath, that of " receipt of the rents and profits to his oivn use for one year before the election " was by some oversight omitted. This defect was afterwards remedied by the 18 G. 2. c. 18, s. 1, which incorporated into the oath the decla- ration that the elector had been " in the actual possession or receipt of the rents and profits to his oion use for two calendar months " before the election. It must be observed that the words " actual possession, or receipt of the rents and profits," correspond to the expression in the statute of Anne, " who shall not have received the rents and profits to his own use," and therefore the words " to his own use " in the statute of George must be taken to have applied to " actual possession " as well as to " the receipt of the rents and profits." The Eeform Act {a), by the 23rd section, re-enacted the provision of the statute of William 3., before referred to ; and by the 26th section declared that, " notwithstanding anything therein- before contained, no person should be registered in any year in respect of his estate or interest in any lands or tenements as a freeholder, copyholder, &c., unless he should have been in the actual possession thereof, or in receipt of the rents and profits thereof for his own use for six calendar months previous to the last day of July in such year ; " thus, it would seem, leaving the law in respect of trustees precisely on the same footing as it stood before the act was passed. All doubt, however, was removed by the 6th Vict. e. 18, the 74th section of which enacts, that " no trustee of any lands or tenements shall in any case have a right to vote in any such election for or by reason of any trust estate therein, but that the cestui que trust in actual possession or in the receipt of the rents and profits thereof, though he may receive the same through the hands of the trustee, shall and may vote for the same notwith- standing such trust." Again, the trustees are liable to be rated for the property Trustees liaWa vested in them (&), unless they are trustees exclusively for (a) 2 Gul. 4. c. 45. (J) Queen v. Sterri/, 12 Ad. & Ell. 84. 27S BANKETJPTCY OF TRUSTEE. [CH. XI. S. 2. Trustee pays the fine on admission to copyholds. If trustee trade in that character, he is amenable to the bankrupt laws. public purposes without any profit to themselves or a particular class (a). The trustee of a copyhold must pay a fine on his admis- sion (b), and on his decease a heriot becomes due to the lord (c). But, where two or more trustees have been admitted jointly, on the decease of owe neither fine nor heriot is due ; not a fine for admission, because, joint tenants being seised per my etper tout, the estate has vested in the survivors by the original grant, and not a heriot, because, however many in number the trustees may be, they all form but one tenant to the lord, and therefore no heriot is demandable until the death of the longest liver (d). "Where a number of trustees are adipitted as the joint owners of the trust estate, the fine is to be assessed upon the following principle : for the first life is to be allowed the fine usually paid on the admission of a single tenant, on the second life one-half the sum taken for the first, and on. the , third one-half the sum taken for the second, &c. ; the result of which will be, that, however great the number of the trustees admitted, the amount of the whole fine will never be double of that paid upon the first life (e) . And on every change of trustees the same fine is demandable : even where some of the surrenderees are the survivors of the old trustees, for they take a new estate (/). Though the manorial burdens fall upon the trustee personally at law, he is of course entitled in equity to reimburse himself the expenditure out of the profits of the estate (ff). , If a trustee carry on a trade in the due execution of his trust, he makes himself amenable to the operation of the bank- rupt law in the same manner as if he had traded for his own benefit {h), and on his decease his lands were liable under (a) Regina v. 8hee, 4 Q,. B. Bep. 2 ; Mayor of Manchester v. Over- seers of Manchester, 17 Q,. B. Rep. 859 ; Queen v. Harrogate Commis- sioners, 15 Q,. B. Rep. 1012. (6) Earl of Bath v. Ahney, 1 Dick. 260 ; S. C.l Bur. 206. (c) Trinity College v. Browne, 1 Vera. 441 ; see Car v. Ellison, 3 Atk. 77. {d) See 2 Watk. Cop. 147. (e) Wilson v. Moare, 2 B. & Ad. 350, see 360 ; 10 Ad. & EU. 236, and 1 Scriven, Copyh. 393, 394, 3rd edit. (/) Sheppard v. Woodford, 5 Meea. & Welsh. 608 ; but see Wil- son V. Hoare, 10 Ad. & Ell. 236. [g) Hivet's case, Moore, 890. {h) Jrightman v. Townroe, 1 M, CII. XI. S. 2.] BANKRUPTCY OF TRUSTEE. 273 Sir Samuel Eomilly's Act (a) to the discharge of simple contract debts (&). II. Of the legal estate in the trustee with reference to the construction of particular statutes. 1. By the 12 & 13 Vict. c. 106, ss. 141, 142, it is enacted, How the legal that " all the personal estate, present and future, of the bank- by the bank- rupt, wheresoever the same may be found or known, and traste°^*^^ all property which he may purchase, or which may revert, descend, be devised or bequeathed, or come to him before he shall have obtained his certificate, and aU lands, tenements, and hereditaments, except copyhold or customaryhold, to which the bankrupt is entitled, and all interest to which such bankrupt is entitled in any of such lands, tenements, or here- ditaments, and of which he might have disposed, and all such lands, tenements, and hereditaments as he shall purchase, or shall descend, be devised, revert to, or come to such bankrupt before he shall have obtained his certificate," shall vest in the assignees of such bankrupt. The operation of the Bankruptcy Acts was thus commented Assignees take upon by Lord Chief Justice Willes: — "The assignees," he he^TanKcu- said, " under a commission of bankruptcy, are not to be con- *™s- sidered as general assignees of all the real and personal estate of which the bankrupt was seised and possessed, as heirs and executors are of the estate of their ancestors and testators, for nothing vests in the assignees even at law but such real and & S. 412 ; Sx parte Oarland, 10 estate to Hockley, upon trust to Ves. 119, per Lord Eldon ; Hanhey convert the same into money, and to v. Hammond, cited in marginal note stand possessed of tlie proceeds upon to 1 Cooke's Bant. Law, 84, 3d ed. certain trusts in the will mentioned. (a) 47 G. 3, 0. 74. Repealed, and Hockley, in breach of his duty, con- re-enacted hy 11 G. 4 and 1 "Will. 4, • tinned the business with the two c. 47. Now by 3 & 4 W. 4, c. 104, co-partners in the name of the tes- the lands of aU persons, traders or tator, and died indebted to the trust otherwise, are liable to their simple estate in the sum of llOOZ., and contract debts. without leaving sufficient personal (5) Longuet v. Hockley, Feb. 16, assets. Baron Alderson held clearly, 1836, Exch. MS. Moss Levy, a that Hockley was a trader within trader in partnership with his bro- the meaning of the statute, and that ther Lewis Levy, and his cousin his lands were liable for the money Walter Levy, devised and be- due to the trust, queathed all his real and personal 274 BANKRUPTCY OF TRUSTEE. [CH. XI. S. 2. The trust estate does not pass to the assignees of the trustee. Nor the property into which the trust estate has been convei*ted. Factor selling and taking notes. personal estate of tlie bankrupt in which he had the equitable as well as legal interest, and which is to be applied to the pay- ment of the bankrupt's debts " (a). It is clear, therefore, that, in the case of a ba/re trust, the property, whether real (b) or personal (c), will not vest by the bankruptcy in the assignees, even at law. And the proposition applies not only to the case of express trustees, but also of trustees virtute officii, as executors, administrators (d), fac- tors (e), &c. And, where the trust estate or fund has been converted into property of a different character, the new acquisition wiU equally be protected against the effects of the bankruptcy ; for the product or substitute of the original thing must foUow the nature of the thing from which it proceeded (/). Thus, if goods consigned to a factor be sold by him and reduced into money, so long as the money can be identified, as, where it has been kept in bags, the employer, and not the creditors, will have the benefit of that specific sum (g). When money is said to have no ear-mark, the meaning is no more than this, that, being the currency of the country, it cannot be followed when once it has passed in circulation {h). So, if the factor sell the goods and take notes in payment, the value of the notes, notwithstanding the bankruptcy, may be recovered by action from the assignees (i); for, though [a] Scott v. Surman, Willes, 402. (5) Ex parte Gennys, 1 Mont. & iTac. 258 ; Houghton v. Kcenig, 18 Com. B. Re. 235. (c) See Winch v. Keeley, 1 T. E. 619 ; Carpenter v. Marnell, 3 B. & P. 40 ; Gladstone v. Hadwen, 1 M. & S. 617. {d) Howard v. Jemmet, 3 Bur. 1369, per Lord Mansfield ; Ex parte Butler, 1 Atk. 213, per Lord Hard- wioke ; Viner v. Cadell, 3 Espin. 88 ; Farr v. Newman, 4 T. R. 629, per Grose, J. ; see Ex parte Ellis, 1 Atk. 101. (e) Godfrey v. Furzo, 3 P. W. 1 86, per Lord King ; Tooke v. Hol- Ungworth, 5 T. E. 226, per Lord Kenyon ; L'Apostre v. Le Plais- trier, cited Copeman v. Oallant, 1 P. W. 318 ; Delauney v. Barker, 2 Stark. 539 ; Soddy v. Esdaile, 1 Car. & P. 62 ; see Ex parte Dumas, 2 Ves. 582 -,8.0.1 Atk. 232 ; Paul V. Birch, 2 Atk. 623; Pyall T. Rolle, 1 Atk. 172 ; Ex parte Chion, note (A) to Godfrey v. Furzo, 3 P. W. 187. (/) See Taylor v. Plumer, 3 M. & S. 575 ; Scott v. -SurmanjWilles, 404. ( g) Toohe v. Hollingworth, 6 T. R. 227, per Lord Kenyon; see Taylor v. Plumer, 3 M. & S. 571. (A) Miller v. Race, 1 Bur. 457, per Lord Mansfield; see Taylor v. Plumer, 3 M. & S. 571. (i) Anon, case, cited Ex parte Dumas, 2 Ves. 586. CH. XI. S. 2.] BANKRUPTCY OF TRUSTEE. 275 negotiable securities are said, like money, to have no ear-mark, the expression does not intend that such securities in the hands of a bankrupt have run into the general mass of his property, and pass to his assignees, but only that negotiable securities, as a circulating medium in lieu of money, cannot be recovered from a person to whom they have been legally negotiated; and it is clear that notes, should they fall into possession otherwise than in a due course of circulation, do not become the property of the person into whose hands they come, but may be followed by the original possessor (a). So, if a factor sell the goods of his employer for money pay- Factor selling able at a future day, and become bankrupt, and the assignees aWe™at°a^fatOTe receive the money, they will be answerable for it to the mer- '^'^y- chant by whom the factor was employed (&). In another case the conversion had been in breach of the Tortious conver- f actor's duty (c) ; and it was argued, that, as the principal would pr^ertt ^ *™^' not have been bound to accept the property which the agent had wrongfully purchased, the Court ought not to give a lien to the principal upon the tortious acquisition ; but the Court said, it was impossible that an abuse of trust could confer any right on the person abusing it, or those claiming in privity with him {d). Where the legal property does not pass, any action against In whose name the assignees must be broiight by the bankrupt himself, for he brought to re- is the person possessed of the legal right (e) ; but, in the case °°?'®'' *^^ *™^' of & factor, an action may also be brought by the principal, for assignees. the absolute property remains with the employer, and a special property only vests in the agent (/). But, if hills be remitted to a factor, and made payable to him or his order, it has been doubted whether the property does not so vest in the [a) Hartop v. Hoare, 3 Atk. 50, {d) Taylor v. Plumer, 3 M. & S. per Lee, C. J. ; Miller v. Bace, 1 574, per Lord EUenborough. Bur. 457. (e) Winch v. Keeley, 1 T. R. (6) Ryall v. Rolle, 1 Atk. 172, 619 ; Carpenter v. Marnell, 3 B. & per Burnet, J. ; Taylor v. Plumer, P. 40. 3 IL & S. 577 ; Zinch v. Walker, (/) L'Apostre v. Le Plaistrier, 2 W. Bl. 1154; Garrat v. Cullum, cited Copeman v. Gallant, 1 P. W. Bull. N. P. 42. 318 ; Delauney v. Barker, 2 Stark. (c) Taylor v. Phmer, 3 M. & S. 539 ; Boddy v. Esdaile, 1 Car. 62. 562 ; see Myall v. Bolle, 1 Atk. 172. T 2 276 BANICRUPTCY OF TRUSTEE. [CH. XI. S. 2. Where the trust estate has be- come amalgama- ted with the trustee's other property, the cestui que trust must prove for the amount. Case of a bank- rupt trustee having a bene- ficial interest. factor that no action of trover can be maintained by the principal {a). If the property possessed by the bankrupt in his character of trustee has become so amalgamated with his general property that it can no longer be identified, the representative of the trust has then no other remedy but to come in as a general creditor, and prove for the amount of the loss (6). But, in one case, though the trust money had got into the general fund, it was held, but under very particular circumstances, that it had subsequently got out again (c). As a general rule, where the bankrupt has a substantial beneficial interest, however small, in property legally vested in him, such property passes to the assignees, who take as trustees for the creditors and other parties interested [i). It is conceived, however, that the rule would not apply to a case where a bankrupt is clearly and expressly a trustee, though he may himself have some partial beneficial interest, for his act ought not to work a prejudice to others. And there can be httle doubt that the Court would, in a case of express trust, appoint new trustees, either under the 130th section of the Bankrupt Consolidation Act(e) or its general jurisdiction. Where the trust is constructive and the equity doubtful the Court has sometimes directed the assignees to concm* in conveying (/). And where the legal property passes, the cestuis que trust may have the same relief in equity against the assignees, as they would have been entitled to against the bankrupt himself (g). (a) Ex parte Dumas, 2 Ves. 583. (5) Ex parte Dumas, 1 Atk. 234, per Lord Hardwicke; Ryall v. Rolle, 1 Atk. 172, per Buruet, J. ; Scott V. Surman, Willes, 403, 404, per "Willes, C. J. (c) Ex parte Sayers, 5 Ves. 169. {d) Carpenter v. Marnell, 3 Bos. & Pall. 40 ; Parnliam v. Hurst, 8 M. & W. 743; Leslie v. Guthrie, 1 Bing. N. C. 697; D'Arnay v. Chesneau, 13 M. & W. 809. (e) Ex parte Cousen, 1 De Gex, 451 ; in wliich particular case, how- ever, the wording of the section created a difflcnlty. (/) Benriet v. Davis, 2 P. V. 316; Taylor v. Wheeler, 2 Vern. 564; Ex parte Gennys, Mont. & Mao. 258. {g) Sennet v. Davis, 2 P. "W. 316 ; Taylor v. Wheeler, 2 Vern. 564; Mit/ord v. Mitford, 9 Ves. 100, per Sir W. Grant ; Ex parte Dumas, 2 Ves. 685, per Lord Hard- wicke ; Hinton v. Hinton, 2 Ves. 633, per eundem ; Grant v. Mills, 2 V. & B. 309, per Sir W. Grant ; CH. XI. S. 2.] BANKRUPTCY OF TRUSTEE. 377 By the 12 & 13 V. c. 106, s. 125, it is enacted, that "if Of trust chattels any bankrupt, at the time he becomes bankrupt, shall by the aestioVof thT' consent and permission of the true oivner thereof have in his J'^'^'pipt ■' '' trustee. possession, order, or disposition, any goods or chattels whereof he was reputed owner, or whereof he had taken upon him the sale, alteration, or disposition as owner, the Court shall have power to order the same to be sold and disposed of for the benefit of the creditors under the bankruptcy." It has been decided that this enactment does not apply No forfeiture where the possession of the goods by the bankrupt can be i^^'hs poss^esTiL satisfactorily accounted for by the circumstances of the title, aooording to the as, if a trustee be in possession of effects upon trust for pay- ment of debts, and become bankrupt («), or if goods be vested in A. upon trust to permit B. to have the enjoyment during his life, and B. becomes bankrupt while in possession under his equitable title (&) ; but if a residue be given to trustees upon trust to sell with aU convenient speed, and to invest the pro- ceeds in the purchase of an annuity for the lives of A. (one of the trustees) and her children, the amount to be paid to A. for the benefit of the children : if, instead of selling, the trustees permit A. to retain possession for a length of time, the goods are forfeited, such possession being contrary to the title (c). The enactment does not extend to a lawful and necessary Executors and ,7.. .1.1 . II'- administrators. possession en auter droit, as that by executors and adminis- trators id) ; but tliere will be no exemption from the forfeiture if the executor can be proved to have dismissed the character of personal representative, and to have assumed that of absolute owner (e). Tyrrell v. Hope, 2 Atk. 558; Bowles 169 ; Mont. 24 ; Jarman v. Woolo- Y. Sogers, 6 Ves. 95, note (a) ; JEx ton, 3 T. R. 618 ; Ex parte Massey, parte Hanson, 12 Ves. 349, per 2'KoB.t. &Ajr. 113; Hx parte MUs- Lord Bldon ; Hx parte Coysegame, ton, 2 Mont. & Ayr. 365 ; JEx parte I Atk. 192 ; see Mestaer v. Gillespie, Geaves, 2 Jur. N. S. 651. II Ves. 624 ; Ex parte Herhert, 13 (c) Ex parte Moore, 2 Mont. D. Ves. 188 ; Waring v. Coventry, 2 & De G. 616 ; and see Fox v. M. & K. 406. Fisher, 3 B. & A. 135 ; Ex parte (a) Copeman v. Gallant, 1 P. W. Thomas, 3 Mont. D. & De G. 40. 314. {d) Ex parte Marsh, 1 Atk. 158 ; (6) Ex parte Martin, 19 Ves. Joy v. Camphell, I Sch. & Lef. 328. 491; 8. a 2 Rose, 331; see Ex (e) Fox v. Fisher, 3 B. & A. 135; parte Horwood, 1 Mont. & Mao. Ex parte Moore, 2 Mont. Deac. & 278 JUDGMENTS AGAINST TEUSTEE. [CH. XI. S. 2. Whetlier bare trustee a "true owner." Factors. Of the insolvency of the trustee. Of judgments against the trustee. Whether the permission of a bare trustee can be said to be that of the " true owner," to the prejudice of innocent cestuis que trust, is a question of some difficulty, but which upon principle should, it is conceived, be answered in the nega- tive (a). It has been decided that a cestui que trust absolutely entitled is a true owner within the meaning of the clause (6). Upon the same principle must be excepted from the ope- ration of the clause the possession of goods by factors in the ordinary course of trade (c). 2. By the Insolvent Act the real and personal estates of insolvents are made to vest in the assignees, and where goods or chattels are in the possession of an insolvent at the time of his arrest or other commencement of his imprisonment by the consent of the true owner, they are made to pass to the assignee as if they were the insolvent's own property (d). Upon this enactment of the Insolvent Act we have only to remark, that, as it substantially follows the provisions of the Bankruptcy Act, it must in the analogous cases be governed by the same construction. 3. Judgments, at least so far as they affect lands (for execu- tion against goods and chattels is by common law), derive then- effect from certain statutory enactments (e). Had trusts been established at the time these statutes were passed, the construction would probably have been the same as in the case of the bankruptcy and insolvency acts, that is, judgments would have been held to bind those lands only of which the conusee was seised beneficially; but trusts at the period of which we are speaking had not made their appear- ance, and therefore judgments have been held to bind all lands De &. 616 ; :Ex parte Thomas, 3 Mont. Deac. & De Gr. 40 ; see Quick V. Staines, 1 B. & P. 293 ; Whale V. Booth, cited Farr v. Newman, 4 T. R. 625, note (a). [a) Compare Ex parte Dale, Buck, 365 ; Ex parte Richardson, Buck, 480 ; Ex parte Horwood, 1 Mont. & Mac. 169, Mont., 24; Viner v. Cadell, 3 Bsp. 88. (6) Ex parte Burhridge, 1 Deac, 131, 4 Deac. & Ch. 87. (c) Mace v. Cadell, Cowp. 232; Ex parte Pease, 19 Yes. 46, per Lord Eldon ; L'Apostre v. Le Plais- trier, cited Copeman v. Gallant, 1 P. W. 318 ; Whitfield v. Brand, 16 M. & W. 282. {d) 1 & 2 Vict. 0. 110, ss. 37, 57 ; and see 5 & 6 Vict. c. 116, s. 1 ; 7 & 8 Vict. 0. 96, ss. 4, 17. [e) 11 E. 1; 13 E. 1. st. 1, c.l8; 13 E. 1. St. 3; 27 E. 3. st. 2, c. 9; see Co. Lit. 289, b. CH. XI. S. 3.] WHO BOUND BY THE TEUST. 379 of the eonusee, whether vested in him beneficially, or in the character of trustee. But of course the cestui que trust will be protected from the legal process by application to a Court of equity (a). SECTION III. WHAT PEESONS TAKIN& THE LEOAL ESTATE WHL BE BOUND BY THE lETJST. The universal rule, as trusts are now regulated, is, that all persons who take through or under the trustee shall be liable to the execution of the trust. On the death of the trustee, the heir, executor, or adminis- Heir and exe- . ,177 c,i ,ij 1 outor bound by trator, becomes the legal owner ol the property; but as he the trust. merely represents the ancestor, testator, or intestate, he takes it in the same character, and is therefore bound by the same equity. So, if a trustee devise the estate, the devisee takes the estate So the devisee. subject to the trust (&). So all assigns of the trustee by acts inter vivos (except pur- And assigns by .act inter vivos. chasers for valuable consideration without notice) will be bound by the trust (c). During the system of uses, and even for a short time sub- So assigns in the sequently to the statute of H. 8., assigns of the trustee in the per only, that is, by the immediate act of the trustee, as by assignment, were made liable to the trust ; but now assigns in the post, or by operation of law, are also invested with the character of trustees ; as if a trustee marry, the wife is at law entitled to her dower, and if a female trustee marry, the husband is at law entitled to his curtesy, but in equity both the dowress (d) and tenant by the curtesy (e) are compellable to recognise the right of the cestui que trust. So a creditor of the (a) Finch v. Farl of Winchelsea, ville v. Blyth, 16 Ves. 231, per 1 P. W. 277 ; Burgh v. Francis, 1 Sir W. Grant. Eq. Ca. Ab. 320 ; Medley v. Martin, (e) See infra. Finch, 63; Prior v. Penpraze, 4 \d) Pawlett^. Attorney- General, Price, 99 ; Langton v. Horton, 1 Hard. 469, per Lord Hale ; Noel v. Hare, 560, per Sir J. "Wigram. Jevon, Freem. 43; Hinton -v.Hinton, (5) Marlow v. Smith, 2 P. W. 2 Ves. 634, per Lord Hardwioke. 201, per Sir J. Jekyll ; Lord Gren- (c) Bennet v. Davis, 2 P. W. 319. 280 ESCHEAT OP THE TRUST ESTATE. [CH. XI. S. 3. trustee extending the trust estate under an elegit (a), or taking a trust chattel by writ of execution (&), and, by the same rule, the assignees of a bankrupt or insolvent (c) are made subject to the equity. Forfeiture. And if the trustee commit a forfeiture, the lord, as he succeeds to the identical estate of the forfeitor, must take the property with all the engagements and incumbrances attached to it, and is therefore liable to the trust {d). In the case of a forfeiture to the King, it was formerly held there was no equity against the Crown (e) ; but in modern times the equity has been fully admitted, though the precise nature of the remedy has never been distinctly ascertained (/). Escheat. A lord taking by escheat stands on a somewhat different footing, for he is not an assign of the trustee either in the per (a) Pawlett y. Attorney- General, Hard. 46Y, per Lord Hale ; Kennedy V. Daly, 1 Sch. & Lef. 373, per Lord lledesdale ; Fineh v. JEarl of Win- chelsea, 1 P. W. 277; Burgh v. Burgh, Eep. t. rincli, 28. In the late case of Whitworth v. Qaugain, 1 Cr. & PhiL 325, wliere a person made a deposit of title deeds, and then a judgment was entered up against him, Lord Cottenham ex- pressed a doubt whether the judg- ment creditor, if he had no notice, would be bound by the prior eq[uity. However, such a, doctrine was not tenable, for a judgment creditor is not a purchaser for valuable con- sideration. Brace v. Duchess of Marlborough, 2 P. W. 491. He ad- vances money, but not on the security of this estate. He may take the person of his debtor, or his goods and chattels, and if he is put in possession of the lands, it is not as purchaser of them, hut by course of law. The cause was afterwards heard, and Lord Cottenham' s doubts were displaced by a decision the other way, 3 Hare, 416; 1 Phil. 728. In Watts v. Porter, Q,. B. 1 Jur. N. S. 134, three of the four judges, while ap- proving of Whitworth v. Qaugain, refused to apply the principle of it to a case of stock. The remaining judge differed, and held that in per- sonal as in real estate, the specific incumbrancer, though he gives no notice to the trustee,, prevails over the judgment creditor, though he has obtained a charging order. It is conceived that the single judge took the clearer view. Those who determined the other way, seem to have assumed that notice was ne- cessary for the transfer of an equi- table interest, which is not true, as be- tween assignor and assignee, but only as between two contending assignees. The ease has since been disapproved by the highest authorities, Beman V. Lord Oxford, 2 Jur. N. S. 121. (6) Foley ^. Burnell, 1 B. C. C. 278, per Lord Thurlow. (c) See supra, p. 276. {d) Burgess v. Wheate, 1 Ed. 203, per Sir T. Clarke ; ib. 25% per Lord Henley. (e) Wihes's case. Lane, 54, agreed. (/) Burgess v. Wheate, 1 Ed. 252 ; and see Pawlett v. Attorney- General, Hard. 467, which was a case of forfeiture, though treated by Lord Hale as a case of escheat. And see supra, p. 30. CH. XI. S. 3.] ESCHEAT OF THE TRUST ESTATE. 381 or post ; nor does he, as in forfeiture, succeed to the place of the trustee, but claims by a title paramount of his own, by virtue of a condition originally annexed to the land, and wholly independent of the creation of the trust. Lord Mansfield was of opinion, ia Burgess v. Wheate, that a Burgesa v. trust ought to be binding on the lord ; whether the escheat was to be looked upon as a reversion, which it once was, or as a caducary possession ab intestate, which his Lordship conceived it to be in his day (a). Considering the escheat as a reversion, his Lordship contended that every aUenation for creating a trust supposed a concomitant investiture to which the assent of the lord was implied, and therefore it followed that, on failure of heirs of the alienee in trust, the lord could not claim to his own use against the terms of the grant. But to this it may be answered — first, that, since the Statute of Quia Emptores, it is doubtful, whether any such assent of the lord can be supposed; for, should it be optional with the lord to accept the alienee as his tenant or not, it would abridge the subject of that free power of alienation which the statute was intended to confer upon him. On the execution of the convey- ance the alienee holds of the lord above, not by the lord's consent, but by the operation of law. But even admitting the lord to have assented by implication to the transfer of the land, it scarcely seems to follow that he is bound by the terms of the trust; for if A. convey to B. and his heirs in trust for C. and his heirs, the assent of the lord to the ahenation appears to amount only to this — that B. and his heirs shall be tenants of the estate, and shall, as such tenants, hold in trust for C. and his heirs, not that the lord himself will execute the trust, should his own title commence by the determination of B.'s estate. But even supposing the lord to have expressly agreed to execute the trust in the event of an escheat, still, as on failure of heirs of the trustee the legal estate of the pro- perty becomes vested in the lord, could equity, consistently with estabhshed principles, enforce a conveyance against him on a mere voluntary contract ? The verbal agreement of the lord could in no wise be construed a declaration of trust, for, (o) Burgess v. Wheate, 1 Ed. 229. 382 ESCHEAT OF THE TRUST ESTATE. [CH. XI. S. 3. by the Statute of Frauds, every such declaration must be in writing and signed. Considering the escheat in the light of a caducary possession ab intestato, his Lordship's argument was, that, as the lord can only take the estate ab intestato absolutely, he cannot assert a claim so far as the tenant has aliened, and inasmuch as the trustee by a declaration of trust makes a vahd disposition of the estate in equity, it follows that a Court of equity cannot suffer the land to vest in the lord, as if no dis- position had been made. But to this it may be answered, that a disposition by way of trust is of a totally different character from a disposition of the legal estate. The latter is binding upon all, whether in the per or post, whether with notice or without, whether the grantee be a purchaser or volunteer ; but the existence of a trust depends on the equity against the legal tenant personally ; as, if the estate be purchased for a valuable consideration without notice, the trust is determined, and the cestui que trust is without remedy. It follows that, as the lord claims by a title of his own paramount to the creation of the trust, the Court cannot take from him a lawful posses- sion upon the ground of a trust declared by a stranger, and that subsequent to the commencement of the lord's right. A trust is binding only as between the cestui que trust and the trustee, and all claiming by and under them, and does not affect the interest of a third person (a). If an estate were settled on A. and his heirs, with a springing use on a certain event to B. and his heirs, a declaration of trust in fee by A. could not possibly, on the determination of A.'s estate, bind the interest of B. ; yet such a limitation over is hardly to be distinguished from the case of the lord's title by escheat. The only authorities adduced by his Lordship in support of his position were the opinions said to have been expressed by Lord Chief Justice Bridgman and Sir John Trevor (&) ; but the words attributed to the former appear, from his own note-book, never to have been spoken (c) ; and the observation of Sir John Trevor was at the utmost a mere obiter dictum. Sir Thomas (a) Burgess Y. Wlieate, 1 Ed. 251, (6) BurgessY. Wheate, 1 Ed. 230. per Lord Northington. See Intro- (c) See ib. 230, note (o) ; and see (luction, pp. 12, 13. ISir T. Cliirku's observations, ib. 202. CH. XI. S. 3.] ESCHEAT OF THE TRUST ESTATE. 283 Clarke, who assisted with Lord Mansfield in the ease of Bur- gess V. Wheate, declared that cestui que trust was no more relievable against the lord by escheat, than against a sale by the trustee to a purchaser without notice {a) ; and Lord Northington's inclination was apparently the same way, though, as the point was not necessarily involved in the question before him, he refused to conclude himself by any express and direct opinion (&). Trusts also are shaped after the pattern of uses, and it is clear that the lord was not bound by a use. On the other hand it may be said that, whatever may be right on dry technical reasoning, there is an old authority for holding that the lord taking by escheat is liable to the trust (c), and that in modern times the Courts have acted on more liberal principles, and have decided that, where the fee out of which a mortgage term had been carved escheated to the lord, he was allowed to redeem (d), and if the lord take a benefit through the tenant why shall he not sustain an onus ? Indeed an opinion to that effect has recently fallen from the bench in Ireland (e). and should the point, notwithstanding the 13 & 14 Vict. c. 60, to be noticed presently, ever call for a decision, it is not unlikely that the Court may adopt that view. In copyholds there is, properly speaking, no such thing as Copyholds. escheat. The freehold and inheritance are vested in the lord of the manor, and the tenant has no claim but as the lord signifies his pleasure by the entry on the court roll. If the tenant be a trustee, and no trust appears on the roll, there can be no pretence for charging the lord with an equity to which he never assented (/) ; but if a surrender be made upon a trust either expressed or referred to on the roll, the lord is estopped by this evidence of his will, and cannot afterwards claim in contradiction to his grant (g). Customary freeholds have often been treated on the same Customary free- holds. (o) Burgess v. Wheate, 1 Ed. 203. (/) Attorney- General v. Duke of (6) BurgessY. Wheate, 1 'Ei. 24:6. Leeds, 2 M. & K. 343; and see (c) Sales V. England, 1 Eq. Ca. Peachey v. Duke of Somerset, 1 Str. Ab. 384. 454 ; Burgess v. Wheate, X Ed. 231. {d) Viscount Downe v. Morris, 3 {g) Burgess y. Wheate, 1 Ed. 231, Hare, 394. per Lord Mansfield ; Weaver v. (e) White v. Baylor, 10 Ir. Eq. Maule, 2 R. & M. 97. Rep. 54. 284 EQUITY OF REDEMPTION. [CH. XI. S. 3. footing with copyholds (a), but perhaps upon principle a clear distinction may be taken. In customary freeholds the tenure is copyhold, but in respect of interest the freehold and inherit- ance are in the tenant, and, on failure of his heirs, the lord takes in the strict sense of the word by escheat. The lands are passed by the bargain and sale, and the subsequent sur- render and admittance operate merely as notice to the lord of the transfer, and acceptance by him of the grantee as tenant {h). If a surrender therefore be made to A. and his heirs upon trust for B. and his heirs, and the trust be entered on the roll, the effect would be the same as on the alienation of a freehold ; the lord merely assents that A. shall be his tenant, and shall, as tenant, hold the land upon certain trusts, not that the lord himself will be a trustee, should his own title commence by escheat. And even should the construction be carried to that extent, the cestui que trust would still not be relievable in equity, the agreement being merely a voluntary one, and not in writing and signed as required by the Statute of Frauds. Equity of re- A distinction was taken by Lord Hale between a trust and an equity of redemption. "A trust," said his Lordship, "is created by the contract of the party, and he may direct it as he pleaseth, and he may provide for the execution of it, and therefore one that comes in in the post shall not be liable to it without express mention made by the party ; and the rules for executing a trust have often varied, and therefore they only are bound by it, who come in in privity of estate ; but a power of redemption is an equitable right inherent in the land, and binds all persons in the post or otherwise (c), because it is an ancient right which the party is entitled to in equity " (d). But upon this distinction it must be observed, that even a trust wiU. at the present day bind persons who take derivatively from the trustee, though in the post ; and notwithstanding an equity of redemption amounts to what Lord Hale calls a title (e), there (a) Weaver Y. Maule, 2 R. & M. {d) Pawlett Y. Attorney- Oenerd, 100, ^ej- Sir John Leaoh. Hard. 469; and see i?oco« v. ^«eo», (6) Bingham v. Woodgate, 1 R. & Tothill, 133 ; Burgess v. Wheats, 1 M. 32. Ed. 206 ; Tucker v. Thurstan, 17 (c) /Semife not a purchaser without Ves. 133. notice; see Harding y. Hardrett, (e) SeePawletty. Attorney- Gene- lie^, t. Finch, 9 ; Spurgeon v. Col- ral, Hard. 467. Her, 1 Ed. 55. demption. CH. XI. S. 8.] FORFEITURE AND ESCHEAT ACT. 885 seems to be no reason why in the ease of escheat the lord, who takes by title paramount, should be bound by an equity of redemption any more than by a simple trust (a). In a late ease (b), however, the distinction between an equity viseount Downe of redemption and a trust was observed upon, and the Court "' °™^' manifested an opinion that a lord who was in by escheat would be bound by an equity of redemption, if not by a trust. And in the same case was decided the point before referred to, that a lord who is in by escheat is entitled to redeem a mort- gage term created by the party whose estate has escheated (c). According to the actual state of the decisions, the 3 & 4 Real estate W. 4. c. 104 (which subjects a person's real estate to the assete*i^the payment of his simple contract debts), annexes the quality of tandsofthelord. assets to the estate itself, and, subject to the right of aliena- tion in the heir or devisee (d), creates a charge on the estate for the benefit of the creditors (e). It has been held, therefore, that a debtor's estate is assets even in the hands of the lord taking by escheat (/). The law relating to the forfeiture and escheat of trust estates, 4 &.5 (Jul. 4. except so far as it illustrates general principles, became, upon the passing of the 4 & 5 Will. 4. c. 23, of little importance. By sect. 2 of that act, it was enacted, that where any person seised of any lands upon any trust, or by way of mortgage, died without an heir, it should be lawful for the Court of Chancery (on application as directed by the Act) to appoint a person to convey. And by the following section it was declared, that " no land, chattels, or stock, vested in any person upon any trust or by way of mortgage, or any profits {a) See Burgess v. Wheate, 1 Ed. {d) Spuckman v. Timhrell, 8 Sim. 255; Attorney-General Y. Buke of 253; JRiehardsonr. Horton,mea.Y. Leeds, 2 M. & K. 344. Pawlett v. 112 ; Pimm v. Insall, 7 Hare, 193, Attorney-General, Hard. 465, in 1 Mae. & Gor. 449. wHoli Lord Hale and Baron Atkins (e) Evans v. Brown, 5 Beav, 116. thougtt the king was bound by an N.B. Thia case was appealed and equity of redemption, was not a case compromised. Samerh Devisees, 2 of escheat, as called by Lord Hale, De Gez, M. & G. 306 ; Beale v. hut oi forfeiture. Symonds, 16 Beav. 406; Kinderley (5) Viscount Downe v. Morris, 3 v. Jervis, 2 Jnr. N. S. 602. Hare, 394. (/) JEvansY. Brown, 5 Beav. 116; (c) Viscount Downe v. Morris, 3 and see Viscount Downe v. 3forris, Hare, 394. 3 Hare, 394. 386 FOEFEITUEE AND ESCHEAT ACT. [CH. XI. S. -5. thereof, should escheat or be forfeited to his Majesty, his heirs or successors, or to any corporation, lord of a manor, or other person, by reason of the attainder or conviction for any offence of such trustee or mortgagee, but should remain in such trustee or mortgagee, or survive to his co-trustee, or descend to or vest in his representative, as if no such attainder or conviction had taken place." And by the last section it was provided, that " where before the passing of the Act any person possessed of land, chattels, or stock, as trustee thereof, should have died without an heir, or should have been convicted of any offence, whereby the said land, chattels, or stock, had escheated or been forfeited, the said land, chattels, or stock should be subject to the order of the Court of Chancery for the use of the party beneficially interested therein, the proviso not to affect any grant made subsequently to the escheat or forfeiture, and not to ope- rate where more than twenty years have occurred since the escheat or forfeiture." 13 & 14 Vict. This Act was repealed by 13 and 14 Vict. c. 60, whereby it was enacted by the 15th sect, that " when any person seised of any lands upon any trust, should have died intestate as to such lands without an heir, or it should not be known who was his heir or devisee, it should be lawful for the Court of Chancery to make an order vesting such lands in such person or persons, in such manner and for such estate as the Court should direct ;" and by the 19th sect, it was enacted that, "when a mortgagee should have died without having entered into possession, and the mortgage money should have been paid to a person entitled to receive the same, or such person should consent to the order, it should be lawful for the Court of Chancery to make an order vesting such lands in such person or persons, in such manner and for such estate as the Court should direct, in any case where the mortgagee had died intestate as to such lands, and without an heir, or should have died and it should not be known who was his heir or devisee ;" and by the 46th sect, it was enacted that, " no lands, or stock, chose in action, vested in any person upon any trust, or by way of mortgage, or any profits thereof, should escheat or be forfeited to the Crown, or to any corporation, lord of the manor, or u. 60. CH. XI. S. 3.] DISSEISIN OF THE TRUST ESTATE. 287 any other person by reason of the attainder or conviction for any offence of such trustee or mortgagee." Thus of trust property in future there will be no forfeiture by the attainder or conviction of the trustee, and no escheat by his attainder; and in case of escheat for failure of heirs the Court will have authority, upon summary application, to transfer the legal estate. If a trustee be outlawed, and the outlawry be for treason or OutlaTvryofthe felony, it amounts to conviction (a), and escheat and forfeiture ™^ ^^' of lands, and chattels, though held upon trust, would, until the above acts, have ensued, but is now expressly saved by it. If the outlawry be on an indictment for a misdemeanor or in a personal action, it is not a conviction, but merely a contempt of Court (6), and punishable with forfeiture of the profits of the outlaw's lands, and of his chattels, real and personal, abso- lutely. In this case, therefore, the statute not applying, the forfeiture remains the same as at common law. If the trustee become bankrupt, and do not surrender him- Bankruptcy, self, &c., he is guilty of felony (c), and the consequence is, that his lands and goods escheat and are forfeited as in felony generally. But he must first be convicted of the offence by a proper Court, either in fact by verdict or in law by outlawry, and then the above statute saves the forfeiture as regards trust estates. A disseisor is not an assign of the trustee either in the per or A disseisor not the post, but holds by a wrongful title of his own, and adversely ^ ™sl ^ to the trust. The first resolution in Sir Moyle Finch's case, was, that "a disseisor was subject to no trust, nor any subpoena was maintainable against him, not only because he was in the post, but because the right of inheritance or freehold was determinable at the common law, and not in Chancery, neither had the cestui que use (while he had his being) any remedy in that case" {d). And we may add the authority of Lord St. Leonards, who, ia his edition of Gilbert on Uses, observes, " At this day every one is bound by a trust who obtains the (a) Co. Lit. 390 b. ; Holloway's (c) 12 & 13 V. o. 106, ^. 251. case, 3 Mod. 42 ; King v. Ayloff, ib. [d) Sir Moyle FincK's case, 4 Inst. 72. 85. (5) Rex V. Tippin, Salk. 494. 288 DISSEISIN OF THE TEUST ESTATE. ^ [CH. XI. S. 3. estate without a valuable consideration, or even for a valuable consideration if with notice, unless perhaps the lord by escheat. But persons claiming the legal estate by an actual disseisin, without coUusion with the trustee, will not be bound by the trust. Therefore, if I oust A., who is a trustee for B., and a claim is not made in due time, A. will be barred, and his cestm que trust with him, although I had notice of the trust" (a) (1) ; and the same may be inferred from the terms of the section of the late Limitation Act relatiag to express trusts (fe). (o) GUb. on Uses, Sugd. ed. 429. (6) 3 & 4 W. 4. e. 27, s. 25. (1) And an outstanding term in a trustee will attend the inheritance gained by the disseisin. Reynolds v. Jones, 2 Sim. & Stu. 206 ; and see Turner v. Buoh, 22 Vin. Ah. 21 ; Doe v. Price, 16 M. & W. 603. CHAPTER XII. GENERAL PROPERTIES OP THE OFFICE OF TRUSTEE. Feom the estate of the trustee we pass to the consideration of his office, and upon this subject we may, in the first place, investigate the general properties annexed to the office, as. First. A trustee having once accepted cannot afterwards renounce it. Secondly. He cannot delegate it. Thirdly. In the case of co-trustees the ofiice must be exercised by all the trustees jointly. Fourthly. On the death of one trustee the trust will pass to the survivors or survivor. Fifthly. One trustee shall not be liable for the acts of his co-trustee. Sixthly. A trustee shall derive no personal benefit from the trusteeship- I. It is a rule, without any exception, that a person who Trustee cannot has once undertaken the office, either by actual or constructive acceptance ^'^ acceptance, cannot discharge himself from liability by a sub- sequent renunciation. The only mode by which he can obtain a release is either under the sanction of a Court of Equity, or by virtue of a special power in the instrument creating the trust, or with the consent of all the parties interested in the estate (a). Thus, where A. was named executor, and acted in behalf of Executor cannot some particular legatees, but disclaimed the intention of inter- he\as aotedr fering generally, and then renounced, and B. obtained letters of administration cum testamento annexo, and possessed him- self of assets, and died insolvent, it was held that A. having acted, could not afterwards discharge himself, and was respon- sible for the devastavit committed by B. (ft). , (a) See Doi/le v. MaJce, 2 Sch. & (b) Doyle v. JSlake, 2 Soh. & Lef. Lef. 245 ; Chalmer v. Bradley, 1 J. 231 ; see Lowry v. Fulton, 9 Sim. & W. 68. 123. 290 RENUNCIATION. [CH. XII. Immaterial whether the executor has proved the will or not. Moorcrofl ». Dowding. So, in another case, where A., having possessed himself of assets, renounced the administration, and the same day B. proved the will, and A handed over part of the assets to him, and afterwards A., having received other assets by authority from B., handed them over in like manner. Sir Thomas Clarke delivered his opinion, that, as A. had administered, though without having proved the will, the attempt at renunciation was void, and he ought to be charged with all the subsequent receipts (a). Though a trustee may have given a bond for the due execu- tion of the trust, and the cestui que trust may have recovered upon the bond, and been paid the money, yet, if the cestui que trust afterwards bring his bill to compel a conveyance, the trustee cannot divest himself of his fiduciary character by pleading that the penalty of the bond was a stated damage for the breach of trust, and that on payment of the penalty the trustee was to be released. A conveyance, however, will not be decreed without an allowance to the trustee of the penalty recovered upon the bond, with interest at the usual rate (6). Trustee cannot delegate the office. II. The office of trustee, beiag one of personal confidence, cannot be delegated. " Trustees," said Lord Langdale, " who take on themselves the management of property for the benefit of others, have no right to shift their duty on other persons ; and if they do so they remaia subject to responsibility towards their cestuis que trust for whom they have undertaken the duty"(c). If a trustee, therefore, confide the application of the trust fund to the care of another, whether a stranger ("p 300 SUEVIVOESHIP OF THE TEUST. [CH. Xn. or administratorship survives (a) ; for " if," says Lord Talbot, " a joint estate at law will survive, why shall not a joint administration, when they both have a joint estate in it ? " (b). So a testamentary guardianship vests in the survivors, for, as guardians may bring actions and avow in their own names, may grant leases during the minority of the ward, and demise copyholds even in reversion as lords pro tempore, it is evident they have an interest (c). It follows that as co-trustees have an authority coupled with an interest, their office also must be impressed with the quality of survivorship (d) : as if an estate be vested in two trustees upon trust to sell and one of them die, the other may sell (e); and if an advowson be conveyed to trustees upon trust to present a proper clerk, the survivors or survivor may present (/). Otherwise,, indeed, the more precau- tion a person took by increasing the number of the trustees, the greater would be the chance of the abrupt determination of the trust by the death of any one. Even where the trust was to raise the sum of 3000Z. out of the testator's estate "by sale or otherwise, at the discretion of his trustees, who should invest the same in the names of the said trustees upon trust," &c., and one of the two trustees died, and the survivor sold; Vice-Chancellor Wood decided that the survivor could make a good title. " I find," he said," a clear estate in the vendor, and a clear duty to perform. He has executed his duty, and I am asked to say that he has committed a breach of trust. Can I do that ? He has a duty imposed upon him to raise the (o) Adams v. Buckland, 2 Vern. Owilliams v. Sowell, Hard. 204 ; 514 ; Hudson v. Sudson, Kep. t. Billingsley v. Mathew, Toth. 168. Talb. 127. (e) See Co, Lit. 113 a; Warbur- (b) Hudson v. Sudson, Rep. t. ton v. Sandys, 14 Sim. 622 ; Watson Talb. 129. V. Pearson, 2 Exoh. Rep. 594. (e) JEyre v. Countess of Shaftes- (/) &e& Attorney-Generals. BUhop Jwry, 2 P.W. 102. But if joint guar- of Zitchfield, 5 Yes. 825; Aftorney- dians be appointed by the Court, tbe General v. Cuming, 2 Y. & C. Ch. oflB.ce, on tbe death of one, ia at an Ca. 139. If two trustees employ a end; BradshawY. BradshaWjlRu&s. solicitor, the surviving trustee may 528; Sallv. Jones, 2 Sim. 41. file a bill against the soUoitor for an {d) Hudson v. Hudson, Rep. t. account, without making the repre- Talb. 129, ^er Lord Talbot; Co. Lit. sentative of the deceased trustee a 113 a; Attorney- General y.Glegg, party; Slater v. Wheeler, 9 Sim. Amb. 685, per Lord Hardwicke ; 156. CH. Xri.] SURVIVORSHIP OF THE TRUST. 301 money : he has the necessarj' estate given to him for that purpose. Is it to be said that this is a breach of trust because the co-trustee is dead ? If I were to lay down such a rule it would come to this, that wherever an estate was vested in two or more trustees to raise a sum by sale or mortgage, you must come to the Court on the death of one of the trustees " {a). The survivorship of the trust will not be defeated because the Trust surTives, . . .,..., though there be settlement contains a power for restoring the original number a power of ap- of trustees by new appointments (6); unless there be some- 4°™*^^° " "^^ thing in the instrument that specially manifests such an intention (c). Even in an Act of Parliament, which declared in very strong terms that the survivors should (d), and they were thereby required to appoint new trustees, the Court said the proviso was analogous to the common one in settlements, and expressed an opinion (for the decision was upon another point), that the clause was not imperative, but merely of a directory character (e). The case oi Attorney-General v. The Bishop of Litchfield (/), Attorney-Gene- ral V. Litchfield, may be cited as touching upon this subject. A testator had devised to eight persons and their heirs the donation and parsonage of a rectory, and " desired their care to present from time to time a learned, painful preacher, honest in life and conversation, whereby souls might be gained to Christ;" and directed that "the three last survivors should make choice of new trustees to be added to them successively to present." The representative of the last surviving trustee conveyed to one Hodgets and his heirs; Eliza, the wife of Foley, was the heiress-at-law of Hodgets, and, the advbwson («) Lane v. Debenham, 17 Jur. Walk. 245 ; and see Jacob v. Lucas, 1005. 1 Beav. 436. (6) See Doe v. Godwin, 1 D. & K. (/.?™ v. im, 3 Y. 008, per Lord Alvanley. & C. 3-59. CH. XII.] LIABILITY OF CO-TRXJSTEES. 315 Thus, if a bill of exchange be remitted to two agents pay- ^^ i° bills of ex- ° . r . change, held able to them personally, who on the death of their principal are jointly. made his executors, the mere indorsement of one, after they are executors, in order to enable the other to receive the money, will not operate to charge him who does not actually receive («). And so where the joining of both executors is necessary to And in transfer of stock, the transfer of stock {b). But even where the ioining of an executor is absolutely tTniees the act be _ with improper indispensable, it is still incumbent on the executor to see that view. the act in which he joins is perfectly consistent with the due execution of the trust (c). And the executor will not be excused if he rely on the mere Executor must representation of his co-executor as to the necessity or pro- j^^re representa- priety of the act, for the executor has imposed upon him at tioiofl"sco- s- ^ ^ 1 r executor. least ordinary and reasonable diligence to inquire whether the representation is true (d). And if, at a period when in the ordinary course of adminis- Greater caution l'6QUir6Q. Wil6rG tration the debts should long since have been discharged, an the testator has executor is applied to by his co-executor to join in a transfer been long dead. of stock for the purpose of payment of debts, and the executor does inquire, and ascertains there are such debts, but after- wards it turns out that the co-executor had in his hands a fund sufficient for the payment of the debts, in such a case the executor who joins in the receipt is liable to the imputation of negligence for not having acquainted himself how the co- executor had dealt with the assets during the preceding period, and is liable for the application of the money he enables the co-executor to receive (e). («) Hovey v. Blaheman, 4 Ves. 186; Shipbrooh y . Hinchinhrook, \\ 608, per Lord Alvanley. Ves. 252 ; Zhiderwoocl v. Stevens, 1 (J) Chambers Y. Minchin, 1 Ves. Mer. '712; -BickY. Motley, 2 M. & 197, per Lord Eldon ; Shiphrook v. K. .312 ; Williams y. Nixon, 2 Beav. Sinehinbrook, 11 Ves. 254; S. C. 472; HeicettY. Foster, &'&&a.Y.25'd. X&'^es. 4:'%, per eundem ; see Mur- {d) Shipbrook y. HincJiinbrook, 11 rell Y. ■ Cox, 2 Vern. 570, and com- Ves. 252, see 254 ; Underwood v. pare Scurjield y. Howes, 3 B. C. C. Stevens, 1 Mer. 712 ; HewettY. Fos- 94; (note, the doctrine at the period ter, 6 Beav. 259. of the last case had not been set- (e) SliipbrookY. Hinchinbrook, 11 tied) ; and see Moses v. Levi, 3 Y. Ves. 254, per Lord Eldon ; Bick v. & C. 359. Motley, 2 M. & K. 312. (c) Chambers v. Minchin, 7 Ves. 316 LIABILITY OF CO-TRUSTEES. [oh. XII. Executor must not leave the money in the hands of the co- executor. Not called upon to make good what was pro- perly applied. Liability of exe- cutor for money in the hands of a co-executor. Co-administra tors on same footing as co- executors. How trustee ought to act And the executor will be answerable if he leave the monej', as for two years, in the hands of the co-executor, when by the terms of the trust it ought to have been invested on proper securities (a). But, of course, an executor will not be called upon to replace so much of the fund as it can be proved the co-executor bond fide expended toward the purposes of the trust (b). A notion was very commonly entertained, until recent deci- sions, that if an executor merely proved the will and remained passive, he incurred no liability for a devastavit by the co- executors ; but the contrary has now been established. Thus, in Styles v. Guy (c), a testator appointed three executors, all of whom proved the will ; but one of them, viz., Guy, was the acting executor. Guy, at the death of the testator, had large assets in his hands, with which he eventually absconded. The two co-executors were held responsible for the loss ; and though free from blame morally, had to pay upwards of 20,000Z. out of their own pockets. They knew, or ought to have known, that Guy was a debtor to the estate ; and having by probate accepted the executorship, it was their duty to have recovered the debt from Guj^ as from any other debtor to the estate, and this they neglected to do for a period of six years. The rules respecting co-executors are equally applicable to co-administrators. Ijord Hardwicke once expressed an opi- nion, that joint administrators resembled rather co-trustees, and that any one of them could not exercise the office without the concurrence of the rest (d) ; but it was afterwards deter- mined in the Court of King's Bench, that joint administrators and co-executors stood in this respect precisely on the same footing (e). To return to the liabilities of co-trustees, if one trustee be (a) Scurfieldy. Howes, 3 B. C. C. 91 ; and see Lincoln v. Wright, 4 Beav. 427. (J) Shipbrook v. Hinchinhrook, 1 1 Yes. 252 ; S. C. 16 Ves. 477 ; Wil- liams V. Nixon, 2 Beav. 472 ; Kilbee Y. Sneyd, 2 Moll. 213, per Sir A. Hart ; Underwood v. Stevens, 1 Mer. 712 ; and see Brice v. Stokes, 11 Ves. 328; Hewett v. Foster, 6 Beav. 259. (c) 1 Mac. & Gor. 422 ; and see Sciilly V. Delany, 2 Ir. Ec[. Eep. 165. {d) Hudson v . Hudson, 1 Atk. 460. (e) Willandy.Fenn, cited Jacomh V. Harwood, 2 Ves. 267. CH. XU.] LIABILITY OF CO-TEUSTEES. 317 cognisant of a breach of trust committed by another, and either where a breach industriously conceal it {a), or do not take active measures for fitted by a oo- the protection of the cestui que trust's interest (fe), he wiU him- *™^*^^- self become responsible for the mischievous consequences of the act. A trustee is called upon, if a breach of trust be threatened, to prevent it by obtaining an injunction (c), and, if a breach of trust has been already comrmUed, to file a bill for the restoration of the trust fund to its j)roper condition {d), or, at least, to take such other active measures, as, with a due regard to all the circumstances of the case, may be considered the most prudential (e). An express clause is usually inserted in trust-deeds, that Effect of the in- one trustee shall not be answerable for the receipts, acts, or ^°^^ ^ "^ '"'^^^' defaults of his co-trustee. But the proviso, while it informs the trustee of the general doctrine of the Court, adds nothing to his security against the liabilities of the office. In Westley V. Clarke (/) Lord Northington was incliued to attach some importance to the clause. " The testator," he said, "might direct the condition of his executors so as not to be questioned by his volunteers. The proviso, therefore, that one executor should not be answerable for the acts of another, though not very frequent in wills, was a good proviso between executors and legatees who took under the will." But equity infuses such a proviso into every trust-deed (g), and a party can have no better right from the expression of that which, if not expressed, had been virtually implied (h). It is clear, that, in later cases, the Court has considered it an immaterial cir- cumstance whether the instrument creating the trust contained such a proviso or not (i). (a) Boardman v. Mosman, 1 B. C. {d) Franco v. Franco, 3 Ves. 7n ; C. 68. Farl Powlet v. Herbert, 1 Ves. Jan. (5) Brice v. StoTtes, 11 Ves. 319; 297. and see Walker v. Symonds, 3 Sw. (e) See Walker v. Symonds, 3 Sw. 41; Oliver y. Court, 8 Price, 166; 71. In re Chertsey Market, 6 Price, 279; (/) 1 Ed. 360. Attorney-General-^, Holland, 2 T. {g) See Dawson y. Clarke, 18 Yes. & C. 699 ; Booth v. Booth, 1 Beav. 254. 125; Williams v. Nixon, 2 Beav. (/») Worrally. Harford, 8 Yes. 8. 472 ; Blackwood v. Borrowes, 2 (») Brice y. Stokes, 11 Ves. 319; Conn. & Laws. 477. Bone v. Cook, M'Clel. 168 ; S. C. 13 (e) See In re Chertsey Market, 6 Price, 332 ; Hanhury v. Kirkland, Price, 279. 3 Sim. 265 ; Moyle v. Mmjle, 2 R. & 318 TRUSTEES NOT TO PROFIT BY THE TRUST. [CH. XII. Trustee shall derive no advant- age from the trust. Not entitled to the game on the trust estate where it can he let. Nor to the pre- sentation of an advowson. Trustee may not huy up dehts for himself. garded as a trustee. VI. It is a general rule established to keep trustees in the Une of their duty, that they shall not derive any personal advantage from the administration of the property committed to their charge (a). It was upon this principle that Lord Eldon once directed an inquiry, whether the liberty of sporting over the trust estate could be let for the benefit of the cestuis que trust, and, if not, he thought the game should belong to the heir ; the trustee might appoint a gamekeeper, if necessary for the preservation of the gamej but not to keep up a mere establishment of pleasure (6). So, if an advowson be devised to trustees upon trust to sell, and, before the sale has been effected, a vacancy occurs, the right of presentation is not to be exercised by the trustee at his own pleasure, but he must adopt the nomination of the testator's heir at law (c). So, if trustees or executors buy in any debt or incum- brance to which the trust estate is liable for a less sum than is actually due thereon, they will not be allowed to take the benefit to themselves, but the other creditors or legatees shall have the advantage of it ; and if there be no such claimants, it shall go to the party who is entitled to the surplus (d). Mortgagees are to some though not to all intents and pur- poses trustees, and in one case, the authority of which, how- M. 710; Sadler Y. ITobbs, 2B. C. C. 114; 3fueMoWY. Fuller, Jao. 198; Pride v. Fooks, 2 Bear. 430 ; Wil- liams V. Nivon, 2 Beav. 472. (a) Burgessy. Wheate, 1 Ed. 226, per Lord Mansfield; ib. 251, per Lord Henley ; O'Herlihy v. Hedges, 1 Sch. & Lef. 126, per Lord Redes- dale ; Fx parte Andrews, 2 Rose, 412, per Sir T. Plumer ; Middleton V. Spicer, 1 B. C. C. 205, per Lord Thurlow ; Docker v. Somes, 2 M. & K. 664, per Lord Brougliani ; Oub- hins V. Creed, 2 Sch. & Lef. 218, per Lord Redesdale ; and see Hamilton V. Wright, 9 CI. & Fin. Ill ; Bent- ley V. Craven, 18 Beav. 75. (5) Webb V. Farl of Shaftes- bury, 7 Ves, 480, see 488 ; and see Hutchinson v. Morritt, 3 T. & C. 647. (c) Hill V. Bishop of London, 1 Atk. 618 ; In re Shrewsbury School, 1 M. & Cr. 647 ; Martin v. Martin, 12 Sim. 579 ; Sherrardy. Lord Har- borough, Amb. 165 ; Coohe v. Chol- mondeley, 3 Drewry, 1 ; and see Hawkins v. Chappell, 1 Atk. 621 ; Gubbins v. Creed, 2 Soh. & Lef. 218. {d) Robinson v. Pett, 3 P.W. 251, note (A) ; Barcy v. Hall, 1 Vern. 49 ; Ex parte Lacey, 6 Tes. 628, per Lord Eldon ; Morrett v. Paske, 2 Atk. 54, per Lord Hardwioke ; Anon. 1 Salk. 1 55 ; Carter v. Home, 1 Eq. Ca. Ab. 7 ; Bunch v. Kent, 1 Vern, 260 ; Fosbrooke v. Balgvy, 1 M. & K. 226. CH. Xn.] TRUSTEES NOT TO PROFIT BY THE TRUST. 319 ever, has been doubted, where a mortgagor in fee died, and the mortgagee bought in the mortgagor's wife's right of dower it was decreed that the heir of the mortgagor, on bringing his bill to redeem, might take the purchase at the price paid (a). Again, if trust monej^ be laid out by a trustee in buying and Trustee trading selling land, and a profit be made by the transaction, that shall estate must go, not to the trustee who has so applied the money, but to the '^^gYs* ^"^ ^^ cestui que trust whose money has been applied (6). So, where a trustee or executor has used the fund committed to his care in stock speculations, though any loss must fall exclusively upon himself, he must account to the trust estate for every farthing of profit. If he lay out the trust money in a com- mercial adventure, as in buying or fitting out a vessel for a voyage, or put it in the trade of another person from which he is to derive certain stipulated gains (c), or if he employ it him- self for the purposes of his own business, in all these cases he must account to the cestui que trust for the profits {d). As the trustee of an estate cannot receive any advantage Trustee may not from it, he cannot be appointed the receiver at a salary (e) ; and ^^^^^ estate. even should he offer his services gratuitously, he would not be appointed except under particular circumstances, for it is the duty of the trustee to superintend the receiver and check the accounts with an adverse eye (/) ; but if a person be merely a trustee to preserve contingent remainders, the reasons for excluding him are held not to be applicable (g). So a trustee or executor who is a factor (h), broker (i), com- (a) Baldwin v. Banister, cited Hare, 603 ; Cummins v. Cummins, Robinson v. Pett, 3 P. W. 251, note 8Ir.Eq.Eep. 12Z; Parker Y.Bloxam, (A), and see comments thereon ; 20 Beav. 295. Dobson V. Land, 8 Hare, 220 ; and (e) Sutton v. Jones, 15 Ves. 584 ; compare Arnold v. Oarner, 2 Phil. Syhes v. Hastings, 11 Ves. 363 ; 231 ; MathiUon v. Clarhe, 3 Drewry, 3. • v. Jolland, 8 Ves. 72 ; Anon. (6) Fosbrooke v. Balguy, 1 M. & 3 Ves. 515 ; and see Morison v. K. 226. Morison, 4 M. & C. 215. (e) Backer -v. Somes, 2 M. <& K. (/) St/kes v. Hastings, 11 Ves. 664, per Lord Brougham. 364, per Lord Eldon. [d) S. C. id. 665 ; Wedderhurn v. [g) Sutton v. Jones, 15 Ves. 587, Wedderburn, 2 Keen, 722; S. C. 4 ^er Lord Eldon. M. & Or. 41 ; but see S. C. 2 Jar. N. S. {h) Scattergood v. Harrison, Mose- 674 ; Willett v. Blandford, 1 Hare, ley, 128. 253 ; and see Portlock v. Gardner, 1 [i) Arnold v. Oarner, 2 Phil. 231. 320 TRUSTEES NOT TO PROFIT BY THE TRUST. [CH. XII. mission agent (a), or auctioneer (6), can make no profit from the trust estate in the way of his business. Solicitor a So a trustee who is a solicitor cannot charge the estate for his professional labours, but will be allowed merely his costs out of pocket (c), unless there be a special contract to that effect (d), nor can the charge be made by a firm of which the trustee is a partner (e), even though the business be done by one of the partners who is not a trustee (/) ; but a country solicitor defending a suit in Chancery as executor, through a town agent, will be allowed such proportion of the agent's bill in respect of the defence as such agent is entitled to receive {g). Cradock v. Piper. In one case the principle of the rule was held not to apply where several co-trustees were made defendants to a suit, this being a matter thrust upon them and beyond their own control. One of the trustees, who was a solicitor, was allowed to act for himself and the others, and to receive the fuU costs, it not appearing that they had been increased through his conduct (/*)■ But this decision is open to comment. If the distinction be made betewen costs out of court and costs in court, because, as regards the latter, the conduct of the trustee is under the cognizance of the Court, and the costs are to be taxed, the rule would equally apply to the case of a single trustee defending himself ; yet it is difiicult to conceive any other ground for the distinction (i). The exception made appears to stand by itself, and is not likely to be extended. Indeed where a single trustee defended himself by his partner, the professional profits were disallowed (k). Attorneys, The foregoing principles affect not only express trustees, fre tmXes^°" ^^* ^^^° ^^^ ^^'^^ ^^ ^^^ clothed with the same character by (a) Sheriffs. Axe, i Rusa. 33. (/) Christophers v. White, 10 6) ilffliteow v. CTorSe, 3 Drewry, 3. Beav. 523. (c) New V. Jones, Excli. Aug. 9, {g) Surge v. Burton, 2 Hare, 373. 1833, 9 Bythew. by Jarm. 338; \h) Cradoeh v. Piper, 1 Mac. &, Moore v. Frowd, 3 M. & Cr. 46; Gor. 664; S. C. 1 Hall. & Tw. 617; Fraser v. Palmer, 4 Y. & C. 515 ; overruling Bainhrigge v. Blair, 8 YorkY. Brown, 1 Coll. 260; Brough- Beav. 588. ton V. Broughton, 5 De Gex, Mao. & (i) See Brovghton v. Broughton, Gor. 160. 2 Sm. & Gif. 422 ; 5 De Gex, Mao. {d) In re Sherwood, 3 Beav. 338. & Gor. 160. (e) Collins v. Carey, 2 Beav. 128; [k) Lyon v. Baker, 5 De Gex & Lincoln v. Windsor, 9 Hare, 158. Sm. 622. CH. XII.] TRUSTEES NOT TO PROFIT BY THE TRUST. 321 construction of law, as if a person purchase an estate with another's money, or invest another's property in some trade or speculation (a). So, an attorney, guardian, or other person invested with a fiduciary character, must account for all profits to the client, or infant, or other party whose confidence he has abused {b). However, a trustee may by possibility derive a benefit from Trustee may ao- the trust estate, not from any positive right in himself, but advantaged, aa from the want of right in any other ; as if lands be vested in J^i^f of ftf A. and his heirs upon trust for B. and his heirs, and B. die cestui que trast. without an heir, the equitable interest in this case can neither escheat to the lord(c), nor, if the trust was created by con- veyance from B. whose seisin or title wa.s' ex parte paternd, can the lands, upon failure of heirs in that line, descend to the heir ex parte maternd id) ; but the trustee, no person remaining to sue a subpoena, must, as the legal proprietor, himself enter upon the beneficial enjoyment. Lord Hale was clearly of this opinion, and compared it to the case of the grantee of a rent charge in fee dying without heirs, when the tenant of the land should hold it discharged of the rent (e). In Burgess v. Wheate Sir Thomas Clarke said he would give no opinion on the right of the trustee, but at the same time admitted the trustee must hold until a better right appeared (/). Lord Henley seemed to entertain no doubt upon the subject, and considered Lord Hale's illustration by the extinguishment of a rent as a sufficient answer to the objection of want of title in the trustee icf), and the point must now be considered as clearly settled Qi). But if an estate be held by A. upon trust for B., and B. die Ouslowt).Wallis. without leaving an heir, but having devised the estate to C. and D. upon trusts, which fail or do not exhaust the beneficial (a) Docker ST. Somes, 2 M. & K. (e) Attorney- General v. Sands, 665 ; Crawshay v. Collins, 15 Ves. Hard. 496 ; and see Gary, 14. 218 ; & C. 1 J. & W. 267 ; 8. C. {/) 1 Ed. 212, 213. 2 Euss. 325. [g] 1 Ed. 253. (J) See Docker v. Somes, 2 M. & {h) Taylor v. Haygarth, 14 Sim. K. 665. 8; Davall v. New Miver Company, (c) Burgess V. Wheate, I m. in. 3 De Gex & Sm. 394; Cox v. {d) See id. 186, 216, 256. Parker, 2 Jur. N. S. 842. 329 TRUSTEES NOT TO PROFIT BY THE TRUST. [CH. XII. interest ; A. cannot insist on retaining the estate upon oifering to satisfy the charges, if any, but will be bound to convey the estate to C. and D. as the nominees in the will, and entitled as against A., the bare trustee, and the Court as between those parties will not inquire into the nature of the trust or how far it can be executed (a). Purchaser dying It seems to follow from the principles laid down in Burgess after payment of V. Wlieate, that, where a purchaser has paid the consideration and°beforrcon-^' i^o^ey, and then dies without an heir before the execution of veyance. the conveyance, the vendor must keep both the estate and the money {b). Mortgagor dying In the Same case, and in reference to the supposed event of without an heir. , .„.. ... ^ • ,i .■ a mortgagor in fee dying and leaving no heir, the questions were asked : first, should the mortgagee hold the estate abso- lutely ? and, secondly, if the mortgagee demanded his debt of the personal representative, should he take to himself both the land and the debt? "If the mortgagor," observed Sir Thomas Clarke, " dies without heir or creditor, I see no inconvenience if the mortgagee do hold the estate absolutely ; and as to the supposition that the mortgagee may demand his debt too, I think, if the mortgagee took his remedy against the personal representative, the Court would compel him to reconvey, not to the lord by escheat, but to the personal repre- sentative, and would consider the estate reconveyed as coming in lieu of the personalty, and as assets to answer even simple contract creditors " (c). Lord Mansfield said, " He could not state on any ground established what would be the determina- tion in that case " (d). Lord Henley observed, " The lord has his tenant and services in the mortgagee, and he has no right to anything more. Perhaps it would not be difficult to answer what would be the justice of the case, but it is not to the business in hand " (e). A recent decision of the present Master of the Eolls establishes that the mortgagee holds absolutely, subject only to the qualification that the equity of redemption is assets for the payment of the mortgagor's debts (/). {a) Onslow v. WalKs, 1 Mae. & (d) 1 Ed. 236. Gror. 506. (e) Id. 256 ; and see Viscount (J) 1 Ed. 211, per SirT, Clarke. Bowne v. Morris, 3 Hare, 394. (c) Id. 210. (/) BealeY.Symonds,ieBea.YA06. CH. Xn.j TEtrSTEES NOT TO PROFIT BY THE TRUST. 323 But a failure of inheritable blood may happen not only for Cestui que trust attainted for ony. want of an heir, (as in the case of an illegitimate person dying ^^j without issue), but through the corruption of blood caused by attainder, under the old law for felony, or now for petit treason or murder ; and in the case of such attainder, the question arises, shall the trustee hold against the person attainted if pardoned, or against his heir where attainder is followed by execution ? Sir Thomas Clarke said, " The detain- ing the estate against the Crown where the cestui que trust dies without leaving a relation is different from detaining it against the cestui que trust himself. The Court would go as far as it could, and he thought the trustee would be estopped from setting up such a claim " (a). Lord Mansfield said, " He could not resolve the case upon principle, for he could find no clear and certain rule to go by " (6). But Lord Henley agreed with Sir Thomas Clarke, and asked, " If the King thinks proper to pardon the felon, what hinders him from suing his trustee ? — what hinders him from instantly assigning his trust for the benefit of his family " (c) ? If trusts were to follow the analogy of uses, the heir of the attainted person could not sue his subpoena by reason of the corruption of blood (cZ); but trusts at the present day are administered on much more liberal principles than uses formerly were. A question was put by Lord Mansfield in Burgess v. Wheate, wiiether the but was neither answered at the time, nor received any notice f'^*'^*"' °^ ^^^ ' •' trust can assert from the bench afterwards, viz. whether the right to the estate * claim. might not, in particular cases, result to the author of the trust (e). As, if A. infeoff B. and his heirs upon trust for C. and his heirs, and C. die without heirs, why may not the equitable interest result in favour of A. ? Such a case has never occurred, and there is no authority upon the subject; but the claim of A. appears at least to have some plausibility. As the trustee in these cases advances not a positive, but trustee cannot merely a negative claim, he has no ground for coming into a ""^^ ™*o » <=ourt •' ° ... of equity for his court of equity for the establishment of his right (/). Thus, own benefit. (a) 1 Ed. 210. (e) 1 Ed. 185. (6) Id. 236 ; and see id. 184. (/) See id. 212 ; and see Onslow (c) Id. 255. V. WalUs, 1 Mac. & &or. 506. Id) Br. Feff. al. Us. 34 ; Gary, 14. T 2 324 TRUSTEES NOT TO PROFIT BY THE TRUST. [OH. XD. where A. devised a copyhold estate to B. and his heirs in trust for C. and his heirs, and C. died without heirs, and then B. died, having entered upon the lands, and applied the rents to the trust, hut never having been admitted, and the heir of B. filed a hill against the lord for compelling him to grant him admission. Lord Loughborough said, " The ground for the Court's acting between the lord and tenant is, that the lord de jure may call upon the tenant to be admitted if he stands out, for he has a right to the fine and his services ; and the Court would not let the parties stand in this situation, that the lord who had his remedy against the tenant should, by refusing to caU upon him, prevent him from having evidence of his title under the lord upon the rolls, which are in the lord's keeping. The Court acts in this case upon the ground of the tenant's having the beneficial interest in the land, but is there any instance of a bill sustained upon a mere legal title for an accessory to the legal estate ? If the admission be a legal duty, I do not know what I have to do with it. Burgess v. Wheate, supposing it well decided, established, that, if a man had got the legal estate, the Court would not take it from him, except for some person who had a claim ; but does it follow that the Court will give him the legal estate " (a) ? May assert his As courts of law have no cognisance of any but legal rights, ega ng . j^ should seem that a mandamus might be issued from the Queen's Bench for compelling the admission even of a bare trustee (h). If cestui que If the ccstui que trust of chattels, whether real or personal, Mxt ofkin^ the ^^^ without leaving any next of kin, the beneficial interest will trust chattel goes jjQf jn this case, remain with the trustee, but Hke all other to the Crown. bona vacantia will vest in the King by his prerogative. How- ever, this doctrine will only take effect where the cestui que trust dies intestate (c), or has appointed an executor, who by the language of the will itself is excluded from any beneficial interest (d) ; for an executor not expressly made a trustee by (o) Williams v. Lord Lonsdale, 3 (c) Jones v. Goodehild, 3 P. W. Ves. Y52 ; see 756, 757. 33 ; Rutherford v. Maule, 4 Hagg. (6) See King v. Coggan, 6 East, 213. 431 ; iS. C. 2 Smith, 417 ; King v. {d) Middleton v. Spicer, 1 B. C. Wilson, 10 B. & 0. 80. C. 201 ; Taylor v. Haygarth, 14 CH. 301.] TRUSTEES NOT TO PBOFIT BY THE TBUST. 335 the will, was, before the late act (a), entitled prima facie to the surplus for his own benefit, and that statute has now converted him into a trustee for the next of kin only, and does not seem to have altered the old law, as between him and the Crown, in case there be no next of kin. "We may conclude this head with the general proposition, that a trustee is, under no circumstances, allowed to set up a title adverse to his cestui que trust (6). But though he may not claim against his own cestui que trust, yet he is not bound to deliver over the property to his cestui que trust if he cannot safely do so by reason of notice of title in another which is paramount to the trust (c). Sim. 8; HussellY. Clowes, 2 Colljev, 76; Ux parte Andrews, 2 Rose, 648 ; Powell v. Merrett, 1 Sm. & 412 ; Kennedy t. Daly, 1 Soh. & Gif. 381 ; and see Barclay v. Rus- Lef. 381 ; Shields v. Atkins, 3 Atk. sell, 3 Ves. 424; Henchman v. At- 560 ; Pomfret v. Windsor, 2 Ves. tomey- General, 2 S. & S. 498 ; iS. C. 476 ; Conry v. Caulfield, 2 B. & B. 3 M. & K, 485 ; Cave v. Roberts, 8 272 ; Langley v. Fisher, 9 Beav. 90 ; Sim. 214. Meece v. Trye, 1 De Grex & Sm. (a) 11 G. 4 & 1 W. 4, c. 40. 279. (5) See Attorney-Gen. v. Munro, (c) Neale v. Davies, 5 De Gex, M. 2 De Gex & Smale, 163 ; Stone v. & G. 258. Godfrey, 5 De Gex, Mac. & Gor. CHAPTER XIII. THE DUTIES OF TRUSTEES OF CHATTELS PERSONAL. We next advance to the duties of trustees, and as trusts of chattels personal are of the most frequent occurrence, we may first advert to trustees of property of this description. We may consider this branch of our subject under five heads : — ■ 1. The reduction of the chattel into the possession of the trustee. 2. The safe custody of it. 3. The proper investment of the trust fund. 4. The liability of trustees to payment of interest in cases of improper detainer : and, 5. The distribution of the trust fund. SECTION I. OP KEDTJOTION" INTO POSSESSION. Of reduction into possession. The first duty of trustees is to place the trust property in a state of security. Thus if the trust fund be an equitable interest of which the legal estate cannot be at present trans- ferred to them, it is their duty to lose no time in giving notice of their own interest to the persons in whom the legal estate is vested ; for otherwise the party who created the trust might incumber the interest he has settled in favour of a purchaser without notice (a). If the trust-fund be a chose en action, which may be reduced into possession, it is the trustees' duty to be active in getting it in ; and any unnecessary delay in this respect will be at their own personal risk. CaiTiey v. Darby. Thus, in Caffrey V. Darby (&), a woman, in contemplation of dwse en action. {a) See Jacob y. Lucas, 1 Beav. 481 ; McGachenr. Dew, 15 Beay. 436. 84 ; Wiles v. Gresham, 2 Drewry, (6) 6 Ves. 488 ; and see Platel v. 258 ; Waring v. Waring, 3 Ir Ch. CVa(ZrfocA,C.P.Cooi)er'aCases,1837-8, Rep. 33o. CH. Xin. S. 1.] GETTING IN THE TRUST ESTATE. 327 a second marriage, had assigned a leasehold interest with stock in trade, household goods, &c., to trustees upon trust to raise 8001. to be applied to the purposes in the settlement men- tioned, with a proviso that, so long as her intended husband should pay lOOl. per annum until the whole 800L should be discharged, the trustees should allow him to remain in posses- sion of the premises. In the course of the first four years the trustees were paid to the amount of 250i., but by small instal- ments and at irregular periods, and received nothing afterwards. At the end of eight years the husband became bankrupt, and a great part of the 800Z. was lost. Sir "VV. Grant said, " This was money payable by instalments, not a sum to be paid at once as a mortgage is, and secured, too, partly upon an estate daily diminishing in value, a short lease for twenty-five years commencing three years before the settlement, and upon stock in trade, &c., a sort of property very uncertain in its nature. From these two considerations, the diminishing value of the property and the mode of payment by instalments, I am of opinion the trustees were not justified in any great indulgence, for it was evident the debtor's inability would be constantly augmenting. If he was unable to pay the first instalment, he must be still less able to pay the sums accumulated from permitting them to run together. The cases of payment by instalments and at once are quite different. In the latter the debtor may be able to pay that sum to-morrow, or next year ; but the chance of receiving money by instalments depends upon its being regularly received. Therefore, even though the trustees might not have been under the necessity of exacting from the husband the money on the precise day, yet they ought not to have given great latitude. They were hardly justifiable in permitting two instalments to become due ; still less three ; stiU less four. But here they permit him to remain four years in possession without receiving a shilling. That is evidence he was not prosperous : it did not turn out as well as he expected. It might be supposed that he was running in debt with other people. The trustees might have expected a con- troversy with the creditors. They ought therefore to have taken some step for the security of the infant cestuis que trust, particularly when that is combined with the other circumstance 328 GETTING IN THE TEUST ESTATE. [CH. Xin. S. 1. Tebbs V. Car- penter. Personal Becu- rity. that the property was diminishing in value." And his Honour decreed the trustees to make good the deficiency. Again, a testator had directed the money arising from his rents to be invested by his executors in the 3 per cent, annuities for the purpose of accumulation. Arrears were allowed to run to the amount of 1500L, and from the tenor of the Master's report it was evident, that, by the employment of proper means, the whole of the arrears might have been recovered. The executors produced no evidence in justification of their conduct. Sir Thomas Plumer said, " I am anxious not to discourage persons from acting as executors by throwing difficulties in their way, and I am willing to make every proper allowance ; but I must not forget the established doctrine of this Court. If persons accept the trust of executors, they must perform it ; they must tjse due diligence, and not suffer infants to he injured by their negligence. If there be ceassa negligentia, and a loss sustained by the estate, it falls upon the exemtors. Here, for want of evidence, I cannot say that aU this rent could not have been recovered ; and I am reluctantly obliged to assume that no exculpatory evidence could be produced, and therefore they must be charged with these arrears. Interest upon the arrears was but faintly pressed for, and ought not to be given " (a). An executor is not to allow the assets of the testator to remain outstanding upon personal security (6), though the debt was a loan by the testator himself on what he considered an eligible investment (c). And it will not justify the executor, if he merely apply for payment through his attorney, but do not follow it up by instituting legal proceedings {d). Personal security changes from day to day, by reason of the personal responsibility of the party giving the security; and as a testator's means of judging of the value of that responsibility (a) Tehhs v. Carpenter, 1 Mad. (c) Powell v. Ecans, 5 Ves. 839 ; 290. (5) Lowson V. Copeland, 2 B. C. C.156; Coweyv. 5oMrf, 6Beav. 486; Bailey v. Gould, 4 Y. & C. 221 ; and seeAtiorney- Generaly.Hiyham, a y . & C. Ch. Ca. 634. SuUock V. WJieatley, 1 Coll. 130; and see Tebbs v. Carpenter, 1 Mad. 298 ; Clouffh v. Bond, 3 M. & Cr. 496. {d) Lowson v. Copeland, uhi supra. CH. Xin. S. l.J GKTTING IN THE TRUST ESTATE. 329 are put an end to by his death, the executor who omits to get in the money within a reasonable time becomes himself the security (a). An executor wiU be equally liable, as has lately been decided, if he knows that a co-executor is a debtor to the testator's estate, and does not take the same active steps for recovery of the amount from the co-executor, as it would have been his duty to take against a stranger. And it does not vary the case that the testator himself was in the habit of leaving money in the hands of that co-executor, and treating him as a private banker (b). Nor will an executor be excused for not calling in money on personal security by a clause in the wUl, that the executors are to call in " securities not approved by them ; " for such a direction is construed as referable to securities upon which a testator's property may allowably be invested, and not as authorising an investment which the Court win not sanction (c). If, however, it appears, or there is reasonable gTound for believing, that had legal steps been taken they would have produced no result, the executor or trustee is not liable (d). But where a great part of the assets was outstanding on Buxton v. Mexican bonds, and the executors sold in the course of the second year from the testators decease, it was held by Lord Cottenham, that, if executors were bound at once to convert the assets without considering how far it was for the interest of the persons beneficially entitled, there would of necessity be always an immediate sale, and often at a great sacrifice of property ; that executors were entitled to exercise a reasonable discretion according to the circumstances of the particular case. The will had directed the trustees to convert " with all con- venient speed," but this, observed his Lordship, was the ordinary duty implied in the office of every executor (e). Money outstanding upon good mortgage security an executor Case of trust . . , J, fund outstanding IS not called upon to reause until it be wanted m the course ol on mortgage. (a) Bailey v. Gould, 4 T. & C. [d) Clack Y.JIoUand, 19 Bea.Y. 262; 226, per Baron Alderson. Maitland v. Sateman, 16 Sim. 233, (5) StylesY. Guy, l'M.a.c.&GoiA22. note. (c) Styles V. Guy, 1 Mao. & Gor. (e) Buxton v. Buxton, 1 M. & C. 428 ; and see Scully v. Delany, 2 80. Ir. Eq. Rep. 165. 330 GETTING IN THE TEUST ESTATE. [CH. XIU. S. 1. How money to be received by trustees. Receipts of trustees. administration (a). " For what," said Lord Thurlow, " is tlie executor to do ? Must the money lie dead in his hands, or must he put it out on fresh securities? On the original securities he had the testator's confidence for his sanction, but on any new securities it will be at his own peril " (b). But the trustee is bound to ascertain that there is no reason to suspect the goodness of the security (c). When the property is reduced into possession by actual payment, as both trustees cannot receive, but both must join in signing the receipt, the money may be paid to one without responsibility on the part of the other. But a trustee will not be justified in allowing the co-trustee to retain the money in his hands for a longer period than the particular circumstances of the case may necessarily require. And, indeed, the safer course, where practicable, is, that the money should not be handed to either of the trustees personally, but should, in the first instance, be paid into some bank of credit to their joint account (d). The powers of trustees to sign receipts wiU be considered more at large hereafter, but we may here observe that if money be payable to A., who is simply a trustee for B., it would clearly be a breach of trust to pay it to the trustee against the wishes of the cestui que trust (e) ; on the other hand, if the nature of the trusts be such that the person having the money in his hands could not reasonably be expected to see to the application, he may pay safely to the trustee (/). Some recent cases in Ireland have gone further, and taken a distinction between monies being pure personalty and monies payable on sales or mortgages. Thus where the owner of a policy assigned it to a trustee for a minor without a power of signing receipts, the Master of the EoUs expressed an opinion (for a decision was not then called for), that if the Insurance Company were re- leased from the debt by the person to whom they were liable at («) Orr V. Newton, 2 Cox, 274 ; and see Howe v. Earl of Dartmouth, 7 Ves. 150. (i) Orr V. Newton, 2 Cox, 276. (c) See Ames v. Parhinson, 7 Beav. 384. [d) See post, pp. 332, 333. (e) Pritchard v. Langher, 2 Vern. 197. (/) GT^ynn v. Loche, 3 Dru. & War. 11. CH. XIII. S. 1.] GETTING IN THE TEUST ESTATE. 331 law, and -whom the owner of the policy had constituted the trustee of it, they would not be answerable in equity for the execution of the trusts, and he did not understand how the rules applicable to purchasers of real property could be ex- tended to debtors so as to implicate them in trusts created by their creditors (a). And in another case (6), where the insurer effected a policy in 700Z., and then assigned it to a trustee to pay 400L to one, and 300Z. to another, without an express power of signing receipts, and a bonus of 33i. was added to the policy, and the insurer being dead without a per- sonal representative, and one of the cestuis que trust being also dead without a sufficient personal representative, and the other cestui que trust being in America, the company instituted an interpleader suit, — the Lord Chancellor of Ireland laid down the same distinction as the Master of the Rolls between a personal debt and money arising out of real estate, and held that the trustee could sign a discharge, and that the interpleader suit could not be sustained. In the case of a debt, he said, the person indebted was bound and compellable to pay to some one ; but in the case of realty, the purchaser or mortgagee was a voluntary intervenient, and could pay or not at his owil free will. The decision of the Lord Chancellor may have been correct, for the circumstance of one cestui que trust being abroad, and the other dead without a personal representative, as was also the insurer himself, may have justified the company in paying to the trustee, but the principles laid down went far beyond any previous authority, and it remains to be seen whether they will be adopted by the English courts. In the mean time the suggested distinction between pure personalty and money raised out of realty cannot be relied upon. Where the holder of the money knows that the trustee Eeceiptofa intends to commit a breach of trust, it would not be safe to known to intend pay to the trustee, whether he has an express power of signing receipts or not. But, of course, the fact of such knowledge must be brought home to the person paying, so as to make him particeps criminis, a privy to the fraud (c). (a) Fernie v. Maguire, 6 Ir. Bq. (c) See Fernie v. Maguire, 6 Ir. Rep. 137. Eq. Rep. 137. (J) Jbr(;v.iJyan,4Ir.Cli.Rcp.342. a breach of trust. 332 CUSTODY OF THE TRUST PROPERTY. [CH. Xni. S. 2. SECTION II. Trustee must take same care of the trust pro- perty as of his own. Robbery of the trust property. Insurance. Trustee should place trust money m a responsible bank, but not to his own credit. OF THE SAFE CT7ST0DT OF THE CHATTEL. Lord Northington once observed, " No man can require or with reason expect that a trustee should manage another's property with the same care and discretion that he would his own " (a) ; but the maxim has never failed, as often as men- tioned, to incur strong marks of disapprobation. A trustee is called upon to exert precisely the same care and solicitude in behalf of his cestui que trust as he would do for himself; but greater measure than this a court of equity wiU not exact (6). A trustee, in an old case, had kept 40Z. of trust money in his house, and 200Z. belonging to himself, and was robbed of both by his servant, and was held not to be responsible (c). An administratrix had left goods with her solicitor to be delivered to the party entitled. The articles were stolen, and the Court said it was the same as if they had been in the custody of the administratrix, and it was too hard to charge her with the loss {d). An executor has been held not to be answerable for having omitted to insure leasehold premises against fire (e). If the subject of the trust be money, it may safely and most properly be deposited for temporary purposes in some respon- sible banking-house (/); but the trustee will make himself (a) Harden v. Parsons, 1 Ed. 148. (J) Morley v. Morley, 2 Ch. Ca. 2, per Lord Nottingham ; Jones v. Lewis, 2 Ves. m, per Lord Hard- wioke ; Massey v. Banner, 1 Jao. & Walk. 247, per Lord Eldon ; At- torney-General V. Dixie, 13 Ves. 634, per eimdem. (c) Morley v. Morley, uhi supra; and see Jones v. Lewis, 2 Ves. 241 ; Ex parte Belchier, Amb. 220 ; Ex parte Griffin, 2 Gl. & J. 114. [d) Jones v. Lewis, 2 Ves. 240. (c) Bailey v. Gould, 4 Y. & C. 221 ; and see Ex parte Andrews, 2 Rose, 410 ; Bobson v. Land, 8 Hare, 216. (/) Bowth V. Sowell, 3 Ves. 565 ; Jones V. Lewis, 2 Ves. 241, per Lord Hardwioke; Adams v. Claxton, 6 Ves. 226 ; Ex parte Belchier, Amb. 219, per Lord Hardwioke; Attor- ney-General V. Bandall, 21 Vin. Ab. 534, per Lord Talbot ; Massey V. Banner, 1 Jao. & Walk. Ui, per Lord Eldon ; Horsley v. Chaloner, 2 Ves. 85, per Sir J. Strange ; France V. Woods, Taml. 172; Lord Dor- chester V. Earl of Effingham, id. 279 ; Freme v. Woods, Taml. 172. CH. Xin. S. 2.] CUSTODY OF THE TRUST PEOPEBTT. 333 liable for the failure of the bank, if he pay the money to his own credit and not to the separate account of the trust estate (a). Thus a receiver transmitted two bills to a banker to be Wren v. Kirton. placed to his account, and in each bill the receiver's own money was mixed up with the trust-fund. The bank failed, and Lord Eldon decreed the receiver to make good the loss. " A receiver," he said, " cannot be allowed to say he is trans- mitting the money of the estate as such, if he permit it to stand with his own money to his own credit ; for, in that case, if any intermediate failure of the receiver happen, his estate gets the benefit of the remittance, and the trust estate none. Then, on the failure of the barik, I will not permit him to say he shall not suffer the loss, but the trust estate shall suffer it " (b). And in the more recent case of Massey v. Banner (c), where Massey v. A. and B. were trustees for creditors, and C. acted for them in collecting the debtor's estate, and paid the assets into a bank to his own account, and, on the failure of the bank, A. and B. filed a bill against C. to compel him to account for the loss, Lord Eldon said, " C. is liable in the same manner as other persons acting as trustees, executors, receivers, or assignees ; and the principle applying to all these classes of persons is properly expressed in these terms — That the Court does not expect them to take mo7-e care of the property entrusted to them than they would do of their own. If a receiver of the Court undertake to receive rents in the country he cannot send them in cash, and if he collect them in paper, taking the same care with respect to it as a reasonable attention to his own affairs would dictate to him if it was for himself, if he remits what he has collected by the best bills he can find by the same means that would be reasonable if it were on his own account, then I should say that it would be very difficult to charge him, for he has done the best he could for his employers. But I cannot persuade myself that the principle is satisfied, unless the result is as beneficial to them as it [a) Wren Y. Kirton, IIYbs. 317; (c) 1 Jac. & "Walk. 241. See Fletcher Y.Walker, SMa.i.13; Mae- observations of L. J. K. Bruce and donnell v. Harding, 7 Sim. 178; L. J. Turner on this case; Pennell Matthews v. Brise, 6 Beav. 239. v. Deffell, 4 De Gex, Mae. & Gor. (6) Wren v. Kirton, 11 Vesey, 380. pp. 386, 392, 334 CUSTODY OF THE TRUST PBOPEETr. [CH. Xm. S. 3: would be to himself. If an assignee pays money into his banker's hands as money belonging to the estate, and the banker fails, the assignee is undoubtedly clear from the loss • but if instead of distinguishing it, he pays it all into his own account, then it is his account there ; there is- nothing like a declaration of trust of it, and it is familiar to consider him as haying it in the banker's hands for himself, making him liable for it, and charging him with interest at the rate (since the late statute) of 20Z. per cent. This is because, if he had become bankrupt, it would have gone to the credit of his estate ; for it is clear in that case, that, if the bankers had any account with him by way of set-off, that set-off would affect equally his money and the money Of the estate paid in to his account; they have no notice that it belongs to the estate : the account is between him and them. The same has been the case with executors and trustees ; and I apprehend, that, for the safety of mankind, the principle must be, that, if you desire to deal for me as you would for yourself, it must be so that the dealing for me, if unfortunate, shall not be more so to me than it would have been to you, if it had been for yourself. In the case of the assignee, if he fails, his estate has all the benefit of the money: the parties for whom he acts have none : he does not therefore deal for them as he would for himself." His Lordship therefore held that C. was responsible. Trustee mast not And a trustee must not lodge the money in such a manner fund out of his ^^ *° -P"* ^* °"* °f ^^^ "*"'* control, though it be not under the own control. control of another. White, a receiver appointed by the court, in order to induce Adams and Burlton to become his sureties, entered into an arrangement with them, that the rents, as received, should be deposited in a bank in the joint names of Salway v. the Sureties, and that all drafts should be in the handwriting a nay. ^^ Anderson, who was Adams's partner, and should be signed by White. An account was opened upon this footing: the bank failed; and a considerable loss was incurred. Sir J. Leach held that the receiver and his sureties were not to be answerable (a) ; but his Honour's decision was reversed on (a) Salway v. Salway, 4 Kuss. 60. CH. Xni. S. 2.] CUSTODY OF THE TRUST PROPERTY. 335 appeal by the Lord Chancellor (a) ; and this reversal was after- wards affirmed on the final appeal, by the House of Lords (b). On the latter occasion Lord Brougham observed, " It is clearly the duty of a receiver, as an ofiicer of the Court, to keep in his own hands the control over the fund. It is admitted, that, if he had parted altogether with that control, he would have been answerable, whether the loss actually incurred could be traced to and connected with that severance and that want of power over the fund or not. Does it make any difference, that, instead of entirely parting with the control, he gave a veto on all his dealings with it to a mere stranger ? Anderson was wholly unknown to the Court, which reposed its confidence in its own officer, and looked only to him : the acts of a stranger it had no power over, and could in no respect control. Con- sider the position of the fund, had a sudden run come upon the bank. White, on hearing it, would be bound, in the dis- charge of his official duty, instantly to draw the whole balance, and put it in a place of greater safety ; but the arrangement which he had made prevented him from doing this without the concurrence of Anderson, who lived at some distance, and who, even had he lived in the same town, might have been absent, or unable from illness to act, and who, had he been both on the spot and able to write the cheques, might have been unwilling and refused. He might have been disposed to court the favour of his bankers at the risk of the estate ; he might have drawn all his own money out, and recompensed the banker by leaving that of the receivership, and this without incurring the least risk himself; for he was not surety, nor in any way bound either to the Court or the receiver. Let us ask ourselves how any individual would like, during a run upon his banker, to have his hand paralysed by such a veto as was given to Anderson ? What anxiety would he feel during the delay that must elapse in the interval between the run beginning and the messenger returning with the cheques filled up for his signature ! Is a receiver entitled to place the custody or administration of the fund in a situation which, in the case of any individual dealing with his own estate, would (o) 2 E. & M. 215. (6) Id. 220. 336 CUSTODY OF THE TRUST PROPERTY. [CH. XIH. S. 9. Whether execu- tors may place money in bank payable to either of the co-execu- tors. Trustee respon- sible for bank if he ought not to have placed the money there. be the source of such anxiety ? No person hi his own case would make such an engagement without extreme necessity or ample equivalent ; and the least that can be required by the Court of its officers is that degree of diligence and care which any man would use in the conduct of his own affairs " {a). In a case before Sir A. Hart, in Ireland, an executor was held to be justified, though he had placed the assets in a banli: so as to be under the control of the co-executor. The money was entered in the books to the joint account of the co-execu- tors, but the bank was in the habit of answering the cheques of either co-executor singly. " It is the custom of bankers,'' said Lord Chancellor Hart, " that what is deposited by one to the joint account may be withdrawn by the cheque of the other ; and for convenience of business, it is necessary this risk should be incurred, for it would be very hard to transact business if every cheque should be signed by all the executors. The mode in which the account has been kept, brings it, in effect, I admit, almost to the same thing as paying it directly to the co-executor ; but each executor has full dominion and may deal with the general fund as he thinks proper, without making his co-executor chargeable for a devastavit" (b). How- ever, his Lordship admitted that " if there were any fraud or collusion, wilful default, or gross neglect, or if the executor had any reason to put a stop to the mismanagement by the co-executor, the case would be altered "(c). But even with this qualification the doctrine is so contrary to the principle of other cases that no trustee or executor could be advised to rely upon it in practice (d). The trustee will also be answerable for the failure of the bank, if he deposited the money there for safe custody when it was his clear duty to have invested it in the funds for im- provement (e), or if when the purposes of the trust do not require a balance to be kept in hand he lend a sum to the bank at interest upon no other security than their notes, for (a) MS. (6) Kilbee v. Sneyd, 2 Moll. 186 ; see 200, 213. (c) Id. 203, 213. (d) See Clough v. Dixon, 8 Sim. 594 ; 3 M. & Cr. 490. (e) Moyle v. Moyle, 2 E. & M. 710; Johnston v. Newton, 17 Jur. 826. •CH. XIII. S. 3.] INVESTMENT. 337 this in effect cannot be distinguished from an ordinary loan on personal security, which the Court never sanctions (a). The trustee in the custody of the trust property, wherever Mixing the trust it may be placed, must always be careful not to amalgamate it private property. with his own, for, if he do, the cestui que trust will be held entitled to every portion of the blended property which the trustee cannot prove to be his own {b). SECTION III. OP INVESTMENT. Where the trust-money cannot be applied, either imme- of investment of diately or by a short day, to the purposes of the trust, it is ^^^ t™st-money. the duty of the trustee to make the fund productive to the cestui que trust by the investment of it on some proper security. It was the opinion of Lord Northington that a trustee might Trustee may not be justified in lending on personal credit. " The true touch- g"™! secunty. stone," he said, " by which such cases are to be tried is, whether the trustee has been guilty of a breach of trust or not. If he has been guilty of a gross negligence, it is as bad in its conse- quences as a fraud, and is a breach of trust. The lending money on a note is not a breach of trust, without other circum- stances Grasses negligentice" (c). But the case from which this dictum is taken has been called by Lord Eldon, from the extraordinary doctrines contained in it, " a curious document in the history of trusts " {d) ; and certainly it is now indispu- tably settled that a trustee cannot lend on personal security (e). (a) Darke v. Martyn, 1 Beav. Holmes v. Bring, 2 Cox, 1 ; Terry 525. v. Terry, Pr. Ch. 273; Ryder v. (6) Lupton V. White, 15 Ves. 432 ; Bicherston, cited Harden v. Par- and Panton v. Panton, cited ib. sons, 1 Ed. 149, note (a), and more 440 ; Chedworth v. Edwards, 8 Ves. fully Walker v. Symonds, 3 Sw. 46 ; White v. Lincoln, 8 Ves. 363 ; 80, note (a) ; Vigrase v. Binfield, Fellowes v. Mitchell, \ P. W. 83. 3- Mad. 62 ; Walker v. Symonds, 3 , (c) Harden v. Parsons, 1 Ed. 148. Sw. 63 ; Anon, case, Lofft. 492 ; {d) Walker v. Symonds, 3 Sw. 62. KeUe v. Thompson, 3 B. C. C. . {e) Adyey.Feuilleteau,\Gox,'2,i; 112; Wilkes v. Steward, Coo^^, (> ; Darke v. Martyn, 1 Beav. 525 ; Clough v. Bond, 3 M. & Cr. 496, 338 INVESTMENT. [CH. xin. s. 3. Unless he be expressly em" powered. Where em- powered to lend Lord Hardwicke said, " a promissory note is evidence of a debt, but no security for it " {a) ; and Baron Hotham observed, that " lending on personal credit for the purpose of gaining a larger interest was a species of gaming " (b) ; and Lord Kenyon said, that " no rule was better established than that a trustee could not lend on mere personal security, and it ought to be rung in the ears of every one who acted in the character of trustee " (c). And it will not alter the case that the money is lent on the joint security of several obligors {d), or to a person to whom the testator himself had been in the habit of advancing money on personal security (e). Of course a trustee may lend on personal security, where he is expressly empowered to do so by the instrument creating the trust (/). But no such authority is communicated by a direction to place out the money at interest at the trustee's dis- cretion (g), or on such good security as the trustee can procure, and may think safe (h). And if joint trustees be empowered to lend on personal security, they may not lend to one of them- selves, for the settlor must be taken to rely upon the united vigilance of all the trustees with respect to the solvency of the borrower (i). And when the Court has assumed the adminis- tration of the estate by the institution of a suit, it will not direct an investment on personal security, though there be a power to lay out on either personal or government security, but will order all future investments to be made on govern- ment security (k). And where the trustees of a sum of money for A. for hfe, per Cur. ; and see Poeock v. JRed- dington, 5 Ves. 799 ; Collis v. Collis, 2 Sim. 365 ; Blackwood v. Sorrowes, 2 Conn. & Laws. 477 ; Watts v. Gir- dlestone, 6 Beav. 188. {a) Ryder v. Bickerston, cited Walker-^. Symonds, 3 Sw. 81, note(a). (6) Adye v. Feuilleteau, 1 Cox, 25. (c) Holmes v. Bring, 2 Cox, 1. {d) s. a (e) Styles v. Guy, 1 Mao. & Gor. 423. (/) See Forbes y.Boss, 2 B. C. C. 430; S. C, 2Cox, 113. {ff) See Poeock v. Beddington, 6 Ves. 794. (h) Wilkes v. Steward, Coop. 6 ; Styles V. Guy, 1 Mao. & Gor. 422 ; Attorney-General v. Sigham, 2 Y. & C. Ch. Ca. 634 ; and see Mills v. Osborne, 7 Sim. 30; Westover v. Chapman, 1 Coll. 177. (i) V. Walker, 5 Kuss. 7 ; and see Stickney v. Sewell, 1 M. & C. 14 ; Westover v. Chapman, 1 Coll. 177. {k) Holmes v. Moore, 2 Moll. 328. CH. Xni. S. 3.] INVESTMENT. 339 remainder for her children, were authorised by the settlement on personal se- to lend the trust fund upon real or personal security as should ji^JccommoIate be thought good and sufficient, and the trustees lent it to a * person. person in trade whom A. had married, and the money was lost, they were made responsible for the amount. Sir William Grant said, " The authority did not extend to an accom- modation : it was evident the trustees had, upon the marriage, been induced to accommodate the husband with the sum, which they had no power to do " (a). In one case, where trustees were empowered to lend money to the husband on his personal security, to be used by him in business, and the trustees advanced 600Z. to the husband, and he became insolvent, and the trustees received a dividend of 701., and they afterwards lent this sum to the husband on his recommencing business upon the security of his bond, and the money was lost, it was held that the trustees were not to be punished for the dis- cretion they had exercised, for it did not follow, that, if a person once became insolvent, he was never again to be trusted (b). In another case, however, where a trustee was required at the request of the wife to advance money to the husband upon his bond, and the husband took the benefit of the Insolvent Act, and the wife requested the trustee to advance SOL to the husband upon his bond, and the trustee refusing, the wife filed her bill to have the trustee removed, the Court said, " that so total a change had taken place in the circumstances and position of the husband that the clause in question became no longer applicable to him and ceased to have any effect, and the trustee had done his duty when he refused to lend the money " (c). No applications from cestuis que trust to their trustees are Tenant for life SO frequent as for a more productive investment tor the benetit faToured. of the tenant for life. In these cases the trustees must remember that the power was not given them for the purpose of favouring one party more than another, and that if they lend themselves improperly to the views of the tenant for Hfe (a) LangstoHY. OUwant,Coop.Z3. (c) Boss v. Godsall, 1 T. & C. Ch. (6) SurtY.Inffram, July 15, 1835, Ca. 617. Compare cases, p. 349, V.C.E. MSS. «"»/'•* note (e). z 2 340 INVESTMENT. [CH. xm. s. 3, Trustees bound to protect the remainderman. Consent. Investment in trade. at the expense of the remaindermen, they will be held per- sonally responsible (a). And in particular where there is the ordinary power of varying securities with the consent of the tenant for life, the trustees must consider the intention to be that as the control is given to the tenant for life for his protection, so the trustees have a discretion reposed in them for the protection of the remaindermen. Thus the power would not authorise a con- version of the trust fund from Three per cent. ConsoUdated Bank Annuities into Long Annuities, for though the tenant for life would improve his income the capital by the terminable nature of the security would be gradually deteriorating (6) ; nor even from Three per cent. Consolidated Bank Annuities into Three and a Quarter per cent. Bank Annuities, or any perma- nent annuities of a higher rate, for the latter annuities being more likely to be redeemed, and therefore less valuable, the gain, however small, of the tenant for life, would be at the expense of the remaindermen (c). All the conditions annexed to the power must be strictly observed, as if the authority be to lend to the husband with the consent of the wife, the trustees cannot make the advance on their own discretion, and take the consent of the wife at a subsequent period {d). A power " to place out at interest, or other way of improve- ment," will not authorise an investment of the money in any trading concern (e); or in fact any other investment than a government or real security (/), but otherwise it seems if the direction be not to " invest " but to " employ " the money, which has been thought to savour of a trading concern (g). («) Maby v. Ridehalgh, 1 Jur. N. S. 363 ; and see iStuart v. Stuart, 3 Beav. 430. (6) Bate v. Sooper, 5 De Gex, Mao. & Got. 338. (c) In reference to the New Three per cent. Annuities (formerly Three and a Quarter per cent.), it is to be observed that, though specially exempt from further reduction until 1874, which the Three per cent. Consols are not, the latter are pro- tected by a legislative provision requiring a year's notice to be given before redemption. { In laying out trust-monies, trustees would do well not to em- ploy the same solicitor who acts for the borrower. Besides the inconveniences that arise from the doctrine of imphed notice, there is in this case such a conflict of duties on the part of the solicitor, that he cannot adequately represent the interests of both lender and borrower (6). SECTION IV. General laches. LIABIIITT OF TSTTSTEES TO PAYMENT 01' IirTEEEST, If the trustee be guUtj of any unreasonable delay in in- vesting the fund or transferring it to the hand destined to receive it, he will be answerable to the cestui que trust for interest during the period of his laches, and a trustee may be decreed to pay interest even though it be not prayed by the bill (c), and wUl be liable to pay personally the costs of the suit {d). An executor should discharge the testator's liabilities as soon as he has collected assets sufficient for the purpose, and therefore if he keep money in his hands idle, when there is an outstanding debt upon which interest is running, he will himself be charged with interest on a sum equal in amount to the debt, and if the outstanding debt carry interest at 5 per cent., the executor will be charged with interest at the same rate (e). After payment of After payment of debts and legacies, if the executor or cies, mustaccount administrator be guilty of laches in accounting for the surplus for surplus. Executor must pay testator's debts as soon aa he has assets. (a) AUeyne v. JDarcy, 4 Ir. Ch. Be. 199, see 204, 208; Fyhr v. Fyler, 3 Beav. 550. (J) See Waring v. Waring, 3 Ir. Ch. Ee. 331. (c) Woodhead v. Marriott, C. P. Coop. Cases, 1837-38, 62; Turner V. Turner, IJ. & "W. 39, {d) Tickner v. Smith, 3 Sm. & Gif. 42. (e) Dornford v. Dornford, as cited in Tehbs v. Carpenter, 1 Mad. 301 ; Sail v. Ballet, 1 Cox, 134 ; Turner v. Turner, 1 .J. & W. 39. CH. Xin. S. 4.] TO PAYMENT OF INTEREST. 369 estate to the residuary legatee (a), or next of kiii(&), he will be charged by the Court with interest for the balance impro- perly retained, whether the prayer of the bill extend to it or not (c). And, on the same principle, if the assignees of a bankrupt neglect to pay a dividend to the creditors (d), or the receiver of an estate do not move the Court in proper time to have the rents invested (e), they will be ordered to account for the money with interest from the time the breach of duty com- menced. And an executor or other person cannot excuse himself by saying that he made no actual use of the money, but lodged it at his banker's (/), and to a separate account (g), for it was a breach of trust to retain the money : he was bound to make it productive to the cestui que trust. But, where an executor conceived he was himself entitled to the residue, and the Court considered his claim to be just in itself, but was obliged from a particular circumstance in the case to give judgment against him, it was thought too severe to put him in the situation of one who had neglected his duty, and the demand against him for interest was conse- quently disallowed (h) . Assignees must not neglect to pay dividends. No excuse that the trustee or executor did not use the money. Delay may tie explained ty the mistake of the trustee or executor. (a) Forbes v. Hoss, 2 Cox, 113; Seers v. Hind, 1 Ves. jun. 294 ; YoungeY. Combe, 4 Ves. 101 ; Long- more Y. Broom, 7 Ves. 124; Roche V. Sart, 11 Ves. 58 ; Fiety v. Stace, 4 Ves. 620 ; Ashhurnham v. Thomp- son, 13 Ves. 402 ; Raphael v. Boehm 11 Ves. 92 ; 8. C. reheard, 13 Ves, 407 ; S. C. spoken to, 13 Ves. 590 Dornford v. Dornford, 12 Ves. 127 Franklin v. Frith, 3 B. C. C. 433 LittlehalesY. Gascoyne, 3 B. C. C. 73 Newton v. Bennet, 1 B. C. C. 359 Lincoln v.. Allen, 4 B. P. C. 553 Crackelt v. Bethune, 1 J. & W. 586 Tebbs Y. Carpenter, 1 Mad. 290. (6) Hall Y. HalleU, 1 Cox, 134 ; Perkins v. Baynton, 1 B. C. C. 375 ; Staehpoole v. Stackpoole, 4 Dow, 209, see 224 ; Seathcote v. Hulme, IJ. & W. 122 ; Holgate v. Haworth, 17 Beav. 259. (c) Hollingsworth v. Shakeshaft, 14 Beav. 492. {d) Treves v. Townshend, 1 B. C. C. 384 ; In re Hilliard, 1 Ves. jun. 89. (e) Foster v. Foster, 2 B. C. C. 616 ; Hicks y. Hicks, 3 Atk. 274 ; Hanhey v. Garret, 1 Ves. jun. 236. (_/) Younge v. Combe, 4 Ves. 101 ; Franklin v. Frith, 3 B. C. C. 433 ; Treves v. Townshend, 1 B. C. C. 384; In re Hilliard, 1 Ves. jun. 89 ; Daw- son Y. Massey, 1 B. & B. 230 ; Browne v. Soiithouse, 3 B. C. C. 107 ; and see Roche v. Hart, 11 Ves. 60. [g) Ashhurnham v. Thompson, 13 Ves. 402. (A) Bruere v. Pemherton, 12 Ves. 386. But see Sutton v. Sharp, 1 Russ. 146 ; and Turner v. Maule, 3 DeG. &Sm. 497. 360 XIABILITT OF TBUSTEES [CH. xni. S. 4- Formerly the executor^might hare used the At least where he was solvent. And where the assets used were not specifically hequeathed. Kule now general that executor must account for all profits. Formerly, indeed, it was held by the Court, that an executor might employ the assets in his trade, or lend them upon security, and he should not be called upon to account for the profits or interest (a). And such was the case even where money which had been lent by the testator on good security was called in by the executor for the express purpose of being re-lent by himself. The executor, it was argued, was not bound to lend the assets, and if he did so, it was at his peril, and he was answerable for losses, and, if accountable for any loss, he was surely entitled to any gains (b). But Lord North overruled the doctrine in spite of the alleged practice of the Court for the last twenty years, and the authority of above forty precedents. As to the argument, that, if the money should be lost, the executor would be personally responsible, his Lordship said, it was very well known that a man might insure his money at the rate of 1 per cent. (c). A distinction was afterwards taken between a solvent and an insolvent executor ; that the former, as he might suffer a loss, should take the gain, but, as an executor who was insolvent at the time of the loan could incur no risk of a loss personally, he should not be allowed to take to himself any benefit (d). And Lord Hardwicke drew another distinction ; that if an executor liad ^placed out assets that were specifically bequeathed, he should be made to account for the interest, but the Master was never directed to charge interest upon an executor who made use of general assets, come to his hands, in the way of his trade (e). But all these refinements have long since been swept away (/) ; and the rule is now universal, that, whether the executor was solvent or insolvent, whether the money was part of (a) Grosvenor v. Cartwright, 2 Ch. Ca, 21 ; Linch v. Cappy, 2 Ch. Ca. 36 ; and see Brown v. Litton, X P. "W. 140. (6) See RatcUff v. Graves, 2 Ch. Ca. 152. (c) RatoKffe v. Graves, 1 Vern. 196; S.C. 2Ch. Ca. 152. {d) Bromfleld v. Wytherley, Pr. Ch. 505; Adams v. Gale, 2 Atk. 106. (e) Chad V. Gibson, 2 Atk. 603. {/) As to the former distinction, see Newton v. Bennet, 1 B. C. C. 361; Adye v. Feuilleteau, 1 Cox, 25; and as to the latter, see Newton v. Bennet, 1 B. C. C. 361. CH. Xin. S. 4.] TO PAYMENT OF INTEREST. 361 the general assets or specifically bequeathed, whetlier lent upon security or employed in the way of trade, the executor shall account for the utmost actual profits to the testator's estate {a). And where the money has been employed in trade, the cestui Trustee using que trust has the option of taking the actual profits or of trade, must ' charging the executor with interest (6). And an executor who ^Xfite^^Vr* is a trader is considered to employ the money in trade, if he cent, interest, or . 1 • 1 1 T 1 ■ • • !• the actual profits. lodge it at his banker s, and place it m his own name, for a merchant must generally keep a balance at his banker's, and this answers the purpose of his credit as much as if the money were his own (c). The' rate of interest with which an executor is usually Executor charged charged is 4 per cent.(<^); but the rule holds only where it ^toest^on'riin*^ does not appear that the executor, has made greater interest, less he made more. for the Court invariably compels the executor to account for every farthing he has actually received (e). It is not easy to define the circumstances under which the Under what Court win charge executors and trustees with more than 4 per tmst^ will be cent, interest, or with compound interest, and the principles by charged with •*■ ' X i ./ compound which the Court is regulated in so doing are involved in much interest. uncertainty. In a late case, the rule was thus laid down by the present Master of the Rolls : " If an executor has retained ■{a] Tebbs v. Carpenter, 1 Mad. v. Carpenter, 1 Mad. 306 ; In re 304, per Sir T. Plumer ; £ee v. Lee, HilUard, 1 Ves. jun. 90 ; Browne v. 2 Vern. 548; Adyey. Feuilleteau, 1 Southouse, 3 B. C. C. 107; Cox, 24; Piety Y. Stace, 4 Yes. 622, v. Ward, 11 Ves. 582; Perkins v. per Lord Alvanley. Saynton, 1 B. C. C. 875 ; Treves v. (S) Heatheote v. Sulme, 1 J. & Townshend, 1 B. C. C. 386; Sicks "W. 122 ; Anon, case, 2 Ves. 630, per v. Hicks, 3 Atk. 274 ; Younge v. Sir T. Clarke ; Docker v. Somes, 2 Combe, 4 Ves. 101 ; Roche v. Mart, M. & K. 655; Ex parte Watson, 2 11 Ves. 58; Hankey v. Garret, 1 V. & B. 414 ; Brown v. Sansome, 1 Ves. jun. 236 ; but see Bird v. M'Clel. & Y. 427 ; Robinson v. Ro- Lackey, 2 Vern.' 744, 4th point ; linson, 1 De Gex, Mae. & Gor. 257. Carmichael v. Wilson, 3 Moll. 79 ; (e) Treves Y. Townshend, ubi su- Attorney-General v. Alford, 4 De pra ; Moons v. De Bernales, 1 Kuss. Gex, Mae. & Gor. 843. 301; Jm re BVKart^, 1 Ves, jun. 90 ; (e) Forbes v. Ross, 2 Cox, 116, Sutton V. Sharp, 1 Euss. 146 ; per Lord Thurlow ; In re Hilliard, Rocke V. Hart, 11 Ves. 61 ; but 1 Ves. jun. 90, per eundem ; Han- sea Browne v. Southouse, 3 B. C. C. key v. Garret, 1 Ves. jun. 239, per 107. eundem : Brown v. Litton, 10 Mod. ((^) See -ForSesv. iJoss, 2 Cox, 116; 21,^e»'LordHarcourt; Hall y. Hal- Hall Y.Hallet, 1 Cox, 138; Tebbs let, 1 Cox, 138, jjer Lord Thurlow. 362 LIABILITY OF TEUSTEES ' [CH. Xjn. S. 4. balances in his hands, which he ought to have invested, the " Court will charge him with simple interest, at 4 per cent. If, in addition to such retention, he has committed a direct breach of trust, or if the fund had been taken by him from a proper state of investment, in which it was producing 5 per cent., he wiU be charged with interest after the rate of 5 per cent, per annum. If, in addition to this, he has employed the money so obtained by him in trade or speculation, for his own benefit or advan- tage, he will be charged either with the profits actually obtained from the uses of the money, or with interest at 5 per cent, per annum, and also with yearly rests, that is, with compound interest" (a). Trustee charged The previous dicta and decisions undoubtedly seem to esta-i cent, where gross blish, in accordance with the views just quoted, that an nusconduot. executor will be charged with interest at 6 per cent, where he is guilty, not merely of negligence, but of actual corruption or misfeasance, amounting to a wUful breach of trust (6). But in a recent case before the present I/ord Chancellor, his lordship expressed his disapprobation of charging the executor, with a higher rate of interest by way of penalty, and stated his own opinion as follows : " What the Court ought to do, I think, is to charge him only with the interest which he has received, or which it is justly entitled to say he ought to have received, or which it is so fairly to be presumed that he did receive that he is estopped from saying that he did not receive' it. I do not think there is any other intelligible ground for charging an executor with more interest than he has made, than one of those I have mentioned. Misconduct does not seem to me to warrant the conclusion that the executor did in point of fact receive, or is estopped from saying that he did not receive, the interest, or that he is to be charged with anything he did not receive, if it is not misconduct con- tributing to that particular result " (c). The particular case {a) Jo«es V. i^oaoZZ, 15 Beav. 392, 1 J. & W. 588; Backers. Somes, (6) Tebhs V. Carpenter, 1 Mad. 2M. &K. 670; Munch y. Cockerell, 306, per Sir T. Plumer ; Bick v, 5^M. & Or. 220 ; but see Meader v. Motly, 2 M. & K. 312 ; Mousley v. M'Cready, 1 Moll. 119. Carr, 4 Beav. 53, per Lord Lang- (c) Attorney-General v. Alford, dale ; and see Crackelt v. Betlmne, 4 De Grex, Mao. & Gror. 851, 852. CH. Xni. S. 4.] TO PAYMENT OP INTEBEST. 363 before his lordship was taerely one of omission to inmst, under circumstances of gross negligence; and it is conceived that,- although his observations cast a certain degree of doubt over the class of authorities last referred to, they cannot be con- sidered as overruled. Wlaether, where the money has been employed in trade. Whether simple simple or compound interest shall, as a general rule, be charged, terest chargeable is a point upon which the decisions are at conflict, the older ^^a'^tre^ecutor pointing invariably to simple interest as the proper measure °^ trustee in „,.,.,. trade. of liability, but some of the more recent to compound, interest. Respecting the rate of interest there has been no conflict. It has been almost invariably held to be 5 per cent, {a), the Court presuming every business to yield a profit to that amount; though Lord Thurlow, in one case, offered an inquiry whether, under the circumstances, such a rate of interest might not be too high (6) ; and in axiother, where an executor proved exte- nuating circumstances, 4 per cent, only was charged (c). The first case in which a trustee appears to have been charged with compound interest, by reason only of his having used ttust money in trade, appears to have been that of Walker v. Wood- ward (d). There Lord Gifford, the trustee acknowledging that he had made great profits, though he could not furnish the particulars, and the cestui que trust waiving the investigation of the actual gains, directed 5 per cent, interest to be charged with annual rests. Subsequently the late Vice- Chancellor of England refused to charge a trustee of a charity estate, who had used the trust monies in carrying on his trade, with compound interest (e); but in a later case. Sir John Leach charged an executor with compound interest under similar circumstances (/), and in the two latest reported decisions on the subject, the present Master of the Rolls, in accordance (o) Treves v. Towmhend, 1 B. C. Rohinson, 1 De Gex, Mac & Gor. 257. C. 384; Mocke v. Hart, 11 Ves. 61, (6) Treves v. Townshend, 1 B. G. per Sir W. Grant ; Heathcote v. C. 384. Sed qucere. Hulme, 1 J. & "W. 122, see 134 ; (e) MellandY. Gray, 2 CoH. 295. Attorney- General v. Solly, 2 Sim. {d) 1 Euss. 107. 618 ; Mousley v. Carr, 4 Beav. 53, (e) Attorney- General v. Solly, 2 per Lord Langdale; Westover v. Simons, 518. ^ Chapman, 1 €6)1. Ill ; Williams r. [f) HeighingtonY. Grant,5M..& Powell, 16 Beav. 461 ; Rohinson v. Cr. 258 ; 2 Phil. 600. 364 LIABILITT OF TEUSTEES [CH. xm. S. 4. Trustee neglect- ing a direction to accumulate, wiU be charged with compound inte- rest. Executor not charged with interest during first year from testator's death. with the rule laid down by him (as before stated), directed an account with rests (a). Where a testator expressly directs an accvmulation to be made, and the executor disregards the injunction, it seems compound interest wUl be decreed (&). " Where there is an express trust," said Lord Eldon, "to make improvement of the money, if he wUl not honestly endeavour to improve it, there is nothing wrong in considering him, as to the principal, to have lent the money to himself, upon the same terms upon which he could have lent it to others, and as often as he ought to have lent it if it be principal, and as often as he ought to have received it, and lent it to others, if the demand be interest, and interest upon interest " (c). And Lord Erskine said he concurred in the same principle, viz. "that a trustee directed to do an act from which the cestui que trust would derive a particular advantage, and not per- forming that trust, shall be charged precisely in the same manner as if he had performed it " (d). An executor wUl not in general be charged with interest but from the end of a year from the time of the testator's decease. "The question, " said Lord Thurlow, "whether an executor shall be charged with interest on the assets retained in his hands, turns upon this, viz. whether the fund has been so kept for any other purpose than that of discharging the growing claims upon it. It frequently may be necessary for an executor to keep large sums in his hands, especially in the course of the first year after the decease of the testator, in which case such necessity is so fully acknowledged, that, according to the constant course of the Court, the fund, until that time, is not considered distributable. After that, if the Court observes that an executor keeps money in his bands without any apparent reason, but merely for the purpose of using it, then it becomes negligence and a breach of trust, the consequence of which is that the Court will charge the (o) Jones Y Foxall. 15 Beav. 388 ; Williams v. Powell, id. 461. (6) Raphael v. Boehm, 11 Ves. 92 ; Ste Ves. 407, 590 ; Dornford v. Dornford, 12 Ves. 127 ; Brown v. Sansome, 1 M'Clel. & Younge, 427 ; Knott v. Cottee, 16 Beav. 77 ; but see Tebbs v. Carpenter, 1 Mad. 290 ; Attorney/- General v. Solly, 2 Sm. 518. (c) Rapliael v. Boehm, 11 Ves. 107. \d) 8. C. 13 Ves. 411. CH. Xin. S. 5.] TO PAYMENT OP INTEREST. 365 executor with interest " (a). " With respect to the general question of charging executors with interest," observed Sir A. Hart, " there are two things to be kept m view, first, we are not to look so closely into the dates of a running account to calculate interest upon it, as to deter respectable men from undertaking the office of executor ; and on the other hand we are not loosely to permit any man, however respectable, to retain the money of others in his hands without making it productive. An executor's duty in this respect is to deal with the trust estate as a provident man would deal with his own, and every provident person makes interest of his money when he has got together a sum which he thinks to be worth while to lay out at interest " (b). It will be observed that, in the preceding cases, trustees Interest on J ,,,, , , -ii- J. money lost that and executors have been decreed to pay interest, m respect never came to only of monies actually come to hand, and improperly retained ; ''™'^- for when a fund has never been received, but has been inex- cusably left outstanding and lost, it seems the Court contents itself with holding the trustees liable for the principal, without enforcing against them the equity, that as the fund, if got in, would have become productive, the trustees ought further to be charged with interest (c). SECTION V. OF THE DISTEIBTJIION OE THE lEITST ETTNI). It is incumbent upon the trustee to satisfy himself beyond ^'^\^^fg^t*^g doubt, before he parts with the possession of the property, who expense of the . , , , . „ . trustee. are the parties legally entitled to it. And the necessity ot seeing that the trust-money comes to the proper hand is obligatory, not only on trustees regularly invested with the character, but to all persons having notice of the equities ; as if A. lend a sum to B., and B. afterwards discovers that it is trust-money, he cannot pay it back to A. unless A. had a power of signing (a) Forbes v. Hoss, 2 Cox, 115. 290 ; and see Lowaon v. Copeland, 2 (6) Flanagan v. Nolan, 1 Moll. 85. B. C. C. 166. (c) Tebhs v. Carpenter, 1 Mad. 366 DISTEIBUTION OF THE TEUST FUND. [CH. XIH. S. 5. a receipt for it (a). If through any misapprehenBion on the part of the trustee the trust-money finds its way into a channel not authorised by the terms of the trust, he will be held per- sonally responsible for the misapplication to the parties who can establish a better claim. " I have no doubt," said Lord Eedesdale upon one occasion, "the executors meant to act fairly and honestly, but they were misadvised ; and the Court must proceed, not upon the improper advice under which an executor may have acted, but upon the acts he has done. If under the best advice he could procure he acts wrong, it is his misfortune ; but public policy requires that he should be the person to suffer" (b). Advice of This must be considered as the general rule ; but under particular circumstances the Court ' might possibly hold an executor justified by having acted upon the advice of counsel. Thus, a testator had executed a promissory note in Switzerland for 600?., but by a counter-note executed shortly after, it was declared that 400Z. only was due upon valuable consideration. A Swiss Court, upon proceedings taken there, had awarded the payment of the whole 600L The executor in England, though by our law under the circumstances of the case but 400^ was demandable, had discharged the whole amount. Lord Alvanley said, " I very much wish, upon the rules of the Court, I could hold the executor fully justified ; but when I consider his neglect in making this payment of his own con- jecture and to the wrong of the cestuis que trust, I must hold that the Master was right in charging him. He certainly acted with a good intention, and imagined himself justified ; but he thought fit to depend upon that which a prudent executor would not have relied on — this strange transaction in Switzerland. If he had taken advice, and been advised by any gentleman of the law in this country that he was bound to make this payment, I would not have held him liable, for I will (o) Sheridan v. Joyce, 7 Ir. Eq. 3 De Gex, Mac. and Gor. 608, the Eep. 115. fact that the trustees had acted (6) Doyle v. Blahe, 2 Sch. & Lef. upon the advice of counsel was not 243 ; and see Ureh v. Walker, 3 M. in evidence, which accounts for the & C. 705, 706; Turner v. Maule, 3 silence of the L. J. upon this point De G. & Sm. 497 ; Peers v. Ceeley, in their judgments. 15 Beave. 209. In Boulton v. Beard CH. Xni. S. 5.J DISTRIBUTION OF THE TETJST FUND. 367 not permit a testator to lay a trap for his executor, by doing a foolish act which may mislead him" (a). Every executor is taken to know the law of this country, Foreign law. but otherwise as to foreign law's. Thus, where a legacy was given to a married woman domiciled in Scotland, and before payment of the legacy the husband died, and the executors of the testator paid the legacy to the wife, and the executors of the husband sued the executors of the testator for the same legacy on the ground that, by the law of Scotland where the wife was domiciled, the chose in action did not survive, as by the law of England, to the wife, but passed to the representa- tives of the husband, it was held, that the executors were not bound to know the law of Scotland, and as express notice of it was not proved against the executors, the prior payment was declared to be valid (6). in cases where there exists a mere shadow of doubt as to Bond of the rights of the parties interested, and it is highly impro- ^" emmty. bable that any adverse claim will, in fact, be ever advanced, the protection of the trustee may be provided for by a sub- stantial bond of indemnity. In general, however, a bond of indemnity is a very unsatisfactory safeguard, for when the danger arises, the obligors are often found insolvent, or their assets have been distributed. And if the bond be to indem- nify against a breach of trust, the Court shows no mercy towards a trustee who admits himself to have wilfully erred by having endeavoured to arm himself against the consequences. A trustee cannot be expected to incur the least risk, and Suit. therefore if all the equities be not perfectly clear, he should decline to act without the sanction of the Court, and he will be allowed all costs and expenses incurred by him in an appli- cation for that purpose (c). And as the trustee is indemnified (a) Vez-v. Smery,5Yes.l'il. As (c) Tulbot-^. Earl of Radnor, Z'K. to the effect of acting under advice & K. 262 ; Goodson v. Ellisson, 3 of counsel in reference to costs, see Euss. 583 ; Curteis v. Candler, 6 Angler v. Stannard, 3 M. & K. 566 ; Mad. 123 ; Knight v. Martin, 1 K. Bevey v. Thornton, 9 Hare, 232 ; & M. 70 ; /S. C. Taml. 237 ; Taylor Field V. Bonoughmore, 1 Dru. & v. Glanville, 3 Mad. 176 ; Angier v. War. 234. Stannard, 3 M. & K. 566. And see (6) Leslie v. Baillie, 2 Y. & C. Camphell v. Home, 1 Y. & C. Ch. Ca. Ch. Ca. 91. 664. 368 DISTEIBUTION OF THE TEUST FUND. [CH. XIII. S. 5^ by the decree of the Court, he will appeal from any decisioii to the Court above at his own risk (a). Frame of the The proceeding may be instituted either by the trustee or the cestui que trust ; but in most cases a suit is sustained rather than originated by the trustee, but whether the trustee be plaintiff or defendant, he should take care before an order is made, that all parties who have any color of title are before the Court,; for if the trustee fail in his duty to point out the proper parties, it might be held that the order of the Court under such circumstances did not indemnify him. Plaintiff held to Where the bill is filed by a cestui que trust and it is found at have no interest. . p i ' the hearing that upon the true construction of the mstrument he has no interest in the fund, yet if the point was so doubtful that the trustees could not safely act without the opinion of the Court, the plaintiff will have his costs, as the declaration of the rights of the parties was necessary to the administration of the trust (&). But the case of a plaintiff filing a bUl on the ground of a contingent interest which fails stands on a different footing (c). Alterations in The Court, according to the old practice, could not have made a mere declaratory order without consequential direc- tions (cZ), and could not have administered the trust in the presence of some only of the parties interested, or as to a part only of the trust estate, or as to the rights of persons entitled under a will without taking preliminary accounts ; but now by 15 & 16 Vic. c. 86, sects. 50 & 51, the Court is autho- rised to make declaratory orders merely, as also to adjudicate on questions in the presence of some only of the persons interested, and as to part only of the trust estate, and without ascertaining the particulars or accounts of the property touching which the questions have arisen. The opinion of the Court may also be now obtained upon a special case under the provisions of Sir Geo. Turner's Act, 13 & 14 Vic. c. 85. (a) Rowland v. Morgan, 13 Jur. 23. (c) Hay v. Bowen, 5 Beav. 610. (6) WestcoU V. Culliford, 3 Hare, (d) See Darnell v. Warren, 2 T. & 274, and oases there cited ; Turner v. C. Ch. Ca. 292 ; Shewell v. Shewell, J^Vfljrapiow, 2 Collyer, 336 ; Boreham 2 Hare, 154; Oaskell y. Holmes, 3 V. Bignall, 8 Hare, 134 ; Lee, v. Hare, 438 ; Say v. Creed, 3 Hare, Belane, 1 De Gex & Sm. 1. 455. CH. Xm. S. 5.] DISTRIBUTION OF THE TEUST FUND. 869 A not unfrequent difficulty with a trustee in the distribution Cestui que trust of a trust-fund is, that the cestui que trust is a feme covert -^hose hiWband ■whose husband has become bankrupt or insolvent, or has f^so"^^^^* ""^ assigned the wife's share of the trust fund, or has deserted the wife. In the case of bankruptcy or insolvency, it is com- petent to the trustee to agree with the assignees, as he might have done with the husband, to divide the fund (a), and the payment of one half to the assignees, and the settlement of the other half on the wife and children, is, in the absence of special circumstances, considered a reasonable apportion- ment (6). As the moiety paid to the assignees represents the whole of the husband's interest, the entirety of the other moiety must be settled on the wife and children, to the utter exclusion of the husband (c), except on failure of issue (d). It would appear that in Lord Eldon's time a rule existed against giving the wife the whole fund (e). More recently in a case (/) in the Exchequer, where the hus- band was an insolvent, Baron Alderson directed a settle- ment of the whole fund. " The situation," he said, " of an insolvent is very different from that of a bankrupt. The wife of an insolvent may be in the workhouse with her children, and yet if the insolvent afterwards acquires property, neither the wife nor the children will be benefitted by it, but the whole goes to the creditors. A bankrupt, on the other hand, after he has obtained his certificate, is a, free man. It appears to me, therefore, that the insolvent's wife and children are entitled to the whole fund, and if I am bound by the practice of the Court to take away any portion of it, I will take away a shilling." At the present day, it is clear that no distinction exists between insolvency and bankruptcy, and that the Court will, wherever the special circumstances warrant the step, settle (a) JRylandY. Smith, 1 M. & C. 56, {d) Carter v. Taggart, 5 De Gex (J) Napier v. Napier, 1 Dru. & & Smale, 49 ; Gent v. Harris, 10 War. 407 ; Vaughan v. Buck, 1 Sim. Hare, 383 ; Bagshaw v. Winter, 5 N.S. 287 ; Bagshaw v. Winter, 5 De Gex & Sm. 468. De Gex & Sm. 468. (e) Dunkleyy. Dunkley, 2 De Gex, (c) Lloyd V. Williams, 1 Mad. Mao. & Gor. 396. 450; Barker v. Lea, 6 Mad. 330; (/) Brett v. Greenwell, 3 Y. & C. Whittem v. Sawyer, 1 Beav. 593. 230. 370 DISTRrBUTION OF THE TEUST FUND. [CH. XIH. S. 5. Equity to a set- tlement as against assignees for value. Reduction into possession of /erne coverts chose in action ty purchase of particular interest. the whole on the wife and children (a). Indeed, in every case arising in reference to the wife's equity to a settlement, the Court exercises a discretion with reference to the particular circumstances, namely, the conduct of the parties (6), the wife's means of livelihood (c), the settlement, if any, previously made upon her (cZ), and the sums before received by the husband in respect of the wife's fortune (e). The trustee should of course endeavour to act as the Court itself would direct. The wife's claim in equity to a settlement prevails even against the assignees of the husband for valuable considera- tion, except where the wife is tenant for life only, when the wife has no equity against the purchaser (/). A case of perplexity to trustees which, until recent decisions had settled the law, arose not unfrequently, was as follows : — A fund was settled on A. for life, and after his decease on B., a married woman, absolutely ; and, in order to reduce the wife's chose in action into possession, the husband proposed to purchase the prior life -interest, and have it assigned to himself or his wife. In such case, it was asked, were the trustees justified in considering the fund as reduced into possession, and payable to the husband, or could the wife claini by survivorship, on the ground that her interest, not- withstanding the assignment of the life-estate, must stiU be regarded in equity as of a reversionary nature, and so iu- capable of reduction into possession ? If the assignment was made to the husband, it might be said, that, as the life-interest was possessed by him in his own right, and the reversionary interest in right of his wife, the two could not coalesce ; and if the assignment was made to the wife so that the husband {a) Gardner v. Marshall, 14 Sim. 575 ; and see JRe Kincaid, 1 Drew. 326; Watson v. Marshall, 17 Beav. 363 ; Dunhley v. Dunhley, 2 De Gex, Mac. & Gor. 390 ; Carter v. Taggart, 6 De Gex & Smale, 49 ; Gent v. Harris, 10 Hare, 383 ; and see Bonner v. Bonner, 17 Beav. 86. (S) Gilchrist v. Cator, 1 De Gex & Sm, 188. (c) Bagshaw v. Winter, 5 De Gex & Sm. 467 ; -Ba; parte Pugh, 1 Drewry, 202. {d) Scott V. Spashett, 3 Mao. & Gor. 599. (e) Gardner v. Marshall, 14 Sim. 575 ; Vaughan v. Buck, 1 Sim. N.S. 287. (/) Tidd V. Lister, 10 Hare, 140. CH. Xm. S. 5.] DISTEIBUTION OF THE TRUST FUND. 371 would have both interests in the same right, it might be said that the feme on the coverture ceasing might disclaim the accession of interest that caused the merger, and that, as the transaction on the face of it was a mere contrivance of the parties to defeat the right of the wife, she might hold the trustees answerable for the consequences. In a case where 10,000Z. stock was settled in this manner, Opinion of the and it was proposed that the husband should purchase the ^^ ^' ^^°^' life-interest for 3000Z., and take an assignment of it to the wife, the opinion of the late Mr. Jacob was as follows : — " I understand that Mrs. B. has a vested interest in the 10,000Z., subject only to the life-interest of A. her father; and if so, A. can assign his life-interest to Mrs. B., and the effect will be to convert her interest into an immediate right to the fund in possession. And when a married woman has such an immediate right, the trustees in general may safely transfer to the husband. But I do 'not think it safe for the trustees to do this of their own authority when the interest was originally reversionary, and has by an assignment of this description been converted into a present interest. If the wife survived her husband, she might contend (and possibly with success) that the assignment was a contrivance to defeat her right by survivorship, and I do not think it quite clear that the Court would hold her bound by it. But after the assignment has been made, Mr. and Mrs. B. may file an amicable bill against A. and the trustees praying a transfer to Mr. B., and I think there would be very little doubt of the Court making the decree for a transfer as prayed, upon Mrs. B. being examined in Court, and consenting, and upon an affidavit of there being no settlement affecting this fund. And I think that the decree of the Court would fuUy indemnify the trustees in making the transfer." A bill was accordingly filed by the husband and wife against A. and the trustees : and on the wife being ex- amined in Court, and waiving a settlement, the trustees were ordered to sell out the stock, pay the costs, and hand over the balance to the husband (a). A similar order was made by the Vice-ChanceUor of Eng- (a) Wilson v. Oldham, V, C. March 5, 1841, MS. B B 2 372 DISTRIBUTION OF THE TEUST FUND. [CH. Xin. S. 5. Authority from the cestui que trust to receive the money. Genuineness of the authority. Payment to an infant. land in several subsequent cases (a), and Lord Cottenham, on being applied to under one of the orders, seems to have assented to the doctrine (&). But in a case before the Master of the Rolls, the question was considered to involve too much difficulty to be disposed of on petition (c), and the case of Whittle V. Henning (d), before Lord Cottenham, has now decided that a reversionary chose in action of the wife cannot by means of this machinery be reduced into possession so as to be made disposable. When the trustee is satisfied as to the parties rightfully entitled, he may pay the money either to the parties them- selves, or to any agent empowered by them to receive it ; and the authority need not be by power of attorney, or by deed, or even in writing. The trustee is safe if he can prove the authority, however communicated. But a trustee would not be acting prudently if he parted with the fund to an agent without some document producible at any moment by which , he could establish the fact of the agency. The trustee must look well to the genuineness of the autho- rity, for if he pay a wrong party it will be at his own peril. Thus where A., possessed of lOOOZ. Million Bank Stock, em- ployed B., a broker, to receive the dividends for her, and B. forged a letter of attorney authorising him to sell the stock, and a sale was effected accordingly, it was decreed by Lord Northington that the company was bound to make good the loss ; for " a trustee," he said, " whether a private person or body corporate, must see to the reality of the authority em- powering him to dispose of the trust-money ; and if the transfer be made without the authority of the owner, the act is a nullity, and in consideration of law and equity the rights remain as before " (e). ' Where an infant cestui que trust represented himself to be (a) Creed v. Ferry, 14 Sim. 592 ; Beanr. Syhes, ib. 693; Lachtony. Adams, ib. 594 ; Sail v. Sugonin, ■ ib. 595 ; Bishop v. Colehrook, 16 Sim. 39. (J) Zachton v. Adams, 14 Sim. 594. (c) Story v. Tonge, 1 Beav. 91 ; 8 Beav. 168. and see JBoa; v. Box, 2 Conn. & Laws, 605. {d) 2 PhiU. 731. (e) Ashby v. Blackwell, 2 Ed. 299 ; Sloman v. Bank of England, 14 Sim. 475 ; and see Harrison v. Pryse, Barn. 324 ; JEx parte Joliffe, ■CH. Xm. S. 5.] DISTErBDTION OF THE TEUST FUND. 873 of age, and induced the trustee to pay him, it was held that as the infant was old enough to commit a fraud, the trustee could not be liable to him over again when he came of age (a). It is the practice of the Court in administration suits, where Payment to a a debt is owing to a firm jointly, to pay the amount to the ^ surviving partners without the concurrence of the represen- tatives of the deceased partners, and " prima facie" a trustee would be justified in doing the same (&). ■ If a trustee or executor has made an overpayment to a Overpayment. cestui que trust or legatee, he has a right to reeotip himself out of any other interest of that cestui que trust or legatee, and the Court will even make an order on such cestvA que trust or legatee, personally to repay the trustee or executor (c), but not after a lapse of thirty years (d). On the final adjustment of the trust accounts it is usual for Release, the trustee, on handing over the balance to the parties enti- tled, to require from them an acknowledgment that all claims and demands have been settled (e). It is reasonable, that when -the trustee parts with the whole fund, and so denudes himself of the means of defence, he should be placed by the party receiving the benefit in the utmost security against future litigation. In practice it is usual to require a release under seal, for an acquittance of this kind may be opened by the cestui que trust on showing fraud, concealment or mistake; hut prima facie it is a simple and valid defence, and throws . on the releasor the onus of displacing it. In strict right, however, a trustee in the absence of special circumstances cannot insist upon a release under seal. Thus, in ChadwicJc v. Heatley (f), a residuary legatee who had become entitled in possession called for the transfer of a sum of stock representing the residue. The trustee insisted on a general release in respect of the testator's estate, and the residuary legatee offered only a receipt for the particular sum. A bill was filed by the (o) Overton v. Banister, 3 Hare, {d) Bate v. Hooper, 5 De Gr. M. & 503. G. 338. (J) Philips V. Pidlips, 3 Hare, [e] See v. Osborne, 6 Yes. 289. 455 ; but the release here spoken of (c) Livesey v. Livesey, 3 Russ. -yf^ apparently a conveyance. 287 ; Fordham v. WalUs, 10 Hare, fj'\ 2 Coll. 137. 217 ; Dibhs v. Goren, 11 Beav. 483. 374 DISTEIBXJTION OF THE TEUST FUND. [CH. XHI. S. 5. claimant against tlie trustee, and the Vice-Chancellor K. Bruce held that in strictness a release by deed could not be demanded, though he thought it was not out of the ordinary course of business or unreasonable ; that the plaintiff's refusal to execute a deed was justifiable, but that he was bound to have given an acquittance in writing in full of all demands. It seems also to have been decided in a case at the Eolls (a), that a trustee cannot as a matter of right insist on a release under seal. King V. Mullins. In King v. Mullins{b), a sum of 174Z. had been placed in the hands of a trustee upon trust by a parol declaration for Sarah for life, and on her death to pay her funeral expenses, and subject thereto to divide the fund between John and WiUiam. The costs of the suit depended on the question whether the trustee ought, as required, to have transferred the sums on the joint receipt of Sarah, John, and WiUiam, or whether he was right in refusing, unless they executed a release under seal. The Vice-Chancellor decided that the trustee was entitled to a release on the ground, first, that the trust was by parol, and secondly, that the time of payment, according to the tenor of the deed, was anticipated, as the tenant for life was still living. These reasons cannot be regarded as satisfactory. The circumstance that the trust was by parol, and therefore obscure, might have been ground for demanding an indemnity ; but seems to afford no reason for requiring a release under seal as distinguished from a simple receipt or acquittance in writing. Neither does the anticipation of the time appear to be material, for Sarah, John, and WiUiam were admitted to be the only eestuis que trust, and their con- currence in. the receipt was equivalent to a reduction iuto possession. From tnistees to The trust fund is not unfrequently transferred from the trustees of an old settlement to the trustees of some new settlement, and the trustees of the old settlement insist on a general release before they will part with the fund, while, on the other hand, the trustees of the new feel a reluctance to (a) Fulton v. Oilmour, 15 Peb- (6) Vice-Chanoellor Kindersley, ruary, 1845, Hill on Trustees, 21st December, 1852, MS.; 1 Drewry, 604. 308. trustees. CH. Xm. S. 5.] DISTRIBDTION OF THE TBOST FUND. 375 give more than a simple receipt. It is believed that the requi- sition of the trustees of the old settlement has been generally complied with ; but of course the trustees of the new cannot be called upon to enter into any covenant of indemnity. As the party to benefit by a deed is, in general, the one Expense of the to prepare it, the release wiU be drawn by the solicitor of the trustee. Another reason would be that the trustee has the necessary documents in his possession. The expence must, of course, be paid out of the trust fund. When a trustee pays money under the direction of the Court, Order of the he is indemnified by the order itself, and is not entitled to any release from the parties (a). It would be impossible to hold a trustee answerable for an act not of himself but of the Court. It is the duty, however, of the trustee to fuUy inform the Court of all the material facts within his knowledge, and if he improperly withheld them he might be made responsible for the deception practised on the Court. Now by the 10th & 11th Vict. c. 96, entitled " An Act for lo & n Vict, better securing trust funds and for the relief of trustees " (&), after reciting that it is expedient to provide means for better securing trust funds, and for relieving trustees from the responsibility of administering trust funds in cases where they are desirous of being so relieved ; it is enacted : I. That all trustees, executors, administrators, or other ■persons having in their hands any monies belonging to any trust whatever {c), or the major part of them shall be at (a) See Oillespie v. Alexander, 3 act, for he has not the monies in his E.US3. 137 ; Underwood v. Hatton, hands ; and if it were held other- 5 Beav. 39 ; Farrell v. Smith, 2 B. wise, the money might he paid into 6 B. 337 ; Fletcher v. Stevenson, 3 Court, and the incumbrancer would Hare, 370 ; Knatchhull v. Fearn- have to bear the costs of getting it head, 3 M. & Cr. 126; David v. out: whereas the nature of the Frowd, 1 M. & K. 209 ; Sawyer t. charge is, that the beneficiary is en- Birchmore, 1 Keen, 401, &c, titled to have it raised out of the (6) See an Essay on this act by estate, together with the costs of F. H. Appaeh, where all the cases raising it; Re Buckley's Trust, 17 up to the date of that of publication Beav. 110. will be found carefully collected. But it has been thought that (c) The owner of an estate charged where there is a power of sale with a sum in favour of another is without a power of signing receipts not a trustee of that sum within the the purchaser may take the estate 376 mSTEIBUTION OF THE TEtTST FUND, [GH. XIH. S. 5^ liberty (a) on filing an affidavit shortly describing the instrwnent creating the trust, according to the best of their knowledge and belief (6), to pay the same with the privity of the Aecountant- General. of the High Court of Chancery into the Bank of Engla,rid (c), to the account of such Accountant-General in the matter of the particular trust (d), (describing the same by the under the power of sale, and pay the money into Court under the Trustee Eelief Act, Cox v. Cox, 1 Kay & Johns. 251. A sum of money was payable by instalments, and the trustee, after receiving one instalment, paid it into court, and on a petition by the cestui que tritst, the Court not only administered the instalment paid in, but also gave directions to the trustee as to the future instalments; and said the order would give ample indemnity to .the trustee ; He Wright's Settle- ment, 1 Sm. & Gif. App. V. The Court had, in fact, no jurisdiction as to the instalments payable in future, and the order would be an . indem- nity in this sense only, that the trustee would be acting in a way which had received the sanction of the Court, though extra-judicially. Where money in which a lunatic is interested has been paid into court, the Lord Chancellor has jurisdiction under the act to order repayment to the guardians of the part of the ex- penses incurred by them for the support of the lunatic ; Re UpfuU's Trust, 3 Mao. & Gor. 281. (o) Liberty only is given to trus- tees to transfer the fimd into court, and bUls or claims for the adminis- tration of the trust may be filed by or against trustees, or cestuis que trust as before, at any time previous to the transfer into court ; Thorp v. Thorp, 1 Kay & Johns. 438. When the fund has been actually transferred into court under the Trustee Relief Act, the Court's ju- risdiction attaches, and any proceed- ing must be taken under the Act, and no bill or claim can be filed with reference to the fund trans- ferred, though, as to any portion deducted for costs, or other part retained by the trustees, or for which they are accountable, the or- dinary remedies are preserved to the cestuis que trust; Ooode v. West, 9 Hare, 378 ; Attorney- General v. Alford, 2 Sm. &. Gif. 488. (6) The afB.davit must not go into the whole history of the trust, so as to show upon the accounts how the particular sum arose, or the trustee wiU be deprived of his costs ; In re Waring, 16 Jur. 652. AH the trus- tees should properly join in the af- fidavit, as all may have some infor- mation to contribute, but under par- ticular circumstances the Court wiU order the Accountant-General to re- ceive the money on the affidavit of one of several co-trustees ; — '— v. , V. C. Wood, 1 Jur. N. S. 974. (c) The payment may of course be made without an order of the Court ; In re Biggs, 11 Beav. 27. And when an executor, after paying money into court, discovered debts of the testator, he was allowed to have the money paid back to him out of court, on his undertaking to apply it properly. Re Tournay, 3 De Gex & Sm. 677. {d) The money must not be paid in by an executor to an account, "the trusts of the testator's wiU," for this implies not a particular trust, but a general administration of the testator's estate. The executor must take on himself the responsi- bility of severing the fund from the testator's assets, and appropriating it to the particular purpose, and then CH. Xm. B. 5.J DISTRIBUTION OF THE TRUST FUND. 377 names of the parties as accurately as may be for the purpose of distinguishing it), in trust to attend the orders of the Court, and that all trustees or other persons having any annuities or stocks standing in their names {a) in the books of the Governor and Company of the Bank of England, of the East India Company, or South Sea Company, or any Government or Parliamentary securities standing in their names, or in the names of any deceased persons of whom they shall be personal representa- tives, upon any trust whatever, or the major part of them shall be at liberty to transfer or deposit such stocks or secui-ities into or in the name of the said Accountant- General, with his privity in the matter of the particular trust (describing the same as aforesaid), in trust to attend the orders of the said Court (b), and in every such case the receipt of one of the cashiers of the said Bank for the money so paid, or in the case of stocks or securities the certificate of the proper officer of the transfer or deposit of. such stocks or securities, shall be a sufficient discharge to such trustees or other per- sons for the money so paid, or the stocks or securities so transferred or deposited (c). II. That such orders as shall seem fit shall from time to time be made by the High Court of Chancery in respect of the trust monies, stocks, or securities, so paid in, transferred, and depo- sited as aforesaid ; and for the investment and payment of any pay it in to the limited account. If into court under the act ; In re Parry y it has already been paid in to an 6 Hare, 306. account too general for the Court to (6) Where the Court ia not satis- deal with, it may, on a separate ap- fled as to the facts by affidavit, it plication, be carried over to the right will, before making an order, direct account, and the Court will then an inquiry; Re Wood's Trust, 15 proceed to adjudicate upon the rights Sim. 469 ; and see Re Sharpens Trust, of the parties; Me Joseph's Will, 11 15 Sim. 470. Beav. 625 ; Re Everett, 12 Beav. (c) The payment into court is a 485 ; Me Wright's Will, 16 Beav. discharge only as to the money paid 367. As to the proper heading in, and leaves the trustee liable to a of the account, see further In 're suit in respect of the costs deducted Jervoise, 12 Beav. 209 ; Me Till- by him, or any other monies that stone's Trust, 9 Hare, Append, lis. ; might be recovered upon the footing and see Appach on the Acts, p. 44. of the trust ; see Goode v. West, 9 (o) Where stock is standing in the Hare, 378; Attorney- General y. names of deceased and surviving ^ZforeZ, 2 Sm. & Gif. 488 ; Thorp y. trustees, the survivor may transfer Thorp, 1 Kay & Johns. 438. 378 DISTRIBUTION OF THE TRUST FUND. [CH. XIH. S. 5; such monies, or of any dividends or interest on any sucli stocks or securities, and for the transfer and delivery out of any such stocks and securities, and for the administration of any such trusts generally, upon a petition (a) to be presented in a summary way to the Lord Chancellor or the Master of the Eolls without bill by such party or parties as to the Court shall appear to be competent and necessary in that behalf, and service of such petition shall be made upon such person or persons as the Court shall see fit and direct; and every order made upon any such petition shall have the same authority and effect, and shall be enforced, and subject to rehearing and appeal, in the same manner as if the same had been made in a suit regularly instituted in the Court ; and if it shall appear that any such trust funds cannot be safely distributed without the institution of one or more suit or suits the Lord Chancellor or Master of the Eolls may direct any such suit or suits to be instituted (6). (o) The application must he made by petition, and cannot be made upon motion ; In re Masselin's Will, 15 Jur. 1073 ; or upon a summons at chambers. But when an order has been once made upon a petition in compliance with the act, so as to found the jurisdiction, any further proceeding may be at chambers ; Re Hodges, 4 De Gex, Mac. & Gor. 491. The trustees themselves are com- petent to present the petition, but they are not the proper persons, ftnd the Court will not allow them more than respondents' costs ; Re Pazneau's Legacy, 2 Eay & J. 249. It was once held that where the fund had been transferred into court, there was still no such suit or matter actually pending as to dispense with the consent of the Charity Commis- sioners to an application on behalf of a charity ; ReMarkwelVs Legacy, 17 Beav. 618. But afterwards it was ruled by the Court of Appeal that in such a ease there was a matter pending within the meaning of the Charitable Trusts Act, 1853; Re Lister's Hospital, 6 De Gr. M. & G. 184. The petition should set out the material statements of the affidavit under which the money is paid in, as the affidavit is regarded. as a declaration of the trust to which the attention of the Court is to be called ; Re Levett's Trust, 5 De Gex & Sm. 619 ; Re Flack's Settlement, 10 Hare, Append, xxx. But the petition must not set out the affi- davit in extenso, or at a needless length ; Re Courtois, 17 Jur. 852, 10 Hare, Append, lxiv. A claimant may proceed in formA pauperis under the act ; Re Money, 13 Beav. 109. (i) The Court under this act has ample jurisdiction as upon a bill filed, and may therefore declare the validity or invalidity of a deed, with- out directing a suit, if the Court ia the exercise of its discretion do not think a suit necessary; Lewis v. Hillman, 3 H. L. C. 607. Where trustees of a marriage settlement CH. XIII. S. 5.] DISTRIBUTION OP THE TEUST FUND. 379 The following general orders relative to this act have since, General orders. in pursuance of the power given by the act, heen issued by the Court. 1. Any trustee desiring to pay money or transfer stock or securities into the name of the Accountant-General of the -Court of Chancery under the said act, is to file an affidavit entitled in the matter of the act and of the trust, and setting forth — 1. His own name and address. 2. The place where he is to be served with any petition or any notice of any proceeding or order of the Court relating to the trust fund. 3. The amount of stock, securities, or money which he proposes to deposit, or to transfer, or to pay into Court to the credit of the trust. 4. A short description of the trust, and of the instrument creating it. 6. The names of the parties interested in or entitled to the fund, to the best of the knowledge and belief of the trustee. 6. The submission of the trustee to answer all such inquiries relating to the application of the stocks, ' securities, or money transferred, deposited, or paid in, under the act, as the Court may think proper to make or direct. 2. The Accountant-General, on production of an office had transferred the fund into court, might be necessary ; but that other- and a petition was presented by a wise the Court had jurisdiction as in person claiming adversely to the a suit, and might direct an issue to settlement, Vice-Chancellor Wood try a question of sanity or the like ; disposed of the case upon the peti- Re Allen's Will, Kay's Rep. App. tion, no party having objected ; but xi. ; and see In re Bloye's Trust, 2 before the Lords Justices, the re- Hall & Tw. 140 ; 1 Mac. & Gror. 488 ; spondent not consenting, the peti- Ex parte Stutely, 1 De Gex & Sm. tion was ordered to stand over that 703. a bill might be filed ; Me Fozard's The Court directs a suit for its Trust, 1 Kay & Johns. 233, 24 Law own satisfaction only, and wUl not Jpur. 441, Ch, In another previous authorise the petitioner to file a bill case, Vice-Chancellor Wood had also because it may be the more con- disposed of the matter on petition, venient course for making out his and said that if there were creditors title ; JRe Harris's Trust, 18 Jur. or other unascertained claims, a suit 721. 380 DISTRIBUTION OF THE TEUST FUND. [OH. XUI. S. 5. copy of the aflSdavit, is to give the necessary direction's for transfer, deposit, or pajmient, and to place the stock, securities, or money, to the account of the particular trust,, and such transfer, deposit, or payment is to be certified in the usual manner. 3. The trustee having made the payment, transfer, or deposit, is forthwith to give notice thereof to the several persons named in his affidavit as interested in or entitled to the fund. 4. Such persons or any of them, or the trustee, may apply by petition, as occasion may require, respecting the investment, payment out, or distribution of the fund, or of the dividends or interest thereof. 5. The trustee is to be served with notice of any apphcation made to the Court respecting the fund, or the dividends or interest thereof, by any party interested therein or entitled "thereto {a)'. (o) If the trustee try to avoid, service, the Court, on being satis- fied of the fact, will make the order without service ; Hx parte ^ougham, 16 Jur. 325. The trustee who is served with the petition is prima, facie entitled to his costs ; lie JErskine's Trust, 1 Kay & Johns. 302 ; Croydon's Trust, 14 Jur. 54. But where the trustee has paid in the fund ahusimh/, as in order to evade a bill about to be filed against him, he vrill have no costs ; lie Wa- ring, 16 Jur. 652 ; and see lie Fagg's Trust, 19 L. J". 175. And where he has transferred the fund into court without sufficient reason, though he may be allowed the costs of the trans- fer, he will not be allowed the costs of appearing on the petition ; In re Covington, \ Jur. N. S. 1157; Ex parte Hemming, 2 Jur. N.S. 1186 ; and see CroyderHs Trust, 14 Jur. 54. If the person who pays in is the personal representative of a testator whose will creates the difficulty, the executor must take his costs of pay- ing ia the fund out of the testator's estate, but the subsequent costs come out of the fund ; He Caw- thorne, 12 Beav. 56. SecHs, however, if the trust fund has been- severed from the testator's estate, and is paid in by a trustee and not by the executor; iJe Larimer, 12 Beav. 521 : Ex parte Lucas, V. C. Bruce, 6 July, 1849. And the Court cannot direct the costs to be paid out of another fund also paid in by the trustee, but standing to a different account, though it may form part of the testator's residuary estate, and therefore be, per se, liable to costs ; lie Sodgson, 18 Jur. 786; and of course not out of the! testator's resi- duary estate, where it has not been paid in ; B,e Bartholomew's Trust, 13 Jur. 380 ; and see lie Sharpens Trusts, 15 Sim. 470 ; lie Feltham's Trusts, 1 Eay & Johns. 534 ; though where five-sixteenths of a fund paid into court had lapsed, the Court threw the whole costs on the lapsed shares as constituting part of the residue ; Sam's Trust, 2 Sim. N.S. 106. And if a trustee deduct his costs before paying in the fand, the Court has no jurisdiction as to the sum deducted ; In re Bloye's Trust, 1 Mac. & Gor. 504 ; 2 HaU & Tw. « C,H. Xni. S.,5.] DISTRIBUTION OF THE TEUST FUND. 381- 6. The parties interested in or entitled to the fund, are to be served with notice of any application made to the Court by the trustees respecting the fund in Court, or the interest or dividends thereof {a). 7. No petition is to be set down to be heard, until the petitioner has first named a. place where he may be served with any petition or notice of any proceeding or order of the Court relating to the trust fund. 8. Petitions presented and affidavits filed under the said lo & il Vict. 0. 96. act, are to be intitled in the matter of the said act (10 & 11 Vict. c. 96) and in the matter of the particular trust. The 10 and 11 Vict. c. 96, did not enable the major part of trustees to pay in or transfer a fund where the other trustees had a legal control over the fund and would not concur. Accordingly, by 13 and 13 Vict. c. 74, it was enacted, that where monies, annuities, stocks, or securities were vested in persons as trustees, executors, administrators, or otherwise, and the major part of them were desirous of transferring the funds into court, under the Trustees' Eelief Act, the Court on a petition presented under the said act for that purpose, might direct the transfer by the major part, without the con- currence of the rest, and might make an order on the necessary parties to permit such a transfer. By an order of 7th May, 1852, it was directed, that where General order, the affidavit on which the money is paid in did not state it to be unnecessary to invest the money, the Accountant- General should invest it in Three per cent. Bank Annuities. 153. Whether on a petition, by trary view, Ex parte Fletcher, 12 tenant for life for payment of the Jut. 619; 17 L, J. 169; and -Er dividends, the costs come out of the parte Peart, 12 Jur. 620 ; 17 L. J. corpus or out of the income is 168, V. C. Knight Bruce ; JRe Lori- a point on which the practice in mer, 12 Beav. 521, Lord Langdale ; the courts of different judges has Bangley's Trust, 16 Jur. 682, and much varied. In favour of pay- Re Ingram, 18 Jur. 811, V. C. Kin- ment out of corpus, the following dersley. cases may be cited : Re Ross, 1 Sim. (o) If a person not appearing by the N. S. 196, V. C. Cranworth ; Re affidavit to have an interest, but who Field's Trusts, 16 Beav. 146, M. E. made a claim, be served with the Sir J. Romilly ; Re Staple's Trust, petition, and disclaim at the bar, he 13 Jur. 273, Y. C. E. ; Re Butler's will not be allowed his costs ; Re Trust, 16 Jur. 32, M. E. Sir J. Eo- Parry's Trust, 12 Jur. 615. mUly ; and in support of the con- 382 DISTRIBUTION OF THE TEUST FUND. [CH. XHl. S. 5. « 18 & 19 viot. By 18 and 19 Vict. c. 134, s. 23, any trustee or other person having stock or money in his hands for a charity inay, by an order of the board of Charity Commissioners, transfer the stock or pay the money to the official trustees of charitable funds, and such payment or transfer will be an indemnity to the person paying or transferring. CHAPTER XIV. THE DUTIES OF TRUSTEES OF RENEWABLE LEASEHOLDS. Upon this head we shall first examine the preliminary question, in what cases the obligation to renew is imposed by the settlement. We shall then proceed to inquire in what manner the trustees are to levy the fines payable upon the renewals. I. In what cases the obligation to renew is imposed by the settlement. It might naturally be considered, that, from the very circum- Settlement of stance of the leaseholds being of a renewable character, a ^1,°^ se ii^piy settlement of them to several persons in succession would per * iiirection to renew. se imply a right in the remainderman to call upon the tenant for life to contribute to the fine (a); and indeed Lord Thurlow, in the instance of a lease which had not previously been treated as renewable, observed, " The cases in which the natwre of the estate or the will of the testator compels a renewal, appear not to apply to the present : where there is no such custom, or direction, it is in the discretion of the tenant for life to renew or not " (&). However, it seems to be now established generally, that, in a devise of renewable leaseholds without the interposition of a trustee, the remainderman cannot oblige the tenant for life to contribute to the fine (c). And so it was determined even where the devise was expressly made, " sub- ject to the payment of all fines, and as they became due yearly (o) See White v. White, 4 Ves. per Lord Alvanley ; S. C. 9 Ves. 32. 561, per Lord Eldon; Stone v. (6) Nightingale v. Lawson, 1 B. Theed, 2 B. C. C. 248, per Lord C.C. 443. • Thurlow.. (c) White V. White, 4 Ves. 32, 384 RENEWAL OF LEASES. [CH. XIV. and for every year " (a). But as the interest given is in its nature capable of renewal, tlie Court says, " If the tenant for life do renew, he shall not by converting the new acquisition to his own use derive an unconscientious benefit out of the estate " (b), but, on the remainderman's contributing to the fine, shall be regarded as a trustee, and shall hold the renewed interest upon the trusts of the settlement (c). Whether a direc- Next, will the interposition of a trustee sufficiently indicate tion to renew be . . implied by the an mtention of obliging the tenant for life to renew ? " In a truster^ '™ ° * devise to trustees," said Lord Hardwicke, " if cestui que trust for life be one of the lives, I should doubt whether such cestui que trust could be compellable to contribute ; but here all these lives were strangers ; the intent of the testator certainly was, that the lease should continue, and he kept on foot, and some" thing must he done for a renewal, though nothing is mentioned," {d). Lord Alvanley on one occasion alluded to the point, but said he was not called upon to decide it (e). In a late case where the devise was to trustees upon -trust to permit one to receive the rents for life, with remainders over, " subject to the payment of the rents and performance of the covenants reserved and contained, or to he reserved and contained, in the present or future leases, whereby such premises were or should he held, and also all taxes, fines, and expenses attending the premises," it was held that the obligation of renewing the lease was imposed by the will (/). In Lock v. Lock {g) a testator had devised a coUege lease of twenty-one years to his wife for life, remainder to her son, she paying 101. per annum to the son during her life ; and it was held, that, as the testator contemplated the continuance of the lease during the life of the wife, she was bound to renew. It has now been decided by Lord Plunkett, in Ireland, that a settlement with the mere interposition of a trustee does not impose an obligation to renew (h). {a) Capel v. Wood, i Rubs. 500, {d) Verney v. Verney, 1 Ves. 429. [b) Stone V. Theed, 2 B. C. C. 248, (c) White v. White, 4 Tes. 33. per Lord Thurlow. (/) Sulkes v. Barrow, Taml. 264. (c) Nightingale v. Lawson, 1 B. (g) 2 Vern. 666. C. C. 440; Stone V. Theed, 2 B. C. (A) O'Ferrallv. 0' Ferratt, Lloyi 0. 248, per Lord Thurlow ; Cojjpin & Goold, Eep. temp. Plunket, 79. V. Fernyhough, 2 B. C. C. 291 ; In Trench v. St. Oeorge, 1 Dru. & Fitzroy v. Howard, 3 Russ. 225. "Walsh, 417, before the same Judge, it CH. XrV.] EENEWAL OF LEASES. 385 Where leaseliolds of this kind are made the subject of a Wiether implied marriage settlement, it raay be argued, that, as all the parties ^ttlementf^^ who have any interest given them are purchasers, the enjoy- ment of the tenant for life should be consistent with that of the other subsequent takers. In Lawrence v. Maggs (a), the case of a marriage settlement with trustees interposed, but without any mention of renewals. Lord Northington said, " The husband renewed twice ; first, when he put in his own life, which was of no benefit to those in the settlement who were to take in remainder after his death. He renewed a second time, and put in his wife's life, and this he does voluntarily and without there being any direction for it in the settlement. The renewing the lease with any other life than that of the tenant for life is for the benefit of the remainder- man, and he is to be deemed a creditor, keeping down the interest during his enjoyment." The plain implication from which remark is, that in his Lordship's opinion the tenant for life was considered not bound to renew. There appears to be no other authority upon the subject but what may be collected from Sir W. Grant's observations in Lord Montfort v. Lord Cadogan. " The proposition," he said, " that under the marriage settlement it was the duty of the trustees to renew does not admit a question. The lease being made the subject of a settlement, it was clearly meant that it should be kept on foot by renewals. The trustees were to apply so much of the rents and profits as would be necessary for that purpose. They are not in so many words directed to renew, but the means being given, and the purpose expressed, there is no doubt that they were to apply those means to that purpose " (6). But, if renewable leaseholds be articled to be settled on the implied in arti- cles for a settle- ment. is not clear whether his Lordship which the remainderman suhmitted ^d or not consider the wUl as to contribute. See pp. 454 — 456. creating an obligation to renew, but {a) 1 Ed. 453. Search has been it would rather appear that he did. made for this case in the E. L. The remainderman was held not through several years, but the decree liable to contribute towards the re- has not been found. newal fines in favour of the tenant (6) 17 Ves. 488 ; and see S. C. for life, except as respected certain 19 Ves. 638 ; and see Trench v. St. fines paid subsequently to 1819, as to George, 1 Dru. & Walsh, 417. 386 RENEWAL OF LEASES. LCH. XIV. Of discretionary renewals. husband for life, remainder to the wife for life, remainder to the children, the Court will, in executing the settlement, insert the proper directions for renewals. This, it seems, was directly- determined in Graham v. Lord Londonderry (a) ; and the case of Lawrence v. Maggs, before Lord Northington, was cited in Pickering v. Vowles, before Lord Thurlow (&), as establishing the same doctrine ; but it appears by -the report taken from Lord Northington's own MS. that the bar were mistaken in this (c). However, Lord Thurlow himseK seems to have entertained that opinion, for, in Pickering v. Vowles, where the property was articled to be settled, but there were no directions for renewals, his Lordship said, " It was intended the lease should be fully estated, and that the husband and wife should have life estates, and that so fully estated it should go to the children." A direction for renewals is sometimes in the form of a discretionary power. The instrument may, indeed, be so specially worded, that the power should be perfectly arbitrary ; but, if the proviso be simply that " it shall be lawful for the trustees to renew, from time to time, as occasion may require, and as they may think proper," the clause will be construed, not as conferring an option upon the trustees of renewing or not, but as a safeguard against any unreasonable demands on the part of the lessor (d). How fines on renewals to be levied. How to be levied out of "rents, issues, and profits," where the leases are for years. II. We next proceed to inquire in what manner the fines for renewals are to be levied by the trustees. Upon this subject we shall Jirst advert to the cases where the settlor himself has specifically marked out the fund from which the fines are to be raised, and, secondly, we shall examine the rules adopted by the Court, where the settlor himself has omitted to declare any intention. First, If there be an express trust to provide the fines for renewals out of the " rents, issues, and profits," and the lease' (a) Cited Stone v. Theed, 2 B. C. C. 246. (6) 1 B. C. C. 197. The cause does not appear in R. L. (c) 1 Ed. 453. ((/) Milsington v, Mulgrave, 3 Mad. 491, 5 Mad. 472 ; Mortimer v. Watts, 14 Beav. 616; and see Ver- ney v. Verney, 1 Ves. 430; Harvey v. Harvey, 5 Beav. 134. CH. XIV.] RENEWAL OF LEASES. 387 holds are terms of years not determinable on lives, so that the times of renewal can be certainly ascertained, it will be the duty of the trustees to lay by every year such a proportion of the annual income as against the period of renewal will consti- tute a fund sufficient for the purpose (a). If the trust be to levy the fines for renewal out of the "rents, Fines to be levied , 0-a.t oi rents and issues, and profits, or by mortgage, it was held m a case before profits, or by Sir J. Leach (&) that the annual rents only would in the first ™'""*«"'^«- instance be applicable, for he considered the authority to mortgage not as making it optional with the trustees whether they should or not affect the interests of the remainderman, by throwing the charge of the renewal upon the corpus of the property, but as given for the protection of the cestuis que trust in case the amount of the fine should not be otherwise forth- coming (&), and intimated that should the trustees be under the necessity of mortgaging, the Court would call back from the party in possession the amount of the incumbrance thus temporarily" incurred (c). However, in the later case of Jones V. Jones (e), where the trustees were empowered to levy the fines " by and out of the rents, issues, and profits, or by mortgage, or by such other ways and means as should be advisable," the Court, after observing that to levy the fines from the rents would throw them on the tenant for life, while a mortgage would be oppressive to the remainder- man, declined to give any opinion whether the trustees might not, in the exercise of their discretion, have determined on whom the burden should fall; but as the trustees had not exercised their discretion, it was open to the Court to adjust the oniCs amongst the parties according to the equitable rule, viz. in proportion to their actual enjoyment, as soon as it could be ascertained (/). And in Greenwood v. Evans {g), and Reeves v. Creswick {h), the fines were to be raised out of (a) Lwd Montfort v. Lord Ca- and see Shaftesbury v. Marlborough, dogan, 17 Vea. 485; S. C. 19 Yes. 2 M. & K. 121, 123. 635 ; see Earl of Shaftesbwy v. («) 5 Hare, 440. Duke of Marlborough, 2 M. & K. 121. (/) Jones v. Jones, 5 Hare, 440. (J) Milsintown v. Earl of Port- (g) 4 Beav. 44. more, 5 Mad. 471 ; Milles v. Milles, [h) 3 Y. & C. 715, as corrected 6 Yes. 761. from Eeg. Lib. ; see^osi, p. 393. (c) 5 Mad. 472, per Sir J. Leach ; 888 EENEWAL OF LEASES. [CH. XIV. the rents, issues, and profits, or by mortgage, and the' Court adopted the principle of throwing the onus on |,the successive tenants of the estate, in proportion to their actual or pro- spective enjoyment. The leaseholds were for lives, but no distinction was taken on that account. The present leaning of the Courts would appear, therefore, to be, to consider the language of the iustrument, as directing only the temporary mode of raising the fines, without prejudice to the ultimate equitable adjustment, according to the principles now acted upon in equity in ordiaary cases. How to be levied jf the trust be to raise the fines for renewal out of the when the leases are for lives. " rents, issues, and profits," and the leaseholds are either for lives or for years determinable on lives, the expenses of renewal must still be cast upon the annual rents, if it clearly appear that such were meant, though, from the uncertainty of the time, the trustees cannot be sure they shall have accumulated an adequate fund. Whether rents But the expression " rents, issues, and profits " often stands annual rents. ^J itself, without any sufficient indication aliunde that annual rents were intended, and then the question arises, and is attended with great difficulty, whether the fines shall be raised out of the annual rents or the corpus. Stone V. Theed. In Stone V. Theed (a), where was a gift to trustees of freeholds and leaseholds and personal estate upon trust (subject to annuities) for a person for life, with remainders over, and the testator " directed that his trustees should from time to time renew the lease and add new lives, if they could obtain such lease, and empowered his said trustees to place out at interest the overplus of the rents of his real and leasehold estates ia Government or real securities," Lord Thurlow held that the annual rents only were to be so applied, observing, " He must consider the thing bequeathed to be the subsisting lease, subject to renewal. Suppose it were the case of an estate to which an embankment was necessary ; there could be no doubt it was a clear indication of intention that the first trust was to keep the estate productive by embankment or other buildings, (o) 2 B. C. C. 243 ; see the case remarks in Jones v. Jones, 5 Hare, stated from Eeg. Lib., with some 451, note (a). CH. XIV.] RENEWAL OF LEASES. 389 or, in the present case, by a very strict analogy, by keeping the leases renewed. It was objected, 'Could the testator be understood to make a provision which might exhaust the estate of the first taker? ' But the expressions were as strong as if he had said expressly he meant the lease to be kept up, and he must be understood to sacrifice the intent of a provision for the first taker to the original intent of keeping up the estate." In this case it will be observed that from the direction to accumulate the overplus of the rents, it appeared the tes- tator meant the annual rents only to be applicable to the renewals. In Allan Y. Backhouse (a) a testator devised leaseholds and Allan «. freeholds to trustees, and directed the fines to be levied " out of the rents and profits of the leaseholds, or out of the rents and profits of the freeholds." There was nothing in the will from which it could be collected that annual rents and profits Only were meant, and Sir T. Plumer considered that, as a gross sum might at any moment be demanded by the lessor, who was not bound to wait, the trustees, by the expression " rents and profits," were not confined to the annual rents, but were authorised to sell and mortgage ; and that the tenant for life and the remainderman should afterwards' contribute to the fine in the usual proportions. An appeal was presented to Lord Eldon, by whom the decree was affirmed (6). In Shaftesbury v. Marlborough (c), where there was a devise Shaftestury v. of renewable leaseholds to trustees upon trust to raise the ^^ °™"^ ' fines out of the rents, issue, and profits, and subject thereto upon the same trusts as the testator's freeholds. Sir J. Leach observed upon the discrepancy between Stone v. Theed, and Allan V. Backhouse {d), and, so far as the two cases were appli- cable to the question before him, followed the authority of the former. " The first trust," he said, " is, that the trustees by and out of the rents and profits shall from time to time renew the several leases as occasion may require : the trust as to the renewals over-rides all beneficial interest in the lease, and such interest cannot take effect until this trust be performed." (o) 2 V. & B. 65. (c) 2 M. & K. HI. (6) Jac. 631. {d) 2 M. & K. 121. 390 RENEWAL OF LEASES. [CH. XIV. Playters v. Playters V. Abbott (a) was a special case. A testator devised copyholds upon trust "out of the rents and profits, or by mortgage, sale, or other disposition" of the trust-estate, to raise the fines of admission to the copyholds, make repairs, pay the land-tax and quit-rents, &c., and Sir J. Leach (con- sidering the fine on admission to copyholds to stand on the same footing with fines on renewal of leases), determined, that as no rents could have accrued before the fines were demand- able, viz. immediately on the testator's death, the meaning was referenda singula singulis, that the trustees should raise the fines by mortgage or sale, and should keep down the annual expenses as repairs, land-tax, and quit-rents out of the annual rents : that the tenant for life was only called upon to keep down the interest on the mortgage for raising the fines and not to contribute to the principal, for the trustees might clearly have sold, and it was not to be supposed that they were afterwards to impound the accruing rents from the tenant for life in order to purchase other lands of equal value. Townley J). Bond. In Townley V. Bond (&) there was a lease for lives at 4s. an acre rent, with a covenant by the lessor for renewal, on payment of an additional rent, by way of fine, and on the marriage of the lessee, the lease was vested in trustees " upon trust to pay and discharge the yearly rents reserved and payable upon any renewal," and subject thereto, upon trust for the husband for life, with remainders over, and the Court apparently assumed that the fines were raisable out of the annual rents (&). In Cresivick v. Reeves (c), the trustees were empowered to levy the fines from the rents, issues, and profits, or by mortgage, and the Court apportioned the burthen amongst the successive tenants, according to their prospective enjoyment. In Greenwood v. Evans (d), the trustees were directed to raise the fines out of the rents, issues, and profits, or by mort- gage, and the Court decided that the successive tenants ought to bear a proportionate part of the fine according to the benefit derived by them respectively from the renewal of the lease. Creswick v. Greenwood v. (a) Id. 97 ; and see Greenwood v. Evans, 4 Beav. 44. (6) 2 Conn. & Laws. 393. (e) 3 T. & C. 715, corrected from Reg. Book, post 393. {d) 4 Beav. 44. CH. XIV.] EENEWAL OF LEASES; 391 In Jones v. Jones {a), the trustees were directed to raise the Jones v. Jones. fines by and out of the rents, issues, and profits, or by mort- gage, or by such other ways and means as should be advisable, and the Court apportioned the burthen amongst the parties according to the actual benefit derived by them. It thus appears that where the direction is to raise the fines Result of the out of the rents, issues, and profits, the Court may be com- pelled, by the express language of the instrument, to throw the fines upon the annual rents, but that where the trustees are empowered to raise the fines out of the rents, issues, and profits, or by mortgage, or otherwise, the discretion to be exercised is held to apply only to the temporary means of raising the fund, and the Court apportions the burthen accord- ing to the general rule. On a reference to the Master by Sir J. Leach, how a fund Of raising the for payment of fines on the renewals of leaseholds for lives, insurance. where the fines were to be paid from the rents, could best be secured, the Master proposed in his report, that each of the lives, upon which the leases were held, should be insured against the life of the tenant for life in a sum sufficient to cover the amount of the fine, the premiums upon the policies to be paid out of the annual rents and profits (b). Upon this ar- rangement we must remark, that the lives of the cestuis_ que vie ought to have been insured unconditionally and not against the life of the tenant for life, for the estate was continually deteriorating as the lives wore out, and the remainderman was entitled to have good lives or equivalent insurances. In leaseholds for years, the remainderman has right to a pro- portional accumulation towards the payment of the next fine, and why is not the same principle to prevail in the case of leaseholds for lives ? Subject to this observation, a more convenient mode of raising the fines could not perhaps be suggested, and a trustee under similar circumstances would scarcely incur a risk in following the precedent of the Court. Where freeholds and leaseholds for lives are limited to the Po^or to charg& • • If 1 T /v. T !• • 1 freeholds for same uses, it is usual, from the dif&culty of mortgaging lease- raising fines. [a) 5 Hare, 440. of Marlborough 2 M. & K. 124 ; and (6) Earl of Shaftesbury v. Duhe see Greenwoods. Evans, 4 Beav. 44. 393 RENEWAL OF LEASES. [CH. XIV. Wlo shall have the accumula- tions where re- newal cannot he had. Who must compensate the remainderman where no renewal has been made. Of fines of under- holds vested in trustees (who will not covenant beyond their own acts), to insert a power to charge the freeholds for raising the fines ; and it would be well to provide that the freeholds and leaseholds might be joined together in the security, and that the loan should precede other charges, and that the corpus of the property should be subject to the mortgage, so as to shut out the question of apportionment between the tenant for life and the remainderman. If a portion of the annual rents and profits be destined by the settlor to defray the expenses of renewals, then, should it happen from the unwillingness or incapacity of the lessor that no renewal can be obtained, the sums which would have been raised, will not, it seems, merge for the benefit of the tenant for life, but will belong to the person who would have been the gainer by the renewal {a). If a trustee (&), or tenant for life, in the situation of a trustee (c), fail in his duty to apply the given fand, the re- mainderman may call for a compensation from such trustee, or tenant for life, or their assets. But when, by the permis- sion of the trustee, the tenant for life has been in the full enjoyment of the rents and profits without deduction for renewals, though the trustee is primarily answerable to the remainderman, yet the tenant for life, who has had the- actual pernancy, must make it good to the trustee (d). And where the leaseholds were annually renewable for twenty-one years, and the custom had been for the lessee annually to grant under-leases for twenty years, the tenant for life, as bound to pay the fines to the lessor out of the annual rents and profits, was declared entitled to the fines paid annually by the under-lessees (e). (o) See CoUgrave v. Manly, 6 Mad. 86, 87; 8. C, 2 Euss. 252 ; Bennett v. Colley, 5 Sim. 181 ; 2 M. & K. 231 ; \)wt&e6Richardson-^,\Moure, and Tardiff-f. Sobinson, cited Cole- grave V. Manby, 6 Mad. 82, 83. (5) Lord Montfort v. Lord Ca- dogan, 17 Ves. 485 ; 8. C, 19 Ves. 635 ; aad see Wadley v. Wadley, 2 Coll. 11. (c) Cohgrave v. Manby, 6 Mad. 72 ; 8. a, 2 Russ. 238. (d) Lord Montfort v. Lord Ca- dogan, ubi supra ; Tuwnley v. Bond, 2 Conn. & Laws. 403, 406, per Sir E. Sugden; and see Wadley v. Wadley, 2 Coll. 11. (e) Milles v. Milks, 6 Ves. 761. CH. XIV.] fiENEWAL OF LEASES. 393 Secondly. It often happens that renewable leaseholds are Ho-w fines to devised to trustees with a direction, either expressed or implied, ^l direction by to keep the leases continually renewed, but without any deck- *^ settlor. ration of intention from what fund the settlor meant the expenses should be levied. Where this is the case, the tenant for life and remain- Where paid by -, T T p c tenant for life or aerman may possibly agree to contribute toward the fine out or remainderman. their own pockets, at the time of the renewal ; or if the tenant for life and remainderman cannot agree to join in raising the fine, one of them may be willing to advance the whole amount pro tempore out of his own pocket, and then an apportionment on the principles adopted by the Court may be compelled between the tenant for life's estate and the remainderman at the tenant for life's decease, and either party advancing the fine will have a lien on the renewed lease for the amount expended beyond his proportional part. If tenant for life and remainderman wiU neither jointly nor either of them singly advance the fine, then it is said the trustees must raise the expenses out of the estate by way of mortgage (a) ; and at the tenant for life's decease the apportionment must be made in like manner. However, a mortgage, where Mortgage by neither the tenant for life nor remainderman wiU make the advance, is more easily to be suggested than to be carried into eifect, for few persons would be disposed to lend their money on such a security, in the absence of any express power to mortgage. In such a case, therefore, it seems necessary to have recourse Application to to the Court, Thus, in a recent case (6), where leaseholds for (a) See Buoheridge v. Ingram, 2 consult tte Reg. Lib., has obligingly Ves. jun. 666 ; Earl of Sha/teshury furnished me with the following ex- v. Buhe of Marlborough, 2 M. & K. tract from the will: "It shall be 121 ; Allan v. Backhouse, 2 V. & B. lawful for my said trustees, and the 72. survivor of them, and the heirs, (J) Reeves v. Creswich, 3 Y. & C. executors, administrators and assigns 715. It is stated in the report that respectively of such survivor, to re- " there were no funds provided for new, or use their or his endeavours the purpose of renewal by the tes- to renew, the leases for the time tator's will ;" from which it might being of such part of my said estates be supposed that the will was alto- as shall be aocustomably renewable gether silent upon the subject, but from time to time and as often as Mr. Shapter, who had occasion to occasion shall rec[uire, and for that 394 EENEWAIi or liEABES-. [CH. XIV. lives were devised to trustees upon trust for A. for life, with remainder to her children, and a bill was filed by the trustees for the purpose of having the expenses of renewal raised, the following scheme, which had been approved by the Master, was directed to be carried into effect. The period of enjoy- ment of the property by the tenant for life under each of the old leases, being the joint duration of her own life, and that of the then surviving cestui que vie named in such lease, and the period of her enjoyment of the property imder each cor- responding renewed lease being in like manner the joint duration of her life and those of the new cestms que vie, or the longest liver of them ; the difference between the values of the estates of these two periods gave the benefi^t derived by the tenant for life from the renewals in question. The residue of the increased value of the property necessarily expressed the benefit derived from the renewals by the remainderman. Calculations were accordingly made by the actuary of an insurance office, upon the above principles, of the benefit derived by the respective parties from the renewal of each lease, and the fines and expenses of renewal being divided in the proportions so ascertained, the total amount which there- upon appeared to fall to the share of the tenant for Hfe, was directed to be insured upon her own life for the purpose of providing, upon her decease, for the payment of a correspond- ing part of the principal of the mortgage debt to be raised upon the property. The policy of insurance was ordered to be assigned to the mortgagee, and directions were given for paying the premiums on the policy, and for keeping down the interest on the entire mortgage-debt out of the annual rents and profits of the estates. The only observation that occurs upon the propriety of this arrangement is, whether the tenant for life ought to have been directed to keep down the interest on the entire mortgage-debt out of the annual rents as between purpose to make such surrenders of may be so renewed, or hy mortgage the then leases, or any renewed thereof, to raise so much monies as leases, as shall be requisite and ne- shall be sufficient for paying the se- cessary in that behalf, and ly and vera! renewal fines and other neoes- out of the rents, issues, and profits sary charges for such renewals." of the premises, the leases whereof CH. XIV.] EENEWAL OF LEASES. 395 him and the remainderman, or only of that part of the prin- cipal which fell to the share of the tenant for life. It will he seen also from this statement, that the Court made an apportionment according to the speculative benefit, a course which the Court has since disclaimed, except for the pur- pose of raising the fine in prcesenti, without prejudice to the ultimate apportionment on the death of the tenant for life, when the relative benefits derived can be ascertained. It is possible, though it does not so appear from the report, that the decree was without prejudice to an ultimate adjust- ment. We proceed to inquire upon what principles the apportion- ment is regulated upon the tenant for Hfe's decease. The old rule of contribution was, that the tenant for life Old rule of con- should advance one-third, and the remainderman two- thirds (a) ; but the question was put by Lord Thurlow, " Is a tenant for life at the age of ninety-nine, whose title accrued in possession when he was niaety-eight, to pay one- third — a great deal more than any possible enjoyment ? According to that rule, a man of the age of ninety-nine, who has the enjoyment only of ten^ days, pays as much as a man of twenty-five" (&). It might possibly be thought reasonable that the proportion Court wUl not of the expense to fall upon the tenant for life should be regu- t^e°cabiilationB. lated by his actual age and probable duration of life ; but acci- dent might render such a course unjust to the one party or the other, as the tenant for life happened to live a longer or shorter period than was allowed by the calculation (c), and the Courts, it was observed by Lord Brougham, have made it a maxim not to admit an estimate which the events may after- wards falsify (cQ. {a) Earl of Shaftesbury v. Buke Sprainger, Pr. Ch. 62 ; Cornish v. of Marlborough, 2 M. & K. 118, per Mew, 1 Ch. Ca. 271. SirJ. Leaoh; Lock ^. Lock, 2Vern, (J) See Wliite v. Wliite, 9 Tes. 666, K. L. 1710, B. fol. 120 ; Verney 555. v. Verney, 1 Ves. 428 ; Linibroso v. (c) Earl of Shaftesbury v. Buhe Franda, cited ib. ; OrahamY. Lord of Marlborough, 2 M. & K. 119, per Londonderry, cited Stone v. Theed, Sir J. Leacli. 2 B. C. C. 246 ; and see Rowel v. (<^) Bennett v. ColUy, 2 M. & K. Walley, 1 Ch. Eep. 218 ; Ballet v 234. 396. EENEWAL OP LEASES, [CH. XIV.. Eule of keep- ing down the interest on tlie fine. Present rule of contribution. Nightingale v. Lawson. Lord Alvanley adopted the rule {a), and from the case of Lawrence v. Maggs it would seem that Lord Northington had. before acted upon the same principle (6), that the tenant for life should merely keep down the interest of the fine : but Lord Eldon said, " he could not agree to that. In the case of tenant for life and remainderman in tail or in fee, the inheritance being charged with the mortgage, it was fair the tenant for life should only keep down the interest, for the natural division was, that he who had the corpus should take the burden, and he who had only the fruit should pay to the extent of the fruit of the debt : but leases, whether for lives or years, were in their nature temporary, and "therefore the position that the tenant for life was bound to pay the interest was to be understood with this qualification, that he was further bound to contribute a due proportion of the principal ac- cording to the benefit he derived from the renewed interest (c)." The rule now in operation was first clearly laid down by Lord Thurlow in Nightingale v. Lawson (d), a case, said Lord Eldon who was one of the counsel in it, to which, from the intricacy of the subject, the reports have failed to do justice (e). The circumstances may be very briefly stated as follows : — A widow, tenant for life of a term which had twelve years to run, renewed for a further term of twenty-eight years, to com- mence from the expiration of the twelve years, and afterwards renewed for the additional term of fourteen years to commence from the expiration of the twenty-eight years. The widow lived through the original term of twelve years, and through nine of the renewed term of twenty-eight years. The question was raised after the death of the widow, in what proportions the tenant for life and the remainderman should contribute to the fines. The following points were resolved by Lord Thurlow, after a very anxious, frequent, and grave considera- tion of the subject (/), and have ever since been acquiesced in by the Courts. (a) Bucheridge v. Ingram, 2 Ves. jun. 652, see 666 ; White v. White, 4 Ves. 24, see 33. (i) 1 Ed. 453, see 455. (c) White v. White, 9 Ves. 560. {d) 1 B. C. C. 440. (e) White v. White, 9 Ves. 556. {/) See White v. White,^ Ves. 560. CH. XIV.] Renewal of leases. 397 1. " That, as the widow had lived nine years after the expi- Proportions to ration of the twelve leaving niaeteen years to run of the twenty- tenant for life eight, the Master ought to take the sum paid by her for the ^""^ remainder- renewal of the lease as the value of the term purchased, that is, of the term of twenty-eight years, to commence at the expiration of the twelve years ; he should then consider the value of the term of nine years after the existing term, and what the term of nineteen years after the existing term and the nine years was worth, and the latter was the proportion to be paid by the remainderman" (a). Upon which resolution Lord Eldon thus comments : — ■" It was first considered," he said, " what the interest of the tenant for life was in that term which had to run out at the time of the renewal, and then what benefit the tenant for life had received by the enjoyment of the renewed term from the period when the old term would have expired: and Lord Thuriow determined that the re- mainderman took that interest in the renewed term which was ultra so much of the renewed term as expired in the life- time of the person who renewed, and the value of that interest he made the remainderman pay" (6). 2. " That as to the kind of interest to be allowed, simple Kind of interest interest would not be a satisfaction, as the widow had laid out her money totally, and the value of the lease was calculated upon the ground of compound interest : compound interest was therefore to be computed upon the proportional value of the nineteen years' term to the whole expense of renewal " (c). 3. " That as to the rate of interest, in computing compound Rate of interest, interest, you go upon the idea that the interest is paid upon the exact' day and immediately laid out ; but as this was im- possible, it would be sufficient to compute interest at 4 per cent " (d). 4. " That such interest was only to be paid till the widow's Rate after the -death, for after that her executors had the demand upon the tenant for life. (a) See Coppin v. Fernylumgh, 2 nauze v. Malone, 3 Ir. Ch. Ee. 354. B. C. C. 291 ; Barnard v. Heaton, (J) White v. White, 9 Ves. 558. cited White v. White, 4 Ves. 29 ; (c) See White v. White, 4 Ves. Playters v. Ahhott, 2 M. & K. 108 ; 35, 36 ; 8. C, 9 Ves. 557, 558. JEarl of Shaftesbury v. Dulce of (d) See Giddings v. Giddings, 3 Marlborough, 2 M. & K. 118; La- Buss. 260. 398 EENEWAL OF LEASES. [CH. XIV. remainderman, and it became a common debt, and must carry- simple interest only" (a). Case of tenant 5. " With respect to the second renewal, as the widow had for life lia%'ing tad no enjoy- not lived to enjoy any part of that term, her executors were "*° ■ entitled to the whole of the expenses, with interest to be com- puted on the same principle as before " (b). Risk of losing the In this case it will be observed, the tenant for life had dis- contribution. ■,■•■, n i i i • bursed the nne, and, the payment bemg a charge upon the property, the widow was in no danger of eventually losing her demand. But where the tenant for life has not the means of renewing, but the remainderman comes forward with the money, if the contribution is to be suspended till the death of the tenant for life, it may happen, that, when the proportions can at last be ascertained, the estate of the tenant for life may be insolvent, and so the contribution be lost. " I admit," says Lord Eldon, " there is this difficulty in the case ; but perhaps from the nature of the thing it cannot be helped: the utmost extent you can go is to make the tenant for life give security for the sum which may eventually be due " (c). How the rule to There occurs, also, this other difficulty, viz. how to apply the be applied to . , leaseholds for principle to the case of leaseholds for lives. The new cestui que ™^' vie may die in the lifetime of the original cestui que vie, and then no actual benefit accrues either to the tenant for life or to the remainderman. If the tenant for life paid the fine, is the remainderman to contribute nothing, because he took no benefit ? If the remainderman paid the fine, is the tenant for life to contribute nothing, because he can excuse himself under the same plea ? From the nature of leaseholds for lives it seems difficult to discover any better principle than one of the following : — First, That the tenant for life and the remainderman should contribute according to their chance of benefit at the time of the renewal, in which case the proportions would be settled thus : — The chance of benefit to the tenant for life is the value of the new life commencing from the death of the last surviving (a) See Qiddings v. Giddings, 3 (c) See White v. White, 9 Tea. Euss. 260. 558, 559 ; Earl of Shaftesbury v. (6) Coppin, V. Fernyhoughf 2 B. Duke of Marlborough, 2 M. & K. C, C. 291. 122. CH. XrV.] EENEWAL OF LEASES. 399 original cestui que vie, and determining on the deatli of the tenant for life. The chance of benefit to the remainderman is the value of the new life commencing on the death of the original cestuis que vie after the death of the tenant for life. In the propor- tion of these two values would be the respective contributions. Secondly, that the remainderman's proportion should be regulated by the actual benefit derived. Thus, if the new cestid que vie die in the lifetime of any of the original cestuis que vie or of the tenant for life, the remainderman takes no benefit and has nothing to pay. In this case the tenant for life is the loser. Should the new cestui que vie survive the original cestms que vie and also the tenant for life, the value of the new life should be taken at the tenant for life's death, and that interest be paid for by the remainderman. It might happen that the original cestuis que vie and the tenant for life might die soon after the renewal, and then the estimated value of the new life would be greater than the whole fine. In such a case the tenant for Hfe would be a gaiuer. Thus the tenant for life might sometimes be a gainer, sometimes a loser : the remainderman would never either gain or lose, but would pay the exact value of the interest which he actually took. The authority of Lord Eldon upon the subject is so obscurely Dictum by Lord worded, that little light can be gained from it. " There is no difference," he said, " between a renewable term for years and a lease for lives renewable. In the former case the difficulty does not arise so much, upon the probable value of a term certain, as upon an estate for Uves in estimating what is the value of that life which may survive the three cestuis que vie, and that interest to be paid for by the re- mainderman, as the case may happen that one, twoj or three lives may determine in the life of the man entitled to the bene- ficial interest" (a). In the recent case of Jones y. Jones {b), before Vice- Chan- Jones % Jones. cellor Wigram, and involving leaseholds for lives as well as leaseholds for years, and where the fines were to be raised out of the rents or by mortgage, or by such other means as should be advisable, the mode of raising and ultimately apportioning the («) White v. White, 9 Yes. 559, (6) 5 Hare, 440. 400 RENEWAL OP LEASES. [CH. XIV. fines was fully considered, and the importance of the subject may justify a somewhat lengthened extract from the judgment. " The rule," said the Vice-Chancellor (a), " is, that the parties are to pay in proportion to their enjoyment, by which I under- stand their actual enjoyment to be meant, and not an extent of enjoyment to be determined by mere speculation, or by a calculation of probabilities, and the question is, how that apportionment is to be effected. If the tenant for life is willing to take upon himself to renew, it appears to me accord- ing to the cases there is very little difficulty in carrying out the transaction. He will enjoy the estate during his own life, and when the actual period of his enjoyment is ascertained, his estate wiU have a lien upon the residue of the term for any overpayment which may have been made. The tenant for life having paid the whole, if he has not the whole enjoy- ment his estate will have a lien for whatever ought to be paid by the remainderman. The case is one of much greater diffi- culty where the renewal is made by the remainderman, or (which as to this difficulty is the same thing), where the trustee is to raise the money and charge it on the corpus. In that case, unless some course be taken to protect the interest of the remainderman, the tenant for life may enjoy the estate during his whole life without hearing any greater charge than the interest on the debt created by the renewal, and he may leave no assets to pay his proportion of the principal money. That inconvenience may perhaps be avoided by requiring the tenant for life to give security. The late cases of Greenwood V. Evans (b), and Beeves v. Creswick (c), are authorities which recognise the course of giving security as a course proper to be pursued where no other means are open for providing for a proper apportionment. It is not to be disputed that there is a practical difficulty even in this mode of proceeding ; the difficulty is in determining for what sum the tenant for life is to give security. If he gives security for the whole amount of the fine, because by possibility he may enjoy the whole benefit resulting from the renewal, the difficulty is got over ; but the tenant for life may not be able to give security for (a) p. 496. (J) 4 Beav. 44. (c) 3 Y. & C. 715. CH. XIV.] RENEWAL OF LEASES. 401 the whole although he might for a part, and how is the Court in such a case to deal with the interests of the parties ? I do not mean to give any opinion as to the way in which the Court would proceed in cases that might be suggested, but in considering what is proposed as a general rule, it is right not to disregard the inconvenience or difficulty which in some cases might arise in its application. I do not, however, think that the difficulty to which I have adverted is insuperable. The tenant for life may in the first instance be required to give security for an amount calculated upon the assumption that his life wiU. last during a portion of the renewed lease. If he should die within the time during which it was assumed that his life would last, the security would of course be more than sufficient to satisfy his proportion of the fine, and it would be void for the excess. If he outlived that time he might, if necessary, be called upon to give a further security to cover the additional proportion then to be attributed to him. In the case of Allan v. Backhouse {a), and other cases, it would appear that the party was not called upon in the first instance to pay the whole, but it was apportioned, and I pre- sume on the principle that he should be required to pay the apportioned sum in the first instance without prejudice to the question whether he might not ultimately be liable to pay more. It appears to me, being guided by the light which the cases afford me, proper to declare that each party is to bear the burden of the renewal in the proportion of his actual enjoyment of the estate. There will be a direction for the tenant for life to keep down the interest, and a reference, as in Allan v. Backhouse {a), to ascertain what proportion of the fine was properly payable by him. This inquiry is necessarily, by anticipation. There will then be a reference, as in Green- wood V. Evans (b), for the Master to approve of a security, and these directions must be followed by a declaration that the reference and security are to be without prejudice to the question whether the tenant for life may or may not be liable to pay less or more than the sum for which the security is given." The doctrines enunciated in this case have been since (a) 2 Vea. & Be. 65. (6) 4 Beav. 44. 402 EENEWAL OF LEASEi3. [CH. XIV.' Tenant for life regarded as a trustee. Tenant for life refusing to renew. Admission fines in copyholds. approved as sound law, and the tenant for life, where the fine has been paid out of the trust fund, has been ordered to give security for his contribution to the fine in proportion to the benefit which he should derive from the new life (a). Where the legal estate of renewable leaseholds is devised without the interposition of a trustee, but the testator at the same time directs, either expressly or by implication, that the leases should be renewed, the tenant for life is then himself a trustee (&), and as such is compellable to obtain renewals (c), and ought before applying for a renewal to consult the re- mainderman (d). It has been said, that if from the threats or acts of the tenant for life there appears the intention of suffering the' lease to expire, the Court would appoint a receiver of the estate to provide a fund for the renewal (e) ; and that if the tenant for life has already allowed the period of renewal to pass, the rents and profits may be sequestered for either procuring a renewal (/), or finding the remainderman a com- pensation (g). But no suit for damages can be effectually prosecuted before the tenant for life's decease ; for so long as it remains uncertain how much of the renewed term wiU survive to the remainderman, the amount of the injury done to him cannot be ascertained Qi). It follows that the mere forbearance of the remainderman to bring a suit during the continuance of the life estate cannot be construed into laches or acquiescence (i). We may remark in conclusion, that the admission fines of trustees of copyholds are regulated by the same principles as fines on renewal of leaseholds. Thus a testator devises copyholds to A. and his trustees upon trust for B. for life, with remainder to C. in fee. A. pays a fine on his admission and dies. His (o) Huddlestone v. Whelpdale, 9 Hare, 775. (i) White V. White, 5 Ves. 554. (e) Lock V. Lock, 2 Vern. 666; and see White v. White, 4 Ves. 24. {d) White V. White, 5 Ves. 554. (e) See Bennett v. Colki/, 2 M. & K. 233. (/) See S. C. 5 Sim. 192. (>) S. C. 5 Sim. 181 ; 2 M. & K. 225 ; and see Zord Montfort v. Lord Cadogan, 17 Ves. 490. {h) Bennett Y. Colley, 5 Sim. 181; S. C. 2 M. & K. 225. {i) S. C. CH. XIV.] RENEWAL OF LEASES. 403 heir is admitted and pays a fine and dies, and his heir again is admitted and pays a fine. Thus the fine for the admission of the trustee is a kind of purchase money for an estate for the life of that trustee. The burthen must of course be borne by the cestuis que trust of the estate, and they contribute to the fines in proportion to their actual enjoyment, as in the case of leaseholds (a). These observations are on the assump- tion that the wiU or settlement contains no express directions how the fines are to be raised. (a) See Playters v. Abbott, 2 M. & Cli. Ca. 447 ; Jones v. Jones, 5 Hare, K. 108 ; Bull V. Birkleck, 2 T. & C. 461, D D 2 CHAPTER XV. DUTIES OF TRUSTEES TO PRESERVE CONTINGENT REMAINDERS (a). How settle- ments usually framed. Object of Test- ing the freehold in trustees. Object of the more usual li- mitation to preserve contin- gent remainders. Settlements which embrace limitations to trustees to pre- serve contiagent remainders are usually penned in one of the two following forms : either, First, the estate is limited to the use of the parent for 99 years if he should so long live with remainder to the use of trustees and their heirs during the life of the parent upon trust to preserve contingent limitations with remainders over ; or to the use of trustees and their heirs during the life of the parent in trust for him with remainders over ; or, Secondly, it is settled to the use of the parent for life, with remainder to trustees and their heirs during the life of the parent upon trust to preserve contingent limitations, with remainders over. In the first form of settlement the object in view by the interposition of trustees is not merely to preserve the contin- gent estates from the parent's legal power to destroy them, but also to prevent the exercise of any undue influence of the father over the son, which, if the father were tenant of the first freehold, he might be disposed to practise, in order to induce the son to join in barring the entail for purposes not authorised by the spirit of the settlement (6). In the second form it is imposed upon the trustees, as before, to preserve the contingent limitations; but as the freehold in possession is vested in the parent, the trustees can have no power to prevent a recovery by the father and son so (a) The law upon the subject has since been most materially altered by recent Acts, as will be noticed at the end of the chapter. (5) See Woodhouse v. Soskins, 3 Atk. 24 ; Woolmore v. Burrows, 1 Sim. 527. CH. XV.] DUTIES OP TEUSTEES, ETC. 405 soon as the son has attained the age of twenty-one ; but should the tenant for life commit a forfeiture, and so the freehold in possession become vested in the trustees, it would then be their duty, though the settlor himself might not have contem- plated such a purpose, not to allow the interests of the child to be prejudiced by any improper exercise of the authority of the parent. The duties of these trustees may be regarded, first, as the case stands before the eldest son has attained twenty-one ; and, secondly, as the obligations of the trustees are varied by the occurrence of that event. I. Until the eldest son has attained twenty-one the duty of Duties of the trustees not to join in any act to destroy the contingent the^'eldestton* remainders is express and imperative (a). " When trustees," it '^^^ attained twenty-one. was once observed by the Court, "are appointed to preserve an estate in a family and for no other purpose, and they, instead of pursuing it, do a wilful act with an intent and in order to destroy it, how can this be otherwise than a plain breach of trust, or how can it be rendered clearer than by barely putting the case ? Should the Court hold it no breach of trust, or pass it by with impunity, it would be making proclamation that the trustees in aU the great settlements in England were at liberty to destroy what they had been intrusted only to pre- serve. Where an estate is limited to A. for life, remainder to his first and other sons in tail, though it be a plain wrong and tort in A. to do any act which wiU. destroy those remainders before the birth of a son, notwithstanding his legal power of doing so, yet, as in this case there is no trustee, there can be no trust, nor consequently any breach of trust; and therefore a court of equity may have no cognisance of such a case nor handle for relief, the matter being left purely at the common law. To prevent this inconvenience, the remedy of appointing trustees was invented on purpose to disable the tenant for life from doing such an injury to his issue, which is not a very (a) Mansell v. Mansell, 2 P. W. Tipping v. Pigrjntt, \ Eq. Ca. Ab. 678; Moody Y. Walter, l&Ye&.ZQI 385, per Lord Haroourt; Pye v. & 307, per Lord Eldon ; Biscoe v. Oorge, 1 P. W. 128, per eundem ; Perkins, 1 V. & B. 491, per eundem: 8. C. 7 B. P. C. 221. 406 TEUSTEES TO PRESERVE [CH. XV. Immaterial •whether settle- ment be Toluu- tary or not. Remedy on breach of trust. No relief to per- sons not contem- plated by the settlement. Issue during the life of the parent cannot sue as "heir." old invention. Now as it was a tort in the tenant for life where there were no trustees to destroy contingent remainders, so must it more plainly be one in trustees to join in the destruction of them being contrary to their trust, upon which account only is such act of theirs punishable in a court of equity" (a). It was formerly contended, that in settlements upon mar- riage, or for other valuable consideration, it would be a breach of duty to join in the destruction of the remainders, but that in limitations created by will or other voluntary settlement the same doctrine was not applicable ; but in Mansell v. Man^ sell (6) the distinction was unhesitatingly over-ruled, for " whether the trustee did it on a voluntary conveyance or not was immaterial, for still every trustee ought to be faithful to his trust "(c). If the trustees destroy the contingent remainders in favour of a volunteer or purchaser with notice, the specific estate may be followed into the hands of such volunteer or purchaser; but if the trustees pass the property into the hands of a pur- chaser without notice, then, as the identical estate cannot be recovered, the trustees will be decreed to buy other lands of equal value to be settled to the same uses {d). Where the ultimate limitation of a marriage settlement is to the heirs of the husband, if the trustee join with the husband and wife in the destruction of that remainder, and there is no issue of the marriage, the heir of the husband is not entitled to come upon the trustee to compensate him for the loss of the estate : relief is extended to those only who come in and claim as purchasers, as first and other sons ; not to all the subsequent remainder-men, as the right heirs of the husband, who are regarded in the light of volunteers, and not to be aided in a court of equity {e). And in a limitation to trustees and their heirs during (o) Mansell v. Mansell, 2 P. W. 680. (6) Id. 6Y8. (c) Id. 683. {d) Mansell v. Mansell, 2 P. W. 681, ^er Ciir. ; Parkesv. White, 11 Ves. 209, see 220, 236; Pye v. Gorge, Pr. Ch. 308 ; S. C. 1 P. W. 128. (e) Tlj>ping v. Piggott, 1 Eq. Ca. Ab. 385. -Cn. XV.] CONTINGENT EEMAINDEES. 407 • the life of the hushand, remainder to the heirs of the body of the husband, remainder to the husband in fee, the issue of the marriage cannot claim compensation for a breach of trust during the lifetime of the husband, for nemo est hares viventis (a). As any disturbance of the settlement before the eldest son Court will not has attained twenty-one is a clear breach of trust, it follows struction of the that even the Court cannot sanction such a proceeding, though settlement. very particular circumstances may be alleged in support of the reasonableness of the demand. Thus, where the plahitifif and his wife had been married twelve years without issue, and the prayer of the bill was that part of the estate might be sold for payment of debts, and the trustees submitted to act as the Court should direct, Lord North said " he could not justify to decree a breach of trust : he had known where people had been married near twenty years without issue, and afterwards had children " (6). But two cases are to be noticed, in which the Court did Exceptions. conceive itself justified, from the great particularity of the cir- cumstances, in departing from this rule. The first is the case of Piatt v. Sprigg (c), in which R. mort- Piatt ». Sprigg. gaged lands to M. for 1000 years, to secure lOOOL and interest, and afterwards upon his marriage made a settlement, subject to the incumbrance, to the use of himself for life, remainder to trustees to preserve contingent remainders, remainder to the wife for life, remainder to the first and other sons. The mort- gagee threatened to enter, and the lands were in consequence articled to be sold. The purchaser filed a bill praying specific performance, and that the trustees might be directed to join in . the conveyance, and so it was decreed by the Court. But the ground of this decision was, that, as the mortgagee was not bound by the subsequent settlement, he might have foreclosed the estate, and so have precluded the parties entitled under the settlement from all interest in the property ; but if the lands were sold, the surplus proceeds, after discharging the mort- (a) Else V. Osborn, 1 P. W. 387. (c) 2 Vern. 303. (6) Davies v. Weld, 1 Vern. 181 ; S. a 2 Cli. Ca. 144. 4^08 TRUSTEES TO PRESERVE [CH. XV, gage, would be so much gained to the uses of the settlement. Thus the principle acted upon was not that trustees to pre- serve contingent remainders might join in the destruction of them, but that the best mode of executing the trust, under the circumstances, was to substitute a sale for a foreclosure, and to lay out the surplus in lands to be settled to the same uses (a). Ck^f "• In the case of Basset v. Clapham {b) A., after marriage, made a voluntary settlement of lands to himself for life, remainder to trustees to preserve contingent remainders, remainder to the first and other sons in tail, remainder to himself in fee, and afterwards, becoming insolvent, executed a conveyance of the same premises to trustees for payment of his debts. The creditors filed a bill for the purpose of obtaining a sale, and prayed that the trustees might join in destroying the con- tingent remainders. Sir Joseph Jekyll at first refused the application, saying there was no precedent for such a direction; but afterwards, a precedent being produced to him, he granted the relief, "it being," he said, " at the suit of ered/itors, and for raising money for payment of debts." > Duty of Trustees It should also be mentioned as another duty of this class of &(.. ' trustees, that if an estate be limited to A. for life, remainder to trustees to preserve contingent remainders, remainder to the first and other sons of A. in tail, &c. should A. threaten to commit waste it would be the duty of the trustees to file a bill for an injunction for the benefit of the contingent remainder- men (c). Duties of II. Of the duties of trustees to preserve contingent re- the eldest son mainders after the eldest son has attained twenty-one. wt^-^ne*^ Upon the occurrence of this event the joining or not joining of the trustees in the destruction of the remainders ceases to Honorary be imperative, and becomes matter of discretion : they are said trustees. . . i j. to be honorary trustees (d), that is, bound m honour only to [a) See Barnard v. Large, 1 B. per Lord Hardwioke ; Garth v. CoU C. C. 536 ; Moody v. Walters, 16 ton, 2 Ves. 555, per eundem. Ves. 303. {d) See Barnard^. Large, 1 B.C. (6) 1 P. W. 358. C. 535 ; Biscoe v. Perkins, 1 Y. & (c) Perrot v. Perrot, 3 Atk. 95, B. 492 ; Woodhouse v. Hoskins, 3 Atk. 24. CH. XV.] CONTINGENT REMArNDERS. ^09 decide on tlie most proper and prudential course. However, the Court, where application was made to it, would always, as the general trustee in these cases, exercise the discretion vicariously for the trustees (a); and, where the trustees had abused the discretion, would, whatever might have been the ancient doctrine (6), hold them responsible as for a breach of trust (c). The only case in which the Court has directed the con- Settlement may . . , ... be remodelled on tmgent umitations to be destroyed, has been where the object marriage of of the parties was to re-settle the property upon the marriage ®^'^^^' ^°'^' of the eldest son(ci). Thus iu Winnington v. Foley, it was reported by the Master that the marriage of the eldest son was beneficial, and that it was necessary a new settlement should be made of the estate, and Lord Chancellor Parker said, " It would be greatly mischievous if the trustee should stand out, and not joia with the father and son in cutting off the old settlement and making a new one : it was plainly for the benefit of the family ; for by the intended settlement the son was to be but tenant for life, instead of tenant in tail; " and so decreed the trustee to join in the recovery (e). Where the Court has been called upon to disturb the settle- Will not be dis- ment, and for no other purpose than merely to disturb it, the good re^on."'^ application has of course been refused (/). And a fortiori the Court would not lend its sanction if the A fortiori not object of the parties were such as the Court ought positively culpable object. to discourage, as where the intention of defeating the settle- ment was to pay off the father's incumbrances at the expense of the child (g). " The reason of making the father tenant for niaety-nine years only," said Lord Hardwicke, " is in order to preserve the estate: it may likewise be the design of such (a) See Moody v. Walters, 16 Ves. C. C. 536, per Sir T. Sewell ; and see 307 ; JBiscoe v. Perkins, 1 V. & B. Symance v. Tattam, 1 Atk. 614 ; 492. Dormer v. JFortescue, 3 Atk. 129. (J) See Symance v. Tattam, 1 Atk. (e) 1 P. W. 636 ; and see Towns- 614. end v. Lawton, 2 P. W. 380. (c) Barnard v. Large, 1 B. C. C. (/) Barnard v. Large, 1 B. C. C. 535, per Sir T. Sewell. 534. ((?) J^retomv. CTarfeioM, 1 Eq. Ca. {g) Townsendr. Lawton, 2 7. W. Ab. 386 ; Townsend v. Lawton, Sel. 379 ; Woodhouse v. Hoshins, 3 Atk. Ch. Ca. 71 ; Barnard y. Large, 1 B. 22. 410 TRUSTEES TO PRESERVE [CH. XV. settlements to prevent the father's influence over the son when of age, if the father was seised of the freehold, to get the son to destroy the settlement. Here the intention is to pay the debts of the father. It is the very case which was intended to be prevented by the trust (a)." And Sir T. Sewell observed; " Trustees to preserve contingent remainders, who have the freehold in possession, are appointed for two purposes — one to preserve the estate against the father's power to destroy it, and the other to prevent the injury of any improper influence of the father over the son to induce him to join in destroying the entail created, in cases where he ought not to join(&). Trustee not ne- From the Conduct of the Court on these occasions, maybe able because the inferred the duties imposed upon the trustees. However, court would not ghould the trustees exercise their discretion where the Court have so acted. would not have interfered, it does not therefore foUow that they are liable as for a breach of trust : it is one thing for the Court to say the object of barring the entail is not so clearly beneficial as to justify the Court in overturning the settlement; it is another to hold the object so absolutely mischievous as to make the trustees responsible on the ground of a breach of duty(c). Distinction be- The preceding remarks have been general, without distin- tween settle- . . . , . , . -, -n ■, , ments and wills, guishmg between marriage settlements and wills ; but upon principle, perhaps, the two instruments ought not to be con- founded. The object of a marriage settlement is to preserve the estate in the family, and, were it not for the rule against perpetuities, the limitation to the eldest son would be not in tail, but for life, with remainder to his eldest son ; and if on the marriage of the eldest son, the trustee has joined in a new settlement for the purpose of further tying up the estate, he has undoubtedly acted in conformity with the original inten- tion. But in a will, as all the devisees are volunteers, and the trustee does not hold upon trust for the first tenant in tail more than for the successive remainder-men, if the trustee has (a) Woodhouse v. SCoskins, 3 Atk. (c) See Siscoe v. Perkins, 1 Y. & 24. B. 491 ; Woodhouse v. Hoskins, 3 (5) Barnard v. Large, 1 B. C. C. Atk. 24 ; Barnard v. Large, 1 B. 535. C. C. 535; Moody v. Walters, 16 Ves. 309. CH. XV.] CONTINGENT REMAINDEES. 4 11 enabled an eldest son to get possession of the fee simple at the expense of the remainder-man's interest, it might be argued he has overstepped his duty, and ought to answer for it as for a breach of trust. The distinction was thus observed upon by Sir T. Sewell, in the case of Barnard v. Large [a). " The trustee," he said, " though properly appointed to pre- serve contingent remainders only, is, in effect, a trustee for all vested as well as contingent remainders, and has been so considered ; but with respect to vested remainders if they have been to remote relations upon settlements, where the persons to whom they are limited are not the immediate objects of the parties, or where they stand in opposition to the first tenant in tail desiring a reasonable benefit consistent with the intention of the creators of the limitations, their pretensions have not been much considered : in a will all take as volun- teers, and are equally to be considered." But this distinction, though supported by the authority we have mentioned, was not noticed by Lord Eldon in the dis- cussion of Biscoe V. Perkins, the case of a devise (b). The law upon the duties of trustees to preserve contingent Effect of the . , , , . . . fines and re- remainders has recently undergone great alterations. coreries act upon By the 15th section of the Fines and Eecoveries Act (c) it *™th>genr'''''^ is declared, that every tenant in tail, whether in possession, remainders. remainder, contingency, or otherwise, shall have power to dis- pose of the lands entailed for an estate in fee simple absolute ; but by the 40th and two following sections, the disposition must be by deed inrolled, and must be made with the consent of the protector of the settlement. Under the old law, the key of the settlement was in the hands of the person who was owner of the freehold in posses- sion ; but now, by the 32d section, any settlor entailing lands may appoint any number of persons in esse, not exceeding three and not being aliens, to be protector of the settlement during the period therein specified, and may perpetuate the protectorship by means of a power of appointment of new protectors. If the settlor has not taken advantage of this permission, then, by the 22d section, if there be subsisting (a) 1 B. C. C. 535. (6) 1 V. & B. 485. (c) 3 & 4 Will. 4. c. 74. 413 PINES AND EECOVEEIES ACT. [CH. XV. under the settlement any estate for years determinable on the dropping of a live or lives, or any greater estate (not being an estate for years) prior to the estate tail, the owner of such prior estate, or of the first of such prior estates if more than one, or the person who would have been owner had he not disposed of his hiterest, is constituted the pro- tector of the settlement; but, by the 27th section, no dowress, hare trustee, heir, executor, or administrator shall be protector. However, by the 31st section, it is enacted, that " where, under a settlement made before the passing of the act, the person, who under the old law should have made the tenant to the prcecipe, shall be a bare trustee, such trustee during the continuance of the estate conferring the right to make the tenant to the prcecipe shall be the protector ; " but, by the 36th section, the protector of a settlement shall not be deemed to be a trustee in respect of his power of consent, and a Court of equity shall not control or interfere to restrain the exercise of his power of consent, nor treat his giving his con- sent as a breach of trust. Under the provisions, therefore, of this act, as regards set- tlements made since the passing of the act, a bare trustee cannot be protector in any case ; and, as regards settlements made before the passing of the act, though the trustee may become protector by the operation of the 31st section, he is not accountable to a Court of equity for the exercise of his discretion. 7 & 8 V. 0. 76. By the 7 & 8 Vict. c. 76, s. 8, it was declared that no estate should be created by way of contingent remainder; but that every estate which before that time would have taken effect as a contingent remainder, should take effect as an executory devise, or if in a deed, as an estate having the same properties as an executory devise, and that contingent remainders already created should not be defeated by the destruction or merger of the preceding estate. 8 & 9 V. c. 106. But this sweeping clause was repealed by 8 & 9 Vict. c. 106, s. 1 ; and in lieu thereof it was enacted (s. 8), that a contingent remainder should be deemed capable of taking effect, notwithstanding the determination by forfeiture, sur- render or merger of any preceding estate of freehold, in CH. XV.] FINES AND RECOVEEIES ACT. 413 the same manner in all respects as if snch determination had not happened. It is consequently now unnecessary to make use of any machinery for preserving contingent remainders from destruc- tion hy the forfeiture, surrender, or merger of the preceding estate. But limitations to trustees, during the lives of the tenants for life, are still frequently introduced in settlements for the purpose of creating a check upon the tenants for life, as, in cases of- waste by them, it would he the duty of the trustees to interfere as protectors of the remainder-men's interests. Moreover, in the absence of such limitations, questions of considerable difficulty- would arise in reference to the right of protectorship of an entailed estate, in cases where the estate which would otherwise confer the protectorship became extinguished by forfeiture or otherwise ; so that, on the whole, the insertion of such limitations is conceived to be the safer course. It must, of course, be borne in mind, in connection with this question, that contingent remainders are still liable to be defeated should the preceding life estate determine, in due course, before they become vested. And, in this point of view, the limitation of life estates adequate to support the contingent remainders is still a matter of considerable importance. CHAPTER XVL DUTIES or TRUSTEES FOR SALE. The subject of trusts for sale may be conveniently distri- buted into three branches : first, The general duties of trustees for sale ; secondly, The power of trustees to sign discharges for the purchase -money ; and, thirdly. The disability of trustees to become purchasers of the trust property. Trustees taay sell without applying to the court. Must consult the interest of the cestuia que trust. SECTION I. THE (JENEEAL BTrilES OE TBTISTEES FOE SALE. It need scarcely be observed that trustees for sale, whether expressly such, or only by implication, as persons enabled to seU by virtue of a charge {a), are authorised to enter into con- tracts without the previous sanction of the Court (&) ; but where a bUl has been filed for the execution of the trust, that attracts the jurisdiction of the Court, and the trustee would not be justified in proceeding to a sale out of Court (c). The trustee will remember that he is bound by his office to bring the estate to a sale under every possible advantage to his cestui que trust {d), and in the case of several cestuis que trust, with a fair and impartial attention to the interests of all the parties concerned (e). If the trustee, or those who act {a) Shaw v. Sorrer, 1 Keen, 559. (b) Earl of Bath v. Earl of Bradford, 2 Ves. 590, per Lord Hardwioke. (c) Walker v. Smalwood, Amb. 676 ; and see Raymond v. Wehb, LofFt, 66 ; Dray son v. Pocock, 4 Sim. 283 ; Culpepper v. Aston, 2 Ch. Ca. 116, 223 ; and see further, infra, pp. 523, 524. (d) Downes v. Orazebrook, 3 Mer. 208, per Lord Eldon ; and see Mat- thie V. Edwards, 2 CoU. 480. (e) Ord V. Noel, 5 Mad. 440, per Sir J. Leach ; and see Anon, case, 6 Mad. 11. OH. XVI. S. 1.] TEDSTEES FOE SALE." 415 by his authority, fail in reasonable diligence in the manage- ment of the sale, as if he contract under circumstances of haste and improvidence, or contrive to advance the interests of one party at the expense of another, he will be personally responsible for the loss to the suffering party (a); and the Court, however correct the conduct of the purchaser, will refuse at his instance to compel the specific performance of the agreement (6). In no case will the Court enforce the where sale is a specific performance of a contract where a breach of trust is ^■'^'"=1^ "^ *™st. involved (c). A trustee who takes no active part in the business cannot Each trustee rp^Tinn^i DIG for excuse himself by saying he had nothing to do with the the sale. conduct of the other to whom the management was confided; for where several trustees commit the entire administration of the trust to the hands of one, they are all equally responsible for the faithful discharge of their joint duty by that one whom they have substituted (d). The trustees will be allowed a reasonable time for disposing What time of the estate, and though the instrument creating the trust posing of the direct them to sell "with all convenient speed," that is no ^^''''*'^- more than is implied by law, and does not render an immediate sale imperative (e). On the other hand, if the trust be to sell " at such time and in such manner as the trustees shall think fit," this will not authorise the trustees to postpone the sale arbitrarily to an indefinite period ; at all events the trustees cannot by such postponement vary the relative rights of the tenant for life and remainder-men, and so interfere with the settlor's intention (/). {a) See Pechel v. Fowler, 2 Anst. {d) Oliver v. Court, 8 Price, 166, 550, per Lord Chief Baron Richards ; In (6) Ord V. Noel, 5 Mad. 440, per re Chertsey Market, 6 Price, 285, Sir J. Leaoh ; Turner v. Harvey, per eundem. Jac. 178, per Lord Eldon. ; Bridger (e) Buxton v. Buxton, 1 M, & C. V. Mice, 1 Jac. & "Walk. 74 ; Mart- 80 ; GarreU v. Nolle, 6 Sim. 504 ; loch V. Buller, 10 Ves. 292; and and see Fitzgerald v. Jervoise, 5 see Hill v. J^uchley, 17 Ves. 394 ; Mad. 25 ; Vickers v. Scott, 3 M. & White v. Cuddon, 8 CI. & Fin. 766. K. 500. (c) Wood y. Michardson, 4: Bea,Y. {/) See Walker Y. Shore, 19 Yes. 176, per Lord Langdale; Fuller y. 391; Hawkins v. Chappell, X Atk. Knight, 6 Beav. 205 ; Thompson v. 623. Blackstone, 6 Beav. 470. 416 TRUSTEES FOR SALE. [CH. XVI. S. 1, Trust to sell ■within a limited period. Trustees for sale may not grant leases. Trust for sale mil not in gene- ral authorise a mortgage. If the trust be " with all convenient speed and within five years" to sell the estate and apply the funds in payment of debts, &c., the proviso as to the five years is considered as directory only, and the trustees can sell and make a good title after the lapse of that period. The Court could scarcely im- pute to the settlor the intention that the sale at the end of the five years should be made by the Court, which would be the case if the power in the trustees were extinguished {a). In a case where the trustees had endeavoured for some time to sell, and not having succeeded, they agreed to execute a lease, the Court, on a bill filed by the trustees to compel specific performance, refused to decree the lease, as the trust for sale did not prima facie imply a power to grant leases (6). And so executors, although quasi trustees for sale, may, imder special circumstances, be justified in granting a lease (c) ; but such an act is not regularly within their province, and there- fore it is incumbent on the persons taking a lease from them to show that it was called for by the interests of the parties intitled to the property (d). A trust for sale, if there be nothing to negative the settlor's intention to convert the estate absolutely, will not authorise the trustees to execute a mortgage (e). But where an estate is devised to trustees, charged with debts, and subject thereto, upon trust for certain parties, so that a sale, though it may be re- quired, is not the testator's object, the trustees may, for the pur- pose of paying the debts, more properly mortgage than sell (/). "A power of sale out and out," observed Lord St. Leonards, "for a purpose, or with an object beyond the raising of a parti- cular charge, does not authorise a mortgage ; but where it is for raising a particular charge, and the estate is settled subject to that charge, then it may be proper, under the circumstances, to raise the money by mortgage, and the Court will support it (a) Pearce v. Gardner, 10 Hare, 287 ; and see Cuf v. Hall, 1 Jur. N. S. 973. (i) J^vans v. Jackson, 8 Sim. 217. (tf) Hackett v. M'Namara, LI. & G. Rep. t. Plunket, 283. {d) Keating v. Keating, LI. & G. Rep. «. Sugden, 133. (e) Haldenby v. Spofforth, 1 Beav. 390; StroughillY. Anstey, 1 De G., M. & G. 635; Page v. Cooper, 16 Beav. 396. (/) Ball V. Harris, 4 M. & Cr. 264. CH. XVI. S. 1.] TRUSTEES FOR SALE. 417 as a conditional sale, as something within the power, and as a proper mode of raising the money (a). A testator devised a estate to trustees upon trust to apply Where the power J.1 n ^r. ,. , , is left to the dis- the rents for fifteen years m payment of incumbrances charged oretion of the thereon, and if, by any reason whatever, in the opinion of the ohaeer^cannot'"'^' trustees a sale should become necessary, " they were autho- iiestion the ex- •^ "^ eroise oi the dis- rised to sell." The purchaser objected that the amount of cretion. the incumbrances would not justify a sale of the whole estate, but it was held that the power of sale depended on the opinion of the trustees, and the fact that they thought it necessary would be evidenced by the conveyance (6). A trust to raise money bv mortqaqe will not authorise a ^ t™^* '" """■*" •' •' ^ ^ . gage will not sale, though the latter may be more beneficial to the estate ; authorise a sale. and the Court itself has no jurisdiction to substitute a sale for a mortgage (c). A power to trustees to sell will not authorise a partition, A power of sale will not antho- though whether a power to sell and exchange will do so remains rise a partition. at present doubtful {d). In settlements of real estate a power of sale is usually given ^^^'^^ "^ ^^^^^ power of sale m to trustees, to be exercised with the consent of the tenant for settlements. life, with a direction to lay out the proceeds, with all conve- nient speed, in another purchase, and in the mean time to invest them upon some proper security. For determining upon what occasions the trustees would be justified in pro- ceeding to a sale, it will be proper to notice, in the words of Lord Eldon, the intention of the settlement in so framing the power : " The most improvident course that could be adopted," he said, "would be to intrust the tenant for life with the execution of the power ; for it is generally the interest of the tenant for life to convert the estate into money, either with a view to sell another estate to his family, or for the ordinary - purpose of getting a better income during his life. The mode of settlement, therefore, in such a case, is, that the trustees are to sell, but not without calling to their aid all fair attention to the nature of the subject and the convenience of the (a) Stroughill v. Anstey, 1 De G. (c) Drake v. Whitmore, 5 De Gr. M. & G. 645 ; Page v. Cooper, 16 & Sm. 619. Beav. 400. (d) BrasseyY. Chalmers, IQBeay. (b) Eendlesham v. Meux, 14 Sim. 223, 4 De G. M. & G. 528 ; Brad- 249. shaw v. Fane, 2 Jur. N. S. 247. ^^^ TEUSTEES FOR SALE. [CH. XVI. S. L property ; they are to sell, therefore, with the consent of the tenant for life ; and as he is a purchaser for the future family, the providence of the settlement requires that the fact of such consent and approbation should be evidenced by deed, &e. With that consent and approbation necessary to protect the interest of the tenant for life, the trustees, bound to a due attention to the interest of the children, have a power of selUng for such price as shall appear to them to be reasonable, that is, after they have with due diligence examined." His Lord- ship then proceeds to lay down the rule that ought to regulate the conduct of trustees in the following terms : — "The object of the sale," he said, " must be to invest the money in the purchase of another estate, to be settled to the same uses, and they are not to be satisfied with probability upon that, but it ought to be with reference to an object at that time supposed practicable, or, at least, this Court would expect some strong purpose of family prudence justifying the conversion, if it is likely to continue money " (a). Sir W. Grant is said to have concurred in the same sentiments (&), so that clearly the trustees would not be justified in selling to gratify the caprice or promote the exclusive interest of the tenant for life. It might happen that particular circumstances might call for an immediate sale, as where an extremely advantageous offer is made, or there is a prospect of great deterioration by abstaining from exercising the power ; but, generally speaking, the trustees ought not to Convert the estate without having another specific purchase in view, and then not for the mere purpose of conver- sion, but in the honest exercise of their discretion, for the benefit of all parties claiming under the settlement (c). The power of investing the proceeds upon some security in the mean time was not meant to authorise the continuance of the property as money, but only to meet the exigencies of particular circumstances, as where the trustees are disappointed of the contemplated new purchase, or the state of the title leads to necessary delay. (a) Mortlock v. Butter, 10 Yes. (c) See CowgUl v. Lord Oxman- 308, 309. town, 3 Y. & C. 369 ; Watts r. Gir- (J) Lord Mahon v. Earl Stan- dlestone, 6 Beav. 188 ; Marshall y. hope, cited 2 Sug. Pow. 512. Sladden, 4 De Gex & Sm. 468. CH. XVI. S. 1.] TEUSTEKS FOR SALE. 419 Trustees for sale at the request and by the direction of another party, to be testified by writing, &c., cannot obtain a decree for specific performance without first proving that the contract was entered into at such request and by such direction, and that such request and direction have, either before or since the coatract, been testified by the requisite writing (a). If an estate be vested in trustees upon trust for A. for life, Trust to sell after and then to sell, the trustees have no power to sell during the person. life of A., however beneficial it may be to the parties interested in the trust (6). Where an estate is vested in two or more trustees upon Trust for sale trust to raise a sum by sale or mortgage, and one of the trustees dies, the survivors or survivor may sell or mortgage, unless there be words in the settlement which expressly declare that the trust shall not be exercised by the survivors or survivor, for the execution of a trust is not treated on the footing of a power ; but the presumption is that, as the estate, so the discretionary part of the trust passes to the survivors or survivor (c). The objection is sometimes taken that, where there is a Thougii there be power of appointment of new trustees, and one of the trustees pob.rnewtrus- has died and a new trustee has not been substituted, the survivor *®''^' is incompetent to execute a valid conveyance. But the legal estate passes to the surviving joint tenant at law (d), and the trust, as we have seen, shifts to the survivor in equity (e) : and though a proviso for appointment of new trustees may certainly be so framed that the execution of the trust should, until a new trustee has been substituted, remain in suspense (/), yet the clause, as usually penned in settle- ments, is considered by the Courts to be merely of a directory character (g). In a mortgage to two persons where there is a power of sale to Power of sale in " them, their heirs and assigns," and one dies, the survivor may (a) Adams v. Broke, 1 T. & C. {d) Doe v. Godwin, 1 D. & R. Ch.. Ca. 627 ; see the decree at the 259. foot of the case, and see Blachwood (e) See supra, pp. 299, 300. v. Borrowes, 2 Conn. & Laws. 459. (/) See Foley v. Wontner, 2 Jao. (6) Johnstone ^.Baber, 8 Beav.233. & Walk. 246. (c) LaneY.Debenham,l'J 3\iT.W04:. {g) See supra, p. 301. S B 2 430 TRUSTEES FOE SALE. [CH. XVI. S. ]. sell (a) ; and in a mortgage to A. in fee, with a power of sale to him, "his heirs, administrators, executors and assigns,'' the administrator of the assign of A., though the legal estate of the lands be not in himself, but in a trustee for him under a con- vjeyance from the heir of the assign, is, together with such trustee, an assign within the meaning of the power, and can, therefore, sell (6). Eaising portions. In respect of sales and mortgages for raising portions, if a specific sum be given to A., payable on her age of twenty-one years, or day of marriage, the money cannot be raised until the interest has become vested ; for should the fund created by the money raised prove deficient, the portionist might still have recourse to the estate (c) : and so where the trust of a term was to raise 3000?. for younger children, payable at their respective ages of twenty-one years, or days of marriage, it was held the trustees were not authorised, when one chUd had attained his age of twenty-one years, to raise the entire sum ; for the infant children could not be deprived of the real security for their shares [d). But from the manifest convenience of raising the portions at once, it seems the Court will lean to that construction where any thing appears upon the instrument to contemplate such a course. Thus the trustees of a marriage settlement were directed, after the death of the husband, to levy and raise by mortgage, sale, or other disposi- tion of the estate, if there should be more than three children, the sum of 10,OOOZ. for their portions, the shares of the sons to be vested in, and payable to them at the age of twenty-one, and the shares of the daughters at twenty-one or marriage ; and it was provided that no mortgage should be made until some one of the portions should become payable ; and four of the children had attained twenty-one and three were under age ; the Vice- Chancellor said, " In this settlement there is a clause that no mortgage is to be made untU some one of the portions shall become payable. The whole 10,000Z. must therefore be raised at once. It is objected that some of the shares may become (a) HindY. Poole, 1 Kay ^ Johns. (c) Dickenson y, Dickenson, 3 B. 383. C. C. 19. (6) Salowaj/ -v. Strawbridffe,'! Kay (d) Wynter v. Bold, 1 S. & S. & Johns. 371. 507. CH. XVI. S. 1.] TRUSTEES TOR SALE. 421 diminished in amount : the answer to that is, that the Court considers the investment in the three per cent, consols as equivalent to payment. If there is any rise in the funds the children under age will have the benefit of it " (a). A trustee for sale wiU of course inform himself of the real Valuation of value of the property, and for that purpose, wUl, if it he necessary, employ some experienced person to furnish him with an estimate (b). And as a trustee, like any ordinary vendor, is hound to make Trustees must the purchaser a good title (c), it would be prudent, before y^j^ * ^°° proceeding to the execution of the trust, to take the opinion of some professional person whether a good title can be de- duced. Should the contract for sale be unconditional and the title prove bad, the purchaser in a suit for specific per- formance would be allowed his costs against the trustee {d), though the trustee, where his conduct was excusable, might charge them upon the trust estate under the head of expenses. If lands be devised to trustees in trust to sell for payment of Where the debts, and subject to that charge be given to A. for life without the timber can- impeachment of waste, with remainders over, the trustees must ^^rateiy not raise the money by a sale of timber, which would be a hard- ship on the tenant for life, but by a sale of part of the estate itself; and should they have improperly resorted to a fall of timber, the tenant for life would have a charge upon the lands to the amount of the proceeds (e). And, on the other hand, if Trustees should there be a sum given to be laid out in the purchase of an wood ratateln estate to be settled on A. for life without impeachment of ^*™,?f°^?;*^°^* ■■^ tor life without waste, with remainders over, the trustees would not be jus- impeachment of tified in purchasing a wood-estate, so that the tenant for life when put in possession could, by a fall of the timber, possess himself of a great part of the capital or corpus of the fund. But it is presumed that the trustees might purchase an estate where the timber standing formed no very considerable part (a) CHllihrandv. Goold, 5 Sim. 149. 343, 345, per Lord Eldon ; and see (6) See Oliver v. Court, 8 Price, M' Donald v. Hanson, 12 Ves. 277 ; 165 ; Campbell v. Walker, 5 Ves. Vend. & Ptiroli. 61, 11th Ed. 680 ; Conolly v. Parsons, 3 Ves. [d) Edwards v. Harvey, Coop. 628, note; Sugd. Vend. & Pureh. 40. 55, 11th Ed. (c) Bavies v. Westcomb, 2 Sim. (c) White V. Foljambe, 11 Ves. 425. 433 TEUSTEES FOE SALE. [CH. XVI. S. 1. Sale may be by private contract or by auction. Sale must not be delegated. If the sale be by auction, proper adver- tisements must be given. of the value, for it can hardly he supposed that the trustees were meant to purchase land without a tree upon it. The sale may he conducted hy puhlic auction or private contract, as the one or the other mode may he most advan- tageous, according to the circumstances of the case (a). And it was held under the old Insolvent Debtors' Act, 7 Geo. 4, c. 57, s. 20, directing a sale by auction, that the assignees of an insolvent might sell a real estate hy private contract, after an ineffectual attempt to dispose of it by auction (b). And so, under the subsequent Insolvent Debtors' Act (1 & 3 Vict. c. 110, s. 47, which directs the assignees of insolvents to sell "in such manner" as the major part, in value, of the creditors should direct), in a case where the creditors resolved that there should be a reserved bidding of 3251., and the assignees sold by auction for 310?., the clause was held to be merely directory, and that the deviation from the resolution of the creditors did not, therefore, vitiate the sale (c). The trustee cannot without responsibility delegate the general trust for sale (d) ; hut there seems to be no objection to the employment of agents by him, where such a course is conformable to the common usage of business, and the trustee acts as prudently for the cestm que trust as he would have done for himself (e). But an agent for sale must not be allowed to receive the purchase money. If the trustee think a sale by auction the more eligible mode, he must see that aU proper advertisements are made, and due notice given. It was ruled in an old case (/), that a cestui que trust could not, by alleging the want of these preliminary steps, obtain an injunction against the sale ; for, the trustee being personally responsible to the cestui que trust for any consequential damage, the Court could not regard it as a case of irreparable injury. But, in a more recent case, where a mortgage deed contained a power of sale, and the mortgagor. (a) Bee JEx parte Dunman, 2 Rose, 66 ; Hx parte Hurly, 2 D. & C. 631; Ex parte Ladbrohe, 1 Mont. & A. 384. (J) Mather v. Priestman, 9 Sim. 352. (e) Wright v. Maunder, 4 Beav. 512 ; and see Sidebotham v. Bar- rington, 4 Beav. 110. {d) Hardwick v. Mynd, 1 Anst. 109. (e) Ex parte Belchier, Amb. 218; and see Ord v. Noel, 5 Mad. 438. (f)Pechal-7. Fowler, 2 Anst. 549. Ck. XVI. S. 1.] TRUSTEES FOE SALE. 433 alleging that due notice had not been given, applied for an injunction agaiast the sale, though Sir John Leach in the first instance, on the assumption that the power was vested in the mortgagee (a), refused the motion, considering that, as the plaintiff might give notice to the purchaser of the insti- tution of the suit, it was better there should be an additional party to the cause than a possible injury be risked to the mortgagee by the interruption of the sale, yet it afterwards appearing that the power was limited to a trustee, and that the mortgagor had not been apprised of the intended sale, his Honour granted the injunction. "It was the duty," he said, "of the trustee to attend equally to the interests of both cestuis que trust, and to apprise both of the intention of selling, that each might take the means to procure an advantageous sale " (6). A trustee may sell subject to any reasonable conditions of Conditions of sale (c), but would not be justified in clogging the property ^ ^' with restrictions that were evidently uncalled for by the state of the title (d). It is notunusual in penning a trust for sale to autho- rise the trustees expressly to insert special conditions of sale; but still this would be no warrant for the introduction of stipu- lations plainly a breach of trust as not rendered necessary by the state of the title, and calculated to damp the success of the sale. There seems to be no rule to prevent trustees from selling SeUing in lots. in lots, should the auctioneer or other experienced person recommend it as the most advisable course (e). It is certain that assignees of a bankrupt cannot buy in at Buying in. the auction without the authority of the creditors. "Where the assignees had put up the estate in two lots, and bought them in, and afterwards upon a re-sale there was a gain upon one lot and a loss upon the other, the balance upon the whole being in favour of the estate, Lord Eldon compelled the assignees to account for the diminution of price on the one lot, and would not allow them to set off the increase of price on the other (/). (a) As to restraining a mortgagee [d) Wilkins v. Fry, 2 Rose, 375 ; from selling, see JfaWAie V. -B(Zioo>'£?s, S. C. 1 Mer. 268. 2 Coll. 465, S. C. on appeal nomine (e) See Co. Lit. 113 a ; Ord v. Jones V. Matthie, 11 Jurist, 504. Noel, 5 Mad. 438 ; and see Ex parte (6) Anon, case, 6 Mad. 10 ; Blen- Lewis, 1 Gl. & J. 69. nerhasset v. Day, 2 B. & B. 133. {/) JEx parte Lewis, 1 Gl. & J. (c) Hobson v. Bell, 2 Beav. 17. 69 ; and see Ex parte Buxton, id. 424 TRUSTEES FOR SALE. [CH. XVI. S. 1. Auction duty. Hardship. Letting into Of " granting " in the operative part of the con- veyance. It may be thought perhaps that assignees acting tinder a statute have less discretionary power than belongs to ordinary trustees ; but in Taylor v. Tabrum (a) the same principle was applied to trustees in the proper sense of the word. An estate had been devised upon trust to sell, and soon after the testator's death, the trustees put up the property to auction, and 6000i. was bid, but one of the parties interested desiring it might not be sold under 7000L, the property was bought in. Four or five years afterwards they sold it for 3600Z., and they were held responsible for the consequent loss to the estate. It was said by Sir J. Leach, that, " if the sale be made with all the circumstances of caution which a provident owner would have applied in the case of his own property, it could not be a breach of trust that the estate did not produce a full price, for the very nature of an auction was that the adequacy of price should be submitted to the chance of competition " (6). Trustees for sale under an act of parliament are chargeable with auction duty in the same manner as any other vendor (c). The Court will not enforce a contract against trustees where it presses with extreme hardship. Thus, where trustees, not being apprised of the real amount of the incumbrances upon an estate, entered into a personal engagement with the purchaser to clear off aU incumbrances, the Court would not compel the trustees to fulfil their contract, but left the parties to law {d), and the bill was dismissed without costs (e). The purchaser, after the contract, should not be let into possession of the estate untU the completion of the sale by payment of the full purchase money (/). In drawing the conveyance, the word " grant " being commonly (though erroneously) supposed to contain a war- ranty (g), the trustee, instead of " granting, bargaining, selling, and releasing," is made to " bargain, sell, and release," with 355 ; & parte Baldock, 2 D. & C. 60 ; Ex parte Oover, 1 De Gex, 349. (a) 6 Sim. 281. (5) Ordy. Noel, 5 Mad. 440 ; but see Conolly v. Parsons, 3 Ves. 628, note. (c) King V. Winstanley, 8 Price, 180. [d) Wedgwood v. Adams, 6 Bear. 600. (e) 8 Beav. 103. (/) Oliver v. Court, 8 Price, 166, per Chief Baron Richards ; see Browell v. Reed, 1 Hare, 434. {g) See Co. Lit. 384 a, note (1), Hargrave and Butler's Ed. ; and see 8 & 9 V. c. 106, s. 4. CH. XVI. S. l.J TRUSTEES FOR SALE. 435 the omission of the word "grant : " and it is usual, in order to secure the trustees from the possibility of parting with any interest to which they may he entitled beneficially, to insert in the operative part of the instrument the words " according to their estate and interest as such trustees." A trustee cannot be compelled to enter into any other cove- Covenants. nant for title than against incumbrances by his own acts (a). But it would be prudent in trustees to apprise the public that they sell in that character, that the purchaser may not say he was led to suppose from the advertisements of sale, that the vendors were the beneficial proprietors, that the contract must, therefore, draw with it the usual incidents, and that the pur- chaser ought to have the benefit of the ordinary covenants. Mortgagees with a power of sale are regarded as trustees, and Mortgagees' cotb- covenant only against their own acts (6). To the extent of their mortgage money they are beneficially interested, but not as owners of the estate, but only as incumbrancers entitled to a charge. It was laid down by Lord Eldon, that assignees of bankrupts Attested copies were bound, in case they could not deliver up the title deeds, to fo^ prod™otioii. furnish the purchaser with attested copies and to covenant for the production of the originals, the covenant to be confined to the period during which the assignees should continue in office (c). And trustees, where they retain the title deeds, are equally required to give attested copies, and to covenant for the production of the documents in the common form, with a (a) White v. Foljamhe, 11 Ves. new lease to contain a recital of tte 345, per Lord Eldon ; Onslow v. old lease, and of the declaration of Lord Londeshorough, 10 Hare, 74, the Court, in obedience to which the per Cur. ; Worley v. Frampton, 5 trustees purport to demise ; Copper Hare, 560; Stephens y. Sotham, 1 Mining Company y. Seach, 13Beav. Xay & Johns. 571 ; and Page v. 478 ; Hodges v, Blagrave, 18 Beav. Broom, 3 Beav. 36. This is car- 405. So, if A. agrees to grant a ried to such an extent that, where a lease to B. and B. dies, A. can corn- lessor grants a lease with a covenant pel the executors of B. to accept the for perpetual renewal, devisees in lease, but the lease is so framed that trust of the lessor, though bound to the executors of B. are guarded grant a new lease, are not bound to against all personal liability ; Phil- enter into a similar covenant. In lips v. Fverard, 5 Sim. 102 ; these cases the Court has, in order Stephens y. Hotham, 1 Kay & Johns, to secure the lessee without making 571°; and see Staines y. Morris, 1 V. the trustees personally liable, de- & B. 12. Glared the right of the lessee to a (6) Vend, and Pur. p. 61, 11th Ed. perpetual renewal, and directed the (c) Ex parte Stuart, 2 Rose, 215. 426 TRUSTEES FOR SALE. [CH. XVI. S. 1. proviso, that on lawfully parting with the deeds, and obtaiaing a similar covenant from the person to whom they are delivered, the covenant shall be void. Sale of lease- In a Sale of leaseholds by trustees who take under a settle- ment they cannot, in any case, require from a purchaser a covenant of indemnity against a breach of the covenants ; for, as regards themselves, they took the lease by assignment, and therefore cease to be liable on the assignment over ; and, as regards a covenant for the protection of the settlor, he has become a stranger by the execution of the trust deed, and the trustees could neither, in the absence of an express stipulation, insist upon a benefit to one with whom there is no existing privity, nor as they are bound to make the sale the most bene- ficial to the eestuis que trust, could, they insert a condition in favour of a stranger, which might operate as a discouragement to purchasers (a). But the executor of a lessee upon assigning the term would be entitled to such a covenant, his testator's estate being liable under the original covenants of his testator. Indeed an executor is, in such a case, entitled prima facie not merely to the vendee's covenant to indemnify, but also where the estate is in course of distribution to have a portion of the estate itself reserved for the purpose of forming an in- demnity fund (6), though not so where the risk is inconsider- able (c). But of course there can be no claim to an indemnity where the testator's estate is not liable, as where the testator himself was not a lessee, but the assignee of a lease who had entered into no covenants {d). And if the executor has assented to the bequest unconditionally, he has waived his claim to indemnity (e). Assignment of a In the assignment of a chose in action, the trustee may be chose in action, 'jj.* p., i .,i j required to give a power of attorney to receive the money and to sue in his name, but this should be accompanied with a (a) See Wilkins v. Fry, 1 Mer. (d) Oarratt v. LancefieU, 2 Jur. 244. N. S. 177. N. B. It may be collected (6) Cochrane v. Rohinson, 11 Sim. from the judgment that the ordinary 378 ; Fletcher v. Stevenson, 3 Hare, covenant to indemnify had not been 360; DobsonY. Carpenter, 12 Bea- entered into by the testator on the van ; Hichling v. Boyer, 3 Mao. & occasion of the assignment to him. Gor. 635. (e) Shadbolt v. Woodfall, 2 CoU. (c) Dean v. Allen, 20 Beav. 1. 30. CH. XVI. S. 1.] TRUSTEES FOR SALE. 427 proviso, that no action or suit shall be commenced without the assignor's consent, or else tendering a sufficient indemnity (a). As in a mortgage accompanied with a power of sale, the SaleT^ymort- mortgagee, who is a quasi trustee, can under the power make a title to the purchaser without the concurrence of the mort- gagor (&), a clause in the mortgage deed that the mortgagor shall, if required, be a party to the conveyance, is considered a contract for the exclusive benefit of the mortgagee, and not as imposing the necessity of procuring the mortgagor's consent to the sale (c). If the trustees have a power of signing discharges for the Whether the , 1 , ■ . 1 . .-i cestuis que trust purcnase money, the cestuis que trust need not necessarily should be be made parties to the conveyance (cQ ; but, as trustees are P*'^'^^- bound to covenant against their own incumbrances only, the cestuis que trust, where it is practicable, are usually made parties to the deed, that the purchaser may have the benefit of their covenants for title according to the extent of their respective interests (e). In sales, however, under the direction of the Court of Chancery, it is the rule not to make the cestuis que trust parties ; for this would involve the necessity of pre- viously inquiring who were beneficially interested, and in what proportions, whereas it is a common proceeding of the Court to order a sale in the first instance, and leave the rights of the respective parties to be settled by a subsequent adjustment (/). Where trustees sell by auction, the auctioneer, until the sale Deposit money, is cpmpleted, is the agent of both vendor and purchaser ; but after completion of the purchase he is the agent of the vendor only, and the trustees will be answerable if by any unnecessary delay the deposit be lost (g). * Trustees for sale and payment of debts are of course bound Trustees boupd at any time to answer inquiries by the author of the trust, or q,uriea. (a) Sx parte Little, 3 Moll. 67. (e) See In re Zondon Bridge Acts, (h) Corder v. Morgan, 18 Ves. 13 Sim. 176. 344; Clayv. Sharpe, cited id. 346, (/) Waheman n. Duchess of Rut- note i^'); Alexanders. Croshie,&lT. land, 3 Ves. 233, 504; affirmed in Eq. Rep. 518. D. P. 8 B. P. C. 145; Colston y. (c) Corder v. Morgan, 18 Ves. Lilley, 3 May, 1S55, V. C. Stuart at 347, per Sir W. Grant. chambers ; and see Loyd v. Griffith, [d) See Binks v. Lord Rohehy, 2 3 Atk. 264. Mad. 227. {g) Edmonds v. Feake,^ Beav. 239. 428 TRUSTEES RECEIPTS. [CH. XVI. S. 2. Custody of vouchers. Land discharged when money the persons claiming under him, as to what estates have been sold and what debts have been paid (a). When the affairs of the trust have been finally settled, the trustees wiU be entitled to the possession of the vouchers as their discharge to the cestui que trust; but the cestui que trust will have a right to the inspection of them (6). But not to copies without paying for them. The land is discharged so soon as the fund has been actually raised, even though the proceeds may be misapplied, and not reach their proper destination. The remedy of the parties aggrieved is against the trustees personally, and they have no lien upon the estate (c). SECTION 11. Trust for sale for payment of debts. THE POWEE, OF TRUSTEES TO SIGN DISCHAEGES FOE THE PtTECHASB MOITET. The power of trustees to sign discharges for the purchase money resolves itself into two questions: — First. Are the trus- tees justified in making the sale ? and. Secondly. Supposing the sale- itself to be proper, is the purchaser bound to see to the application of his purchase money ? First. Are the trustees justified in proceeding to the sale ? If a testator direct a sale of his real estate for payment of debts on the insufficiency of the personal assets, the trustee ought not of course to dispose of the realty, until it appears the personal fund is not equal to meet the demands of the creditors. But the point we have here to consider is, how will the purchaser be affected, and, as he has no means of investigg,ting the accounts, it is held he is not to be prejudiced, should it be proved that eventually the personal is sufficient (d). All that could reasonably, and which perhaps would be required (a) Clarke v. Earl of Ormonde, Jac. 120, per Lord Eldon. {b) lb. per eundem. (e) Anon. 1 Salk. 153 ; Juxon v. Brian, Pr. Ch. 143 ; Carter v. Bar- nardiston, 1 P. W. 505, see 518 ; Hutchinson v. Massareene, 2 B. & B. 49 ; and see Omerod v. Hard- man, 5 Ves. 736 ; Bunch v. Kent, 1 Vera. 260 ; Culpepper v. Aston, 2 Ch. Ca. 115 ; Harrison v. Cage, 2 Vera. 85. (d) Culpepper v. Aston, 2 Ch. Ca. 115, per Lord Nottingham; Keane V. Bobarts, 4 Med. 356, per Sir J. Leach ; Co. Lit. 290 b, note by Butler, sect. 14 ; Shaw v. Borrer, 1 Eeen, 559; but see 'Fearne's P. W. 121. CH. XVI. s. 2.] trustees' receii'ts. 439 of him, is, that he should apply to the executor, where the trustee does not sustain that character, and ask if the necessity of the sale has arisen {a). However, a purchaser is prevented from dealing with the trustee out of Court, where a suit has been instituted for the administration of the estate (&), provided at least the suit be bond fide, and not collusive (c). But if Power of sale on a testator give a power of sale only to his trustees on the personal estate. insufficiency of the personal estate, then the purchaser must at his peril ascertain that the power can be exercised (d). The difference between a trust and a power is this. In the former case, the trustees, having the legal estate, can transfer it to the purchaser by their ownership ; and equity, as the purchaser had no opportunity of discovering the true state of things, will not impeach his title. But where there is a power merely, the insufficiency of the personal estate is a condition precedent ; and if it did not pre-exist in fact, the power never arose, and the purchaser took nothing by the pretended execution of it. Nor is a purchaser bound to ascertain whether more is Case of selling offered for sale than is sufficient to answer the purposes of ^^^ requires^ the trust ; for how is the purchaser to know what exact sum is wanted, without investigating the accounts ? Besides, the trustees are entitled, as incident to their office, to raise their costs and expenses (e). But where a testator directed, on the insufficiency of his pierce v. Soott. personal estate, a sale in the first instance of A., and should that not answer the purpose, then of B., and the trustees, fifteen years after the testator's death, contracted for the sale of B. first, and then filed a biU for specific iierformance, alleging the existence of debts, and that A. was already in mortgage, or otherwise charged to the full value, the Court, considering it was unlikely that creditors would have lain by for so many years, and that the non-existence of debts might therefore be suspected, and that what was ground for suspicion might be deemed notice to a purchaser, determined against the title (/). (a) See Shaw Y.Borrer,ubi supra. (d) Culpepper y. Aston, 2 Ch. Ca.. (b) Culpepper v. Aston, 2 Ch. Ca. 221 ; Bike v. Bicks, Cr. Car. 335 ; 116, 223, per Lord Nottingham ; S. C. Sir W. Jones, 327. and see Walker v. Smallwood, Amb. («) Spalding v. Shalmer, 1 Vern. 676; and supra, p. 328. 301. (e) Culpepper v. Aston, 2 Ch. Ca. (/) Pierce v. Scott, 1 Y. & C. 257. 116, per Lord Nottingham. 430 TRUSTEES EECEIPT3. [CH. XVI. S. 2. Sale of estate charged with legacies not yet Principle of re- quiring a pur- chaser to see to the application of his purchase money. The rule con- trolled by the intention of the settlor. Either expressed. If an estate be devised, charged with legacies payable at twenty-one, the devisee cannot sell the land discharged of the legacies until the time of payment has arrived. The execution of the trust is uncalled for tiU that period, and it cannot be anticipated for the convenience of other parties. Should the legacies be raised, and invested by anticipation, the funds might afterwards become deteriorated, and the legatees be defrauded of the bounty intended them (a). But where a term was created, and the trustees were directed to raise, if there should be one child, 6000J. ; if two, 8000?. ; if three or more, 10,000?.; and it was provided that no mortgage should be made until some one of the said portions should become payable ; there being seven children, four of whom were of age, and three minors, it was held that the trustees might raise the whole 10,000?. (b) ^ Secondly. Supposing the sale to be proper, is the purchaser bound to see to the application of his purchase money ? It is a rule requiring no elucidation, that if a person have in his hands money or other property to which another person is entitled, he cannot discharge himself from liability but by payment or transfer to the rightful owner. If an estate be vested in A. upon trust to sell and divide the proceeds between B. and C, in a court of law the absolute ownership is in A., and his receipt, therefore, will discharge the purchaser; but in equity B. and C, the cestuis que trust, are the true and beneficial proprietors, and A. is merely the instrument for the execution of the settlor's purpose. The receipt, therefore, to be effectual, must be signed by B. and C. (c) ; and the power of the vendor to sign a discharge for the purchase money is a question, not of conveyance, but of title (d). Such is the prima facie rule in trusts ; but in every instance it is liable to be controlled and defeated by an intention to the contrary collected from the instrument creating the trust, whether that intention be expressed or implied. The former is the case, if the settlor direct in express terms (a) Dickenson v. Dickenson, 3 B. C. C. 19. (6) Gillihrand v. Goold, 5 Sim, 149. (e) See Weatherhy v. St. Cfiorgio, 2 Hare, 624. (d) Forbes v. Peacock, 12 Sim, 521. CH. XVI. S. 2.] TEUSTEES' RECEIPTS. 431 that the receipts of A., the trustee, shall discharge the pur- chaser from seeing to the application of the purchase money ; for B. and C. cannot at the same moment claim under and contradict the instrument — they cannot avail themselves of the sale, and reject the proviso affecting the receipt, and the words in the ordinary power of attorney, viz. " to sign discharges for the money to he recovered under the power, and to do all other acts as the principal might have done," have been held to carry such a direction (a) where not controlled by a sub- sequent receipt clause tending to negative that intent (6). In what cases the lite intention will be implied, has never Or implied. been satisfactorily ascertained. However, two principles Whether trnst to appear to be the basis upon which most of the distinctions ahie from a taken by the Courts have been founded. " ^^^^' 1. In the creation of a trust for immediate sale, it is clearly Direction to sell TIT T -1 T .-i-iTi !• 1 1 implies power in impued, that a legal and equitable discharge for the purchase some one to sign money shall be signed hy some one at the time of the sale, tiieof^aet* There can be no conveyance of the estate without payment of the money, and there can be no such payment without a com- plete discharge. Should the settlor appear to have contem- plated a sale at a time when the cestuis que trust, or some of them, were either not in existence, or not of capacity to execute legal acts, the intention must be presumed that the receipts of the trustees should be a release to the purchaser. Thus, where a deed was executed in India for payment of Balfour v. Wei- debts, with a proviso that creditors in India should be allowed six months to come in, and those in Europe eighteen months, and if any were under disability, they should be further allowed the like periods from the time the disability ceased. Sir W. Grant said, " The deed very clearly confers an immediate power of sale for a purpose that cannot be immediately de- fined. It is impossible to contend that the trustees might not have sold the whole property at any time they thought fit after the execution of the deed, and yet it could not be ascertained, until the end of eighteen months, who were the persons among whom the produce of the sale was to be distributed. If the (a) Sinks Y. Lord Roheby, 2 Mad. (5) Brasier v. Hudson, 9 Sim. 1. 227, see 238, 239. 432 TEUSTEES' RECEIPTS. [CH. XVI. S. 3. sale might take place at a time when the distribution could not possibly be made, it must have been intended that the trustees should of themselves be able to give a discharge for the produce, for the money could not be paid to any other person than the trustees " (a). Case of infancy. So where A. devised certain lands to his children, "the same to be sold when the executors and trustees of his wiU should see proper, and the purchase-money to be equally and severally divided amongst his above-named children," Sir J. Leach said, " It is plain the testator intended that the trustees should have an immediate power of sale. Some of the children were infants, and not capable of signing receipts. I must therefore infer, that the testator meant to give to the trustees the power to sign receipts, being an authority necessary for the execution of his declared purpose " (6). As to cestuis que As to cestuis que trust who, after the date of the instrument, trtist out of the jurisdiction. go out of the jurisdiction the general rule does not apply, for it cannot be said that the settlor meant the trustees to sign receipts for them, the presumption being the other way ; but though a power of signing receipts cannot in this case be im- plied, it may be contended that the rule of equity obUging a purchaser to see to the application of his purchase-money, ope- rates only where the cestui que trust is accessible to receive the money, and that when he is abroad the purchaser may pay to the trustee, and need hot look to the application. Of this opinion appears to be Lord St. Leonards, who remarks, " The receipt of the trustee would certainly have been a sufficient discharge for the shares of the infant, and also, it is conceived, for the share of the cestui que trust who was abroad. It would be difficult to maintain that the absence of a cestui que trust in a foreign country should, in a case of this nature, impede the sale of the estate " (c). Where trust is 2. If a Sale be directed, and the proceeds are not simply to purchase-money ^^ P^^*^ ^^^^ ^^ certain parties, but there is a special trust it^s implied that annexed, the presumption must be that the settlor meant to apply it. (a) Balfour v. Welland, 16 Ves. and see Breedon v. Breedon, 1 E. & 151, see 156. M. 413 ; Cuthbert v. Baker, Vend. (6) Sowarshy v. Lacy, 4 Mad. 142; & Puroh. 842, 843, 11th Ed". Lavender v. Stanton, 6 Mad. 46; (c) Vend. & Purch. 844, 11th Ed". CH. XVI. s. 3.] trustees' eeceipts. 433 confide the execution of the trust to the hands of the trustee, and not of the purchaser (a). Thus, Lord Thurlow, where a settlement contained a power Power of sale and of sale, and it was directed that the trustees should receive the newpurciiase &o. purchase-money, and lay it out on a new purchase to the like uses, and till that was done should invest it in government funds, observed, " As to the power which the trustees have of giving a discharge, it is true, that when land is to be sold, and a particular debt is to be paid with it, the purchaser is bound to see to the application of the purchase-money. But in cases where the application is to a payment of debts generally, or to a general laying out of the money, I know of no case which lays down, or any reasoning in any case which goes the length of saying, that a purchaser is so bound" (6). So where a trust Trust to pay was created for payment of debts. Sir W. Grant, in holding the ment'meant to be receipt of the trustees to be a release to the purchaser, said, ""^^"^ f^^ control ■^ ■■■ ' ' of the trustee. "it was evident from the whole tenor of the deed that the parties contemplated and intended that all the money to be produced by the sale should come into the hands of the trustees ; should be managed by them until distribution ; should be placed out in their names ; and should by them be ultimately distributed " (c). And agaiu, where a person directed his exe- Trust to lay out cutors to convert all his real and personal estate into money, and lend the same upon good security upon trust to pay the interest to his wife for life, with remainder over. Sir J. Leach held, " that the authority given by the testator to lay out and invest the money was an authority to do all acts essential to (3) See Qlynn v. Locke, 2 Drur. struction ,of a will whick gave to the & War. 11 ; Ford v. Ryan, 4 Ir. tenants for life the like powers of Ch. Eep. 342. selling and exchanging as were con- (6) Doran v. Wiltshire, 3 Sw. tained in a settlement referred to, 699. In Cox Y. Cox, 1 Kay & John, and in which were, not only powers 251, Vice-Chancellor Wood held, of sale and exchange, hut also a that powers of sale and exchange do power of signing receipts, and the not imply a power of signing receipts; Vice-Chancellor was of opinion that that the latter power was by no the powers of sale and exchange means one inserted as of course in only, without the power of signing legal instruments, but often ex- receipts, were incorporated by refer- cluded, and when excluded was ence. never implied, except under very (c) Balfour v. Welland, 16 Ves. special circumstances. The question 611, see 157. in that case arose upon the con- and iuTest. 434 TRUSTEES EECEIPTS. [oh, XVI. S. 2, Mr. Booth's opinion. Trust to pay debts. the trust, and necessarily . tlierefore to give discharges to the borrowers of the money " {a). And an opinion of Mr. Booth shows the practice of the profession, even in his time, to have been in conformity with these doctrines. A testator had directed his trustees to sell and invest the proceeds upon the trusts thereinafter mentioned, and then gave his wife an an* nuity of 50Z. a year, for her life, to be paid out of the proceeds, and, subject thereto, gave the fund to his son ; but in case of his death under twenty-one, to the person entitled to his Taunton lands. Mr. Booth wrote, " I am of opinion, that aU that wiU be incumbent on the purchaser to see done will be to see that the trustees invest the purchase -money, in their names^ in some of the public stocks or funds, or on government secu- rities, and in such case the purchaser will not be answerable for any misapplication, after such investment of the money, of any monies which may arise by the dividends or interest, or by any disposition of such funds, stocks, or securities, it not being possible that the testator- should expect from any purchaser any further degree of care or circumspection than during the time that the transaction for the purchase was carrying on, and therefore the testator must be supposed to place his sole confidence in the trustees, and this is the settled practice in these cases, and I have often advised so much, and no more, to be done." And in this opinion Mr. Wilbraham also concurred (6). To the principle under consideration must be referred the well-known rule, that a purchaser is not bound to see to the application of his money where the trust is for payment of debts generally; for to ascertain who are the creditors, and what is the amount of their respective claims, is matter of trust involving long and intricate accounts, and requiring the production of vouchers, which the purchaser would have no right to require (c). So if the trust be for payment of a par- (o) WoodY.HarmanjdHlai. 368; Locke v. Zomas, 5 De Gex & Sm. 326. (6) 2 Cas. & Op. 114. (c) Forbes v. Peacock, 11 Sim. 152; and see S. C. 12 Sim. 528; 1 Phill. 717 ; Stroughill v. Anstey, 1 De G., M. & G. 635 ; Bowling v. Hudson, 17 Beav. 248 ; Culpepper V. Aston, 2 Ch. Ca. 223 ; Wathins V. Cheek, 2 S. & S. 205, per Sir J. Leach ; Anon. Mose. 96 ; Hardwick Y. Mynd, 1 Anst. 109 ; Johnson v. Kennett, 3 M. & K. 630, per Lord Lyndhurst; Rogers v. Skillicorne, Amb. 189, per Lord Hardwicke; Walker v. Smalwood, id. 677, per CH. XVI. s. 2.] TRUSTEES EECEIPTS. 435 ticular debt named, and of the testator's other debts (a). So if the trust be for payment of debts and He^acies,. the pur- chaser is equally protected ; for as the discharge of the debts must precede that of the legacies, and the purchaser is not called upon to mix himself up with the settlement of the debts, he is necessarily absolved from all liabilities in respect of the legacies (&). But where the trust is for payment of particular Scheduled debts or scheduled debts only (c), or of legacies only {d), then, as there "^ ^^'^ is no trust to be executed requiring time or discretion, but the purchase-money is simply to be distributed amongst cer- tain parties, there is no reason why the purchaser should not, under the general rule, be expected to see that the purchase- money finds its way into the proper channel. And the purchaser, where legacies only are charged, is still bound to see to the application of his money, though by a late act (e) the Late Assets Act. real estate of all persons deceased siuce the 29th of August, 1833, is liable (in the hands of the heir or devisee, but not by Lord Camden ; Barher v. Duke of Devonshire, 3 Mer. 310 ; Abbot v. Gibbs, 1 Ec[. Ca. Ab. 358 ; Binks v. Roheby, 2 Mad. 238, per Sir T. Plu- mer ; Dunch v. Kent, 1 Vern. 260, admitted; Elliot y. Merryman,'Rwm. 78; Smith v. Guyon, 1 B. C. C. 186, and cases cited, ib. note ; Ithell V. Beane, 1 Ves. 215,^srLord Hard- wicke; Lloyd y. Baldwin, ib. 173, per eundem ; Dolton v. Hewen, 6 Mad. 9 ; Mx parte Turner, 9 Mod. 418, per Lord Hardwioke ; Oosling V. Carter, 1 Coll. 644; Eland v. Eland, 1 Beav. 235 ; -S. C. 4 M. & Cr. 420 ; Jb«es v. Pn'ee, 11 Sim. 557; and see Currer v. Walkley, 2 Dick. 649, corrected, .from Eeg. Lib. 3 Vend, and Purch. 168, lOtb ed. (a) HobinsonY. Lowater, 17 Beav. 592 ; 5 De Gex, Mac. & Gord. 272. (6) Rogers v. Skillicorne, Amb. 188 ; Smith v. Gmjon, 1 B. C. C. 186 ; Jebb v. Abbott, and Beynon v. GoUms, cited Co. Lit. 290 b, note by Butler ; Williamson v. Curtis, 3 B. C. C. 96 ; Johnson v. Kennett, 3 M. & K. 630, per Lord Lyndhurst ; 6 Ves. 634, note (a); WathinsY. Cheek, 2 S. & S. 205, per Sir J. Leach; Eland y. Eland, 1 Beav. 235 ; S. C. 4 M. & Cr. 420 ; Page v. Adam, 4 Beav. 269; Forbes v. Peacock, 12 Sim. 528; 1 Phill. 717. (c) Dorany. Wiltshire, 3 Sw. 701, per Lord Thurlow ; Smith v. Guyon, 1 B. C. C. 186, per eundem, and cases cited, ib. note ; Rogers v. Skil- licorne, Amb. 189, per Lord Hard- wicke ; Sumble v. Bill, 1 Eq. Ca. Ab. 359, per Sir N. Wrigbt ; Anon. Mose. 96 ; Spalding v. Shalmer, 1 Vern. 303, per Lord North; Abbot V. Gibbs, 1 Eq. Ca. Ab. 358 ; Elliot V. Merryman, Barn. 81, per Sir J. Jekyll ; Binks v. Rokeby, 2 Mad. 238, per Sir T. Plumer; Ithell v. Beane, 1 Ves. 215, per Lord Hard- wicke ; Lloyd v. Baldwin, 1 Ves. 173, per eundem; and see Dunch v. Kent, 1 Vern. 260; Culpepper v. Aston, 2 Ch. Ca. 223. {d) Johnson v. Kennett, 3 M. & K. 630, per Lord Lyndhurst ; Horn V. Horn, 2 S. & S. 448. (e) 3 & 4 "W. 4. e. 104. r F 2 436 trustees' receipts. [ch. xvi. s. 2. way of lien to biiid purchasers) to the payment of debts generally, whether by specialty or simple contract (a). And Where, notwith- even where the estate is subjected by the testator to a trust for of debts, the pur- payment of debts generally, the purchaser will not be indem- to thTappitatfon nified by the receipt of the trustee if there be any collusion of his money. between them (b) ; or if the purchaser have notice from the intrinsic evidence of the transaction that the purchase-money is intended to be misapplied (c) ; or if a suit has been instituted which takes the administration of the estate out of the hands of the trustees (d). Purchase from And if the purchaser is dealing with trustees at a great lOTgtrof^w" distance of time, and when the trust ought long since to have been executedj the purchaser is bound to inquire and satisfy himself to a fair and reasonable extent, that the trustees are acting in the discharge of their duty (e). Power of signing It is evident, from what has been stated, that the exemption tioroflntmtion "f t^^ purchaser from seeing to the application of the purchase- at the date of the money depends as a general rule upon the settlor's intention; instrument. j x o r and if so, the question must be viewed with reference to the date of the instrument, and not as affected by circumstances which have subsequently transpired, " The deed," said Sir W. Grant, " must receive its construction as from the moment of its execution. According to the frame of the deed, the purchaser is or is not liable to see to the application of the money, and that liability cannot depend on any subsequent event " (/). Thus, if a trust be created for payment of debts and legacies, and the trustees, after full payment of the debts contract for the sale of the estate, the purchaser will not, upon this principle, be answerable for the application of the money in payment of the legacies. And so it has been held in several cases (g). " It is said," observed Lord Lyndhurst, " that the («) Sorn V. Horn, 2 S. & S. 448. StrougMl v. Anstey, 1 De G. M. & (6) JRogers v. Skillicorne, Amb. Q-. 648. 189, per Lord Hardwioke; Eland {d) Lloi/d y. Baldwin, 1 Yes. 113. V. Eland, 4 M. & Cr. 427, per Lord (e) Stroughill v. Anstey, 1 De G. Cottenham. M. & G. 654, ^erLord St. Leonards. (c) Watkins v. Cheek, 2 S. & S. (/) Balfour v. Welland, 16 Tes. 199; Eland Y. Eland, 4 M. & Cr. 156. 427, per Lord Cotte:ijham ; and see [g) Johnson r. Kennett, 3 M. & ctL. XVI. s. 2.] trustees' receipts. 437 debts having been paid out of the personal estate, and nothing remaining but the legacies, the case falls within the general rule applicable to cases where legacies alone are charged upon the real estate. I find no authority for such a proposition. The rule applies to the state of things at the death of the testator ; and if the debts are afterwards paid, and the legacies alone are left as a charge, that circumstance does not vary the general rule " (a). "Otherwise," said Lord Cottenham, "the purchaser must, in every case, go into an investigation of the fact of how far the debts have been discharged — exactly that liability to which the law considers that he should not be subjected " (b). ■ In Forbes v. Peacock (c), a testator directed his debts to be Forbes v. paid, and gave the estate to his wife, (whom he appointed his executrix) for life, subject to his debtsand certain legacies, and empowered her to sell the estate in her lifetime, and directed that if it were not sold in her lifetime, it should be sold at her death, and the proceeds applied in a manner showing that they were intended to pass through the hands of the executors, and the testator requested certain persons to act as executors and trustees with his wife. The widow lived twenty-five years, and after her death the surviving executor contracted for the sale of the estate. The Vice-ChanceUor of England held that, after so long lapse of time from the testator's death, the purchaser had a right to ask if the debts had been paid, and if he received no answer, it amounted to notice that they had been paid, and he must see to the application of his purchase- money. " My notion," he said, " of the law is, that where a testator has directed all his debts to be paid, and then appoints certain persons his executors and trustees, if, at any time after his death, those who have the power sell any part of the testator's real estates, and nothing is said about the matter, the purchaser will have a good title, because upon the face of K. 624, reversing S. 0. 6 Sim. 384 ; (6) JEland v. Sland, 4 M. & Cr. JSland V. :Eland, 4 M. & Cr. 420 ; 428. Faffe V. Adam, 4 Beav. 269 ; Stroug- (c) 11 Sim. 152 ; 12 Sim. 528 ; 11 &■« V. ^nsfey, 1 De G. M. & G. 635. M. & W. 637; 1 Phill. 717; see (a) Johnson Y. Kennett, 3 M. &K. 1 De G. M. & G. 650. 631. 438 trustees' beceipts. [ch. xvi. s. 2. the will there is a charge of debts, and non constat that all the debts have been paid. At the same time I think that if it should appear to be highly probable, at the time when the executors propose to sell, that the debts have been paid, a very important question may arise, whether a good conveyance can be made by them alone, 'and whether the concurrence of the persons interested in the proceeds of the sale may not be necessary. It strikes me, therefore, that when the objection is made by the purchaser that the executors cannot make a good title because all the debts have been paid, if the question is put by him simply, are there or are there not any debts remaining unpaid, he has a right to an answer " (a). And on a subsequent day he observed, " Here the purchaser has asked the executor whether any of the testator's debts were unpaid at the date of the contract, and the executors refused to give him an answer. Under these circumstances, if it should turn out that all the debts were paid, I should hold that the purchaser had notice of that fact, and that he was bound to see that his purchase- money was properly appHed (&). What is the general priuciple ? The Court has drawn a distinction from an early time. It has said that if there is a mere direction to sell, and to divide the proceeds, the purchaser of the estate must see to the applica- tion of the purchase-money, and the parties amongst whom the proceeds are to be divided must give receipts to the purchaser. But in a case where a testator charges his estate with debts, and directs that there shall be a sale either by an express trust, or a general power, the Court says, it is quite impossible for the purchaser to ascertain who are the creditors of the testator, and to see that they are paid, and if he is not bound to look to the persons whose claims are first to be satisfied, of course he is exempted from looking to the claims of the persons who take as cestuis que trust. That is the principle of the rule, and I am yet to learn how that principle does not apply to a case where the purchaser is in effect informed that the. debts have been paid; and I consider that what is stated to have taken place in this case between the vendor and purchaser does amount to that " (c). (a) 12 Sim. 537. (6) lb. 842. , (c) lb. 546. CH. XVI. s. 2.] trustees' 'receipts. 439 It is evident that this doctrine was not in accordance with former decisions, and the cause was carried upon appeal to the Lord-Chancellor, when the decision below was reversed. Lord Lyndhurst observed, " If the purchaser had notice that the vendor intended to commit a breach of trust, and was selling the estate for that purpose, he would, by purchasing under such circumstances, be concurring in the breach of trust, and thereby become responsible. But assuming that the facts relied upon in this case amount to notice that the debts had been paid ; yet, as the executor had authority to sell not only for the payment of debts, but also for the purpose of distribu- tion among the residuary legatees, this would not afford any inference that the executor was committing a breach of trust in selling the estate, or that he was not performing what his duty required. The case then comes to this: if authority is given to sell for the payment of debts and legacies, and the purchaser knows that the debts are paid, is he bound to see to the applica- tion of the purchase-money ? I apprehend not. In Johnson v. Kennett, I held that the rule had reference to the death of the testator, and therefore, that even supposing the debts were paid before the sale took place, and that the legacies alone remained as a charge, that circumstance would not vary the general rule. I see no reason to depart from what I then stated" (a). Lord St. Leonards, with reference to the judgment of Lord Lyndhurst, and to the note appended thereto by his lordship's authority, observed (6), " The case must stand upon one of two grounds ; — -either that there are no debts within the knowledge of the purchaser, and then it is indifferent whether there were no debts at the death of the testator, or no debts at the time of the purchase, or, which is more satisfactory, and open to no ambiguity, on the ground that when a testator by his wiU charges his debts and legacies, he shows that he means to entrust his trustees with the power of receiving the money, anticipating that there will be debts, and thus providing for the payment of them. It is, by implication, a declaration by the testator that he intends to entrust the trustees with the (a) 1 Phill. 717, and note, p. 722. M. & G. 653 ; see Mather v. Norton, (6) StrougUll v. Anstey, 1 De G. 16 Jur. 309. 440. TKUSTEES' EECEIPTS. [CH. XVI. S. 2. receipt and application of the money, and not to throw any obligation at all upon the purchaser or mortgagee. That intention does not cease "because there are no dehts. It remains just as much if there are no debts, as if there are debts. The consistent rule would be that if a trust be created for payment of debts and legacies, the purchaser or mortgagee should in no case (in the absence of fraud), be bound to see to the application of the money raised. To this rule, " his Lordship emphatically added, " I shall adhere as long as I sit in this Court." Charge of detts. The cases in which the testator, instead of devising the estate upon an express trust for payment' of debts, creates a charge of debts upon his real estate, seem to require a particular examination. It might have been a simple and useful rule to hold under such circumstances that the executor, and the executor only, as the person who had administration of the personal assets, should, by virtue of an implied power, sell the real estate for payment of the debts ; but no such rule exists, and we proceed to ascertain as far as we can by what principles the Court has been governed. De-rise to trastees 1. If a testator charge his real estate with debts, and then debts? " ^^^^ ° devises it to trustees upon certain trusts, which do not include or perhaps negative a power of sale, can the trustees give a good title to a purchaser ? It is clear that the trustees and the executor can sell together {a), and the question is, upon what principle this proceeds. Is the executor the vendor, and if so, has he a legal power which enables him to pass the estate at law independently of the trustee ? Vice-ChanceUor Bruce seemed, on one occasion, to think that the cases of Shaw v. Borrer and Ball v. Harris might have been decided on this (a) Shaw v. Borrer, 1 Keen, 559 ; executors. This, if done by the or- Ball V. Harris, 8 Sim. 485 ; S. C. 4 der of the Court, would indemnify Myl. & C. 264 ; Page v. Adam, 4 the trustees j hut it does not follow Beav. 269 ; and see Forbes v. Pea- that the trustees, on the completion coch, 11 Sim. 152 ; 12 Sim. 528 ; of the sale out of court, could have 11 M. & "W. 630; 1 Phill. 717. In allowed the executors to receive the Shaw V. Borrer, the trustees and money. The question to whom the executors were co-plaintiffs, and the money should be paid was not ad- prayer of the bill was, that the pur- yerted to in the argument, nor does chase-money might be paid to the it appear to whom it was paid. CH. XVI. s. 2.] trustees' receipts. 441 footing (a), and some recent cases leanin the same direction (&). But the notion of the executor passing the legal estate in such a case was never suggested until the last few years, and what was said by the Court of Exchequer in Doe v. Hughes was at least true at the time it was spoken, viz., that not a single case could be produced in which a mere charge had been held to give the executors a legal power (c). Have the executors then an equitable power, and is the trustee who had the legal estate bound to convey it as the executor directs? This doctrine would be a very rational one, but there is no trace of it in the cases themselves. Apparently they were decided on the familiar principle, that in a Court of Equity there is no differ- ence between a charge of debts and a trust for payment of debts {d), and that the trustees therefore took the legal estate upon the trusts of the will, the first of which was to pay the testator's debts. It is certainly not a little remarkable that after an examination of aU the authorities upon the subject, there does not appear to be one in which the trustee has sold alone without the concurrence of the executor. This circum- stance, however, may be easily accounted for, as trustees of the will are almost invariably appointed executors also, and where that is not the case, the purchaser' naturally requires the con- currence of the executor, not on the ground that he is the vendor, but to satisfy the purchaser that the sale of the real estate is hond-fde from the insufficiency of the personal assets. In some of the cases the Court has noticed, but not laid any stress upon, the circumstance of the personal representative concurring (e), or of the characters of trustee and personal [a) GoslinffY. Carter, 1 Coll. 649. v. Harris, 4 Myl. & C. 267; Wood (h) See Robinson v. Lowater, 17 v. White, 4 Myl. & C. 482 ; Com- Beav. 5,92; 5 De Gex, Mac. & Gor. missionersof Donationsr. Wyhrants, 272 ; jEidsforth v. Armstead, 2 Kay 2 Jones & Lat. 197. & Johns. 333; Wrigley\. Syhes, 21 (e) See Shawr. Borrer, 1 Keen, Beav. 337 ; Storry v. Walsh, 18 559 ; Forles v. Peacock, 12 Sim. Beav. 568. 537 ; and see V. C. K. Brnce's re- (c) Doe V. Hughes, 6 Exch. Rep. marks upon Shaw v. Borrer, and 231. Ball Y. Harrisjin GosIinffY. Carter, (d) JElliot V. Merryman, Barn. 81 ; 1 Coll. 649. But in Ball v. Harris, Ex parte Turner, 9 Mod. 418 ; Jen- the Y. C. of England observed, " It kins V. Hiles, 6 Ves. 654, note (a) ; is manifest that Harris (the trustee), Bailey y.Ekins, 7 Ves. 323; Ball who had the legal fee, was competent 442 trustees' ' EECEIPTS. [CH. XVI. S. 2. representative being combined, but in otbers that fact has been passed over in silence as a mere accident, and the Court has relied on the general doctrine that a trustee of the estate charged with debts could sell and sign a valid discharge for the purchase money (a). In Doe v. Hughes {b), the case most adverse to the powers arising from a charge of debts, it was admitted that by a devise to trustees of the real estate, subject to a charge of debts, the trustees had thereby imposed upon them the duty of raising the money to pay the debts, and this was the opinion of Lord Hardwicke, as expressed in a case which we do not remember to have seen cited. In Ex parte Turner (c), where the estate had been given subject to debts, but no express trust created for the purpose, he observed, " Where a devise is ■general 'in trust,' or 'subject to pay debts,' the devisee m&j sell or mortgage, but he must pay the money to the creditors of his devisor ; but if he do not, the mortgagee is not to suffer, for in cases of these general devises he is not obliged to see to the application of the money he advances. But even in this case inconveniences often arise, for where the estate is equit- able assets, as it is where it is accompanied with a trust, the creditors who have not specific liens upon the laud ought to come in equally, and pari passu. However, if the trustee prefer one creditor to another, where he ought not, the remedy usually is against the trustee, and not the lender of the money, for if the latter was to see to the application of his money upon so general a trust, he could not safely advance his money without a decree in this Court." If the trustees of an estate charged with debts can, by virtue not of the express trust but of the trust implied by the charge, sell the estate, and sign a receipt for the purchase money, it would seem to follow that they must not allow the proceeds to be paid to the executor as not being the proper hand to receive (d), to mortgage that estate to any person passages referred to in last previous wlio would advance money for the note ; Forbes v. Peacock, 12 Sim. benefit of the testator's estate," 8 546. Sim. 497 ; and it is equally clear (J) 6 Eioh. Eep. 231. that Lord Cottenham was of opinion (c) 9 Mod. Eep. 418. Harris was a trustee for payment of {d) See Oosling v. Carter, 1 CoU. debts ; 4 M. & Cr. 267. 650, where T. C. Knight Bruce says, (a) See Ball v. Harris, at the " If payment ought to be made to GH. XVI. s. 2.] trustees' eeceipts. 443 the executor in that character having no privity -with the real estate. The necessity, if it exist, of requiring the concurrence of the personal representative would often lead to practical incon- venience, for on the death of the executor intestate there would be no personal representative of the testator, and the personal assets having been exhausted, there would be no fund for taking out letters of administration ; not to mention that should the executor be held to have any concern with the proceeds of the real estate, by virtue of the will, the administrator, not being appointed by the wiU, would not succeed to the power of the executor, which should be borne in mind as of some import- ance in considering whether the sale is substantially that of the executor or of the trustee who takes subject to the charge. The practical result is, that in the present state of the law Kesvdt of cases. a purchaser cannot be advised to accept a title even from trustees who sell under the charge without the concurrence of the executor, but numerous purchases must have been taken from the trustee only, and it is hoped, as is probable, that such purchases would be supported. 2. If a testator charge his debts and devise the estate subject to Devise to a per- . tjci- ^°^ "beneficially the charge to A. and nis heirs not upon trusts but tor his own with a charge of use, can the beneficiary in this case make a good title ? The ^' preceding question is in fact identical with this, for if where the express trust negatives a sale the trustee can still make a good title, it is evident that he can only do so by virtue of the charge. Any distinction between the two cases would be in favour of the beneficial devisee, for if the trustee in defiance of the express trust can seU, a fortiori the devisee can, who is fettered by no such restriction. In both instances the charge operates as a trust for payment of debts, and is attended with all the same consequences. "A charge," said Lord Eldon, "is in substance and efi'ect pro tanto a devise of the estate upon trust to pay the debts " {a), and "this," observed Lord St. Leonards, on citing the dictum, " is < supported by the current of authorities "(&). It is clear that the devisee one, it is not, necessarily, a good (a) Bailey v. Ekins, 7 Ves. 323. payment to make that payment to (6) Commissioners of Donations'^. One and another." Wyhrants, 2 Jon. & Lat. 198. 444' trustees' teECEIPTS. [CH. XVI. s. 2., can, where he also fills the character of executor, make a good title (a), and in some of the cases the Court did not in terms rely on the characters being combined (&), but it is singular that no authority can be found in which the question whether the devisee alone can make a good title has arisen. In the Court of Exchequer (c) it was said that in a devise, to trustees, subject to a charge of debts, the trustees could sell; but that a charge in the hands of a devisee if the lands were devised, or in the hands of the heir-at-law if the lands descended, was a charge only in equity. The Court was there considering, more particularly, the question of legal powers; but if it was intended to be said that a devisee, subject to a charge, could not sell and sign a receipt for the money, the doctrine is inconsistent with the nature of a charge of debts in equity as commonly understood. The prevalent opinion hitherto is believed to have been that a devisee subject to debts could sign a receipt for the purchase money {d), and the cases in which the Court has upheld purchases from a devisee with the concurrence of the executor, but without relying upon such concurrence, would be a trap for purchasers should the Court now refuse to uphold a purchase from a devisee only. Here, again, the practical result is that a purchaser '"'^ cannot be advised at present to accept a title from the devisee without the concurrence of the executor, though in the author's opinion the devisee could give a good title. Charge of debts 3. If a testator charge his debts on the real estate, and does de^se ofX^ ^'' ^°* devise the estate at all, but allows it to descend to the heir, estate. can the heir seU and sign a receipt for the purchase money ? It appears to be clear that he cannot, for he takes nothing under the will, and cannot therefore be regarded as a person constituted by the testator the trustee by implication for payment of debts (e) ; he can pass the legal estate, but he could (a) Elton V. Harrison, 2 Swan. Young, Johnson y. Kennet, Eland y. 276, note; Ellioty.Merryman,'Qaxn, Eland, ubi suprd,, 78 ; Bolton y. Young, 6 Madd. 9 ; (c) Boe v. Hughes, 6 Eioh. Kep. Johnson y. Kennet, 6 Sim. 384; 3 231. Myl. & K. 624; Eland y. Eland, 1 {d) See the oases cited in note (Leod^. Drummond, 17 Ves. 161, 169. (/) Hill V. Simpson, 7 Ves. 152 ; and see M'Leod v. Drummond, 17 Ves. 169. Anon, case, cited Pr. Ch. 434 ; and (g ) M'Leod v. Drummond, 14 Ves. 353 ; reversed 17 Ves. 152, see Mead v. Orrery, 3 Atk. 238. 171. 460 PURCHASES BY TRUSTEES. [CH. XVI. S. 3. the right of unravelling the transaction has been neglected for a lapse of twenty years {a). SECTION III. DISABIIITT OP TKUSIEES SOE SALE TO BECOME PUECHASEES 01' THE lEirST PEOPEETT. We now come to the subject of purchases by trustees of the property Vested in them upon trust. Under this head it will be proper to consider, 1, The extent and operation of the rule, that a trustee shall not purchase the trust estate ; 2, The species of relief to which the cestm que trust will be entitled ; 3, The time within which the cestui que trust must apply to the Court. Trustee for sale 1. The general rule is, that a trustee for sale (b) (however the cha^e. case may stand with respect to mere nominal trustees, or trustees who have no active duties to perform, as trustees to preserve contingent remainders) (c) is disabled from pur- chasing the trust property (d), whether it be real estate or a chattel personal (e), land, or a ground rent (/), in reversion or possession (^), whether the purchase be made in the trustee's own name or in the name of a trustee for him (h), by private (a) Andrew Y. Wrigley, 4 B. C. 247; Ex parte Bennett, 10 Ves. C. 125 ; Bonney v. Bidgard, 1 Cox, 394. 145; Meady. Orrery, 3 Atk. 235, (e) Crowe \. Ballard, 2 Cox, 263; see 243. 8. C. 3 B. C. C. 117 ; EillicJc v. (6) SeeParkesv. White, 11 Ves. Flexney, 4 B. C. C. 161; Sally. 226 ; Randall v. Brrington, 10 Ves. Hallet, 1 Cox, 134 ; Whatton v. 426 ; Ayliffe v. Murray, 2 Atk. 59 ; Toone, 5 Mad. 54 ; 6 Mad. 153. Davidson v. Gardner, cited Vend. & {f)Price v. Byrn, cited Campbell Puroli. 890, lltk Edn. v. Walker, 5 Ves. 681. (c) Sutton v. Jones, 15 Ves. 587; {g) Be Bloye's Trust, 1 Mac. & Naylor v. Winch, 1 S, & S. 567. Gor. 488, see 492, 495. [d] Fox v. Mackreth, 2 B. C. C. (A) Campbell v. Walker, 5 Ves. 400 ; S. C. 2 Cox, 320 ; affinned 678 ; S. C. 13 Ves. 601 ; Bandall in D. P. 4 B. P. C. 258, &c. v. Brrington, 10 Ves. 423 ; Qroiee That Fox V. Mackreth was decided v. Ballard, 2 Cox, 253 ; S. C. 3 B. upon this ground, see Gibson v. CCllT ; ffally. lIallet,lCox,lSi; Jeyes, 6 Ves. 277; Ex parte Lacey, Watson v. Toone, 6 Mad. 153; Baker id. 627 ; Ex parte James, 8 Ves. v. Carter, 1 T. & Coll. 250 ; Knight 353 ; Coles v. Trecothick, 9 Ves. v. Marjoribanks, 2 Mac. & Gror. 12. CH. XVI. S. 3.] PURCHASES BY TKUSTEES. 461 contract or public auction (a), from himself as the siagle trustee, or with the sanction of his co-trustees (6) ; for he who undertakes to act for another in any matter cannot, in the same matter, act for himself (c). The situation of the trustee gives him an opportunity of knowing the value of the property and as he acquires that knowledge at the expense of the cestui que trust, he is hound to apply it for the cesfm que trust's benefit (cZ). Besides^ if the trustee appeared at the auction professedly as a bidder, that would operate as a discouragement to others, who, seeing the vendor ready to purchase at or above the real value, would feel a reluctance to enter into the com- petition, and so the sale would be chilled (e). Lord Rosslyn is said to have considered that to invalidate a Lord Eosslyn's purchase by a trustee it was necessary to show he had gained an actual advantage (/) ; but the doctrine (if any such was ever held by his Lordship (g) ) has since been expressly and unequivocally denied {h). The rule is now universal, that, however fair the transaction, the cestui que trust is at liberty to set aside the sale and take back the property (i). If a trustee were permitted to buy in an honest case, he might buy (a) Campbell v. Walker, Randall (e) See Ex parte Lacey, 6 Ves. v. Errington, ubi supra ; Ex parte 629. Bennett, 10 Ves. 381, see 393; Ex (/) B^&Whichcotey. Lawrence, 3 parte James, 8 Ves. 337, see 349 ; Ves. 750. Whelpdale v. Cookson, 1 Ves. 9 ; {ff) See Ex parte Lacey, 6 Ves. S. C. stated from R. L. ; Campbell v. 626; Lister v. Lister, id. 632. Walker, 5 Ves. 682 ; Ex parte {h) Ex parte Bennett, 10 Ves. Hughes, 6yes.6i7; Ex parteLacey, 385; Ex parte Lacey, 6 Yes. 627; id. 625 ; Lister y. Lister, id. 631 ; Attorney- General v. Lord Dudley, Whichcote v. Lawrence, 3 Ves. 740 ; Coop. 148 ; Ex parte James, 8 Ves. Attorney- General v. Lord Dudley, 348 ; Mulvany v. Dillon, 1 B. & B. Coop. 146 ; Downes v. Grazebrook, 409, see 418. 3 Mer. 200. (i) Ex parte Lacey, 6 Ves. 625, (5) Whichcote v. Lawrence, 3 see 627 ; Owen v. Foulkes, cited id. Ves. 740; Hall\. Noyes, cited id. 630, note (6); Ex parte Bennett, \Q 748 ; and see Morse v. Royal, 12 Ves. 393, per Lord Bldon ; Randall Ves. 374. V. Errington, 10 Ves. 423, see 428 ; (e) Whichcote v. Lawrence, 3 Campbell v. Walker, 5 Ves. 678, see Ves. 750, per Lord Rosslyn; Ex 680; Ex parte James, 8 Ves. 347, parte Lacey, 6 Ves. 626, per Lord 348, per Lord Eldon ; Lister v. Lis- Eldon ; Re Bloye's Trust, 1 Mac. & ter, 6 Ves. 631 ; Gibson v. Jeyes, 6 Gror. 495. Ves. 277, per Lord Eldon; but see {d) See Ex parte James, 8 Ves. Kilbee v. Sneyd, 2 Moll. 186. 348. 462 PUECHASES BY TRUSTEES. [OH. XVI. S. 3. Trustee may not buy as agent. Agent of trustee may not buy. Trustees may not lease to them- selves. Trustee wlio has disclaimed. in a case having that appearance, but which, from the infirmity of hv/man testimony, might he grossly otherwise (a). Thus, a trustee for the sale of an estate may, by the knowledge acquired by him in that character, have discovered a valuable coal-mine under it, and, locking that up in his own breast, might enter into a contract for the purchase to himself. In such a case, if the trustee chose to deny it, how could the Court establish the fact against that denial ? The probability is, that a trustee who had once conceived such a purpose would never disclose it, and the cestui que trust would be effectually defrauded (6). As a trustee cannot buy on his own account, it follows that he cannot be permitted to buy as agent for a third person: the Court can with as little effect examine how far the trustee has made an undue use of information acquired by him in the course of his duty in the one case as in the other (c). And the rule against purchasing the trust property applies to an agent employed by the trustee for the purposes of the sale, as strongly as to the trustee himself {d). The lease of an estate is in fact the sale of a partial interest in it, and therefore trustees for sale cannot grant a demise to one of themselves, but the lessee, while he shaU be held to his bargain if disadvantageous to him, shall be made to account for the profits if it be in his favour (e). There can be no objection to a purchase by a person named as trustee, but who has disclaimed without having acted in the trust (/), or by a tenant for life whose consent to the sale is required by the terms of the power (g). (a) JEx parte Bennett, lOYes. 385, per Lord Eldon. (b) Ex parte Lacey, 6 Ves. 627, per Lord Eldon ; and see Ex parte Bennett, 10 Ves. 385, 394, 400 ; Ex parte James, 8 Ves. 348,349; Farhes V. White, 11 Ves. 226; Campbells. Walker, 6 Ves. 681; Lister v. Lister, 6 Ves. 632 ; Ex parte Badcoch, 1 Mont. & Mae. 239. (c) Ex parte Bennett, 10 Ves, 381, see 400; Coles v. TrecoUiick, 9 Ves. 248, per Lord Eldon; and see Gregory v. Gregory, Coop. 204. {d) Whitcomh v. Minchin, 6 Mad. 91 ; In re Bhye's Trust, 1 Mao. & Gor. 488, see 495. (e) Ex parte Hughes, 6 Ves. 617; Attorney- General v. Earlof Claren- don, 17 Ves. 491, see 500. (/) Stacey v. Elph, 1 M. & K. 195 ; and see Chambers v. Waters, 3 Sim. 42. (g) Howard V. Bucane, 1 Turn. & R. 81. CH. XVI. S. 3.] PUKCHASKS BY TRUSTEES. 463 But when it is said a trustee for sale may not purchase the Trustee may pur- trust property, the meaning must be understood to be that the eesTui auTteutt. trustee may not purchase from himself; for there is no rule that a trustee may not purchase from his cestui que trust (a). However, a purchase by the trustee from his cestui que trust is at all times a transaction of great nicety, and one which the Courts will watch with the utmost diligence {b) : the exception runs, it is said, so near the verge of the rule, that it might as well be included within it (c). Before any dealing with the cestui que trust, the relation The relation of between the trustee and cestui que trust must be actually or (.estuique trust virtually dissolved. The trustee may, if he pleases, retire must first be from the of&ce, and qualify himself for becoming a purchaser by divesting himself of that character (d), or, if he retain the situation, the parties must be put so much at arm's length, that they agree to stand in the adverse situations of vendor and purchaser (e), the cestui que trust distinctly and fully under- standing that he is selling to the trustee, and consenting to waive all objections upon that ground (/), and the trustee fairly and honestly disclosing all the necessary particulars of the estate, and not attempting a furtive advantage to himself by means of any private information (g) : the trustee will not be allowed to go on acquainting himself with the nature of the (a) Ex parte Lacey, 6 Ves. 626, " {c) Morse y. Soy al, 12 Ves, 372, ^erLord Eldon; Coles y. Trecothick, ^er Lord Erskine. 9 Ves. 244, 246, per eundem ; Gib- (d) Downes v. Orazelrook, 3 Mer. son Y. Jeyes, 6 Ves. 277, per eundem; 208, per Lord Eldon. Downes v. Grazebrook, 3 Mer. 208, (e) Gibson v. Jeyes, 6 Ves. 277, pereundem; Randall Y.Errington,\0 per Lord Eldon; and see Bx parte Yea A26,per airW. Giant -.Whichcote Lacey, 6 Ves. 626, 627; Ex parte Y. Lawrence, 3 Ves. 750, ^er Lord Bennett, 10 Ves. 394; Morse v. Rosslyn; Sanderson v. Walker, 13 Royal, 12 Ves. 373; Sanderson v. Ves. 601, per Lord Eldon ; Ayliffe Walker, 13 Ves. 601. V. Murray, 2 Atk. 59, per Lord (/) See Randall v. Errington, 10 Hardwioke ; Kilbee v. Sneyd, 2 Ves. 427. MoU. 214,^er Sir A. Hart. {g) Coles v. Trecothick, 9 Ves. (J) Coles V. Trecothick, 9 Ves. 247, per Lord Eldon ; Morse v. 244, per Lord Eldon; Ex parte Royal, 12 Ves. 373, 377, per Lord Lacey, 6 Ves. 626, per eundem ; Erskine ; Gibson v. Jeyes, 6 Ves. Downes v. Grazebrook, 3 Mer. 209, 277, per Lord Eldon ; Randall v. per eundem. Errington, 10 Ves. 427, per Sir W. Grant. 464 PURCHASES BY TRUSTEES. [CH. XVI. S. 3. Instances where trustee has been allowed to pur- chase. Solicitor of the cestui que trust. Creditors. property up to the moment of sale, and then, casting aside his character of trustee, turn his experience to his own account (a). In what cases a trustee wUl be at liberty to become a pur- chaser may be best illustrated by a few instances. "Where the cestui que trust took the whole management of the sale himself, chose, or at least approved the auctioneer, made surveys, settled the plan of sale, fixed the price, and so had a perfect knowledge of the value of the property, and then by his agent, but with his own personal consent, agreed to sell a lot which had been bought in to one of the trustees acting as agent for another. Lord Eldon said, that if in any instance the rule was to be relaxed by consent of the parties, this was the case, and decreed the agreement to be specifically performed (6). Again, a cestui que trust had urged the purchase upon the trustee, who at first expressed an unwillingness, but afterwards agreed to the terms ; and the sale was supported (c). So, where the trustee had endeavoured in vain to dispose of the estate, and then purchased himself of the cestui que trust at a fair and adequate price, and there was no imputation of fraud or concealment. Lord Northington said, " He did not like the circumstance of a trustee dealing with his cestui que trust, but upon the whole, he did not see any principle upon which he could set the transaction aside " (d). It has been pronounced too dangerous to allow the cestui que trust's solicitor, without a sp^ial authority, to bind his employer by such a contract with the trustee (e). Where the cestuis que trust are creditors, the trustee cannot purchase with the sanction of the major part of them, but the Eberty must in strictness be given by the unanimous voice of the whole body (/), though the Court is in the habit of (a) See Sx parte James, 8 Ves. 352. (b) Coles V. Trecothick, 9 Ves. 234. (e) Morse Y. Royal, 12 Ves. 355. {d) Clarke v. Swaile, 2 Ed. 134. (c) Downes v. Grazehrook, 3 Mer. 209, per Lord Eldon. (/) See Sir O. Colebrooke'scass, cited Sx parte Hughes, 6 Ves. 622 ; JSx parte Laeey, id. 628 ; the cases cited id. 630, note (ft). TVhelpdale V. Cookson, oiteiCamplellY. Walker, 5 Ves, 682, must be considered as shaken. Sugd. V. & P. 894, llth Edn. CH. XVI. S. 3.] PURCHASES BY TRUSTEES. 465 sanctioning purchases of a bankrupt's estate by assignees, pro- vided the assent of a general meeting of creditors be obtained (a). The Court has no jurisdiction to authorise a trustee to bid Court mil not where the cestuis que trust are sui juris, for that is a question trustee to bid. the cestuis que trust are entitled to decide for themselves (6). If the cestuis que trust be under disability, as infants, the Where cestuis trustee, as he cannot be released from the liabilities of his ^nts!^ situation, cannot by any act in pais become the purchaser of the estate (c) ; but, if it be absolutely necessary that the pro- perty should be sold, and the trustee is ready to give more than any one else, he may file a bill in Chancery, and apply by motion to be allowed to purchase, and the Court will then examine into the circumstances, ask who had the conduct of the transaction, whether there is reason to suppose the premises could be sold better, and upon the result of that inquiry will let another person prepare the particular of sale, and allow the trustee to bid (d). The principles laid down with reference to trustees for sale Of executors, o ^• 1 ^ j^ ^^ ^ n ^ tiv • • administrators, are ot course appucable to all who, though dinermg m name, assignees &o. are invested with the hke fiduciary character, as executors and administrators (e), an executor in his own wrong (/), assignees of bankrupts (g), a receiver (h), &c. ; but a mortgagee may pur- chase from his mortgagor (i), and a creditor taking out execution is not precluded from becoming the purchaser of the property upon a sale by the sheriff (k). 2. Next as to the terms upon which the sale will be set aside. (o) Anon, case, 2 Russ. 350; Ex (g) Ex parte Huffhes, 6Yes. 617; fP ^ (J , - parte Bage, 4 Mad. 459. Ex parte Lacey, id. 625, and the •y'^^ - -C^^Mi^^ '{h) See Ex parte James, 8 Vea. cases cited, id. 630, note (5) ; Ex (^ -^- Siff^ 352. parte Bennett, 10 Ves. 395, per Lord (c) Campbell v. Walker, 5 Ves. Eldon ; Ex parte Reynolds, 5 Ves. 678 ; 3. 0. 13 Ves. 601. 707 ; Ex parte James, 8 Ves. 346, {d) Camplell v. Walker, 5 Ves. per Lord Eldon ; Ex parte Morgan, 681, e82, per Lord Alvanley. 12 Ves. 6 ; Ex parte Bage, 4 Mad. (e) Sail V. Hallet, 1 Cox, 134 ; 459 ; Ex parte Badcock, 1 Mont, & Killick V. Flexney, 4 B. C. C. 161 ; Mac. 231. Watsony. Toone, 6 Mad. 153 ; Kilhee {h) Alven v. Bond, 1 Fl. & Kell. V. Sneyd, 2 Moll. 186; Baker v. 196; White v. Tommy, referred to Carter, 1 T. & C. 250 ; and see ib. 224. Naylor v. Winch, 1 S. & S. 566. (i) Knight v. Marjoribanhs, 11 (/) Mulvany v. Dillon, 1 B. & B. Beav. 322 ; 2 Mac. & Gor. 10. 408. {k) Stratford v. Ttvynam, Jac. 418. 466 PURCHASES BY TEUSTEES. [CH. XVI. S. 3. Cestui que trust may recover the specific estate. Allowances for repairs. Case of actual fraud. The cestm qu6 trust, if he choose it, may have the specific estate reconveyed to him by the trustee (a), or, where the trustee has sold it with notice, by the party who purchased (6), the cestui que trust on the one hand repaying the price at which the trustee bought with interest at 4 per cent, (c), and the trustee or purchaser on the other accounting for the profits of the estate {d), but not with interest (e), and, if he was in actual possession, submitting to be charged with an occupation rent (/). The trustee will have all just allowances made to him for improvements and repairs that are substantial and lasting {g), or such as have a tendency to bring the estate to a better sale (A), as in one case for a mansion house erected, plantations of shrubs, &c. (i) ; and in estimating the improvements, the bmld' ings puUed down, if they were incapable of repair, will be valued as old materials, but otherwise they will be valued as buildings standing {k) : should the property have been deteriorated by the acts of the trustee, his purchase-money will suffer a proportionate reduction (Z). But, it seems, where the contract was vitiated by the pre- sence of actual fraud,, allowance will be made to the trustee for necessary repairs (m), but not for improvements. " If," said Lord Fitzgibbon, " the person reaUy entitled to the estate will encourage the possessor of it to expend his money in improve- (o) See Ex parte James, 8 Ves. 351 ; Bx parte Bennett, 10 Ves. 400 ; Lord Hardwiche. v. Vernon, 4 Ves. 411; York Buildings^ Company V. Machemie, 8 B. P. C. 42. (5) Attorney-General v. Lord Dudley, Coop. 146 ; Dunbar v. Tre- dennick, 2 B. & B. 304. (c) Watson v. Toone, 6 Mad. 153 ; Ex parte James, 8 Ves. 351, per Lord Eldon ; Whelpdale v. Cookson, stated from B.. L. Campbelly. Walker, 5 Ves. 682 ; Hall v. Mallet, 1 Cox, 134, see 139 ; York Buildings' Com- pany V. Mackenzie, uhi supra, &o. {d) Ex parte James, 8 Ves. 351, per Lord Eldon ; Ex parte Lacey, 6 Ves. 630, per eundem ; Watson v. Toone, 6 Mad. 153; Whelpdale v. Cookson, York Buildings' Company V. Mackenzie, ubi supra. (e) Macartney v. Blackwood, I Bidg. Knapp & Sch. 602. (/) Ex parte James, 8 Ves. 351, per Lord Eldon. {g) Ex parte Hughes, 6 Ves. 624, 625 ; Ex parte James, 8 Ves. 352 ; Campbell Y. Walker, 5 Ves. 682. (h) Ex parte Bennett, 10 Ves. 400. («■) York Buildings' Company \. Mackenzie, ubi supra, (k) Robinson v. Ridley, 6 Mad. 2. \l) Ex parte Bennett, 10 Ves. 401. (m) Baugh v. Price, 1 Wils. 320. CH. XVI. S. 3.] PURCHASES BY TRUSTEES. 467 ments, or if he will look on and suffer such an expenditure without apprising the party of his intention to dispute his title, and will afterwards endeavour to avail himself of such fraud, the jurisdiction of a Court of Equity will clearly attach upon the case. But does it follow from thence, that, if a man has acquired an estate by rank and abominable fraud, and shall afterwards expend his money in improving the estate, that therefore he shall retain it in his hands against the lawful proprietor ? If such a rule should prevail, it would justify a pro- position I once heard at the bar, that the common equity of the country was to improve the right owner out of the possession of his estate" (a). A trustee, the sale having taken place during the pendency Trustee paying of a suit, had paid part of his purchase-money into court, ■X°g^^"'°"^^ which had been invested in the funds. On the purchase being set aside, the trustee claimed the benefit of the rise of the stock, but it was held he was only entitled to his purchase- money with interest, for had there occurred a fall of the stock, he could not have been compelled to submit to the loss (6). If the trustee is to be discharged from the situation of pur- Trustee to he chaser, he is to be discharged at once, and the Court will order ^g^g^k ^me™ an immediate conveyance upon immediate payment of the diateiy. money (c). The re-conveyance of the estate will be without prejudice Lessees not pre- to the titles and interests of lessees and others who have con- ■''^ ^ ■ tracted with the trustee bond fide before the pendency of the suit (d). But the bill of the cestui que trust, particularly where the Of sutmitting » , 1 ,11 .1 1 the estate to a assignee oi a bankrupt has become the purchaser, may pray, re-sale, not a re-conveyance of the specific estate, but a re-sale of the property under the direction of the Court. The terms of the re-sale have not always been uniform. In Whelpdale v. Cook- son (e) Lord Hardwicke said the majority of the creditors (a) Kenney v. Browne, 3 Eidg. [d) York Buildings^ Company y. 518; but see Oliver v. Court, 8 Mackenzie, 8 B. P. C. 42; see the Price, 172. decree. (6) Sx parte James, 8 Yes. 337, (e) Cited Campbell v. Walker, 5 see 351. Yes. 682. (c) See Ex parte Bennett, 10 Yes. 400, 401. H H 2 468 PURCHASES 3Y TEUSTEES. [CH. XVI. S. 3. should elect whether the purchase should stand; so that should they elect to re-sell, and the estate should he sold at a still lower price, the creditors would suffer. The doctrine of Lord Thurlow appears to have heen, that the property should be put up at the price at which the trustee purchased, and if any advance was made, the sale should take effect, but if no bidding, the trustee should be held to his bargain (a). Lord Alvanley followed the authority of Lord Hardwicke ; for in the case of infant cestuis que trust, he directed an inquiry by the Master, whether it was for the benefit of the infants that the premises should be re-sold, and, if for their benefit, that the sale should be made (&). " To this principle," said Lord Eldon, "the objection is, that a great temptation to purchase is offered to trustees, the question whether the re-sale would be advanta- geous to the cestui que trust being of necessity determined at the hazard of a wrong determination " (c). Lord Eldon there- fore conceived it best to adopt the rule of Lord Thurlow, and so he decreed in Ex -parte Hughes (d) and Ex parte Lacey (e). Sir W. Grant, in a subsequent case (/), said he was not aware that Lord Eldon had laid down any general rule as to the terms ; but a few days after, having consulted the Lord Chancellor upon the subject, and discovering his mistake, he framed his decree in conformity with the Lord Chancellor's decisions. The same principle has since been followed in numerous other cases (g), and the practice may be considered as settled. Allowances for Should the trustee have repaired or improved the estate, repaus, o. ^-^^ expense of the repairs and improvements would be added to the purchase-money, and the estate be put up at the accu- mulated sum (h). Ee-selling in lots. Where the trustee has purchased in one lot, the cestuis que trust cannot insist on a re-sale in different lots. If desirous (a) See Lister v. Lister, 6 Ves. (/) Lister v. Lister, 6 "Ves. 633. 633; Ex parte James, 8 Ves. 351. {g) Ex parte James, 8 Ves. 337; (J) Campbell v. Walker, 5 Ves. Exparte Bennett, 10 Ves. 381 ; Bo- 678, see 682. binsony. Ridley, 6 Mad. 2. (c) -S. C. 13 Ves. 603. (h) Ex parte Bennett, 10 Ves. 400; (d) 6 Ves. 617. Ex parte Hughes, 6 Ves. 625 ; Ro- (e) Id. 625 ; and see Ex parte binson v. Ridley, 6 Mad. 2. Reynolds, 5 Ves. 707. CH. XVI. S. 3.] PURCHASES BY TEUSTEES. 469 of re-selling the property in that mode, they must pay the trustee his principal and interest, and then, as the absolute owners, they may sell as they please (a). ' In the application of Lord Hardwicke's rule it was a question Difficulty of Lord constantly occurring, whether the body of creditors at large rule, could be bound by the resolution of the majority to insist upon a re-sale ; but by the practice of Lord Eldon, the difficulty on that head is avoided (6), for as the creditors cannot by possi- bility sustain an injury, it is competent to any individual creditor to try the experiment (c). If before the cestui que trust files his bill for relief the trustee The remedy has passed the estate into the hands of a purchaser, and the quent purchasers. purchaser had notice of the equity, the same remedies may be prosecuted against the purchaser as against the trustee (d) ; but if the sale was without notice, the cestui que trust may then compel the trustee to account for the difference of price (e), or for the difference between the sum the trustee paid and the real value of the estate at the time of the purchase (/), with interest at four per cent. (g). An administrator had become the purchaser of some shares Purchase of in Scotch mines, part of the assets, and afterwards sold them trustee. ^ * to a stranger at a considerable advance of price, and Lord Thurlow decreed the trustee to account for every advantage he had made, but said he could not go the length of ordering the defendant to replace the shares. He conceived the plaintiff, one of the next of kin, had no such election of choosing between the specific thing and the advantage made of it (h). The costs of the suit will, as a general rule, follow the Costs. decree — that is, if the trustee be compelled to give up his purchase, unless his conduct was perfectly honourable and the (a) See Ux parte James, 8 Yes. Hallet, 1 Cox, 134 ; Whichcote v. 351,352. , Lawrence, 3 Ves. 740; Hx parte . (6) JEx parte Hughes, 6 Ves. 624. Reynolds, 5 Ves. 707 ; Randall v. (c) Ex parte James, 8 Ves. 353; Errington, 10 Ves. 423. and see Ex parte Lacey, 6 Ves. 628. (/) See Lord Uardwicke v. Ver- (d) Attorney- General v. Lord non, i Yes. 4:11. Dudley, Coop. U6; BunharY. Tre- {g) Hall v. HalUt, 1 Cox, 134, dennick, 2 B. & B. 304. see 139. (e) Fox V. Mackreth, 2 B, C. C. (h) S. C. 400; S. C. 2 Cox, 320 ; J£all v. 470 PUECHASES BY TEUSTEES. [CH. XVI. S. 3. Cestui que trust must set aside the sale in rea- sonaUe time. What considered a reasonable time. sale is set aside on the mere dry rule of equity (a), he must pay the expenses he had himself occasioned (b) ; and if the charge be unfounded, the costs must be paid by the plaintiff. But if there be great delay on the part of the cestui que trust, the costs will be refused him, though he succeed in the suit (c) ; and, on the other hand, if the bill be dismissed, not because the transaction was not originally impeachable, but merely on account of the great interval of time, the Court may refuse to order the costs of the defendant (d). 3. If the cestui que trust desire to set aside the purchase, he must make his application to the Court in reasonable time, or he will not be entitled to relief (e). A long acquiescence under a sale to a trustee is treated as evidence that the relation between the trustee and cestui que trust had been previously abandoned, and that in all other respects the purchase was fairly conducted (/). A sale cannot, in general, be set aside after a lapse of twenty years (g) ; but in these cases the Court does not confine itself to that period by analogy to the Statute of Limitations, for rehef has been refused after an acquiescence of eighteen years Qi), and seventeen years (i) ; and it is presumed even a shorter period would be a bar to the remedy, where the cestui que trust could offer no excuse for his laches {k). However, the sale has been opened after an interval of ten years (Q ; and even after a much greater lapse of time where the executor had purchased in the (a) Baker v. Carter, 1 Y. & C. 250. (b) WTiichcote v. Lawrence, 3 Vea. 752 ; Sail v. Hallet, 1 Cox, 141 ; Sanderson Y. Walker, 13 Ves. 601, 604 ; Crowe Y. Ballard, 2 Cox, 253 ; S. O. 3 B. C. C. 117; Bunhary. Tredennioh, 2 B. & B. 304. (c) Attorney- General v. Lord Dudley, Coop. 146. {d) Gregory v. Gregory, Coop. 201. (e) Campbell v. Walker, 5 Ves. 680, 682, per Lord Alvanley ; Chal- mer t. Bradley, 1 J. & W. 59, per Sir T. Plumer ; Ex parte James, 8 Ves. 351, per Lord Bldon ; Welh v. Rorke, 2 Soli. & Lef. 672, per Lord Eedesdale ; Bandall y. Brrington, 10 Ves. 427, per Sir "W. Grant. (/) ParkesY. TiP^ife, 11 Ves. 226, per Lord Eldon ; and see Morse v. Royal, 12 Ves. 374, 378. {g) Price v. Byrn, cited Campbell Y. Walker, 5 Ves. 681. {h) Gregory v. Gregory, Coop. 201 ; Champion v. Rigby, 1 E. & M. 539 ; Roberts v. Tunstall, 4 Hare, 257. (i) Baker v. Read, 18 Beav. 398. \k) See Oliver v. Court, 8 Price, 167,.168. {l') Hall Y. Noyes, cited Which- cote V. Lawrence, 3 Ves. 748, CH. XVI. S. 3.] PURCHASES BY TEUSTEES. ' 471 names of trustees for himself, and the transaction was attended with circumstances of disguise and concealment (a). Persons not sui juris, a,s feme coverts and infants cannot be Of persons under precluded from relief on the ground of acquiescence during the continuance of the disability (6). But femes covert as to property settled to their separate use, if their power of antici- pation be not restricted, are regarded as femes sole (c). A class of persons, as creditors, cannot be expected in the Time allowed to ... . .a class of per- prosecution of their common mterest to exert the same vigour sons. and activity as individuals would do in the pursuit of their exclusive rights, ((i). Accordingly creditors have succeeded in their suit after a laches of twelve years (e) ; but even creditors will be barred of their remedy if they be chargeable with very gross laches, as with acquiescence in the sale for a period of thirty -three years (/). For laches to operate as a bar, it must be shown that the Time no bar cestui que trust knew the trustee was the purchaser ; for while stances not the cestui que trust continues ignorant of that fact, he cannot ^°'^^' be blamed for not having quarrelled with the sale(gi). The effect of the length of time may also be materially Distress of cestui influenced by the continued distress of the cestui que trust (h), but poverty is merely an ingredient in the case, and will not alone displace the bar (i). Of course the cestui que trust may ratify the sale to the Confirmation of trustee by an express and actual confirmation (&) ; and if the cestui que trust choose to confirm it, he cannot afterwards annul (a) Watson v. Toone, 6 Mad. 153. jim. 87 ; and see Scott v. Neshitt, 14 (6) Campbell v. Walker, 5 Ves. Ves. 446. 678; S. 0. 13 Ves. 601; MocheY. [g) EandallY. Errington, 10 Ves. O'Brien, 1 B. & B. 330, see 339. 423, see 427 ; Chalmer v. Bradley, (c) See infra. 1 J. & "W. 61. {d) Whichcotey. Lawrence, 3Yes. (A) Oliver y. Court, 8 Pvioe, 127, 740, see 752; J^x parte Smith, ID. see 167, 168; and see Oregory v. & C. 267 ; Hardwich v. Mynd, 1 Gregory, Coop, 201 ; Boche y. Anst. 109 ; and see Kidney y. Couss- O'Brien, 1 B. & B. 342. maker, 12 Ves. 158 ; York Buildings^ (i) Roberts v, Tunstall, 4 Hare, Company v. Mackenzie, 8 B. P. C. 257 ; see p. 267. 42 ; Ex parte Smith, 1 D. &. C. 267. {k) Morse y. Boyal, 12 Ves. 355 ; (e) Anon, case in. the Exchequer, Clarke y. Swaile, 2 Ed. 134 ; and cited Lister y. Lister, 6 Ves. 632. see Chesterfield y. Janssen, 2 Ves. (/) See Hercyy. Binwoody, 2 Ves. }25 ; S. C. 1 Atk. 301. 472 CONFIRMATION OF PURCHASE. [CH. XVI. S. 3. his own act on the ground of no adequate consideration {a). But, Eequisites of 1. The confirming party must be sui juris — not labouring tjon. under any disability, as infancy or coverture (fc). However, in the case of real estate a feme covert can, of course, confirm the purchase under the operation of the Fines and Recoveries Act (c), and if property, whether real or personal, be settled to her separate use (provided her power of anticipation be not restricted) she has, to the extent of the interest so settled to her separate use, all the capacity of a feme sole (d). 2. The confirmation must be a solemn and deliberate act, not, for instance, fished out from loose expressions xa a letter (e) ; and particularly where the original transaction was infected with fraud, the confirmation of it is so inconsistent with justice, and so likely to be accompanied with imposition, that the Court will watch it with the utmost strictness, and not allow it to stand but on the very clearest evidence (/). 3. There must be no suppressio veri or suggestio falsi, but the cestui que trust must be honestly made acquainted with all the material circumstances of the case (g). 4. The confirming party mustnotbe ignorant of the law, that is, he must be aware that the transaction is of such a character that he could impeach it in a court of equity Qi). (o) Soche V. O'Brien, 1 B. & B. v. O'Brien, 1 B. & B. 338, and fol- 353, per Lord Manners. lowing pages ; Adams v. Clifton, 1 (J) Campbell v. Walher, 5 Ves. Euss. 297 ; Cockerell v. Cholmley, 1 678 ; S. C. 13 Ves. 601 ; Roche v. Russ. & M. 425 ; S. C. Taml. 444 ; O'Brien, 1 B. & B. 330, see 339 ; Chesterfield v. Janssen, 2 Ves. 146, and see Scott y. Davis, 4 M. & C, 149, 152, 158; Chalmerx. Bradley, 92. ■ IJ. & W. 51. (c) 3 & 4 W. 4. 0. 74 ; and see 8 (A) See Cann v. Cann, 1 P. W. & 9 Vict. c. 106. 727 ; Dunbar v. Tredennick, 2 B. & {d) See infra. B. 317 ; Burney v. Macdonald, 15 (e) Carpenter v. Heriot, 1 Ed. Sim. 15 ; Molony v. L' Estrange, 1 338 ; and see Montmorency v. Deve- Beat. 413 ; Crowe v. Ballard, 2 Cox, reux, 7 CI. & Fin. 188. 257 ; S. C. 1 Ves. jun. 220; S. C. (/) Morse v. Boyal, 12 Ves. 373^ 3 B. C. C. 120; Watts v. Syde, 2 per Lord Erskine. Coll. 377; Bauyhv. Price, Cockerell (g) See Murray v. Palmer, 2 Soh. v. Cholmley, Chesterfield v. Janssen, &Lef. 486; J5«M(7A v.Pnce, IWils. Clialmer y. Bradley, Murray y. 320 ; Morse v. Boyal, 12 Ves. 373 ; Palmer, Roche v. O'Brien, ubi Cole Y. Gibson, 1 Ves. 507 ; Roche supra. CH. XVI. S. 3.] CONFIEMATION OF PURCHASE. 473 5. The confirmation must be wholly distinct from and inde- pendent of the original contract (a) — not a conveyance of the estate executed in pursuance of a covenant in the original deed for further assurance (&). 6. The confirmation must not be wrung from the cestui que trust by distress or terror (c). 7. Where the cestuis que trust are a class of persons, as creditors, the sanction of the major part wiU not be obligatory on the rest ; but the confirmation to be complete, must be the joint act of the whole body {d). (o) See Wood v. Downes, IS.Ves. Crowe v. JBallard, Chesterfield v. 128 ; Morse v. Soyal, 12 Tes. 373 ; Janssen, ubi supra. Scott y. Davis, 4 M. & C. 91, 92 ; {d) Sir Q. ColebrooVs ease, cited 'Roberts v. Tunstall, 4 Hare, 267. Bx parte Hughes, 6 Ves. 622 ; Ex (6) SocheY. O'Brien, IB. & B. parte Zacey, id.. 628; the cases cited, 330, see 338 ; Wood v. Downes, 18 id. 630, note (J). Whelpdale v. Ves. 120, see 123 ; and see Fox v. Coohson, cited Campbell v. Walker, Machreth, 2 B. C. C. 400. 5 Ves. 682, must be considered as (p) See Roche v. OBrien, 1 B. & greatly shaken, if not actually oyer- B. 330 ; Dunbar v. Tredennick, ruled. CHAPTER XVII. DUTIES OF TRUSTEES FOR PAYMENT OF DEBTS. , Validity of a We shall first premise a few observations upon the validity ment o/detts. "^ ^ trust for payment of debts. . A trust for this purpose may be created either by will or by act inter vivos. A trust created by will for payment of debts out of personal estate is so far a nullity, that the executor is bound, at all events, to provide for the payment of debts out of the assets in due course of administration, and would not be justified in the breach of this legal obligation by pleading any expression of intention on the part of the testator. It is only as respects any surplus personal estate after payment of debts that the executor ought to regulate his administration by the directions of the wiU. A devise, however, of real estate for payment of debts is, in all cases, unimpeachable, for the statutes that have avoided devises as against specialty {a), and now as against simple contract creditors (b), have expressly excepted devises for payment of debts. Trust created by As to trusts created by act inter vivos, a distinction must be ° ™ "^ " observed between non-traders and traders. Person not a 1. If the settlor be not a trader, and therefore not amenable sudi^aTrastr* ° ^ ^^^ bankrupt laws, he is at perfect liberty to dispose either of the whole (c) or oi part of his property (d), for payment of all{e) (b) 11 G. 4. & 1 W. 4. 0. 47. claim any part -whidh is a damnosa (5) 3 & 4 W. 4. 0. 104. possessio, see Sow v. Kennetf, 3 (c) InglissY. Grant, 5 T. E. 530; Ad. & EU. 659; Carter v. Warne, Nunn v. Wilsmore, 8 T. R. 528, per M. & M. 479 ; West v. Steward, 14 Lord Kenyon ; Pichstoch v. Lyster, M, & W. 47. 3 M. & S. 371 ; Leonard v. Baker, {d) Estwick v. Caillaud, 5 T. E. 1 M. & S. 251 ; see Meux v. Howell, 420 ; Goss v. Neale, 5 Taunt. 19 ; 4 East, 1. What property will pass see Meux v. Howell, 4 East, 1. by general words in a creditor's deed (e) Meux v. Howell, 4 East, 1 ; and whether the trustees can dis- Ingliss v. Grant, 5 T. B. 530; CH. XVn.] VALIDITY OF TEUST, ETC. ^75 or any nwmber of his creditors (a). The argument 'formerly iirged for the invalidity of such a trust was that the 13 Eliz. c, 5. (&) avoided " all alienations contrived of fraud, to delay creditors and others of their just debts," &c. But with respect to a trust for the satisfaction of creditors generally — " How," said Le Blanc, " can it be fraudulent for a person not the object of the bankrupt laws to make the same provision volun- tarily for the benefit of all his creditors which the law compels to be done in the case of a bankrupt trader ? " (c) and if the settlor direct the payment of particular debts only, "It is neither illegal nor immoral," said Lord Kenyon, " to prefer one set of creditors to another " {d). Nor does the creation of such a trust fall within the scope of the act ; for " it is not every feoffment, judgment," &c., said Lord EUenborough, " which will have the effect of delaying or hindering creditors of their debts, &c., that is therefore fraudulent within the statute ; for such is the effect pro tanto of every assignment that can be made by one who has creditors ; every assignment of a man's property, however good and honest the considera- tion, must diminish the fund out of which satisfaction is to be made to his creditor, but the feoffment, judgment, &c., must be devised of malice, fraud, or the like, to bring it within the statute. The act was meant to prevent deeds, &c., fraudulent in their concoction, and not merely such as in their effect might delay or hinder other creditors " (e). . But the act relating to Insolvent Debtors provides, that if InsolTent any insolvent (/) shall voluntarily (g) convey or assign any estate, real or personal, in trust for creditors, every such con- veyance or assignment shall be deemed fraudulent and void as against the assignees, if made " within three calendar months before the commencement of his imprisonment, or with the Pichstock V. Lyster, 3 M. & S. (c) Meux v. Howell, 4 East, 9. 371 ; Leonard v. Baker, 1 M. & S. (d) Estwick v. Caillaud, 5 T. E. 251. 424. (a) Estwick v. Caillaud, 5 T. E. (e) MeuxY.JIoweU,4:'E,aat,\3,14. 420 ; Ifimn v. WiUmore, 8 T. R. (/) The words are, any prisoner 528, per Lord Kenyon ; Ooss v. &c. heing in insolvent circumstances. Jfeale, 5 Taunt. 19; Wood r. Dixie, {g) Stuckey v. Drewe, 2 M. & K. 7 a. B. E. 892. 190 ; Mogg v. Baker, 3 M. & W. (6) Perpetuated 29 Eliz. c. 6. 195 ; 4 M. & W. 348. 476 VAIIDITI OF TEUST. [CH. xvn. Trust attended •with fraud. Tiew or intention of petitioning the Court for his discharge under the act " (a), and a voluntary deed within the three months will be void under this section though made in favour of all the assignor's creditors (6). And in all cases a trust for payment of dehts will be void, if vitiated by actual fraud, as if the debtor by an understanding between him and his trustees be left in possession of the estate, so as to obtain a fictitious credit (c). Voluntary trust. Suppose there is no fraud, but the trust deed is a mere voluntary settlement not founded on any arrangement with the creditors, but for the mere convenience of the debtor himself, so that by the recent decisions it is revocable by the debtor at any time until communicated to some creditor (d) ; in such a case can a creditor, taking out execution, levy his debt upon the property subject to the trust ? It seems, though the deed is voluntary, yet it is not to be considered as fraudulent within the statute 13 Eliz. c. 5, and if so, the creditor cannot reach the property at law (e). However, the Court of Chancery might perhaps hold the deed to be invalid as against the creditor in a court of equity (/). And where the trust was originally good, yet a creditor will not be bound by the arrangement, but may recover his whole debt, if the terms of the composition be not strictly and literally fulfilled; for cujus est dare ejus est disponere, the creditor has a right to prescribe the conditions of his in- dulgence (g). Wlere trust Talid, the terms must be strictly observed. (o) 1 & 2 V. c. 110. s. 59. (J) Jackson v. Garneti, 2 Q,. B. E. 887 ; Thompson v. Jackson, 3 M. & Gr. 621 -,8.0.4: Scott, N. E. 234. (c) Twyne's case, 3 Ee. 80 a; Wilson V. Bay, 2 Burr. 827 ; Hun- gerford v. Earh, 2 Vein. 261 ; Tar- back v. Marhury, 2 Vern. 5]0; Law V. Skinner, "W. Black. Ee. 996 ; and see Worsley v. Dtmattos, 1 Burr. i67 ; Stone v. Gratham, 2 Buls. 218; Pickstock V. Lyster, 3 M. & S. 371; Dutton V. Morrison, 17 Ves. 197. {d) Wallwyn v. Coutts, 3 Mer. 707 ; S. C. 3 Sim. 14 ; Garrard v. Lord Lauderdale, 3 Sim. 1 ; Acion V. Woodgate, 2 M. & K. 492; Kir- wan V. Daniel, 5 Hare, 500; Sar- land V. Binks, 15 Q,. B. E. 713. (e) Pickstock v. Lyster, 3 M. & S. 371 ; Estwick v. Caillaud, 5 T. E. 420. But see Owen v. Body, 5 Ad. & EU. 28. (/) See Mackinnon v. Steward, 1 Sim. N. S. 90, 91. {g) Sewell v. Musson, 1 Vern. 210; Mackenzie v. Mackenzie, 16 Ves, 374, per Lord Eldon ; Leigh v. Barry, 3 Atk. 583, per Lord Hard- wicke ; Ex parte Bennet, 2 Atk. 527, per eundem ; and see Fuller Y. Lance, 7 Yin. Ab. 136. CH. XVII.] TOR PATMENT OF DEBTS. 477 A deed if expressed on the face of it to be voluntary, as for natural love and affection, may yet be proved to have been founded on valuable consideration, and so unimpeachable by creditors. The deed binds as between the parties to it, but does not preclude evidence aliunde as regards third persons {a). 2. If the settlor be a trader, then the case is governed by Trader cannot the operation of the bankruptcy laws. Ser "rtt By the 12 and 13 Vict. c. 106; s. 67 (being a re-enactment ^°'' <''^^^^^- of the previous statutes), it is declared that " any fraudulent grant or conveyance of any lands, tenements, goods, or chattels, with intent to defeat or delay creditors, shall be deemed an act of bankruptcy." It has been adjudged fraudulent within the meaning of this clause, if a trader assign the whole of his property (&) (whether expressed to be the whole or not in the deed (c) ), or all but a colourable part (d), or all the stock, without which he cannot carry on his trade (e); and it is immaterial whether the trust be for anj particular creditor (/), or a certain number of them {g), or all the creditors at large {fi}. («) Gale V. Williamson, 8 M. & W. 405. (6) Nunn v. Wilsmore, 8 T. R. 628, per Lord Kenyon ; Alderson v. Temple, 4 Burr. 2240, per Lord Mansfield ; Hooper v. Smith, W. Bl. Re. 441, per eundem ; Wilson v. Day, 2 Burr. 827 ; Hust v. Cooper, Cowp. 632, per Lord Mansfield ; Bowker v. Burdehin, 12 M. & W. 128. . (e) See Dutton v. Morrison, 17 Ves. 193 ; Lindon v. Sharp, 6 Man. & Gt. 905. But the assignment of all Ms property at a certain, place is not an act of bankruptcy, unless it be proved that he had no other pro- perty. Chase v. Gohle, 2 Man. & Gr. 930. (d) Law V. Skinner, W. Bl. Re. 996; Hooper v. Smith, ib. 442, per Lord Mansfield; Wilson v. Day, 2 Burr. S32, per eundem; Alderson v. Temple, 4 Burr. 2240, per eundem ; Estwich V. Caillaud, 5 T. R. 424, per Lord Kenyon; Gayner's case, cited 1 Burr. 477 ; Compton v. Bedfm-d, W. Bl. Re. 362. (e) Hooper -v. Smith, Bl. Re. 442; Law V. Skinner, W. BL Re. 996; Siebert v. Spooner, 1 M. & W. 714 ; Porters. Walker, 1 Man. & Gr. 686; Ex parte Bailey, 3 De Gex, M. & G. 534 ; Ex parte Taylor, 5 De Gex, M. & G. 392. (/) Wilson v. Day, 2 Burr. 827 ; Hassell v. Simpson, 1 B. C. C. 99; S. C. Doug. 89, note ; Hooper v. Smith, W. Bl. Re. 442, per Lord Mansfield; Worsley v. Demattos, 1 Burr. 467 ; Newton v. Chantler, 7 East, 138. {g) Ex parte Foord, cited Wors- ley y. Demattos, 1 Burr. 477 ; Aider- son V. Temple, 4 Burr. 2240, per Lord Mansfield ; Butcher v. Easto, Doug. 282 ; Devon v. Watts, Doug. 86; Hooper v. Smith, W. Bl. Re. 442, per Lord Mansfield. (A) Kettle V. Hammond, 1 Cooke's B. L. 108, 3rd. edit. ; Eckhardt v. Wilson, 8 T. R. 140 ; Tappenden v. Burgess, 4 East, 230; Dutton v. Morrison, 17 Ves. 199, per Lord Eldon ; Simpson v. Sikes, 6 M. & S. 312. 478 VAIIDITT OF TKUST. [cn. xvn. Grounds of the rule. What concomi- tant circum- stances will not vary the rule. By the assignment of his whole suhstance he hecomes utterly insolvent ; and if the trust be for one or some only of his creditors, it is a fraud upon the rest, and if it be for aU the creditors, it is a fraud upon the spirit of the bankruptcy laws, which require a bankrupt's estate to be under the management of certain commissioners and assignees appointed as prescribed by the legislature — not of persons nominated by the debtor himself, and so more likely to further his views than promote the interest of the creditors (a). But in order to avoid the deed there must be in existence a debt due at the time of its execution (&), and the assignment, though void as against creditors and the assignees in bankruptcy (c), is good as between the parties themselves (d) ; and assignments for valuable consideration, at the fall price, where the purchaser is not party or privy to the fraudulent designs of the vendor, are not acts of bankruptcy and cannot be impeached (e). And where a trader, greatly embarrassed, who had committed acts of bankruptcy, executed a trust deed for the purpose of effecting a conversion of his property and facilitating arrange- ments with his creditors, the deed was held not to be an act of bankruptcy (/). The deed will be an act of bankruptcy, notwithstanding a proviso declaring it void, if the trustees think fit (g), or if all the creditors shall not execute (the acts of the trustees to he good in the mean time) (h) ; or if all the creditors to a certain amount shall not execute by such a time, or a commission of bankruptcy shall issue (i). So it wiU be an act of bankruptcy though the trustees at the time of the execution of the deed did not intend to act upon it (for the fraud must be referred to the animus of (o) See Dutton v. Morrison, 17 Ves. 199; Worsley v. Dematios, 1 Burr. 476 ; Simpson v. Sikes, 6 M. & S. 312. (5) Ex parte Taylor, 5De&ex, M. & G. 392 ; Ex parte Louch, 1 De Gex, 612 ; Oswald v. Thompson, 2 Exch. Re. 215. (c) Doe V. Ball, 11 M. &"W. 531. {d) Bessey v. Windham, 6 Q,. B. Re. 166. (e) Baxter v. Pritchard, 1 Ad. & Ell. 456; Base v. Sayeoch, ib. 460. (/) Greenwood v. Churchill, 1 M. & E. 546. {g) Tappenden v. Burgess, 4 East, 230. (A) Backer. ffoocA, 4 Campb. 232; S. C. Holt, 13. {i) Button V. Morrison, 17 Ves. 193. CH. XTn.] FOR PAYMENT OF DEBTS. 479 the trader) (a) ; and though the trustees induced the debtor to execute it, with the object of making it an act of bankruptcy (&) ; and though the debtor himself meant it to be taken as such (c). But if A., B., and C. agree to execute an assignment as a No act of bank- joint transaction, and A. executes, but B. and C. refuse, then, rannot'been^ as the assignment of A. was made on the footing and faith of ^°''''^'^- B. and C.'s concurrence, and therefore cannot be enforced against A. individually and solely, it is no act of bankruptcy {d). An assignment executed abroad was held to be no act of Assignment exe^ bankruptcy in England (e) : but in this respect the law has '^^^^ ^ '^°^' been altered by statute (/). If any creditors either concur in the assignment (g), or sub- Creditors con- sequently acquiesce in it {h), they cannot afterwards treat it as esd^g^cannot'^™' an act of bankruptcy, for it is not fraudulent as to them. *^^* ^* ^^ f" ^"^ ■^ •' of bankruptcy. Nor can a trust deed which could not have been impeached under a fiat sued out by any creditor be impeached under the bankrupt's own fiat (i). The late Act (fc) has now provided, that where any trader Clause in late within the Act shall execute any conveyance or assignment by deed of all his estate and effects to a trustee or trustees for the benefit of all his creditors, it shall not be deemed an act of bankruptcy, unless a petition for adjudication of bank- ruptcy be filed within three months from the execution thereof ; provided that such deed be executed by every such trustee within fifteen days after the execution thereof by the trader ; (a) Tappenden v. Surgess, 4 East, 142, per Cur, ; JBamford v. Baron, 230. 2 T. R. 594, note (a) ; Tappenden (5) Id. V. Burgess, 4 East, 230, per Lord (c) Simpson v. Sihes, 6 M. & S. Ellenborough ; Ex parte Cawhwell, 295. 1 Rose, 313. (t?) Button V. Morrison, 17 Ves. (A) Ex parte Crawford, 1 Chris. 193, see 202 ; and see Bowher v. B. L. 97, 140 ; Ex parte Low, 1 G. Burdekin, 1 1 M. & W. 128. & J. 84, per Lord Eldon ; Ex parte (e) Norden v. James, 2 Dick. Cawkwell, 1 Rose, 313 ; Ex parte 533 ; Ingliss v. Grant, 5 T. R. Shaw, 1 Mad. 598 ; Back v. Gooch, 530. 4 Camp. 432; S. C. Holt, 13. (/) 6 Gr. 4. c. 16. s. 3, repealed and [i] Ex parte Philpot, De Gex,, re-enacted by 12 & 13 Vict. c. 106, 346 ; Ex parte Louch, id. 463 ; Ex s. 67. parte Lofts, id. 612. ■ {g) Eckhard v. Wilson, 8 T. R. {k) 12 & 13 Vict. o. 106, s. 68. bankrupt act. 48a TRUSTEES FOE PAYMENT OF DEBTS. ' [CH. XVn. Caution to trustees when to act. Trader may assign part in trust for his creditors. Unless he con- templated bank- ruptcy. and that the execution by such trader and every such trustee be attested by an attorney or solicitor ; and that mo tice thereof be given within one month after the execution by such trader, in manner therein specified." If the above requisitions, therefore, be complied with, the trust deed will now be unimpeachable after a period of three months ; but until the expiration of that time the trustees must forbear to act, as all their proceedings may be over- reached by a subsequent adjudication of bankruptcy. How- ever, the trustees may begin the execution of their office even at an earlier day, if they can only satisfy themselves either that all the creditors have concurred or acquiesced in the arrangement, or that such as have not cannot, either col- lectively or individually, prove a debt or debts in the requi- site amount to support an adjudication of bankruptcy. Such is the law aifecting traders where the assignment is of their whole property. If a trader assign part only in trust for creditors, then, if the transaction be fair and bond fide, and in the ordinary course of business, it is not open to objection (a) ; but if the trader contemplated bankruptcy (&), or even thought it probable, though not inevitable (c), and wished to give an undue preference to certain creditors over others, it is fraudulent within the meaning of the statute, and consti- tutes an act of bankruptcy. Before proceeding to the duties of trustees, it may be con- venient to enlarge upon the two distinct classes into which [a] Hale v. Allnut, 18 Com. B. Re. 505 ; Wheelwright v. Jackson, 5 Taunt. 109 ; Hartshorn v. Slodden, 2 B. & P. 582 ; Fidgeon v. Sharp, 5 Taunt. 539; Small y. Oudley, 2 P."W. 427 ; Coch v. Goodfellow, 10 Mod. 489 ; Compton v. Bedford, 1 "W". Bl. 362, per Lord Mansfield ; Hooper v. Smith, 1 W. Bl. 441 ; Alderson v. Temple, 4 Burr. 2240, per Lord Mansfield ; Wilson v. Dag, 2 Burr. 830, per eundem ; ib. 831, per Fors- ter and Wilmot ; Jacob v. Shepperd, cited Worsleg v. Demattos, 1 Burr. 478 ; Harman v. Fisher, Cowp. 123, per Lord Mansfield; Rust v. Cooper, Cowp. 634, per eundem; Ex parte Scudamore, 3 Ves. 85 ; and see Fstwich v. Caillaud, 5 T. E. 424; Newton v. Chantler, 7 East, 144. (6) lAnton V. Bartlet, 3 Wils. 47 ; Morgan v. Horseman, 3 Taunt. 241 ; Alderson v. Temple, 4 Burr. 2238; Round v, Bgde, 1 Cooke, B. L. 114, 3rd ed. ; Devon v. Watts, Doug. 86; Pulling v. Tucker, 4 B. & A. 382; Harman v. Fisher, Cowp. 117. (c) Poland v. Olyn, 2 D. & E. 310 ; Guthrie v. Crossley, 2 C. & P. 301. CH. XVn.] ■ TEUSTEES FOR PAYMENT OF DEBTS. 481 trusts for payment of debts may be divided, viz. : Trusts irre- vocable and Trusts revocable. 1. The existence of a debt is always a sufficient consider a- Irrevocable tion to support an assurance ; and therefore if A. be indebted to B., and convey an estate to him by way of security, the deed, though no money passed at the time, cannot be revoked, but B. may insist on the benefit of it. And if the creditor be not a party to the deed, yet if, by arrangement between him and the debtor, an estate is vested in a trustee for securing the debt, he can enforce the trust (a). Even where a debtor entered into an arrangement with three of his creditors, and in pursuance thereof, by a deed between himself of the first part, the three creditors of the second part, and his other creditors of the third part, conveyed all his real and personal estate to the three creditors, in trust for themselves and the other creditors, it was held that the intention was to make the creditors cestuis que trust, and that the deed was irrevocable ; and no distinction was taken between the three creditors and the other creditors, although the latter apparently had not been in communication with the debtor previous to the deed, and had not executed it until some time afterwards (b). 3. On the other hand, if a debtor, without communication Revocable trusts. with his creditors, and, indeed, only from motives of personal convenience, as on going abroad (c), vest an estate in trustees upon trust to pay his debts, such a deed confers no right upon the creditors who are neither parties nor privies, and the debtor may at any time, at his pleasure, revoke or vary the trusts, or call for the re-transfer of the property (d). And if two persons have different interests in the same estate, and they, by arrangement between themselves, but without commu- nication with any creditor, convey the property to trustees, upon trust to pay the debts of either party ; here, though each may enforce the trust as against the other, yet the creditor, as he neither required the security, nor was an object of bounty, [a) WildmffY.Ilichards,lColl.66l. {d) WalwyriY. Coutts, 3 8im.l4:; {b) Mackinnon v. Stewart, 1 Sim. 3 Mer. 707 ; Smith v. Keating, 6 N. S. 76. Com. B. Ee. 136 ; Aeton v. Wood- (c) Cornthwaite v. Frith, 4 De gate, 2 M. & K. 492 ; Browne v. Gez & Sm. 552. Cavendish, 1 Jon. & Lat. 606. derdale. 482 TRUSTEES FOE PAYMENT OF DEBTS. [CH. XVII. cannot compel the execution of the trust in his own favour (a). And a fortiori, this is the case if the payment of the debt is to be made only on the request of the settlor (6). But, of course, the trust cannot be revoked by the settlor, so as to defeat or prejudice what the trustees may have previously done in the due execution of the trust (c). Garrard v. Lau- In Garrard V. Lauderdale, the Duke of York, by indenture between himself of the first part, and trustees of the second part, and the creditors of the third part, conveyed certain property to trustees upon trust for his creditors, and upon the execution of the deed a circular to that effect was sent to each of the creditors. Here there was ground for contending that, as the creditors had been induced by the notice to forbear suing the settlor, they had acquired a right to the execution of the trust, but Sir L. ShadweU, observing that the receipt of the circular was not admitted, and that, if received, . yet the creditors had not refrained from suing, as they had proved against the Duke'^ estate, decided that the creditors had no equity to enforce the trust {d), and the decree, on appeal to Lord Brougham, was af&rmed (e). The authority, however, of this case has, on several occasions, been questioned (/) ; and Lord St. Leonards on one occasion observed he should be sorry to have it understood that a man may create a trust for creditors, communicate it to them, and obtain from them the benefit of their lying by until perhaps the legal right to sue was lost, and then insist that the trust was wholly within his power (g). There can be little doubt that upon the general principles of equity the settlor, by giving notice to the trusteeSj and by subsequent conduct, may confer on the creditors a right which they did not originally possess (h). And indeed it has now been (a) OibbsY. Glamis, 11 Sim. 584; Sm. 552; Stone y. Van Heythuysen, Simmonds\. PaUes,23on.&Ija.tA89. Kay, 727. (5) Hvans v. Bagwell, 2 Con. & (f) SeeActonY. WoodgatejZU. & Laws. 612. K. 495; Kirwan v. Daniel, 5 Hare, (e) Wilding v. Richards, 1 Coll. 499 ; iSimmonds v. Palles, 2 Jon. & 655, see 659 ; and see Kirwan v. Lat. 495, 504. Daniel, 5 Hare, 493. {g) Browne v. Cavendish, 1 Jon. (d) 3 Sim. 1. & Lat. 635 ; 7 Ir. Eq. Rep. 388. (e) 2 Russ. & Myl. 451 ; and see (A) Perhaps the old case of Zang- Cornthwaite v. Frith, 4 De Gex & ton v. Tracy, 2 Ch. Rep. 30, was CH. Xvn.] TRUSTEES FOE PAYMENT OF DEBTS. 483 decided that if property be assigned to a trustee, and he takes possession of it, and communicates with certain of the creditors, who express their satisfaction, the trust is irrevocable (a). In one case, where property was vested in a trustee for ere- Wilding v. ditors, and the trustee was a surety for some of the debts, it was held that, though the trust was revocable as to the general creditors, yet the trustee himself was not bound to reconvey the estate until the suretyship was satisfied (6). It does not clearly appear from the authorities what is the Nature of the precise nature of a revocable trust of this kind. The instru- ment is sometimes called a deed of agency, and if so, the trust must be considered at an end at the death of the settlor, and the property, so far as it has not been applied, must be administered as part of the settlor's assets (c). It is perfectly clear that the trust is not regarded as revocable only during the life of the settlor, so as to give a vested interest to the creditor after his death, for it has been held that the creditor has no more equity to enforce the trust after the settlor's death than in his hfetime (d). The Courts at the present day consider the doctrine under Doctrine not which these deeds have been held revocable to have been carried tended. far enough, and have expressed a disinclination to extend it (e). We now proceed to the duties of trustees for payment of Duties of trustees, debts, and upon this subject we shall consider, 1, What debts are to be paid ; 2, In what order as regards priority ; and, 3, What interest is to be allowed. 1. What debts are within the scope of the trust. If the trust be created by deed, then, unless a contrary inten- Detts to be paid decided oa this principle, for it Eay & Johns. 18. appears that Tracy, the trustee, (6) Wilding v. Richards, 1 CoU. declared to the creditors that he 655 would pay the debts, and that some (c) Wilding v. Richards, 1 CoU. of the debts were actually paid, 655. under the deed. The creditors may (d) Garrard v. Lauderdale, 3 also have been privies though not Sim. 1. parties to the execution of the trust, (e) Wilding v. Richards, 1 Coll. for it is stated that the settlor eie- 659 ; Kirwan v. Daniel, 5 Hare, cuted the deed to avoid prosecution 499 ; Simmonds v. Palles, 2 Jon. against him by his creditors. & Lat. 495, 504 ; Brown v. Caven- (a) HarlandY. Sinks, 15 Q,. B. dish, 1 Jon. & Lat. 635; Evans v. Rep. 713 ; Nicholson v. Tutin, 2 Bagwell, 2 Con, & Laws. 616. I I 2 484 TEUSTEES FOE PAYMENT OF DEBTS. lch. xvn. are primS. facie those at date of deed or death of testator. Debts barred by Statute of Limi- tations. Lord St. John v, Boughton. tion be expressed, the debts only at the date of the deed will be intended (a); but if the provision be containedin a -will, the direc- tion will include all debts at the testator's death ; unless he spe- cially restrict his meaningto the debtsat the making of his will (6). If a settlor convey all his real and personal property upon trust to pay " all debts then owing by him, and which affect the estates thereby conveyed ; " the trust, if the settlor have no judgment debts at the time, will be extended to bond debts, but not to simple contract debts (c). A direction for payment of debts will not revive a debt barred by the Statute of Limitations (d), though the trustee or exe- cutor may have advertised for all creditors to come in and prove their debts (e). But if the claim be not barred at the date of the deed or the death of the testator, the statute will not run afterwards (/) ; for it is not to be inferred that a man abandons his debt because he does not enforce pa.yment at law when he has a trustee to pay him (g). Besides, unless delayed of necessity, the trustee ought to discharge the debt at once, and the universal rule is, that the cestui que trust ought not to suffer for the laches of the trustee (h). By the 40th section of the late Statute of Limitations (i) it is declared, that " no action, suit, or other proceeding shall be brought to recover any sum of money charged upon or payable out of any land at law or in equity, but within twenty years next after a present right to receive the same accrued to some person capable of giving a discharge for or release of the same, unless, in the mean time, some part thereof, or of the interest thereon, shall have been paid, or some acknowledgment of the right thereof shall have been given in writing, signed by the person by whom the same shall (a) Purefoyy. Purefoy, 1 Vern. 28. (J) Loddington v. Kime, 3 Lev. 433. (c) Douglas v. Allen, 1 Con. & Laws. 367 ; 2 Drur. & War. 213. ((i) Burhe v. Jones, 2 V. & B. 275, where all the cases are collected. (e) Jones v. Scott, 1 E. & M. 255 ; 4 CI. & Fin. 382 ; overruling Andrews v. Brown, Pr. Ch. 385. (/) Hughes v. Wynne, 1 T. & E. 307 ; Crallan v. Oulton, 3 Beav. 1 ; Hargreaves v. Michell, 6 Mad. 326 ; Executors of Fergus v. Oore, 1 Soh. & Lef. 107 ; and see Morse V. Langham, cited Burke v. Jones, 2 V. & B. 286. [g) Hughes v. Wynne, 1 T. & R. 309, per Cur. {h) See Executors of Fergus v. Gore, 1 Soh. & Lef. 110. (t") 3 & 4 W. 4. 0. 27. CH. XVn.J TRUSTEES FOR PAYMENT OF DEBTS. 485 be payable, or his agent." Upon the construction of this clause it was held, that where a testatrix had devised an estate to trustees upon trust to sell and pay debts, but no part of the produce of sale had been set apart for that purpose, the right of the creditor was not within the exception of the 25th sec- tion, but fell under the 40th section ; but inasmuch as the debt had been acknowledged by the surviving trustee, that was sufficient to take the case out of the statute {a). But the opi- nion of the Vice- Chancellor that the case was not within the 25th section cannot, it is conceived, be supported. The right of the creditor would subsist until adverse possession had run against his trustee (6). The rule that the creation of a trust keeps alive a debt not But not as re- barred at the testator's death does not apply to a trust declared pereonalty. of personal estate by will, for the personalty vests in the exe- cutor upon trust for the creditors by act of law, so that the words of the will are nugatory (c). The terms of the trust will extend. to the repayment of a Debt contracted ^ •' by infant for sum of money borrowed by an infant for the purchase of necessaries. necessaries (d) . Shall nmortqaqee who has a covenant for payment of his Case of a mort- ^ ^ _ . . gagee with a debt be allowed to prove and receive a dividend upon the whole covenant for amount of his debt pari passu with the other creditors, or shall he prove only for the excess of the debt beyond the value of the security, or what rule is to govern the case ? In bank- ruptcy, the mortgagee proves only for the excess of the mort- gage debt over the value of the security, so that he must first dispose of the estate, (with the concurrence of the trustees to pass the equity of redemption), and then prove for the differ- ence. But in the administration of assets by Courts of equity, a mortgagee is allowed to prove for his whole debt without being put on terms as to his security (e). The trust deed usually provides for the case of persons having specific liens, and (o) Zord St. John v. Boughton, 499 ; Evans v. Tweedy, 1 Beav. 55. 9 Sim. 219. {d)MarlowY.Pitfield,\'S.W.5b^. (5) See infra as to th.e Statutes of (e) See Greenwood v. Taylor, \ Limitation. 1 E. & M. 185 ; Maion v. Bogg, 2 (c) Jones v. Scott, 1 R. & M. M. & C. 443 ; Borne v. Young, 4 T. 255; reversed, 4 CI. & Fin. 382; & C. 204 ; jS«»man v. iJj7ey, 9 Hare, Freake v. Cranefeldt, 3 M. & C. App. xli. 486 TEUSTEES FOE PAYMENT OP DEBTS. [CH. XVII. Trust for credi- tors Trho come in within certain time. Trustee cannot arbitrarily admit a creditor who has repudiated the deed. Discretion in ingrafts the principle established in bankruptcy ; but if there be no such clause, and if the deed provide that the creditor shall release his debt and all securities for the same, the mort- gagee, by executing the deed, binds himself to the other creditors, notwithstandiag any private arrangement with the debtor to the contrary, that he will not take advantage of his specific lien, but will bring it into the common stock and prove for his whole debt, and accept a dividend pari passu with the rest {a). " It is established," said Lord Langdale, " by a series of decisions, that a creditor cannot ostensibly accept a compo- sition and sign the deed which expresses his acceptance of the terms, and at the same time stipulate for, or secure to himself, a peculiar and separate advantage which is not expressed upon the deed " (&). " The moment," observed Lord Lyndhurst, " a creditor releases his debt, which he does by executing a deed of this kind, there is, of course, an end of any lien he may have for it " (c). But though the word " release " be used in the deed, it will not necessarily operate as an absolute and unconditional release, if the whole contents of the instrument, when taken together, show that such was not the intention (cZ). If a trust be for payment of such creditors as shall come in within a year, it seems a creditor who delays beyond the year is not therefore precluded from taking advantage of the trust, but the clause is regarded as directory only (e). But a creditor who repudiates the deed by his acts, as by suing the debtor contrary to the provisions of the deed, will not be allowed afterwards (more particularly after a long lapse of time) to retrace his steps and take the benefit of the deed ; and though the trustee admit him to sign the deed, the other creditors will not be bound by the act of the trustee (/). A discretion is sometimes given to the trustees to admit or (a) CulUngworth v. Lloyd, 2 Beav. 385; Buch v. Shippam, 1 Phil. 694; 14 Sim. 239. (6) CulUngworth v. Lloyd, 2 Beav. 391. (c) Buch v. Shippam, 1 Phil. 697. {d) Squire v. Ford, 9 Hare, 47. (e) Bunch v. Kent, 1 Vein. 260 ; and see Collins v. JReece, 1 Coll. 675 ; Jolly V. Norton, SEa^. 228; Maworth V. Parher, 2 Kay & Johns. 163; SpoUiswoode v. Stochdale, Coop. 102 ; but see Emmet v. Bewhurst, 3 Mac. & Gor. 587. (/) Field Y. Bonoughmore, 1 Dru. & War. 227 ; reversing the decision of Lord Plunkett, 2 Dru. & "Walsh. 630. CH. XVII.j TRUSTEES FOE PAYMENT OP DEBTS. 487 exclude such creditors as they shall think proper. The Court trustees to admit wiU endeavour, if possible, to withdraw the rights of the ere- "'^^ » """sc "ns. ditors from the caprice of the trustees (a) ; but if the settle- ment clearly give such a discretionary power, and the trustees are willing to exercise it, and no fraud be found, the Court cannot interfere to compel the admission of any particular creditor (b). If the trustees have a power of enlarging the time and adver- EeKef in equity, tise to that effect, but do not exercise the power, and so exclude a person who desired to come in, but could not do so before the day named in the deed, the creditor will be relieved in equity (c). If there be trustees for payment of debts and legacies, and Resumption by _ trustees of pos- subject thereto upon trust for A. for life with remainder over, session after and the Court has taken an account of debts and legacies, and declared A. entitled to the possession, who is put in possession accordingly, it is not competent for the trustees afterwards to make an admission of some further debt, and to resume the possession in order to discharge it (d). 2. As to the order of payment. Where the trust is created by will, the direction generally Creditors paid is for payment of "debts and legacies." As regards the admi- nistration of assets, creditors take precedence of legatees ; but here, as both take under the will, and the testator has made no distinction, it seems, upon strict principle, as was formerly held, that creditors and legatees ought to be paid pari passu (e). However, there can be little doubt, that the testator, although he may not have expUcitly declared it, meant the creditors to precede, and the Courts accordingly (rather straining a point, that a man might not " sin in his grave ") have now indisputably established that creditors shall have the priority (/). (a) See JSTunn v. Wihmore, 8 T. 482 ; Anon. 2 Vern. 133 ; Powell's E. 521. case, Nels. 202; Wolestoncroft v. (6) Wain v. Egmont, 3 M. & K. Long, 1 Ch. Ca. 32 ; and see Walker 445. V. Meager, 2 P. W. 552. (c) Raworth v. Parker, 2 Kay & (/) Greaves v. Powell, 2 Vern. Johns. 163. 248, 302, Raitliby's ed. ; Bradgate {d) Underwood v. Satton, 5 Beav. v. Ridlington, Mose. 56 ; 1 Eq. Ca. 36. Ab. 141, pi. 3; Walker v. Meager, (e) Hixon v. Wytham, 1 Ch. Ca. 2 P. W. 550 ; Martin v. Hooper, 248 ; Gosling v. Dorney, 1 Vern. Eep. t. Hardwicke, by Ridgw. 209 ; 488 TEUSTEES FOE PAYMENT OF DEBTS. [CH. XVn. All creditors to be paid pari jiassv,. Specialty cre- ditoi's. Case of trustee being also exe- cutor. As amongst the creditors themselves, the Court acts upon the well-known principle that " equality is equity," and, there- fore, whether the trust be created by deed (») or will (6), the specialty debts in the absence of express directions to the contrary will have no advantage over simple contract debts, but all will be paid in rateable proportions ; and, of course, the trustees will not be allowed to break in upon this rule by first discharging their own debts (c). It was formerly ruled, that where a testator charged his freehold estate with debts, and the estate subject to the charge descended to the heir, the specialty creditor had precedence, for it was argued he had his remedy at law against the heir independently of the will, and therefore ought not to be put on a level with those taking under the wiU {d). The answer is, that the specialty creditor has no lien upon the estate, but can only recover the debt from the heir personally to the extent of the assets descended. If the estate be subject to the charge, the heir takes not beneficially but only as trustee, aiid then there are no legal assets in consideration of equity, and the bond creditor may be injoined from pursuing his legal right ; and on. these grounds it has been decided that specialty debts are not entitled to a preference (e). It was also thought at one time, that if the estate charged with the debts was to be administered by the executor, the testator must have meant that the executor should, as in his executorial capacity, observe the legal priorities (/) ; however, there was no reason, in fact, why the characters of trustee and Whitton v. Lloyd, 1 Ch. Ca. 275 ; Foly's case, 2 Freem, 49 ; Kidney V. Coussmaher, 12 Ves. 154, per Sir W. G^rant ; Peter v. Bruen, cited 2 P. "W. 551 ; Lloyd v. Williams, 2 Atk. Hi, per Lord Hardwicke. (a) Wolestoncroft v. Long, 1 Ch. Ca. 32 ; Hamilton v. Houghton, 2 Bligh, 187, per Lord Eldon ; Child v. Stephens, 1 Vern. 101. (6) Wolestoncroft v. Long, 1 Ch. Ca. 32 ; Anon. 2 Ch. Ca. 64 ; &c. (e) Anon. 2 Ch. Ca. 54. {d) FremouU v. Dedire, 1 P. "W. 429; Young v. Bennet, 2 Dick. 452 ; BUtch v. Wilder, 1 Atk. 420; Allam Y. Heber, Str. 1270; -S. C. W. Black, 22 ; and see Plunhet v. Benson, 2 Atk. 290. (e) Shiphard v. Lutwidge, 8 Ves. 26 ; Pope v. Gwyn, cited ib. 28, note ; Bailey v. Ekins, 7 Ves. 319 ; Batson v. Lindegreen, 2 B. C. C. 94 ; Hargrave v. Tindal, cited N'ewton v. Bennet, 1 B. C. C. 136, note. (/) Girling v. Lee, 1 Vern. 63 ; Cutterhach v. SmUh, Pr. Ch. 127 ; debts. CH. XVn.] TRUSTEES FOR PAYMENT OF DEBTS. 489 executor should not be united in the same person without confusion, and so it has since been determined (a). But if the trust be expressly to pay the settlor's debts " according to their priority, nature, and specialty," a bond-debt with interest is payable before a simple contract debt (6). 3. As to allowance of interest. Whether the trust be created by deed (c), or wUl (d), and though Interest not the fund has been making interest (e), the trustees will not be p^ contract justified in paying interest upon simple contract debts ; and a fortiori, this is the case where interest is expressly directed as to some particular debts (/). Where the trust was by deed, but the creditors had not been made parties, Lord Eldon observed, " The mere direction to pay a debt does not infer either contract or trust to pay interest upon debts by simple contract. As to contract, the creditors did not execute the deedj and there was nothing to prevent their suing the debtor after the execution, and no consideration was given to the debtor by charging the land and discharging the person "(g). And Lord Hardwicke said (though under the altered state of the law the observation loses its force) it would be mischievous to hold that the trust should make the simple contract debts carry interest ; for if the trust were to change the nature of the debts and burden the estate with interest, it would frighten people from doing justice to creditors Qi). It was once suggested by Lord Bichham v. Freeman, ib. 136 ; {d) Lloyd v. Williams, 2 Atk. Masham v. Harding, Btmb. 339 ; 108 ; Stewart v. Noble, Vern. & Foly's case, 2 Preem. 49. Soriv. 528 ; Dolman v. Pritman, 3 (a) Browse v. Abingdon, 1 Atk. Ch. He. 64 ; Nels. 136 ; Freem. 133 ; 482 ; Newton v. Bennet, 1 B. C. C. Bath v. Bradford, 2 Ves. 588, per 135; Silk v. Prime, ib. 138, note; Lord Hardwicke; and see Tait v. S. C. 1 Dick. 384; Bewin-v. Oheley, Northwich, 4 Ves. 816. Bothomly 2 Atk. 50 ; Barker v. Boucher, 1 v. Fairfax, 1 P. W. 334, note ; B. C. C. 140, note. Maxwell v. Wettenhall, 2 P. W. 26 (h) Passingham v. Selby, 2 Coll. ed. by Cox, are overruled. 405. (e) Shirley v. Ferrers, 1 B.C. C. (c) HamiltonY. Houghton, 2 Bligh, 41 ; but see Pearce v. Slocombe, 3 169, see 186; Car v. Burlington, 1 T. & C. 84. P. "W. 228, as corrected in Cox's ed. ; (/) Jenkins y. Perry, 3 T. & C. Barwell v. Parker, 2 Ves. 364; 178. Shirley v. Ferrers, 1 B. C. C. 41 ; {g) Hamilton v. Houghton, 2 and see Stewart v. Noble, Vern. Bligh, 186. & Seriv. 536 ; Creuze v. Hunter, [h) See Barwell v. Parker, 2 2 Ves. jun. 165 ; & C. 4 B. C. C. 319. Ves. 364 ; Bath v. Bradford, ib. 58S. 490 TRUSTEES FOR PAYMENT OF DEBTS. [CH. XVH. Abinger that "if a man execute a trust of a term for the benefit of his creditors, the deed makes them mortgagees if they execute it, and so gives them a right of interest "{a). And it was held in some old authorities, that even in a deed to which the creditors were not parties, or in a trust created by will for payment of debts, the creditors were to be regarded as mortgagees and were entitled to interest (&) ; but the doctrine in these cases has long since been overthrown, and it is apprehended that even the distinction taken by the Chief Baron cannot at the present day be supported (c). Again, it was said by Lord Hardwicke that " if a man hy deed in his life creates a trust for payment of his debts, annexes a schedule of some debts, and creates a trust term for the payment, as that is in the nature of a specialty, it will make these, though simple contract debts, carry interest "{d). But this dictum also is not in conformity with the law as now established, and cannot be maintained (e). Pearoe v. But where A. and B. assigned their joint property to C, D., and E. upon trust, in the first place to pay ^e joint debts at the expiration of a year from the date of the assignment, arid then as to a moiety to pay the separate debts of A., and at the end of a year sufficient assets were realised to have discharged the joint debts, but the money, instead of being so applied, was invested in the funds and the interest accumulated, it was held, that as the fund applicable to the payment of the joint debts had been making interest from the time the debts should have been paid, the joint creditors, though on simple contract, were entitled to interest at 4 percent, before the separate creditors were paid their principal. The separate creditors would other- wise try to impede the general settlement, that, in the mean time, they might enjoy the interest from the joint creditors' fund(/). (a) Jenkins v. Perry, 3 T. & C. to interest from the date of the decree 183. out of any surplus assets after paying (J) Maxwell v. Wettenhall, 2 P. all debts, and the interest of such as "W. 27 ; Car v. Burlington, 1 P. W. by law carry interest. 229. [d) Barioell v. Parker, 2 Ves. 364. (c) Barwell v. Parker, 2 Ves. 364. (e) Stone v. Van Heythuysen, Kay, It must be borne in mind, however, 721 ; Clowes y. Waters, 16 Jur. 632. that the 46th Order of August, 1841, (/) Pearce y. Slocomhe, 3 Y. & givessimple contract creditors a right C. 84. CH. XVII.] TRUSTEES FOR PAYMENT OP DEBTS. 491 Of course the creditors may stipulate for payment of inter- Creditors may stipvdate for est, or the settlor, if so minded, may insert such a direc- interest. tion (a). But a trust for payment of specialty and simple con- tract debts and all interest thereof, will not amount to such a direction, but the words will be taken to have reference to the debts carrying interest of their own nature (&). Specialty debts, though actually released by a creditor's deed. Specialty detts. will carry interest up to the time of payment. It might be urged, indeed, that as regards specialty debts the amount of the debt is the principal and interest ; and therefore in a trustfor payment of debts interest as well as principal must be taken into calcula- tion to ascertaia what the debt is at the date of the deed or the death of the testator; but that interest ought not to run beyond the date of the trust deed or the death of the testator, for that principal and interest together are then regarded as one sum, not as a debt but an interest of a cestui que trust. And some principle of this kind appears to have been acted upon in the case of Car v. Burlington (c), where a person vested estates in trustees upon trust to pay all such debts as he should owe at his death, and the Court directed the Master to calculate interest on such of the debts as carried interest up to the death of the settlor ; but the Master was not to carry on any interest on any security beyond the settlor's decease, but in case there were assets to pay the simple contract debts as well as the specialty debts, the question of ulterior interest was reserved. At the present day, however, the rule is to consider the specialty debt as subsisting up to the time of payment, i. e. to calculate interest on the principal not only up to the date of the deed or the death of the testator, but up to the day of payment (d). Bond creditors, it must be observed, will not be entitled to Bond creditors receive more for principal and interest than the amount of the interest beyond penalty (e). ^'^^ P^'^^y- [a) See £ath v. Bradford, 2 Ves. Cox's ed. from Reg. Lib. 588; Barwell v. Parker, ib. 364; (d) Bateman v. Margerison, 16 Stewart v. Noble, Vern. & Scriv. Beav. 477. 536. (e) Hughes v. Wynne, 1 M. & K. (J) TaitY. Nort'hwich,'iYes.U&. 20; Anon. 1 Salk. 154; Clowes v. (c) IP. "W. 228, as corrected in Waters, 16 Jur. 632. CHAPTER XVIII. THE DUTIES OF TRUSTEES OF CHARITIES. Charities by cliarter. Visitor. Jurisdiction of the Court of Chancery oTer corporate bodies. Charities are either estabKshed by charter, as eleemosynary corporations, or are under the management of individual trustees. Before entering upon the duties of trustees for charities, it may be proper to introduce a few preliminary remarks upon the subject of the Gowii's jurisdiction over charities established by charter. On the institution of such a charity a visitatorial jurisdiction arises of common right to the founder, whether the king or a private person, and his heirs, or to those whom the founder has substituted in the place of himself and his heirs (a) ; and the office of visitor is to hear and determine all differences of the members of the society amongst themselves, and generally to superintend the internal government of the body, and to see that all rules and orders of the corporation are observed (6). The visitor must take as his guide the statutes originally pro- pounded by the founder (c) ; but so long as he does not exceed his proper province, his decision is final, and cannot be ques- tioned by way of appeal {d). With this visitatorial power the Court of Chancery has nothing to do : it is only as respects the administration of the corporate property that equity assumes to itself any right of (o) Eden V. Foster, 2 P. W. 326, resolved ; Attorney- General v. Gaunt, 3 Sw. 148. (J) See Philips v. Bury, Skin. 478; Attorney-General Y. Crooh, 1 Keen, 126; Attorney-General v. Archbishop of York, 2 R. & M. 468; In re Birmingham School, Grilb. Eq. Rep. 180, 181. (c) Green v. JRutherforth, 1 Ves. 469, per Sir J. Strange; id. 472, per Lord Hardwioke. {d) St. John's College, Cambridge, V. Todington, 1 Burr. 200, per Lord Mansfield; Attorney- General v. Locke, 3 Atk. 165, per Lord Hard- wioke; Attorney-General v. The Master of Catherine Hall, Cam- bridge, Jao. 392, per Lord Eldon. CH. XVm.l VISITATOEIAL POWER. 493 interference. " If," said Lord Commissioner Eyre, " the governors established for the regulation of a charity are not- those intrusted with the management of the revenue, the Court has no jurisdiction: let the charity be ever so much abused, as far as respects this Court the abuse is without a remedy; but if those established as governors have also the manage- ment of the revenue, the Court does assume a jurisdiction of necessity so far as they are to be considered as trustees of that revenue "(a). " There are two sorts of authorities," said Lord Hardwicke, " one as to the management of the estate and revenue, the other as to the management and government of of the house. In the latter the governors are absolute, and not controllable by the Court of Chancery; but so far as relates to the estates of the charity, they are subject and accountable to this Court "(&). Upon the ground of this distinction between the visitatorial Informal eleo- power and the management of the revenue, an information for the removal of governors or other corporators, as having been irregularly appointed, would be dismissed with costs (c) ; but Mal-administra- tion. wherever the administration of the property by the governors can be shown to have a tendency to pervert the end of the institution, the Court will immediately interpose, and put a stop to such wrongful application (d). (a) Attorney- General v. The 5 Sim. 578 ; Attorney- General v. Governors of the Foundling Hos- Browne's Hospital, 17 Sim. 137. 2 Ves. jun. 47. But note, (e) Attorney-General v. Earl of Chief Baron Richards once observed, Clarendon, 17 Ves. 491, see 498; he had been of counsel in the Found- Whiston v. Dean 8f Chapter of So- ling Hospital case, and he remem- Chester, 7 Hare, 532; Attorney- Ge- bered some of the first men of the bar neral v. Dixie, 13 Ves. 519 ; Attor- were not satisfied with the decision. ney- Generaly. Middleton, 2Ves. 327, In re Chertsey Market, Q'Svioe, 212. see 330 ; Attorney-Generals. Dul- (b) Attorney- General v. Lock, loich College, 4 Beav. 255 ; Attorney- 3 Atk. 165; and see upon this General v. Magdalen College, Oxford, subject Ex parte Berkhampstead 10 Beav. 402 ; Attorney-Generals. Free School, 2 V. & B. 138 ; The Corporation of Bedford, id. 505 ; In Poor of Chelmsford v. Mildmay Duke, 83; Attorney- General v, Earl of Clarendon, 17 Ves. 499 Eden v. Foster, 2 P. W. 326 Attorney- General v. Dixie, 13 Ves, 5.33, 539; Attorney- General y. Cor poration of Bedford, 2 Ves. 505 re Bedford Charity, 5 Sim. 578. (d) See Attorney- General v. St. Cross Hospital, 17 Beav. 435 ; At- torney-Generals. The Governors of the Foundling Hospital, 2 Ves. jun. 48; Attorney- General v. Earl of Clarendon, 17 Ves. 499. 494 VISITATOEIAL POWER. [CH. xvni. How property newly giTen affected by the ■visitatorial power. Green ». Euther- forth. An estate newly bestowed upon an old corporation is not to -be regarded in the same light as property with which the charity was originally endowed. The visitatorial power is forum domesticum — the private jurisdiction of the founder; and the new gift will not be made subject to it, unless the will of the donor be either actually expressed to that effect, or is to be collected by necessary implication (a). If a legal or equi- table interest be given to a body corporate, and no special purpose be declared, the donor has plainly implied that the estate shall be under the general statutes and rules of the society, and be regulated in the same manner as the rest of their property (h) : but if a particular and special trust be annexed to the gift, that excludes the visitatorial power of the original founder ; and the Court, viewing the corporation in the light of an ordinary trustee, will determine aUthe same questions as would have fallen under its jurisdiction had the adminis- tration of the fund been intrusted to the hands of individuals. Thus in Green v. Rutherforth (c) an advowson was devised to St. John's College, Cambridge, upon trust, when the church should become void, to present " the senior divine then feUow of the College." A dispute arose as to the true interpretation of the words ; and had the direction been contained in the statutes of the College, the construction would have fallen under the visitatorial province ; but as the property was a new donation, it was held the question was determinable in the forum of the Court of Chancery. " A private person," it was said, " would have been compellable to execute the will, and, considered as a trust, it made no difference who were the trustees. Though here they were a collegiate body whose founder had given a visitor to superintend his own bounty, yet, as regarded one claiming under a separate benefactor, the Court would look on them as trustees, and would compel them to execute the intent under the direction of the Court [d). The visitor, whose judgment must be founded on the statutes, could (a) Green v. Rutherforth, 1 Ves. 472, per Lord Hardwicke. (i) Id. 473, per eundem ; Hx parte Inge, 2 R. & M. 596, per Lord Brougham ; Attorney- General v. Clare Sail, 3 Atk. 675, per Lord Hardwicke. (c) 1 Ves. 462. (d) 1 Ves. 468, 473. CH. XVin.] TEUSTEES OP CHAEITIES. 495 not execute the trusts of the will, for that would be departing from the statutes ; and the adhering to the statutes would be adding further circumstances to the trust than the testator pre- scribed, andmaking it the founder's will, and notthetesta-tor's "{a). But even the visitatorial power may, under particular cir- Cases where the cumstances and in a special manner, be exercised by the Lord power may be Chancellor ; for the Crown may be visitor by the terms of the L^'ord^ncelbr foundation, and if the heir of the founder cannot be dis- covered (fo), or become lunatic (c), the visitatorial power, rather than the corporation should not be visited at all, will result to the Crown. In civil corporations the King is visitor through the Court of Queen's Bench; for corporate bodies which respect the public police of the country and the administration of justice, are necessarily better regulated under the superin- tendence of a court of law : but as regards eleemosynary corpo- rations the King's visitatorial power has been committed to the Lord Chancellor, as in matters of charity the more appro- priate supervisor (d). And the mode of appHcation to the Lord Chancellor in these cases is by petition to the Great Seal (e). We proceed to the consideration of the duties of trustees of charities. It is of course imposed upon the trustees whether indi- Fund must be . . 1 1 ■ f -, applied to the viduals or a corporation, not to convert the charity iund to charity pre- other uses than according to the intent of the founder or ^°" donor; so long as those uses are capable of execution (/). Thus if the gift be to find a preacher in Dale, it would be a breach of trust to provide one in Sale ; or if it be to find a preacher, and the trustees apply it to the poor or to some other purpose {g) ; (a) 1 Ves. 469. [b] and (c) ; and Sx parte Inge, (6) JEx parte Wrangham, 2 Ves. 2 R. & M. 594 ; lie Queen's College, jun. 609; Attorney- General v. Camhridge, b'&.viss. &'^; Re Univer- Earl of Clarendon, 17 Ves. 498, per sity College, Oxford, 2 Phil. 521. Sir "W. Grant; Attorney-General {f )&&& Attorney -General y.Sher- V. Blach, 11 Ves. 191 ; Case of home School, 18 Beav. 256. Queen's College, Cambridge, Jao. 1. [g) Duke, 116; Attorney -Gene- ve) Attorney- General v. Dixie, ral v. Newbury Corporation, C. P. 13 Ves. 519, see 533. Coop. Cases, 1837-38, 72 ; Attorney- (d) King v. St. Catherine's Hall, General v. Goldsmiths' Company, 4 T. R. 233, see 244 ; and see Ex ib. 292 ; and see Wivelescom case, parte Wrangham, 2 Ves. jun. 619. Duke, 94. (e) See tte cases cited in notes 496 TEUSTEES OF CHARITIES. [cH. xvm. Chapel for school. Chapel pulled down. Charity in aid of rates. or if the trust be for the poor of O., and the trustees extend it to other parishes (a) ; or if the trust be to repair a chapel, and the rents be mixed uj) with the poor-rate for parochial pur- poses (6) ; or if a fund be raised for erecting an hospital, and it be diverted to lighting, paving, and cleansing the town (c). A chapel was granted to the trustees of a school for the use and benefit of the said school, and though the inhabitants of the hamlet had been long accustomed to attend divine service in the chapel, it was held that, as the chapel was for the exclu- sive benefit of the school, the trustees had no power to apply the revenues of the charity towards enlarging the chapel for the better accommodation of the inhabitants {d). The trustees for maintaining a chapel had pulled down the edifice, converted the burial-ground to profane purposes, carried the bell to the market-place, put the pews in the parish church, and employed the stones of the chapel for repairing a bridge. Sir T. Plumer said, " It was an enormous breach of trust, and such as could not have been expected in a Christian country ; " and directed an inquiry what emoluments had come to the hands of the trustees on account of the breach of trust, and what would be the expense of restoring the chapel to the state in which it stood at the time of its destruction (e). A fund in aid and relief of " poor citizens who often were grievously burdened by the imposts and taxes of the city '' was held not to be applicable to the payment of rates and other expenses of the city that would otherwise have been.raised by public levies and impositions, nor to be distributable to such of the poor as received parish relief, for that would be so much in aid of the rate-payers ; but ought to have been administered for the exclusive benefit of the poor, and should therefore have been confined to such of the poor as were not supported by the parish (/). (a) Attorney- General v. Brand- reth, 1 Y. & C. Gh. Re. 200. (6) Attorney- General v. Vivian, 1 Russ. 226, see 23Y. (c) Attorney- General v. Kell, 2 Beav. 575. (d) Attorney-General v. Earl of Mansfield, 2 Russ. 501. (e) Ex parte Greenhouse, 1 Mad. 92 ; reversed on technical ground, 1 Bl. N. R. 17. (/) Attorney- General v. Corpo- ration of Exeter, 2 Russ. 45 ; S. C. 3 Russ. 395 ; and see Att - Gen- V. Sovill, 1 PhU. 762 ; Att.-Gen. v. Blizard, 21 Beav. 233. CH. XVm.] TRUSTEES OF CHARITIES. 497 If land or money be given for maintaining " the worship of ?'^?* ^°^, T'^°- God," and nothing more he said, the Court will execute the worship of God." trust in favour of the established form of religion. But if it be clearly expressed upon the deed or will that the purpose of the settlor is to promote the maintenance of dissenting doctrines, the Court, provided such doctrines be not contrary to law, will execute the intention (a). And where a fund is raised for the purpose of founding a chapel (or indeed any other charity), and the contributors are so numerous as to prec .ude the possibility of their all concurring in any instru- mf nt declaring the trust, and such a declaration of trust is made by the persons in whom the property is vested at or about the time when the sums have been raised, that decla- ration may reasonably be taken prima facie as the true exposition of the minds of the contributors (&). Where an institution exists for the purpose of religious The trust ori- worship, and it cannot be discovered from the instrument will be preserved. declaring the trust what form or species of religious worship was in the intention of the settlors, the Court will then in- quire what has been the usage of the congregation; and if such usage do not contravene public policy, will be guided by it as evidence of the intention in the administration of the trust. And by a recent Act, if the instrument of trust do not define the religious doctrines, twenty-five years' usage immediately preceding any suit is made conclusive evidence thereof (c). But if the purpose of the settlors appear clearly upon the instrument, the Court, in that ease, though the usage of the congregation may have run in a different channel, cannot change the nature of the original institution : it is not compe- tent for the majority of the congregation, or for the managers of the property, to say, " We have altered our opinions : the chapel in future shall be for the benefit of persons of the same persuasion as ourselves {d}." (a) Attorney-GeneralY. Pearson, Eldon ; Foley v. Wontner, 2 Jao. 3 Mer. 409, per Lord Eldon ; see & Walk. 247, per eundem ; Craig- 8. a 7 Sim. 290. dallie v. Aihman, 1 Dow's P. G. 1 ; (6) Attorney - General v. Clap- Milligan v. Mitchell, 3 M. & C. 72; ham, 4 De Grex, M. & Gr. 626. Broom v. Summers, 11 Sim. 353 ; (c) 7 & 8 Vict. c. 45, s. 2. Attorney- General v. Murdoch, 7 [d) S. C. 3 Mer. 400, per Lord Hare, 445 ; 1 De Gex, M. & G. 86 ; 498 TRUSTEES OP CHARITIES. [CH. XTin. Appointment of new trustees. Minister of a meetiDg-hoiise. Minister may be removable at pleasure. Original inten- tion cannot be defeated by bye- laws. If the deed of endowment neither provide for the succession of trustees nor the election of the minister, an inquiry will be directed, who, according to the nature of the establishment, are entitled to propose trustees, and to elect the minister (a) ; and if the election of the minister properly belong to the congregation, the majority is for that purpose the congrega- tion (6). The appointment of the minister cannot, in such a case, belong to the heir of the surviving trustee, who may not be of the same persuasion, but, it might happen, a Eoman Catholic or Jew (c). A minister in possession of a meeting-house is tenant at will to the trustees, and his estate is determinable by demand of possession without any previous notice (d). But this merely tries the legal right without affecting the question whether in equity the minister was properly deprived (e), and if the minister be in possession, and preaching the doctrines that were intended by the founders, it is the practice of a Court of equity to continue him until the case can be heard, whether he was duly elected or not (for the first point is to have the service performed), and the Court will pay him his salary (/). It is the policy of the Established Church by giving the minister an estate for life in his office to render him in some degree independent of the congregation; but if it be the general usage amongst any particular class of dissenters to appoint their ministers for limited periods, or to make them removable at pleasure, though a Court of equity might not struggle hard in support of such a plan, there is no principle upon which the Court would not be bound to give it effect (g). To every corporation there belongs of common right the power of establishing bye-laws for the government of their own Attorney- General v. Munro, 2 De Gex & Sm. 122. (o) Davis V. Jenkins, 3 V. & B. 151, see 169 ; and see Leslie v. Birnie, 2 Kuss. 114. (6) Davis Y. Jenkins, 3 V. & B. 155 ; and see Leslie v. Birnie, ubi supra. (c) Davis V. Jenhins, 3 V. & B. 154. {d) Doe Y. Jones, 10 B. & Cr. 718; Doe Y. M'Kaeg, 10 B. & Cr. 721 ; and see Brown v. Dawson, 12 Ad. & Ell. 624. (e) See Doe v. Jones, 10 B. & Cr. 721. (/) JFoley Y. Wontner, 2 Jao, & "Walk. 247, per Lord Eldon. {ff) Attorney- General v. Pearson, 3 Mer. 402, 403, per Lord Eldon. CH. XVni.] TRUSTEES OP CHARITIES. 499 body; but this privilege cannot authorise the enactment of any rules or regulations that would tend to pervert or destroy the directions of the original founder and the objects of the charity (a). And so a clause in a deed investing the trustees, or the major part of them, with the power of making orders from time to time upon matters relating to a meeting-house would not enable them to convert the meeting-house, when- ever they thought proper, into a meeting-house of a different description, and for teaching diff'erent doctrines from those of the persons who founded it, and by whom it was to be at- tended (b). The charity funds cannot be diverted into a different channel Act of Parlia- ,. „ /■T-.T Til- ment necessary Without the authority or an act ot JParliament ; and this may for the purpose. now be obtaiaed through the intervention of the Charity Commissioners, who are empowered to approve, provisionally, of a scheme varying from the origiual endowment and submit it to Parliament (c). Until the act referred to, trustees, be- fore applying to the legislature, were in the habit of procuring the sanction of the Court of Chancery ; for if they took such a step upon the mere suggestion of their own minds, and failed in obtaining the contemplated act, they were not allowed the costs and expenses incurred in the proceeding (d) ; but if the application to Parliament was attended with success, the trustees were then allowed their costs, though the sanction of the Lord Chancellor had not been previously obtained ; for the Court could not with propriety pronounce those measures to be imprudent which the legislature itself had enacted as prudent (e). But the management of the trust may contravene the letter Letter may be of the founder's will, and yet, on a favourable construction, be the spirit pre- conformable to the real intention. served. It was the opinion of Lord Eldon (/) and Sir T. Plumer (g), Free grammar school. (a) Sden v. Foster, 2 P. W. .327, (e) lb. per eundem. resolved. (/) Attorney- General v. White- (h) Attorney-General W.Pearson, ley, 11 Ves. 241; Attorney- Gene- 3 Mer. 411, ^er Lord Eldon. ral v. Earl of Mansfield, 2 Russ. (c) 16 & 17 Vict. 0.137,88.54—60. 501. (d) Attorney- General v. Earl of (jr) Attorney- General v. Dean of Mansfield, 2 Russ. 519, per Lord Christehurch, Jao. 474. Eldon. K K 2 500 TEUSTEES OF CHARITIES. [CH. XVni. that if the wish of the founder were to establish a free grammar school, the Chancellor, though he felt perfectly con- vinced that a free grammar school, that is, a school for teaching the learned languages, could be of little or no use, would yet be bound to apply the revenue as the donor had directed, and could not substitute a school for teaching English and writing and arithmetic. " The duty of the Court," said Lord Eldon, " is to enforce the trusts as they stand : the founder was the judge how far his institution was likely to be useful to the public " {a). But it has since been held by Lord Lyndhurst (6), Sir John Leach (c). Lord Langdale {d), and Lord Cottenham («), that the Court has jurisdiction to extend the application of the charity fund to purposes beyond the literal intention, and that writing and arithmetic may be well introduced into a scheme for the establishment or better regulation of a free grammar school. And this may of course be done in the case not of a free grammar school but of a free school (/). 3 &4Vict. c. 77. Now by the 3 & 4 Vict. c. 77, s. 1, it is enacted that when- ever any question may come under consideration, in any of Her Majesty's Courts of equity, concerning the system of education to be established in any grammar school, or the right of admission into the same, it shall be lawful for the Court to make such decrees or orders as to the said Court shall seem expedient for extending the system of education to other useful branches of literature and science, in addition to or (subject to the provisions thereinafter contained) in lieu of the Greek and Latin languages, or such other instruction as may be required by the terms of the foundation, or the existing statutes. By the 13th section the visitors of any school are enabled to require from the master a return of the state thereof, of the books used therein, and of such other particulars as they may think proper ; and also, to order such examination of (o) Attorney- General v. Earl of College, 2 Keen, 150; Attorney- Mansfield, 2 Russ. 521. General v. Ladyman, C. P. Coop. (J) Attorney- General v. Haher- Cases, 1837-38, 180. dashers' Company, 3 Euss. 530, (e) Attorney- General v. Stam- (c) Attorney- General v. Dixie, 2 ford, 1 Phil. 745. M. & K. 342 ; Attorney- General y. (/) Attorney-Generals. Jachson, Gascoigne, id. 652. 2 Eeen, 541. {d) Attorney- General v. Caius CH. XVin.] TRUSTEES OF CHARITIES. 501 the scholars attending the same as may seem expedient. And hy the 14th, 15th & 16th sections, the Court is empowered, upon proper occasions, to enlarge the existing, or to create new visitatorial powers, and to appoint, when necessary, a provisional visitor. By the 17th section it is enacted that it shall he lawful for the Court of Chancery (upon application by petition under the 21st section), to empower the person or persons having powers of visitation in respect of the discipline of any grammar school, or who shall be specially appointed to exercise the same, under the said act, and the governors, or either of them, after such inquiries, and hy such mode of proceeding as the Court may direct, to remove any master of any grammar school who has been negligent in the discharge of his duties, or who is unfit or incompetent to discharge them properly or efficiently, either from immoral conduct, incapacity, age, or from any other infirmity or cause whatsoever, and by a subsequent section, provision is made for the ejectment of the master by a summary process from the premises in his occupation. "Where trustees were directed to apply the rents "towards "Finding a the necessary finding a master, and for the pains of such master/' and the trustees applied part of the revenue towards rebuilding and repairing the school-room and school-house, it was held to be a good pursuance of the trust, because a school-room and house were necessary, and if these were not provided by the trustees, they must have been provided by the master himself, and so it was in effect applied for the pains of the master (a). So a trust " for the relief of the poor " has been construed "Belief of poor." to authorise an application of the funds to the building of a schoolhouse, and the education of the poor of the parish (&). So an estate had been given to trustees for the repair of a Eepairing and church and chapel of ease thereto belonging, and, the parish having taken down the chapel to erect a new one on a different site, it was determined that the trustees had not exceeded the (a) Attorney- Generals. Mayor of (h) Wilkinson v. Malin, 2 Tyr. Stamford, 2 Sw. 592. 544, see 570. 602 TRUSTEES OP CHARITIES. [CH. xvm. Augmentation of salaries. Reduction of salaries. Loans. Retainer of the charity fund. Alienation of the charity estate. line of their duty in expending the accumulated rents upon the rebmlcUng of the chapel ; but it was held the rents only, and not the corpus of the estate, could be so applied ; and the Court had great doubts whether any thing could be laid out upon the fitting-wp of the chapel (a) , And where the direction of the founder was that the master of a school should receive 50i. a year, and the usher 30Z., and the trustees had raised the salaries respectively to 80i!. and 60Z., as the wiU did not contain any prohibition against in- creasing the salaries, and it could not be supposed that the trustees were not under any circumstances to alter the amount, the Court refused to compel the trustees to refund the augmen- tations (6). And, vice versa, if a fund be given, not for purposes of individual benefit, but for the discharge of certain duties, as for the support of a schoolmaster, and the l^fund increase to such an extent as to yield more than a reasonable compensa- tion for the duties to be performed, the Court will not allow the surplus to be expended unnecessarily, but wUl order it to be applied for the promotion of some other charitable purpose (c). Legacies had been left by several different testators (between the years 1545 and 1666) for the purpose of being lent out ia sums varying from 5i. to 300Z, without interest ; and Sir J. Leach was of opinion, that, regard being had to the alteration in the value of , money, it was not inconsistent with the inten- tion of the testators to raise the loans to sums varying from lOOL to 500?, {d). It need scarcely be remarked that a trustee would be guilty of a gross breach of trust, should he keep the charity fund in his hands, and not apply it, as it becomes payable, to the objects of the trust (e). It is a general rule, that trustees of charities have no (a) Attorney- General v. Foyster, 1 Anst, 116. (6) Attorney-General v. Dean of Christchurch, 2 Euss, 321, (c) Attorney- General v. Master of Brentford School, 1 M. & K, 376, see 394, {d) Attorney-General \. Mercers' Company, 2 M. & K, 654 ; and see Attorney- General v. Holland, 2 T, & C. 683 ; Morden College case, cited ib. 701, 702, (e) Dnke, 116, CH. XVin.] TRUSTEES OF CHARITIES. 503 authority to make an absolute disposition of the charity estate : they could not, for instance, part with lands to a purchaser, and substitute instead the reservation of a rent (a). And as the trustees may not aliene absolutely, so they may not accomplish the same end indirectly by demising for long terms, as for 999 years (6); or for terms of ordinary duration, with covenants for perpetual renewal (c) ; or by granting reversionary terms (d). But there is no positive rule that in no instance shall an Where allowable, absolute disposition be made, for then the Court itself could not authorise such an act — a jurisdiction which, it is acknow- ledged, has from time to time been exercised upon special cases made. " I do not doubt,'' observed Sir J. Wigram, " the existence of this power in the Court : the trustees have the power to sell at law, they can convey the legal estate, but it is only a Court of equity that can resell the property, and if that Court should sanction a sale it would be bound to protect the purchaser " (e). The true principle is, that an absolute dispo- sition is then only to be considered a breach of trust when the proceeding is inconsistent with a provident administration of the estate for the benefit of the charity (/). And the transac- tion will be strongly assumed to be improvident as against a purchaser until he has established the contrary {g). A house which had formerly produced a large income by being let in apartments had afterwards fallen into a state of dilapidation and become unproductive : the charity had no funds to rebuild, but the materials and site were of considerable value. The (o) Attorney- General v. Kerr, 2 (e) Attorney- General v. Newarh, Beav. 420 ; Blachston v. Hemsworth 1 Hare, 400. Hospital, Duke, 49; Attorney- Gene- (/) ^%6 Attorney-General v. War- ral Y. Sretiingham, S Beav. 91; a.ni ren, 2 Sw. 302; S. C. Wils. 411; see Attorney-GeneralY. Buller, 3a.o. Attorney- General v. Hungerford, 412; Attorney -General v. Magdalen 8 Bl. 437; S. C. 2 CI. & Fin. 357 ; College, 18 Beav. 223. Attorney- General v. Kerr, 2 Beav. (6) Attorney- General v. Green, 428 ; Attorney- General v. South Sea 6 Yes. 452; Attorney-General v. Company, 4 Beav. 453; Attorney- Pargeter, 6 Beav. 150. General v. Newark, 1 Hare, 395 ; (c) Lydiattv.Foae'h,'iYeTnAlO; Parhe's Charity, 12 Sim. 329 ; Be Attorney- General Y. Brooke, ISYes. Suir Island Female Charity School, 326. 3 Jones&Lat. 171. (d) See Attorney- General Y.Kerr, (g) Attorney- General v. Bret- 2 Beav. 420. tingham, 3 Beav, 91. 504 TEUSTEES OF CHAEITIES. [CH. xvin. Recent diarity acts. Accumulations. Loans of charity money on mort- gage. Master having reported that it would be for the advantage of the charity to dispose of the house, Sir W. Grant, on the authority of a precedent which was produced to him, directed a sale (a). Now under the provisions of the recent acts the Commis- sioners of Charities are empowered on application made to them to authorise the grant by charity trustees of building, repairing, improving, or other leases, and the worldng of mines, and the sale or exchange of any part of the charity property (&), and the trustees are restricted from any sale, mortgage or beneficial leases, without the sanction of the Com- missioners (c), and moneys arising from sales and exchanges may be laid out with the consent of the Commissioners in the purchase of other lands without a license in mortmain (d). Where there are accumulations from a charity estate, the Court, on application to it for directions, will not as a general rule sanction an investment on land contrary to the spirit of the mortmain act (e). But there is nothiag illegal in such an investment, if accompanied with the formalities required by the act, viz. an indenture sealed and delivered in the presence of two credible witnesses, and inrolled within six calendar months from the execution (/) ; and therefore should a highly beneficial purchase offer itself, the trustees themselves would, it is conceived, run no risk in so investing the accumula- tions (g). Indeed, the Court itself has made such an order where the purchase of the land was not the main object, but incidental to a general scheme as for the enlargement of a school Qi). Trustees of a Charity may lend the trust fund upon a mort- gage of real estate, though a legal condition is expressly reserved, and though after default an equity of redemption arises by the rules of equity. The Statute of Mortmain (a) Anon, case, cited Attorney- General v. Warren, 2 Sw. 300, 302. (6) 16 & 17 Vict. c. 137, ss. 21,24, 26 ; 18 & 19 Vict. c. 124, s. 32, 39. (e) 18 & 19 Viot. 0. 124, s. 29. [d] 18 & 19 Viot. 0. 124, s. 35. (e) Attorney- General v. Wilson, 2 Keen, 680. (/) But see Attorney- General v. Day, 1 Ves. 222. [g) See Vaughan v. Farrer, 2 Ves. 188. {h) Attorney-General v. Mans- field, 14 Sim. 601 ; Sonnor's Trust, V. C. Eindersley, May 3, 1853. CH. XVni.] LEASES OF CHAEITY LANDS. 505 (9 Geo. 3, c. 36), which avoids conveyances to a charity con- taining any reservation or condition for the benefit of the grantor, is held not to apply to such a case (a). But of course care should be taken that the mortgage be by indenture attested by two witnesses, and inrolled. The Court itself, its attention being directed to the question, has authorised the trustees of a charity to lend on mortgage (6). Governors of charities cannot grant leases to or in trust for Lease to a one of themselves, for no trustee can be a tenant to himself, and the Court will charge him with an occupation rack-rent (c). Where two trustees were expressly authorised by the will to grant a lease to themselves, or either of them, with the consent of the tenant for life, and one of them took a lease accordingly, which was fair and proper, but it was found in effect that the relative characters of trustee and lessee were inconsistent, and led to inconveniences, the Court removed the trustee at the instance of the cestms que trust, on the ground of the repugnant characters of trustee and tenant ; and though the trustee offered to surrender the lease, the Court held him to it, and dismissed him from the trust (cZ). And trustees should be cautious how they grant leases to their own relations, for that circumstance is calculated to excite a suspicion, which, if con- firmed by any other fact, it might require a strong case to remove (e). So a lease should not contain any covenant for the private advantage of the trustees : where a corporation directed the insertion of a covenant that the lessee should grind at the corporation mill, in a suit for the establishment of the charity Suit to a mill, the corporation were, for this instance of misbehaviour, dis- allowed their costs (/). Where trustees have a power given to them in general terms ^^^^ °^' ^'^<^^- ° rent. (a) Doe d. Graham v. Hawkins, General v. JEarl of Clarendon, 17 2 ft, B. Rep. 212. Ves. 491, see 500. (6) This was done by the M.R. in {d) Passingham v. Sherborne, 9 Att.-Gen. V. Gibson; Ex parte Beav. 424. Lushing (on ; He Lady Prior's (e) Ferrdby v. Hobson, 2 Phill. Charity, July 21, 1853. The mort- 261, per Lord Cottenham ; and see gage was for 50,000?. upon an estate Ex parte Skinner, 2 Mer. 457. in Northamptonshire. (/) Attorney- General v. Mayor of (c) Attorney-General v. Dixie, Stamford, 2 Sw. 592, 593. 13 Ves. 619, see 534; Attorney- 306 LEASES OF CHARITY LANDS. [CH. xvra. Adequate con- sideration. Leases at an under-value. "Eent not to be raised." to grant leases, it is said they may take fines or reserve rents as, according to the circumstances of the case, may be most beneficial to the charity (a). If the trust estate held on lease increase in value from the outlay of the tenant, the trustee is not called upon immediately to raise the tenant's rent, for such a practice would obviously prevent any improvement of the property (6). Nor if the value of the estate increase from the rise of agricultural produce will the trustee be liable, because he neglects for a few months to raise the rent ; but if he wil- fully continues the old rent when clearly a much higher can be obtained, he may be held responsible (c). In granting leases of charity lands care must be taken that the lease be for an adequate consideration, and, if this be not observed, the Court will interfere and order the lease to be cancelled, and with the lease will also cancel the covenants {d). The lease may be annulled on the mere ground of under- value (e) ; but it must be an under-value satisfactorily proved and considerable in amount: it is not enough to show that a little more might have been got for the estate than has been actually obtained: stiU less is it sufficient to infer the under-letting from the value of the property at some subsequent period (/). Even where it was ordained at the creation of the trust, that no lease should be made for above twenty-one years, and the rent should not be raised, it was held the trustee would not be justified in granting leases from time to time at no more than the original reservation. Lord Cowper said,' " That the rent should not be raised was a constitution just and charitable for the encouragement of the tenant to improve the estate, and he ought to find a benefit by it ; and the hospital [a) Attorney- General v. Mayor of Stamford, 2 Sw. 592. (J) Ferraby v. Holson, 2 Phill, 258, per Lord Cottenham. (c) See Ferraby v. Hohson, 2 PMU. 255. {d) Attorney- General v. Morgan, 2 Kuss. 306. (e) East V. Myal, 2 P. "W". 284;, Attorney- General v. Lord Gower, 9 Mod. 224, see 229; Attorney- General V. Magwood, 18 Ves. 315; Attorney- General v. Dixie, 13 Ves. 519; PoorofYervelii. Sutton, Duke, 43 ; Eltham Parish v. Warreyn, Duke, 67 ; Wright v. Newport Pond School, Duke, 46 ; Rowe v. Almsmen of Tavistock, Duke, 42 ; Crouch v. Citizens of Worcester, Duke, 33 ; Attorney- General v. Foord, 6 Beav. 288. (/) Attorney- General v. Cross, 3 Mer. d4:\,per Sir W. Grant. CH. XVIII.] LEASES OF CHARITY LANDS. 507 also would find an advantage in having the rent well secured by an estate of gi'eater value, and consequently paid ; but the rule or constitution was not to be followed according to the letter that no more rent was to be taken than what was at first reserved, but as the times altered and the price of provisions, &c. increased, so the, rent ought to be raised in proportion " (a). But, in considering the question of value it must be remem- Under-Taiue bered that the case of a charity estate is one in whichj of all jg^^ to render others, the security of the rent is the first point to be regarded, ^^^ If*^^ ™' and therefore the inadequacy of the amount reserved is less a badge of fraud in this than it would be in almost any other instance (6). And Lord Eldon desired it might not be con- sidered to be his opinion that a tenant who had got a lease of charity lands at too low a rate with reference to the actual value was therefore to be turned out, if it appeared he had himself acted fairly and honestly. The only ground for so dealing with him would be some evidence or presumption of collusion or corruption of motive : if, for instance, the tenant happened to be a relation of the trustee, that was a circum- stance to create suspicion (c). When leases are set aside for under-value and the Court Compensation for awards a compensation to the charity for the loss which has been sustained by the charity through the collusion of the trustees and the tenant, the burden will faU upon the trustees or the tenant according to the circumstances of the transac- tion (d). A lease of charity lands may also be invalidated on the tTnreasonaUe Trt.T I ^ ijpjij extent of the ground ot the unreasonable extent oi the term. The duration of the lease should be such only as is con- sistent with the fair and provident management of the estate (e). (a) Watson Y. Sinsworth Hospi- v. Sutton, \A. 4:5; Attorney-General tal, 2 Vern. 596 ; and see Lydiatt v. v. Mayor of Stamford, 2 Sw. 592, Foach, Id. 410; Attorney- General per Cur.; Attorney- General v. V. Master of Catherine Hall, Cam- Dixie, 13 Ves. 540; Rowe v. Alms- bridge, Jac. 381. men of Tavistock, Duke, 42. (J) Sx parte S7cinner,2M.ex.451, (e) See Attorney- General y. Owen, ^er Lord Eldon. 10 Ves. 560; Attorney-General v. (c) Ex parte Skinner, ZM-er. 4.51. Brooke, 18 Ves. 326; Attorney- Id) See Duke, 116; PoorofYervel Generals. Griffith, 13 Ves. 575. 508 LEASES OF CHAEITY LANDS. [CH. XVm. It would, therefore, be a direct violation of duty to grant a lease for one thousand years {a), not only on the ground befote noticed that such a demise would in effect be an absolute alienation, but also on the principle that no private proprietor would choose to debar himself from profiting by the progressive improvement of the property. Sir Thomas Plumer observed, " It is impossible to deny that such a lease is a decisive breach of trust. The compensation which the trustees receive may be adequate at the date of the contract, but they are precluded or one thousand years from any advantage of increased value. It is true they are secured from diminution, and in some instances to guard against fluctuation may be as much the interest of one party as the other ; but that would be an answer to all cases in which the trustees have made an aliena- tion at a fixed rent. The progress of events and the deprecia- tion of money have shown the improvidence of such agreements. At the same time," continued his Honor, "it is just to say, that these principles seem not to have been acted upon at so early a period as 1670. There is no case produced in which mere improvidence, inferred solely from the extent of the term, was held sufficient to rescind the transaction. In many cases in Duke's collection the Court acted on inadequacy of value, in none on mere extent of term(&). Where the alienation appeared at the time to be a provident administra- tion, the prospective possibility that it might become inadequate does not appear, at that period, to have had the effect which it does at present " (c). Husbandry Husbandry or farm leases should be granted for a term certaia not exceeding twenty-one years (d). But neither is this rule to be taken as absolutely inflexible ; but where the aliena- (o) Attorney- General v. Green, (c) Attorney- General v. Warren, 6 Ves. 452 ; Attorney- General v. 2 Sw. 304. Cross, 3 Mer. 540; Attorney- Gene- (d) SeeAttorney- General Y.Owen, ral Y. Dixie, IS Yes. 531; Attorney- 10 Ves. 560; Attorney- General v. General v. Brooke, 18 Ves. 326. BacMouse, 17 Ves. 291 ; Eawe y. (b) But see Poor of Yervel v. Almsmen of Tavistock, Duke, 42 ; Sutton, Duke, 43, resolution 2 ; Wright v. Newport Bond School, Howe V. Almsmen of Tavistock, id. 46 ; Poor of Yervel v. Sutton, id. 42 ; Wright v. Newport Pond id. 43, resolution 2 ; Attorney- School, id. 46 ; Crouch v. Citizens General v. Pargeter, 6 Beav. 150. of Worcester, id. 33. Cl-I. XVIII.] LEASES OF CHARITY LANDS. 509 tion is for any longer period, as for ninety-nine years, the Court would put it upon those who are dealing for and with the charity estate to show the reasonableness of such a trans- action, for primd facie it is unreasonable. There is no instance of a power in a marriage settlement to lease for ninety-nine years, except with reference to very particular circumstances : the ordinary husbandry lease is for twenty-one years {a). In Attorney -General v. Cross (h) the trustees had been in Leases detcr- the habit of granting leases for ninety-nine years, determinable on lives, in consideration of fines and the reservation of a small rent, a mode of letting very general in the county where the lands were situate, and one which it was proved had been adopted by the founder himself. On a bill filed to set aside such a lease. Sir W. Grant said, " It is very difficult to lay down any abstract proposition as to the propriety or im- propriety of leasing charity estates in the manner complained of. Such a mode of letting, generally objectionable, may, under particular circumstances, be the most beneficial that can be adopted. With respect to a charity, indeed, the reason against it is stronger than as to private estates, because the purposes of the charity may be suffered to languish during the intervals between the leases; but still even as to charity estates it is impossible to lay down any general rule. Though the expediency of letting charity estates in this manner may be more or less questionable, according to the nature of the charity and the circumstances and situation of the estate, I am not aware of any principle or authority on which it can be held that such a lease is on the very face of it a breach of trust. The legislature has, both in enabling and disabling statutes, considered leases for three lives as on a footing with leases for twenty-one years absolute. So have the founders of charities, who prohibited the letting on lease for more than three lives. (fl) Attorney- General v. Owen, Attorney-General y. Lord Sotham, 10 Ves. 560, perlxmA. Eldon; and T. & E. 216; Attorney-General v. see Attorney- General v. Griffith, Kerr, 2 Bea.Y. 4:21; Attorney- Gene- 13 Ves. 575; Attorney- General v. ral v. Sail, 16 Beav. 388. Backhouse, 17 Ves. 291 ; Attorney- (J) 3 Mer. 524. General v. Brooke, 18 Ves. 326 ; 510 LEASES OF CHARITY LANDS. [CH. xvni. Leases for lives. Building leases. Founder's inten- tion. or twenty-one years. Supposing, however, that where charity estates have been letten for twenty-one years it would be con- sidered as improper to substitute a letting for lives, it does not follow that we can impute abuse to a mere adherence to the ancient and uniform mode of letting, especially when it is a mode usual in the district in which the estates are situate. In laying down prospective rules for the regulation of a charity, it may be very fit to consider which mode is best calculated to answer the particular purposes of such charity ; but to set aside such a lease already existing'it is not enough to say that the mode of letting is not the best that might be prescribed, because on such a point there may be a great difference of opinion among the most experienced : but you must show the mode is so positively bad, that no persons meaning fairly to discharge their trust would have resorted to it. This may be said of a lease for a long term of years absolute at a stationary rent, because no man of a reasonable degree of provi- dence would so let his own estate ; but many landowners do still let their estate upon leases for Hves, and formerly the general usage in this county was to let in this manner." And upon these grounds his Honor dismissed the bill, and allowed the trustees their costs out of the charity estate. And in a later case, where charity lands had for two hundred years been let for lives upon a fine or foregift at a small reserved rent. Lord Langdale said there was no principle that a lease of a charitable estate for lives was, on the face of it, a breach of trust; and as there appeared no other ground of invalidating the leases, he refused to set them aside (a). Building leases should be for a term not exceeding sixty, or ninety, or ninety-nine years (6). If granted for a longer period, it would be thrown upon the parties to show the reasonableness of the prolonged term from the particular circumstances of the case. What has been said as to the proper duration of leases is of course only applicable where the founder himself has not (o) Attorney- General \. Crook, 1 Keen, 121, see 126. (6) See Attorney-General\. Owen, 10 Ves. 560; Attorney- General v. Backhouse, 17 Ves. 291 ; Attorney- General v. Foord, 6 Beav. 290, CH. XVin.J LEASES OF CHAEITY LANDS. 611 otherwise given directions, for in all cases the will of the settlor, where explicit, must he strictly followed ; as if the terms of the endowment he that the charity estates shall he let only for twenty- one years, the trustees, though satisfied that leases of ninety-nine years would he more heneficial, could not make such a deviation from the directions of the trust without the sanction of the Court. It was said on one occasion, with reference to such variations from the founder's intention, that the Court itself could not give a good title to the lessee, but that it required the authority of an Act of Parliament (a). It is plain, however, that there is a wide distinction between a deviation from the founder's intention as to the objects of the charity, and a deviation from the directions as to management, which were no doubt originally meant to be governed by circumstances. "When there has been no actual fraud, and the lessee or improvements assignee of the lease has laid out money in the permanent ^ improvement of the property, the Court will direct an inquiry to what extent the charity estate has been benefited, and will allow the holder of the lease the amount of the benefit found {b). Now, by the Charitable Trusts Amendment Act, 1855 (c), 18 & 19 Vict, s. 29, trustees of charities are disabled from granting any leases (except for a term not exceeding twenty-one years) without the sanction of the Charity Commissioners. (a) Attorney- General Y. Mayor of 2 Beav. 420 ; 8wan\. Swan, 8 Price, Mochester, 2 Sim. 3i. 518; Attorney- General v. Baliol (6) Attorney- General v. Day, College, 9 Mod. ill ; Savage r. Tay- V. C. K. Bruce, March 9, 1847 ; and lor, Forr. 234; Shine y. Gough, 1 B. see Attorney- General v. Green, 6 & B. 444. Ves.452; Attorney - General y. Kerr, (c) 18 & 19 Vict. c. 124. CHAPTER XIX. THE POWERS OP TRUSTEES. The powers of trustees are either general or special; the former, such as by construction of law are iucident to the office of trustee ; the latter, such as are communicated by the settlor himself by an express proviso in the iustrument creating the trust. SECTION I. Powers of trus- tees at law dis- tinguislaed from their pewers in equity. General rule as to powers of trustees in trusts simple and OE XBM GENEEAL POWEES OE TKTTSTEES. In a court of law the trustee, as the absolute proprietor, may of course exercise all such powers as the legal owner- ship confers ; but in equity the cestui que trust is the absolute owner, and the question we have to consider in this place is, how far the trustee may deal with the estate without ren- dering himself responsible in the forwm of a court of equity. With reference to the simple trust, as the trustee is a mere passive depositary, he can neither take any part of the profits, nor, except in defence or protection of the estate, can exercise any dominion or control over the corpus. In the special trust the authority of the trustee is equally limited, except so far as the execution of the trust itself may invest him with a proprietary power. The duties thus pre- scribed to him the trustee is bound strictly to pursue without swerving to the right hand or to the left ; as if money be given to be laid out in a purchase of lands, he woidd not be justified in expending part on a purchase and applying the residue upon repairs and improvements (a). (a) Bostoch V. Blakeney, 2 B. C. C. 653. CH. XIX. S. 1.] GENERAL POWEES OF TRUSTEES. 513 But, wnder ^particular circumstances, the trustee is held Exceptions. capable of exercising the discretionary powers of the hond fide proprietor ; for the trust estate itself might otherwise be inju- riously affected. The necessity of the moment may demand an immediate decision, while the sanction of the parties who are beneficially interested cannot be procured without great inconvenience, as where the cestuis que trust are a numerous class, or perhaps cannot be obtained at aU, as where the cestuis que trust are under disability, or not yet in existence. The alternative of instituting a suit for the mere purpose of consulting the Court would always be attended with consi- derable expense, and, it may be, an expense wholly dispro- portioned to the importance of the occasion, and perhaps in the mean time the opportunity might be lost. It is therefore evidently in furtherance of the cestui que trust's own interest, that, where the circumstances of the case require it, the trustee should be at liberty to exercise a reasonable discre- tionary power (a). It is a general rule of equity, that what is compellable by Validity of an act without suit. suit, or would have been ordered by the Court, is equally valid if done by the trustee without suit, i. e., without the sanction of the Court (6). The difficulty with which the trustee has to struggle is the danger of assuming that the Court, on appli- cation to it, would view the matter in the same light iu which he regards it himself. A trustee, clothed with a trust to manage_real estates for the Repairs. benefit of a person absolutely entitled, but^ incapable from infancy or otherwise to give directions, may make repairs. But he must not go beyond the necessity of the case, as by ornamental improvements, or the expense vrill not be allowed (c). Where the legal estate is vested in trustees in trust for one person for life, with remainders over to others, it would have (o) See Angell v. Dawson, 3 T. & Hutcheson v. Hammond, 3 Br. C. C. C. 317. 145, per Buller, J. ; Terry v. Terry, (6) Jjee V. Brown, 4 Ves. 369, Gilb. 11, per Lord Cowper ; Shaw y. per Cur. ; JSarl of Bath v. Brad- Borrer, 1 Keen, 576, per Lord ford, 2 Ves. 590, per Lord Hard- Langdale. wieke ; Cooh v. Parsons, Pr, Cli. (c) Bridge v. Brown, 2 Y. & C. 185, per Cur. ; Inwood v. Twyne, Ch. Ca. 181. 2 Ed. 153, per Lord Northington; 514 GENERAL POWEES OF TRUSTEES. [CH. XIX. S. 1. been natural to suppose that the rights in equity as between the tenant for life and the remaindermen would be the same as those at law between a legal tenant for life and legal remaindermen. It is, however, now clearly settled, that what- ever may be the legal liability of a legal tenant for life in j respect of permissive waste (a), the trustee cannot (where there is no special clause of management) interfere with the posses- sion of an equitable tenant for life who neglects to repair (6). In other respects the rights in equity must, it is conceived, be governed by those at law. Thus a legal tenant for Ufe may cut timber for the purpose of repairs (c), though he may not cut timber to sell it and apply the produce (d), nor to repay himself outlay in repairs (e) ; and similarly the trustee may, it is conceived, as against the remainderman, cut timber for necessary repairs, if the tenant for life will consent to an application of income towards repairs in making use of the timber. The repairs by a tenant for life, however substantial and lasting, being his own voluntary act, and not arising from any obligation, he cannot claim any charge for them upon the inheritance (/), nor will the Court at his instance direct lasting improvements to be made (g) ; and though it was said by the Court in one case that the rule might not be absolutely without exception, as if there were a settled estate, and a fund directed to be laid out in a purchase to the same uses, it might be more beneficial to the remainderman that part of the trust fund should be applied to prevent buildings on the settled estates from going to destruction, than that the whole should be laid out in the purchase of other lands (h), an extraordinary case would be requisite to create such exception (i). (o) Powys V. Blagrave, 4 De Gex, v. St. John, 5 De Gex & Sm. M. & Gr. 458, and cases there cited 181. by Lord Cranwortt ; Harnett v. (/) Hihhert v. Coohe, 1 S. & S. Maitland, 16 M. & W. 257. The 552 ; Caldecott v. Brown, 2 Hare, legal question must be considered 144 ; and see Bostoek v. Blakeney, still " suhjudice." 2 B. C. C. 653. (6) Powys V. Blagrave, Kay, 495 ; {g) Nairn v. Marjoribanks, 3 4 De Gex, M. & G. 448. Euss. 582. (c) Co. Lit. 54 6. {h) Caldecott v. Brown, 2 Hare, Id) Co. Lit. 53 h. 145, per Sir J. "Wigram. (e) Gower v. Eyre, Coop. 156; (i) Dunne v. Dunne, 3 Sm. & and see, Duke of Marlborough Gif. 22. See p. 28. CH. XIX. S. 1.] GENEEAL POWEES OF TEUSTEES. 515 Where an estate was devised to A. and his heirs upon trust Cutting timber. to settle on B. for life, subject to impeachment of waste, remainder to C. for life, sans impeachment of waste, remainder to C.'s first and other sons in tail, and before any settlement was executed the trustee, with the concurrence of B. and C, cut down timber which showed symptoms of decay. Sir L. Shadwell said " he considered the timber to have been cut by the authority of the trustee who had a superintending control over the estate ; that it was not a wrongful act ; and that the effect of it must be the same as if it had been done with the sanction of the Court " (a). So trustees of a charity would, until the late Charity Acts, Alienation of have been justified in aliening the estate where, under the ' ^ °^ same circumstances, the Court on application would, from the necessity of the case, have made an order to that efi'ect (b). So conservators of public works and similar quasi trustees Trustees are are authorised to apply the funds under their control in po^e a bill in '*^' opposing a bill in Parliament, the effect of which if passed p^^J'^^ent pre- , , , . judicial to eestnis would be injurious to the interests confided to them. Thus que trust. by an Act of Parliament it was provided that the banks of the Ouse, in Norfolk, should be maintained by commissioners, with power to levy rates upon the adjacent landowners, which were to be applied " in making, doing, constructing, and executing all such works, acts, matters, and things as by such commissioners should, from time to time, be deemed necessary, proper, or expedient, for putting the banks into, and main- taining the same in, a permanent state of stability." The Norfolk Estuary Company applied for an Act to reclaim from the sea a tract of land near the mouth of the Ouse. The commissioners thereupon held a meeting, and the majority passed a resolution that proceedings should be taken for watching, and if necessary, for opposing the BUI in Parlia- ment, and that a rate of Qd. an acre should be levied for de- fraying the expenses, and 150Z. in hand was paid to the Chairman for the like purpose. Three of the landowners, on behalf of themselves and the others, filed a bill against the (a) Waldo V. Waldo, 7 Sim. 261. Sea Company, 4Beav. 458, ^er Lord (b) Attorney- General v. South Langdale ; see ante. 516 GENEEAL POWERS OF TEUSTEES. [CH. XIX. S. 1. commissioners, alleging a pretence by the defendants that the proposed scheme would be injurious to the banks of the Ouse, but charging that, whether injurious or not, the funds ought not to be applied in pursuance of the resolution, and praying that the 150Z. might be repaid, and an injunction against the application of any future funds in pursuance of the reso- lution. The defendants demurred, and Lord Cottenham, after referring to the pleadings, said, "I must assume that the works are likely to be injurious. Now it is clear that if actual injury was done, and proper measures had been taken by the commissioners to prevent it, they would be entitled to be allowed their expenses so incurred, for every trustee is entitled to be allowed the reasonable and proper expenses incurred in protecting the property committed to his care. But if they have a right to protect the property from immediate and direct injury, they must have the same right where the injury threatened is indirect, but probable ;" and the demurrer was allowed (a). On the other hand, quasi trustees, such as those before referred to, are not entitled to apply the funds of an existing undertaking in or towards the expense of obtaining other or larger parliamentary powers (b) As to insurance. A trustee would, it is conceived, under special circumstances, and in due course of management, be justified in insuring the property (c) ; but where there is a tenant for life, he could not be advised to do so out of the income without the tenant for life's consent. And a mortgagee is not regarded as a trustee ; and if, in the absence of any stipulation on the subject, he effects an insurance, it is on his own account, and he cannot claim to be entitled to the premiums under just allowances. It is the same as if a lessor or lessee insured, in which case the other would have no claim to the benefit of the policy (d). (a) Bright v. North, 2 Phill. 216 ; 16 Sim. 225 ; Stevens v. South Devon and see The Queen v. Norfolk Com- Railway Company, 13 Beav. 48. missioners of Se'u>ers,\5Q,.'&.'Si.6i9. (c) jEx parte Andrews, 2 Rose, (J) Attorney- Generals. Andrews, 412. 1 Mac. & Gor. 225 ; Attorney- Gene- (d) Dohson v. Land, 8 Hare, 216; ral V. Guardians of Poor of South- and see Ex parte Andrews, 2 Rose, ampton, 17 Sim. 6 ; Attorney- 410 ; Phillips v. Eastwood, LI. & General v. Corporation of Norwich, Goold. t. Sugden, 289. CH. XIX. S. 1.] GENERAL POWERS OF TRUSTEES. 517 An executor may appropriate a legacy without the necessity Appropriation. of a suit, where the appropriation is such as the Court itself would have directed (a). A trustee may expend sums of money for the protection and Maintenance. safety, or for the maintenance and support, of a cestui que trust who is incapable of taking care of himself, but the safer course is to apply to the Court (&). If a legacy be left to an iafant, and the Court, upon appli- Out of interest, cation, would, from the inability of the parent to support his child, order maintenance out of the interest, the trustee, should he make advances for that purpose without suit, would be allowed them in his account (c). In the case of Andrews v. Partington (d), Lord Thurlow refused to indemnify the trustee ; but the authority of that decision has been repeatedly denied, and may be considered as overruled (e). And the maintenance of each year need not be confined to the interest of that year, but the trustee will be allowed in his accounts to set off the gross amount of the maintenance against the gross amount of the interest (/). Where the amount of the legacy is inconsiderable, as lOOl., Out of principal, the Court would, in the absence of other means, direct main- tenance to the child out of the principal itself (g) : the executor, therefore, who, under similar circumstances, but without the authority of the Court, breaks in upon the capital, would not be liable, on the cestui que trust's coming of age, to account for the expenditure {h). However, where the legacy was not more than 300Z., Sir W. Grant determined that the trustee had (a) Hutcheson v. Hammond, 3 241 ; and see Cotham v. West, 1 B. C. C. 128, see 145, 148 ; and Beav. 381. see Cooper v. Douglas, 2 B, C. C. (/) Carmiohael v. Wilson, 3 Moll. 231. 79. (5) Duncombe v. Nelson, 9 Beav. [g) Ex parte Green, 1 J. & W. 211; and see Chester v. Rolfe, 4 De 253 ; Ex parte Chambers, 1 R. & M. Gex, M. & G. 798, and cases there 577 ; Ex parte Swift, ib. 575 ; In cited. re Mary England, id. 499 ; Harvey (c) Sisson V. Shaw, 9 Ves. 285. v. Harvey, 2 P. W. 21 ; Ex parte {d) 3 B. C. C. 60. Hays, 3 De Gex & Sm. 485. (e) See Sisson v. Shaw, 9 Ves. (h) Barlow v. Grant, 1 Vern. 288 ; Mdberly v. Turton, 14 Ves. 255 ; Carmichael v. Wilson, 3 Moll. 499 ; Lee v. Brown, 4 Ves. 369 ; 79 ; Bridge v. Brown, 2 T. & C. Ex parte Darlington, 1 B. & B. Ch. Ca. 181. 518 GENERAL POWEES OF TRUSTEES. [CH. XIX. S. 1. exceeded his duty, and said his impression was, that the rule had been never to permit trustees of their own authority to break in upon the capital (a) ; but the case of Barlow v. Grant, which is clearly to the contrary, must have escaped his Honor's recollection. In Swinnock v. Crisp (b), where the legacy was 2501. to be divided amongst three children, the executrix, who was the mother, was not allowed the sums which she had paid out of the principal ; but the ground of the decision was the notion, since overruled, that the executrix, though she had married again, was under a legal obligation, as mother, to provide a maintenance for her children (c). Where the legacy is considerable, as lOOOZ. or the like, as the Court itself would not order the application of part of the principal, the trustee would not be justified in exceeding of his own authority the amount of the interest (d). Advancement j^ part of the capital may be sunk by a trustee without out of capital. ^ r j J the direction of the Court for the advancement of a child, where the same sums if expended for maintenance would not have been allowed (e). In Smee v. Martin (/) a testator gave lOOZ. to A. B., "not to be paid until he came of age, and in the meantime &l. per annum to be allowed out of the testator's estate for his main- tenance." The executrix, who was his mother, had expended in binding him apprentice, fitting him out for India, and other necessaries, more than lOOZ., and the Court decreed the pay- ment of the legacy in full without any deduction for the disbursements. " The mother," it was said, " ought by nature to provide for the maintenance and education of her own son : besides, it appeared plainly the intention of the testator that the lOOZ. should not be touched until A. B. came of age, for there was a yearly allowance in the meantime of 51., and it was at her peril that she exceeded that." The case therefore does not militate against the general rule, but was determined upon [a] Walker v. Wetherell, 6 Ves. v. Austen, 1 Ves. jun. 247 ; S. C. 473. 3 B. C. C. 178. (J) Preem. 78. (e) Swinnock v. Crisp, Freem. (e) Billingsly v. Critchet, \ B. C. 78 ; and see Ex parte M'Key, 1 C. 268. B. & B. 405. {d) Barlow v. Grant, 1 Vera. (/) Bunb. 136. 255, per Lord Guildford ; Davies CH. XIX. S. l.J GENERAL POWEES OF TEUSTEES. '519 the particular circumstances, that the executrix, as mother, was herself liable for the maintenance of the child, (a position not tenable at the present day), and that the expenditure of part of the capital was against the clear intention of the testator. But a trustee cannot apply part of the principal towards the Advancement advancement of the child where the legacy is subject to a limitation over, limitation over in favour of a stranger, for in such a case the Court itself could not make an order to that effect. Thus in Lee v. Brown (a), where a testatrix gave lOOZ. to trustees upon trust to apply the produce to the maintenance and education of A. B., and when he should attain twenty-one to transfer to him the capital, but in case he died under that age the testatrix gave the legacy to his brother and sister equally, Lord Alvanley said, " It certainly was not competent under this trust to the executor, nor could he, if he had applied, have obtained permission from this Court, to advance any part of the capital of the legacy in putting the child out in the world ; for if it had been such a case that the Court would have authorised the act that was done, I desire to he understood that it would he considered as properly done ; for the principle is now established, that if an executor does without application what the Court would have approved, he shall not be called to account, and forced to undo that merely because it was done without application " (6). But where legacies were given to children payable at twenty- wiere cross- one or marriage, with a limitation over on the death of any amongst the child before attaining twenty-one or marriage, not in favour '^'^i^'iren. of a stranger, hut for the benefit of such of the children as should attain twenty-one or marry, a trustee, who had paid a premium on the apprenticeship of a child, who died under twenty-one, was allowed it by the Court (c). The case turned upon the same principle as where a legacy is given to a class, all or some of whom must take the fund absolutely, when, as all have an equal chance of survivorship, the individuals of the class will [a) 4 Ves. 362. for tlie benefit of the oMldren is (J) Id. 369. not mentioned in tke report, but (c) Franklin v. Green, 2 Vern. appears from Reg. Lib. 137. That the limitation over was 520 GENERAL POWEES OF TRUSTEES. [CH. XIX. S. 1. Debts barred by the Statutes of Limitations. Power to release or compound debts. be ordered maintenance even before their shares in the fund have become actually vested (a). An executor has never been held responsible for^ paying a debt due and owing from the testator's estate, but the remedy for which had been barred by the Statutes of Limitation (6). A trustee, under circumstances, may release or compound a debt. Thus, where the tenant of part of the trust estate owed- 335Z. for arrears of rent, and afterwards became insolvent, and the trustee released the debt and gave a bonus of 201. on condition that the tenant should give up the premises, which was done, it was argued that the trustee, before he made the release, should have consulted the cestuis que trust in esse for their consent; and, in case of their obstinacy, should have applied to the Court for directions ; and though it might be true that the tenant was at the time insolvent, yet thereafter he might have become solvent and able to pay the rent ; and as to the gaining of possession, that was of no great value, as there was a proviso in the lease for the landlord's re-entry in case of non- payment of the rent ; but Lord Chancellor Talbot said, " The tenant becoming insolvent, the testator's estate has not suffered by this release, in regard if the arrears of rent had not been released, the trustee could never have gotten them when the tenant was unable to pay them ; and if the testator's estate has not suffered on account of the release, there is no reason it should gain thereby. The trustee seems to have done no- thing but what was prudent. A vexatious tenant may put the landlord to great trouble and delay by a wrongful detainer of the possession, and by damaging the estate in the mean time, and may force the landlord to ejectments, writs of error, and bills in equity, by means of which he may lose not only his accruing rent, but his costs of suit. Neither will I make any difference between the 201. and the release of the arrears, for both were but one entire consideration for the tenant's quitting the possession ; and by the same reason that the trustee has been allowed the one, he ought to be allowed the (a) See Rop. Leg. oh. xx. s. 5 ; Oreenwell v. Oreenwell, 5 Vesey, 194 ; Cavendish v. Mercer, cited ib. ; Brandon v, Aston, 2 T. & C. Ch. Ca. 30. (5) Stahlschmidt v. Lett, 1 Sm. & Gif. 415. CH. XIX. S. 1.] GENEEAL POWEKS OP TRUSTEES. 531 other "(a). But if a trustee release or compound a debt There must be a without some sufficient ground in justification of his conduct, he will clearly be answerable to the cestui que trust for the amount of the devastavit (b). The same principles may be applied to cases of constant Release of equity . of redemption. occurrence m practice. Thus trustees of an equity oi redemp- tion of lands mortgaged for more than their value, may release • the equity of redemption to the mortgagee, rather than be made defendants to a foreclosure suit, the costs of which, so far as incurred by themselves, will fall upon the trust estate. Where trustees are mortgagees they are often requested to whether trustee release part of the land from the security, in order to enable mortgagees can '^ •' ' release part oi the mortgagor to deal with it for his own convenience. Where the land in the value of the land is not excessive as compared with the debt, it would, of course, be a gross breach of trust to dete- riorate the security. But suppose the value of the part to be left in mortgage to be at least double the amount of the debt, may the trustees release the residue ? It is presumed that trustees can never justify the abandonment of any part of the security on the mere ground of consulting the convenience of the mortgagor. They must be prepared to show that the act was calculated under the circumstances to promote the interests of the cestuis que trust. If, for example, the mortgagor be ready to pay off the mortgage on a transfer of the security, unless the trustees will consent to release, and the existing mortgage, even when confined to the narrower parcels, is a highly beneficial one and the value still abundantly ample, it is conceived the trustees would not incur responsibility in acceding to the arrangement. A trustee may reimburse himself a sum of money bond fide advanced by him for the benefit of the cestui que trust, or even for his own protection in the execution of his office. Thus, a trustee of lOOOZ. South Sea stock had mortgaged Ueimhnrsement it to the South Sea Company, at the request of the cestui que aecount'^o/the trust for 4000Z. ; some time after, the South Sea bubble burst and the lOOOZ. stock fell to a mere nominal value. An act trust. (a) Blue V. Marshall, 3 P. W. (S) Jevon v. Bush, 1 Vern. 342 ; 381 ; and see Matcliffe v. Winch, Gorge v. Chansey, 1 Ch. Re. 125 ; 17 Beav. 216. Wiles v. Gresham, 5 De Gex, M. & G. 770. 522 GENEEAL POWERS OF TBUSTEES. [CH. XTX. S. 1. haviag been passed by which it was provided that if any mort- gagor to the company should pay lOl. per cent, by such a day the debt should be extinguished, the trustee took upon himself to pay the lOZ. per cent., the cestui que trust, who laboured under the impression that a mortgagor was at liberty by for- feiting his pledge to be quit of the debt, refusing to give his consent. The trustee filed a bill against the cestui que trust to recover the money which had been disbursed ; and Lord Chancellor King, in deciding for the plaintiff, observed, " When money is borrowed, it ought to be repaid, and though a pledge was given for it, if that proves insufficient, the borrower ought to be liable. But if in the present case there was only a hazard, the trustee ought not to continue liable to such hazard: on the contrary, as it is a rule that the cestui que trust ought to save the trustee harmless, so, within the reason of that rule, when the trustee has honestly and fairly, without any possi- bility of being a gainer, laid down money by which the cestui que trust is discharged from being liable for the whole money lent, or from a plain and great hazard of being so, he ought to be repaid " (a). Power of trustees A trustee for payment of debts and legacies, and subject admit a debt. thereto upon trust for A. for life with remainders over, has no power, after the accounts have been taken by the Court and A. declared entitled to the possession, to make an admission binding upon A. of any further debt, and to resume the pos- session for the purpose of discharging it (6). Power to grant It has been held that a trustee of lands may grant a reason- able lease. Thus, a testator had devised an estate to two trustees in fee upon trust out of the yearly rents and profits to pay two annuities of 60^ and lOZ. respectively, and subject thereto upon trust for certain persons successively for hfe, with remainder to their issue. The trustees granted a lease of the lands for the term of ten years, and Sir John Leach held that they had not exceeded their authority (c). • But it (a) Balsh v. Hyham, 2 P. "W. 501 ; and see Bowes v. East Land. 463. Waterworhs^ Com. Jao. 324; Dro- (h) Underwood v. Hatton, 5 Beav. han v. Drohan, 1 B. & B. 185 ; 36, Middleton v. JDodswell, 13 Ves. (c) Naylor v. Arnitt, 1 R. & M. 268. CH. XIX. S. 1.] GENEKAL POWEES OF TRUSTEES. 523 must not be inferred from this case that a trustee is at liberty, except under peculiar circumstances, to grant other than a husbandry lease, which never exceeds twenty-one years (a) ; and of course he cannot make even that demise where it is a simple trust, and the cestui que trust is in possession, except he do it with the cestui que trust's concurrence. And prima facie a trustee for sale would not be justified in granting a lease (6). .■^^g^^**-^^^^^ A trustee has no power mero motu, in the absence of express Power of varying authority, to vary the securities upon which the trust-fund stands invested, assuming them to be proper (c). Indeed, where he makes the investment ia the first instance himself, he ought, in all cases where the settlor has not warranted a different course, to invest in the 3 per cent. Consols ; and then, as that fund is considered by the Court the most beneficial to the trust, he would hardly be justified in making a change not tending to ameliorate the estate. Should the trust authorise an investment upon real or government securities without any power of variation, and the trustee lend upon mortgage, of course ' he cannot prevent the mortgagor from paying off the money, and therefore he may sign a discharge for it, and may then invest it upon another mortgage, or in the funds {d). Where, however, the trustee was directed to invest upon security, but real security was not mentioned, and he lent upon a mortgage, the Court did not think it so clear that the trustee could sign a receipt when the money was paid off as to compel a purchaser to take a title which depended on that question (e). The power of signing a receipt ia such cases depends on the intention as collected from the instrument, and unless it contain authority to lend on a mortgage no power of signing a receipt when it is paid off is implied. The powers assigned in the preceding pages to trustees Case of suit mstl- must be taken subject to the qualification, that if a suit has made. been instituted for the execution of the trust, and a decree [a)^eQ Attorney-Generals. Owen, {d) Wood v. Harman, 5 Mad. 10 Ves. 560. 368 ; Loche v. Zomas, 5 De Gr. & (5) Uvans v. Jackson, 8 Sim. 217. Sm. 326. (e) See Angell v. Dawson, 3 T. & (e) Sanson v. Beverley, Vend. & C. 316. P. 848, nth Ed". 524 SPECIAL POWERS OF TRUSTEES. [CH. XIX. S. 2. made, the powers of the trustees are thenceforth so far para- lysed that the authority of the Court must sanction every subsequent proceeding {a). Thus the trustees cannot commence or defend any action or suit or interfere in any other legal proceeding without first consulting the Court as to the propriety of so doing (J). A trustee for sale cannot sell(c). The committee of a lunatic cannot make repairs (cZ). An executor cannot pay debts (g), nor deal with the assets for the purpose of investment (/). Case of suit and A suit in which a bill merely has been filed is to be distin- no QfifjPGfi guished from one in which a decree has been made^ for until a decree the plaintiff may dismiss his bill at any moment and should he do so, the progress of the trust may have been arrested for no purpose (g). However, even in this case the trustees cannot be advised to act without first consulting the Court, and if by acting independently of the Court expenses be incurred which might have been avoided had the trustees applied to the Court they may be made to bear them per- sonally {h). SECTION 11. THE SPECIAL POWBKS OF TKT7STEES. Powers legal and UpoN this branch of our subject we shall consider, First, equitable distin- ■ c guished. The different kinds of powers ; Secondlyj The construction oi powers ; Thirdly, The effect of disclaimer, assignment of the estate, and survivorship among the trustees ; and. Fourthly, The control of the Court over the exercise of powers. I. Of the different kinds of powers. In applying the doctrine of powers to the subject of trusts (o) Mitchelson v. Piper, 8 Sim. (e) Mitchelson v. Piper, 8 Sim. 64 ; Shewen v. Vanderhorst, 2 R. & 64 ; and see Jackson v. Woolley, 12 M. 75 ; 8. C. affirmed, 1 B. & M. Sim. 13. 347. (/) Widdowson v. Buck, 3 Men ' (6) See Jones v. Powell, 4 Beav. 494. 96. {g) Cafe v. Bent, 3 Hare, 249; (e) Walker v. Smalwood, Amb. Neeves v. Burrage, 14 G. B. R. 504. 676; Annesley v. Ashurst, 3 P. W. (h) Attorney- General v. Clack, 1 282. Beav. 467 ; and see Cafe v. Bent, {d) Anon, case, 10 Yes. 104. 3 Hare, 249. CH. XIX. S. 2.] SPECIAL POWERS OF TRUSTEES. 535 it may he useful to regard powers as either legal or equitable : the former such as operate upon the legal estate, and so are matter of cognisance to Courts of common law ; the latter, such as affect the equitable interest only, and so fall exclusively under the notice of Courts of equity. Thus, if lands be limited to the use of A. for life, remainder to B. and his heirs, and a power operating under the statute of uses be given to C, the execution of the power works a conveyance of the legal estate : but if lands be limited to the use of A. and his heirs upon trust for B. for. life, remainder upon trust for C. and his heirs, and a power not operating under the statute of uses be given either to the trustee or to the cestui que trust, the execution of such a power will have no effect at law, but will merely serve to transfer the beneficial interest in equity, and may therefore be designated by the name of an equitable power. An equitable, the same as a legal power, may be either Equitable annexed to the estate or be simply collateral ; but whether it annexed to the shall be taken as the one or the other wiU depend on the ^'*f*f' "f ^^^^ question, whether the donee of the power be possessed of the equitable, that is, of the beneficial interest, or not. Thus, where a testator devised to his sister and her heirs for ever, with a direction to settle the property on such of the descend- ants of the testator's mother as his sister should think fit, and, the devisee having married, the question was raised whether the execution of the power by her, as she was under coverture at the time, was to be considered as valid, Lord Hardwicke said, "It is objected that a. feme covert cannot execute a power, and that there are no words in the will authorising her to do so ; but this is a power without an interest, and is impro- perly called a power, for, being a direction to a person who has the fee,- it is rather a trust {a)." On the other hand, where the legal estate was devised to trustees upon trust for an infant feme covert for her sole and separate use during her life, and upon trust to permit her by deed or writing executed in the presence of three or more witnesses, notwithstanding her coverture, to dispose of the estate as she should think fit, and the testator died leaving the feme covert his heir at law, and (o) Godolphin v. Qodolphin, 1 Ves. 21. 526 SPECIAL POWEES OF TEUSTEES. [CH. XIX. S. 2. she, during the continuance of the coverture and infancy, exercised the power by will, Lord Hardwicke, upon the ques- tion whether the power had been duly executed, observed, " This is a power coupled with an interest, which is always considered different from naked powers. It was admitted that if this execution was to operate on the estate of the infant, it might not be good : now this is clearly so, for she had the trust in equity for life, with the trust of the inheritance in her in the mean time, which would remain in herself, if undisposed of, and descend to her heir ; so that this is directly a power over her own inheritance, which cannot be executed by an infant "(a). Bare powers, Again, powers, in the sense in which the term is commonly coupled with a used, may be distributed into mere powers, and powers coupled ''^'^^'' with a trust (b). The former are powers in the proper sense of the word ; that is, not imperative, but purely discretionary ; powers which neither the trustee can be compelled to execute, nor, on failure of the trustee, can be executed vicariously by the Court. The latter, on the other hand, are not arbitrary, but imperative, have all the nature and substance of a trust, and ought rather, as Lord Hardwicke observed, to be desig- nated by the name of trusts (c). " It is perfectly clear,'' said Lord Eldon, " that where there is a mere power, and that power is not executed, the Court cannot execute it. It is equally clear, that wherever a trust is created, and the execution of the trust fails by the death of the trustee or by accident, this Court will execute the trust. But there are not only a mere trust and a mere power, but there is also known to this Court a power which the party to whom it is given is entrusted and required to execute ; and, with regard to that species of power, tlie Court considers it as partaking so much of the nature and qualities of a trust, that if the person who has the duty imposed upon him does not discharge it, the Court will, to a certain extent, discharge the duty in his room and place" {d). (a) Hearle v. Greenhanh, 1 Ves. Hutchinson v. Hutchinson, 13 Ir. 298, see 306 ; and see Blithers case, Eq, Rep. 332. Freem. 91 ; Penne v. Peacock, For. (c) Godolphin v. GodolpUn, 1 43. Ves. 23. (6) See Gower v. Mainwaring, 2 (^^^ Brown v. Higgs, 8 Ves. 570. Ves. 89; Cole v. Wade, 16 Ves. 43 ; CH. XIX. S. 2.] SPECIAL POWERS OF TRUSTEES. 527 Again, powers have been dealt with by the Court as either Strict powers, „ . ~ ■■ . , 1 /. 1 *i"i powers of a strict or ol a directory character : the lormer such as can directory. only arise under the exact circumstances prescribed by the settlement ; the latter, such as being merely monitory, may be taken with a degree of latitude. Thus, where an advowson was vested in trustees upon trust to elect and present a fit person within six months from the incumbent's decease, it was considered the clause was directory, and that the trustees might equally elect and present, although that period had elapsed (»). So where six trustees were empowered when reduced to three to substitute others, and all died but one, it was held competent to the sole survivor to fill up the number (6). And where, in the case of twenty-five trustees, the direction was, that when reduced to fifteen the survivors should nomi- nate, it was determined by the Court that, although seven- teen remained, the survivors were at liberty to exercise their power, but that, when reduced to only fifteen, they were compel- lable to do so (c). These were cases of charitable trusts, in which it seems a greater latitude of construction is allowed. But in another case, where the trusts were not charitable, estates were devised to trustees upon trust to sell " with all convenient speed, and within five [years," and it was held that these words were directory only, and that the trustees could sell and make a good title, although the five years had expired {d). II. We proceed to consider the construction of powers. As the powers of trustees are regulated by the doctrines applicable to powers in general, we shall advert only to a few cases of most frequent occurrence. If a power be given to "A. and B. and their heirs," it is I'o'w'erto "A. ^ ° and B., and their perfectly clear that the words are not to be understood to this heirs." extent, that, as the limitation of an estate in such terms would so vest it in the grantees that they might convey it to a stranger, and the survivor devise it, the power is to be (a) Attorney -General v. Scott, 1 but see Foley v. Wontner, 2 Jao. & Ves. 413, see 415. Walk. 245. (6) Attorney- General v. Floyer, (c) Doe y. Hoe, 1 Anst. 86. 2 Vern. 748 ; and see Attorney- (d) Pearce v. Gardner, 10 Hare, General v. Bishop of Lichfield, 5 287 ; aad see Cuff v. Sail, 1 Jur. Ves. 825; Attorney- General v. N. S. 973. Cuminy, 2 T. & C. Ch. Ca. 139; 528 SPECIAL POWERS OF TRUSTEES. [CH. XIX. S. 2. Chief Justice Wilmot's opinion. Townsend v. Wilson. construed as intended in like manner to be assignable and devisable (a). Upon the subject of such a power we have the following pointed remarks of Lord Chief Justice Wilmot : " It is asked," he said, " what must become of the power upon the death of one of the trustees. It must be considered as a tenancy in common. Had the words been ' their several and respective heirs,' it would have been clear ; and in common parlance, and according to the common apprehension of mankind, when an estate is given to two men and their heirs, no one not illu- mined with the legal nature of joint-tenancy could ever con- ceive the estate was to go to the heirs of the survivor. It is equivalent to saying. With consent of both while they live- hut when one dies, that consent shall devolve upon his heir; the heir of the dead trustee shall consent as well as the surviving trustee. One may abuse the power; I will supply the loss of one by his heir, and the loss of both by the heirs of both (6)." In Townsend v. Wilson (c) a power of sale was given to three trustees and their heirs ; and it was directed that the money to arise from the sale should be paid into the hands of the trustees, or the survivors or survivor of them, and the executors, administrators, or assigns of such survivor, and there was a power of appointment of new trustees, with a direction such appointment should take place as often as any one or more of the trustees should die, &c. One of the trustees died, and it was determined by the Court of Queen's Bench, that the survivors alone were incapable of exercising the power. Lord Eldon expressed himself dissatisfied with this decision, and asked, " Did the Court of Queen's Bench consider that the two surviving trustees and the heir of the deceased trustee were to act together? for it was one thing to say that the survivors could not act until another was appointed; and a different thing to say, the heir of the deceased trustee could act in the meantime " {d). No reasons were given by the (o) Cole V. Wade, 16 Yes. 46, per Sir W. Grant. (J) Mansell v. Vaughan, "Wilm. 60, 51. (c) 1 B. & Aid. 608, 3 Mad. 261 ; andsee CooTce v. Crawford, 13 Sim. 91. (d) Hall V. Dewes, Jao. 193 ; and see Jones v. Price, 11 Sim. 557. CH. XIX. S. 3.] CONSTRUCTION OF POWERS. 629 Court for their judgment, and it is difficult to collect on what grounds it proceeded (a). In Hewett v. Hewett (b), a testator devised his estate to four Hewett v. persons to uses in strict settlement, with a power to the tenants for life, when in actual possession, to cut such trees as the four devisees to uses, or the survivors or survivor of them (omitting the words " and the heirs of the survivor ") should direct ; and all the trustees being dead, the question was whether the power was gone. Lord Henley held, that upon the construction of the wUI, the testator intended the power to be co-extensive with the life estates, and that the trustees were interposed, as supervisors only, to prevent destruction ; and that the office of the trustees was not personal, but such as might be executed by the Court. He, therefore, considered the power as subsisting, and referred it to the Master to inquire what timber was fit to be cut. In this view of the case the Court did not regard the authority to the trustees as a mere power, but as a trust. It stni remains to be decided how powers, in the strict sense, limited " to trustees and their heirs " are to be construed. Though where a discretionary legal power is expressly limited Power to to "A. and his assigns," the grantee or devisee of A., and even a his assigns." claimant under him by operation of law as an heir or executor, may exercise the power (c) ; yet in a trust, if an estate be vested in a trustee upon trust that he, his heirs, executors, adminis- trators or assigns shall seU, etc., the introduction of the word assigns will not authorise the trustee to assign the estate to a stranger (d), nor will the stranger be capable of exercising the power (e). But in a mortgage, with a power of sale limited to the Power given to a mortgagee, his heirs, executors, administrators and assigns, the intention is that the power should go along with and be annexed to the security : and, therefore, if the mortgage be assigned to a stranger, and the legal estate be conveyed to the- stranger or to a trustee for him, the stranger alone or with the (a) Sugd. Pow. 490, 6th Ed°. {d) The case oiHardwiehY.Mynd, (J) 2 Eden, 332, Amb. 508. 1 Anst. 109, cannot in this respect (e) Sow V. Whitfield, 1 Vent, be supported. 338, 339 ; 1 Freem. 476. (e) See pp. 266, 267, su^ra. M U 530 CONSTEUCTION OF POWEES. [CH. XIX. S. 2. Power indicating personal con- fidence to "A. and his exe- cutors." Power to "exe- cutors," "trus- tees." concurrence of the trustee, can give a good legal and equitable title {a) ; and even if a mortgage be made to A. and B. to secure a joint advance, and the power of sale and signing receipts be limited to A. and B., their heirs and assigns, it has been held that as the power and the security were plainly meant to be coupled together, and the security enures to the benefit of the survivor, (the advance being a joint one,) the survivor may also seU(6). If a power indicating personal confidence be given to a " trustee and his executors," and the executor of the trustee die having appointed an executor, the latter executor, though by law the executor not only of his immediate testator but also of the trustee, wiU not, it has been thought, be so considered for the purposes of the power (c). A matter of personal con- fidence is not extended beyond the express words and clear intention of the settlor ; and in this case, the settlor may have meant the power to be exercised exclusively by the executors, whom the trustee should himself name, and not by a person who is executor of the trustee by operation of law only. A power limited to " executors " or " sons in law " may be exercised by the survivors so long as the plural number re- mains {d) ; and if a power be limited to " trustees " we may reasonably conclude it may be exercised by the surviving trus- tees. And a power given to " executors " wUl, if annexed to the executorship, be continued to the single survivor (e) ; and so a power given to " trustees " will, as annexed to the office, be exercisable by the survivor (/). But, of course, not by one of the trustees in the lifetime of the other who has not effec- tually disclaimed (g). And if a power be communicated to "the trustees for the time being" of a will, it cannot be exercised by a single trustee (h). (a) Saloway v. Strawhridge, 1 Kay & Johns. 371. (5) Hind v. Pooh, 1 Kay & Johns. 383. (c) See Cole v. Wade, 16 Ves. 44 ; Stile v. Tomson, Dyer, 210 a ; Perk. sect. 552; and see 1 Sug. Pow. 145, 6th Ed°. {d) 1 Sug. Powers, 144, 6th Ed". (e) 1 Sug. Powers, 144, 6th Ed°. Houell V. Barnes, Cro. Car. 382 ; Srassey v. Chalmers, '4 De Gex, M. & G. 528, reversing the decision of the Master of the Rolls, 16 Beav.231. (/) Lane v. Debenham, 17 Jur. 1005. (g) Lancashire v. Lancashire, 2 Phill. 664. (h) Lancashire v. Lancashire, 2 Phill. 576 J 1 De G. & Sm. 288. CH. XrX. S. 2.] DISCLAIMEE. 531 A power to four trustees "and the survivors of them" Power to "Trus- cannot, it seems, be executed by the last survivor (a); for vivors." though a power to trustees may, in general, be held to survive, an intention to the contrary may here be fairly inferred : the settlor may be supposed to have said, " I repose a confidence in any two of the trustees jointly, but in neither of them indi- vidually." But if a power be limited to four trustees "and the To "Trustees survivor of them," it may be argued, that on the death of one the power may stiU be exercised by the survivors ; for there can be no vaUd reason why a person who trusted the four jointly, and each of them individually, should refuse to repose a con- fidence in the survivors for the time being (6). However, it is a question of intention upon the construction of the instrument, and a priori reasoning cannot be relied upon without a decision. In Trower v. Knightley (c) a testator devised an estate to trus- Trower v. tees upon trust as to one moiety for A. for Ufe, remainder to her children at twenty-one, and as to the other moiety for B. for life, remainder to her children at twenty-one, and gave the trustees a power of sale " during the continuance of the trust." A. died, and her children attained twenty-one, and the ques- tion was whether the trustees could, under the power, sell the whole estate, the children of B. being infants. The Vice- Chancellor held, that if the children of A. could call for a present conveyance of their moiety it would have the effect of depriving B. and her children of the benefit of the power of sale, and also of the leasing power given to the trustees, for that an undivided moiety could not advantageously be sold or leased, and that the testator must have meant to continue the powers of ownership to the trustees until there were owners competent to deal with the whole estate. But if a power be given to trustees to be exercised " during Power " during the contiauance of the trust," it cannot be exercised after the of theVust*""^ time when the trust ought to have been completed, though, from (o) Hibhard v. Lamhe, Amb. 309. 97 ; in wMch case it seems to have Note, further directions were declared been assumed that the receipt of the necessary on the death of either of survivorswould have been a sufficient the surviving executors. See Eaton discharge. V. Smith, 2 Beav. 236. (c) 6 Mad. 134. (5) See Crewe v. Dichen, 4 Ves. M M 2 532 DISCLAIMEE. [CH. XIX. S. 2. Effect of dis- claiineT upon powers. the delay of the trustees, it happens that the trust has not in fact been executed (a). III. Of the effect of disclaimer, assignment, and survivorship of the estate. First. If a power be given to co-trustees, and one of them disclaim, the power may be exercised by the continuing trustee or trustees. Jenkins observes, " If a testator devise that A. and B. shall sell, and near the end of the will he names them executors, if one refuses at common law (6), or dies, the other may sell, for the power is annexed to the executorship "(c); and in the instance of trustees, it may equally be argued that although given to persons by name, the power is annexed to the trusteeship. And of this opinion apparently was Lord Loughborough in the case of Crewe v. Dicken (d) ; for a power of signing receipts having been limited to three trustees by name, and one of them being dead, his Lordship remarked, " If A. B. (one of the survivors) had renounced," (that is, had disclaimed instead of constructively accepting the trust by the execution of a conveyance,) " the whole estate would have been in the con- tinuing trustee exactly as if the two other trustees had died ia the life of the testator ; " and it is evident from the context that his Lordship meant to extend the observation to the power of signing receipts. In Hawkins v. Kemp (e), a purchaser at first objected that the accepting trustees could not exercise the power, or not without the appointment of a new trustee in the place of the trustee who had disclaimed, but the point was afterwards abandoned by the purchaser's counsel as untenable. (o) Wood v. Wliite, 2 Keen, 664. It was determined on appeal tkat the trusts in this case were still in being, 4 M. & Cr. 460. (5) That is, independently of 21 H. 8, 0. 4, which, upon refusal by one executor, authorised a sale by the co-executor. (c) Jenk. 44. (rf) 4 Ves. 97. (e) 3 East. 410. " I have always understood, said the late V. C. of England, ever since the point was decided in Sawhins v. Kemp, or rather was, as the judges said in that case, properly abandoned by the defendant's counsel as not capa- ble of being contended for, that where two or more persons are appointed trustees, and all of them, except one, renounce, the trust may be executed by that one," Cooke v. Crawford, 13 Sim. 96. CH. XrX. S. 2.] ASSIGNMENT OF POWERS. 633 And Adams v. Tawnton (a) is a direct decision by Sir J. Leach Adams «. Tann- to the same effect. A testator had devised his estates to A. *™" and B. upon trust to sell and apply the proceeds amongst his children, and declared that the receipts of the said A. and B. should be sufficient discharges. A. renounced, and Sir J. Leach, after having taken time to consult the authorities, said, " It being now settled that a devise to A., B., and C. upon trust is a- good devise to such of the three as accept the trust it follows by necessary construction that by the receipts of the trustees is to be intended the receipt of those who accept the trust " (&). If the power be not given to the trustees by name, but to the " trustees " or " executors ; " it is clear, a fortiori, that if one disclaim the acting trustees or executors may exercise the power (c). Secondly. As to the effect of assignment of the estate, it is Effect of assign- certain that the power is not appendant to the estate, so as to estate. follow along with it in every transfer by the party, or devolution by course of law {d). But where the estate is duly transferred to persons regularly appointed trustees under a power in the set- tlement creating the trust, the transferrees, of course, take the estate and the office together, and can exercise the powers. Where the settlement contains no such power, it seems that the appointment of new trustees by the Court will not commimicate special discretionary or arbitrary powers (e), unless they be limited to the trustees for the time being (/), or be otherwise in fair construction annexed to the office ig). {a) 5 Mad. 435 ; and see Bayly v. (rf) Cole v. Wade, 16 Ves. 47, per Cumming, 10 Ir. Eq. Ee. 410; Coohe Sir W. Grant; Crewe v. Dichen, 4 V. Crawford, 13 Sim. 96 ; Sands y. Yes.91 ; Ite]Surtfsi:sfate,lDie-WTj, Nugee, append. No. viii. S. C. 8 319; Wilson v. Bennett, 5 De Grex Sim. 130. & Sm. 475. Tlie case of Hardwick (6) From Ms Honour's words, v. Mynd, 1 Anst. 109, is an anomaly, "the receipts of tte trustees," it (e) Doyley v. Attorney-General, might be thougiit the power had 2 Eq. Ca. Ah. 194 ; Fordyce v. been given, not to A. and B. by Bridges, 2 PhiU. 497 ;«iViswman v. name, but to "the trustees:" the Warner, 1 Sim. N. S. 457 ; and see E. L. has been consulted, and it ap- Cole v. Wade, 16 Ves. 44, 47 ; pears, as stated in the report, that the Sibbard v. Lambe, Amb. 309. power was given to "the said A. &B." {/) Baxtley v. Bartley, 3 Drew. (c) Worthington v. Evans, 1 S. & 384 ; Brassey v. Chalmers, 4 De S. 165 ; Boyce v. Corbally, Rep. t. Gex, M. & G. 528. Plunket, 102 ; and see Clarke v. (jr) Byam v. Byam, 19 Beav. 66. Parker, 19 Ves. 1. 534 ASSIGNMENT OF POWEKS. [CH. XIX. S. 3. Release with the intention of dis- claiming. Whether the power Trill re- main in the trustee after alienation of the estate. Case of real and personal estate coupled together. We have seen that if one trustee discla/im in the strict sense of the word, the power will not be extinguished, but will sur- vive to the co-trustee ; but, according to the old doctrine, if a trustee instead of disclaiming had released the estate, that was a virtual acceptance of the trust, and then the conveyance of the retiring trustee did not pass the power into the hands of the continuing trustee (a) ; but at the present day it seems a release with the intention of disclaimer would have all the operation of a formal and actual disclaimer (&). Though an assignment of the estate wiU not carry the power to the assignee, it does not foUow that the power will remain in the assignor; for where it was the settlor's intention that the estate and power should be coupled together, the trustee, by severing the union through the alienation of the estate, ceases to be the person intended to execute the power. Thus if an estate be limited to A. and his heirs upon a trust to be executed by A. and his heirs, and A., in his lifetime, conveys away the estate, or devises it by his will. A., the alienor or his heir, cannot now execute the power (c). The heir, indeed, is no heir quatenus this estate ; for it was not allowed to descend, but was devised away from the person who would have been heir. Upon a similar principle, in Cole v. Wade{d), where the power was given to the trustees, and the heirs, executors, and • administrators of the survivor, it was held, that on the death of the survivor the power was extinguished. The circum- stances were these: A testator gave the residue of his real and personal estate to Euddle and Wade (whom he appointed his executors), their executors, administrators, and assigns, and directed his said trustees and executors, after making certain payments thereout, to convey and dispose of the said residue of his real and personal estate unto and amongst such of his relations and kindred in such proportions, manner, and form, as his said executors should think proper, his intention being that everything relating to that disposition should be entirely {a) Doyley v. Attorney-General, 2 Eq. Ca. Ab. 194 ; Crewe v. Dichen, 4 Yes. 97. (5) Supra, p. 233. (c) Wilson V. Bennett, 5 De Qex & Sm. 475; and see Se BurWs Estate, 1 Drew. 319. {d) leVes. 27. CH. XIX. S. 2.] ASSIGNMENT OF POWERS. 535 in the discretion of the said trustees and executors, and the heirs, executors, and administrators of the survivor of them; and the testator directed his said trustees and executors and the survivor of them, and, the heirs, executors, and administrators of the survivor of them to mortgage or sell the said residue, or such part thereof as they in their discretion should think proper ; the testator meaning to leave it in the discretion of his said trustees and executors to convey unto his relations the said residue in such manner and form as his said trustees should think proper : and, lastly, he directed that the said Ruddle and Wade, or the survivor of them, or the heirs, executors, or administrators of such survivor, should make the division within fifteen years from the testator's decease. Wade, the survivor, devised and bequeathed the real and personal estate of the testator to William and Edward Bray, their heirs, exe- cutors, administrators, and assigns upon the trusts of the will, and named them his executors for that specific purpose only, appointing his wife and another person executors as to his own estates. The question was agitated, whether William and Edward Bray could exercise the power of distribution among the relations. Sir W. Grant said, " The original trustees and executors were the same persons ; all the real and personal estate was vested equally in them ; but the heirs and executors of the surviving trustee might be different persons : yet all the directions about the distribution of the residue proceed upon the supposition that the same persons are to select the objects and settle the proportions in which they are to take ; but if the real estate is to go to one, and the personal estate to another, the testator has left it entirely uncertain how the power is to be executed. Whether the Messrs. Bray can in any sense be the executors of Wade, with whose own property they are not to intermeddle, it is not material to determine." His Honour, therefore, decided, that the power had become extinguished. But, of course, the estate and the power, though originally The Court may intended to be in the same hands, may be vested in different severance of the persons with the sanction of the Court, where the intentions pf^*,/™"" *^® of the settlor cannot otherwise be conveniently effected. Thus a testator gave a sum of money to be invested in the funds in the names of the head of a college at Oxford, the junior bailiff powers. 536 suEvrvoESHip of powees. [ch. xrx. s. 3. of the city, and the elder churchwarden of a parish, the divi- dends to be applied to certain purposes as the trustees should approve. The bailiff and churchwarden being annual of&cers, the investment as directed by the will would have been accom- panied with frequent transfers of the stock : the Court there- fore ordered that the money should be invested in the names of two new trustees jointly with the head of the college, but that the objects of the charity should be nominated and approved in the manner pointed out by the will (a). SurviTorahip of Thirdly. As to survivorship. The survivorship of the estate carries with it the survivorship of such powers as are annexed to the trust. If a mere power be given to A., B., and C, and one of them die, it is perfectly clear that the power cannot be exercised by the survivors ; but if trustees have an equitable power annexed to the trust, as if an estate be vested in three trustees upon trust to sell, then as the power is coupled with an interest, and the interest survives, the power also survives (6). The principle that trust powers survive with the estate appears to be as old as the time of Lord Coke, for he observes, " If a man deviseth land to his executors to be sold, and maketh two executors, and the one dieth, yet the survivor may sell the land, because as the estate, so the trust shall survive ; and so note the diversity between a bare trust and a trust coupled with an interest " (c). At the present day a trust, that is, a power imperative, whether a bare power, or a power coupled with an interest, would equally be carried into execution in the forum of a court of equity ; for the maxim now is. The trust or power imperative is the estate. But in the time of Lord Coke had a bare power been devised to A. and B. to sell an estate, as for payment of debts, the authority was one which A. and B. during their joint lives were compellable by subpoena in Chancery to execute for the benefit of the creditors; but if [a] Ex parte Blachlurne, 1 J. & 2 P. W. 108, 121, 124 ; Butler v. W. 297; and see Hibhard v. Lamhe, Bray, Dyer, 189 b; By am v. By am, Amb. 309. 19 Beav, 58 ; Jenk. 44; Co. Lit. (6) Lane v. Dehenham, 17 Jur. 112 b, 113 a; Flanders v. Clarke, 1005 ; and see Gouldsb. 2, pi. 4 Peyton v. Bury, 2 P. W. 628 Mansell v. Vaughan, Wilm. 49 Eyre v. Countess of Shaftesbury, 181 b. 1 Ves. 9; Potter Y. Chapman, Amb. 100. (c) Co. Lit. 113 a; and see ib. CH. XIX. S. 2.] STJEVIVORSHIP OF POWEES. 537 A. happened to die before the sale had been carried into effect, the trust was extinguished, and the heir, who had always retained a right to the intermediate rents and profits, was then seised of the absolute and indefeasible inheritance. But in case the testator had devised the estate to A. and B. to sell for payment of debts, then, as the trust was not a mere power, but a power coupled with an interest, it received a more liberal construction, and as upon the death of A. the whole estate passed by survivorship to B., the power, being annexed to the estate, was considered as intended to survive with it (1). A distinction may perhaps be thought to exist between cases Survivorship where the language of the power is indefinite, as to the ^ given to tnie-'^ tees by name. (1) In. ezamining the cases of powers before tlie Statute of Uses, tlie following points may he nsefally noticed. 1. A person seised of the legal estate of lands could not, before the Statute of Wills, have devised them, directly, and therefore he could not have gained his object indirectly by means of a power : had a testator devised that A. and B. should sell his estate, the authority was void. 2. But a use was devisable, and therefore, if cestui que use had devised the lands to a stranger, though the legal estate did not pass (the statute of Richard the Third, which made mention of feoffments and grants, not extending to wUls), the devisee might still have sued his subpoena in Chancery, and have compelled the feoffees to execute a conveyance of the estate. 3. If cestui que use had devised that A. and B. should sell, and A. and B. in pursuance of the authority had made a feoffment or grant, this assurance seems to have operated retrospectively as the assurance of the testator, and so, falling within the words of the statute of Richard, served to pass even the legal estate. 4. And cestui que use might have devised such an authority even to his feoffees, and the power would have been construed in the same manner as if it had been devised to a stranger : thus where a man enfeoffed A. and B. to his own use, and after- wards devised that the said A. and B. should sell the estate and apply the proceeds, &o., and A. and B. on the decease of the testator, enfeoffed C.and D. to the like uses, it was ruled that A. and B. might still sell under the power, although they had parted with the legal fee. 5. Until the sale was effected, the feoffees were trustees for the testator's heir, and were bound to account to him for the accruing rents and profits ; and if the power, which, whether given to a stranger or to the feoffees, was construed as a naked authority, became extinguished by any means, as by the death of the donees of the power, the heir was as absolutely entitled to the use in fee, as if no will had been made. 6. So long as the power subsisted, the person who would suffer by the extinguishment of the power might have compelled the donees, by filing a bUl in Chancery, to execute the power. 1. But if the proceeds of the sale were to be distributed in pios usus, as no one could plea a personal loss by the non-execution of the power, there was no one to sue a suhpcena, and the donees of the power were left to the arbitrary exercise of their own discretion. See case temp. H. 7, Treat, of Powers, Appendix, No. 1. Before statute of uses a power given by will over the legal estate was void. Over the use was good. The execution of the power over the use passed the legal estate. The power might he vested in the feoffees. Until the power was executed the feoffees were trustees for the heir. The object of the power could have compelled the execution. If no specific object of the power, the exe- cution was optional. 538 SUEVIVOESHIP OF POWERS. [CH. XIX. S. 2. Powers not annexed to the trust. Control of the Court over arbi- trary powers. Pink V. De Thuisey. persons by whom it is to be exercised ; for example, where an estate is vested in trustees and their heirs in trust, to sell, &c., and those cases where the power is limited to persons by name, as upon trust, that " the said A. and B." or that " the said trustees, " (which is equivalent to naming them,) shall sell ; but the Courts have never relied upon any distinction of the kind, and it seems to be now decided that even where the trust is reposed in the trustees by name, the survivor, who takes the estate with a duty annexed to it, can execute the trust (a). But powers that are purely arbitrary, and independent of the trust, and not intended in furtherance of the trust, must, it is conceived, be construed strictly, and be governed by the rules applicable to ordinary powers. If, for instance, the trustees by name have a power of revoking the limitations, and shifting the property into a different channel, this discretion is evidently meant to be personal, and not to be annexed to the estate. IV. Of the control of the Court over the exercise of powers. Where a power is given to trustees to do, or not do, a particular thing at their discretion, the Court has no jurisdic- tion to control the trustees in the exercise of that discretion, provided their conduct be bond fide, and their determination is not influenced by improper motives (6). Thus, in Pink v. De Thuisey (c) a testatrix gave lOOOZ. to A. upon a condition precedent, but " left her executor at liberty to give the said sum if he found the thing proper " though the condition should not have been performed. A. died without having fulfilled the condition or received the money, and his (o) Zane v. Debenkam, V. C. Wood, 17 Jur. 1005. (6) Thomas v. Dering, 1 Keen, 729 ; Pinh v. De Thuisey, 2 Mad. 157 ; French v. Davidson, 3 Mad. 396 ; Sillibourne v. Newport, 1 Kay & Johns. 602 ; Walher v. Walker, 5 Mad. 424; Banhes v. Le De- spencer, 11 Sim. 527, per Sir L. Shadwell; Attorney-General y. Go- vernors of Harrow School, 2 Ves. 551 ; Cowley v. Hartstonge, 1 Dow. 378, per Lord Eldon; Potter v. Chapman, Amb. 99, per Lord Hard- wiolce ; Carr v. Bedford, 2 Ch. Ee. 146 ; Wain v. Earl of Egmont, 3 M. & K. 445 ; Livesey v. Sarding, Taml. 460 ; Collins v. Vining, C. P. Coop. Rep. 1837-38, 472; KeU- wich V. Marker, 3 Mao. & GFor. 326, per Lord Truro; Lee T. Toung, 2 Y. & C. Ch. Ca. 532. (c) 2 Mad. 157. CH. XIX. S. 2.] CONTEOL OF THE COURT OVEE POWERS. 539 personal represeDtatiTe filed a bill against the executor of the testatrix to compel payment of the legacy. A. in his lifetime had applied for the money, but the executor had not thought it right to comply with the request. Sir T. Plumer, in dismissing the bill, observed, " The executor says he did not think proper to advance the legacy : is the Court to decide upon the pro- priety of the executor's withholding the legacy ? That would be assuming an authority confided by the wiU to the discretion of the executor : it would be to make a wUl for the testatrix, instead of expounding it." Again, where a testator directed that so long as the produce Frencli v. David- of certain estates should be consigned to the house of " D. and Son," in which the testator held a moiety of the emolu- ments, his executors, " unless circumstances should render it unnecessary, inexpedient, and impracticable," should pay out of the income of his residuary property, an annuity of 600L to Messrs. French, and the executors declined to pay the annuity. Sir J. Leach said, " The executors are to exercise the authority, unless circumstances shall render it unnecessary, inexpedient, and impracticable, by which must be meant shall in their opinion render it unnecessary, inexpedient, and impracticable. If they had distinctly stated in their answer that they had not made the payment because, using their best discretion upon the subject, they had come to a conclusion that circumstances had rendered the payment unnecessary, inexpedient, and impracticable, a court of equity could not have controlled their judgment, unless it appeared that they had acted maid fide. But their answer states many mixed motives for their refusal to pay the annuity, and it is plain that they have never simply addressed themselves to the sound exercise of that discretion which the testator has been pleased to place in them ; " and the Court declared in the words of the will, that the annuity was to be paid so long as the consignments were continued, unless in the judgment of the executors, circumstances should render it unnecessary, inexpedient, and impracticable (a). In another case a testator devised an estate to three trustees Walker v. Walker. [a) French v. Davidson, 3 Mad. 396. 540 CONTROL OP THE COURT OVER POWERS. [CH. XIX. S. 2. upon trust, for A. for life, and in case the conduct and behaviour of A. should, for not less a time than the space of seven years, at the least, from the testator's decease, be and continue to the entire satisfaction and approbation of the trustees, agreeing and signifying their unanimous approbation of such conduct, then the said testator gave the said estate to A. ifi fee ; and at the expiration of seven years from the testator's decease, A. filed a bill against the trustees praying that they might signify their approbation of his conduct, and convey the estate to him in fee, and one of the trustees stated by his answer, that he had not such confidence in the conduct and discretion of the plaintiff as to induce him to think that it Would be proper or conformable with the intention of the testator, to give the plaintiff absolute control over the estate. Sir John Leach held, that where the discretion of trustees was to be exercised upon matter of opinion and judgment, as to which well-intentioned persons might differ, the Court could not substitute the Master for the trustees ; and the Court directed an inquiry, whether the conduct of the plaintiff had for seven years from the testator's death been to the entire satisfaction and approbation of the trustees; and whether they had agreed and signified their unanimous appro- bation (a). Thomas v. So, where the trustees of a settlement had a power of sale ^"°^' at the request and by the direction of the tenant for life, and A., the tenant for life, entered into a contract for the sale of the estate to B., and the trustees refused to concur in the sale, and the purcha,ser filed a bill for specific performance against the tenant for life and the trustees, the Court observed, " The contract having been entered into, A. was himself bound to perform it if he could, but he CQuld not perform it without the concurrence of the trustees, and the trustees did not concur " (fe). " With respect to the point which has been raised whether A." can now be called upon to request or direct the trustees to convey, I think that he ought not to be called upon to do so, unless it shall appear that the trustees when. (a) Walker v. Walker, 5 Mad. (J) Thomas v. Bering, 1 Keen, 424. 741. CH. XIX. S. 2.] CONTROL OF THE COUET OVER POWERS. 541 requested or directed ought to comply with the request ; and without at present determining' this point, the strong incli- nation of my opinion is, that the power of sale does give a discretion to the trustees, in relation to all the matters comprised in the terms of the power, and that this Court has no power or jurisdiction to interfere with the discretion so vested in the trustees " {a). And on a subsequent day the Master of the Bolls observed, " I have before stated that I considered the contract binding upon A. but not upon the trustees, and it appears to me, upon the true construction of the settlement under which the trustees hold the estate, that they have a discretion which would entitle them to refuse to concur in a sale requested by A., and that in the absence of any imputation upon them, this Court ought not to interfere with that discretion " (&). Again, where estates were vested in trustees upon trust to Wain v. Egmont. sell, and pay the debts of the settlor, and the trustees were authorised to treat with the creditors for the amount of their debts, and to deliver to them debentures, and it was declared that no creditor should be entitled to any benefit under the deed until such debenture was given ; on a question whether the Court could take upon itself to ascertain the debts, the Master of the EoUs observed, " If the trustees were authorised by this deed to refuse debentures at their discretion to any lawful creditors, it is plain that this Court could never take upon itself the exercise of such a discretion, nor grant power to the Master to ascertain the parties entitled to the benefit of this deed. The creditors must first submit their claims to the investigation and allowance of the trustees, and if the trustees refuse to enter into that investigation, the creditors will then be justified in an application to the Court " (c). In another case, a power was given to trustees with the con- Lee v. Young, sent of the tenant for life to invest the trust monies in purchase of freehold or copyhold estates, or leasehold for a term of not less than 60 years : the tenant for life was desirous of having the fund invested in a certain leasehold property, but one of the trustees, for reasons which he stated, refused, and the (a) lb. 743. (c) Wain v. Egmont, 3 Myl. & (6) Thomas v. Dering, 1 Keen, Keen, 445 ; and see Drever v. 744. Mawdshy, 16 Sim. 511. 642 CONTROL OF THE COURT OVER POWERS. [CH. XIX. S. 2. Court held, without examining into the weight of the reasons assigned, that as the trustee had not acted from corrupt motives, he was not to be controlled (a). Where trustees But where the trustees were " authorised and required," do an act™ " '^th the consent and direction of the tenant for life, to invest iQ leaseholds, the clause was held to be imperative upon the tenant for life's demand, and the trustees were not allowed to say that the leaseholds would impose personal liabilities upon themselves, for by being pai-ties to the settlement they had engaged to do it (6). Power to trustees So, where a thing is to be done, but the mode of doiag it is of doing an act. left to the discretion of trustees, and they are willing to act, and there is no mala fides, the Court will not control their discretion. Thus, if a fund be applicable to the maintenance of children at the discretion of trustees, the Court will not take upon itself to regulate the maintenance, but will leave it in the hands of the trustees (c). Again, where a fund is bequeathed to executors or trustees upon trust to distribute among the testator's relations, or apply the fund to any other specific purpose in such manner as the executors or trustees may think fit, the executors or trustees, if wUling to execute the trust, will not, on a bill being filed for carrying the trusts into execution, be deprived of their discretionary power, but may propose a scheme before the Master for the approbation of the Court {d). So where the objects of the charity are from time to time to be at the discretion of the trustees, as if annual sums be made distributable either to private individuals or public institutions, as the trustees may think fit, the Court will not even order a scheme to be proposed, but will leave the trustees to the free exercise of their power with liberty for all parties to apply («)• (o) Zee v. Young, 2 T. & C. Ch. {d) Brunsden v. Woolredge, Amb. Ca. 532. 507 ; Bennett v. Honeywood, id. 708 ; (J) Beauelerh v. Ashburnham, 8 MahonY. Savage, 1 Sell. &Lef. Ill; Beav. 322 ; Cadogan v. Earl of Supple v. Lowson, Amb. 729 ; &c. Essex, 2 Drewry, 227. (e) Waldo v. Caley, 16 Ves. 206; (e) Livesey v. Sarding, Taml. Horde v. Earl of Suffolk, 2 M. & K. 460; Collins Y. Vining, C. P. Coop. 59; axidiS66 PowerscourtY. Powers- Eep. 1837-38, 472. court, 1 Moll. 616. CH. XIX. S. 2.] CONTROL OF THE COURT OVER POWERS. 543 So where trustees had a power of selecting a lad for edu- cation from certain parishes, and if there were no suitable candidate, then from any other parish, and the trustees upon consideration rejected the candidate from the specified parish, and selected a lad from another parish ; it was held that the Court could not control the discretion. The trustees had assigned no reasons for their choice, but that the Court said was not necessary, and in many cases would not be proper {a). But though the trustees invested with a discretionary power are not bound to assign their reasons for the way ia which they exercise it ; yet, if they do state their reasons, and it thereby appears that the trustees were labouring under an error, the Court will set aside the conclusion to which they come upon false premises (b). Of course there is sufficient ground for the interfei'ence Fraud, of the Court, wherever the exercise of the discretion by the trustees is infected with fraud (c), or misbehaviour (d), or they decline to undertake the duty of exercising the discretion (e) ; or generally where the discretion is mischievously and ruinously exercised, as if a trustee be authorised to lay out money upon government, or real, or personal security, and the trust-fund is outstanding upon any hazardous security (/). And where the trustees of a charity were empowered to lease for three lives or thirty-one years, the Court expressed an opinion that the dis- cretion might be controlled, if it appeared for the benefit of the charity that such a power should not be acted upon (g). Where proceedings had been taken for controlling the The Court will (a) He Beloved Wilkes's Charity, 3 Mac. & Gord. 440 ; and see Byam 3 Mac. & Gor. 440. v. Byam, 19 Beav. 65. (6) Be Beloved Wilkes's Charity, (e) Gude v. Worthington, 3 De 3 Mac. & Gor. 448 ; King v. Arch- Gex & Sm. 389. This was apparently bishop of Canterbury, 15 East. 117. tlie ground on wHcli the case was (c) lb. 552, per Lord Hardwicke ; decided, but the refusal of the trus- Potter V. Chapman, Amb. 99, per tees to act does not sufficiently eundem ; Bichardson v. Chapman, 7 appear on the report. And see Mor- B. P. C. 318 ; French v. Davidson, timer v. Watts, 14 Beav. 622. 3 Mad. 402, per Sir J. Leach. [f) De Manneville v. Crompton, (d) Maddison v. Andrew, 1 Ves. 1 V. & B. 359 ; and see Lee v. 59, per Lord Hardwicke ; Attorney- Young, 2 Y. & G. Ch. Ca. 532. General v. Glegg, Amb. 585, per [g) Ex parte Berkhampstead Free eundem ; Willis v. Childe, 13 Beav. School, 2 Y. & B. 138. 117 ; and see Be Wilkes's Charity 544 CONTROL OF THE COURT OVER POWERS. [CH. XDC. S. 3. exercise a sur- Teillance where the trustees are before it. After decree Trustee cannot exercise even a special power without the sanc- tion of the Court. discretion of the trustees, Lord Hardwicke said, " though he could not contradict the intent of the donor, which was to leave it in the discretion of the trustees, yet he would not dismiss the information, but would still keep a hand over them" (a). And generally where a suit has been instituted for the ad- ministration of the trust, and a decree has been made, that attracts the Court's jurisdiction, and the trustee cannot after- wards exercise the power without the concurrent sanction of the Court ; as if a trustee have a power of appointment of new trustees, he is not excluded from the right of nominating the person, but the Court must give its sanction to the choice (6). Butif a decree has not been made, then, as the plaintiff may dismiss his bill at any moment, the trustee must not assume that a decree will be made, but must proceed with the due execution of the trust (c). He cannot be advised, however, to act without first consulting the Court." It was held in one case, that the trustees had not exceeded their duty by appoint- ing new trustees after the filing of the bill, as no extra costs had been thereby occasioned {d) ; but in another case it was said that the trustees ought, under the difficulties in which they were placed, to have consulted the Court, and as instead of so doing, they had acted independently and made an appointment which, though they, entered into evidence, they could not justify, and great extra costs had arisen out of their conduct, the trustees were made to pay personally the extra costs which had been occasioned (e). (a) Attorney- Generaly. Governors (c) See Williams on Executors, of Harrow School, 2 Ves. 551. (6) Wehb V. Harl of Shaftesbury, 7 Ves. 480; v. Rolarts, 1 J. 6 "W. 251 ; Middleton y. Reay, 7 Hare, 106 ; Kennedy v. Turnhy, 6 Ir. Eq. Rep. 399. 891, 4th Ed°. {d) Cafe V. Bent, 3 Haie, 245. (e) Attorney -General v. Clack, 1 Beav. 467. CHAPTER XX. OF ALLOWANCES TO TRUSTEES, Now that we have discussed the duties of trustees, and the extent of their powers, we may next enter upon a subject very closely interwoven with the execution of the office, viz. : First, The allowances to trustees for their time and trouble ; and Secondly, The allowances to trustees for actual expenses. SECTION I. AILOWANCES FOR TIME AND TEOTTBIE. It is an established rule in general, that a trustee shall have General rule, no allowance for his trouble and loss of time ; one reason given is, that on these pretences, if admitted, the trust estate might be loaded, and rendered of little value, besides the great difficulty there would be in settling and adjusting the quantum of such allowance, especially as one man's time may be more valuable than that of another. And there can be no hardship in this respect upon the trustee, for it lies in his own option whether he will accept the trust or not (a). But the true gi'ound is, that if the trustee were allowed to perform the duties of the office, and to claim compensation for his services, his interest would be opposed to his duty; and, as a matter of prudence> the (a) Robinson v. Pett, 3 P. W. re Ormsby, 1 B. & B, 189, per Lord 251, per Lord Talbot ; Gould v. Manners ; Charity Corp. v. Sutton, Fleetwood, cited ib. note (A) ; Sow 2 Atk. 406, per Lord Hardwicke ; V. Godfrey, Kep. t. Finch, 361 ; BOnithon v. Hochmore, 1 Vern. Sroeksopp v. Barnes, 5 Mad. 90 ; 316, &o. Ayliffe v. Murray, 2 Atk. 58; In s s 546 ALLOWANCES FOB TROUBLE. [CH. XX. S. 1. Executors, mort- gagees, receivers, committees of lunatics. Trustees ofWest India Estates. Eate of commis- sion in Jamaica. possession of West India Court will not allow a trustee or executor to place himself in such a situation (a). And the rule applies not only to trustees in the strict and proper sense of the word, but to all who are virtuallyinvested with a fiduciary character, as executors and administrators (6), mort- gagees (c), receivers {d), committees of lunatics' estates (e), &c. But trustees for absentees of estates in the West Indies are allowed a commission for their personal care in the manage- ment and improvement of the property. However, if, instead of remaining upon the island, they commit the management to the hands of agents, the Court will reject the claim ; for it would be a strange construction that one allowed a commission on account of the proprietor's absence should insist upon his reward when he had been absent himself (/). But a manager, though he forfeits his commission during the period of his absence, will be repaid the sums actually disbursed by him for _the care of the estate by others, provided the payments he has made be in themselves reasonable and proper (^). The rate of commission in Jamaica has been regulated by several acts of Assembly : it was originally lOl. per cent, upon the receipts, then 8l. per cent., and since 6Z. per cent. [h). But the intention of the Legislature was only that the rate should not exceed 6Z, per cent., not that under particular circum- stances it might not be a great deal less {i). Mortgagees in possession of estates situate in Jamaica are by the act referred to expressly prohibited from charging any commission, except what they may have themselves paid by way of commission to a factor (k), and even irrespectively of (o) Kew V. Jones, Exch. Aug. 9, 1833, oited 9th Jarm. Free. 338, per Lord Lyndhurst ; and see Burton v. Woohey, 6 Mad. 368. (6) Scattergood v. Harrison, Mos. 128; How V. Godfrey, Eep. t. Pinch, 361 ; Sheriff Y. Axe, 4 Russ. 33. (c) BonithoH v. Hockmore, 1 Vern. 316; Langstaffe v. Fenwick, 10 Ves. 405 ; French v. Baron, 2 Atk. 120 ; Carew v. Johnston, 2 Sch. & Lef, 301 ; Arnold v. Garner, 2 Phil. 231 ; Mathison v. Clarhe, 3 Drewry, 3. (c?) In re Ormsby, 1 B. & B. 189. (e) Anon, case, 10 Ves, 103 ; Be Walker, 2 PhiU. 630; Me ^ brooke, ib. 631. (/) Chambers v. Goldwin, 5 834 ; 9 Ves. 254, see 273. (g) Forrest v. Elwes, 2 Mer. {h) Chambers v. Goldwin, 9 267. (j) See S. C. id. 257. [k) See S. C, 5 Ves. 837 ; 9 268. 68. Ves. Ves. CH. XX. S. 1.] ALLOWANCES FOR TEOUBLE. 547 statutory prohibition, mortgagees in possession of West Indian property are under the same disability of charging commission as if the property were situate in this country (a). An executor who has been appointed in the East Indies Executor in the and administers in that country, and then returns to England, ^°' "^ ^^^' will, if called upon in a court of equity to render an account, be allowed a commission of five per cent, upon the receipts or payments according to the practice of the Indian courts. The appointment of an executor in the East Indies is considered the appointment of an agent for the management of the estate. Without such an allowance, where a person died in India deprived of the presence of his relations, the effects of the testator might often not be collected at all. Besides, the executors in England could scarcely procure a person to under- take the office at any cheaper rate (6). If an Indian executor after collecting part of the assets comes over to this country he will be allowed a commission on those assets only that, were collected by himself in India, and not on the assets sub- sequently collected by his agents and transmitted to this country, for the courts here allow the commission because the Indian courts allow it, and the Indian courts allow it on the ground of residence in India (c). An executor in India will only be allowed the commission where he haa a where the testator himself has not left him a legacy for his ^jouWe trouble (tQ; but if the amount of the legacy be an inadequate compensation for the duties of the office, it seems the executor, so as he signify his resolution in proper time, may renounce [a] Leith v. Irvine, 1 M. & K. monies distributed or invested in 277. manner therein provided. (5) Chetham v. Lord Audley, 4 " By Act Wo. II. of 1850 the pro- Ves. 72 ; Matthews v. BagsTiaw, 14 visions of the ahove act, with certain Beav. 123. To the latter case is restrictions, are extended to the pre- appended the following note : — ■ sidencies of Madras and Bombay, but "The custom of allowing a commis- the rate of commission to the public sion to executors and administrators administrator is there to remain 6 per in the presidency of Bengal has been cent, until altered to 3 per cent, by abolished by Act No. TIL, of 1849, the governor and council in each of of the governor-general in council. these presidencies." By that act an administrator-general (e) Campbell -j. Campbell, 13 Sim. has been appointed in place of the 168 ; and see 2 Y. & C. Ch. Ca. 607. ecclesiastical registrar, with a re- {d) Freeman v. Fairlie, 3 Mer, duced commission of 3 per cent, on 24. N N 2 548 ALLOWAKCES FOR TEOUBLE. [CH. XX. S. 1. Constructive trustees. Brown v. Be Tastet. the intended legacy, and take advantage of the commis- sion (a). A person who has carried on a business with another man's money, and so is constructively a trustee, will, if compelled to account for the profits, be sometimes allowed a compensation for his skill and exertions in the management of the concern. Thus, Brown and De Tastet were partners, and Brown died, and De Tastet carried on the business with Brown's money. A bill was filed by Brown's representative against De Tastet for an account, and Lord Eldon said, " It could not be denied, that if the business was such that on the death of the party other persons were concerned in aiding it by the application of their skill, theii- services, and their property, a great deal would be included under the head of just allowances, which, tiU the Master had thoroughly investigated the case, the Court could not determine ; " and it was ordered, that upon the reference to the Master, De Tastet should be at liberty to submit any claims to just allowances for his management of the business, the Master to certify upon what grounds he made the allowances should the plaintiff require it, or upon what grounds he refused to make the allowances if required by the defendant (b). Brown ». Litton. To this principle must be referred the early case of Brown V. Litton, before Lord Harcourt (c). The captain of a ship, who had 800 dollars on board which he intended to invest in trade, died upon the voyage, and the mate, who succeeded to the command of the vessel, took the 800 dollars, and traded with them, and made great improvements. The executrix of the captain filed a bill for an account, and Lord Keeper Har- court said, " The defendant was like a trustee, and was clearly liable to account for the profits. It resembled the case of two joint traders, where one died, and the survivor carried on the business, when the survivor should account for the profits he made to the representative of the deceased partner." And the Court observed, that " this country being an island, all imagi- («) See id. 28. (J) Brown v. De Tastet, Jao. 284; and see Sir Samuel Romilly's argument in Crawshay v. Collins, 15 Yes. 225. (e) 1 P. W. 140; S. C. 10 Mod. 20. CH. XX. S. 1.] ALLOWANCES FOR TROUBLE. 549 nable encouragement ought to be given to trade; and it was a comfort to a man to know that if he should die on the passage, ihe improvement of his effects should be for the advantage of his family ; but that, to recompense the defendant for his care in trading with the money, the Master should settle a proper salary for the pains and trouble he had been at in the manage- ment thereof." But a person will not be allowed to charge any thing for Express trustee !• j.j?ii !■ 11T1 lias no allowauoe his management ot a trade or busmess, where he has been for management clothed in express terms with the character of a trustee or "^ ^ *™'^®- executor (a). A solicitor or attorney who sustains the character of trustee Solicitors and will not be permitted to charge for his time, trouble, or at- '' °™ ^ ' tendance, but only for his actual disbursements (&) ; nor can the charge be made by the firm of which the trustee is a partner (c). " The principle," observed Lord Lyndhurst, " ap- plies as strongly to the case of an attorney as to that of any other person. If ah attorney who is an executor performs business that is necessary to be transacted, he is not entitled to be repaid for those duties ; for it would be placing his interest at variance with the duties he has to discharge. It is said, the bill may be taxed, and this would be a sufficient check ; but I am of opinion that that would not be a sufficient check: the estate has a right not only to the protection of the taxing officer, but also to the vigilance and guardianship of the executor or trustee in addition to the check of the taxing officer. There may be cases where a trustee placed in the situation of a solicitor might, if he were allowed to perform the duties of a solicitor and to be paid for them, find it very often . proper to institute and carry on legal proceedings, which he would not do if he were to derive no emolument from them iiimself; and if he were to employ another person. If a trustee, (a) Stocken v. Dawson, 6 Beav. Sherwood, 3 Beav. 338 ; York v. .371 ; Burden v. Burden, 1 V. & B. Brown, 1 Coll. 260 ; Bainbrigge v. 170 ; Brocksopp ^.Barnes, 5 Mad. 90. Blair, 8 Beav. 588 ; Stanes v. Parker, ^66 Mar shall v. HoUoway, 2 Sw. 432. 9 Beav. 385 ; Broughton v. Brough- (6) New V. Jones, Exoheq. Aug. ton, 5 De Gex, Mao. & Gror. 160 ; 9, 1833, 9 Jarm. Preo. 338 ; Moore Todd v. Wilson, 9 Beav. 486 ; Gom~ V. Frowd, 3 M. & C. 46 ; Fraser v. ley v. Wood, 3 Jones & Lat. 678. Palmer, 4 T. & C. 515 ; Jn re (e) Collins v. Carey, 2 Beav. 128. 550 ALLOWANCES FOE TROUBLE. [CH. XX. S. 1. who is a solicitor, acts as a solicitor, he is not entitled to charge for his labour, but only for his costs out of pocket (a)." Cradooks. Piper. But a Solicitor in the country defending a suit in Chancery as executor through a town agent, will be allowed such proportion of the agent's bill in respect of the defence as such agent is, on his own account, entitled to receive (6). And in one case it was held that the rule so stringently enforced in the admiais- tration of a trust out of court, did not apply to the case of several co-trustees, who, not by any act of their own, but at the will of another, were made defendants to a suit, and that in such a case if one of the trustees was a solicitor, and acted for himself and his co-trustees, he ought to be allowed the full costs, unless it could be shown that they had been, to any ex- tent, increased through his own conduct (c). But this exception stands by itself, and is not likely to be followed ; and accordingly, ij where a solicitor, a single trustee, defended himself by his partner, the claim to professional profits was disallowed (d). If a cestui que trust settle accounts with a trustee, a soli- citor, and execute a general release, and the accounts contain items of charges for professional services, the cestui que trust, if he had no legal advice, and was not expressly informed that professional services might have been disallowed, may open the accounts as regards the objectionable items (e) ; but if the cestui que trust had independent legal assistance, he is bound by the release (/). The doctrine against professional charges by a trustee, a solicitor, is so rigidly applied, that where a security has been given for payment of such professional charges, it may be set aside, even as against a purchaser for a valuable consideration, if he had notice (g). The rule against allowances to trustees is merely a general one in the absence of express directions to the contrary ; for there is no objection, if the settlor himself choose to compen- SeUled accountl Purchaser. Allowance directed by tlie settlor. (a) JVew V. Jones, 9 Jarm.Pree.338. (6) Surge v. Brutton, 2 Hare, 373. (c) Cradock v. Piper, 1 Mao. & Gord. 664, 8. C. 1 HaU & T. 617. {d) Lyon v. Baker, 5 De G-ex & Sm. 622 ; and see Lincoln v. Windsor, 9 Hare, 158; Broughton v. Brough- ton, 5 De Gex, Mae. & Gor. 160; 2 Sm. c& Gif. 422. (e) Todd V. Wilson, 9 Beav. 486. (/) Stanes v. Parker, 9 'Bear. 385; JRe Wyche, 11 Beav. 209. [g) Gomley v. Wood, 3 Jones & Lat. 678. CH. XX. S. 1.] ALLOWANCES FOE TEOUBLE. 551 sate the trustee for his services, either by the gift of a sum in gross, or by the allowance of a salary (a). Thus, in Wehb v. The Earl of Shaftesbury (b), an estate was Webbn. Shaftea- devised to Arrowsmith and his heirs upon trust to set and ^^' manage, and out of the rents and profits to pay aU rates and taxes, charges of repairs, stewards', bailiffs', and gamekeepers' salaries, and all other expenses, and the commission thereafter mentioned, and subject thereunto upon certain trusts ; and the testator directed that the trustee should retain for his trouble a commission of 51. per cent, on the gross rental of the estates. The trustee claimed to be reimbursed all his expenses over and above his commission ; and Lord Eldon said, " he felt a strong iaclination to hold that this commission of 51. per cent., was the whole the trustee was to have, but the will did not say so, and upon the will he must give him the other allowances." And if a testator give an executor a salary for his trouble. Allowance does the allowance will not cease on the institution of a suit; for institution of a though the managemept be thenceforward under the direction ^"'*- of the Court, the executor is still called upon to assist the Court in the administration with his care and vigilance (c.) Where the settlor has directed a remuneration, but has not Amount of declared his mind as to the amownt, it will be referred to the expressed. Master to settle the quantwm meruit according to the circum- stances of the case (cQ. The trustee may also contract for an allowance with his Contract for an cestui que trust ; but bargains of this kind are very suspicious, the cestui que and are watched by the Court with an eye of extreme jealousy. '''™*' Two persons had been made executors and trustees, and Ayliffei;. one of them refused to act unless the cestui que trust would give them, besides their legacies, some consideration for their trouble. This the cestui que trust refused for some time to do, but at last consented to give lOOZ. to one, and 200L to the other. Lord Hardwicke said, " With regard to the question, whether upon general grounds a trustee may make an agree- ment with his cestui que trust for an extraordinary allowance {a) Rohinson v. Pett, 3 P. W. (c) Baher v. Martin, 8 Sim. 25. 250, per Sir J. Jekyll; Willis v. [d) Ellison v. Airey, 1 Ves. Ill, Kibble, 1 Beav. 559. see 115 ; and see Willis v. Kibble, 1 (6) 7 Ves. 480. Beav. 659. 653 ALLOWANCES FOE TROUBLE. [CH. XX. S. 1. over and above what he is allowed by the terms of the trust, I think there may be cases where the Court would establish such agreements; but at the same time would be extremely cautious and wary in doing it. In general the Court looks upon trusts as honorary, and a burden upon the honour and conscience of the person intrusted, and not undertaken upon mercenary views ; and there is a strong reason, too, against allowing any thing beyond the terms of the trust, because it gives an undue advantage to a trustee to distress a cestui que trust; and therefore this Court has always held a strict hand over trustees in this particular. If a trustee comes in a fair and open manner, and tells the cestui que trust that he will not act in such a troublesome and burdensome office unless the cestui que trust will give him a further compensation, and it is contracted for between them, I wiU not say this Court will set it aside, though there is no instance where they have confirmed such a bargain. I consider the present case in this light : — Two trustees are making an ill use of an authority they had under the will to extort a reward from the cestui que trust. If they had told him, ' Give us a further reward, or we will renounce,' they had acted fairly, and something might be said in favour of the contract ; but the personal estate was vested in them before probate, and could not be got out of them without an actual renunciation. The real estate was likewise vested in them, and could not be taken out of them but by an actual assignment ; and, sensible of these difficulties upon the cestui que trust, the trustees and executors, in order to force him into their terms, would not act. Consider the ill conse- quences of such a case. Suppose it should be necessary that a will should be immediately proved, as in the case of a widow and children ; shaU. a trustee, in whom the testator re- posed a trust and confidence, and depended upon his honour and kindness, insist upon such hard terms as to have an unreasonable reward before he will either prove the will or act in the trust ? " And the trustees were refused the advan- tage of their bargain (a). Moore v. Frowd. Where a trust was created by deed, and it was doubtful whether, as the instrument directed the payment of " all costs, (o) Ayliffe V. Murray, 2 Atk. 58. CH. XX. S. 1.] ALLOWANCES FOR TEOUBLE. 555 Charges, and expenses which the trustees might sustain, expend, or be put unto, the same to be reckoned as between attorney and client," the trustees, who were soKcitors, had not stipulated for the allowance of their professional charges, besides their expenses out of pocket, Lord Cottenham said, " The parties may by contract make a rule for themselves, and agree that a trustee, being a soHcitor, shall have some benefit beyond that which, without such contract, the law would have allowed ; but in such a case the agreement must be distinct, and in its terms explain to the client the effect of the arrange- ment, and the more particularly when the solicitor for the client, becomiag himself a trustee, has no interest personal to himself adverse to that of the chent. It is not easy to conceive how, consistently with the established rules respecting contracts between solicitors and their clients, a solicitor could maintain such a contract made with his cHent for his own benefit, the client having no other professional adviser, and in the absence of all evidence, and of any probability that he was aware of his rights, or of the rule of law, or of the effect of the contract (a)." And his Lordship disallowed the claim. Even where the contract is not void ab initio, the conditions Terms of the of it must be fulfilled to the letter, or the trustee is not entitled fuieued to the to his reward. An executor, who had no legacy, and where ^^**®'^- the execution of the trust was likely to be attended with trouble, agreed with the residuary legatees, in consideration of 100 guineas, to act in the executorship. He died before the execution of the trust was completed, and his executors brought a bill to be allowed those 100 guineas out of the trust money in their hands ; but the Court said aU bargains of this kind ought to be discouraged, as tending to eat up the trust, and here the executor had died before he had finished the affairs of the trust ; and so the plaintiff's demand was disallowed (&). A trustee dealiag, not with the eestm que trust, but with the Contract for an Court, is of course at liberty, before accepting the trust, to the court, stipulate for a reasonable remuneration (c). (a) Moore v. Frowd, 3 M. & C. (c) Brochsopp v. Barnes, 5 Mad. 46, see 48. 90, per Sir J. Leacli; see Morison (6) Oould V. Fleetwood, cited v. Morison, 4 M. & C. 215.- Bobinson v. Bett, 3 P. W. 251, note (A). 554 ALLOWANCES FOR TROUBLE. [CH. XX. S. 1. Marshall v. HoUoway. Baintrigge v. Blair. In Marshall v. HoUoway {a). Croft, one of three trustees, had declined to prove the will or enter upon the trusteeship, but had executed no disclaimer of the estate, and, as the person best acquainted with the testator's affairs, had been employed by his co-trustees in the capacity of agent. The co-trustees filed a bill for the administration of the trust, and prayed, inter alia, that, in case the Court should be of opinion that Croft ought to be discharged from the trust, then he might convey the trust estates, and be allowed a compensation for his time and trouble in the management of the testator's affiairs. Lord Eldon decreed, that, " it being alleged by the co-trustees that the nature and circumstances of the testator's estate required the application of a great proportion of time, and that they could not undertake to continue in the trust without the aid and assistance of Croft, who was better acquainted there- with than any other person, and that it would be for the benefit of the estate that Croft should continue a trustee, and it being alleged by Croft that due attention to the affairs of the testator would require so much of his time and attention as would be greatly prejudicial to his other pursuits, and therefore he would not have undertaken to act therein, but under the assurance. that an application would be made to the Court to authorise the allowance of a reasonable compensation for his labour and time, and that he could not continue to a,ct therein without such reasonable allowance being made to him, it should therefore be referred to the Master, to settle a reason- able allowance to be made to Croft for his time, pains, and trouble for the time past ; and if the Master should be of opinion that Croft should be continued a trustee, then to settle a reasonable allowance to be made to Croft for his services in the time to come." But if a trustee omit to contract with the Court before entering upon his duties, he will have great difi&culty in ob- taining compensation afterwards, and we may add that in no case will the Court remunerate a trustee for his trouble by permitting him to make professional charges where the settlor has not so directed, but will compensate him for his trouble if at all by a regular and fixed salary (6). Lord Langdale com- (a) 2 Sw. 432. (6) Bainhrigye v. Blair, 8 Beav. 588. CH. XX. S. 1.] ALLOWANCES FOE TROUBLE. 555 menting upon Marshall v. Holloway, observed, the trustee and solicitor in that case was not allowed to charge his bill of costs, or to charge for each particular item of business done, but an enquiry was directed whether it would be proper, under the peculiar circumstances, to give him some remuneration or compensation for his loss of time and trouble. I may there- fore safely say that this Court would not, even in a case when it thought a deviation from the general rule advisable and proper, make that deviation by allowing a gentleman acting as solicitor for himself as trustee to make the usual profes- sional charges against the trust fund. To do so would be to place a party having a duty conflicting with his interest in the position of having to make out his own biU against himself, leaving any error which might occur to be settled and set right at some future occasion. Assuming that all that was done here was highly beneficial, and that a great benefit was acquired to the estate by the exertion of the trustee, was he not bound to do his utmost for the benefit of his trust ? In every case a trustee might say I have had a great deal of trouble in these matters, and have spent a considerable portion of my time and trouble. Is that the rule ? I am not aware of the existence of any such rule, nor has any authority been produced which tends in the least to show that this is the way in which trustees who have strictly performed their duty, and thereby procured a benefit to the estate, are to be dealt with. It is very different from the case where a trust being in the course of execution, and many things remaining to be done which can be done beneficially only by a particular trustee, who cannot from his situation do it without grievous personal loss, and that party comes to the Court and states that he is in a situation and is willing to do these things, but that he cannot consistently with his own interest proceed with such duties, and gratuitously devote his time for the benefit of the trust. In such a case it is competent for the Court, con- sidering what is beneficial to the cestui que trust, and is calcu- lated to promote their interest, to take the matter into considera- tion, and to give proper remuneration to that person who alone by his own exertion can produce that benefit (a). (a) Bainhrigge v. Blair, 8 Beav. 595, 596. 556 ALLOWANCES FOR TROUBLE. [CH. XX. S. 1. Employment of Collector of rents. Bailiff. Attorney. Accountant. During the continuance of the usury laws a mortgagee could not, as a general rule, have bargained for a compensation exceeding, together with the actual interest, the legal rate, for an agreement of this kind would have tended to usury (a). But after a long struggle certain special exceptions were established in favour of mortgagees {not in ^possession) of West Indian estates (&). As a trustee will not be permitted to charge for his personal care and loss of time, it is but just he should be allowed on proper occasions to call in the assistance of agents at the expense of the estate. Thus a trustee or a mortgagee may, if the case require it, appoint a collector of rents (c). And as a man is not bound to be his own bailiff, if a trustee or mortgagee employ a skilful person in that capacity, the salary must be allowed (cZ) ; at least the Court will grant that indulgence where the estate is at such a distan.ce from the mortgagee's residence, that he must have appointed a baihff, had the estate been his own (e). An executor employed a person who had been his clerk to transact some business for him relative to the testator's affairs, and the Master insisted it was the executor's own duty, and refused to allow the expense. But Lord Hardwicke said, " he was clear, that if an executor paid an attorney for his trouble and attendance in the management of the estate, he ought to be repaid the sums he had so disbursed," and ordered a reference to the Master to tax the items of the biU(/). If the accounts be complicated, and the executor or trustee take upon himself to adjust and settle them, although it may occupy a great deal of his time and attention, the principle of equity is that he cannot claim a compensation; but if he choose to save his own trouble by the employment of an [a) See Chambers v. Goldwin, 9 Yes. 271. (J) See the Idstory of the struggle detailed in Lord Brougham's judg- ment in Leith v. Irvine, 2 M. & K. 277. (c) JDavis V. Bendy, 3 Mad. 170 ; Stewart v. Soare, 2 B. C. C. 663 ; and see Wilkinson v. Wilkinson, 2 S. & S. 237; Be Westhroohe, 2 Phill. 631. {d) JBonithon v. Hockmore, 1 Tern. 316 ; Chamhers v. Ooldwin, 9 Ves. 272, per Lord Eldon. (e) Godfrey v. Watson, 3 Atk. 518, per Lord Hardwicke. (/) Macnamara y. Jones, 2 Dick. 587. CH. XX. S. 2.] EXPENSES OF TEUSTEES. 557 accountant, lie is entitled to charge the trust estate 'with it under the head of expenses {a). The executor of a trader had employed an agent to collect Weiss v. Dill, debts at a commission of 5 per cent. The Master had reduced the commission to 2^ per cent. ; and, the executor upon that ground taking an exception to the report, Sir J. Leach said, " Executors, generally speaking, are not allowed to employ an agent to perform those duties which by accepting the of&ce of executors they have taken upon themselves ; but there may be very special circumstances in which it may be thought fit to allow them the expenses they have incurred in the employ- ment of agents : I have some doubt whether in this case the Master ought to have made any allowance, but with the allow- ance of 2i per cent, the executor must be content (&)." SECTION II. ALLOWANCES 10 TEtTSTEES EOE EXPENSES. Though a trustee is allowed nothing for his trouble, he is General rule, allowed every thing for his expenses out of pocket {c). "It flows," said Lord Eldon, " from the nature of the office, whether expressed in the instrument or not, that the trust property shall reimburse him all the charges and expenses incurred in the execution of the trust (d)." Thus a trustee will be entitled to be reimbursed his travel- Travelling ling expenses (e), unless they be improperly incurred (/). expenses. (a) 2few V. Jones, Exeh., Aug. (ra, p. 593. (c) See p. 537, note 1. [g) Hussey v. Grills, Amb." 300, {d) Wagstaff v. Wagstaff, 2 P. per Lord Hardwioke. W. 259, per Lord Macclesfield; 616 DEVISE OF A TBUST. [CH. xxin. s. 2. Where no custom to devise the legal estate of copyholds. Of customary freeholds. ' the trust of a copyhold was devisable in the same manner (a). " Where," said Lord Hardwicke, " the legal estate is in trustees, the cestui que trust cannot, consequently, surrender, but the lands shall notwithstanding pass by this devise according to the general rule that equity follows the law ; for there {i. e. at law) a copyhold will pass under the will without three witnesses, or, where there are no witnesses at all ; and if this nicety is not required in passing the legal estate, a fortiori, it is not in passing the equitable, and therefore the cestui que trust may by the same kind of iustrument dispose of the trust estate as if he had the legal estate in them " {b). And the equitable interest might always have been passed by will, though not preceded by a surrender, which was required to pass the legal estate (c). But, by 55 Geo. 3, c. 192, a surrender was dispensed with even in respect of the legal estate. As equitable interests in copyholds were regulated by analogy to the custom affecting the legal estate, one might have supposed, that where the legal estate could not have been devised, the equitable estate in like manner must have been left to descend. However, it was decided by the Courts that notwithstanding the want of the custojn, the owner of the equitable estate could always have passed it by will(d). Whether the will to have this effect must have been executed according to the Statute of Frauds, or whether any instrument sufficient for declaring the uses on a surrender would have been enough does not appear. The doctrines laid down as to copyholds were not extended to customary freeholds (1). The determination as Copyholds and customary free- holds distin- guished. (a) Appleyard v. Wood, Sel. Ch. Ca. 42 ; Wagstaff t. Wagstaff, 2 P. "W. 258 ; Tuffnell v. Page, 2 Atk. 37 ; and see Attorney- General v. Andrews, 1 Ves. 225 ; but see Anon, case, cited Wagstaff y. Wagstaff, 2 P. W. 261. (b) Tuffnell v. Page, 2 Atk. 38. (c) Greenhill\. Greenhill, 2 Yern. 679 ; Tuffnell v. Page, 2 Atk. 37 ; Gibson v. Sogers, Aiab. 93. (d) Lewis v. Lane, 2 M. & K. 449 ; Wilson v. Dent, 3 Sim 385 ; and see ante, pp. 45, 46, and p. 537, note 1. (1) A copyhold is where the freehold ia in the lord, and the copyholder's estate passes by surrender. A customary freehold is where the tenure is copyhold, but the freehold interest is in the tenant, and passes by deed. Binghatn v. Woodgate, 1 E. & M. 32 ; ;S'. C. Taml. 183. * CH. XXIII. S. 8.] SEISIN OF A TRUST. *517 to copyholds was grounded on the circumstance that the interest passed, not by the will, but by the surrender; but customary freeholds are strictly and properly speaking de- visable, the estate passing by the will. The legal estate of customary freeholds was, therefore, not excepted from the Statute of Frauds (a) ; and, of course, a devise of the equitable interest must have been attended with the same formalities as if it had been a devise of the legal (b). Now, by the late Wills Act (c), as to wills made on or after Late wais Act. the 1st day of January, 1838, every devise or bequest of property, of whatever description, whether real or personal, freehold or copyhold, legal or equitable, must be made by a will in writing, signed by the testator and attested by two witnesses. SECTION III. OF SEISIN AND BISSEISIN. The term seisin is properly applicable to legal estates ; but Equitable seisin. a court of equity regards actual receipt of the rents and profits under the equitable title as equivalent to seisin at law, and has often adjudicated upon the rights of parties with reference to that circumstance. Thus, in Casborne v. Scarf e {d), it was disputed, whether, Casbome v. as curtesy did not attach at law without a seisin in fact, the ^°**- husband could claim his curtesy out of the wife's equity of redemption ; but Lord Hardwicke said, " It is objected there is no seisin whatever of the legal estate in the wife in the con- sideration of law. But that is not the present question : the true question is, if there was such a seisin or possession of the equitable estate in the wife, as in this Court is considered equivalent to an actual seisin of a freehold estate at common law; and I am of opinion there was. Actual possession, clothed with the receipt of the rents and profits, is the highest instance (a) JTusseij V. Grills, Amh. 299 ; (c) 7 Gul. 4 & 1 Yio. o. 26. and see Doe v. Danvers, 7 East, 299. [d) 1 Atk. 603 ; Parker v. Carter, (i) Hussey v. Grills, ubi supra ; 4 Hare, 413. Wittan V. Lancaster, 3 Russ. 108. 618 SEISIN OF A TRUST. [CII. XXIII. S. 8. Marquis of Cholmondeley v. Lord Clinton. of an equitable seisin, both of which there were in this case." Possessiofratris. And SO it was held that there was possessio fratris of a trust, in other words, that if a person inherited a trust and died before actual seisin of the estate, it should descend to the brother of the half blood, as heir to the father, in preference to the sister of the whole blood ; but if there had been such a receipt of the rents and profits as constituted equitable seisin, the sister of the whole blood, as heir to the brother, would exclude the brother of the half blood (a). The doctrines of the Court upon the subject of equitable disseisin cannot be better illustrated than by a statement of the well-known case of The Marquis of Cholmondeley v. Lord Clinton {b). The circumstances were briefly as follows : — George, Earl of Orford, conveyed certain manors and here- ditaments to the use of himself for life, remainder to the heirs of his body, remainder as he should by deed or will appoint, remainder to the right heirs of Samuel Eolle, with a power reserved of revocation and new appointment. Some time after the Earl executed a mortgage in fee, which operated in equity as a revocation of the settlement pro tanto. In 1791 the Earl died without issue and intestate, and upon his death the ultimate remainder (which had been a vested interest in the Earl himself, as the heir of Samuel Eolle at the date of the deed,) should have descended to the right heir of the Earl, but, the parties mistaking the law, the person who was heir of Samuel Eolle at the death of the Earl was allowed to enter on the premises, and continued in possession, subject to the mortgage, up to the commencement of the suit. The bUl was filed in 1812, by the assign of the right heir of the Earl against the mortgagee, and the assign of the right heir of Samuel Eolle, for redemption of the premises, and on account of the profits. It was debated whether, as the legal estate was vested in the mortgagee, and the heir of Samuel Eolle had held the possession subject to a subsisting mortgage, the assign of the Earl of Orford's heir, to whom the equity of redemption (a) But aee now 3 & 4 Gul. 4, c. 106. (J) 2 Mer. 171 ; 2 J. & W. 1. CH. XXin. S. 3.] SEISIN OF A TRUST. 619 belonged in point of right, had been disseised of his equitable interest, and was now barred by the effect of time. Sir W. Grant argued, that " although there might be what was deemed a seisin of an equitable estate, there could be no disseisin, first, because the disseisin must be of the entire estate, and not of a limited and partial interest in it — the equitable ownership could not possibly be the subject of disseisin ; and, secondly, because a tortious act could never be the foundation of an equitable title : that an equitable title might undoubtedly be barred by length of time, but could not be shifted or trans- ferred (a). It was admitted in the present case the equity of redemption subsisted ; it must therefore belong to some oAe and could only belong to the original cestui que trust {b). That so long as the trust subsisted, so long it was impossible that the cestuis qne trust could be barred. The cestuis que trust could only be barred by barring and excluding the estate of the trustee " (c). Sir W. Grant did not then decide the point, but directed a case for the opinion of the Queen's Bench on a question of law, and retained the bill till the judge's certificate should be returned. The cause was afterwards reheard on the equity reserved Heheard. before Sir T. Plumer, who determined that the original cestui que trust had been disseised, and was consequently barred {d). " The grounds," he said, " upon which it is contended that the holder of the rightful equity is not bound by laches and non- claim are, that the tortious possessor does not claim to be the owner of more than the equitable estate — 'the legal estate remains unbarred : that there is no disseisin abatement or intrusion of a trust — the possessor is only tenant at will, and may be dispossessed at any time by the trustee of the legal estate — he has therefore only a precarious and permissive possession : that tortious possession can never be the founda- tion of an equitable title " (e). But this reasoning proceeds on a mistaken view of the manner in which, and the grounds upon which, the bar from length of time operates. The question respects the plaintiff's right to the remedy, not the defendant's (o) See Sopkins v. Hopkins, 1 (c) 2 Mer. 361. Atk. 590. , (d) 2 J. & W. 1. (5) 2 Mer. 357—339. (e) lb. 153. 6:20 SEISIN OF A TRUST. [cH. xxin. s. 3. title to the estate. A tortious act can never be the foundation of a legal any more than of an equitable title. The question is, whether the plaintiff has prosecuted his title in due time. The quiet and repose of the kingdom, the mischief arising from stale demands, the laches and neglect of the rightful owner, and all the other principles of public policy, take away the remedy, notwithstanding the title veri domini, and the tortious holding of the possessor (a). As to the argument that a title in a Court of equity may be lost by laches, but cannot be trans- ferred without the act of the party, the case is the same in this respect both in equity and law. The title is changed in both by the operation of a public law upon public principles without regard to the original private right. If the negligent owner has for ever forfeited by his laches his right to any remedy to recover, he has in effect lost his title for ever. What, then, is to become of the title, whether legal or equitable ? Is it to become hcereditas jacens, belonging to no one ? Is it to devolve on the crown, or to pass by escheat ? The plaintiff is barred of his remedy : the defendant keeps possession without the possibility of being ever disturbed by any one : the loss of the former owner is necessarily his gain ; it is more — ^he gains a positive title under the statute at law, and, by analogy, in equity (6). If the mere existence of an old legal estate would have the effect of preventing the bar attaching upon the equitable estate, all the principles that have been established respecting equitable estates and titles would be overturned. According to this reasoning, whenever the legal estate is out- standing, in an old term, for instance, to attend the inherit- ance, the earliest equitable title must in all cases prevail : quiet enjoyment for sixty, one hundred, or two hundred years or more, would be no security, if the old term had existed longer: it would always be open to inquiry in whom was vested the equitable title which originally existed when the old term was created (c)." Appeal to the ^^ appeal to the House of Lords his Honour's decision was House of Lords affirmed, and the principle on which it proceeded was approved. (o) 2 J. & W. 153. (c) lb. 157. (5) lb. 165, 156. CH. XXni. S. 4.] DOWEB AND CUETESY OF A TEUST. 631 Lord Eldon said, " The connection between the legal estate in the term and the equities of the persons entitled to the inherit- ance was by no means indissoluble;" and he instanced the case of a second mortgagee, without notice of the incumbrance of the first, getting in an outstanding term by which he shifted to himself the equity that was previously in the first. " He could not agree, and had never heard of such a rule as that adverse jjossession, however long, would not avail against an equitable estate : his opinion was, that adverse possession of an equity of redemption for twenty years was a bar to another person claiming the same equity of redemption, and worked the same effect as abatement or intrusion with respect to legal estates, and that for the quiet and peace of titles and the 'world ■ it ought to have the same effect " (a). SECTION IV. OF DOWEE AKD CTJETEST. A TBUST (fe), or equity of redemption (c), of freeholds, was until Dower and the late act (cQ exempt from the lien of dower, but was and still trust ^ ° * remains subject to the curtesy of the husband (e), unless the husband be an alien (/). An equitable interest in copyholds (as the late act does hot Freebench. apply to them {g) ) is not subject to freebench (h). In Banks v. S^itton (i), a case of doiver, Sir J. Jekj^ll took a Banks v. Sutton. (a) 2 J. & W. 190, 191. (e) CJiaplm v. Chaplin, 3 P. W. (6) Colt V, Colt, 1 Ch. Re. 254; 234, per Lord Talbot; Attorney- BoUomley v. Lord Fairfax, Pr. CL. General v. Seoit, Rep. t. Talb. 139, 336; Attorney- General v. Scott, per eundem ; Watts y. Ball, 1 P. Eep. t. Talb. 138 ; Chaplin v. Chap- W. 108 ; Sweetapple v. Bindon, 2 lin, '3 P. W. 229 ; Shepherd v. Shep- Vern. 536 ; Cunningham v. Moody, herd. Id. 234, note (D) ; Curtis y- 1 Ves. 174; Cashorne v. Scarf e, 1 Curtis, 2 B. C. C. 630, per Lord Atk. 603 ; Bodson v. Hay, 3 B. C. Alvanley ; Lady Badnor v. Bother- C. 405. • ham, Pr. Ch. 65, per Lord Somers; (/) See Bumoncel v. Bumoncel, Godwin V. Winsmore, 2 Atk. 525. 13 Ir. Eq. Eep. 92. (c) Dixon V. Saville, 1 B. C. C. (ff) Smith v. Adams, 5 De Gex, 326; Beynolds v. Messing, cited Cas- Mao. & Gror. 712. borne v. Scarfe, 1 Atk. 604 ; 2 J. & (h) Forder v. Wade, 4 B. C. C. W. 194. 521. (d) 3 & 4 "W. 4, c. 103. (i) 2 P. W. 700. 622 DOWEK AND CURTESY OF A TRUST. [CH. XXID. S. 4. distinction between trusts created by tbe husband himself, and trusts originating from a stranger — that in the former case the wife should not be dowable, for it might reasonably be supposed the husband had intended to bar her dower, but in the latter case there was no ground for such a presumption, and there- fore the title to dower should attach. His Honour, however, did not rest his decision upon this distinction {a), and in sub- sequent cases the refinement has been rejected (6). What seisin _ With respcct to curtesy, as at law the wife, to entitle her curtesy. husband to curtesy, must have had seisin in deed of the free- hold, the question arises whether in the instance of a trust there must not have been such a seisin of the equitable estate in the wife, as is considered equivalent to legal seisin, as actual possession of the estate clothed with the receipt of the rents and profits. It seems to be admitted that if the equitable interest be in the possession of a stranger, adversely to the right of the wife, there is no such seisin in deed as to entitle the husband to his curtesy (c). But if money be articled or directed by will to be laid out in a purchase of land to be settled on a married woman in fee or in taU, the husband is entitled to curtesy, though no rent or interest may have been actually paid during the coverture {d). This proceeds on the principle that the laches of the trustees shall not prejudice the right of a third person, and, therefore, the claim to curtesy arises in the same manner as if the trustees had actually laid out the money on land and completed the settlement, and put the parties in possession. Parker v. Carter. However, it has been lately held, that in the case of an ordinary trust any seisin of the wife, though she has not pos- session or receipt of rents, is sufficient to entitle the husband to curtesy. An estate had been vested in trustees upon trust for Carter, during the joint lives of himself and Mary his wife, and upon the death of either of them, and in default of appointment upon trust for the children in fee. There were (a) 2 p. "W. 715. (c) Parker v. Carter, 4 Hare, (6) See Curtis v. Curtis, 2 B. 413. C. 0. 630 ; D'Arcy v. Blahe, 2 Soh. [d) SweetappleY. Bindon, 2 Vem. & Lef. 391 ; Godwin v. Winsinore, 536 ; Dodson v. Say, 3 B. C. C. 2 Atk. 526; Burgess v. Wheate, 405. 1 Ed. 197. CH. XXni. S. 4.] DOWEE AND CDETESY OF A TEUST. 633 two children, a son and a daughter Elizabeth, and the daughter married Parker; Carter died in 1817, and on his decease the widow, although she had no life estate, held possession of the estate until her own death in 1839. Elizaheth Parker died in 1836, and the question was, whether Parker the husband was tenant by the curtesy, although his wife had never been in receipt of rents. The Vice-Chancellor ruled, that the posses- sion of Carter was the possession of his trustee, and gave to that trustee a seisin of the inheritance; that the death of Carter did not interrupt that seisin, but the trustee was still in actual possession, not by a new title then for the first time accruing, but by continuance of the seisin acquired during the coverture ; that the trustee was in such possession for the benefit of the party lawfully entitled thereto, and that he con- tinued in such possession until the entry of Mary, which might be supposed to be a month or more after the death of her husband, and that such interval, there being no adverse pos- session, would entitle the husband to his curtesy (a). If the trust be for the separate use of the wife, so that Curtesy wHere her seisin would not entitle her husband to the possession or use. profits, it was formerly doubted whether in this case curtesy was not excluded. Lord Hardwicke was originally in favour of the curtesy (6); but in a subsequent case (without any allusion, however, to his former opinion,) he decided against the claim of the husband (c). It has since been determined that the husband is entitled {d). It was observed by Sir John Leach that "At law the hus- Opinion of Sir band could not be excluded from the enjoyment of property given to or settled upon the wife, but in equity he might, and that not only partially, as by a direction to pay the rents and profits to the separate use of the wife during coverture, but wholly by a direction that upon the death of the wife, the inheritance should descend to the heir of the wife, and that the husband should not be entitled to be tenant by the curtesy "(e); but (a) Parker v. Carter, 4 Hare, 400; 715, 716 ; and see Bennet v. Davis, see Cashorne v. Scarfe, 1 Atk. 2 P. W. 316. 606. {d) Morgan v. Morgan, 5 Mad. (5) Soherts v. Bixwell, 1 Atk. 408 ; Follett v. Tyrer, 14 Sim. 125. 609. (e) Morgan v. Morgan, 5 Madd. (c) Hearle v. Greenhanh, 3 Atk. 411. 624 DOWER AND CURTESY OF A TRUST. [CH. XXUI. S. 4. Distinction between dower and curtesy. this doctrine may admit of question, as there appears no reason why a person should be able to exempt an equitable any more than a legal estate from the ordinary incidents of property. A declaration, for instance, by a settlor, that a trust should be inalienable or not available to creditors would be absolutely void. In the case of Bennet v. Davis (a), which is cited by Sir J. Leach for his position, the question discussed was not whether curtesy attached on an equitable estate but whether any equitable estate arose. A testator had devised lands " to his daughter, the wife of Bennet, for her separate use, exclusive of her husband, to hold the same to her and her heirs, and that her husband should not be tenant by the curtesy, nor have the lands for his life in case he survived, but that they should upon the wife's death go to her heirs." It was contended that the wife could not be a trustee for herself, and the husband could not be a trustee for the wife, they both being but one person, and, therefore, as there was no trustee the husband was entitled to the estate beneficially. But the Court held clearly that the husband was a trustee for the wife, and observed, " though the husband might be tenant by the curtesy (viz., of the legal estate), yet he should be but a trustee for the /leirs of the wife." The remark certainly implies that on the death of the wife the husband would not be tenant by the curtesy of the equitable estate, but that question had not been adverted to at the bar, and apparently, from the context, was not under the con- sideration of the Court. Even assuming the remark to have been made advisedly, the view of the Court may have been that the curtesy of the husband was excluded on a ground now overruled, viz., that the trust being not simply for the wife and her heirs but during the coverture for the separate use of the wife, and after her death for her heirs, there was not a sufficient seisin as regarded the husband for the curtesy to attach upon (6). It must be acknowledged on all hands, that, as dower and curtesy stand exactly on the same footing upon principle, either the rejection of dower, or the admission of curtesy, was (a) 2 P. "W. 316. Atk. 715, 716 ; Morgan v. Morgan, (i) See Hearle v. Greenbank, 3 5 Mad. 408. CH. XXm. S. 4.] DOWEE AND CURTESY OF A TRUST. 623 an anomaly. Some high authorities, as Lord Talbot (a), Sir T. Clarke (6), and Lord Loughborough (c), regarded curtesy as the exception ; and the ground upon which they proceeded was that as trusts followed the likeness of the use, and there was no curtesy of the use, there could be none of the trust. On the other hand. Sir J. Jekyll(cZ), Lord Hardwicke (e), Lord Cowper(/), Lord Mansfield (gr), Lord Henley (/i), and Lord Eedesdale (t), thought that consistency would be restored by the admission of the title to dower; for, since the Statute of Frauds, they argued the system of trusts had undergone con- siderable alteration, and was conducted at present upon a much more liberal footing : the rule now was, that, as between the cestui que trust and the trustee and all claiming by or under them, whoever would have a right against the legal estate had a like right against the equitable. Thus either argument had a fair show of reason to support it; but the latter view was, no doubt, more in harmony with the system of trusts as at present established. "Why the Courts should have been induced to leave dower an Hoir curtesy . , .. . , , came to be al- exception, has been accounted tor, not more mgemously, than lowed and not satisfactorily, by Lord Eedesdale: — "The Courts of equity," '^'"'^'■ he said, "had assumed as a principle in acting upon trusts to follow the laiv ; and, according to this principle, they ought in all cases where rights attached on legal estates to have attached the same rights upon trusts, and consequently to have given dower of an equitable estate. It was found, however, that in cases of dower, this principle, if pursued to the utmost, would affect the titles to a large proportion of the estates in the country; for that parties had been acting on the footing of dower upon a contrary principle — that by the creation of a trust the right of dower would be prevented from attaching. (a) Chaplin v. Chaplin, 3 P. W. (e) Caaburne v. Cashurne, 2 J. & 234; Attorney- General v. Scott, "W. 200. Rep. t. Talb. 139. (/) Watts v. Ball, 1 P. W. 109. (J) Burgess v. Wheate, \ Ed, 196 \g) Burgess v. Wheate, 1 Ed. —198. 224. {c) Dixon v. Saville, 1 B. C. C. {h) lb. 249— 251. 327. \i) S'Arcy v. Blake, 2 Sch. & {d) Banks v. Sutton, 2 P. W. Lef. 388. 713, 714. t a 626 DOWEE AND CUETESY OP A TEUST. [CH. XXHI. S. 4. Many persons had purchased under this idea ; and the country would have been thrown into the utmost confusion, if Courts of equity had followed their general rule with respect to trusts in cases of dower. But the same objection did not apply to tenancy by the curtesy ; for no person would purchase an estate subject to tenancy by the curtesy without the concurrence of the person in whom that right was vested. Pending the cover- ture, a woman could not aliene without her husband, and therefore . nothing she could do would be understood by a purchaser to affect his interest. But when the husband was seised or entitled in his own right, he had full power of dis- posing, except so far as dower miglit attach ; and the general opinion having long been that dower was a mere legal right, and that, as the existence of a trust estate previously created prevented the right of dower from attaching at law, it would also prevent the property from all claim of dower in equity, and many titles depending on this opinion, it was found that it would be mischievous, in this instance, to act on the general principle " (a). I/ate Dower Act. Now, by a late Act (&), the widow is entitled to dower in equity where the husband shall die beneficially entitled to any interest (not conferring "a title to dower at law) which, whether wholly equitable, or partly legal and partly equitable, shall be an estate of inheritance in possession, or equal to an estate of inheritance in possession, other than an estate in joint tenancy (c). But in either case the wife will not be entitled to dower out of any property absolutely disposed of by the husband in his lifetime or by v/Ul(d). And by the Act a widow is not entitled to dower out of any land, when in the deed of conveyance thereof to her husband, or in any deed executed by him, it shall be declared that his widow shall not be entitled to dower (e) ; and the widow's right of dower will also be barred by the husband's declaration of in- tention contained in his will(/). The Act does not extend to (a) D'Arcy t. Blake, 2 Sch. & j-ates prospectively only, and does Lef. 388. not apply to a, declaration against (b) 3 & 4 W. 4. c, 105. dower contained in a conveyance (c) Sect. 2 ; and see Smith v. executed previously to the Act, See Spencer, 2 Jur. N. S. 778. jvbSZe v. Fnj, 20 Beav. 598, and sect. (d) Sect.' 4. 14 of Act. (e) Sect. 6. This enactment ope- (/) Sect. 7. CH. XXm. S. 5.] FEME COVERT CESTUI QUE TEUST. 627 the dower of any widow married on or before the 1st day of January, 1834, and does not affect copyholds (a). SECTION V. OF THE ESTATE OP A FEME COTEET CESTUT fttTE TKITST. Under the above title we shall first advert shortly to the effect of marriage upon property, held upon trust for a feme covert simply, and not for her separate use ; treating, in order, of pure personalty, chattels real, and real estate of freehold or inheritance ; and we shall then proceed to consider the nature of the wife's separate estate. 1. As respects pure personal estate, such as chattels personal, Pure personal money, legacies, and choses in action not settled to the wife's settled to separate use, the husband's power depends in cases of trust separate use. just as in cases where the title of the wife is legal, upon the fact of reduction into possession (h). If the wife's equitable interest be possessory, and the trustee be willing to facilitate the reduction into possession by payment, transfer, &c., to the husband, the feme's rights are at an end. Nothing, however, short of an actual reduction into possession will suffice ; and in the absence of reduction by the husband during his life, the equitable interest goes to the wife by survivorship. It follows from what has been stated, that where the wife's interest remains reversionary until after the husband's death, and the wife survives, she necessarily takes by survivorship (c). And a similar principle applies, where the interest of the wife may be viewed as partly possessory and partly reversionary, — as where the wife is entitled during her own life ; in which case, the husband cannot bind the interest of the wife beyond the duration of the coverture (d). So, even if the husband assign the wife's reversionary interest, and it subsequently, during the husband's lifetime, become possessory, the wife's right by sur- (fl) Powdrell v. Jo7ies, 2 Sm. & (c) Purdew v. Jackson, 1 Russ. 1 ; Gif. 407. Sonner v. Morton, 3 Russ. 65. (6) Purdew v. Jackson, 1 Euss. (d) Stife v. Everitt, 1 M. & Cr. 45, 46: 37 ; Harley y. Harley, 10 Hare, 325. s s 2 fiSl8 GF THE ESTATE OF A FEME [CII. XXIII. S. 5. Equity to a settlement. Feme may assert her equity to a settlement actirely. Right by survivorship. vivorsMp remains, unless reduction into possession be actually- effected by the husband in his lifetime (a). So far the analogy between interests legally vested in the feme, and those which are held for her by a trustee, is perfect ; but in the case of the equitable interest, the husband's rights are further subject to the wife's equity to a settlement. This equity appears to have had its origin (&) in cases where the trustee, declining to pay, transfer, &c., the wife's possessory interest to the husband, and the husband filing a bill against the trustee to compel payment, transfer, &c., the Court held that those who seek equity must do equity ; and declined to assist the husband in obtaining the wife's equitable interest, except upon the terms of some portion of it being settled for the benefit of the wife and her issue (c). But whatever may have been the source of this equity, it is undoubtedly one which the wife has a right, according to the now established practice of the Court, to assert actively, either by bill {d), or, in the case of an already existing suit, by petition (e), at any time before the husband has finally reduced the equitable interest into possession. It is equally clear that the equity is one which the wife has a right to waive, by consenting in open court to the receipt of the equi- table interest by the husband. It must be remembered, that the wife's equity to a settle- ment, and her right by survivorship, are two entirely distinct things. The former arises only when the fund is ready for reduction into possession and may be waived by the wife in open court ; the latter, the wife cannot, by any act during coverture, deprive herself of ; and the Court, as we have seen elsewhere (/), treats as nugatory any act done by the husband, or by his procurement, for the purpose of rendering the wife's (a) JEUison v. Mwin, 13 Sim. 309 ; Ashby V. Ashhj, 1 Coll. 553 ; Bald- win v. Baldwin, 5 De Gex & Sm. 319. (i) See Bosvil v. Brander, 1 P. W. 458 ; Browne v. Mton, 3 P. "W". 202. (e) As to the present practice of the Court in settling the whole or part, see pp. 369, 370, supra, and eases there referred to. {d) Lady JSlihank V. Montolieu, 5 Yesey, 737. (e) Greedy v. Lavender, 13 Beav. 62; Scott V. SpasheU, 3 Mao. & Gor. 699. (/) Pages 371, 372, supra. CH. XXIII. S. 5.] COVERT CESTUI QUE TRUST. fi29 reversionary interest possessory, and thus diminishing her rights by survivorship. 2 . The effect of marriage being, as a general rule, the same Equitable chat- 1 1 • ■ ^ 11 1 J. tels real of /emf upon equitable as upon legal interests, it lollows that, as covert. the husband, may assign the chattels real of the wife at law, so he may assign her trust of a term in equity (a), though it be merely a contingent interest (6) ; and, of course, without the concurrence of either the wife or the trustee, and without consideration. And this doctrine has not been inter- fered with by the case of Purdew v. Jackson (c) ; for a trust of chattels real is not a chose in action, but a present interest — an estate in possession (d). If, however, the equit- able interest in the chattel be such that it could not by possi- bility vest in the wife during the coverture, then, inasmuch as a legal interest of a similar kind could not be disposed of by the husband, he cannot dispose of the equitable one (e). Whether the doctrine regarding the wife's equity to a Whether wife settlement extends to the equitable chattels real of the meutoutof wife, has been much doubted. It was held in a late case, chattels real. by Vice- Chancellor Wigram, as a result of the principles laid down by Lord Cottenham, in Sturgis v. Champneys (/), that even where the husband could dispose of the equitable chattel, the wife was entitled to a provision out of the equi- table interest as against the assignee of the husband, for valuable consideration (^r). The opinion of the Vice-Chancellor himself was the other way, but he considered himself bound by the authority of the Chancellor in the case referred to. (o) Motipe V. Atkinson, Bunb. per Lord Hardwicke ; Incledon v. 162 ; Mitford v. Mitford, 9 Yes. NoHhcote, 3 Atk. 435, per eundem ; 99, per Sir W. Grants Packer v. Clark v. Burgh, 2 Coll. 221. Wyndham, Pr. Ch. 418, 419, per (J) Donne v. Hart, 2. R. & M. Lord Cowper; Franco v. Franco, 360. 4 Ves. *528, per Lord Alvanley; (c) 1 Russ. 1. Bullock y. Knight, 1 Ch. Ca. 266, {d) See Mitford v. Mitford, 9 per Lord Nottingliain ; Sanders v. Ves. 98, 99; Holland's case. Style, Page, 3 Ch. Re. 223, per Cur. ; 21 ; Burgess v. Wheate, 1 Ed. 223, Macaulay v. Philips, 4 Ves. 1 9, 224 ; Box v. Jackson, 1 Drury, 84. per Lord Alvanley; Wikes^s case, (e) Dulerly v. Day, 16 Beav. 33. Lane, 54, per Barons Snig and (/) 5M.&Cr.97;andseeJFortAa»j Altham ; 8. C. Roll. Ab. 343 ; v. Pemherton, 1 De Gex & Sm. 644. Jewson V. Moulson, 2 Atk, 421, {g) Hanson v. Keating, 4 Hare, 1. 630 OP THE ESTATE OF A FEME [CH. XXHI. S. 5, Result of '^^^ result of these decisions is very remarkable. Thus, a decisions. mortgage by the husband of the wife's legal term bars her of all right, except in the equity of redemption (a) ; while under a similar mortgage of the equitable term, she would have an equity to a settlement as against the mortgagee. Again, the legal reversionary term of the wife, provided it be such as may by possibility vest during the coverture, is capable of absolute assignment by the husband ; and the wife has no right by survivorship, such as exists in the case of her chose in action, whereas as respects the assignment of a similar equitable interest, there would be an equity to a settlement in the wife. Supposing then the not improbable case to arise of an actual assignment by the husband of the wife's equitable term, and of his death before any question raised as to the rights of the parties, the Court will have to decide, either that the wife's equity to a settlement may be asserted after the husband's death (an entirely new doctrine), or that the death of the hus- band places the assignee in a better position than he was in so long as the husband lived. The diificulties, indeed, of apply- ing the doctrine of the wife's equity to the case of chattels real, must, undoubtedly, prove considerable; but it can be hardly expected, that the steps of which Lord Cottenham, in StK/rgis v. Champneys, took the first, will now be retraced. Effect of getting It is conceived that if the husband, or the assignee from him in legal estate in »,-,.» , -j. i i i • i i- j.i wife's equitable °^ *he wiie s equitable term, can procure an assignment oi the *^™' legal estate from the trustee, the wife's equity to a settlement is at an end ; but the point is untouched by authority. Estate by eieg'it ^^ ^ judgment be acknowledged to A. in trust for a feme sole, and she marries, and the conusee of the judgment sues an elegit, and possession of the lands is delivered to him in trust for the wife, the husband may assign the extended interest, as he might have assigned the trust of a term certain (&); and the law is the same where the feme is put in possession of lands by a decree of the Court of Chancery until a certain sum be raised byway of equitable elegit (c). But a mere judgment, recovered by the (a) Sill V. Edmonds, 5 De Gex & 3 P. W. 201, per Lord King. But Sm. 603 ; Clarh v. CooJe, 3 De Gei this was before the case of Purdew & Sm. 333. y. Jachson, 1 Russ. 1. (6) Lord Carteret v. Paschal, (c) 8. C. ib. 197. in trust for a feme coTcrt. CH. SXIII. S. 5.] COVEET CESTUI QUE TEUST. 631 wife before the coverture, is clearly a chose in action, and as such cannot be disposed of by the husband, except by actual reduction into possession (a). And it has been held that a mortgage term in trust for the Mortgage term wife (6), or a term in trustees for raising a portion for her(c), ftme^oTert* may be assigned by the husband so as to carry the beneficial interest. But in these cases a doubt arises whether the debt or portion may not be held to be the principal thing ; and as the doctrine that a chose in action of the wife is not dis- posable by the husband is of far more recent date than the decisions referred to, the question cannot be considered as settled. The cases in which it has been held under the order and disposition clause in bankruptcy, that the land draws with it the debt, so as to exclude the operation of the clause, tend strongly to support the old authorities, but are hardly decisive {d). A second husband may assign the trust of a term limited to Equitable term the separate use of a feme upon her first marriage, or during separate use. her first coverture, unless it appear that it was the intention to extend the separate use to a subsequent marriage (e). It was held, indeed, by Lord Nottingham in Sir Edward Turner's case if), that a term thus limited could not be disposed of by the second husband ; but the decree, it is said, originated in mis- take ((/) ; and was reversed in the House of Lords on appeal {h). 3. The case of the wife's equitable estate in lands of freehold Wife's equltaWe or of inheritance, presents in the main the same general simi- S^freehoUor""^' larity to that of her legal estate in like lands as has been i°iiwitance. noticed in the case of chattels real. Thus the husband with- out the wife can, in the case of the equitable as in that of the {a) Fitzgeraldr.Fitzgerald, 8Com. (e) Tudor v. Samyne, 2 Vern. B. E,. 611. 270; BaHon v. Briscoe, Jae. 603; (J) Bates V. Bandy, 2 Atk. 207 Packer v. Wyndliam, Pr. Ch. 412 see 418. (c) Walter v. Saunders, 1 Eq, Ca. Ab. 58 ; Incledon v. Northcote 3 Atk. 430, see 435 ; and see Mitford 17 v. Mitford, 9 Ves. 99; Hore v Becher, 12 Sim. 465. {d) Jones v. Gibbons, 9 Vesey 407 ; and see Bees v. Keith, 11 Sim, 388 Knight v. Knight, 6 Sim. 121 ; Benson v. Benson, ib. 126 ; and see Howard v. Hooher, 2 Ch. Re. 81 ; Edmonds v. Bennington, cited Carleton v. Earl of Dorset, 2 Vern. (/) 1 Ch. Ca. 307. {g) See Sanders v. Page, 3 Ch, Re. 224 ; but see Pitt v. Hunt, X Vern. 18. (A) 1 Vera. 7. 639 OF THE wife's [cH. XXIII. s. 5. legal interest, convey an estate for the joint lives of himself and his wife, or for his own life after issue born. So he and his wife conjointly can, by deed acknowledged by the latter under the Fines and Recoveries Act, dispose of the equitable as of the legal interest, and bar an equitable entail as they might a legal entail, by deed enrolled in Chancery. But according to Lord Cottenham's decision in Sturgis v. Champ- neys, the sole acts of the husband cannot affect the wife's equity to a settlement ; and his power over the equitable interest is, in this respect, less extensive than that which he possesses over the legal. And it has been held, that the mere circumstance of the existence of a jointure-term preceding the estate of a, feme covert tenant in tail in possession subject to the term, sufficiently renders the wife's estate equitable to entitle her to a settlement on a bill filed by her (a). The effect of the husband, or the husband's assignee, pro- curing a conveyance of the legal estate so as to clothe his equitable interest therewith, must be the same as in the case of an equitable term of years adverted to above. The wife's sepa- 4. We now proceed to the consideration of the wife's separate estate. Where property is settled to the separate use of a feyne covert, unquestionably it is competent to her, unless her power of anticipation be restrained (&), and without the concurrence of her trustees, unless the terms of the settlement require it (c), to deal with the property directly and expressly, precisely in the same manner as if she were a feme sole. General rule. The general principle that governs the law of separate use was laid down by Lord Thurlow, and has been recognised by the highest authorities, viz., that " a feme covert, acting with respect to her separate property, is competent to act in all respects as if she were a feme sole " (d). {a) Wortham v. Pemberton, I De anticipation was or not to be re- Gex & Sm. 644. strained. See Ross's Trusts, 1 Sim. (J) Tlie words " without power of N. S. 199 ; Scott v. Davis, 4 M. & anticipation" are those most com- Cr. 89 ; Doolan v. Slake, 3 Ir. Chi monly used to deprive a feme of the Ee. 349, and oases cited ib. power of forestalling the income, but (c) Grighy v. Cox, 1 Ves. 518, this phraseology need not necessarily per Lord Hardwicke: Bowling v. be adopted, as it is a question of Maguire, Rep. t. Plunket, 19, per intention upon the whole of the Lord Plunket, instrument whether her power of (c?) Hulme v. Tenant, 1 B. C. C. 20. CH. xxni. s. 5.] SEPARATE ESTATE. r738 A feme, covert, therefore, as regards lier separate property, Bill. Answer. sues separately by her next friend, and may obtain an order to " ■■ > ' ■ answer separately (a), and if out of the jurisdiction be served with process by leave of the Court (6), will be bound by a submission in her bill (c), or answer (d), or by a contract for sale (e), and her declarations may be read in evidence against her (/), and she will be liable to an attachment for want of answer where she answers separately (ji), and similarly for disobeying the order of the Court in a suit to which she is a party in respect of her separate estate (h), or her separate property may be ordered to be sequestered (i). The Courts have further determined, that if, without any General engage- 7., n J.I, J. j.r ments of a feme direct or express reference to her separate property, a jeme covert in vritm<'. covert bind herself by any written instrument, the implication of law is, that she meant to charge her separate estate, for except with reference to that the instrument was without meaning and nugatory. Thus, if a feme covert execute a bond(fc), even to her husband (Z), or join in a bond with (a) Jackson v. Saworth, 1 Sim. & St, 161. (J) Copperthwaite v. Tuite, 13 Ir. E^. Re. 68. (e) Allen v. Papworth, 1 Ves. 163. {d) Clerk v. Miller, 2 Atk. 379 ; Baileyv. Jackson, C. P. Cooper'sRep. 1837-8, 495, Husband and wife put in a joint answer, and the wife ad- mitted certain indentures to be in her possession and claimed the estates to which the indentures related to her separate use for her life. The plaintiff moved for production, but it was argued that the answer was the husband's and could not be read as an admission by the wife. How- ever, the Court said though there was some logical difficulty, there was none in substance. That if the wife claimed the benefit of the sepa- rate use she must take it with its disadvantages, and ordered the pro- duction by the wife, and that the husband should permit her to pro- duce. Cowdery v. Way, V. 0. Knight Bruce, 2d Nov. 1843 ; and see Callow v. Howie, 1 De Gex & Sm; 534 ; Darhishire v. Home, 3 De Gex, Mao. & Gor. 113. (e) Davidson v. Gardner, Vend, and Purch. 891, 11th ed. ; Stead v. Nelson, 2 Beav. 248 ; and see Har- ris V. Mott, 14 Beav. 169. (/) Peacock v. Monk, 2 Ves. 193, per Lord Hardwicke. {g) Oraham v. Fitch, 2 De Gex & Sm. 246; Taylor v. Taylor, 12 Beav. 271. {h) Otway v. Wing, 12 Sim. 90. (i) Keogh v. Cathcart, 11 Ir. Eq. Rep. 280 ; and see cases cited ib. (k) Lillia V. Airey, \ Ves. jun. 277; Norton v. Turvill, 2 P. W. 144 ; Peacock v. Monek, 2 Ves. 193, ^er Lord Loughborough; Tul- let V. Armstrong, 4 Beav. 323, ^er Lord Langdale. {I) Heatley v. Thomas, 15 Ves. 596, 634 OP THK WIFE S [CH. XXIII, S. 5. General engage- ments not in ■writing. another even with her husband {a), or sign a promissory note (6), or bill of exchange (c), or agree to take a leasehold house for a term of years id), though she is not personally bound, yet her separate estate is liable. So if she give a written retainer to a solicitor, it entitles him to have his costs out of her sepa- rate estate {e), though the circumstance that the solicitor of a husband and wife has transacted busiaess relating to the separate estate is not "per se " sufficient to make that estate directly liable for the amount of his costs (/) ; and if she con- tract for the purchase of an estate, she may enforce it against the vendor, as it creates a valid obligation in respect of her property (g). And it is immaterial whether the contract expressly refer to the separate property, or whether the vendor Icnew or not that purchaser was a married woman Qi). In one case a, feme executed a bond before her marriage, and her property having been settled upon her marriage to her separate use, the obligee filed his bill against the husband and wife to have the debt paid out of her separate estate, and the husband having absconded, the Court made the order (i). It has been stated that a feme covert makes her separate property liable by the execution of any written instrument : to that extent there can be no question ; but the principles upon which the liability was held to attach were until recently involved in much doubt. Thus it was considered by Lord Loughborough (k), Sir J. Leach (l), and the late Vice- Chancellor (a) Heathy v. Thomas, 15 Yes. 596 ; Stanford v. Marshall, 2 Atk. 68 ; Hulme v. Tenant, 1 B. C. C. 20. (6) BuUpin V. Clarke, 17 Ves. 365; Field v. Sowle, 4 Kuss. 112; Tullett V. Armstrong, 4 Beav. 323, per Lord Langdale; Fitzgibhon v. Blake, 3 Ir. Ch. Re. 328. (c) Stuart V. Kirkwall, 3 Mad. 387; Coppin v. Gray, 1 T. & C. Ch. Ca. 205 ; Tullett v. Armstrong, 4 Beav. 323, per Lord Langdale. But where there is no separate use a married woman cannot contract under the Fiaes and Recoveries Act. Crofts V. Middleton, 2 Eay & J. 194. [d) Qaston r. Frankum, 2 De Gex & Sm. 561 ; S. C. on appeal, 16 Jur. 507. (e) Murray v. Barlee, 4 Sim. 82 ; 3 M. & K. 209. (/) Callow V. Howie, 1 De Gex & Sm. 521 ; and see Re Pugh, 17 Beav. 336. {g) Bowling v. Maguire, Rep. t. Plunket, 1 ; but see Chester v. Piatt, Vend, and Puroh. 173, 13th edit. (A) Bowling v. Maguire, Rep. t. Hunket, 1. (i) Biscoe r. Kennedy, cited Hulme V. Tenant, 1 B. C. C. 17. (k) See Bolton v. Williams, 2 Ves. jun. 142, 150, 156; Whistler V. Newman, 4 Ves. 145. {I) See Greatley v. Noble, 3 Mad. CH. XXm. S. 5.] SEPARATE ESTATE. 635 of England (a), that the separate estate of a. feme covert was not subject to her general engagements, and that upon the notion that a feme covert could not contract, hut that every dealing in respect of her estate was in the nature either of an appoint- ment or of a disposition (&). However, it is clear that a feme covert can, in respect of her separate use, contract (c), and that her written obligations are not to be viewed as appointments, and do not operate merely by way of disposition. The prin- ciples that govern the liability of a feme's separate property have been very satisfactorily explained by Lord Brougham and Lord Cottenham. " The wife," said Lord Brougham," has a separate estate Lord BrougUm's subject to her own control, and exempt from all other inter- principles wMcli ference or authority ; if she cannot affect it, no one can, and the j^^J? *^f the very object of the settlement which vests it in her exclusively /ewe's separate estate. is to enable her to deal with it as if she were discovert. At first the Court seems to have supposed that nothing could touch it but some real charge, as a mortgage, or an instrument amounting to an execution of a power (where that view was supported by the nature of the settlement), but afterwards her intention was more regarded, and the Court only required to be satisfied that she intended to deal with her separate property. When she appeared to have done so, the Court held her to have charged it, and made the trustees answer the demand thus created against it. A good deal of the nicety that attends the doctrine of powers thus came to be imported into this consider- ation of the subject. If the wife did any act directly charging the separate estate, no doubt could exist, just as an instrument expressing to be in execution of a power was always of course 94 ; Stuart v. Kirkwall, ib. 389 ; (c) See Owens v. Dickenson, 1 Aguilar v. Aguihr, 5 Mad. 418 ; Cr. & Ph. 53 ; Bowling v. Maguire, Field y. Sowle, 4: B,uas.lU; Chester Rep. f. Pluaket, 19; Master v. V. I>lati, V. and P. 173, 13tli ed. Fuller, 4 B. C. C. 19 ; Stead v. (a) Bee Murray Y. Barlee, 4: Sim. N^elson, 2 Bea.v. 245; WainwrigU 82 ; and see JDighy v. Irvine, 6 Ir. v. Sardisty, 2 Beav. 363 ; Bailey v. Eq. Eep. 149. Jackson, C. P. Cooper's Kep. 1837-8, (6) See Bolton v. Williams, 2 495; Francis v. Wigzell, 1 Mad. Vea. jun. 150 ; Greatley v. JVbftfe, 261 ; Crosby v. Church, 3 Beav. 3 Mad. 94 ; Stuart v. Kirkvjall, ib. 489 ; Tullett v. Armstrong, 4 Beav. 389 ; Aguilar v. Aguilar, 5 Mad. 319. 418 ; Field Y. Sowle, 4 Buss. 114. G3G OF THE wife's [ch. XXUI. Sv'I); considered as made in execution of it ; but so if by any reference to the estate it could be gathered that such was her intent, the same conclusion followed. Thus if she only executed a bond, or made a note, or accepted a bill, because those acts would have been nugatory if done by a feme covert without any reference to her separate estate, it was held that she. must be intended to have designed a charge on that estate, since in no other way could the instruments thus made by her have any validity or operation, in the same manner as an instrument which can mean nothing if it means not to execute a power, has been held to be made in execution of that power, though no direct reference is made to the power. But doubts have been, in one or two instances, expressed as to the effect of'any dealing, whereby a general engagement only is raised, that is, where she becomes indebted without executing any written in- strument at all (a). I own I can perceive no reasojifor drawing any such distinction. If in respect of her separate estate the wife is in equity taken as a feme sole, and can charge it by instruments absolutely void at law, can there be any reason for holding that her liabiUtj^ or, more properly, her power of affecting the separate estate, shall only be exercised by a written instrument ? Are we entitled to' invent a rule to add a new chapter to the Statute of Frauds, and to require writing where that Act requires none ? Is there any equity reaching written dealings with the property, which extends not also to dealing in other ways, as by sale and delivery of goods ? Shall necessary supplies for her maintenance not touch the estate, and yet money furnished to squander away at play be a charge on it, if fortified by a scrap of writing ? No such distinction can be taken upon any conceivable principle " (6). LordCottenliam's "^ Writing," said Lord Cottenham, "is operative upon a view of the prin- feme's separate estate, not by way of the execution of a power, ciples regulating *' ^ ' j j ^ ^ r > the liability of although that has been an expression sometimes used, but, as the separate estate. (o) It maybe observed that the appear to have conceived that any dis- late V. C. of England while ex- tinction existed between a written pressing his opinion upon the hear- and un\\Titten obligation ; see 4 Sim, ing below, that the general engage- 94. ments of the feme covert did not (i) Murray v. Barlee, 3 M. & K. affect the separate estate, does not 223. CH. XXIU. S. 5.] SEPAKATE ESTATE. 637 I appreliend, very inaccurately used in cases where the Court has' enforced the contracts of married women against their separate estate. It cannot be an execution of the power, because it iieither refers to the power, nor to the subject- matter of the power, nor, indeed, in many of the cases has there been any power existing at all. Besides, as it was ai'gued in the case of Murray v. Barlee, if a married woman enters into several agreements of this sort, and all the parties come to have satisfaction out of her separate estate, they are paid pari passu; whereas, if the instruments took effect as appointments under a power, they would rank according to the priorities of their dates. It is quite clear, therefore, that there is nothing in such a transaction which has any resem- blance to the execution of a power ; what it is, it is not easy to define. It has sometimes been treated as a disposing of the particular estate ; but the contract is silent as to the separate estate, for a promissory note is merely a contract to pay, not saying out of what it is to be paid, or by what means it is to be paid; and it is not correct, according to legal principles, to say that a contract to pay is to be con- strued into a contract to pay out of a particular property, so as to constitute a lien on that property. Equity lays hold of the separate property, but not by virtue of anything expressed in the contract, and it is not very consistent with correct principles to add to the contract that which the party has not thought fit to introduce into it. The view taken of the matter by Lord Thurlow, in Hulme v. Tenant, 1 B. C. C. 16, is more correct. According to that view, the separate property of a married woman being a creature of eqiuty, it follows that if she has a power to deal with it, she has the other power incident to property in general, namely, the power of contracting debts to be paid out of it ; and in as much as her creditors have not the means at law of compelling payment of those debts, a court of equity takes upon itself to give effect to them, not as personal liabilities, but by laying hold of the separate property as the only means by which they can be satisfied. I observe that in Clinton v. Willes, 1 Sug. Pow. 208, n.. Sir Thomas Plumer suggested a doubt whether it was necessary that the feme's engagements should be 638 OF THE WIFE S [CH. xxin. S. 5. Eesult of judg- ments of Lord Gotteiiham and Lord Brougham, ObBervations of T. C. Kinders- ley respecting /erne's verbal engagements. secured by writing: it certainly seems strange that there should be any difference between a contract ia writing, when no statute requires it to be in writing, and a verbal promise to pay. It is an artificial distinction not recognised in any other case. On that point, however, I give no opinion at present " {a). The judgments of Lord Cottenham and Lord Brougham in the cases last referred to must be held to have clearly estab- lished that the dealings of the feme covert with her separate estate do not operate by way of appointment or disposition, and if this be so, it is difficult to see on what ground any valid distiuction can be sustained between verbal and written engagements, the point which was left undecided by Lord Cottenham. If a written promise to pay, as a promissory note, referring neither to the instrument of trust nor to the property, be held to bind the separate estate, upon what ground can a verbal assumpsit be distinguished ? So long as it could be maintained that the dealing of the married woman operated by way of disposition of the separate estate, there seemed room for contending that the disposition, as being an assignment of a trust, must have been in writing (6) ; but so soon as it is admitted that the general engagement in writing binds, it seems impossible to resist the conclusion that a verbal general engagement must bind likewise. When it is attempted to imply a promise from mere acts of the feme, which may be construed as intended to bind either her hus- band or herself, there seems room for a distinction, but an express verbal promise and an express written promise to pay must, it is conceived, stand on the same footing. The ques- tion, however, is one which stUl requires further elucidation by decision, and in a late case we find Vice- Chancellor Kin- dersley expressing himself in the following guarded language : "It has not yet, indeed, been made the subject of positive decision, that the principle embraces a feme's verbal engage- ments or cases of common assumpsit. Considering, however, the opinions expressed and the reason of the thing, I think (a) Owens v. Dickenson^ 1 Cr. & Ph. 53. (5) See page 600 suprd,. CII. XXm. S. 5.] SEPAEATE ESTATE. 689 it very probable that when that question arises for decision it will be decided in the affirmative (a)." It may be suggested that there is still another distinction, viz. Whether sepa- 1 <^o ^ rate estate can be that, allowing the general engagements of the wife, whether made liable ty written or unwritten, to bind her separate estate, yet, supposing in clear oontra- the doctrine of these cases to be founded on the intention f ^tio" *<> tl^e in- tention. to charge the settled property as implied by the circumstance that otherwise the act would be nugatory, the same principle will not apply where it was clearly not the intention of the feme to create any charge, but, if any exist, it arises upon an assumpsit in law, wholly disconnected from the actual intention. In accordance with this view it was held that where a feme covert granted an annuity which was void for want of a proper memorial, the annuitant had no remedy against the separate estate for the repayment of the purchase-money, as no implication of an assumpsit could be raised against her (b). So where a feme covert misapplied some trust-money, and had she heena, feme so fe would have been liable for the amount, the Court thought the cestui que trust could not charge the separate estate, in the total absence of the /erne's intention to make her property liable (c). However, there appears to be but a thin partition between the general engagements of a feme not in writing, and an assumpsit raised in law upon facts done alio intuitu ; and considering that recent decisions have rather regarded the feme covert as in all respects a feme sole to the extent of her separate estate, it may not be safe to rely upon cases which have evidently proceeded upon principles that have since been abandoned. Where a feme covert was privy to a breach of trust affecting Breach of trust by a fetiie covert, the fund of which she was tenant for life to her separate use, it was decided by Lord Loughborough that she could proceed against the trustee, and compel the replacement of the (a) Vaughan v. Vanderstegen, 2 low, the point was not argued, and Drew. 183 ; and see Newcomen v. Lord' Loughborougli, on the rehear- Hassard, 4 Ir. Ch. Re. 274, ing, thought he had no jurisdiction (6) Jones v. Harris, 9 Ves. 486 Aguilar v. Aguilar, 5 Mad. 414 Solfon v. Williams, 4 B. C. C. 297 to decide it. (e) Oreatley v. Nolle, 3 Mad. 79; and see Nantes v. Corroch, 9 Yes. S. C, 2 Ves. jun. 138; hut in the 182; Stuart v. Kirkwall, 3 Mad, latter case, when hefore Ijord Thur- 387. 640 OF THE wife's [CH. XXIII. s. 6, fund (a). It would seem difficult to support this decision, even on the assumption that the wife's dealings operated hy way of disposition. And in a case before Lord Langdale, where a married woman had concurred actively in dealings with the trust fund, amounting to a breach of trust, and she subsequently to her husband's decease filed a bill to have the trust fund replaced, his Lordship treated the acts of the feme as an actual disposition of the fund to the extent of her separate estate therein, and made the separate estate available in partial exoneration of the trustee's liability (6). View of Lord St. In a subsequent case before Lord St. Leonards, in Ireland, his reference to Lordship expressed himself thus : " I hope that the Court may by/eS^^oLr r* f^el itself at liberty to treat a woman entitled for her separate having a sepa- ygg i^ possession as sui juris, so as to bind her interest where rate estate. she prevails upon her trustees to commit a breach of trust." But his Lordship in the same case in which the separate use of the feme covert was to arise upon a contingency, viz., the insolvency of the husband, which had not yet occurred, held that the feme covert could not by any act bind her interest (c). Nature of the Supposing a person entitled to establish his claim against separate estate, the Separate estate, the limits of his remedy appear to be these. He cannot file a bill against the feme covert as the sole defendant and personally liable. " There is no case," said Sir T. Plumer, "in which this Court has made a personal decree against a feme covert. She may pledge her separate property and make it answerable for her engagements ; but where her trustees are not made parties to a bill and no particular fund is sought to be charged, but only a personal decree against her, the bill cannot be sustained " {d). But the party aggrieved may file a bill against her and her trustees, (and the death of the husband, which puts an end to the separate use, either after the filing of the bill (e), or even before it (/), will not defeat the (a) Wiistler v. Newman, 4 Ves. v. Wells, 9 Hare, pp. 772, 7T3. 129; see observations ofLordBldon (c) MaraY. Manning, 2 Jones & on this case; Parhes v. White, 11 Lat. 311. Ves. 223. (rf) Francis v. Wigzell, 1 Mad. 262. (6) Croshy v. Church, 3 Beav. 485; (e) Field v. Sowle, 4 Kuss. 112. and see Brewer v. Swirles, 2 Sm. & {/j Heatley v. Thomas, 15 Ves. Giff. 219 ; and tlie observations of 596 ; but see Kenge v. Belavall, L. J. (then V. C.) Turner in Hughes 1 Yern. 326. CH. XXin. S. 5.] SEPAEATE ESTATE. 641 suit,) and may pray payment of his demand out of all personal estate in the hands of the trustees to which she is entitled absolutely, (including arrears of rents,) and also out of the accruing interest or rents, if there be no clause against antici- pation, until the claim and costs have been satisfied (a). " Determined cases," said Lord Thurlow, " seem to go thus far, that the general engagement of the wife shall operate upon her personal property, shall apply to the rents and profits of her real estate, and that her trustees shall be obliged to apply personal estate, and rents and profits when they arise, to the satisfaction of such general engagement; but this Court has not used any direct process against the separate estate of the wife, and the manner of coming at the separate property of the wife has been by decree to bind the trustees as to personal estate in their hands, or rents and profits, according to the exigency of justice or of the engage- ment of the wife, to be carried into execution." His lordship then adds, " I know of no case where the general engagement of the wife has been carried to the extent of decreeing that the trustees of her real estate shall make conveyance of that real estate, and by sale, mortgage, or otherwise, raise the money to satisfy that general engagement on the part of the wife " (6). But it is conceived that if in any case the instru- ment were so specially worded as to place the corpus also at the disposal of the feme covert as entitled to it for her separate use, the engagements of the wife would, upon principle, bind the whole interest settled to the separate use, whether corpus or income. If there be a clause against anticipation, the Court directs ^'*^»'? ?" p"**'" of anticipation. payment out of the /erne's separate estate, except that part of which she has no power of anticipation (c). But where there is a restraint upon anticipation the engagements of the (o) Hulme v. Tenant, 1 B. C. C. 492, 493, 497 ; Stuart v. Kirkwall, 20 ; Standford v. Marshall, 2 Atk. 3 Mad. 38Y. 68 ; Murray v. "Barlee, 4 Sim. 82 ; (J) Hulme v. Tenant, 1 B. C. C. 3 M. & K. 209 ; Field v. Sowle, 4 20, 21 ; and see Broughton v. James, Euss. 112; Nantes v. Corroch, 9 1 Coll. 26. Ves. 182 ; Bullpin v. Clarke, 17 (c) Mxtrray y. Barlee, 4 Sim. 95. Ves, 365; Jones v. Harris, 9 Vcs. T I 642 OF THE WIFE S [CH. XXIII. S. 3. Stock settled to the separate use, Creditor suit after deatli of ftmt covert. Power of disposi- tion ty will of separate estate. Separate estate undisposed of survives to the hushand. Arrears of sepa- rate estate. wife will operate upon any arrears of the separate use that may have already accrued (a). In one case the Court refused to hold the bank annuities of a feme covert liable, as stock could not in the case of a person sui juris be taken in execution (b) ; but now that stock is available to the creditor (c), the distinction 'may be considered as gone. After the death of the fe^ne covert the creditor may file a bill for payment of his debt out of her sepai*ate estate (tZ), and where there are other creditors, specialties and simple contract debts will be paid pari passu, as the separate pro- perty is considered equitable assets (e). A feme covert has, as incident to her separate estate, a power to dispose of it, and of all accumulations .therefrom, by testamentary instrument in the natflre of a will (/). And if a feme leave a will and make bequests, the usual course of administration will be observed. Thus the undisposed of estate will be first applied, then, general legacies, and, if there still be a deficiency, the specific legacies {g). If a feme having personal estate settled to her separate use die without disposing of it, the husband will be entitled to it; as to so much thereof as may consist of cash, furnitm-e, or other personal chattels in his marital right, and as to so much as may consist of " choses in action," upon taking out adminis- tration to his wife (h). If the husband receive the wife's separate income, though there was a clause against anticipation (i), and the wife sur- vives, it is clear that she or her personal representative cannot claim against his estate more than one year's arrears, but it is still sub judice whether the wife or her representative (o) Fitzgihhon v. Blake, 3 Ir. Ch, Re. 328. (i) Nantes v. Corrock, 9 Ves. 182. (c) 1 & 2 v., c. 110, s. 11. (d) See Owens v. Dickenson, 1 Cr. & Phil. 48 ; Gregory v. Lockyer, 6 Mad. 90. (e) Anon. 18 Ves. 258 ; Owens V. Dickenson, 1 Cr. & Ph. 53, per Lord Cottenham. (/) Fettiplace v. Gorges, 1 Vesey, jun. 46 ; Sumplierey v. Ricliards, 2 Jur. N. S. 432. {g) Norton v. Tarvill, 2 P. W. 144. (A) Molony v. Kennedy, 10 Sim. 254; Birdy. Peagt'um, 13 Com. B. R. 639 ; Johnstone v. Lumh, 15 Sim. 308 ; Drury v. Scott, 4 T. & C. 264. (i) Hotcley v. Unicin, 2 Kay & J. 138. CH. XXIII. s. 5.] SEPAKATE ESTATE. 643 can claim even so much. Lord Macclesfield (a), Lord Talbot (&), Lord Loughborough (c), Sir W. Grant (d), and Lord Chancellor Brady (e) held that the wife or her representative could claim nothing. On the other hand, in the judgment of Sir T. Sewell(/), Lord Camden (gf), Lord King(/i), Lord Hard- wicke (i),' Lord Eldon (fc), Sir J. Leach (i), Sir J. Stuart (m), and Lord St. Leonards (re), the husband's estate is liable to an account for one year. The more commonly received opinion in the profession is thought to be that an account for one year should be given (o). The principle upon which the relief is thus limited is that the Court presumes the acquiescence of the wife in the hus- band's receipt de anno in annum. If therefore the wife did not in fact consent to the husband's receipt, but remonstrated and required that the separate income should be paid to her- self, which was promised, the Court will carry back the account of the arrears to the time of the wife's assertion of her claim (p). But the Court requires very clear evidence that the demand was seriously pressed by the wife, and will not charge the (o) Powell V. Hanhey, 2 P. W. 82. (J) Fowler v. Fowler, 3 P. W. 353. (N.B. A case of pin-money.) (c) Squire v. Dean, 4 B. C, C. 325 ; Smith v. Camelford, 2 Ves. jun. 716. {d) Dalbiac y. Dalbiac, 16 Ves. 126. (e) Arthur v. Arthur, 11 Ir. Eq. Ee. 511. (/) Burdon v. Burdon, 2 Mad. 286, note. (g) Vo. p. 287, note. ( (A) Countess of Warwick v. Ed- ■toards, 1 Eq. Ca. Ab. 170. In Thomas v. Bennet, 2 P. W. 341, Ms Lordship probably held only that ten years' arrears could not be given. (»') Townshend v. Windham, 2 Vea. sen. 7 ; Peacock v. Monk, 2 Ves. sen. 190 ; Aston t. Aston, 1 Vea. sen. 267. {k) Parkes v. TFhite, 11 Ves. 225 ; Brodie y, Barry, 2 Ves. & B, 36. (l) Thrupp V. Harman, 3 M. & K. 513. (m) Lea y. Grundy, 1 Jur. N. S, 953. (n) Property as administered, by D. P., p. 169. (o) In Howard v. JDighy, 2 CI. & Pin. 643, 665, Lord Brougham thought that in separate use, as dis- tinguished from pin-money, the wife or her representatives could recover the whole arrears, but this is clearly untenable ; see Arthur y. Arthur, 11 Ir. Eq. Kep. 513. In the same case the V. C. of England, when the cause was before him, hesitated whether the general rule gave an account for a year or none at all; see Dighy y. Howard, 4 Sim. 601. (p) Ridout y. Lewis, 1 Atk. 269 ; Moore v. Moore, 2 Atk. 272 ; see Moore y. Earl of Scarborough, 2 Eq. Ca. Ab. 156 ; Parker v. Brooke, 9 Ves. 683. T T 2 644 OF THE WIFE S [cH. xxni. S. 5. Case aifeme covert being Htm compos. Howard t. Dighy. Special con- sideration of separate use in reference to real estate. husband's estate from any idle complaints against his receipt which the wife may have occasionally made (a). As the Court proceeds upon the notion of the wife's acquies- cence, the question arises where she is non com/poi, and so incapable of waiving her right, whether the husband's estate shall not be liable for the entire arrears ; and it would seem that in such a case the husband's estate must account for the whole, but that the husband's estate will be entitled to an allowance for payments made for the wife's benefit, and which ought properly to have fallen on her separate estate (&). In Howard v. Dighy (c) a woman's inn-money was distin- guished from ordinary separate use, and it was held as to 'pin- money that the wife's representatives {d) could make no claim to any arrears. The ground upon which the House proceeded was that pin-money was for the personal use and ornament of the wife, and the husband had a right to see the fund properly applied, and that if the husband himself found the necessaries for which the pin-money was intended, the wife or her repre- sentative could have no claim against the husband's estate when the requirements for her personal use and ornament had ceased (e). Lord St. Leonards has justly questioned these principles (/), and it remains to be seen whether Howard V. Dighy will be followed, except under exactly similar circum- stances. In the foregoing discussion of the " separate use," no dis- tinction has been taken between real and personal estate. It must be observed, however, that in the case of realty it was formerly held that the feme covert could not by virtue of [a) Thrupp v. Sarman, 3 M. & K. 512. (5) Attorney- General-^. Parnther, 3 B. C. C. 441, 4 B. C. C. 409; Howard y. Dighj, 2 CI. & FIb. 671, 673, (c) 2 Ca. & Fin. 634 ; 4 Sim. 588. (d) Lord Brougham considered that the wife herseK might in her lifetime have recovered one year's arrears ; see 2 CI. & Fin. 613, 653, 659. (e) Pin-money, said Lord Hard- wicke, shall not he allowed for more than one year, not merely on a sup- posal of her having given the arrears to her hushand, but on this; that having lived with the hushand she is supposed to have received satis- faction that way ; Aston v. Aston, 1 Ves. sen. 267 ; and see Fowler v. FowUr, 3 P. W. 355. (/) Law of Property as adminis- tered, by D. P., p. 162, CH. XXIII. S. 5,] SEPARATE ESTATE. 645 the separate use, if there were no express power, dispose of the freehold, at least not for any larger interest than during the coverture (a), for between real and personal estate it was said there was this distinction, that on the death of the feme in her husband's lifetime, the absolute interest in the personal estate would devolve on the husband, but the inheritance of the real estate would descend upon the heir, who was not to be disinherited but in some formal mode. However, the favour shown anciently to the heir, has in later times been disregarded : and it is presumed that at the present day, if lands be conveyed to a trustee and his heirs upon trust as to the fee simple for a feme covert " for her separate use," she may deal with the fee as if she were a feme sole (b). It is simply a question of intention. . A married woman may have limited to her a power of disposition over a fee simple estate, and if the separate use be so worded as to show that the separate use was meant to extend not only to her life- interest but to the fee, she ought upon principle to be able to deal with the absolute property by virtue of the separate use, whether by Act inter vivos, or by testamentary instrument, as fully as she might in the case of personal estate. It cannot however be said that the question is free from doubt. In a late case in Ireland (c). Sir T. B. C. Smith, Master of the EoUs, appears to have considered the free- hold interests of the wife extending beyond her own life settled to her separate use as forming a special exception; and where freehold and copyhold premises were devised to a feme covert for her separate use, and the wife entered into a contract for sale and died, having devised the property to her husband, who filed a bill against the purchaser for specific performance, the Court considered the question of the wife's power to devise the estate as being too doubtful to (a) Churchill v. Dibben,. 2 Lord 245 ; Wainwright v. Sardisty, lb. Kenyon's Eep. 2d part, 68, p. 84 ; 363 ; Crosby v. Church, 3 Beav. case cited ia Peacock v. Monk, 2 485; BaggettY. Meux, 1 Coll. 138. Ves. 192 ; and see 2 Eop. Husb. and IPhill. 627; seep. 628; Majors. Wife, 182, 2d ed; 1 Sand, on Uses, Lansley, 2 R. & M. 355. 346, 4th ed. (c) Newcomen v. Hassard, 4 Ir. (6) See Stead v. Nelson, 2 Beay. Ch. Eep. 274. 646 JDDGMENTS AGAINST CESTUI QUE TEUST. [CH. XXUI. S. 6. compel the defendant to take the title in the absence of the heir (a). No acknowledg- It has been decided that where a feme is dealing with pro- ^Te*of s'ep'Se P^^ty hj virtue of her separate use, the deed need not be use in real estate acknowledged bv her under the Fines and Eecoveries Act (b). needed. Writs of execu- tion at common law. Levari facias from the crown distinguished from the ordi- nary levan facias. SECTION VI. OF JTJIGMENTS AGAINST THE CESITTI dVE TETTST. Before entering upon this topic, it may be useful to notice briefly how legal interests stand affected by judg- ments. At common law the plaintiff in the action had only two writs of execution open to him against the property of the defendant: the fieri facias, to levy the debt de bonis et catallis ; and the levari facias, to levy it de terris et catallis (c). The execution under the latter writ affected no interest in land of a higher description than a mere chattel interest, which last the sheriff might seU in like manner as a personal chattel, and affected not the possession of the lands (d), but merely enabled the sheriff, besides taking the chattels, to levy the debt from the present profits, as from the rents payable by the tenants (e), and the emblements (/), that is, the corn and other crops at the time growing on the lands (g). If the sheriff, when he made his return, had not levied the fuU amount of the debt, a new levari facias might have issued, to be executed by the sheriff in like manner (h) (1). (a) Harris v. MoU, 14 Beav. 169. (J) Newcomen v. Hassard, 4 Ir. Ch. Eep. 268. (c) Finch's Law, 471. {d) Id. 471; Sir E. Coke's case, Godb. 290. (e) Finch's Law, 472; Davy y. Pepys, Plowd. 441. (/) 4 Com. Ab. 118. [g) HarherVs case, 3 Re. lib; 2 Inst. 394; 2 Bac. Ab. Execu- tion (C) 4, note (5). {h) F. N. B. 265. (1) There was also another species of levari facias, of which the plaintiff might under particular circumstances, have indirectly availed himself. In case the defendant was outlawed in the action, the sheriff, on the issuing of the capias utlcgatum, took an inquisition of the lands of the debtor, and extended their value, and made hia return to the Exchequer. A levari en. xxiir. s. G.] judgments against cestui que trust. 647 In order to provide for the creditor a more effectual remedy, Statute of West- the Statute of "Westminster (a) introduced the writ of elegit, and enacted, that when debt was recovered or knowledged, or damages awarded, the suitor should at his choice (6) have a writ oi fieri facias (c) from the debtor's lands and chattels, or that the sheriff should deliver to him all the chattels of the debtor, except his oxen and beasts of the plough, and one-half of his land, until the debt should be levied upon a reasonable price or extent. It was by virtue of this statute that judgment creditors were first enabled to sue execution of one moiety of the debtor's lands, whether vested in him at the time of the judgment or subsequently acquired. Chattel interests in lands were, even before the Statute of From what time Frauds, not bound until after execution awarded. And since jn i^nd boiand; the statute, according to the better opinion, they have, as falling within sect. 16, been bound only from the delivery of the writ to the sheriff; and it would seem that, by the 19 & 20 Vict. c. 97, s. 1, the protection conferred by the Statute of Frauds has, in favour of persons bond fide and for value acquiring a title without notice, been extended to the time of actual seizure (d). (a) 13 Ed. 1, St. 1, c. 18. (d) The word "goods" used in (i) Whence the term elegit. the latter Act is the same as that (e) In these words the legislature used in the Statute of Frauds. The meant to include the two writs of only doubt would seem to be whether Jieri facias and levari facias. 2 the words actual seizure can be held In?t. 395. to apply to a chattel real. facias from the crown then followed, commanding the sheriff to levy the extended value de exitihus, from the issues of the lands, till the plaintiff should be satisfied his debt. These issues were defined to be the "rents and revenues of the land, corn in the grange, and all moveables, except horse, harness, and household stuff." 13 Ed. 1, c. 39, st. 1 ; 2 Inst. 453. The sheriff might have agisted or mown the grass. Britten v. Cole, 5 Mod. 118, per Lord Holt. But if at the date of the inquisition, the agist- ment was already let, the money agreed to be paid was a sum in gross, and was not subject to the levari facias. S. C. 1 Raym. 307, per eundem. The cattle of a stranger, if levant and couchant on the land, were seizable under the writ, as included in the word " issues." S. C. lb. 305. The lands were boimd by the levari facias from the date of the writ, so that any subsequent disposition, though it served to pass the freehold and possession, yet did not interrupt the king's title to the profits. lb. 307, per Lord Holt, 648 JUDGMENTS AGAINST CESTUI QUE TRUST. [CH. XXIH. S. 6. Fieri facias as regards trusts. Trusts not tound by it before exe- cution sued out. Nor where the legal estate is not liable. We now come to the inquiry, what is the effect of judgments upon interests in equity ? First, with respect to the fieri facias, it is clear that under the system of Mses no relief could have been granted; for the creditor, coming in by operation of law, did not possess that privity of estate which could alone confer upon him the right to sue a subpcena. During the earlier period of trusts the same technical notions prevailed ; but Lord Nottingham introduced a more liberal principle, and established, what is now law, that a creditor who was prevented from executing the legal process by the interposition of a trust, might come into Chancery, and prosecute an' equitable fieri facias (a). But, as the analogy to law must be strictly pursued, the trust of a chattel cannot be attached in equity until the writ of execution has been actually sued out ; for tOl that time there is no lien upon the debtor's effects, which is the very ground of the application (6). And as equity only follows, and does not enlarge the law, the judgment creditor has no title to relief where the chattel of which the trust has been created, is not in itself amenable to any legal process. An opinion, indeed, is subjoined to the case of Horn v. Horn in Ambler (c), that a trust of stock might, before the. late Act, have been taken by a judgment creditor in equitable execution ; and Taylor v. Jones (d), before Sir "W. Fortescue, M. E., was even a decision to the same effect ; but such a doctrine, inasmuch as stock could not have been reached at law, was clearly contrary to all principle, and after- wards incurred the express disapprobation of Lord Thurlow (e). Lord Manners (/), Sir W. Mac-Mahon (g), Sir Archibald Mac- (a) Pit V. Hunt, 2 Ch. Ca. 73 ; Gore V. Bowser, 3 Sm. & Gif. 1 ; Anon, case, cited Batch v. Wastall, 1 P. W. 445; and see Scott v. Scholey, 8 East, 485; Sstwick v. Caillaud, 5 T. R. 420. Kirkby \. Dillon,C. P. Cooper'sRep. 1837—38, 504 ; Simpson v. Taylor, 7 Ir. Eq. Rep. 182; Bennett v. Powell, 3 Drew. 326 ; Gore v. Bowser, 3 Sm. & Giff. 1. (5) Angell v. Draper, 1 Tern. 399 ; Shirley v. Watts, 3 Atk. 200. (c) Amb. 79. {d) 2 Atk. 600 ; and see a note of 8. C. in Grogan v. Coohe, 2 B. & B. 233. (e) Dundas v. Dutens, 2 Cox, 240. (/) Grogan v. Coolce, 2 B. & B. 233. {g) Plasket v. Dillon, 1 Hog. 328. CH. XXin. S. 6.] JUDGMENTS AGAINST- CESTUI QUE TRUST. 649 clonald (a), and Lord Eldon (b) ; Lord Thurlow observing, that the opinion in Horn v. Horn was so anomalous and unfounded, that forty such would not satisfy his mind (c). Now, however, by the late act for extending the remedies of creditors (1 & 2 Vict. c. 110, s. 14), a judgment debtor's interest in stock, whether legal or equitable, is rendered available for the payment of debts (d). The judgment creditor is of course entitled to the same Equity of re- relief (subject to such restrictions as we have mentioned) against the equity of redemption of a chattel (e). As regards the levari facias, a court of equity would, it is Levm-ifadas. presumed, as in the instance of ^b fieri facias, assist in the exe- cution of it where obstructed by the interposition of a trust ; but the writ being a lien at law, not upon the lands, but only on the present profits of the lands, a court of equity could not go farther and affect either the. freehold or the The elegit owing its origin to a statute, a doubt may suggest Whether equity itself in limine, whether, when the legislature has passed an 'd^JlXf&^Xosj. enactment against the legal estate, a court of equity can, con- sistently with its general principles, apply by analogy the same provision to the case of a trust. A legal estate, for example, was by act of parliament made forfeitable without inquest for treason, and, as the statute enumerated " uses," it was con- .tended, and seems to be established, that trusts have also under that expression become forfeitable to the Crown ; but it was never pretended that, had " uses " not been inserted in the act, a court of equity could have subjected trusts to forfeiture by any inherent jurisdiction of its own. It must be remarked, however, that the act which originated the elegit was, like the statute de donis, prior to the introduction of the use; and as equity, by analogy to the Statute of "Westminster, has admitted entails and remainders of trusts, why may it not, by analogy to (a) Caillaud v. Estwich, 2 Anat. (e) King v. Marissal, 3 Atk. 384. 192; Shirley v. Watts, lb. 200; (J) Rider v. Rider, 10 Ves. 368. Burdon v. Kennedy, lb. 739 ; and (c) Orogan v. Coohe, 2 B. & B. see King v. Be la Motte, Forr, 233. 162. {d) See pp. 669, 670, mfrd. 650 JUDGMENTS AGAINST CESTUI QUE TRUST. [CH. XXIII. S. 6. Trust formerly not subject to elegit. Judgment creditor may re- deem a mortgage Davidson v, Foley. another act of the same statute, allow equitable interests to be affected by judgments {a) ? It would seem that in Lord Keeper Bridgman's time a trust was not subject to an elegit (6). But the authority of that distinguished lawyer has not been followed in succeeding times. It was long ago established that a judgment creditor might redeem a mortgage in fee (c), and it is now equally or sue an rfefl'* of settled that he may prosecute his elegit against any other a trust. ... equitable interest (a). Davidson t. Foley (e), and Flasket v. Dillon (/), were cases of a legal elegit, but may be usefully noticed to prevent mis- apprehension. In the former case, Lord Foley had devised an estate to trustees for a term of ninety-nine years upon certain trusts, and subject thereto, to Thomas Foley for life, with remainders over. His Lordship had also devised other estates to trustees for a term of one hundred and one years, and subject thereto, to Thomas Foley for life, &c., as before Judgments were entered up against Thomas Foley, and the trusts of the terms having been satisfied, and the beneficial interest resulting to the tenant for life, the creditors sued out elegits, and filed a bill praying to have the terms declared attendant on the inheritance, and that the trustees might be restrained from setting up the terms at law. The warrants of attorney on which the judgments were grounded were after- (a) See Myall v. RoUe, 1 Atk. 184. (6) See Pratt v, Colt, Preem. 139. (c) Greswold v. Marsham, 2 Ch. Ca. 170; Crisp v. Heath, 7 Yin. Ab. 52 ; (Tke former case has been compared witb Eeg. Lib., A. 1685, f. 399, and the report appears sub- stantially correct: the latter case has not been found.) Plucknett v. Kirke, 1 Vern. 411 ; Eeg. Lib. 1686, B. fol. 181, 184, see infra; Sharpe V. Earl of Scarhorough, 4 Tes. 538, and the oases cited lb. 541 ; Stile- man, V. Ashdown, 2 Atk. 477; Fothergillv. Kendrick, 2 Vern. 234 ; and see Steele v. Philips, 1 Beat. 188 ; Fm-th v. Buke of Norfolk, i Mad. 503 ; King v. -De la Motte, Forr. 162 ; and see Freeman v. Tay- lor, 3 Keb. 307. , {d) Forth V. Duke of Norfolk, 4 Mad. 504, per Sir J. Leach ; Serj. Hill's opinion, lb. 506, note (a); Fosters. Blaekstone, 1 M. & K. 311, per Sir J. Leach ; and see Lodge t. Lyseley, 4 Sim. 70 ; Kirkhy v. Dillon, C. P. Cooper's Rep. 1837—38, 504 ; Neate v. Duke of Marlborough, 9 Sim. 60, 3 M. & Or. 407 ; Adams v. Paynter, 1 Coll. 530. (6) 2 B. C. C. 203; 3 B. C. C. 598. (/) 1 Hog. 324. CH. XXIII. S. 6.] JUDGMENTS AGAINST CESTUI QUE TEUST. G51 « wards discovered to be void ; but Lord Thurlow, in dismissing the bill, observed, " All he could gather from the cases was that where the Court could see there was a good judgment it would not stop without aiding that title by what was called an equitable elegit, but he could not carry it higher than that. The mquitas sequens legem must be such as to assure the Court the case was such as it could be followed by a legal execution ; but where it appeared the judgment could not be followed by a legal elegit, the Court could not follow it by an equitaile elegit." In Flasket v. Dillon, Lord Dillon, the tenant for life, had Plastet v. Dillon, demised an estate to trustees forninety -nine years, if he should so long live, upon trust, after discharging certain incumbrances, to pay to himself for life an annuity of 5000Z., and, subject thereto, upon certain trusts for his creditors. A judgment was afterwards entered up against him, and an elegit sued out, but as there was no beneficial interest upon which the elegit could operate at law, the judgment creditor filed- a bill to attach the rent-charge of 5,000Z. a-year in equity. Sir William Mac- Mahon said, " The rule of law is, that the freehold property of the debtor shall be liable to the demands of his judgment creditors. Lord Dillon insists that the magical operation of a voluntary deed shall clear it from all incumbrances. If the statute of uses had executed the trusts of this deed. Lord Dillon's interest would have been extendible, and the inter- position of a trust cannot exempt it in this Court " (a). His Honour's decision in favour of the judgment creditor was affirmed on appeal by Lord Manners, and afterwards, on a further appeal, by the House of Lords {b). These then were cases of a judgment creditor having a legal Tunstall v. elegit, and seeking to remove an impediment to the legal exe- ^™pp^^- cation of it ; but in Tunstall v. Trajppes (c) the elegit was, strictly and properly speaking, equitable. By an indenture of 1811, Trappes appointed an estate to the use that Davis should receive an annuity, and, subject thereto, to the use of Withy and his heirs, upon trust in the first place to secure the (o) 1 Hog. 328. (e) 3 Sim. 286 ; and see Lewis (6) 2 Bl. N. R. 239. v. Lord Zouche, 2 Sim. 388. 652 JUDGMENTS AGAINST CESTUI QUE TRUST. [CH. XXUI. S. 6. annuity, and then in trust for Trappes. In 1813 a judgment was entered up against Trappes by Sir Henry Lawson. In the beginning of the year 1814, Trappes proposed to one Cranmer, that Cranmer should pay off Davis's annuity, and several incumbrances which were prior to it, and take a mort- gage of the property for securing the advances he should thus make. On the 1st July, 1814, Cranmer paid off Davis's annuity, and took a conveyance of the legal estate from Withy to himself in fee, by way of security for the monies advanced and to be advanced. He afterwards paid off several charges prior to the annuity, and took assignments of the terms by which they were secured in the names of trustees. It was proved that Cranmer had notice of the judgment some time between the first and eleventh days of July, 1814, and with such notice had continued to make advances to a very con- siderable amount. The question was, whether Cranmer was bound by the judgment, and if bound at all, then to what extent. The Vice-Chancellor decided that Cranmer was enti- tled to priority over the judgment creditor in respect of the sums paid by him for procuring the assignments of the prior charges, and for redeeming the annuity, those incumbrances having been created, prior to the time when Cranmer had notice of the judgment; but that his claim in respect of the monies advanced by him subsequently to that period should be post- poned to the judgment. In other words, the trust estate was bound by the judgment in the hands of a purchaser with notice, where he could not protect himself under the assignment of a prior charge. The right of an elegit creditor upon an equitable interest has also since been assumed in the case of Neate v. Dulte of Marlborough (a). Doctrine as laid The present doctrines of the Court have been well expressed Leach. ^ "^ ' by Sir J. Leach. "A judgment creditor," he said, "has at law by the Statute of Frauds execution against the equitable freehold estate of the debtor in the liands of his ti'ustee (6), provided the debtor has the whole beneficial interest; but if {a) 9 Sim. 60; 3 M. & C. 407; (J) As to the operation of the and see Bennett x. Powell, 3 Drewry, Statute of Frauds, see infra, p. 664. 236. CH. XXm. S. 6.] JUDGMENTS AGAINST CESTUI QUE TEUST. 653 he lias left a partial interest only m his equitable freehold estate, the judgment creditor has no execution at law, though he may come into a court of equity, and claim there the same satisfaction out of the beneficial interest, as he would be enti- tled to at law if it were legal. Every voluntary assignee of this equitable interest of the debtor wiU be in the same situation, with respect to the claim of the judgment creditor, as the debtor himself was. Every assignee for valuable con- sideration will hold the equitable interest discharged of the claim of the judgment creditor, unless he has notice of it" (a). An estate given by A. to trustees upon trust to convert into land to be can- personaltj for the benefit of B. has iu equity all the properties lomltyMttomd of personalty, and under the old law therefore a judgment ir » Judgment, against the person to whom the proceeds of the sale were directed to be paid conferred no lien upon the proceeds. Thus in Foster v. Blackstone (b) estates were conveyed by Foster v. Black- the Duke of Marlborough to trustees in fee upon trust, if the said trustees should in their discretion think proper, but not otherwise, to raise any sum of money for satisfaction of any debts due and owing from his son the Marquis of Blandford, which the trustees should consider advisable to be paid ; and to pay the surplus, if any, of such monies as should be raised iu the lifetime of the Duke unto the Duke, and the surplus of such as should be raised after his decease unto the Marquis of Blandford ; and, subject to the trusts aforesaid, the trustees were to stand seised of the said hereditaments in trust for the said Duke for his life, and after his decease in trust for the Marqiiis in fee. After the death of the Duke the trustees converted the whole of the estate into personalty; and a creditor, whose judgment had been entered up against the Marquis of Blandford, sought to attach the trust monies in the hands of the trustees, aS bound by the judgment. Sir J. Leach said, "The creditor insists, that by force of his judgment he has a lien upon the monies produced by the sale of the trust estates ; and if the interest of the Marquis were (a) Forth v. Duke of Norfolk, 4 (5) 1 M. & K. 297 ; and see Browne Mad. 504. v. Cavendish, 1 Jones & Lat. 633, 654 JUDGMENTS AGAINST CESTUI QUE TRUST. [CH. XXni. S. G, Judgment againat vendor after contract to sell. Serjeant Hill's opinion. a vested interest in land, the creditor would be entitled ; but the creditor had no legal lien upon the trust estates, but a possible equitable lien depending upon a contingency. The trustees had a full authority to sell, and to convert the realty into personalty. If any part had been unsold by the trustees, it would have remained land, and the judgment would have attached upon it ; but it was all sold by the trustees, and the contingency which would have entitled the judgment creditor never took effect." Whether the same principle applied where a judgment was entered up against a person after he had contracted to sell was much doubted. Upon this subject we have the following opinion of Mr. Serj. Hill: — H. A. S., seised in fee of an estate, subject to his mother's jointure and to younger children's portions, con- tracted for the sale of the property in lots to different pur- chasers. After the date of the contracts, H. A. S. executed a conveyance to trustees, upon trust to convey to the different purchasers, and to invest part of the purchase money in the funds as an indemnity against the jointure and portions, and to pay the residue to himself. Subsequently to the deed of trust H. A. S. acknowledged a judgment. Mr. Serj. Hill was con- sulted on the part of the trustees, whether they would be safe in paying the money to H. A. S., as against the judgment of which they had notice, and also as against judgments, if any, of which they had no notice. The opinion was as follows : " As to the judgment of which the trustees had notice, though, to many purposes, the estate agreed to be sold is from the time of the contract the estate of the purchaser ; yet I think the vendor is not before payment of the money to be considered a mere trustee, for the estate continues his at laiv, and even in equity he has a right to detain it until payment of the purchase money; and, therefore, the judgment creditor hath a right to so much of the 'purchase money as is sufficient to satisfy the judgment; and the trustees having notice of his right ought to pay it, if the money is in their hands. As to the judg- ments, if any, of which the trustees have no notice, I thmk a court of equity will not make them pay the money over again, if they apply it according to the deed of trust, because CH. XXm. S. 6.] JUDGJIENTS AGAINST CESTUI QUE TRUST. 655 I think equity in the case of a judgment creditor, and a bond fide purchaser or a trustee without notice, will not interpose on either side, but will leave the law to take its course " (a). And Sir J. Leach appears to have concurred in this opinion, Sir J. Leach's that the vendor's interest after the contract is bound by a judgment ; for in Forth v. The Dulce of Norfolk (6), where a person had mortgaged an estate in fee, and then contracted to sell, and afterwards, before the conveyance, acknowledged a judgment. Sir J. Leach said, "An assignee for valuable consideration is discharged of the claim of the judgment creditor, unless he had notice of it before the consideration paid. If A., before the actual conveyance to him, had received notice of the judgment, then, being a purchaser of an equitable interest in a freehold estate from the debtor, and not having paid his purchase-money, he would have been equally affected with the judgment as the debtor himself; and if he had after- wards paid the whole purchase-money to the debtor, he would have still remained liable to the judgment creditor." But in a subsequent case Sir L. Shadwell said, " he should Di^um of Sir L. • • 1-111 in- 11 Shadwell. not have given the opmion which the learnea berjeant had done, for it appeared to him that from the time H. A. S. entered into binding contracts to sell the lands, he not having judg- ments against him at that time, the purchasers had a right to file a bill against him, and have the legal estate conveyed "( c). And it may be argued that if the vendor die after the contract, but before the conveyance, the purchase-money would go to the executor (d) ; and that if the contract work a notional conversion of the land into money in respect of the vendor's representatives, the same consequence ought to follow in respect of the vendor's judgment creditors. The case where A. conveys to trustees upon trust to sell for Whether in case ... „ . . 1 "-^ conveyance a Lmited purpose, as payment of mcumbrances, and to pay the upon trust to (a) Cited Forth v. Duke of Nor- pear whether the judgments were folk, 4 Mad. 506, note {a). entered up before the actual sale or (6) 4 Mad. 503. the decree for sale. (c) Lodge v. Lysehy, 4 Sim. 75 ; {cl) See Farrat v. Winterton, 5 and see Craddoch v. Piper, 14 Sim. Beav. 1 and Curr'e v. Bowyer, ib. 6, 310, where, however, it does not ap- note. 656 JUDGMENTS AGAINST CESTDI QUE TEUST. [CH. XXHI. S. 6. sell or mortgage, with power of sale, surplus proceeds are bound by a judgment. Altered state of law under 1 & 2 Vict. c. 110, s. 13. surplus to himself, and where, before sale, a judgment is entered up against A., presents stiU more difficulty than that last discussed ; as does also the case of a mortgage by A. with power of sale to the mortgagee and of a judgment entered up before sale. It is of course clear that in either case the power of giving receipts binds as against the judgment creditor, so that a purchaser from the trustee or mortgagee is not con- cerned to see that the judgments are satisfied (a); but this still leaves open the question whether the judgment was, under the old law, a lien or charge on the proceeds in the hands of the mortgagee or trustee, a point, however, which is now unkn- portant, save so far as it bears upon the present state of the law. How far the principles discussed in Foster v. Blackstone and the other cases referred to are applicable to the altered state of the law under the 1 & 2 Vict. c. 110, has not yet been settled. As between the purchaser and the judgment cre- ditor, the power of the trustee or mortgagee to give receipts remains, it is conceived, the same. But the large words of section 13 of the .1 & 2 Vict. c. 110, wlU, doubtless, in many cases, confer an equitable charge where, under the old law, the judgment would not have created a lien. Thus, where A. was entitled to an annuity secured by a covenant and an assign- ment of leaseholds in trust tp sell, it was held that A.'s interest under the deed might, under the Act, be made available for payment of a judgment debt due from her (6). So where a testator gave real estate to trustees upon trust to levy and raise, during the life of A., an annuity of 400Z., and directed the annuity to be held upon trust for the support, clothuig, and maintenance of A., the Court, having previously decided that the trust was one for the benefit of A. generally (c), held that a judgment creditor of A. was entitled to a charge on the annuity under the Act {cl). Again, where a person covenanted to l)ay A. 5000J., and that the sum should be a charge on certain (a) Lodge v. Lyseley, 4 Sim. 75 ; (c) Younr/huaband v. Gishorne, 1 Alexanders. Crosbie, 6 Ir. Eq. Eep. Coll. 400. 513. [d] S. C. 1 De Gex & Sm. 209. (6) Harris v. Davison, 15 Sim. 128. CH. XXm. S. 6.] JUDGJEENTS AGAINST CESTUI QUE TRUST. 657 land, it was held that a judgment creditor of A. was entitled to a charge on the land in respect of A.'s interest therein (a). Again, where a mortgage with power of sale was executed, and before sale a judgment was entered up against the mortgagor, who was subsequently discharged under the Insolvent Act, and after such discharge the mortgagee sold imder the power of sale, it was held that the judgment creditor was entitled to the surplus proceeds of sale (6). It is clear therefore that, in the actual state of the law and practical restdt decisions, a vendor or mortgagee holding surplus proceeds of i^P^sent state sale in his hands could not properly be advised to pay them to the settlor or mortgagor without the discharge or con- cm-rence of the judgment creditor. Neither could a purchaser, where, as in the case before Serjeant Hill, judgments have been entered up against the vendor subsequently to the con- tract, safely complete without the discharge or concurrence of the judgment creditor. If, however, the owner of an estate contract to sell, and then judgments are entered up against him, it is clear that the judgments, though they may attach at law upon the land, yet cannot affect it in equity, and therefore, if the purchase-money can be properly applied, the purchaser may compel the creditor to release the judgment, and if the legal estate at the time of the judgment was not in the vendor but in a trustee for him, the judgment cannot affect the land either at law or in equity, though it may affect the purchase-money ; and should there be any intervening incumbrances between the contract and the judgment which would exhaust the whole purchase -money, it is conceived that the purchaser might safely pay off the intervening incumbrances, and take the legal estate from the trustee. The judgment creditors in such a case, would have no legal Uen, and the purchase-money has been properly apphed. The question, how far, under the old law, the Uen of the Howmuclioftlie judgment creditor against the trust estate extended, was one ^^'^** may.te (a) Russell v. M'Culloch, \ Kay paid off, the judgment against him- & John. 313 ; and see Clare-v. Wood, ceases to hind the land. 4 Hare, 81. But hy 18 & 19 Tict. (6) Robinson v. Hedger, 13 Jur. c. 15, s. 11, when the mortgagee is 846 ; and 14 Jur. 784. 658 JUDGMENTS AGAINST CESTUI QUE TEUST. [CH. XXHI. S. 6. taken in execu- tion. On what grounds a judgment cre- ditor may apply to a court of equity. Bxecution of a moiety only of a trust estate. of considerable difficulty, and the authorities could only be reconciled by the aid of a somewhat subtle distinction. A judgment creditor might have come into a court of equity upon two grounds. First, upon a legal title, where he either sought to remove an impediment to the execution of his legal elegit, or, after the death of the conusor, sued for payment of his debt out of the conusor's personal assets, and, if they should be insufficient, then by sale (a) of the real estate : or, secondly, upon an equitable elegit, on the ground that he had no legal Uen, and therefore could have no legal process (b). As the extent of relief ought in both these cases to be the same, and the Court never attempted to take a difference, the authorities determined upon either head may be relied upon as applicable to the other. The result of the cases upon this principle, notwithstanding an early authority to the contrary (c), (a) An elegit would at law give the possession of the lands till the satisfaction of the debt, but equity assumes the jurisdiction of facilita- ting the remedy by a sale. See Barnwell v. Sarnwell, 3 Ridg. 61 ; . O'Fallon v. Dillon, 2 Sch. & Lef. 19; COorman v. Comyn, ib. 139; Stileman v. Ashdown, 2 Atk. 610 ; but see Bedford v. Leigh, 2 Dick. 709 ; Neate v. Duhe of Marlborough, 3 M. & C. 417. (6) These grounds of suit still sub- sist, in addition to that conferred by the 13th section of the 1 & 2 Vict, c. 110, giving the judgment creditor a charge in equity. (c) Compton v. Compton, cited in Stileman v. Ashdown, Amb. 15, The case as stated in the Registrar's Book, was this : Richard confessed a judgment, and died intestate. Henry, his son and heir, filed a biU against the administratrix of his father and the persons entitled to the benefit of the judgment, praying that the debt might be discharged out of his father's personal estate to the relief of the lands. Henry died, and the suit was revived by Hoby, his son and heir, and at the hear- ing it was decreed, somewhat un- accountably, that the plaintiff ahovli. pay the j udgment. Upon this Pigott, the party interested in the judgment, filed a cross-biU against the plaintiff in the former suit to have the decree carried into execution, and the Comt on the hearing made the order as before. Against this decree the plaintifi' Hoby appealed, and Lord Keeper Hareourt then directed that the personal estate of Richard should be applied in the first instance, and that Hoby should not be personally charged with the judgment debt, but shoidd make good the same so far only as any rents and profits of the real estate of Richard had come to his hands ; but in case such per- sonal estate, rents, and profits should fall short of the judgment, then the deficiency should be made good "by sale of the whole real assets of Richard liable to the judgment." (Reg. Lib. A. 1711, f. 134.) The authority of this case cannot how- ever have much weight, for, as was observed by Lord Hardwicke (Stile- man Vi Ashdown, Amb, 17), the point whether the whole or a moiety should be sold appears not to have been discussed. CH. xxrn. s. 6.] judgments against cesttji que teust., 669 was that a judgment creditor could sue an equitable elegit of a moiety only of a trust estate (a). The grounds of the doctrine were thus delivered by Lord Hardwicke in the leading case of Stileman v. Ashdown (&) : " The judgment affects the land," said his Lordship, " as it is bound by the judgment. Equity follows the law in this case, and as the plaintiff can extend only a moiety there, he shall have no more here. Suppose it was the case of a bond creditor ; he might have an action of debt against the heir, and judgment against him upon assets descended, and this he is entitled to at common law, for it is the debt of the heir, and the action is in the dehet and detinet ; but if a judgment was obtained against the ancestor, a scire, facias could not be brought against the heir at common law, because the heir was not bound. Before the Statute of Westminster, there was no remedy against the ancestor in his lifetime upon a judgment on his land ; and it is that statute which subjects one moiety thereof to the judgment. In what right then is the scire facias brought against the heir or purchaser ? Why, only as terre-tenant (c), and by virtue of the statute. I thought of the objection myself, that a bond creditor would be in a better situation than a judgment creditor ; and so he is, for as soon as the bond debt is turned (o) Stileman v. Ashdown, 2 Atk. B..1750, f. 427.); Sarnwelly. JBarn- 477, 608; Howe v. Sant, Dick. 150 well, 3 Ridg. P. C. 24; O'Dowda (as corrected from Reg. Lib., the v. O'Bowda, 2 Moll. 483; Anon. case was as follows : — Rowe, the case, ib, ; O' Gorman v. Comyn, 2 conusee of a judgment confessed by Soh. and Lef. 137 ; Burroughs v. one Dingle, deceased, filed a biU. Elton, 11 Ves. 33; Williamson v. against Bant, the executor of Dingle Parh, 2 Moll. 484 ; Armstrong v. and who was also in possession of Walker, ib. In O' Fallon v. Dillon Dingle's real estate by the double 2 Sch. and Lef. 13, the sale of the title of grantee in Dingle's lifetime estate was not confined to a moiety ; and general devisee in his will, pray- but there the creditor had entered ing payment of the judgment out up two judgments the same term, of the real and personal estate of the and then as both judgments were of testator, and that the grant to Bant the same date, the creditor might at in Dingle^s lifetime might be de- few, have taken both moieties in exe- clared void, as against the judg- oution. See Attorney- General, v. ment, for want of consideration. Andrew, Hard. 23. The personal estate proved insuffi- (J) 2 Atk. 608. eient, and thereupon the Court (c) See Sarbert's ease, 3 Re. 12 ordered a sale of one moiety of the b ; Bowyer v. Rivitt, Sir W. Jones, real estate comprised in the grant. 87 ; Dyer, 271, a pi. 25. tr TJ 2 660 JUDGMENTS AGAINST CESTUI QUE TEUST. [CH. XXm. S. 6. into a judgment, it is extinct against the ancestor, and the creditor cannot, in the lifetime of the ancestor, bring any action upon the bond : can he then bring any action against the heir after it is entirely extinct (a) ? But still he obtains a great advantage by a judgment, as it gives him an opportunity of binding the land immediately, and likewise gives him a preference over all other bond creditors; and therefore the creditor prefers this real advantage to a precarious one of assets descending upon the heir after the death of the ancestor. If this is the case at law, what is there in equity to better his case ? "Why, nothing more than to accelerate the payment by directing a sale of the moiety, and not let the judgment creditor wait till he has been paid out of the rents and profits ; but equity cannot change the rights of parties." An equity of redemption was, however, governed by a very different rule. Execution of tie If A., seised of an estate, mortgaged it to B. in fee, and then wtoleofan equity *? t ■ -i /~i • of redemption. coniessed a judgment to C, it was clear C. had a lien ■which. entitled him to redeem B. But should he redeem a whole or a moiety ? So far as the judgment creditor had any claim of his own, a moiety only ; but as B. could not be compelled to part with the smallest fraction of the estate until he had been satisfied his whole debt, C. was under the necessity of redeeming the entirety. Again, when C. had taken a transfer of the security, it followed, that as mortgagee with a judgment against the mortgagor he had a right to tack, and no one could redeem any part of the estate out of his hands until payment, not only of the original mortgage debt, but also of the judgment. Thus it arose from a kind of necessity, and not from any wanton violation of principle, that in the instance of an equity of redemption the judgment creditor was paid by a sale of the whole estate (b). (a) Sir A. Hart, aUuding to this waU, 3 Ridg. P. C. 24, and O'Gor- point, said, " The Courts have got man v. Comyn, 2 Sch. & Lef. 13", rid of Stileman v. Ashdown, as though the judgments were ^recciicd savouring too much of technicality." hy bonds, a sale of only a moiety was Leahy v. Dancer, 1 MoU. 319. directed. But Criape v. Blahe, 1 Ch. Ca. 23, (6) Sfonehewer v. Thompson, 2 had decided that the bond was ex- Atk. 440 ; Sish v. Hopkins, Blunt's tinguished by the judgment, and Amb. 793. accordingly in Sarnwall v. Barn- CH. XXHI. S. 6.] JUDGMENTS AGAINST CESTUI QUE TEUST. 661 Thus in Stileman v. Ashdown (a), Lord Hardwicke, at the same time that he gave the judgment creditor a moiety only of the trust estate, ordered a sale of the whole of the lands in mortgage (b). So, where there were several incumbrancers by judgment upon an equity of redemption, and the Court de- creed a sale, the first judgment creditor was not confined to a moiety of the estate, but the common decree was, that the incumbrancers should be paid their full demands out of the proceeds of the sale, according to their priority (c) (1). There is one species of interest which, though bordering Case of a trust closely upon the nature of an equity of redemption, yet ought gage. perhaps to be distinguished from it. In Tunstall v. Trappes (d), before cited, Trappes, iu 1811, appointed an estate to the use that Davis might receive an annuity, and, subject thereto, to the use of Withy in fee upon trust, in case the annuity should be in arrear for six months, to sell the premises, and out of the proceeds to purchase an annuity of the same amount for Davis, and pay the surplus, after discharging the existing incumbrances, to Trappes; provided, that in case Trappes should be desirous of repurchasing the annuity, and should pay the price to Davis, then the annuity should cease, and Withy, the trustee, should reconvey. In 1813 Trappes con- fessed a judgment, and the question was, whether it should affect the whole or only a moiety of the estate ; and Sir L. Shadwell, on the ground that a judgment creditor might redeem the entirety of lands in mortgage, held that the lien should extend to the whole. Now, there appears to be this distiQction between an equity of redemption and the case just mentioned. In the former, the whole interest is in the mortgagee by non-fulfilment of the condition ; and if the (a) 2 Atk. 477. (c) Sharpe v. Earl of Scarborough, (6) Sir A. Hart, not observing the 4 Ves. 538 ; the cases cited ib. 541 ; ground ofthedistinction, has charged and see Berrington v. Evans, 3 Y. Lord Hardwicke with inconsistency, & C. 384. Leahy v. Dancer, 1 Moll. 322. {d) 3 Sim. 286, see 300. (1) It has been ruled, upon a similar principle, that, where freeholds and copyholds are blended in one mortgage, the equity of redemption of the whole is liable as assets to a bond creditor, though copyholds, by themselves are not assets. Acton v. Peirce, 2 Vern. 480. 662 JUDGMENTS AGAINST CESTUI QUE TRUST. [CH. XXin. S. 6. judgment creditor redeem the mortgagee, and then the mort- gagor come to be relieved against the forfeiture, the Court will impose terms upon the mortgagor, and oblige him to discharge every lien upon the estate before he can be permitted to redeem the smallest part. But in Timstall v. Tra^ppes the whole interest was never in the annuitant either at law or in equity. The legal estate was limited to a third person in fee, and the equitable interest to the extent of securing the annuity- only was in trust for the annuitant, but as to all the residue was in trust for the grantor. There was nothing to be re- deemed, but merely a trust to be executed. The judgment creditor might take an assignment of the annuity, but he had no right to tack the judgment : the grantor could call for a reconveyance from the trustee on payment of the price agreed upon for the annuity, and the Court could impose no terms, for no favour was asked. Whether elegit Is the judgment creditor, when he comes into equity for a sued out. sale of the estate, either in the lifetime of the conusor, or after his death, obliged, before the jurisdiction of the Court can attach, to sue out an actual elegit ? If the judgment be a legal lien, and the creditor seek to remove some impediment to the legal execution of it, it is clear he must first lay a foun- dation for the interference of equity by suing out an elegit at law (a) ; and the same rule is now established even where the judgment is merely an equitable lien{b); but the elegit need not be returned (c) ; and where the trust estates were in three counties an elegit in one only was held sufficient {d). Fi. fa. sufficient When, however, the interest sought to be affected is an able chattel real, equitable chattel real, it is sufficient to sue out a writ of fieri (a) See Dillon v. Flasket, 2 Bligh, c. 110, an eleffit is not necessary, and N. R. 239; Neate y. Duke of Marl- the decree will be for sale. See borough, 3 M. & C. 407 ; Mitford on Carlon v. Farlar, 8 Beav. 525 ; Plead. 126, itli edit. Footner v. Sturgis, 6 De &. & Sm. (b) Matey. Duke of Marlborough, 736; Smith v. Surst, I CoU. 705; 9 Sim. 60 ; 3 M. & C. 407 ; but see 10 Hare, 30, Tunstall v. Trappes, 3 Sim. 286; (c) Dillon v. Plaskett, 2 BKgh, Rolleston v. Morton, 1 Conn. & N. S, 239 ; and see Campbell v. Laws. 257. But wbere the creditor Ferrall, Rep. t. Plunket, 388. sues upon the equitable charge ere- {d) Dillon v. Plaskett, 2 Bl. N. S. ated by sect. 13 of the 1 & 2 Vict. 239. CH. XXni. S. 6.] JUDGMENTS AGAINST CESTUI QUE TEUST. 663 facias {a). And when the assistance of the Court is sought in favour of a County Court judgment against an equitable chattel real, it is suf&cient to pursue the analogous step of placing a writ of execution in the hands of the high bailiff, pursuant to the County Court Act (&). Again, it seems that a judgment creditor may redeem a mort- Kedemption of a gage without suing out an elegit ; for inasmuch as the Court finds the creditor in a condition to acquire a power over the estate by suing out the writ, it does what it does in all similar cases, it gives to the party the right to come in and redeem other incumbrancers upon the property (c). And so whether the judgment be legal or equitable, if the Bill of judgment creditor file his biU after the death of the conusor for satisfaction death of conusor. of his claim out of the personal assets, and, in case of their de- ficiency, by a sale of the real estate (d), it has been held that an actual elegit is 7iot an essential requisite. The observations of Lord Fitzgibbon upon this point appear worthy of attention : " An objection," he said, " has been made at the bar, that the creditor's bUl ought not to be entertained, because he did not revive the judgmerits and sue out elegits; and it has been asserted, that until the judgment has been revived against the heir and terre-tenants of the conusee, and an elegit has been sued forth, a Court of equity will not entertain a bill against the heir and executor to levy the debt. The equity upon which bills of this nature have been entertained, is founded on the Statute of Westminster, and has been adopted no less for the ease of the creditor in levying his debt with expedition, than in mercy to the representatives of the debtor, by relieving his estate from the ruinous expense of an extent at law, and of the suits which might arise in consequence of it. It is notorious to every man of the profession, that if a scire facias to revive a judgment against the heir and terre-tenants of the conusor is put into the hands of a solicitor versed in the science of (a) Gore v. Bowser, 3 Sm. & Giff. {d) Barnwall v. Barnwall, 3 1 ; Smith v. Hurst, 10 Hare, 30. Ridg. P. C. 24 ; Neate v. Duhe of (6) Bennett v. Powell, 3 Drewry, Marlborough, 3 M. & C. 416, per 326. Lord Cotteaham. (c) Neate v. Duke of Marlborough, 3 M. & C. 416,jjerLord Cottenliam. 664 JUDGMENTS AGAINST, CESTDI QUE TEUST. [CH. XXIH. S. 6. Execution of a trust estate by elegit at law, under Statute of Frauds. Construction of the statute. accumulating costs, lie will be enabled to charge the estate with costs equal to the debt, if it be not considerable. If the terre-tenants are charged unequally with payment of the debt, it lays a ground for fresh suits between them for contribution, and if the creditor levies the debt by extending the real estate of the debtor when there is a personal fund applicable to the payment of it, this lays a ground for a suit also by the heir against the executor to have the personal estate applied to reimburse him ; and therefore it is that Courts of equity have in this country, certainly for more than a century, entertained bills in the first instance after the death of the conusor for an account of his real and personal estate, and of the sum due for principal, interest, and costs on the foot of the judgment" (a). Thus much concerning the judgment creditor's equitable remedy against a trust. We proceed now to the provision in the Statute of Frauds (6), which enabled a judgment creditor in certain cases to sue a writ of execution against an equitable estate at laiv. The 10th section enacted, that " it should be lawful for the sheriff, or other officer, to whom any writ or precept should be directed at the suit of any person upon any judgment statute or recognisance, to deliver execution unto the party in that behalf suing of all such lands and hereditaments as any other person or persons might be in any manner of wise seised or possessed in trust for the party against whom execution was so sued, like as the sheriff or other officer might or ought to have done, if the said party against whom execution should be so sued had been seised of such lands and hereditaments of such estate as they were seised of in trust for bim at the time of the said execution sued." Upon the construction of this enactment the following points were resolved : — 1. As the statute spoke only of lands, &c., of which other persons were seised (c) in trust for the debtor, it did not extend (a) Barnwall v. Barnwall, 3 Eidg. P. C. 61. (6) 29 Car. 2, c. 3. (c) In the first part of the clause are the words " seised or possessed," but afterwards, in two places, there occurs the word " seised" only. CH. XXHI. S. 6.] JUDGMENTS AGAINST CESTUI QUE TEUST. 665 to trusts of chattels real of which the legal proprietor was said not to be seised, but possessed (a). 2. An equity of redemption was not within the terms of the act (6). 3. A bare and simple trust only was intended — not one of a complicated nature, where the interests of other parties are mixed up with the debtor's title (c). 4. From the concluding words, " like as the sheriff might have done, if the cestui que trust had been seised of the estate whereof other persons be seised in trust for him at the time of the execution sued," if, after the judgment was entered up, but before actual execution, the estate had been disposed of to a purchaser, so that when execution was sued there was no trust for the debtor in esse, in that case the words of the statute had failed to provide a remedy, and the judgment creditor could not be put in possession (d). The question was much discussed whether in that case, wiether equit- though the judgment creditor could not prosecute a legal execu- ^j^ ha/whCTe^no tion, he might not subiectthe purchaser, if affected with notice, '^§^^ ^'^?,* °^,* ' o J i. ' ! tr^gt under tlie to an equitable elegit (e). It was said, that as there was no statute, execution at law and equity followed the law, the creditor was without redress ; but in this argument the principle that equity follows the law seems to be wrongly applied. A judgment binds a legal estate, and, as equity follows the law, a judgment is therefore in equity a lien upon the trust. The Statute of Frauds introduced an additional remedy by enabling the judgment creditor, in certain cases, to take legal execution of a trust. But afl&rmative statutes do not abridge the common law (/), and therefore the creation of a legal remedy in certain cases provided for by the act cannot preclude the judgment creditor from (a) jLyster v. Dolland, 3 B. C. C. 96 ; Forth v. JDuke of Norfolk,, 4 478 ; S. C.l Ves. jun. 431 ; Scott Mad. 504, per Sir J. Leaoh. V. Scholey, 8 East, 467 ; Metcalf v. {d) Hunt v. Coles, Com. 226 ; Scholey, 2 B. & P. 461. Harris v. Pugh, 4 Bing. 335. (6) Lyster v. Bolland, Scott v. (e) See 2 Vend, and Purch. 386. Metcalf V. Scholey, ubi 10th ed. ; Coote on Mortg. p. 71 ; supra ; Burdon v. Kennedy, 3 Atk. 2 Powel, Mortg. 620. 739. (/) Attorney-General-^. Andrew, (c) Doe V. Greenhill, 4 B. & Hard. 27 ; 2 Inst. 472. Aid. 684; Harris v. Booher, 4 Bing. 666 JUDGMENTS AGAINST CESTUI QUE TEUST. [CH. XXin. S. 6. prosecuting his eqmtshle elegit in other cases for which the statute has made no provision. The enactment was clearly meant to be remedial, but the doctrine contended for would impress on it a restrictive character, and convert it into a disabling statute. Lord St. Leonards observes, " The difficulty in the way of the relief would be, that no instance of it can be found after the most diligent search." The reason probably is, that judgments have only in modern times been held to bind equitable interests at all : the doctrine was certainly not established before the Statute of Frauds. But the system of trusts has from that period downwards been gradually maturing, and the principles which governed uses, and were thence transferred into trusts, have since not indeed been abandoned, but received a much more enlarged and liberal application. Now that judgments are acknowledged to be liens upon equitable interests, the consequence must necessarily follow, that a purchaser must be bound by notice of a judgment, as he would be bound by notice of any other equitable incumbrance. 1 & 2 V. c. 110. By the late Act for extending the remedies of creditors {a), it is enacted — 1. By sect. 11, That execution at law may be had under an elegit of the whole lands freehold and copyhold, of which the debtor was seised or possessed at law or in equity, or over which he had a disposing power (&), at or subsequently to the entering up of the judgment. 2. By sect. 13, That in equity a judgment shall operate as a charge upon the whole of the lands freehold and copyhold of which the debtor was seised or possessed at law or in equity, or over which he had a disposing power, at or subsequently to the entering up of the judgment, with a proviso that the creditor shall not sue until the expiration of a year from the date of the judgment (c), and that the protection in equity of purchasers for valuable con- sideration without notice shall not be disturbed. 3. By sect. (a) 1 & 2 V. 0. 110. tlement by means of the 27 Eliz. c. (6) A trust for the separate use of 4, a disposing power within the Act a married woman is not an estate of Vict. ; Beavan v. Earl of Oxford, over which she has a disposing 2 Jur. N.S. 121. power within the meaning of the (c) See Smith v. Hurst, 1 Coll. Act ; Dighy v. Irvine, 6 Ir. Eq. 705, and S. C. 10 Hare, 43 ; Mac- E,ep. 149. Neither is the power of kinnon v. Stewart, 1 Sim. N. S. 76, the settlor to defeat a voluntary set- p. 91. CH. XXm. S. 6.] JUDGMENTS AGAINST CESTUI QUE TEUST. 667 18, That decrees and orders of Courts of Equity, rules of Courts of Common Law, &c., whereby any sum of money, or any costs, charges, or expenses shall be payable to any person, shall have the effect of judgments (a). But, 4. By sect. 19, That no judgments, decrees, or orders, shall affect real estate by virtue of the act, unless and until they have been regis- tered with the senior master of the Court of Common Pleas. It is observable upon these clauses, that an equitable estate, -^^^^J^^ °° ^^^ whether of freehold or copyhold tenure, and whether of free- hold or leasehold interest, and without any restriction to the time of execution sued, as in the 10th section of the Statute of Frauds, was subjected by the Act to execution at law by writ of elegit (s. 11), and to quasi execution in equity by way of charge (s. 18). In the latter case purchasers without notice were expressly protected (s. 13), but in the former case not : a purchaser, therefore, even of an equitable interest, after the commencement of the Act, was required by this statute to search the registry at the Common Pleas for judgments entered up against the vendor ; and that whether before or subsequently to the Act, for the time of entering up the judgments was immaterial, provided they had been registered. It may be thought anomalous and inconsistent that a purchaser should not be protected at law by want of notice, while he was in equity ; but the intention of the legislature probably was, in giving a remedy both at law and in equity, not to disturb the ■principles upon which the respective Courts acted ; and there- fore if the trust was a plain one, and so amenable to a legal elegit, the judgment creditor might take the lands in execution even against a purchaser without notice ; but if the trust was so complicated as to oblige him to apply to a Court of equity, and treat the judgment as a charge, the Court by the Act was not to disregard its established rules, but, as in all other cases, was to protect a purchaser without notice. (o) A decree for an account merely 11 Ad. & EU. 175; DoeY. Amey, is not within the section; Chad- 8M. feW. 565; though, as respects vjick V. Holt, 2 Jur. N. S. 918. costs, the case is different ; Jones y. Neither is a rule of a Court of Com- Williams, 8 M. & W. 349 ; JDoe v. mon Law which does not specify the Barrett, 10 Q,. B. Rep. 565. sum to be paid ; Jones v. Williams, 668 JUDGMENTS AGAINST CESTUI QUE TRUST. [CH. XXm. S. 6. 2&3T.C. 11. Afterwards another statute was passed (2 & 3 V. c. 11), hy which it was enacted, — 1. By section 2, that no judgment what- soever should affect any lands, tenements, or hereditaments as to purchasers, mortgagees, or creditors, unless previously regis- tered at the Common Pleas, according to the provisions of the act 1 & 2 V.c. 110. 2. By section 4, that all judgments, decrees, rules, and orders, registered, or to he registered, at the Common Pleas according to the provisions of the Act 1 & 2 V. c. 110, should, at the expiration of five years, be nuU and void against lands, tenements, and hereditaments, as to purchasers, mortgagees, or creditors {a), unless they should have again been registered in the Common Pleas within five years before the right, title, estate, or interest of such purchasers, mortgagees, or creditors accrued (&). 3. By section 5, that as against purchasers and mortgagees without notice, no judg- ment, decree, or order, should have a greater effect than a judgment would have had against such purchaser or mortgagee before the passing of 1 & 2 V. c. 110. By virtue of these clauses the execution that might under the former statute have been taken out at law against an equitable interest in the hands of a purchaser without notice was, in common with every other advantage given by the former statute against such purchaser, recalled (c), and a purchaser was not required to carry his search back beyond the period of five years. Old law still A singular result of the 5th section is, that in the occasional, case of purchase though rarely occurring cases of a purchase or mortgage notlf!'^'^^'""'^ without notice of a previously registered judgment, the old law, as it existed before the 1 & 2 Vict. c. 110, must be resorted to for guidance. It is therefore impossible to treat the old law respecting judgments as obsolete. 3 & 4 T. u. 82. This Act, however, still left open the question whether by analogy to the cases under the Eegistry Acts a purchaser, mortgagee, or creditor, if he had actual notice of an unregistered (a) These words mean purchasers, priority over B. ; Seavan v. Lord &o., becoming such, after the omis- Oxford, 1 Jur. N. S. 1121 ; and see sion tore-register, so that, if A. & B, Simpson v. Morley, 1 Kay & J. 71. be respectively first and second judg- (6) And see 18 & 19 Vict. o. 15, ment creditors who both duly regis- s. 6. ter, A. does not, by subsequently (c) Westbrook v. Blythe, 3 Ell. & omitting to re-register, lose his Bl. 737. CH. XXm. S. 6.J JTTDGMENTS AGAINST CESTUI QUE TRUST. 669 judgment, was not bound by it ; and a subsequent Act, 8 & 4 V. c. 82, was passed to obviate tbis objection. It was thereby enacted, by the second section, that no judgment, decree, order, or rule should, hy virtue of the said Act (1 & 2 V. c. 110), affect any lands at law or in equity as to purchasers, mortgagees, or creditors, until registration (a) under the said Act at the Common Pleas, any notice of such judgment, decree, order, or rule to any such purchaser, mortgagee, or creditor, in any\vise notwithstanding. It being, however, doubted whether this Act protected a 18 & 19 V. c 15. purchaser, mortgagee, or creditor from the effect of notice as to any remedy against him which the judgment creditor had before, independently of the 1 & 2 V. c. 110, or whether its effect was not limited to protection against the additional remedy given to the judgment creditor by that Act (6), it was in order to obviate this inconvenience, enacted generally, by the 18 & 19 V. c. 15, s. 4, that no judgment, decree, &c., which might be registered under the 1 & 2 Vict. c. 110, should affect any lands, &c. at law or in equity, as to purchasers, mortgagees, or creditors, unless and until the memorandum, &c. should have been left with the proper officer, any notice of any such judgment, decree, &c., to any such purchaser, mort- gagee, or creditor, in any wise notwithstanding. It has been held under the Acts extending the remedies of Constmction of 1 • 1 T 1 ■ n ■ 1 ^'^® Acts. the judgment creditor, that as to equitable interests they are to receive the same construction as the Statute of Frauds, and consequently that simple trusts only can be taken in execution at law (c). The 14th section of the 1 & 2 Vict, introducing a new Consideration of species of execution against stock and shares in public funds Order provisions and public companies, deserves a separate consideration. By °^^^^q^ & 2 t. that section it was enacted that if any person against whom (a) The framer of this Act appears notice. This doubt is now set at either to have overlooked, or to have rest hy sect. 5 of the 18 & 19 Vict, been ignorant of the intermediate Act e. 15. of 2 & 3 Vict. c. 11, and to have left (J) See Beere v. Head, 3 Jo. & it doubtful whether re-registration Lat. 340. ■within five years was necessary to (c) Dighy v. Irvine, 6 Ir. Eq. exclude the title of a purchaser with Rep. 149. 670 JUDGMENTS AGAINST CESTUI QUE TRUST. [CH. XXIH. S. 6, By whom charging order should be made. Charging order ■will be made at law -without deciding the quavMmi of interest charged. any judgment (a) should have been entered up in any of Her Majesty's superior courts at Westminster, should have any Government stock, funds, or annuities, or any stock or shares of or in any company in England, standing in his name in his own right, or in the name of any person in trust for him (6), it should be lawful for the Judge of one of the superior courts, on the application of any judgment creditor, to order that such stock, dc, should stand charged with the payment of the amount for which judgment should have been recovered, and such order should entitle the judgment creditor to all such remedies as he would have been entitled to if such charges had been made in his favour by the judgment debtor, pro- vided that no proceedings should be taken to have the benefit of such charge until after the expiration of sis calendar months from the date of such order ; and by the next follow- ing section of the Act it is provided that the order of the Judge shall be ex parte in the first instance, and on notice to the Bank or company shall operate as a distringas, and that no disposition of the judgment debtor in the mean time shall be valid as against the judgment creditor. The leading points decided and discussed with reference to this new species of execution will be shortly adverted to. 1. In the ordinary case of a judgment at law, the application for the charging order must be made to one of the Common Law Judges, even though the stock to be charged be standing in the name of the Accountant-General of the Court of Chan- cery (c). But where a charging order is to be made in fur- therance of a decree of the Court of Chancery, it wiU properly be made by a Judge of the Court of Chancery {d). 3. Where stock or funds are vested in trustees, and a judg- ment debtor appears to be interested therein, the charging order will be made at law, so as to affect the interest of the judgment debtor, whatever it may be, leaving it to the trustees, [a] Extended to Decrees, &o., by sect. 18. (i) By the 3 & 4 Viet. c. 82, s. 1, the property intended to be em- braced by this section is further defined. (c) Hulkes V. Day, 10 Sim. 41. [d) Stanley v. Bond, 7 Beav. 386 ; Westhy V. TFestby, 5 De G. & Sm. 516. CH. XXni. S. 6.1 JUDGMENTS AGAINST CESTUI QUE TRUST. 671 if the precise amount of the debtor's interest is not sufficiently defined, to say they will not act except under the direction of the Court of Chancery (a). 3. Where a chareins order is made upon the partial interest Bank or public _ . company bound of a cestui que trust in stock or shares, the Bank or public to pay to trustee, company whose stock or shares are affected by the charging charging order^ order, is not concerned with questions arising between the on interest of ' . . cestm. que trust. judgment creditor and other persons interested in the trust fund, but is bound, in like manner as before the charging order, to pay the dividends to the trustees (6). 4. The proviso at the end of the 14th section, forbidding Proviso at the proceedings until after six calendar months, applies only to does not foi-bid proceedings for enforcing immediate payment of the debt by i™*interest*of'' realising the security, and does not prevent the judgment ere- judgment creditor. ditor from taking steps to prevent the security given him by the statute from being in the mean time defeated or diminished. Thus, where the funds are standing in the name of the Ac- countant-General, the judgment creditor may, within the six months, apply for a stop order to restrain the debtor from receiving dividends accruing within the six months (c). 5. The question as to the precise effect of the charge As to effect of obtained under a charging order, in reference to the claims of jj^reference'to^ other incumbrancers on the trust fund, has been the subject °^'^^^ incum- brances. of much difference of opinion. In a late case, where stock was vested in trustees, and A., having a beneficial interest therein, charged that interest in favour of B., and subse- quently C. recovered judgment against A., obtained a charging order on A.'s interest, and, before any notice given by B., gave notice to the trustees of his having obtained the charging order, it was held by three Judges of the Court of Queen's Benchj Lord Campbell, C.J., Wightman & Crompton, JJ., (Erie, J., dissentiente), that C, the judgment creditor, was entitled to priority over B. (d). This decision has been much criticised. It is opposed to the analogous decisions on the (a) Fowler Y. Churchill, 11 M. & Qoi.3'12; and see Bristedr.Wilkins, W. 57. 3 Hare, 235. (J) Churchillv. Bank of England, {d) Watts y. Porter, 3 'Ell & Bh 11 M. & W. 323. 743. (c) Watts V. Jefferyes, 3 Mao. & era JUDGMENTS AGAINST CESTUI QUE TRUST. [CH. XXHI. S. 6. Case of lands lying in a register county. Judgment postponed to subsequent purchase or mortgage without notice, unless registered hoth in County Register and at the Common Fleas. Case where subsequent purchaser or mortgagee has notice. 11th and 13th sections of the Act (a), and it may safely be said, in the words of high legal authority, that the opinion of the single Judge seems to be the correct one (6). The law as to priority of judgments in the case of lands lying in a register county is, by the combined effects of the County Eegistry Acts and of the Acts of the Queen before referred to, in a singular position. It is clearly settled that the County Eegister Acts are stOl in force, and consequently that, in order to give priority to a judgment creditor over a subsequent purchaser or mortgagee without notice, his judgment must be registered both in the County Eegister and in the Common Pleas, before the com- pletion of the purchase or mortgage (c). And as between two judgraent creditors, having no notice of each other's claim, the one who first completes .his registry in both the County Eegistry and the Common Pleas, obtains precedence (d). Where the subsequent purchaser or mortgagee has notice of a prior judgment, the question will be, whether the' judgment was registered at the Common Pleas before the completion of the purchase or mortgage, since, as we have before seen, unless so registered it cannot bind, notwithstanding the notice. But if duly registered in the Common ^Pleas, then, according to the old decisions, notice to the purchaser or mortgagee will, in equity, though not at law, supply the want of regis- tration in the county (e). It is difficult, however, to reconcile the expressions with reference to this subject contained in a late judgment of the present Lord Chancellor (when Vice Chancellor) with the older cases (/). (a) WTiitzvorthy. Gaugain, 3 Hare, 416, 1 Phil. 728 ; Beavan v. Earl of Oxford, 2 Jur. N. S. 121. (6) Vead. and Pur., 13tli edit. p. 430, note (I). (c) Westbrook v. JBlythe, 3 Ell. & Bl. 737. (d) Hughes v. Lurrdey, 4 Ell. & Bl. 274. (e) Tunstall v. Trappes, 3 Sim. 301 ; Bavis v. Earl of Strathmore, 16 Yes. 427. (/) Johnson v. Holdsworth, 1 Sim. N. S. 106. OH. XXni. S. 7.] EXTENTS AGAINST CESTUI QUE TRUST. 673 SECTION VII. OE EXTENTS FBOM THE CKOWN. A trust, -whetlier of a term or of a freehold, is liable to an Extent binds a extent from the crown (a) ; and this not by the effect of any ™^ " legislative enactment, but per cursum scaccarii at common law (6). The words of the writ issued to the sheriff are to hold inquest of the lands whereof the debtor, not seisitus fuit, but habuit vel seisitus fuit, and a person may be said to have lands, when by subpoena in Chancery he may exercise any dominion over them (c). At common law the extent of- the Crown did not authorise Sale of the lands a sale of the lands, but only the perception of the rents and profits, until the amount of the debt was levied [d) ; this defect was supplied partially by a statute of Elizabeth (e), and more effectually by the 25 G. 3, c. 35. It is by the latter statute enacted, that "it shall be lawful for His Ma- jesty's Court of Exchequer, and the same Court is thereby authorised, on the application of His Majesty's Attorney- General (J) in a summary way by motion {g) to the same Court, to order that the right, title, estate, and interest of any debtor to His Majesty, his heirs and successors, and the right, title, estate, and interest of the heirs and assigns of such debtor, which have been or shall be extended under and by virtue of any extent or diem clausit extremum, shall be sold as the Court shall direct, and the conveyance shall be made by His Majesty's Eemembrancer in the said Court of Exchequer or his deputy, (a) King v. Lamhe, M'Clel. 422, (c) See Sir E. Coke's case, Godb. per Sir W. Alexander; Chirion's 294. case, Dyer, 160 a; S. C. cited Sir {d) Sex v. Blunt, 2 Y. & J. 122, J3. Coke's case, Godb. 293 ; the per Baroa HuUock. cases cited Id. 294; Id. 298 ; Bah- (e) 13 Eliz. c. 4. ington's case, cited Id. 299 ; King v. (/) See Bex ,v. Bulketey, 1 Y. & iSmiW, Vend. & Puicb. Append. No. J. 256. XV. lltli ed., per Ch. Baron Mao- {g) See Bex r. Blunt, 2 Y. & J. donald. 120. (6) Attorney- General y. Sands, Hard. 495, per Lord Hale. X X g74 FOEFEITUKE OF A TKUST. [CU. XXXU. S. 8- under the direction of the said Coui-t, by a deed of bai-gain and sale to be inrolled in the said Coui-t." Equity of re- By the effect of this enactment, a tnist or equity of redemp- demption. ^^^ ^^^ ^^ ^ Crown debtor may now be sold upon summai7 application to the Court of Exchequer by motion. SECTION YIII. OF POETEITTTEE. Trust Dot forfeit- A trust of lands is not forfeitable at common law for kwfolatSer. attainder either of treason or felony (6); for forfeiture works ojily upon tenure, and a trust is holclen of nobody. The ground of the forfeiture is, that all estates are upon con- dition of duty and fideUty to the lord, and upon breach of allegiance they return to the king, from whom they originally proceeded (c). 26 H. 8 c. 13. The exemption of the use from forfeiture was remedied in the case of treason, by the 26 H. 8. c. 13, s. 5, whereby it was enacted, that "every offender convicted of high ti-eason by presentment, confession, or process of outlawry, according to the due course and custom of the common laws of the realm, should forfeit to the King all such lands, &c. which such offender should have of any estate of inheritance in use or possession." 27 H. s. The following year was passed the 'Zl H. 8. by which uses were abolished, and, as the trust which gTew up in the place of the use was held to be an interest sui generis, and not within reach of the statutes directed against uses, the legislature was again called upon to interpose some speci;d enactment to remedy the defect. 33 H. 8, c. 20. The 33 H. 8. c. 20, s. 2, declai-ed, that "if any person or persons should be attainted of high ti'eason by the course of the common laws or statutes of the realm, every such attainder (a) King v. Be la Motte, Forr. Hard. 495, ^jcr Lord Hale ; 1 Hale's 162. P. C. 247 ; Jenk. 190. (J) Attorney- General v. Sands, (c) Gilb. on Uses, 38, CH. XXIII. S. 8.] FORFEITURE OP A TRUST. 675 by the common law (a) should be of as good strength, value, force, and effect, as if it had been done by authority of par- liament ; and that the King's Majesty, his heirs and successors, should have as much benefit and advantage by such attainder, as well of uses, rights, entries, conditions, as possessions, rever- sions, remainders, and all other things, as if it had been done and declared by authority of Parliament, and should be deemed and adjudged in actual and real possession of the lands, tene- ments, hereditaments, uses, goods, chattels, and all other things of the offenders so attainted, which his highness ought lawfully to have, and which they, so being attainted, ought or might lawfully lose and forfeit, if the attainder had been done by authority of Parliament, without any office or inquisition to be found of the same." Notwithstanding this statute, it was held in King v. Dae- y^^ ^ ^^^_ combe (&), and is said to have been also resolved in Abington's ^ombe. case, that the trust of a freehold was not forfeited upon attainder of treason ; and it has been remarked, that this doctrine " may be thought to be founded on reason, because it is not pre- tended that the statute of 26 H. 8 can embrace trusts which have succeeded to uses, and it does not appear to have been the intention of the 33 H. 8 to create a forfeiture of any equitable estates which has sprung up since the former act. The statute had other objects (c)." To understand the scope of the enactment it must be ob- construction of served, — 1. That previously to the 33 H. 8 it was only in the ^^ ^- ^• case of a person attainted by act of parliament, and then by a special proviso, that the King was put in immediate possession of the offender's lands, for in attainders by ordinary course of law, whether by common law or under a statute, the king was not in possession until office found. 2. That the 26 H. 8 had extended the forfeiture to lands in use or possession, but not to rights, entries, or conditions; and now that the 27 H. 8 had passed, the 26 H. 8 was not even applicable to uses, or, as they were henceforth to be called, trusts. 3. That the {a) This includes the general (J) Cro. Jac. 512. statutes of the realm, as opposed (c) Gilb. on Uses, by Lord St. to a special act attainting a parti- Leonards, 78, note 9 ; and see £ur- cular individual. c/ess, v. Wlieaie, 1 Ed. 221. X y 2 670 FORFEITUEE OF A TRUST. [cii. XXIII. S. 8, 26 H. 8 had embraced attainders by presentment, confession, verdict, or process of outlawry, but had omitted other cases, as where the offender stood mute. The intention of the legis- lature then, in passing the 33 H. 8, was, as resolved in Dowtie's case (a), — 1. To vest the actual possession in the King by the attainder without office ; 2. To extend the forfeiture to rights, entries, conditions, &c., which had hitherto not been affected by attainder ; and, 3. To apply the statutory provisions to all cases of attainder, including those which the 26 H. 8 had accidentally omitted. Assuming the act to have had a remedial scope, can it be supposed, that, when " rights, entries, and conditions," were, for the first time, made forfeitable by virtue of this enactment, the word " uses," which occupies the first place in the series, should have been inserted as mere surplusage, remembering that uses, by having been turned into possessions by the 27 H. 8, had escaped the forfeiture imposed upon them by the 26 H. 8 ? The insertion of the word " uses " can be no argu- ment that " trusts " were not intended, for at that day " uses " and " trusts " were not as now contradistinguished, but were employed indifferently, as terms perfectly synonymous. In support of this reasoning may be cited the opinions ex- pressed by Baron Turner and Lord Hale, in the well-con- sidered case of Attorney-General v. Sands (&). And Lord Hale afterwards recurs to the subject in his Pleas of the Crown (c), and argues the point there with considerable strength of reasoning : — " By the statute of 27 H. 8.," he says, " all uses were drowned in the land ; but there have succeeded certain equitable interests called trusts, which differ not in sub- stance from uses ; nay, by that very statute they come under the same name, viz., uses or trusts. By the statute 33 H. 8, there is a special clause that the person attainted shall forfeit all ' uses ;' and what other uses there could be at the making of the statute 33 H. 8, but only trusts such as are now in practice and retained in Chancery, I know not. It was agreed in the Earl of Somerset's case, and so resolved (a) 3 Ee. 9, b. (c) 1 P. C. 248. (6) Hard. 495; S. C. Nels. 131; 8. C. Freem. 130. CH. XXIII. S. 8.] FORFEITURE OF A TRUST. 677 in Abington's case, that a trust of a freehold was not forfeited by attainder of treason. But how this resolution in AUngtons case can stand with the statute of 33 H. 8, I see not ; for certainly the uses there mentioned could be no other than trusts; and therefore the equity or trust itself, in cases of attainder of treason, seems forfeited by the statute, though possibly the land itself be not in the King (a)." Equities of redemption appear to be forfeitable for attainder Whether equities of treason under the 33 H. 8 (6) ; for the statute has enumer- sutject to for- ated conditions, and the interest of the mortgagor is a condition '^""'^^• which, though broken at law, is saved whole to him in a court of equity. A trust in favour of an alien is forfeitable to the Crown Trust in favour without statute on the principle of public policy ; for at law an alien has no capacity to purchase lands, lest the realm should be impoverished, if the revenues might be transported into foreign countries, and put in subjection under a foreign prince (c) ; and if an alien were allowed to receive the rents and profits of lands in equity, the mischief would be the same. However, the legal estate is not forfeited, but the King must prosecute his right by subpoena in the Court of Chan- cery {d) : and this he may do without any office found or inquisition taken (e). Trusts of chattels, whether real or personal, were always Trusts of deemed forfeitable to the Crown (/) ; and if a term be in trust for the wife of the felon, but not for her separate use, it seems the trust shall be affected by the forfeiture of the husband (g). But in these cases the forfeiture reaches not to the chattel {a) In Attorney -General Y. Sands [d] Attorney- General v. Sands, it was laid down, according to Nel- Hard. 495, per Lord Hale, son's report (p. 131), that tlie estate (e) Burgess v. Wheate, 1 Ed. 187, was executed in the Eing by force per Sir T. Clarke. of the statute ; but, according to (/) Wikes's case, Lane, 54, agreed; JFreeman (p. 130), that the estate King v. Daccomhe, Cro. Jao. 512 ; was to be executed in the King by Jenk. 190, case 92 ; Attorney- Gene- a court of equity. Id. qu. ral v. Sands, Hard. 405 ; Pawlett {b) Anon, case, cited Meeve v. y. Attorney -General, 'R.aidi.'^&l, per Attorney- General, 2 Atk. 223. Lord Hale ; Sir J. Back's case cited (c) See Holland's case, Styl. 21 ; Holland's case, Al. 16. Collingwood v. Pace, 0. Bridg. {g) Wikes's case. Lane, 54, per 431. Barons Snig and Altham, 678 ESCHEAT. [CH. xxin. S. 9. Of forfeiture by equitable tenant for life. itself, but merely entitles the King to sue a subpoena in equity (a). At law a tenant for life may, by certain tortious acts, as by a feoffment of the fee-simple, forfeit his estate to the remainder- man (6) ; but if an equitable tenant for life affect to dispose of the equitable fee, no forfeiture is incurred, for nothing passes beyond the grantor's actual interest (c). SECTION IX. Trust not sub- ject to escheat. Wheate. OF ESCHEAT. A trust in fee of lands is not subject to escheat (d). This was determined in the great case of Burgess v. Wheate (e), before Lord Northington, assisted by Lord Mansfield and Sir T. Clarke. The arguments of these eminent judges, too long for insertion in this place, are replete with learning, and will amply repay a very careful perusal : it must be mentioned, however, that Sir T. Clarke and Lord Mansfield, while they pursued different lines of reasoning, carried their principles to too great an excess. Sir Thomas Clarke contended that trusts must be governed strictly by uses, and, therefore, as no escheat in equity was of a use, there could be none of a trust. But this position is too large ; for trusts do not follow absolutely the law of uses : for then no curtesy would be of a trust, the judgment creditor would have no lien, and equitable interests would not be assets. Lord Mansfield, on the other hand' advanced the doctrine, that, as lands escheat at law, so trusts must escheat in equity ; that trusts, since the statute of H. 8, are not regulated by uses, but the maxim is, " Equity follows law," — " The trust is the estate." But to this it must be answered, that a trust has always been recognised as a thing (a) Holland's case, Al. 14 ; Sir J. Dack's case as cited by EoUe, J. Id, 16; Attorney ■■ General v. Sands, Hard. 495, per Lord Hale ; and see Kildare v. Eustace, 2 Ch. Ca. 188; S. C. 1 Vern. 405, 419, 423, 428, 437. (b) See Co. Lit. 251 a. (c) Lethieullier v. Tracy, 3 Atk, 728, 730; Lady Whetstone, v. Bury, 2 P. W. 146. {d) Attorney-General v. Sands, Hard. 488 ; and see 1 Harg. Jurid. Exero. 383. (e) 1 Ed. 176 ; S. C. 1 W. Black, 123, CH. XXIII. S. 9.] ESCHEAT. 679 mi generis, not as identical with the legal fee : it binds not, for instance, a purchaser for valuable consideration without notice. The intermediate opinions of Lord Northington are to be regarded as those most in accordance with the general system: trusts, he thought, were to be administered on the footing of uses ; but not, as Sir Thomas Clarke maintained, to the exclusion of the improvements adopted subsequently to the statute of H. 8 : he agreed with Lord Mansfield, that trusts imitated the legal possession ; but he added the quali- fication, as betiveeii the privies to the trust only, and not as respected strangers. "Equity," he said, "follows the law; and, as hetween the cestui que trust and those claiming by, from, and under him, it is equity that he should be considered as formally possessed of that estate of which he is and appears substantial owner. It is true this Court has considered trusts, as betiveen the trustee, cestui que trust, and those claiming tinder them, as imitating the possession ; but it would be a bold stride, and, in my opinion, a dangerous conclusion, to say, therefore, this Court has considered the creation of a trust as a mere nullity, and the estate in all respects the same as if it still continued in the seisin of the creator of the trust or the person entitled to it. My objection to the claim of the lord is, that it is for the execution of a trust that does not exist. Where there is a trust, it should be considered in this Court as the real estate between the cestui que trust, and the trustee, and all claiming by or under them ; and the trustee should take no beneficial interest that the cestui que trust can enjoy ; but, for my own part, I know no instance where this Court ever per- mitted the creation of a trust to affect the right of a third (a)." The determination in Burgess v. Wheate has been followed in more recent cases (&), and the principles there laid down have been held by the present Master of the Eolls to apply to the case of a mortgage in fee, and the subsequent death of the mortgagor intestate, his Honor deciding that in such case the equity of redemption does not escheat to the Crown, but belongs to the mortgagee, subject to the debts (c). {a) 1 Ed. 250. 3 De G. & Sm, 394 ; Coxy. Parker, (b) Taylor v. Haygarth, 14 Sim. 22 Beav. 168. 16 ; Davall v, Hew Miver Company, (c) 5eafev.'S'?/mo»rfs,16Beav.406. 680 DESCENT OF A TEXJST. [CH. XXm, S. 10. SECTION X. Seisin ex parte matemA. THE DESCENT OP THE TBUST. A trust is governed by the same rules of descent as the legal estate is on which the trust is ingrafted, and that whether the legal estate descends according to the course of common law, or is subject to a lex loci. If one seised of land ex parte maternd convey to a person upon trust, and no trust is expressed, the resulting interest is part of the original estate, and will descend in the maternal line, and, failing the heirs on the part of the mother, will rather absolutely determine, than pass into the paternal line (a). But if one seised ex parte matenia devise to A. and his hens upon trust for a person for life, and then in trust to convey to the testator's heir at law, this breaks the descent, and the heir ex parte paternd is entitled to the equitable remainder (6). If the land be subject to gavelkind, borough English, or other custom, the equitable interest will follow the same course of inheritance (c). And a trust of copyholds as well as of freeholds is governed by the descent of the legal estate {d). Possessio fratris. The analogy to law is so strictly preserved, that if the last cestui que trust had no seisin of the equitable estate corre- sponding to possessio fratris at law, the trust will descend to the brother of the half blood, not to the sister of the whole blood (e). But, by the late Act, the half blood is now capable of inheriting estates, whether legal or equitable (/). Proceeds from If a Settlement contain a power of sale, with a trust to Gavelkind. Copyholds. (a) Burgess v. Wheate, 1 Ed. 177, see 186, 216, 256; Langleyy. Sneycl, 1 Sim. & Stu. 45. (J) Davis V. Kirh, 2 Kay & John. 391. (c) Fawcett v. Zowther, 2 Ves. 304, per Lord Hardwicke ; Banks v. Sutton, 2 P. W. 713, per Sir J. Jekyll ; Jones v. Eeashic, 22 Vin. Ah. 185. pi. 7. {cl) Trash v. Wood, 4 M. & Cr. 324. (e) Banks v. Sutton, 2 P. W. 713, per Sir J. JekyU ; Cowper v. Earl Cowper, lb, 736, per eundem ; Cunningliam v. Moody, 1 Ves. 174 ; Co. Lit. 14 b ; and see the oases cited Cashorne v. Searfe, 1 Atk. 604. (/) 3 & 4 "W. 4, c. 106, s. 9. CH. XXIII. S. 11.] A TETJST AS ASSETS. 681 reinvest the proceeds in a purchase to the same uses, and the sale of gavel- lands be sold, but the proceeds be not reinvested, though the bulk of the estate sold was of gavelkind tenure, yet if one of the uses be to A. and his heirs, the proceeds of the sale will descend to the heirs of A. at common law, and not to the heirs by the custom of gavelkind (a). And if gavelkind lands be limited to a person's heirs as Limitation to purchasers the common law heii'S and not the customary heirs chaseix ^"'^" are entitled ; as where a testator directed trustees to stand seised of gavelkind lands for the separate use of A. for life, and so as her husband should not intermeddle therewith, and after her death upon trust to convey to the heirs of her body for ever. Lord Hardwicke held that the trust was executory, and that the Court must therefore look to the intention, which was to give a life-estate to A., and the remainder to the heirs as purchasers ; for, as the husband was not to intermeddle therewith, his curtesy was to be excluded, which would not be the case if A. were tenant in tail. A conveyance of the legal estate was therefore directed to the eldest son and the heirs of his body, with remainder to the second son, and the heirs of his body, &c. " Not," added Lord Hardwicke, " according to the custom of gavelldnd, because it must go according to the rule of common law, being not a trust executed, but executory " (&). SECTION XI. OF ASSETS. The trust of a chattel was always accounted assets in Trusts of chat- equity (c). tels are assets. But whether the trust of a freehold should be assets in the Trust of a free- hands of the heir for payment of debts by specialty was for a ^°^^' long time vexata qucestio. On the one hand it was argued. (a) Hougham v. Sandys, 2 Sim. (c) Attorney- General v. Sands, 95, see 153. Freem. 131 ; Barthrop v. West, (6) Roherts v. Dixwell, 1 Atk, 2 Ch. Re. 62 ; Duhe of Norfolk's 607 ; and see Thorp v. Owen, 2 Sm. case, 3 Ch. Ca. 10. & Giff. 90. 683 A TRUST AS ASSETS. [CH. xxrn. s. 11. that the trust ought to follow the use, and that the use was not liable to a bond creditor ; on the other hand it was said, that the trust since the Statute of Uses had been conducted by the Courts on more liberal principles, and, as the legal fee was available to the discharge of specialty debts at law, so a Court of equity ought to adopt the same rule in the administration of trusts. Bennet v. Box. It was determined by Lord Hale, Chief Justice Hyde, and Justice Windham, in the case of Bennet v. Box, that a trust in fee should not be assets (a) ; and Lord Keeper Bridgman after- wards felt himself bound by the authority of this decision in respect of a trust (b), though he doubted somewhat as to an equity of redemption (c) ; and so the law as to a trust was laid down by Lord Hale in Attorney-General v. Sands (d). Grey v. Coiriie. The question was renewed before Lord Nottingham in the case of Gi'ey v. Colvile (e). John Colvile gave a bond to Lady Grey for 1500?., and died intestate. The obligor in his life- time had purchased lands in the names of himself and Wise, to hold to them for their lives, remainder to Sir John and his heirs, and other lands in the names of Morris and Saunders in trust for Sir John in fee. Lady Grey brought an action at law against the heir, who (the case occurring prior to the Statute of Frauds) pleaded riens per descent in prasenti, but only the reversion of the lands expectant on the decease of Wise. Lady Grey then filed a bill in Chancery to have the trust estates declared assets in equity, and Lord Nottingham, acting on the broad rule of analogy to law, decreed the debt to be paid. The case was afterwards reheard before Lord Guild- ford, and is reported by Vernon under the title of Creed v. (o) 1 Ch. Ca. 12. (6) PraU v. Colt, 1 Ch. Ca. 128 ; S. C. Freem. 139. (c) Trevor v. Perryor, 1 Ch. Ca. 148. {d) Hard. 490 ; S. C. Freem. 131; S. C. Nels. 134. (e) 2 Ch. Ee. 143. This case has been the most unfortunately reported of any perhaps in the hooks. In p. 143, for ''the defendant's wife," read " the defendant Wise ;" and a few lines after, for " wife," read "Wise." In page 144, for " Colvile and his wife," read " Col- vile and Wise ;" for " of one lease," read " of one Leke," and correct the passage thus: "The said Josiaalso insists, that the premises are incum- bered by a former judgment of one Leke for 800Z., and that the plain- tiff's creditors, and other the ore- CH. XXm. S. 11.] A TRUST AS ASSETS. 683 Covile (a). The plaintiff argued that Bennet v. Box was a pre- cedent of the Judges' making, who were for restraining the Court of Chancery to the strict rules of law ; that the trust of a term was assets, and why not the trust of a fee-simple ; an equity of redemption was assets, and why not a trust ? But Lord Guildford said, " I know the case of Bennet v. Box has had hard words given it, and been much railed at, but the decree in that cause was made upon great advice, and I do not know how I could be better advised now." And he said, "There was a difference between the case of an heir and the case of an executor, and therefore the trust of a term and the trust of an inheritance were not the same in this point; for whatever money came to the hands of an executor, either by sale of the term, or if money was decreed to him in a court of equity, would be assets ; but if an heir before action brought sold and aliened the assets, the money was not liable in his hands (&), unless the sale were with fraud and collusion ; as, if an heir sold and bought again, there the new-purchased lands would be assets. And as to an equity of redemption, if a man had a mortgage and a bond, before the mortgage should be redeemed by the heir the bond ought to be satisfied, but he did not know that an equity of redemption should be assets in equity to cdl creditors." And his Lordship said, he " should be much governed by the case of Bennet v. Box, unless they could show that the latter precedents had been otherwise," and directed them to attend him with precedents towards the latter end of the term. The cause was brought on again the December following, and the Court ordered that the parties should attend the two Chief Justices and the Lord Chief Baron, who were desired to certify their opinion on the question (c). In Michaelmas term the next year, upon the motion of the defendants, it was ordered, that, unless plaintiffs, the creditors, procured the certificate of the Lord Chief Justices' and Lord Chief Baron's opinion by the first day of the next term, the ditora, &o., insist they are oredi- (a) 1 Vern. 172. tors," &c. In page 145, for " the (6) Since made liable hy 3 W. defendant's wife," read " the defend- & M. o. 14. ant Wise." (c) R. L. 1683, A. fol. 166. 684 A TETJST AS ASSETS. [CH. XXIII. S. 11. Statute of Frauds. Construction of the act, Equity of re- demption since the act. bill should be dismissed without further motion {a). No further proceedings appear in the cause; and, therefore, it must he concluded, Lord Nottingham's decision was reversed (6). Thus stood the law before the Statute of Frauds (c). By the 10th section of that Act it was declared, that " if any cestui que trust should die, leaving a trust in fee-simple to descend to his heir, then and in every such case such trust should be deemed and taken, and was thereby declared to be, assets by descent, and the heir should be liable to and chargeable with the obligation of his ancestor for and by reason of such assets, as fully and amply as he might or ought to have been, if the estate in law had descended to him in possession, in like manner as the trust descended." This enactment must be taken to embrace simple trusts only, and not complicated trusts (cZ), or equities of redemption (e). But such interests as are without the statute may, upon the general principles of equity, be treated as assets by analogy to law. In Plucknet v. Kii'k (/) it was expressly decided by Lord Jeifries, that an equity of redemption of a mortgage in fee (a) R. L. 1684, A. fol. 210. (6) But see Goffe v. Whalley, 1 Vern. 282. (c) 29 Car. 2. c. 3. (d) The former part of the clause, whieh enables the sheriff to take a trust in execution,' was construed not to include a complicated trust, and therefore it is presumed the latter part of the clause could not be differently interpreted. (e) Plunhet v. Penson, 2 Atk. 293, per Lord Harwioke; Sawley V. Qower, 2 Vern. 61, per Lord Jeffries. (/) 1 Vern. 411 ; and see Lord Jeffries's opinion in Sawley y. Qower, 2 Vern. 61. Plucknet v. Kirh, as stated in Reg. Lib., was this : — Kirk, seised of an estate in fee, mortgaged it to Sutton in fee for securing 1300?. and interest, and afterwards confessed a judgment to Plucknet for securing a loan, and two judgments to Rogers for secur- ing other loans, and became indebted to Wood and Dakins by bond. The two judgment creditors joined with the two bond creditors and others who were simple-contract creditors in filing a bUl, by which they prayed that, in default of personal assets, they might redeem the mortgage, and Lord Jeffries decreed that the plaintiffs, the judgment and bond creditors, might redeem ; and as to the plaintiffs, the simple-contract creditors, his Lordship said, "he would advise with the Lords and the Judges thereon, and after he had so advised would give such di- rections touching the said debts, whether they should be let into the redemption of the premises, as should be agreeable to equity." 1686, B. fol. 181, 844. CH. XXm. S. 11.] A TEUST AS ASSETS. 685 should be assets in equity to the payment of bond debts, and so it was held in an anonymous case reported by Freeman (a) ; and the same law was recognised in Acton v. Peirce by Lord Keeper "Wright (fc), and was admitted by Lord Hardwicke with- out observation in Plunket v. Penson(c). The doctrine established by these authorities with respect to Tmst in fee since equities of redemption is directly at variance with the decision ^ *° " in Grey v. Colvile, relating to trusts. But the maxim is gene- rally admitted, that, as between the trustee and cestui que trust and all claimiug by or under them, the equitable ought to imitate the legal estate, and therefore, upon principle, the rule that governs equities of redemption ought equally to be applied to every other equitable interest. It would be a strong position to advance, that until the Act of 3 & 4 W. 4, a trust was not assets unless the debtor had merely a plain and simple trust ; but such would be the result, were trusts only liable as assets by virtue of the Statute of Frauds. The question, as regards debtors who have died since the z k iW. i. 29th of August, 1833, has now been rendered unimportant by "• ^^^' the 3 & 4 W. 4. c. 104, which enacts, that all a person's "estate or interest (which must include a trust) in lands, tenements or hereditaments, corporeal or incorporeal, or other real estate, whether freehold, customaryhold, or copyhold," shall be assets for the payment of debts as well on simple contract as on specialty. There remains to be considered the question, whether a trust ■whetlier a trust shall be administered as legal or equitable assets ; and upon able^assets^''"''' this subject we shall first advert to the case of trusts of chattel interests, that is, to equitable assets in the hands of the executor. It may be remarked in limine, that if an executor recover Trust of a • 1 1 • 1 oliattel. money m that character upon a trust or other equitable right, the proceeds, ivhen actually come to his hands, will be legal assets, even ia a court of law(cZ): is it not, then, an incon- sistency to say, that, if the property has been reduced into (a) P. 115. 155, per Periam, J. ; Anon, case, (6) 2 Vern. 480. 1 Koll. Rep. 56; Sarwoodv. Wray- (c) 2 Atk. 290. man, cited lb. ; S. C. reported Mo. {d) Hawkins y. Lawse, 1 Leon, 858. 686 A TEUST AS ASSETS. [CH. XXIII. S. 11. possession, a Court of equity shall administer it as legal assets, but if it be still outstanding, it shall be administered as equit- able assets ? Upon what principle can the Court vary the rights of parties from an accidental circumstance arising out of the conduct of the executor ? Morgan v. Slier- In Morgan V. Sherrard (a) a person had mortgaged a term of years, and afterwards acknowledgfed a statute to Lord Sherrard, and then confessed a judgment to Morgan. The latter filed his bill against the executor to have the equity of redemption made legal assets (a judgment at law taking precedence of a statute), and so Lord Guildford decreed it. Wilson V. Field- Wilson V. Fielding {b) not only confirms this decision, but ™°' sets the principle in a clear light. An executor had exhausted the personal assets by part payment of a debt secured by a mortgage and the testator's bond, and the simple-contract creditors filed a biU against the heir to oblige him to refund what had been discharged of the mortgage debt out of the personal estate. The heir was decreed to make good the money, and the dispute was, whether the fund, which was called equitable assets because it could only be recovered in a court of equity, should be distributed among the creditors pa7-i passu, ov, one of the creditors having obtained a judgment against the executor, should be administered according to the legal priority. Lord Macclesfield said, " The doctrine that seems to be laid down by the counsel for the simple-contract creditors, that there is this standing difference between assets in law and assets in equity, that, though the former shall go according to the course of administration prescribed by law, yet the latter shall, without any regard to this, go among the creditors equally however different the nature of their debts, is a doctrine ivithout any reason or foundation, and would establish a rule in equity directly contrary to the known rules of law as to the order in which debts are to be paid. Indeed, as to the case put of land devised by a testator to be sold for the payment of his debts, it is so, and this Court does always decree the profits arising from the sale equally among all the creditors ; but then (a) IVern. 293. {h) 10 Mod. 426; S. C. 2 Vera. 763. CH. XXni. S. 11.] A TRUST AS ASSETS. 687 this land may be considered as a gift of the testator among all his creditors, and as the testator, the donor, has not thought fit to make any distinction between his creditors, so this Court, which is in nature of a trustee for the testator, will make none either. But, generally speaking, there is no difference hetiveen assets in law and assets in equity, hut both must be distributed by the executor in a course of administration." The next case is that of the creditors of Sir Charles Cox (a), Cox's case. in which the property in question was the equity of redemption of a term. Sir J. Jekyll was of opinion it should be equitable assets, "it being," he said, "precarious and doubtful whether the mortgage would prove worth redeeming, and all debts being in a conscientious regard equal, and equality the highest equity;" but at the same time it was resolved by the Court, that where a bond was due to A., but taken in the name of B., and A. died, that should be paid in a cowie of administratio7i, for in such a case there could hardly be any dispute touching the quantum of the debt, seeing the principal, interest, and also the costs, must be paid to the obligee in the bond ; whereas, in the other case, the costs must be paid by the party coming to redeem : for the same reason, if a term of years were taken in the name of B. in trust for A., this on the death of A. would be legal assets, for here the right to the thing was plain ; and if the trustee contested it, he must prima facie do it on the peril of paying costs. Hartwell v. Chitters (b), before Lord Hardwicke, was also the Hartwell v. case of the equity of redemption of a term, and (the point CMtters. apparently not undergoing much discussion) was determined in conformity with Sir J. Jekyll's decision, and subsequently, in a case before the Queen's Bench, we find Mr. Justice Bayley referring to both Hartwell v. Chitters and the case of Sir Charles Cox's creditors with apparent approval (c). Mr. Cox, in his note to Peere Williams, disapproves of the observations doctrine held by Sir Joseph Jekyll, that an equity of redemp- ™*etwo tion should be accounted equitable assets ; and observes, that, upon looking into the Master's report made in pursuance of (a) 3 P. W. 341. (c) Clay v. WilUs, 1 Barn. & Ores. (6) Amb. 308. 372. 688 A TEUST AS ASSETS. [CH. XXHI. S. 11. the decree in Cox's case, it appeared the two only creditors were in equal degree, and the Master therefore declined to distinguish which were legal and which were equitable assets, so that the point in question was not in fact determined; and he adds, that Hartwell v. Chitters rested entirely on the authority of Sir Charles Cox's case. At all events it must be remarked, that Sir Joseph Jekyll expressly approved the doctrine, that a plain trust should be legal assets, though he followed his bent of taking subtle and refined distinctions, by holding that a doubtful and precarious equity should be administered as equitable assets. A precarious trust ought upon principle to be governed by the same rules as a plain trust ; and therefore his Honor's distinction could scarcely be relied upon {a) ; and it was said long since by Mitford, after- wards Lord Eedesdale, arguendo, that Cox's case, and Hartwell V. Chitters, had been considered as overruled (6). Cook V. Giegson. In a late case before Vice Chancellor Kindersley, the dis- tinction between legal and equitable assets is thus laid down : Legal assets are such as are available to the creditor in a Court of Law, equitable assets such as the creditor can only reach through a Court of Equity. Whether the assets are such that the executor can recover them in a Court of Law or in a Court of Equity only, is immaterial. The true test is, whether he recovers them " virtute officii." If the assets come to Ms hands as executor, a Court of Law would treat them as assets, and they are to be administered as legal assets (c). The cases of Cox's Creditors and Hartwell v. Chitters must now be treated as overruled. Trust iu fee. A trust in fee stands in a very different light from the trust of a chattel in the hands of the executor. As regards the inheritance, until a late &ci{d) it was only in respect of creditors by specialty in which the heirs were bound, that the question of legal or equitable assets could in fact have ai'isen, (a) See Sharpe v. Earl of Sear- (c) Cook v. Chregson, 3 Drew. lorough, 4 Ves. 541 ; but see Clay 547 ; and see Lovegrove \. Cooper, V. Willis, 1 B. & C. 372 ; Barker v. 2 Sm. & Gif. 271. Marj, 9 B. & C. 493. . ( And his Honour compelled the defendants to account for the rents and profits for the whole period of 200 years. Attorney-General In Attorney -Generals. The Brewers' Company (c), an estate v Tii6 Brcw6rs' Company. bad been vested in that company upon trust for the repairs of the Harrow Eoad; and, by an Act of 19 Geo. 3, the proprie- tors of all lands chargeable with the said repairs were directed [a) 1 Euss. 547. (o) 1 Mer. 495. {h) Jac, 4-13 ; 2 Russ. 362. Cir. XXVI. S. i.] MESNE BENTS AND PROFITS. 789 to pay the sums which should be so charged to certain trustees appointed by the Act. About 1810, an information was filed in the name of the Attorney-General, the trustees under the Act being the relators, for an account of the rents and profits which the company had not applied. Sir W. Grant said, " It was a point not yet decided, from what period a corporate body should account in matters of trust ; for to give the account only from six years would be to create an analogy between a trust account and a common account. However, the Act which had been passed was not meant to have a retrospective operation, and the trustees under that Act could not say they had a right to the accumulated fund from any antecedent period ; and the Attorney- General, suing at the relation of the trustees, could have only such an account as the trustees them- selves would be entitled to ;" and therefore his Honor directed the account to be taken from the date of the Act of Parliament, a period of about thirty years. In a recent suit against a corporation the account was carried Attorney-General back to the last appointment of new trustees of the corporation, Newwr*'"" °^ a period short of ten years ; and in another contemporaneous suit against the same corporation, but where the legal estate was not in trustees, but in the corporation itself, the Court by analogy, and for want of another fixed point, ordered the account to commence at the date of the last appointment of new trustees in the first suit (a). In every suit, the limit of the account is regulated by the General result. particular circumstances. In some cases it is carried back to the period when the corporation was first informed of the mis- application (as by the publication of the Charity Commis- sioners' Report) ; in other cases it has been directed from the time of filing the information, and in others from the date of the decree (b). In some cases, where the defendant has been in strict- Compromise ness accountable for a very long period, but, if the right General. ™''^^' were enforced, it would impose great hardship, it has been referred to the Attorney-General, as representing the charity, (o) Attorney- General v. New- (J) See Attorney- General y. Sra- hury, 3 M. & K. 647. pers' Company, 6 Beav. 390. 790 MESNE RENTS AND PROFITS. [CH. XXVI. S. 4. Trustees acting from mistake. Distinctions be- tween corpora- tions and indi- viduals. to certify whether under the circumstances it might not be proper for the charity to accept a less sum (a) But where the trustees have diverted the charity funds from their proper channel through mistake, it is now settled, that the Court will not call back any disbursements made before the filing of the information (6), or before the trustees had notice that the propriety of such application would be called into question (c). The Court holds a strict hand over trustees where there is any wilful misemployment ; but where the Court sees nothing but mistake, while it gives' directions for the better management in future, it refuses to visit with punishment what has been transacted in time past. To carry back the account to the very commencement of the misapplication would be the ruin of half the corporations in the kingdom (d) ; besides that to act on such a principle would be a great discouragement to under- take the office of trustees of charities (e). If an individual make an annual payment for a particular purpose out of the profits of his estate, it is a reasonable pre- sumption, from the strong interest which he has to resist an unfounded demand, that he has inquired the origin of the claim, and he is therefore fixed with implied notice of all the circumstances that attend it; but the same presump- tion cannot be applied to corporations, because, having no immediate personal interest in the application of the profits of the corporate property, they may, without the imputation (a) Attorney- General v. Mayor of Exeter, 2 Euss. 370 ; and see Attorney-General v. Corporation of Carlisle, 4 Sim. 279; Attorney- General V. Brettingham, 3 Beav. 91 ; Attorney- General v. Pretyman, 4 Beav. 462. (6) Attorney-General Y. Corpora- tion of Exeter, 2 Russ. 45 ; affirmed, 3 Russ. 395; Attorney- General v. Dean of Christchurch, Jac. 474. 637 ; S.C.2 Russ. 321 ; Attorney- General V. jRighy, 3 P. W. 145 ; Attorney-General v, Caius College, 2 Keen, 150; Attorney- General v. Drapers^ Company, 4 Beav. 67 ; Attorney- General v. Christ s Hos- pital, ib. 73 ; and see Attorney- General V. Newbury, 3 M. & K. 150. (c) Attorney- General v. Bur- gesses of East Retford, 2 M. & K. 35, see 37 ; and see Attorney- Gene- ral v. Corporation of Berwick^ upon- Tweed, Taml. 239; Attorney- General V. Caius College, 2 Keen, 150. (d) Attorney- General v. Bur- gesses of Retford, 2 M. & K. 37, per Sir J. Leaeh. (e) Attorney -Generals. Corpm-a- tion of Exeter, 2 Russ. 54, per Lord Eldon. CH. XXVI. S. 4.] BREACH OF CHARITABLE TRUSTS. 791 of culpable negligence, adopt and follow the practice of their predecessors (a). When the charity fund has been administered by a parish Breach of trust by a parish, and misapplied, as a parish is a fluctuating body, and the present rate-payers ought not to pay for past defaults, no retro- spective account can be ordered (b). In the East Retford case (c), before Sir J. Leach, the Court, Mode of attach- on proof of a breach of trust by the corporation, directed an tion property. inquiry by the Master of what property the corporation was possessed not devoted to special purposes, with the view that compensation might be made to the charity by an immediate sale ; but the case upon that point was subsequently appealed against and reversed, as contrary to principle (d), and the plain- tiff must now confine himself to a sequestration in the ordinary course. (a) Attorney- General v. £u7-- (c) 2 M. & K. 35. gesses of East Retford, 2 M. & K. \d) 3 M. & Cr. 484 ; and see 38, per Sir J. Leach. Attorney- General v. Newarh-upon- (6) Ex party Fowlser, 1 J. & W. Trent, 1 Hare, 395. 70; and see cases cited ib. 73, note (a). CHAPTER XXVII. MAXIMS OF EaUITY FOR SUSTAINING THE TRUE CHARACTER OF THE TRUST ESTATE AGAINST THE LACHES OR TORT OF THE TRUSTEE. Besides the several rights and reraedies which have just been the subject of discussion, the Court, with the view of keeping the trust estate in its regular channel, and sustaining its proper character, whether of realty or personalty, against the laches or other misbehaviou/r of the trustee, has found it necessary to establish two maxims, which we now proceed to examine : viz., first, "What ought to be done shall be considered as done (a) ; and, secondly. The act of the trustee shall not alter the nature of the cestui que trust's estate (&). SECTION 1. WHAT OTTGHT TO BE DONE SHALL BE COlfSIDEEED AS BONE. " The forbearance of the trustees/' said Sir J. Jekyll, " in not doing what it was their office to have done, shall in no sort pre- (a) Walker v. Denne, 2 Ves. jun. Fitzgerald y. /ej-KOJse, 5 Mad. 29, per 183, per Lord Loughborough ; Sir J. Leach ; JEarl of Buckingham Foone v. Blount, Cowp. 467, per v. Drury, 2 Ed. 65, per Lord Hard- Lord Mansfield ; Holland v. Hughes, wicke ; Cfuidot v. Guidot, 3 Atk. 16 Ves. 114, per Sir W. Grant; 256, per Lord Haidwioke; Crab- Gaskell v. Harman, 11 Ves. 507, tree v. Bramble, lb. 687, ^e?' eun- per Lord Eldon ; Stead v. Newdi- ' dem ; Trafford v, Boehm, lb. 446, gate, 2 Mer. 630, per Sir W. Grant ; per eundem ; &o. Pulteney v. Darlington, 1 B. C. C. (J) Philips v. Brydges, 3 Ves. 237, per Lord Thurlow; Burgess 127, per Lord Alvanley; Earlom V. Wlteate, 1 Ed. 186, per Sir T. v. Saunders, Amb. 242, per Lord Clarke ; Lechmere v. Earl of Car- Hard wicke ; Selby v. Alston, 3 Ves. lisle, 3 P. W. 215, per Sir J. Jekyll; 341, ^er Sir R. P. Arden. CH. XXVII. S. 1.] CONVEESION OF MONEY INTO LAND. 793 judice the cestuis qtie trust, since at that rate it would be in the power of trustees, either by doing or delaying to do their duty, to affect the right of other persons ; which can never be maintained. "Wherefore the rule in such cases is, that what ought to have been done shall be taken as done, and a rule so powerful it is as to alter the very nature of things, to make money land, and, on the contrary, to turn land into money (a)." And Lord Macclesfield, in the case of a bequest to a trustee for purchasing lands, observed, " If the purchase had been made it must have gone to the heir, but if the trustee, by delaying the purchase, might alter the right, and give it to the executors, this would be to make it the ivill of the trustee, and not the will of the testator, which would be very unreasonable and inconvenient (b)." Upon these grounds it is in equity a universal rule, that Money to be laid money directed to be laid out in the purchase of land, or land ""garfed ^ land^ directed to be sold and turned into money, shall be considered as that species of property into which it is directed to be con- verted ; and this, in whatever manner the direction is given, whether by will, by way of contract, by marriage articles, by settlement, or otherwise, and whether the money has been ac- tually deposited in the hands of trustees for the purpose, or is only covenanted to be paid, whether the land has been actually conveyed, or is only agreed to be conveyed (c). Thus, if money be stipulated to be laid out in land to be set- Subject to cur- tled on a feme covert in fee or in tail, the husband of the feme *^^^' is entitled to his curtesy, though no purchase be actually made in the lifetime of the wife ; and he wUl be decreed the interest of the money until a purchase can be found ; and when the investment has been made, he will have a life estate in the lands, (d). Whether under similar circumstances a widow could, before whether subject the late Dower Act, have established her title to dower, was *° dower, much questioned. It was admitted she was not dowable of a (o) Lechmere v. Earl of Carlisle, C. C. 499 ; and see Wheldale v. 3 P. W. 215. Partridge, 5 Ves. 396. (6) Scudamore v. Scudamore, Pr. {d) Sweetapple v. Bindon, 2 Vern. Ch, 543. 536 ; Cunningham v. Moody, 1 Ves. (c) Fletcher v. Ashhurner, I B. 174 ; Dodson v. Sag, 3 B. C. C. 405. 794 CONVEESION OF MONEY INTO LAND. [CH. XXVH. S. 1. mere trust estate (a) ; but, where money was to be converted into land, and the interest was only prevented from being legal through the forbearance of the trustee, it was contended that the rights of parties ought not to be varied by the neglect of the person who is merely the nominal instrument. SirJ. Jekyii's "Marriage," said Sir J. Jekyll, "is in its nature a civil, opinion. ^^^ .^ ^^^ celebration a sacred contract, and the obligation is a consideration moving from each of the contracting parties to the other, and from this obligation arises an equity to the wife in several cases without any previous agree- ment, as to make good a defective execution of a power, or defective conveyance, or supply the defect of surrender of copy- hold estate : in all which the Court relieves the wife, and makes a provision for her, where it is not unreasonable or in- jurious to others (&)." And he afterwards added, " I cannot but wonder how it ever came to be thought that a tenant by the curtesy was entitled to relief in equity more or farther than a dowress, and particularly that a tenancy by the curtesy may be of a trust estate, but not dower, which is no less than a direct opposition to the rule and reason of the law, which allows dower of a seisin in law, but not a tenancy by the curtesy, because the wife cannot gain an actual seisin, but the husband may ; which reason holds in a trust estate ; for the wife can- not gain or compel a trustee to convey the legal estate to the husband, but the husband himself may ; therefore, if any distinction is to be made, dower, one would think, ought to be preferred to curtesy (c)." If the wife, therefore, had this general equity, why might she not come into Chancery, and plead the rule of the Court that what ought to be done should be taken as done — that, as the equitable estate should have been made a legal estate, it ought to be so considered in respect of dower ? LordHardwicke's The Opinion of Lord Hardwicke was on more than one occa- oprnion. gjQjj expressed adversely to the wife's claim (d) ; but there were several authorities in favour of the dower (e). {a) Altered by the late Act, 3 & 4 [d) See Cunningham v. Moody, ^Y. 4, e. 105. 1 Ves. 176 ; CraUree v. Bramble, (J) Banhs v. Sutton, 2 P. W. 3 Atk. 687. 704. (e) Fletcher v. Bohinson, cited (c) Banks v. Sutton, 2 P. W. 706. Dudley v. Dudley, Pr, Ch. 250 ; CH. XXVII. S. l.J CONVEESION OF MONEY INTO LAND. 795 Now, by a late Act (except where the marriage was celebrated I-^te Dower Act. on or before the 1st day of January, 1834), the Legislature has given dower out of every species of trust estate : subject to be defeated, however, by any declaration of intention on the part of the husband {a). Upon the principle under discussion it has also been argued, Money to he laid that if money be articled, or directed, to be laid out in land to ™tjeot'to"es°°* be settled on a person in fee, if the cestvi que trust die without ''•'^**- heirs, the money shall, as land, escheat to the lord : but be- tween dower and escheat there is, it is submitted, this manifest distinction, that a widow claims through her husband, and has a general equitj', which gives her locus standi in Court ; but a lord by escheat comes under no head of equity — is entirely a stranger to the trust, claiming by title paramount of his own (b). The pretence for his claim is, that the operation of the rule so absolutely converts the equitable into a legal estate, that all the incidents, that would have ^belonged to the legal, must be con- sidered in Chancery as attached to the equitable ; but the rule was not meant to subvert the nature of a trust, but to be sub- servient to it — ^not to benefit third persons, but to protect the interest of parties privy to the trust. And of this opinion appears to have been Sir T. Clarke, in the case of Burgess v. Wheate (c). There A., seised ex parte paternd, conveyed the estate to trustees in trust for herself, her heirs, and assigns, and died without heir of the paternal line, but leaving an heir of the maternal ; and it was argued in favour of the heir ex parte maternd, that, as the the cestui que trust might at any time have called upon the trustees to convey, and equity looked upon what ought to have been done as done, the Court would by a fiction consider the conveyance of the legal estate as actually executed ; and then, in default of heirs of the paternal line, the lands would descend to the heir ex parte maternd. But the Master of the EoUs said, " Had such a conveyance been executed, it would have S. C. stated from E. L. in Banks (J) Walker v. Benne, 2 Ves. V. Sutton, 2 P. W. 709; Otway v. jun. 185, per Lord Loughborough; Hudson, 2 Vern. 583; Banks v. Henchman v. Attorney- General, 3 Sutton, 2 P. W. 700 ; In re Lord M. & K. 494, per Lord Brougham. Lismore, 1 Hog. 177. (c) 1 Ed. 177 ; S. C. \ W. (a) See p. 626, supra. Blaekst. Rep. 123. 796 CONVERSION OF MONEY INTO LAND. [CH. XXVII. S. 1. How affected by the cestui que trust's will. Is subject to judgments. been like a feoffment and refeoffment, and have made A. seised of a new use ; but, as this was not done, the consequences in- sisted on will not follow, for nothing is looked upon in equity as done but what ought to have been done — not what might have been done ; nor will equity consider things in tliat light in favour of everybody, hut only of those who had a right to pray it might he done. The rule is, that it shall he either hetween the parties who stipulate what is to he done, or those who stand in their ])lace. A. never prayed a conveyance, and one cannot tell whether she ever would, and the maternal heir is not to be considered as a privy in blood, but a mere stranger (a.)." As the lord by escheat claims not in privity, it results that, according to Sir T. Clarke's construction of the rule, he has no title to a subpoena. As money to be laid out in land is regarded as land, it could not before the late Wills Act have been devised by an infant, though of sufficient age to bequeath personal estate (6) ; and, for the same reason, it will pass by the cestui que trust's will under the general description of all the testator's lands (c), or of all his lands in the county of or else- ivhere (d), though in the latter case it may very plausibly be contended, that the testator could not have referred to money, but must have alluded to something that possessed a local character. So money to be converted into land is bound by a judg- ment (e), but was never accounted personal assets, and there- fore was not, until the late Act (/), liable to the payment of simple-contract debts (g). (o) 1 Ed. 186. (J) Earlom v. Saunders, Amb. 241. By the late Act, 7 W. 4, & 1 V. e. 26, an infant cannot make a will even of personal estate. (e) Ouidot V. Guidnt, 3 Atk. 256, per Lord Hardwioke ; Raahley t. Masters, 1 Ves. Jun. 201; 8. C. 3 B. C. C. 99 ; Green v. Stephens, 17 Ves. 77 ; Biddulph v. Biddulph, 12 Ves. 161. {d) Lingen v. Sowray, 1 P, W. 172 ; Guidot v. Guidot, 3 Atk. 254. (e) Frederick v. Aynscomhe, 1 Atk. 392, (/) 3 & 4 "VV. 4, c. 104. [g) Whitwiok v. Jermin, cited Baden v. Barl of Pembroke, 2 Vern. 58 ; Lawrence v. Beverley, cited lb. 55; S. C. 2 Keb. 841; Fulham v. Jones, cited PuUeney V. Darlington, 7 B. P. C. 550; Foone v. Blount, Cowp. 467, per Lord Mansfield. CH. XXVn. S. l.J CONVERSION OF MONEY INTO LAND. 797 So a gift by a parent (a freeman of the city of London) to a Orphanage share. child of money to be laid out in land was considered a purchase by the father, and a donation of the estate, and consequently under the law existing before the recent Act (a), the child was not bound, before receiving his orphanage share, to bring the purchase into hotchpot (b). With respect to the heir of the person upon whom the lands, In -what cases when purchased, are directed or agreed to be settled, it is neces- ^Ton land goes sary, for ascertaining his rights, to distinguish between the *" *''® ''"''• cases where the real representative, claims as against a stranger, and where he claims as against the executor of his own ancestor. It appears to be perfectly established that the heir is entitled Case of the heu- to the money as land, if he seek to enforce his equity against I strangerr^"^ a stranger. Thus, 1. If a sum of money be bequeathed to be laid out in a purchase of lands to be settled to the use of A. and his heirs, and A. die before a purchase has been obtained, the money is the property, not of the executor, but of the heir of A. (c). 2. If on the marriage of A. money be actually de- posited in the hands of trustees, either by A. himself or by a stranger, to be laid out in a purchase of lands to be settled to the use of A. for life, remainder to his wife for life, remainder to the issue in tail, remainder to A. in fee, and A. die without issue, his heir, and not his executor is entitled id). 3. If on the marriage of A. there be a covenant on the part of B. to lay out money in a purchase of lands to the above uses, and A. die without issue, his heir takes the benefit of the covenant(e). (a) 19 & 20 Vict. c. 94. ■would have resulted to the exeou- (6) Hume v. Edwards, 3 Atk. tors of the testator, but, as money to 450; Annandy. Honeywood, 1 Vern. be converted and settled in tail upon 345. a discretion which was not exer- (c) Scudamore v. Scudamore, Pr. cised, it belonged to the adminis- Ch. 543. Abbott v. Lee, 2 Vern. trators of the legatee, as was decreed 284, at first sight appears contra, by the Court. See the case stated but it seems from the Registrar's from Reg. Lib. App. No. II. book that the direction for conver- (d) Disher v. Disher, 1 P. W. sion was not imperative, but to be 20 i; Chaplin v. Horner, lb. 483; at the discretion of the testator's Edwards v. Countess of Warwick, executors. Had the money been 2 P. W. 171 ; and see Lechmere v. absolutely converted into land, the Lechmere, Gas. t, Talb. 90. ultimate remainder by failure of (e) Knights v. Athyns, 2 Vern. issue of the surviving daughter 20. 798 CONVERSION OF MONEY INTO LAND. [CH. XXVIX. S. 1. Case of the heir claiming against the executor of his own ancestor. The heir has a right, if any person has an equitable inter- est. Walker v. Denno. But if the heir have to enforce his claim, not against a stranger, but against the pe7-sonal representative of his own ancestor, as if A. on his marriage covenant to lay out money in a purchase of lands to be settled to the use of himself for life, remainder to his wife for life, remainder to the issue in tail, remainder to his own right heirs, in this instance the question whether the heir can call upon the executor for the money must depend upon this further distinction : — 1. If at the death of A. there be an equitable interest in the fund outstanding in another, as a life estate in the wife, or an estate tail in the issue, then the real quality of the money is sustained and continued by that right, and the heir of A. is entitled to call upon A 's executor (a) ; and if there be such an out- standing claim at the death of the ancestor, the circumstance that the heir institutes his suit during the subsistence of that claim, or after its determination, seems to be perfectly immaterial (&). In Walker v. Denne (c) Lord Loughborough expressed some doubt upon this doctrine. " Is there,'' he said, " any case where the heir has jB.led a bill merely as such, and has had money paid to him, because it was directed to be laid out in land ? The idea is commonly entertained, but there are doubts about it. I do not recollect any case where the heir has said, The money ought to be laid out — all the particular objects are gone, and I as heir claim the money as land for my benefit. Upon that I doubt what gives the heir a title to a subpoena in this Court : between the heir and personal repre- sentative their rights are pure legal rights : chance decides what shall be real, what personal : neither has a scintilla of equity to make the property that which it is not in fact." To this reasoning of Lord Loughborough it may be replied, that, when it is said there is no equity between the real and personal representatives, the meaning is no more than this — that what is real estate at the death of the ancestor will go to the heir, («) Kettleby v. Atwood, 1 Vern. 298 ; re-heard, lb. 471 ; Lancy v. Fairechild, 2 Vern. 101 ; Chaplin V. Horner, 1 P. W. 483 ; Lechmere V. JEarl of Carlisle, 3 P. W. 211 ; affirmed, Cas. t. Talbot, 89; Old- ham V. Hughes, 2 Atk. 452, (5) See Chaplin v. Horner, 1 P, W. 483 ; Lechmere v. Lechmere, Cas. t. Talb, 80. (c) 2 Ves, jun. 175, 176, 183; and see Oxenden v. Lord Compton, lb. 70; Lord Compton v. Oxenden, lb. 265. CH. XXVII. S. 1.] CONVEESION OF MONEY INTO LAND. 799 and what is personal estate at the death of the testator will go to the executor ; but, for the purpose of determining what is real and what is personal estate, the Court is guided, not by the legal nature of the property at the death of the owner, but, as appears in numerous instances, by the stamp and character impressed upon it in consideration of a court of equity. Thus if a mort- gagee in fee die, the mortgage being regarded as a mere security for part of the mortgagee's personal estate, the executor may call upon the heir for a conveyance of the land. On the other hand, if the mortgagor die, the heir of the mortgagor may call on the executor to discharge the incumbrance out of the per- sonal assets. So if a person contract for the sale of an estate, and die before the completion of the sale, the legal fee descends upon the heir, but the purchase-money passes to the executor ; and, on the other hand, if a person contract for the purchase of an estate, and die, the executor must pay the money, but the heir is entitled to the purchase. Thus, in the words of Lord Talbot, " "Where the dispute is between the two representatives of the deceased, the one of his real, the other of his personal estate, the heir's being but a volunteer in regard to his ancestor will not exclude him from the aid of the Court, for though the question is between two volunteers, the Court will determine which way the right is, and wiE decree accordingly (a)." " I am disposed," said Lord Eldon, " to say, notwithstanding the opinion of Lord Eosslyn in Walker v. Denne, and some other modern authorities, that if the instrument be taken to impress a fund with real qualities immediately upon the execution, in the question between the heir and executor, the money being once clearly and plainly impressed with real uses as land, and one of those uses being for the benefit of the heir, it will remain for his benefit, and it is not correct to say the Court does not interpose between volunteers, if they give to the exe- cutor that money which the instrument has given to the heir (6)." And Sir W. Grant to the same efi'ect observed, " There is no weight in the circumstance that the property is found in the shape of money or land, for the character is (a) Leehmere v. Lechmere, Cas. t. (i) Wheldah v. Partridge, 8 Talb. 90. Ves. 235. 800 CONVERSION OF MONEY INTO LAND. [CH. XXVII. S. 1. to be found in the deed. The opinion of Lord Rosslyn that property was to be taken as it happened to be at the death of the party from whom the representatives claimed, was much doubted by Lord Eldon, who held, in which I perfectly concur, it must be considered as being in the state in which it ou^ht to be. Lord Rosslyn's rule was new, and not according to prior cases (a)." 2. But if A. die, leaving neither wife nor issue, so that, to where th" money use the technical expression, the money is " at home," that is, IS "at home." ^_ ^^^ ^j^g ^-j^g q£ j^-g ^gj^jjj^ ^g ^j^g absolute and exclusive owner, and there is no outstanding right in another person, in this case the real quality of the money has become merged and extinguished, and on the death of A. the heir has no equity to call upon the executor. To keep on foot the notional conver- sion of money into land, it is evident there must be a right in some one to insist upon the actual conversion ; but if A. be in possession of 20,000Z. upon trust to lay out in a purchase of lands to be settled to the use of himself and his heirs, the right and the thing both centering in the same person, there is no- body to sue, and it foUows the action is extinguished (6). The decision in the much litigated case of Chichester v. Bickerstaff. Bickerstaff (c), amounted probably to no more than this. On the marriage of Sir J. Chichester with the daughter of Sir C. Bickerstaff, the latter agreed to pay 15001. by way of portion, which, together with 1500Z. more to be advanced by Sir John Chichester within three years after the marriage, was to be invested in lands to be settled on Sir John for life, remainder to his wife for life, remainder to the issue in tail, remainder to Sir John in fee. Sir John and his lady, within one year after the marriage, both died without issue, the husband having sur- vived. Sir John by his will 7nade Sir C. Bickerstaff his executor, and bequeathed the residue of his personal estate, after pay- ment of his debts, &c., to Frances Chichester, his sister. The heir at law of Sir John brought his bill against Sir Charles to {a) Thornton v. Hawley, 10 Ves. (e) 2 Vera. 295 ; 8. C. cited 138 ; Kirhman v. Miles, 13 Ves. Pulteney v. Darlington, 7 B. P. C. 339. 554. (J) See Pulteney v. Darlington, 1 B. C. C. 237. CH. SXVn. S. 1.] CONVERSION OF MO>rET INTO LAND. 801 compel him to pay tJie 1500?., insisting that byTirtue of the marriage articles the money ought to be looked upon as land, and therefore belonged to him as heir. Lord Somers said, " This money, thotigh once bound by the articles, vet when the Tnfe died without issue became free again, and was under the power and dispose of Sir John, as the land would likewise have been in case a purchase had been made pursuant to the articles, and therefore would have been assets to a creditor, and must have gone to the executor or administrator of Sir John ; and this is much stronger where there is a residuary legatee ;" and therefore dismissed the biU. Then follows what is apparently the note of the reporter, viz. that " money shall in many cases be considered as land when bound by articles in order to a purchase, but whilst it remains still money, and no purchase made, the same shall be deemed as part of the personal estate of such person, who might have aliened the land in case a pur- chase had been made." In this case it has been commonly, but surely without reason, Errors respect- supposed, that the suit of the plaintiff was for the 1500L which ,.. Bickeistaff. Sir Charles had articled to pay, and in consequence of this misconception, the authority of the decision has repeatedly been called into question. Thus Sir J. Jekyll, overlooking the very material circumstance, that Sir Charles had been ap- pointed the executor of the testator, observes, " It is remark- able with respect to thia case, that the wife died within three years after the marriage, during which period the purchase was to be made, so that the time was not come within which the money was to be laid out ; and till then it continued money ; and posably the Cotirt had some evidence to induce them to believe, that Sir John Chichester looked on the money as per- sonal estate; and if this does not distinguish it from other cases, I doubt, in opposition to so many decrees, the resolution here given icovM hardly he maintainable {a)." And Lord Talbot was apparentiy under the same misapprehension, for he observes, " Had the money in the case before me been de- posited in the hands of trustees, it must have been looked upon as real estate, and the heir have been entitled. This seems to (a) Lechmere v. Carlisle, 3 P. W. 221. 3 F 802 CONVERSION OP MONEY INTO LAND. [CH. XXVH. S. 1. be granted, and no authority against it but what has been col- lected from the case of Chichester v. Biekerstaff. It is probable the Court went upon some reason, which induced it to think tliat Sir John looked upon that money as personal estate, for otherwise the authority of that case is not to be maintained, being contrary to all former resolutions (a)." But Lord Thur- low viewed the case in a different light, and evidently considered the 1500?. sought by the bill of the plaintiff to be the 1500Z. articled to be paid by the testator himself, and so payable out of his assets in the hands of Sir John Biekerstaff, his executor. " Where," said his Lordship, " a sum of money is in the hands of one without any other use but for himself, it will be money, and the heir cannot claim, like the case of Chichester v. Bicker- staff, against which I think there is no judgment, though there are a number of opinions. I know no better authority than that case (b)." Facts from The Eegistrar's book has been searched, but no decree can book. be found. It appears, however, from a motion in the cause for dissolving an injunction, that the circumstances of the case were as follows : — Sir Charles Biekerstaff had brought an action at law against the plaintiff, and had obtained judgment for a certain sum upon a balance of accounts. Upon this the plaintiff insti- tuted a suit in equity for staying the proceedings at law, alleg- ing, that Sir Charles stood indebted to himm the sum of 30001, to which the plaintiff was entitled as heir at law of Sir John, under Sir John's marriage articles. It was ordered by the Court that judgment should be entered up, but execution should be stayed till the cause should be heard the Easter term following. As Vernon, the reporter, speaks only of one sum of 1500Z., to which the executor was declared entitled, it is probable the other sum was adjudged to the heir, a decision that would in every respect be conformable to principle ; for while the 1500Z., covenanted to be paid by Sir John himself was, by the death of his wife without issue in his lifetime, " at home," and there- fore set free from the articles, the other sum of 1500L which was covenanted to be paid by Sir Charles, was outstanding in (a) Zechmere v. Lechmere, Gas. (i) PuUeney v. Darlington, 1 B. t. Talb. 90. C. C. 238. CH. XXVn. S. 1.] CONVERSION OF MONEY INTO LAND. 803 the hands of Sir Charles as trustee, and would therefore retain the character of real estate until some act by Sir John to remove that impression. To the -principle under consideration must be referred Puiteneyv. the case of Pulteney v. Darlington (a). Henry Guy the testator appointed Lord Bath, Taylour, and Lake, his exe- cutors, and devised to them, their heirs, and assigns, all his estates at Earl's Court, and certain freeholds and copyholds at MusweU Hill, upon trust to sell, and directed that, after pay- ment of his debts and legacies, all such monies or other personal estate as should remain in the hands of the executors, or be raised by sale of the devised estates, should be laid out in the purchase of lands to be settled to the use of Lord' Bath for life, remainder to the first and other sons in tail, remainder to General Pulteney for life, remainder to the first and other sons in tail, remainder to Daniel Pulteney for life, remainder to the first and other sons in taU, with a remainder in fee to the father of Lord Bath, which afterwards became vested in Lord Bath himself. The testator died in 1710. Daniel died with- out issue in the lifetime of Lord Bath and General Pulteney. Lord Bath had issue a son, who died, without having disturbed the settlement, in the lifetime of his father. General Pulteney never had any issue. Lord Bath, who acted in the executorship, retained in his hands the sum of 23,488i. upon the trusts of the will ; and, after the decease of Daniel 'and of his own son, by his will, bearing date in 1763, devised aU his real and per- sonal estate to General Pulteney and appointed him executor:, so that, whether the sum of 0,3,4.681. was to be regarded as the real or as the personal estate of Lord Bath, utraque via data it became vested in General Pulteney under this devise and bequest. General Pulteney proved the will, took possession of the estates, and transferred the securities upon which the 23,488Z. was invested into his own name.. By his will bearing date in 1767, General Pulteney devised aU his estates in Middlesex, Salop, and York, to- certain uses,, and gave all his money, securities, goods, chattels, and personal estate, to his executors upon certain trusts; so that, under («) 1 B.. C, C. 223.. 3 E 2, 804 CONVEESION OF MONEY INTO LAND. [CH. XXVU. S. 1. General Pultenejr's will, if the 2B,i88l. was, under the circum- stances, to be taken as land, then, for want of a general devise, it had descended upon the plaintiff as General Pulteney's heir ; but if was to be regarded as personalty, it was included in the bequest of the General's- personal estate. Lord Bathurst, before whom the cause was first heard, conceived the heir had no title, and dismissed the bUl. It was afterwards reheard before Lord Thurlow, who affirmed the decree upon two grounds ; first, that the money was " at home," the possibility of issue having, on the death of General Pulteney, the sur- viving tenant for life, become extinct, and therefore, at his decease, there was no claim upon the fund outstanding in any other person ; and, secondly, that General Pulteney had mani- fested a disposition to destroy the impression of real estate, and continue the fund as money. His Lordship said, " If there be no legal or equitable title out against the party who is in possession of the fund, there the rule, that when the right and the thiag centre in one and the same person the action is ex- tinguished, applies, and the heir cannot say there was a use for him;." and then, after commenting upon the numerous decisions upon the subject, his Lordship continued : '' The use that I make of these cases, notwithstanding the dicta they con- tain, is this, that where a sum of money is in the hands of one without any other use but for himself, it wiH be money, and the heir cannot claim. But whether that is clearly so or not, circumstances of demeanour in the person, even though sUght, wUl be sufficient to decide it : a very little would do : receiving it from the trustees there is no doubt would be sufficient : Lord Bath did receive it— he had it in his hands. Suppose he had it by way of covenant : otherwise, where would there be an end ? If he kept it subject to a covenant to lay it out for fifty years, should the heir come for it at the end of that term ? It would lead to infinite inconveniences." The decree was afterwards affirmed in the House of Lords, and upon the ground, as stated by Lord Eldon, that the money was " at home (a)." Actual receipt of Of course the money wUl be "at home" where the person the money makes t ^ ■,■■,■,, ^ it "at home." absolutely entitled to the fund receives it from the trustee the («) Wheldale v. Pm-tridffe, 8 Ves. 235. CH. XXVn. S. 1.] CONVEESION OF MONET INTO LAND. 805 depositary of it, and that whether the payment is made with the sanction of the Court, or by the voluntary act of the trustee himself (a). If a testator bequeath a sum of money to be laid out in lands, Money be- to be settled to certain uses, with the ultimate remainder to i^a oiit on land, his own right heirs, and the prior limitations fail, the heir may ^*^riTtieira " file a bill against the executor of his ancestor, and though the only person entitled, may claim to have the benefit of the con- version. Lord Loughborough, in Walker v. Denne (b), appears to have Doubts of Lord doubted upon this point, and observed, that in general a limit- ation to the right heirs of the testator was an indication that he had n.o will concerning it, and meant that he did not know what to do with it : but his Lordship's doctrines have, as before remarked, been repeatedly disapproved, and the very point was decided by Lord Northington in the case of Bobinson v. Knight (c). Lord Macclesfield advanced the position, that if a person Voluntary cove- voluntarily and without consideration covenanted to lay out money on land. money in a purchase of land to be settled on himself and his heirs, the Court would compel the execution of such a contract, though merely voluntary ; for in all cases, where it was a measuring cast between an executor and an heir, the latter should in equity have the preference (d). But the position that the heir is more favoured than the executor, though often repeated (e), does not appear to be founded on any intelligible priaciple. The notion may have arisen from the leaning of the Court towards the heir in respect of lands of which the ancestor was seised. And as to the application of the rule, that what ought to be done shall be looked upon as done, the heir in the case put by Lord Macclesfield cannot, it seems, take advantage of it ; for the (o) See Pulteney v. Darlington, wick, 2 P. "W. 176 ; and see Lech- 1 B. C. C. '236; Bowes v. Earl of mere'Y. Lechmere, Cas t. Talb. 90, Shaftesbury, 5 B. P. C. 144 ; Chap- 91. Un V. Horner, 1 P. "W. 483, as to (e) See Crahtree v. Bramble, 3 the 1350Z. Atk. 689 ; Scvdamore v. Scudamore, (h) 2 Ves. jim. 175—177. Pr. Ch. 544 ; Saytor v. Sod, 1 P. (c) 2 Ed. 155. W. 364 ; Wilson v. Beddard, 12 {d) Edwards t. Countess of War- Sim. 32. 806 CONVEESION OF MONEY INTO LAND. [CII. XXVII. S. 1. Conversion must be absolute or imperative, not optional. Of conversion apparently op- tional, but Tvliere the uses declared are exclusively applicable to real estate. Court will not act upon the rule universally, but only where the agreement is founded on a good or valuable consideration (a). The opiaion expressed by Lord Macclesfield may therefore justly be doubted. In the preceding observations it has of course been assumed, that the direction or agreement for conversion is by the terms of the instrument made absolute and imperative ; for, where a mere option is given, the original character of the property con- tinues untU the discretion has been exercised, and the conver- sion actually effected ; as, if the direction or agreement be to lay out money in " lands or securities (6)," in " freeholds or leaseholds (c)," or if by any other mode of expression an inten- tion be manifested of not converting the property at all events {d). But where the uses declared are exclusively applicable to real estate, the direction or agreement will be construed to be im- perative, though the direction or agreement be to lay out the money in " freeholds, leaseholds, or copyholds {e)," or the instru- ment contain an authority to invest the money upon securities until a purchase can be found (/), or, the fund being already out upon security, a power is inserted to caU it in, and lay it out upon other securities {g), or even though the direction or agreement be to lay out the money on lands or securities, the intention in the last case apparently being, that the money shall be invested upon security until a suitable purchase can be found, and that the interest and dividends in the mean time shall be paid to the person who would be entitled to the rents {h). (o) See Crabtree v. Bramble, 3 Atk. 687 ; Frederick v. Frederick, 1 P. W. 713. (6) CurUng v. May, cited Ouidot V. Ouidot, 3 Atk. 255 ; Amler v. Amler, 3 Ves. 583 ; and see Van v. Barnett, 19 Ves. 102. (c) Walker v. Denne, 2 Ves. jun. 170; Davies v. Ooodhew, 6 Sim. 585. [d) Wheldale v. Partridge, 5 Ves. 388 ; S. C. 8. Ves. 227 ; and see Abbot V. Lee, 2 Vern. 284 ; Davies V. Ooodhew, 6 Sim. 585; Folley v. Seymour, 2 Y. & C. 708. (e) Hereford v. Ravenhill, 5 Beav. 61. (/) FdwardsY, Countess of War- wick, 2 P. W. 171; Farlom v. Saunders, Amb. 241 ; and see Davies V. Ooodhew, 6 Sim. 585. (g) Thornton v. Hawley, 10 Ves. 129 ; and see Triquet v. Thornton, 13 Ves. 345. (h) Earlom v. Saunders, Amb. 241 ; Cowley v. Hartstonge, 1 Dow. 361 ; Arnold v. Johnson, 1 Ves. 169 ; Cookson v. Heat/, 5 Beav. 22 ; 12 CI. & Fin. 121. CH. XXVII. S. 1.] CONVERSION OF LAND INTO MONEY. 807 And, where the uses are thus exclusively applicable to real Conversion at estate, the dire'ction or agreement will be regarded as impera- ofaparty?^^ tive, though the settlement require the purchase to be made at the request of a party (a), for the insertion of such a clause has been taken to mean, not that a conversion may not be effected before, but that it shall certainly be effected after request (6). And the construction is the same, though the purchase be directed to be made with a person's consent and approbation (c) ; for upon a convenient purchase being proposed, the Court, said Sir J. Jekyil, will take upon itself to judge thereof, and, without some reasonable objection made, will order the money to be laid out in it, so that such a proviso seems to be imma- terial, and as if omitted (d). But of course the instrument may be so strongly expressed as to show the intention of the par- ties, that the request or consent of a particular person should be a substantial ingredient, and that no conversion should take place unless it were given («). As money to be converted into land is considered as land. Land to be con- so land to be converted into money is, upon the same principle, ^^regarfeda™^^ invested with all the properties of money. Thus, if an estate money. be directed or agreed to be sold, and the proceeds be made payable to A., the property, though unconverted at A.'s decease, wiU pass by a general bequest of all his personal estate (/) ; and, if A. die intestate, will vest in his per- sonal representative (g), but will not be liable to probate duty Qi). So, if the proceeds be given to an alien, he is capable of Alien. taking for his own benefit, and the crown is excluded (i)- (o) Thornton v. Hawley, 10 Ves. 585 ; and see Re Taylor's Trust, 9 129; Johnson v. Arnold, 1 Ves. 169. Hare, 596. (i) lb. 137; but see. Stead v. (/) Stead v. Newdigate, 2 Mer. Newdigate, 2 Mer. 530. 521. (c) Thornton v. Hawley, uhi su- (g) Ashby v. Palmer, 1 Mer. 296 ; prd. In Symons v. Sutter, 2 Vern. £iffgs v. Andrews, 5 Sim. 424 ; 227, Hutehins was right, according Burton v. Hodsoll, 2 Sim. 24 ; to Sir J. Jekyil, Jjechmere v. Earl Qrieveson v. Kirsopp, 2 Keen, 653 ; of Carlisle, 3 P. W. 220, and Lord Griffith v. Ricketts, 7 Hare, 299 ; Thurlow, PuUeney v. Darlington, Sardey v. Hawkshaw, 12 Beav. 1 B. C. G. 238; but see Stead v. 552. Newdigate, 2 Mer. 530. {h) Matson v. Swift, 8 Beav. 368 ; {d) Lechmere v. Earl of Carlisle, Custanoe v. Bradshaw, 4 Hare, 324. 3 p. "W. 220, per Sir. J. Jekyil. (») Bu Hourmelin v. Sheldon, 1 (e) Bavies v. Goodhew, 6 Sim. Beav. 79 ; 4 M. & Or. 525. 808 CONVERSION OF LAND INTO MONET. [CH. XXVn.. S.,1, Charity. The conversion must be impera tive. 'Implied oonyer- sion in cases of bequests of "wasting property /to persons in ■succession. And if leaseholds be stamped with a trust for conversion,, and the proceeds be given to A., and A. dies having by ,his wiU given his personal estate to a charity, the leasehold wiU pass by the bequest (a). But if real and personal estate be given to trustees upon trust for a class, with a discretionary . and not an imperative. power to convert the whole into personal estate, and if the trus- tees make a partial conversion, and then the discretionary power becomes extinguished by their death or otherwise, the objects of the trust will take the property as real or personal estate, according to the actual condition in which it is found (6). So if a mortgage deed contain a power of sale with, a direction that the surplus proceeds .shall be paid to the mortg.agor,_ his executors, administrators, and assigns, and the property is sold by the mortgagee, the surplus will be personal, or real estate of the mortgagor, according as the sale takes place before or after his death (c). But where an option to purchase has been created by a testator, and exercised after his death, such exercise has been held to effect a retrospective conversion (d). In some cases a conversion of personal estate is implied. Thus as a general rule, if a testator give his personal estate (e), or the residue of his personal estate (/), or the interest of his property (^), in trust for or to (h) several persons in succession, and the pro- perty is of a wasting nature, as leaseholds, long annuities, &c., the Court implies the intention that such perishable estate (o) ShadboU-v. Thornton, 17 Sim. 49. But the ground upon wHcli the Court held that there was such a trust for conversion does not appear in the report. (6) Walter v. Maunde, 19 Ves. 424 ; Shipperdson v. Tower, 1 T. & C. Ch. Ca. 441 ; Polley v. Sey- mour, 2 T. & C. 708 ; and see Cow- ley V. Hartstongue, 1 Dow. 378; Bourne v. Bourne, 2 Hare, 35. Otherwise, where the power is im- perative, . Grieveson v. Kirsopp, 2 Keen, 653. (c) Wright v. Rose, 1 Sim & Stu. 322 ; and see Re Cooper's Trust, 4 De a. M. & G. 768. {d) Lawes v. Bennett, 1 Cox; 167 ; Townley v. Bedwell, 14 Ves. 590 ; but see Brant v. Vause, 1 T. & C. Ch. Ca. 580 ; Emuss v. Smith, 2 De Gex & Sm. 722. (e) Howe v. Earl of Dartmouth, 7 Ves. 137. {/) CranehY. Cranch, cited Howe V. Earl of Dartmouth, 7 Ves. 141, note ; Powell v. Cleaver, cited, lb. 142 ; Wichfleld v. Baker, 2 Beav. 481 ; Crawley v. Crawley, 7 Sim. 427 ; Sutherland v. Coohe, 1 Coll. 498; Johnson Y. Johnson, 2 Coll. 441, (g) Fearns v. Young, 9 Ves. 549 ; Bennr. Dixon, 10 Sim. 636. See Oakes V. Strachey, 13 Sim. 414. {h) House V. Way, 12 Jur. 959. OH. XXVII. S. 1.] IMPLIED CONVEESION. 809 should assume a permanent character, and so become capable of succession. The Court accordingly in these cases, directs a conversion into 3 per cent. Bank Annuities. " It is given," observed Lord Eldon in the leading case of Howe v. Earl of Dartmouth {a), " as all his personal estate, and the mode in which he says it is to be enjoyed is to one for life, and to the others afterwards. Then the Court says it is to be construed as to the perishable part, so that one shall take for life and the others afterwards, and unless the testator directs the mode so that it is to continue as it was, the Court understands that it shall be put in such a state that the others may enjoy it after the decease of the first, and the thing is quite equal, for it might consist of a vast number of particulars ; for instance, a personal annuity not to commence in enjoyment till the expi- ration of twenty-one years from the death of the testator, pay- able upon a contiagency perhaps. If in this case it is equitable that long or short annuities should be sold to give every one an equal chance, the Court acts equally, in the other case, for those future interests are for the sake of the teiiant for life to be converted into a present interest, being sold immediately in order to yield an immediate interest to the tenant for life. As in the one case, that in which the tenant for life has too great an interest, is melted for the benefit of the rest, in the other, that of which, if it remained in specie, he might never receive anything,- is brought in, and he has immediately the interest of its present worth." But an intention that the property should be enjoyed ira specie intention to give may appear from the form of the bequest, or be collected from ^|^* ^T^"^' the terms in which it is expressed. As if there be a specific may be collected from the bequesti bequest of leaseholds or of stock, or if the testator assume that the property is to remain in specie by speaking of the devisees or legatees as in the perception of the rents of lease- hold estate, or the dividends of stock, or if a testator negative a sale at the time of his death by directing a conversion at a subsequent period. Thus, the property was decreed to be enjoyed in specie Instances, where a testatrix having long annuities, and no other stock, la) 7 Yes. 148. 810 IMPLIED CONVEESION OF [CH. XXYH. S. 1. gave certain legacies out of her "funded property" and bequeathed. " the remainder of her dividends to A. for life," and after her decease gave sums of " stock" of various amounts to different persons {a). So where a testator having long annuities gave lOOZ. long annuities to A., "the residue of his property all he did or might possess in the funds, copy or leasehold estate," to B. and C. for their lives, and on the death of both to be divided among certain persons in the will named (&). So where a testator having^7ease/toWs gave aU his estate to A. and B. upon trust to permit C. to enjoy " the rents, issues, profits, interest, and annual proceeds thereof," for her life, and on her decease upon trust for the two daughters of C. (c). So where a testator having leaseholds gave aU his property of every description and denomination unto three trustees upon trust for A. B. for her life, for her separate use, and upon her decease upon trust for C . D. for her lifej for her separate use, and on her decease unto her children in equal shares ; and if there should be no children, the whole of the property to be sold by auction, and the proceeds to be distributed amongst certain parties {d). So where a testator having leaseholds, gave his wife " all his property in every shape, and without any reserve, and in whatever manner it was situate for her life, and at her death, the property to be divided" amongst certain persons (e). So where a testator having leaseholds, and being entitled to an annuity pur autre vie, gave to his wife " aU the interest, rents, dividends, annual produce or jprofits, use and enjoy- ment" of aU his real and personal estate for her life, and after her decease to A., or in case he died in the testator's lifetime. (a) Vincenty. NewcombefYo-wage, Sremner, 2 [Sm. & Gif. 237; aud 599; and see Sutherland v. Cooke, see contra, Piehup v. Atkinson, 4 1 Coll. 503. Hare, 624. (6) Bethune v. Kennedy, 1 M. & (d) Daniel y. Warren, 2 T. & C. C. 114. Ch. Ca. 290; Chambers^. Chambers, (e) Ooodenough v. Tremamondo, 15 Sim. 183; Burton v. Mount, 2 2 Beav. 512 ; Bowden v. Bowden, De Gex & Sm. 383. 17 Sim. 65 ; Harris v. Poyner, 1 (e) Collins v. Collins, 2 M. & K. Drew. 174; Blann v. Bell, 2 De 703; see observations on this case in Gex, Mac. & Gor. 775 ; Crowe v. Vaughan v. Buck, 1 Phill. 78 ; Lieh- Crisford, 17 Beav. 507; Hood v. field y. Baker, l^'Bea.sr. 4A1. Clapham, 19 Beav. 90 ; Marshall v. CH.XXVn. S. 1.] WASTING PEOPEETY. 811 to B. and C. {a). So where a testator having long annuities and no other stock, gave all his real and personal estate to his executors " upon trust to permit his wife to receive the rents and profits, dividends, and annual proceeds for life, and on her decease upon trust to sell his freehold and leasehold houses, and to convert the whole of his estate into money (6)." So where a testator having leaseholds gave to his wife " the full and entire .enjoyment" of his real and personal estate for her life, and after her decease he directed his trustees to sell all the leasehold and chattel property (c). So where a testator having > leaseholds and long annuities gave to his wife "the whole income of his property" for her life, " but not to sell without the whole consent of all parties," and at her decease the tes- tator gave a debt owing to him to A. and lOOL 3 per cent, •stock to be " bought in" within three months from his wife's decease to B., and then disposed of the residue (d), So where a testator gave the residue of the stocks and funds that should be standing in his name at his decease to trustees upon trust to pay the interest and dividends thereof to A. for life, and on her decease upon trust for B. and C, and the testator gave a power to the trustees to transfer the stocks and funds into any other funds and bequeathed the residue of his personal estate to A. absolutely, it was held that the long annuities of which the tes- tator died possessed, were to be specifically enjoyed, and that the power given to the trustees was for the security of the property, and was not intended to cut down the specific gift (e). The case of Mills v. Mills {f), is not to be reconciled with MiUs^. jEUg, the foregoing authorities, and is not considered as law. A jtestator gave his freeholds, and leaseholds, stocks in the public funds, and aU other his real and personal estate to trustees upon trust to pay the rents, issues, and profits of his freehold and leasehold estates and the dividends, interest, and proceeds of his money in the funds, and other his said personal estate to (a) Pickering v. Pickering, 2 [c) HarvegY.JTarveg, 5Bea.Y.lSi. Beav. 31 ; 4 M. & C. 289 ; but the [d) Hinves v. Hinves, 3 Hare, will wa? also of a very special eha- 609. raeter. (e) Lord v. Godfrey, 4 Mad. 455. (5) AUock V. Sloper, 2 M. & K. (/) 7 Sim. 501 ; see Oakes v. g99_ Strachey, 13 Sim. 414. 812 IMPLIED CONVEESION. [CH. XXYH. S. 1, £ule as to conversion where property is not "wasting, but of a class not authorised by the Court. A. for life, with remainders over, and a question arose as to the testator's leaseholds, and bank stock. The Vice-Chancellor held that the leaseholds were not to be specifically enjoyed, but must be sold; ■" Unless/' he said, " the bequest is construed as a general bequest the consequence would be that if he had sur- rendered the leaseholds and taken renewals they would not have passed;" but there seems to be some confusion here between a specific bequest and a direction for specific en- joyment (a). Unquestionably, it was a general bequest in "■the sense that the testator meant all the leaseholds he should have at the time of his death to pass, but consistently with this intention, he might declare, as the legal construction apparently was, that aU such leaseholds should be specifically enjoyed. It was rightly decided, that the bank stock should be sold, for it did not fall under the description of " public funds," and therefore, had not been specifically mentioned. There could have been no difficulty in holding, that finder the same clause, part should be specifically enjoyed and part be converted (6). The rule of the Court under which perishable property is converted does not proceed upon the assumption that the testator in fact intended his property to be sold, but is founded upon the circumstance that the testator has intended the perish- able property to be enjoyed by different persons in succes- sion, which can only be accomplished by means of a sale (c). The object of the rule in truth is to secure a fair adjustment of the rights of the tenant for life and those coming after him. Upon similar grounds, therefore, where a residue which is without any express trust for conversion, bequeathed to persons in succession, consists of property which, though not wasting, is of a class producing a high rate of interest in proportion to its money value, and liable consequently to additional risk^ such as railway shares, canal shares, shares of insurance or other companies, foreign bonds or stocks, &c., &c., the persons (a) As to the distinction, see Pickering v. Tickering, 2 Beav. 57 ; 4 M. & C. 299. (J) See Vaughan v. Buck, 1 Phill. 75 ; Bethune v. Kennedy, 1 M. & C. 114. (c) Cafe V. Bent, 5 Hare, 35. PH. XXVII. S. 1.] DIRECTION TO ACCUMULATE. 813 entitled in expectancy have a right to call for the conversion of such property into Three per Cent, stock (a). If a testator direct that his personal estate shall be laid Direction for investment of out in a purchase of lands, to be settled on A. for life, with personal estate remainders over, and that the interest of the personal estate ti^ns of income shall be accumulated and laid out in a purchase of lands to be "^ ^^^ settled to the same uses, the Court to prevent the hardship that would fall upon the tenants for life, if the purchases were protracted for a long period, either from unavoidable circum- stances, or from the dilatoriness of the trustee, interprets the intention in such cases to be that the accumulation should be confined to one year from the testator's death. At the expira- tion of that period, the Court presumes the trustees to be m a condition to invest the personal estate, and gives the tenant for life the interest from that time (.&). So if a testator devise his real estate to be sold and the Devise of real produce thereof, and also the rents and profits of the said estate, trust to sell and in the meantime to be laid out in Bank Annuities or other "'"^est proceeds and rents until securities, upon trust for A. for life, with remainders over, the sale. accumulation of the rents is not extended beyond one year from the testator's death, but the tenant for life is entitled to them from that period (c). From the language used by Lord Eldon, in the case of Produce during, Sitwell V. Bernard {d), (in which the rule, that the accumulation testator's deatk where expressly directed, extends only to one year from the testator's death, was first established), an impression prevailed that in no case was the tenant for life entitled to the produce of the land, or fund to be converted during the first year. Poth Sir John Leach (e), and Sir Thomas Plumer (/), sanc- (o) Thornton v. Elli», 15 Beav. (c) Noel r.- Lord Henley, TSvioe, 193 ; JBUnn v. Bell, 5 De Gex & 241 ; Vickers v. Scott, 3 M. & K. Sm. 658 ; 2 De Gex, Mac. & Gor. 775. 500; and see Vic/or v. Harwood, 12 (6) Sitwell V. Bernard, 6 Ves. Sim. 172 ; GreisleyY. Earl of Ches- 520; and Entwistle v. Marhland, terjield, 13 Beav. 288; Beanlandy, Stuart V. Bruere, cited, lb. 528, Halliwell, 1 C. P. Cooper, t.. Cotten- 529 ; Griffith v. Morrison, cited ham, 169, note (a). 1 J. & W. 311 ; Tucker v.. Boswell, {d) 6 Ves. 520. 5 Beav. 607 ; Kilvington v. Gray, (e) Stott v. Hollingworth, 3 Mad. 2 S. & S. 396; Parry y. Warring- 161. ton, 6 Mad. 155; Stair v. Macgill, (/) Taylor v. JSihhert, 1 J. feW.. 1 Bligh N. S. 662. 308. 814 APPLICATION OF INCOME [CH. XXVII. S. 1. Where funds are in the state they ought to be. Where the proper invest- ment is made before the end of the year. Where the funds are not at the testator's death in the state they ought to be. tioned this doctrine by their authority. However, Lord Eldon had no intention of laying down any such rule (a), and it has since been unquestionably settled that the tenant for life has an interest in the first year's produce (b), varying, however, according to the circumstances of the case, as will appear from the following distinctions. - If a testator desire that his personal estate shall be laid out and invested in Government or real securities (c), or in a pur- chase of lands, with a direction express (d) or implied (e) for the investment thereof in the mean time in Government or real securities, and that the lands to be purchased shall be m trust for A. for life, with remainders over; the produce of the Govern- ment and real securities of which the testator was possessed at the time of his death (these being the very investments con- templated by his wiU), belong from the time of the death to the tenant for life. If, during the first year, the conversion directed by the testator is actually made, the tenant for life is also entitled to the produce of the property, in its converted form, from the time of the conversion, as if land be directed to be sold, and the produce invested in Government or real securities (/), or money is directed to be laid out on land {g), the tenant for life is entitled to the dividends or interest in the fitrst case, from the time of the sale and investment,, and to the rents in the latter case from the time of the purchase, though in the course of the first year. Where, at the death of the testator, the property is not in the state in which it is directed to be, the tenant for life is, before the conversion, entitled, as the Court has now decided, not to the actual produce, but to a reasonable fruit of the property, from the death of the testator up to the time of the conversion, whether made in the course of the first year or («) See Angerstein v. Martin, T. & E. 238; Hewitt v. Morris, lb. 244. (i) MacphersonY. Macpherson, 16 Jur. 847. (c) HeweU v. Morris, T. & R. 241 ; £a Terriere v. JBulmer, 2 Sim. 18. (d) Angerstein v. Martin, T. & R. 232. (e) Caldecott v. Caldecott, 1 T. & C. Ch. Ca. 312, 737. (/ ) La Terriere v. Bulmer, 2 Sim. 18 ; Qibso7i V. Bott, 1 Ves. 89. {g) See Angerstein y. Martin, T. & E. 240. CII. XXVII. S. 1.] ACCEUING BEFOEE CONVEESION. 815 subsequently, as if personal estate be directed to be laid out in Government or real securities, and part of the personal estate consists of bonds, bank stock, &c. (not being Government or real securities), the tenant for life is entitled to the dividends on so much of 3 per cent. Consolidated Bank Annuities as such part of the personal estate, not being Government or real securities, would have purchased at the expiration of one year from the testator's death (a). But of course, if it appear from the terms of the will that Discretion the testator intended to give his trustees a discretion as to the by^thelestator. time of conversion,, which discretion has been fairly exercised, and that the tenant for life was to^ have the actual income until conversion, the case must be governed by the testator's inten- tion, and not by the general rule (&). In Gibson v. Bott (c), a testator directed his personal estate Gitson v. Bott. to be converted into Government or real securities, and the title of some leaseholds being defective they couH not be sold; and Lord Eldon said, they must be considered as property which it was for the benefit of all parties to retain in specie, and decreed the tenant for life to have interest at 4 per cent, from the death of the testator on the value thereof at that time (d). Ajid so in another case Sir J. Parker, Vice Chancellor, observed that when the property was so laid out as to be secure, and to produce a large annual income, but was not capable of immediate conversion, without loss and damage to the estate, there the rule was not to convert the property, but to set a {a) Dimes v. Scott/i Russ. 19S. sonal estate not consisting of Govern- In Douglas v. Congreve, 1 Keen, ment or real seeuiities, on the 410 ; the M. E. gave the tenant for assumption, apparently, that the life the interest of the personal case feU. within the principle of estate making interest from the Gibson v. Bott. In Sutherland v. death of the testator ; but in the Coohe, 1 Coll. 503, under special cir- subsequent cases of Taylor v. Clark, cumstances, 4 per cent, on the value 1 Hare, 161; saai MorganY. Morgan, was also allowed. 14 Beav. 72 ; the authority of Dimes (5) Machie v. Maehie, 5 Hare, 70 : V. Scott was followed. In CaldecoU Wrey v. Smith, 14 Sim. 202 ; Spar- V. CaUecott, 1 Y. & C. Ch. Ca, 312, ling v. Parher, 9 Beav. 524. 737, the Court gave the tenant for (c) 7 Ves. 89. life the actual interest of the mort- (rf) See the decree from Reg. Lib. gages as beiug proper investments, Caldecott v. CaldecoU, 1 T. & C,. and 4 per cent, interest on the per- Ch. Ca. 320.. 816 APPLICATION OF INCOME FcH. xxvn. S. 1. Bents of devised estates. Election. Who may elect. Infante, lunatics, femes covert. Power oi feme eovert over money-land. value upon it, and give to the tenant for life 4 per cent, on such value, and the residue of the income must then be invested, and the income of the investment paid to the tenant for Hfe, but the corpus must be secured for the remainderman (a). If a testator direct his real estate to be sold, and the pro- ceeds to be laid out and invested upon trust for A. for life, with remainders over, the tenant for life is entitled to the rents of the estate from the testator's decease (6) ; and so if the sale be directed on the death of a particular person, the tenant for Ufe is entitled to the rents from the death of that person (c). In connection with the subject of conversion, it wUl be proper to introduce a few remarks upon the doctrine of election ; for where land is to be converted into money, or money into land, the notional conversion will subsist only untU some cestui que trust who is competent to elect, intimate his intention to take the property in its original character (d). The Court will not compel a conversion against the will of the absolute owner; for should the conversion be made, he would immediately recon- vert it, and Equity will do nothing in vain (e). Upon this subject we shall consider : — 1. What persons are capable of electing ; and, 2. In what manner the act of election may be manifested. 1. In respect oi personalincapacity, an infant (/), lunatic {g), or feme covert {h), has no power to make election. " But although," said Lord Hardwicke, " a feme covert cannot alter the nature of money to be laid out in land by contract or deed, yet if the money be invested in land (and {a) Meyer v. Simonsen, 5 De Grex & Sm. 726. (6) Casamajor v. Strode, cited Walher v. Shore, 19 Ves. 390; Suteheon v. Mannington, 1 Ves. jun. 307, per Cur. (c) Fitzgerald v. Jervoise, 5 Mad. 25, of wHch the marginal note does not exactly accord with the report itself. {d) Harcourt Vi Seymour, 2 Sim, N. S. 45 ; Cookson v. JReay, 5 Beav. 22; 12 CI. & Fin. 121; Dixon v. Gayfere, 17 Beav. 433. (c) Seeley v. Jago, 1 P. W. 389. (/) Carr v. Ellison, 2 B. C. C. 56 ; Earlom v. Saunders, Amh. 241 ; Thornton v. Eawley, 10 Ves. 129 ; Van v. Sarnett, 19 Ves. 102 ; Seeley v. Jago, 1 P. W. 389 ; Pad- bury V. Clark, 2 Mac. & Gor. 298 ; and see Ashby v. Palmer, 1 Mer. 301. {g) Ashby v. Palmer, 1 Mer. 296. {h) Oldham v. Hughes, 2 Atk, 452 ; Frank t. Frank, 3 M. & C. 171 ; Me Fozard's Trust, 1 Kay & Johns. 233. CH. XXVII. S. 1.] ELECTION. 817 sometimes sham purchases have been- made for the purpose) (a),; she may then levy a fine of the land, and give it to her husband or any body else. There is a way, also, of doing this without laying the money out in land, and tha,t is,, by coming into a Court of equity, and consenting to take the money as personal estate ; for upon her being present in court, and being examined [as a feme covert upon a fine is] her consent binds the money articled to be laid out in land as much as a fine at law would the land, and she may dispose of it to the husband or any body else. And the reason of it is this — that at law, money so articled to be laid out in land is considered barely as money till an actual investment, and the equity of this Court alone views it in the light of real estate ; and, therefore, this Court can act upon its own creature, and do what a fine at common law can upon land " (b). And at a later date Lord Hardwicke's views were ratified by express decision (c). Now by the 3 & 4 W. 4, c. 74, ss. 40, 71, 77 (cZ), a mar- Fines and Reco- ried woman is enabled, with the concurrence of her husband ^^"^^ " ' and with the formalities required by the Act, to dispose of any estate at law or in equity, or any interest, charge, lien, or incumbrance in or upon lands or money to be laid out in a purchase of lands, or to relinquish or release any power over the same, as if she were a feme sole, so that in the ease of money liable to be laid out in land, a feme covert can, through the medium of the power of disposition conferred by the Act, virtually elect to take the money. And the Act enables- a marAed woman not only to dispose gpedai power of of property which, though personal estate in fact, is real ^eJ^Ki^sand estate in equity (as money to be invested in land), but also of Kecoveries Act . . over money property which is in equity personal estate, provided only it be wMch is an an interest in land,- and this although according to the ordi- ■^tmst miand. nary doctrines of the Court the married woman would, by reason of her interest being reversionary, have no such power of disposition. Thus, where real estate is devised upon, trust for sale in terms amounting to a conversion out and out, and [a) See Henleu y.-Wehh, 5. Mad. (c) SinfordY.Bawden,lYes. jiin. 407. 512. (S) Oldham v. Hughes, 2 Atk, {d) Extended to contingent inte- 453; rests by the 8 & 9 Vict. c. M6, s. 6. 3 o 818 ELECTION. [cH. xxvn. s. 1. a married woman takes a share of the proceeds, she can, unjjer the statute, dispose of her share, even though reversionary, as being an interest in land (a). And it is conceived, that the same principle must apply to the case of a reversionary money legacy raiseable out of land, notwithstanding the doubts enter- tained by Lord Justice (then Vice Chancellor) Knight Bruce, iin the case of Hobby v. Collins (b). Kemainder-men. It has been held that a remainder'man may elect so as to bind the rights " inter se" of his heir and personal repre- sentative, notwithstanding the subsistence of the prior estate. Thus, in Lingen v. Sowray (c). A., on his marriage, agreed to add 700L to the lady's portion of 7001., and the securi- ties for both sums were assigned to trustees, and the money was directed to be laid out in lands to be settled to the use of the husband for life,, remainder to ' the wife for life, remainder to the first and other sons in tail, remainder to the right heirs of the husband. There was no issue of the mar- riage, and 350Z. of the trust-money was called in by the direc- tion of the husband, and placed out upon other securities, and a trust declared, not for the husband and his heirs, but for the husband and his executors and administrators. The husband afterwards died, having devised part of his real estate to his wife, and the residue to J. S., and having bequeathed his personal estate and all his securities for money to his wife. It was debated whether the 2501. ought, as to the operation of the husband's wiU, to be regarded in the light of realty or person- alty. Lord Harcourt said, " M, to the 250Z. which was called in by the testator, and afterwards placed out on securities on a different trust, that shall be taken to be personal estate, foras- much as, there being no issue of the marriage, it was in the power of the husband to alter and dispose of it as against the heir at law, though not as against his wife." But the re- mainder-man can, of course, only elect subject to the right of the owner of the prior estate to call for the actual conversion (o) Briggs v. Chamberlain, 1 1 his Essay on the Real Property Sta- Hare 69; Tuer v. Turner, 20 Beav. tutes, 240. 460. (e) 1 P. W. 172 ; and see Stead v. [b) 4 De Gex & Sm. 289 ; and see Newdigate, 2 Mer. 531 ; Gillies observations of Lord St. Leonards in v. Longlands, 4 De Gex & Sm. 379. CH. XXVII. S. 1.] ELECTION. 818 of the land or money in accordance with the instrument of trust (a) ; and it is conceived that, should this right be insisted, on, the conversion " de facto " would render the intended elec- tion ineffectual. Where an estate is directed to be sold, the proceeds to be Election where . . an estate is to be divided amongst several persons, no one smgly has a right to sold or money is elect that his. own undivid-ed share shall not be disposed of (&), j^,,^^ ^nd several for the other undivided shares will not sell so beneficially in parties are inter- *' ested. proportion as if the estate were entire (c) ; but if money be directed to be laid out in lands to be settled on A., B,.,- and C, as tenants in common, any one of them may elect to take his own third as money, for two thirds may be invested just as advantageously as the whole sum (<^. Sound principle would require that a tenant in tail of lands Tenant in tail may elect. to be purchased should not be allowed to elect, because the interests of the issue and the remainder -man, who both take by title paramount, would otherwise be prejudiced. But the old rule appears to have been, that tenant in tail might in every case have elected, and on filing a bill would have been entitled to the money (e} ; and the principle upon which the practice was grounded was said to be, that Equity will do nothing in vain, and it were nugatory to direct an actual purchase and settle- ment when the tenant in tail the next moment might dispose of the fee simple. Lord Cowper,. however, in the case of CoVwal V. Shadwell (/), took the distinction,, that where the remainder in fee was not vested in the tenant in tail himself, but was limited over to a stranger, there, as the absolute fee could only be acquired by a recovery, which was a thing of time, and could not be suffered in vacation, the remainder-man should not lose his chance ;. and as in that case the tenant in tail did actually die before the recovery was suffered, it showed (a) Gillies v. Longlands, 4 De {d) Seeleyy. Jugo, 1P..W. 389; Grex & Sm. 379. Walker v. Denne, 2 Yes. jun. 182, (b) Holloviay v. Madcliffe, 3 Jur, per Lord Loughtorough. N.S. 198; Fletcher Y-Ashhurner, 1 B. (e) Cunningham v. Moody, 1 Ves. C. C. 500, per Sir T. Sewell ; Beeth 176, per Lord Hardwioke. V. Hah, 2 Moll. 317 ; and see Smith {/) Cited Chaplin v. Horner, 1 V. Claxton, 4 Mad. 494. P. W. 480. (c) Chalmer v. Bradley, 1 J. & W. 59 ; and see Trower v. Knight- ley;,. 6 Mad. 134. 3 Q 2 83X) ELECTION. [CH. XXVII. S. 1. Lord King's doubts. Tenant in tail may elect with- out suit. the remainder-man's interest in so glaring a light, that it established the precedent ever afterwards (a). But even then the money would have been decreed to the tenant in tail, provided the remainder-man waived his right and consented to the payment (6). In Eyre's case (c) Lord Chancellor King was for extending the same protection to the issue, " I cannot see," he said, " why I should not have the like regard to the issue in tail as for the remainder-man. It is possible the tenant in tail, before he can light on a purchase and settle it, may die, leaving issue, and this is a chance of which I would not deprive such issue." And in Speaker Onslow's case{d)., he declared his adherence to the same opinion, observing, that " the levying of a fine also was a thing of time, there being several offices to pass, and the writ of covenant to be under the Great Seal." But the rule which had been uniformly acted upon before his time (e) appears, notwithstanding his Lordship's authority, to have been revived by his successors (/). And the election of the tenant in tail need not necessarily have been made in a suit, but might have been expressed by act in pais, as if tenant in tail with remainder to himself had received the money of the trustee, or if tenant in tail with remainder to a stranger had received it of the trustee with the consent of the remainder-man. Upon this subject Lord Hard- wicke observed, " The Court pursues the rights of parties, and whatever a Court of common law does by a judgment, or Chan- cery by a decree, is in affirmance of those rights, and does not give them a right which they had not before (g). Why does the Court decree the money? Because the parties are entitled (o) See Cunningham v. Moody, 1 Ves. 176; Talbot v. Whitfield, Bunb. 204. (6) See Trafford v. Boehm, 3 Atk. 440. (c) 3 P. W. 13. {d) 3 P. W. 14, note (G). (e) Benson v. Benson, 1 P. W. 130; Short v. Wood, lb. 470; Edwards v. Countess of Warwick, 2 P. W. 173, admitted. (/) Trafford v. Boehm, 3 Atk. 447, ^er Lord Hardwioke; Cunning- ham V. Moody, 1 Ves. 176, per eundem ; Holdernesse v. Carmarthen, 1 B. C. C. 382, per Lord Thurlow ; and see the preamble of the 39 & 40 G. 3, 0. 56. {g) And see Earl of Bath v. Earl of Bradford, 2 Tes. 590. CH. XXVII. S. l.J ELECTION.- 821 to it. There is,, therefore, no occasion for a decree of the Court to destroy the real quality of the money, unless there be an incapacity of the person, as in the case of a feme covert, who must- first be examined" (a). Lord Thurlow, indeed, once said, " If the fund be out- Observation of standing in trustees, and it be necessary to com€ hither in °^ "'^°^' order to obtain it, the money, when obtained, wiU be personal property ; and so it would also, if the trustees pay it without suit. That is, supposing the estate, when purchased, would be a fee simple, for it would he otherwise in case of its being an estate taWQ)). But the concluding remark must have been intended (as Mr. Serjeant Hill, in a note on the passage, has observed (c) ) to apply, not to every tenant in tail, as, not to tenant in tail with remainder to himself in fee, but only to tenant in tail with remainder to a stranger ; for in a subse- quent case, where the tenant in tail had executed an assign- ment of two sums of money directed to be laid out in lands, his Lordship said, "As to the 5001. the assignor was tenant in tail, remainder to a stranger, remainder to himself in fee ; as to the lOOO.Z. he was tenant in tail, with remainder in fee to himself. I am clear, that in regard to the lOOOL he had the absolute dominion over it, having the immediate remainder in fee ; but as to the 6001. I am equally clear the other way, because of the intermediate remainder " (d). By the 39 & 40' G. 3, c. 56 (e), the inability of the tenant in 39 & 40i&. 3, tail (with remainders over), of money to. be laid out in the purchase of land to obtain possession of the money, except through the medium of a fictitious purchase (/), was removed. And the Court was empowered on the petition of the first tenant in tail of such money-land, and of the parties (if any) having antecedent estates therein (with a provision for the separate examination of married women), to order the money to be paid to the petitioners or as they should appoint (g). So (o) Trafford v. Boehm, 3 Atk. [d) Soldernesse v. Carmarthen, 4i8; but see Pearson v. Lane, 17 IB. C. C. 382. Yes. 106. (e) Extended by 7 G. 4, c. 45. (5) Pulteney v. Darlington, 1 B. (/) See Henley v. Wehb, .5 Mad. C. C. .236. 407. (c) lb. note (a), Lord Henley's edit. {g) See5 Ves. 12, Bote (6)astothe 0.66. 833 ELECTION. [CH. XXVII. S. 1. Fines and Keco- veries Act. Whether tenant in tail of money liable to be laid out in land may still elect to take the money. that a kind of statutory power of election was thus conferred on tenants in taU. Now, by the Fines and Eecoveries Act {a), a tenant in tail may, with the consent of the protector, if any, dispose abso- lutely of the lands entailed at any time, whether in term or vacation, and by the 71st section of the statute (6) it is enacted, that "money to be invested in the' purchase of lands to be settled so that any person, if the lands were purchased, would have an estate tail therein, shall be treated as the lands to be purchased, and the previous clauses of the Act shall apply to such money, as if it were directed to be laid out in the purchase of freehold lands, and such lands were actually purchased and settled." Upon the consideration of the late enactments, a doubt suggests itself whether, even at the present day, a tenant id tail may not elect to take in its origiual character money which is liable io be laid out in the purchase of lands, and declare such election either by the iastitution of a suit or by act in pais. It is true that under the 71st clause of the late Act the tenant in tail m^ at any time defeat his issue and the remainder-men by a deed executed with the proper formali- ties; but what is there to prevent him from exercising a power founded upon principles independent of the statute, and so acquiring the fee simple by the mere act of elec- tion ? it may be said that the old rule, which made election a bar to the issue, might have been grounded on this — that, because no fine or recovery -could have been levied or suffered of money (c), the Court, on that account, held election to have the effect of a bar, dest the tenant in tail should lose the power, which the law intended him, of defeating the settle- ment; but that, since by the Fines and Eecoveries Act a tenant dn tail of money may bar his issue and the remainder-man by qualification' introduced by the Court in making orders for payment under this Act. (ffl) 3 & 4 W. 4, c. 74. (b) The preceding section re- peals the 39 & 40 G. 3, c. 56, and -7 a. 4, c. 45. (c) See Benson v. Benson, 1 P. W. 130; Edwards v. Countess of Warwick, 2 P. W. 174 ; Mayn- waring, v. Maynwaring, 3 Atk. 413. CH. XXVn. S. l.J ELECTION. 823 the same formalities as if the lands were actually purchased and settled, the same indulgence ought not now to be shown. But to this it may be answered, that the tenant in tail was allowed to elect, not because the tenant in tail of money had a right to exercise the same powers of ownership as a tenant in tail of lands, but for the purpose of avoiding circuity. Had the former been the principle, the tenant in tail might equally have barred the remainder-man as the issue.; but for the destruction of remainders an actual settlement was necessary, and a sham purchase was often resorted to for the purpose [a). It is, however, clear, that no person being tenant in tail of money to be laid out on land could at the present day be advised, if he would acquire the absolute interest, to dispense with the formalities prescribed by the Fines and Recoveries Act. 2. The act of election either may be presumed by the Court, '^°'^ election may be made. or may be expressly declared. The presumption may arise from slight circumstances of Presumption. conduct (b). Thus it will be sufficient, where land is to be con- verted into money, if the cestui que trust enter into possession and take the title-deeds into his own custody, for the trustees can- not recover the deeds from the cestui ^que trust, and they cannot sell without them (c), or if the cestui que trust merely keep the estate for a length of time unsold {d) (but in one. case a period Possession of.the of two years was considered not to be a sufficient indication of such an intention (e) ), or, where money is to be turned into land, if the cestui que trust receive the money from the i^eeeipt of the ' . -^ "^ .money. trustee (/); but not if he merely receive the annual income though for a considerable length of time (g). (o) See V. Marsh, cited 301 ; Dixon v. Gay/ere, 17 Beav. Chaplin v. Borner, 1 P. "W". 485, 433; ffriesbach y. Fremanth, 17 note (t) ; Maynwaring v. Mayn- Beav. 314. waring, 3 Atk. 413; Henley v. (e) Kirhman v. Miles, 13 Ves. Webh, 5 Mad. 407. 338 ; Cookson v. Goohson, 12 CI. & (6) See Pulteney v. Darlington, Fin. 121 ; but see Crabtree v. Bram- 1 B. C. C. 238 ; Van v. Barnett, hie, 3 Atk. 688 ; Inwood v. Twyne, 19 Ves. 109 ; Bradish v. Oee, Amb. 2 Ed. 148. 229; Dixon v. Gayfere, 17 Beav. (/) Pulteney y. Lord Darlington, 433. 1 B. C. C. 238, per Lord Tburlow; (c) Davies v. Ashford, 15 Sim. Trafford v. Boehm, 3 Atk. 440; 42 ; and see Padbury v. Clark, 2 and see Book v. Worth, 1 Ves. 461. Mac. & Gor. 298. (g) Gillies v. Longlands, 4 De [d] See Ashby v. Palmer, 1 Mer. &ex.& Sm. 372, 824 • ELECTION. [CH. XXVII. S. 1. Change of secu- rities and trust declared to the "executors." Grant of a lease and reservation of rent to the "heirs." Election ex- How money to be turned into land affected by cestui que trmfB will. It was determined by Lord Harcourt that a cestui que trust had divested money of its real quality by causing the securities to be changed, and the trust to be declared to himself and his executors; for this, he observed, was tantamount to saying the money should not go to the heir (a) ; and vice versa, where land was to be converted into money, it was held by Lord Hardwicke, that a lease by the cestui que trust, reserving a rent to her heirs and assigns, was evidence of an intention to con- tinue the property as real estate (6). To constitute an act of election it is not necessary that the person entitled, as for instance, to money to be laid out on land, should know that but for the act of election it would pass as land, but it is sufficient if the Court can collect the intention that with or without such knowledge he meant the money to be dealt with and treated as money (c). A person may express his election, even by parol. This, at least, was the opinion of Lord Macclesfield {d}, and apparently was actually decided in the case of Chaloner v. Butcher (e), in which, the husband having declared the money should not be laid out in land, the Court held, that, if the question concerned the right of a third person, the declarations of the husband ought jQot to be admitted ; but, as it was between his personal and real representative, they should be read. And both Lord Thurlow (/), and Lord Eldon (g), seem to have lent their sanc- tion to the same doctrine, so that an obiter dictum of Lord Hardwicke to the contrary {h}, though supported by so illustrious a name, must be considered as overruled. Where money bore the notional impress of realty, the testator might have bequeathed it as so much money to be laid out inland, and the money would have passed, though the will was not attested (o) Lingen v. Sowray, 1 P. W. 172 ; and see Cookson v. Cookson, 12 CI. & Pin. 121; Harcourt v. Seymour, 2 Sim. N. S. 12. (5) Crabtree v. Bramble, 3 Atk. 680, see 688, 689 j and see Ories- bach V. Fremantle, 17 Beav. 314. ( e ) Harcourt v, Seymour, 2 Sim. X S. 12, see p. 46. (d) Edwards v. -Countess of War- wick, 2 P. W. 174. (e) Cited Crabtree v. Bramble, 3 Atk. 685. (/) jPulteney v. Darlington, 1 B. C. C. 237. ((?) Wheldale v. Partridge, 8 Ves. 236. [h) Bradish v. Oee, Arab. 229. .CH. XXVn. S. 2.] TEUSTEES FOE LUNATICS. 825 according to the Statute of Frauds {a) ; the will operated first by way of election, and then by way of bequest. Now by the late Wills Act (6) the same formalities are required for the testamentary disposition of both real and personal estate. SECTION II. THE ACT OF THE TETJSTEE SHALL NOT ALTEE THE CESTUI WE TETJST'S ESTATE. At law the trustee is the absolute proprietor of the land or Powerofthe fund, and therefore may exercise any control or dominion over ^^ jn^J'uit J it — may convert realty into personalty, or personalty into realty; hut Equity, which regards a trustee as a mere instrument for the execution of the trust, will not permit the interest of the cestui que trust to be affected by any act of misconduct, but, as often as any wrongful conversion is made, will transfer to the new interest the quality and character of the old — will treat real estate as personal, and personal as real, as the circumstances of the case may require. Where the cestui que trust is sui juris, every change in the Wiere the cestui nature of the property made without the authority of the bene- |„yjs. ficial owner, must in general be considered a misfeasance; but with respect to lunacy and infancy it is necessary that some distinctions should be taken. It has been laid down as the general rule in lunacy, that the Power of the Court will not alter the condition of the lunatic's property to ^c^tidq^fnM^ the prejudice of his successors ; but the maxim must be '^ ^ lunatic. received with the qualification, except it he for the benefit of the lunatic himself {c). The Chancellor takes the advice and assistance of the presumptive next of kin and presumptive heir at law in the care and management of the property [d) ; but through all the cases runs this prevailing principle— that (a) See the eases eited, Lechmere (c) Ex parte Orimstone, cited v. Earl of Carlisle, 3 P. "W. 221, Oxenden v. Lord Compton,. 4 B. C. note (C.) ; and see PuUeney v. Bar- C. 235, note, per Lord Apsley. Ungton, 1 B. C. C. 235, 236. (d) Ex parte Phillips, 19 Yes. (5) 7 W. 4. & 1 Vict. 0. 26. \2Z, per Lord Eldon. 8S6 TRUSTEES FOE LUNATICS. [CH. XXVH. S. 2. The interest of the lunatic the exclusive objeot. Timber out on an estate ex parte patemd applied to relief of an estate ex pai'le maternd. Sale of lunatic's real estate. Fall of timber. the object of attention is exclusively and entirely the interest of the lunatic, without any regard to those who may have eventual rights of succession (a). " Nothing," said Lord Loughborough, " would be more dangerous or mischievous than for the Court to consider how it would affect the representatives : there would always be among them an emulation of each other, and their speculations, if the administrator were to engage in them, would mislead his attention, and confine his observation as to the interest of the only person he is bound to protect ; there would be a contiuued running account between the personal and real estates ; the Chancellor would be perpetually looking to the right or left, and the interest of the lunatic would be committed on favour of those who have no immediate interest, and whose contingent interests are left to the ordinary course of events" (b). Upon this principle, where a lunatic was seised ex parte paternd of estate A., and ex parte maternd of -estate B., and the latter was subject to a mortgage, the money arising from a fall of timber upon A. was directed to be applied in discharge of the Vinten, 12 Sim. 161. (6) See In re Bishop Gore's Clia- rities, 2 Conn. & Laws. 411. (e) The tender must have been made by "some person entitled to reqtiire a conveyance." What would amount to such a tender was often a. question. A person duly nominated a new trustee under a power for that purpose was entitled to require a conveyance to give effect to the appointment; In re law, 4 Beav.509. And if the Court decreed a sale with a direction that all necessary parties should join in the conveyance that converted the owner of the estate into a trustee for the purposes of the decree, and if a conveyance settled by the Master had been tendered to him, and he neglected or refused to execute it for twenty-eight days, the Court, on the petition of the pur- chaser or other person interested, ordered a person to convey in the place of the party so neglecting or refusing; Warhurton v. Vaughan, 4 Y. & C. 247 ; BiUing v. Wehh, 1 De Gex & Sm. 716 ; Rohinson v. Wood, 5 Beav.. 246. Note, The refusing trustee need not and ought not to have been served with the petition ; Se Burntree Building So- ciety, 16 Sim. 296 ; and see In re Bradburne, 12 L. J. N. S. Ch. 353. {d) In a. foreclosure suit by an equitable mortgagee of leaseholds, the plaintiff having obtained a decree for sale, the defendant,, the mort- gagoi', was held to have been thereby converted into a trustee for the plain- tiff ; King v. Leach, 2 Hare, 57; and see Be Milfield, 2 PhUl. 254. 838 LORD ST. LEONAEDS' [CH. XXVin. should be uncertain whether the trustee last known to have been possessed as aforesaid should be living or dead (a), or if any trustee as aforesaid, or the executor of any such trustee, should neglect or refuse, &c. (as ia the former clause), it should be lawful for the Court to appoint a person to make a vicarious assign- ment or surrender, such assignment or surrender to be as valid as if made by the trustee or executor. Stock, &o; The tenth section related to inconveniences in respect of stock, and enacted, that where any person in whose name as a trustee or executor (either alone or together with the name of any other person^ or in the name of whose testator (whether as a trustee or beneficially) (b), any stock should be standing, or any other person who should otherwise have power to transfer, or joia with any other person in transferring, any stock to which some other person should be beneficially entitled, should be out of the juri'sdiction or not amenable to the process of the Court (c), or it should be uncertain whether such person was living or dead, or if any such trustee or executor or other person should neglect or refuse{d) to transfer such stock, or receive and pay over the dividends thereof to the person entitled thereto or to any part thereof respectively, for the space of thirty- (a) The words in the preceding D. applied to one executor to prove, clause, " where it should he uncer- who refused, and the other was out tain, where there were several trus- of the jurisdiction. Held to be tees, which of them was the sur- within the Act ; Ex parte Sagger, vivor," were here omitted; for in 1 Beav. 98 ; and see Coc^eK v. Pm^A, respect of chattels the personal re- 6 Beav. 293. From the words "ia presentatives of hath the trustees the name of whose testator," it was might assign, or if there were no ruled that the clause did not apply to such representatives, administration the case of a trustee dying intestate ; might be taken out to both. It was Re Iiunris Charity, 15 Sim. 464. not intended to provide by the Act (c) Where a trustee (one of the for any case which could be reme- plaintiffs in a suit) commanded a died in any other mode ; see In re merchant vessel, and was on his Anderson, L. & G. t. Sugd. 28. voyage to India, it was held he was (J) A person was an executor not out of the jurisdiction within within the meaning of this clause the meaning of the Act ; Hutchinson before probate, if he had not re- v. Stephens, 5 Sim. 498; and see nounced ; see Ex parte Winter, 5 Ex parte Dover, 5 Sim. 500. Euss. 284. (d) Eefusing to transfer for a just A testator gave a sum of consols cause was of course no ground for to A., B., and C, in trust for D. for an application to the Court ; Pepper life. AU. the trustees died, and the v. Tuchey, 2 Jones & Lat. 95 ; Re survivor appointed two executors. Molony, ib. 391. CH. XXVin.] TRUSTEE ACT. 839 one days after request (a) in writing by the person entitled as aforesaid (b), the Court might appoint a person to transfer the stock, or receive and pay over the dividends, such transfer, receipt, or payment to be as effectual as if made by such trustee, executor, or other person. The eleventh section determined the mode of application. Mode of applica- by declaring that every direction or order to be made under the Act should be signified either by an order made in any cause depending in the Court (c), or upon petition in the lunacy or matter (d) ; and where the order was made on petition, declared who, according to the circumstances of the case, should be the petitioner. The fifteenth section provided, that the Act should extend to Cases of trustees trustees having an interest or having a duty to perform, and est, and of the sixteenth and seventeenth made special provision for ^pecifio perform- certain cases of specific performance. The eighteenth section extended the provisions of the Act Cases of con- . . structive trust. to every case of a constructive trust or ot a trust arismg or resulting by implication of law, but where the alleged trustee had or claimed a beneficial interest, no order was to be made until after it had been declared by the Court of Chancery, in a suit regularly instituted in such Court,, that such person was a trustee (e).. And cases of election . and partition were expressly excepted. (a) An order of tlie Court coiild {d) The order could not have been not be construed to be the request made upon motion, instead of peti- of a party ; Madge v. Riley, 3 Y. & tion, where there was no lis pendens ; C. 425. Evelyn v. Forster, 8 Ves. 96 ; Baynes [h) See Re Law, 4 Beav. 509 ; v. Baynes, 9 Ves. 462 ; and see Goekell v. Pugh, 6 Beav. 293 ; and Anon. 1 T. & C. 75. note (e), p. 837, supra. (e) The various orders to convey, (c) Where a suit was depending, &o.,.made under the preceding see- the order might have been made on tions, in oases of decrees for sale in the decree without a petition ; Miller suits by mortgagees and. creditors, v. Knight, 1 Keen, 129 ; Broom v. must be viewed as deriving their Broom, 3 M. & K. 443 ; Walton v. force from this section ; see Pren- Merry, 6 Sim. 328 : overruling dergast v. Eyre, LI. & G. t. Sugd. Fellowes v. Till, 5 Sim. 319 ; Pryth- 11 ; Warburton v. Vaughan, 2 T. arch V. Eamrd, 6 Sim. 9. The & C. 247 ; King v. Leach, 2 Hare, order was also sometimes made on 57 ; Jackson v. Milfield, 5 Hare, motion subsequently to the decree ; 538. From the last case, and Ri Callaghan. v., Egan, 1 Drury & Milfield, 2 PhiU. 254, it appears Walsh, 187. that an express declaration in the. 84:0 THE TRUSTEE ACT, ]850. [CH. XXVIH. Headiam's Act. By the Trustee Act, 1850 (13 & 14 Viet. c. 60), and 1 & 2 Vict. c. 69, the 1 W. 4, c. 60, and 4 & 5 W. 4, c. 23, were repealed, and their provisions consolidated and extended. The chief feature of the Act, in connection with the subject of this chapter, was the authority given to the Court to devest the legal estate out of the person from whom a conveyance might be desired, and vest it in the proper person or persons by the mere order of the Court itself, now familiarly known as a vesting order. Additional facilities were also created for dealing with shares in public companies, and " choses in action " held upon trust. The provisions of this Act having been found defective in some respects, they were again extended by 15 & 16 Vict. c. 55. These two Acts, with the decisions of the Court upon the construction of the different clauses, will be found in externa at the end of the Treatise. decree of the fact of trusteeship was jurisdiction the Act cannot apply; not necessary. Of course if a sale Calvert v. Godfrey, 6 Beav. 97. he directed hy the Court without CHAPTER XXIX. PLEADING AND PRACTICE IN REFERENCE TO THE LAW OF TRUSTS. Undee this head we propose considering, First, The neces- sary parties to suits relating to trusts; Secondly, The order and manner in which trustees and cestuis que trust ought to sue or defend ; Thirdly, Distringas ; Fourthly, Compulsory payment Luto Court ; Fifthly, Receivership ; Sixthly, Costs of suit. SECTION I. OP NECESSAET PAETIES. It will be more convenient, first, to state the general prac- tice, and then to mention the modifications introduced by statutory enactment and the orders of the Court. Suits in equity affecting trusts are either between strangers on the one hand, and the persons interested in the trust on the other; or between the persons interested in the trust inter se. I. In suits by or against strangers it is a general rule (unless General rule In suits by or some enactment or order of the Court make an exception) that against stmngers. all the trustees and cestuis que trust, who together constitute but one interest, must be made parties (a). Thus where a mortgage is made to A. in trust for B., the (a) Bifield v. Taylor, 1 Moll. 198, 1 B. & B. 184, per Lord Manners. jper Sir A. Hart ; Adams v. St. Leger, 842 NECESSAET PARTIES TO [CH. XXIX. S. 1. One cestui gue trust alone can- not foreclose or redeem. Mortgagee coming to fore- close and mort- gagor coming tO' redeem must make all cestuis que trust of the equity of redemp- tion and mort- gage money parties. Legal termor a necessary party. latter cannot file a foreclosure bill without making A. a party, who on redemption would be the person to convey the legal estate {a). And, in the case of a contract to convey to A. in trust for B., the latter cannot sue for specific performance without A., to whom the conveyance of the legal estate, if at all, will be decreed (6). So, one of several cestuis que trust cannot file a bill of foreclosure (c) or redemption (ci) without briaging before the Court the other cestuis que trust who are interested iu the mortgage or equity of redemption. So a mortgagee could not foreclose without making aU the cestuis que trust, claiming under the mortgagor, parties (e) ; and a mortgagor could not file a bill to redeem without bringing before the Court all the cestuis que trust interested in the mortgage (/). However, it was observed by Lord Hardwicke that " where a mortgagee, who had a plain redeemable interest, made several conveyances upon' trust in order to entangle the affairs, and render it difficult for the mortgagor or his repre- sentatives to redeem, there it was not necessary that the plaintiff should trace out all the persons who have an interest in such trust to make them parties " {g}. If A. grant an annuity to B., and vest a term in C. to secure it, A. cannot file a bill against B. to set aside the annuity without making C. a party, for A. might have to institute another suit against C. to get the legal estate, and then B. (who would again be a necessary party) would be doubly vexed (h). (a) Wood V. Williams, 4 Mad. 186 ; SeottY. Nicoll, 3 EUSS..476; Hichens V. Kelly, 2 Sm. & Gif. 264. (J) Cope V. Parry, 2 J. & W. 538 ; Hohson v. Staneer, 9 Mod. 83. (c) Palmer v. Lord Carlisle, 1 S. & S. 423 ; Lowe v. Morgan, 1 B. C. C. 368. Note,. The decree in Mont- gomerie v. Marquis of Bath, 3 Ves, 360, was made without opposition, though it is not expressed (see 1 S. & S. 425) to have been made by con- sent. {d) Palmer v. Lord Carlisle, 1 S. & S. 425, per Sir J. Leaoh; Henley v. Stone, 3 Beav. 355. (e) Calverley v. Phelp, 6 Mad. 229 ; and see Wilton v. Jones, 2 T. & C. Ch. Ca. 244 ; Thomas y. Dunning, 5 De Gex. & Sm. 618 ; Anderson v. Stather, 2 Coll. 209. (/) Osborne y. Fallows, 1 R, & M. 741 ; Whistler v. Webh, Bunb. 53; Tates Y. Hambh/, 2 Atk. 237 ; Brew V. Harman, 5 Price, 319; Wethe- rell V. Collins, 3 Mad. 266. {g) Yates Y. Hamhly, 2 Atk. 237 ; and see Osborne v. Fallows, 1 E. & M. 743. (h) Bromley v. Holland, 7 Ves. 3, p. 11, 12 ; and see Butler v. Pren- dergast, 2 B.. P. C. 170. trustees for creditors. CH. XXIX. S. 1.] SUITS RESPECTING TRUSTS. 843 It was laid down by Lord Redesdale, that " Trustees of real Error in Lord estate for payment of debts or legacies might sustain a suit, Treatise as to either as plaintiffs or defendants, without bringing before the Court the creditors or legatees for whom they were trustees, which in many cases would be almost impossible, and the rights of creditors or legatees would be bound by the decision of the Court against the trustees " {a). But in Harrison y. Steward- son Q)), V. C. Wigram, upon this passage being referred to, observed " that it was impossible to say the practice of the Court was in conformity with the passage which had been cited," and he held, in the case before him, in which the deed was for the benefit of twenty-one scheduled creditors, and only three were before the Court, that it was necessary to make all the creditors parties." Again, it was also said by Lord Redesdale, that " persons Similar error as haying demands prior to the creation of a trust, might enforce absolute power those demands against the trustees without bringing before the "^ disposition. Court the persons interested under the trust, if the absolute disposition of the property was vested in the trustees ; but if the trustees had no such power of disposition, as in the case of trustees to convey to certain uses, the persons claiming the benefit of the trust must also be parties. Persons having specific charges on the trust property in many cases were also necessary parties, but this would not extend to a general trust for creditors or others whose demands were not distinctly specified in the creation of the trust, as their number, as well as the difficulty of ascertaining who might answer a general description, might greatly embarrass a prior claim against a trust property (c). But it is apprehended that an absolute power of disposition in the trustees was not sufficient to dis- pense with the cestvAs que trust, and that in all cases persons having specific charges must have been parties, and that even creditors must not have been omitted as parties altogether, but must have been represented by a few. Assignees of bankrupts and insolvents, however, although quasi trustees, were com- (a) Mitf. Bq. PI. 174, 4 Ed". Burning, 5 De G. & Sm. 618. (5) 2 Hare, 530; and see Holland (c) Mitf. Eq. PI. 176, 4 Ed".. V. Baker, 3 Hare, 68; Tlwmas v. 844 NECESSARY PAETIES TO [CH. XXIX. S. 1. petent to sue or sustain a suit without the presence of the creditors. Suits for Fspecifio In suits for the specific performance of a contract, or to have er ormance. .^ cancelled, upon any ground, the general rule is that the parties to the contract are the only parties to the suit, and therefore if trustees enter into a contract, not as the agents of their cestuis que trust but as principals (though the property of the cestuis que trust is in fact concerned), they may sustain a suit either as plaintiffs or defendants without the presence of the cestuis que trust. And not only is it unnecessary, but in many cases would be highly improper, to make the cestuis qw trust parties (a). But where persons sustaining a fiduciary character enter into a contract not as principals, but on behalf and as the agents of other parties, those other parties as the principals and not their agents are the proper persons to sue (h). Case of marriage In marriage articles the husband and wife and their issue ^° ^^' are all purchasers for valuable consideration, and parties to the contract, and therefore if any agreement had been made in articles with trustees, they alone could not have filed a bill for specific performance without bringing the cestuis que trust before the Court, for the latter being also in fact parties to the contract, if the bill of the trustees were dismissed, might after- wards fide themselves another bill against the defendant for the like purpose (c). Representative Where several persons have united in constituting another stitutedf ™ their representative in a matter for all purposes, there it seems such representative may sue or be sued in the absence of the cestui que trust (d). But the intention to constitute such a representative must clearly appear. For trustees are not themselves owners of the property ; they are in a sense agents for the ovmers in executing the trusts, but they are not con- stituted agents for the purpose of defending the owners against the adverse claims of third parties (e). (o) TFood V. White, 4 M. & C. 184 ; Hook v. Kmnear, 3 Sw. 417, 460; Keon v. Magawly, 1 Dru. & note; /SmaK v.^toootf, Tounge, 457. War. 400; Tasher v. Small, 3 M. & C. (c) Kirk v. Clark, Pr! Ch. 275. 63; Humphreys v. Hollis, Jao. 73; {d) Vernon v. Blackerly, 2 Atk. Waheman v. Duchess of Rutland, 145 ; Bifield v. Taylor, 1 Moll. 193 ; 3 Ves. 233, 504. S. C Beat. 91. (J) Douglas v. Horsfall, 2 S. & S. (e) Hollared ^f. Baker, 3 Hare, 72. CH. XXIX. S. 1.] SUITS EESPECTING TRUSTS. 845 II. Where the suit is between the parties interested in the Suits by parties trust inter se, the rule (where no enactment or order of the " inter se" Court dispenses with it) equally prevails that all the trustees and all the cestms que trust must be before the Court. 1. As to trustees. In suits by cestuis que trust, praying In suits by ccs- relief agaiast their trustees, it is necessary as a general rule against their to make all the <:o-trustees parties {a), on the ground that as ^"ttr are tec*^s^- eaeh co-trustee was liable to the cestuis que trust, a multiplicity sary parties. of suits for the same matter might be avoided, and that the accounts might not be taken twice over; and also that the Court may, if possible, do justice to one defendant by a decree over against a co-defendant (6), and it is the plaintiff's duty so to frame his suit that complete justice may be done without throwing it on the defendant to file a cross bill (c). But it is to be remembered that a decree between co-defendants must always be founded on the proofs in the cause, upon the issue between the plaintiff and the co-defendants, for though one defendant may read against a co-defendant the proofs by the plaintiff as having been examined agaiast all the defendants, he cannot read the answer of a co-defendant [d). It commonly happens that, in a suit by a cestui que trust for -^^^ the same relief against the trustees for a breach of trust, the merits of J-'^o^s^ equities ° between them the case as between the co-defendants are not sufficiently elicited cannot he to authorise the Court to adjust the equities between them, but they are left to institute a future suit inter se for the purpose of obtaining a contribution, or otherwise working out the rehef to which they are entitled. They must nevertheless have been all made parties to the original suit, for although the Court would make no decree between them, it would proceed as far (a) Munch v. Cocherell, 8 Sim. Walker v. Preswioh, 2 Ves. 622'; 219 ; Perry v. Knott, 4 Beav. 179 ; Latouche v. Dunsany, 1 Soli. & Lef. and see In Re Chertsey Market, 6 137, 2 Soh. & Lef. 690 ; Farquhar- PiicejilSiAttorney-Generalr.Nev;- son v. Seton, 5 Unas. 45 ; Conry y.. ~bury Corporation, C. P. Cooper's Kep. Caulfield, 2 B. & B. 255. 1837—38,77; Wilson n.. Brough- (c) See Jones v. Jones, 3 Atk. 112; ton, cited ib. 78 ; but see Walker v. Shipton v. Rawlins, 4 Hare, 623, Symonds, 3 Sw. 75 ; Tarleton v. 624. Hornby, 1 T. & C. 336 ; Humberstone {d) Eccleston v. Skelmersdale, 1 V. Chace, 2 T. & C. 213 ; Attorney- Beav. 396 ; and see Cottingham v. General v. Wilson, Cr. & Ph. 28. Shrewsbury, 3 Hare, 627 ; Lennard (6) See Jones V. Jones, 3 Atk. 112; v. Curzon, 1 De Grex & Sm. 350. 846 NECESSAEY PARTIES TO [CH. XXIX. S. 1. Quasi-trustee a necessary party. Stranger who has dealt with trust fund without notice not a necessary party. Nor purchaser for Talue. Kule different in cases of mere breach of trust and those of "delictum." as it could by declaring the joint liability, and settling the amount of it by accounts taken in the presence of all; and then in a future suit instituted for contribution or other relief, the Court might make its decree upon the basis of the amount so ascertained (a). If co-trustees commit a breach of trust and a third party reaps the benefit, he must also, as a quasi-trustee, be made a defendant, since he is liable to be sued by the cestui que trust, and the equities between himself and the co-trustees ought to be settled so far as is practicable (&). If a trustee transfer a fund improperly to a stranger without consideration and without notice, and the stranger transfer it over either for no consideration or for a valuable consideration not paid to himself, the intermediate assignee need not be made a defendant, for not having had any notice of the trust he cannot be sued personally on the ground of liability, and not having derived any benefit from it there is no property in his hands to be specially attached (c). Of course, wherever the trust estate passes to a purchaser for valuable consideration without notice, it is unnecessary to make such purchaser a party. If a person invested with a fiduciary character be guilty, not of a mere breach of trust or non-performance of a civil obliga- tion, but of a tort or delictum (d), that is, a fraudulent (e) or wrongful (/) act, the remedy might always have been pursued against that person only, without making those who confede- rated with him also parties (g). " In cases of this kind," observed Lord Cottenham, " where the liability arises from the wrongful act of the parties, each is liable for all the conse- (a) See Perry v. Knott, 4 Beav. 180. (b) Burt V. JDennet, 2 B. C. C. 225 ; Perri/ v. Knott, 4 Beav. 1Y9 ; 5 Beav. 297 ; Consett v. Bell, 1 T. 6 C. Ch. Ca. 569. (c) Harrison v. Pryse, Bam. 324; Knye v. Moore, 1 S. & S. 61. {d) See Lingard v. Bromley, 1 V. &B. 117. (e) SieeSeddon v. Connell, 10 Sim. 86. (/) &6e. Attorney- Generaly. Wil- son, 1 Cr. & Ph. 28. {g) Attorney-General v. Wilson, 1 Cr. & Ph. 1 ; Seddon v. Connell, 10 Sim. 68, see p. 86 ; Walburn v. Ingilby, 1 M. &K. 77; and see Charity Corporation y. Sutton, 2 Atk. 406 ; Attorney- General v. Brown, 1 Sw. 265. CH. XXIX. S. l.j SUITS EESPECTING TRUSTS. 847 quences, and there is no contribution between them, and each case is distinct, depending upon the evidence against each party. It is therefore not necessary to make all parties, who may more or less have joined in the act complained of, nor would any one derive any advantage from their being all made defendants, because as the decree would be general against all found to be guilty of the charge, it might be executed against any of them " (a). The cases to which this doctrine has been applied, have been where corporators deserting their duty have made a fraudulent alienation of the corporate property, or certain members of a company have been the means of in- veigling strangers by fraudulent misrepresentations. It is not necessary to bring before the Court the representa- Eepre&entatives ,. e j_ , 1 l_^ t •^^ • _p tit of trustee "wlio tives 01 a trustee who, as the bill is framed, had no concern y^^ j,o interest with the matters in question in the suit (6). In some cases i^o* necessary '■ ' parties. the plaintiff has been allowed to proceed in the absence of the representative of a co-trustee, by waiving all relief which could not be granted in the absence of such representative (c). A person need not be made a party who has merely been Nor a tmstee named a trustee but has disclaimed {d). ^ " '^° ^™^" And the suit may proceed so far as it can in the absence of Nor a trustee ,. «,..,..,, T out of the juris- a trustee who is out oi the jurisdiction («), or cannot be com- , diction. peUed by the utmost process against him to appear to the bill (/) ; or if it be proved to the Court that diligent search and inquiry has been made after him to serve him with process, and that he cannot be found (g). Where a trustee has died insolvent, it is not necessary in a TSTor representa- suit that under other circumstances would cast a liability upon insolvent trustee. the estate of the trustee, as for having joined in a breach of (o) Attorney- General v. Wilson, Ca. Ab. 167; Walleyv. Whalley, 1 1 Cr & Ph. 28. Vern.487; Cowstady. Cely, Pr. Ch. (6) Glass V. Oxenham, 2 Atk. 83. 121 ; Routh V. Kinder, 3 Sw. 144, (/) Butler v. Prendergast, 2 B. P. note ; Slater y. Wheeler, 9 Sim. 156 ; C. 170. Beattie v. Johnstone, 8 Hare, 169. {g) See 3. 49 of tlie Trustee Act, (c) Selyard v. Harris, 1 Eq^. Ca. 1840, re-enacting s. 24 of 11 G. 4, & AL. 74 ; Moon v. Blake, 1 Moll. 284. 1 W. 4, c. 60, s. 24 ; and see Moore {d) Wilkinson v. Parry, 4 Euss. v. Vinten, 12 Sim. 161 ; Heath v. 274; BichardsonY.Hulbert,lAmt. PerauaZ, 2 Bq. Ca. Ab. 167; S. C. 65 ; Creed v. Creed, 2 Hog. 215. 1 P. W. 683 ; Walley v. Whalley, 1 (e) See Morrill v. Lawson, 2 Eq. Vern. 487. 848 NECESSARY PARTIES TO [CH. XXIX. S. 1. Nor trustee of an outstanding term. Nor trustee of a mere equity. Nor a trustee wlio has assigned. Nor a trustee "wlio is a mere agent. Anomalous case. trust, to bring his personal representative before the Court (a). But a trustee, if otherwise a necessary party, cannot be dis- pensed with as a party during his lifetime, on the ground that he is in insolvent circumstances, for the embarrassment may be only temporary, and he may eventually be able to discharge the debt (6). In siiits between parties for the adjudication of their rights to an estate, it is not necessary to have the presence of a mere trustee of an outstanding term (c) , An intermediate trustee of a mere equity need not, except under special circumstances (d), be made a party. Thus A., the cestui que trust of a fund of which the legal estate is in B., assigns his interest to C. in trust simply for D. ; here D. may sue B. for the fund without making C. -a party (e). A trustee who has -assigned his interest over to a new trustee, need not be a party. Thus where A. was trustee for B. for securing an annuity, and B. assigned the annuity to C, and A. assigned- the term to D., it was of course not necessary in a suit to set aside the annuity to make A. a party (/). Where a person mortgaged his reversionary interest in stock, and then assigned it to trustees by a voluntary instrument upon trust for payment of his debts, it was held the trustees were not necessary parties to a foreclosure suit, the deed being defeasible at any moment, and the trustees the mere agents of the mortgagor {g). It has been said that sometimes bills have been brought by a cestui que trust without making the trustee a party, upon the principle of the cestui que trust undertaking for the trustee, who has no personal interest, that he should conform to what decree should be made Qi). But this must be regarded as an anomaly. (a) Seddon Y. Connell, 10 SiiR. 85; Madox V. Jackson, 3 Atk. 406 ; but see Haywood v. Ovey, 6 Mad. 113. (5) See Thorpe v. Jachson, 2 Y. & C. 560, 563 ; Haywood v. Ovey, 6 Mad. 113. (c) Brookes v. Burt, 1 Beav. 106. {d) Scully V. Scully, 3 It. Eq. Hep. 494. (e) Head v. Teynham, 1 Gox, 57; Munch V. Cockerell, 8 Sim. 219 ; and see Malone v. Qeraghty, 2 Conn. & Laws. 249 ; Wliittle v. Halliday, 2 Conn. & Laws. 430 ; Horrocks v. Ledsam, 2 Coll. 208. (/) Bromley Y. Holland, 7 Ves. 11 ; and see Kjvye v. Moore, 1 S. & S. 65 ; Reed v. O'Brien, 7 Beav. 32. [g] Slade v. Bigg, 3 Hare, 35. (A) Kirk Y. Clark, Pr. Ch. 275. CH. XXIX. S. l.J SUITS RESPECTING TRUSTS. 849 If a bill be filed against several trustees but does not seek TrasteeBhip to charge them personally, on the death of one, the trusteeship ^""^^«^- survives, and the representatives of the deceased trustee need not be brought before tke Court [a]-; and the representative of a deceased trustee who was not a party to the breach of trust complained of,, and on whose death the trust-fund devolved on the sm-viving trustee, need not be made a defendant to a suit for recovering amends for the breach of trust against the sur- viving trustee (b). If a person entitled to a share of a fund standing in the One of two names of trustees make a new settlement and appoint new tiustTes may be- trustees, who commit a breach of trust in which the old trustees ^'^^'^• are also implicated, the cestuis que trust under the last settle- ment may have relief, in respect of the breach of trust, against the new trustees without making the old trustees parties (c). 2. It was necessary until recently to have all the cestuis All cestui que- que trust before the Court, in order that the rights of all parties parties^^T"^^ interested might be ascertained, so that future litigation might s^"®'^*! ™'^- be excluded, and that the trustee might not be afterwards harassed for having obeyed the order of the Court (d!)i But the general rule was and is subject to numerous exceptions. If a cestm que trust was abroad, the Court might proceed Cestui que trmt- without him if he was merely a passive party, and the disposi- tion of the property was in the power of those before the Court (e). But if the primary object of the suit be to affect the right of the absent cestui que trust, as in a bill for equitable execution against his estate, the Court wiU not make a decree behind his back, even though the legal iMerest may be vested in some of the defendants (/). In one case liberty was reserved to make alterations in the decree apparently that the absent (a) London Gas Light Company Upson y. Gatty, 6 Hare, 26; Sanne V. Spottiswoode, 14 Beav. 271. v. Stevens, 1 Yem. 110. (6) Simes v. Byre, 6 Hare, 137. (e) Rogers v. Linton, Bimb. 200 ; (c) ilf'(?acAe«v.-Dew, 16Beav.84. and see Willats v. Bushy, 5 Beav. {d) Pyncent v. Pyncent, 3 Atk. 193. 571 ; Adams v. St. Leger, 1 B. & B. (/) Browney. Blount, 2 R; & M. 181 ; Court v. Jeffery, 1 S. & S. 83 ; see Holmes v. Bell, 2 Beav. 105; Manning y. Thesiger, Tih.im; 298; Felly. Brown, 2 B. C. C. Joslingy. Karr,Z'&ea.y.'iS6; Morril 276; Willats y. Busby, 5 Beav. V. Lawson, 2 Eq. Ca. Ab. 167 ; Phil- 193. 3 I 850 NECESSAEY PARTIES TO [CH. XXXX. S. 1. Cestui que trust standing out process. Or assigning his interest. Ca^e of a cestui que trust of an aliquot sliare of a fund. cestui que trust might, if so advised, apply by potition to have the decree amended (a). In another case where one of the cestm que trusts was abroad and could not be found, the Court, though the right of that cestui que trust was involved, directed a conveyance of the estate, but without prejudice to any right or interest which might be claimed by that cestui que trust (b). A suit might proceed in the absence of a cestui que trust if process was made against him to a sequestration, and he could not be compelled to appear (c). If a cestui que trust assign his interest over, the original cestui que trust need not be a party to a suit instituted by the assignee (d). A cestui que trust, entitled to a distinct aliquot share of an ascertained fund, might file a bill against the trustee of the fund for the transfer of that share without making the cesbuis que trust of the residue of the fund parties (e). But where a plaintiff was entitled to an aliquot share not in an ascertained and existing fund, but in one for which the defendant was liable to account, he must have made the persons entitled to the other aliquot shares parties (/). And it has been observed that suits for aliquot shares, without making the other persons interested parties, are not to be encouraged as being iacon- ve'nient {g). Exceptional cases. Suit to recover a trust found. III. Certain exceptional cases depending upon considerations equally applicable to suits between the trust estate on the one hand, and strangers on the other, and to suits between the trustees and cestuis que trust, inter se, remain to be considered. Where a breach of trust has been committed, it is competent to one or more of the trustees at any time to institute a suit against the person liable to make good the fund without making {a) Attorney- General v. Bailiol College, 9 Mod. 407 ; see 409. (b) Willats V. Bushy, 5 Beav. 193. (c) Downs V. Thomas, 7 Ves. 206 ; Phillips v. Duke of Bucking- ham, 1 Vern. 228. {d) Goodson v. ElUsson, 3 Russ. 583. (e) Smith v. Snow, 3 Mad. 10; Hutchinson v. Townsend, 2 Keen. 675 ; Hughson v. Cookson, 3 T. & C. 578; Perry v. Knott, 5 Beav. 293. (/) Lenaghan v. Smith, 2 Phil. 301 ; Alexander v. Mullins, 2 R. & M. 568. {g) Hutchinson v. Townsend, 2 Keen. 678, per Lord Langdale. CH. XXIX. S. 1.] SUITS BESPECTING TRUSTS. 851 the cestvAs que trust parties. It may be objected, that, as a suit by the cestms que trust would also clearly lie in such a case, the defendant would thus be liable to be twice vexed for the same matter. However, the rule from its great convenience has been repeatedly recognised, and may be considered established {a). Where the cestuis que trust are so numerous a body that the where cestuis suit could not possibly, or at aU events conveniently, proceed, tremXnumer- if all were required to be parties, the Court wiU, in accordance °^> ^°™^™?y„ sue on behalf of with its ordinary practice where numerous parties have a all. common interest, permit some of the cestuis que trust to sue on behalf of the rest and as their representatives (b). So where eestvis que trust are exceedingly numerous, a small So some ma^ number may be made defendants as representatives of the rest behalf, &o, for the purpose of binding their rights (c).. But in such cases if all the cestuis que trust be not parties, the trustees must be so {d). In many cases the plaintiff cannot have complete relief in the absence of the general body, as where they ought all to join in a conveyance; but even here if the plaintiff proceed against a few as defendants, the Court will go as far as it can by binding the rights of all in equity (e). In order to enable some to sue on behalf of themselves and Requisites to _ . „ , . . , entitle some to others, it must appear that the relief sought is m its nature sue on behalf, &c.. beneficial to all those whom the plaintiif undertakes to (a) Franco v. Franco, 3 Ves. 75 ; Dock Company, 11 Sim. 327; Brom- May V. Selhy, 1 T. & 0. Ch. Ca. 235 ; Uy v. Smith, 1 Sim. 8 ; Walworth v. Bridget v. Hames, 1 Coll. 72 ; Nolle Solt, 4 M. & C. 619 ; Attorney- V. Meymott, 14 Beav. 471 ; Peaks General v. Heelis, 2 S. & S. 67 ;: v. Ledger, 4 De Gex & Sm. 137 Groom v. Booth, 1 Drewry, 567 Sorsley' v. Fawcett, 11 Beav. 565 Chancellor v. Moreoraft, ib. 262 Taylor v. Salmon, 4 M. & C. 134. (e) Adair v. New River Com- pany, 11 Ves. 429, see pp. 443, 444, 445 ; City of London v. Richmond, Hughes v.. Key, 20 Beav. 395; Bay- 2 Vem. 421 ; Meux v. Malthy, 2 Sw„ nard-v. Woolley, ib. 583. 277; Bunnett Y.Foster, 7 Beav. 540; (J) Chancey v. May, Pr. Cb. 592 Manning v. Thesiger, 1 S. & S. 106 Weld V. Bonham, 2 S. & S. 91 Survey v. Harvey, 4l Beav. 215 Harvey v. Harvey, 4 Beav. 215, 5 Beav. 134 ; Milbank v. Collier, 1 CoU. 237. {d) Holland v. Baker, 3 Hare, 68. and see Lloyd v. Loaring, 6 Ves. (e) Meux v. Maltby, 2 Sw. 285 ; 773 ; Cockhurn v. Thompson, 16 and see Powell v. Wright, 7 Beav.. Ves. 321 ; Hiehens v. Congreve, 4 449, 450. Russ. 562; Preston v. Grand Collier 3 I 2 853 NECESSAEY PABTIES TO [CH. XXIX. S. 1. What number sufficient to dis- pense with necessity for making all parties. represent (a). And the frame of the suit must not involve any matter of contest between the plaintiff and the parties represented by him inter se (6). What number was large enough to induce the Court to dispense with the rule requiring all to be made parties has never been exactly defined. It was held in one case that where the cestms que trust were twenty, they ought all to be brought before the Court (c). But in two other cases where the original cestuis que trust were twenty-seven and twenty-six in number respectively, and bills were filed 20 and 17 years respectively after the dates of the respective deeds of trust praying performance of the trusts, it was held that some of the cestuis que trust could maintain the suits on behalf of them- selves and all others (d). SOth Order of Augnst, 1841. Decisions on the 30th Order. IV. The practice of the Court has now been considerably varied by certain special enactments, and by the General Orders of the Court which we proceed to consider. By the 30th Order of 26th August, 1841, it was provided that in all suits concerning real estate, which is vested in trustees by devise who were competent to seU and give dis- charges, such trustees should represent the persons beneficially interested in the real estate, in the same manner as executors and administrators represent the persons beneficially interested in the personal estate. Upon the construction of this clause it was held that devisees in trust for sale, subject to a charge of debts, being also executors, though without an express power of signing receipts, were within the meaning of the Order (e). But that it {a) Jones v. Del Rio, cited At- torney- General v. Heelis, 2 S. & S. 76 ; 8. C. T. & E. 297 ; Gray v. Chaplin, 2 S. & S. 267; see 272; Bainlrigge v. Burton, 2 Beav. 539 ; Long V. Yonge, 2 Sim. 385 ; Rich- ardson v. Larpent, 2 T. & C. Ch. Ca. 507. (5) Evans v. Stokes, 1 Keen, 24 ; JBainbrigge v. Burton, 2 Beav. 539 ; Richardson v. Larpent, 2 T. & C. Ch. Ca. 507; Newton v. Earl of Egmont, 4 Sim. 574 ; 5 Sim. 130 ; see 137. (c) Harrison v. Stewardson, 2 Hare, 533. The bill in this case was by a judgment creditor claiming priority over the cestuis que trust and praying a sale. (d) Smart v. Bradstock, 7 Beav. 500 ; Bateman v. Margerison, 6 Hare, 496. (e) Savory v. Barber, 4 Hare, 125. CH. XXIX. S. 1.] SUITS EESPECTING TRUSTS. 853 did not apply where the trustees had not an absolute power of sale but only with the consent of another person {a), or where the trust for sale was not immediate, but to be exercised on the death of a tenant for life (6), or where the equitable estate only, and not the legal estate, was vested in the trustees by the will(c). Where the trustees took the estate in the manner required by the Order, they sufficiently represented the interests of the cestuis que trust in adverse suits between strangers on the one hand, and the privies to the trust on the other (d). But where the suit was one for the adjustment of the rights of the cestuis que trust, inter se, as a suit for the general administration of a testator's estate, the order did not apply («); though legatees whose legacies were charged merely on real estate devised so as to faU within the order were not necessary parties (/). The 32nd Order of 26th August, 1841, declares that a plain- 32nd Order of tiff having a joint and several demand against several persons, ' either as principals or sureties, may sue without bringing before the Court all the persons liable, but may proceed against one or more of the persons severally liable. This order has been construed to embrace within it, and Decisions on the 32nd Order. mdeed was introduced expressly to meet the case of co-trustees concurring in a breach of trust ( ; > j j e, > the 15 & 16 Vict, or next of kin, may have a decree for the administration of the ' ■ ■ personal estate, without making the other residuary legatees or next of kin parties. By rule 2, any person interested in a legacy charged upon or to be paid out of the proceeds of real estate, may have a decree for administration of the estate without serving the other persons interested. By rule 3, any residuary devisee or heir may have the like decree without serving any co-residuary devisee or co-heir. By rule 4, any one cestui que trust may have a decree for administration of the trust without serving the other cestuis que trust (/). By rule 5, in suits for protection of property pending litigation, and in matters of waste, one person may sue on behalf of all others having the same interest. By rule 6, any executor, adminis- trator, or trustee may obtain a decree for administration against any one legatee, next of kin, or cestui que trust. But by rule 7, the Court in the above cases may require any other persons (o) Perry v. Knott, 4 Beav. 179 ; (c) London Gas Light Company 5 Beav. 297 ; Shipton v. Rawlins, v. Spottiswoode, 14 Beav. 264. 4 Hare, 619 ; Jesse v. Bennett, 2 {d) Fussell v. Elwin, 7 Hare, 29. Jur. W. S. 964, 6 De Gex, Mao. & (e) Attorney- General v. Bew, 3 Gor. 609. De Gex & Sm. 488. (J) JBiggs v. Penn, 4 Hare, 469 ; (/) Jones v. James, 9 Hare, SallY. Austin, 2 Coll. 571. Append. Lsxx. CH. XXIX. S. l.J SUITS RESPECTING TRUSTS. 855 to be made parties. And by rule 8, in all the foregoing cases, the decree when made must be served on all the persons who, according to the practice of the Court at that time, and independently of the Act, would be necessary parties. By rule 9, in all suits concerning real or personal estate Eule 9. vested in trustees under a will, settlement, or otherwise, such trustees shall represent their cestms que trust in the same manner as executors or administrators represent the persons beneficially interested in the personal estate. But the Court may direct the cestms que trust to be made parties. It is to be observed upon these rules, that although in a General working large proportion of cases the old difficulties as to parties are removed down to the hearing, yet rule 8 still renders a reference to the old practice necessary, though at a different stage of the cause. Rule 9 is much more comprehensive than the 80th Order of Decisions on 26th August, 1841, as it comprises trustees appointed not only by a will but by any instrument, and is not confined to trustees for sale merely, but extends to all trustees in whom the estate is vested. It has been held under this rule that trustees can sufficiently represent their cestuis que trust even in redemption {a) and foreclosure suits (&). But it is discre- tionary with the Court whether the cestuis que trust shall or not be made parties. "Where the trustees fiU the double character of executors and devisees in trust of the mortgagor, and thus may be supposed to have funds applicable for the purpose of redeeming, the Court is disposed to dispense with the presence of the cestuis que trust (c) ; but where the trustees are trustees of a settlement merely (d), or where the Court for other reasons views the trustees as inadequate representatives, it refuses to adjudicate in the absence of the cestuis que trust (e). And where a bill was filed by a settlor to set aside a settlement as ha%T.ng been fraudulently obtained by the trustees, it was (a) Stansfield-v.Sobson, 16 'Bea,Y. (c) Hanman v. Riley, 9 Hare, 189. Append, xl. (i) Sale V. Kitson, 3 De Grex, Mao. (d) Goldsmid v. Sionehewer, 9 & Gor. 119; Hanman v. Hiley, 9 Hare, Append, xxxviii. Hare, Append, xl. (e) Cropper v. Mellersh, 1 Jur. N. S. 299. 856 OF THE OEDEE AND MANNER [CH. XXIX. S. 2. held that the trustees (one of whom was entitled beneficially under the settlement to one -twelfth of the trust fund, subject to a life interest in the plaintiff), could not be treated as sufficiently representing the cestms que trust for the purposes of the suit (a). By the 47th section of the same Act any creditor or person interested under the will may apply at chambers for an order of administration where the whole real estate is by devise vested in the trustees, who are empowered to sell, and authorised to sign receipts for the rents and profits and produce of sale (&). By the 51st section the Court may adjudicate upon questions in the presence of some only of the parties interested (c), and as to a portion only of the trust restate {d), and without taJdng the accounts. SECTION II. OF THE OEDEE A-ND MAlOfEE IN WHICH THE TEITSTEES AND CHSTT7IS WE lETJST OITGHT TO APPEAE ITPON THE EECOED, AS WSETHEE JOINTLY OR SETEEAILT AS PLAINTHTS OE DEFENDANTS. In a contest between the trust on the one hand, and a stranger on. the other, the trustees and cestuis que irMsJ represent but one interest, and costs must not be multiplied unneces- sarily by the severance of them in the suit. It was said by Sir Anthony Hart, that a cestui que trust about Sir A. Hart's *° ^^® ^^^ ^^^' o^g^^ to ^Pplj to his trustee to allow Ids name to statement of the be used as a co-plaintiff. This (he said) the trustee is bound to proper course. comply with upon being indemnified against costs. Should the trustee refuse, he would be departing from his duty, and in such a case would not he entitled to his costs when made defendant, in consequence of his refusal. But where no application is made to the trustee to permit his name to be used as co-plaintiff, he is in no default, and the cestui que trust would (a) Bead v. Prest, 1 K. & J. 183. (c) See Doody r. Higgins, 9 Hare, (6) See the decisions on the 30th Append, xxxii. order of August, 1841, the language {d) Prentice y. Prentice, 10 Hare, of which is similar, p. 852, supra. Append, xxii. CH. XXIX. S. 2.] OP SUING AND DEFENDING. 857 be bound to pay the costs of the trustee for his unreasonable negligence in not having required the trustee to be co- ■ plaintiff (a). And where there is a just ground of suit, it is the duty of a trustee to allow himself to be made a co- plaintiff (&). Upon the same principle, where a trustee and cestui que Trustee and trust are made defendants in the same right,, as they have an ought to 'ot^k. identity of interest they ought not to split the defence, and file defence. separate answers (c) ; not that a trustee and his cestui que trust can be compelled to join in their defence {d) ; but if they do not they wiU be mulcted in costs, as only one set of costs will be decreed against the plaintiff (e). In suits between trustees and cestuis que trust, inter se, In smts •' iruer it is equally the rule .that all the cestuis que trust in the same Tt'I^Z^'^^T interest should sue as co-plaintiffs (/) ; or if the bill is by a i^terest^shouid ■^ ^■' ' ■' join as plaintiffs., trustee that he should join his co-trustees with him, unless there be some special circumstance demanding a severance. So, as a general rule, in. suits of every description, joint Trustees shonld trustees should make a joint defence, and if they put in sepa- ^ ^° i°™ -?' *• rate answers, one set of costs only wiU be allowed, which, if^ they be equally ha, fault, will be apportioned amongst them (g).^ But if there be two trustees, and one be willing to join, and the« other refuse, who afterwards puts in an answer, and shows no reason for his refusal, the single costs allowed will be given ' exclusively to the trustee who expressed a willingness to join (Ji). And where two trustees severed in their defence one of whom was charged vsdth misconduct, the Court held that the innocent trustee was justified in severing, and while allowing one set of costs gave the whole of them to him (i). However, (a) Reade v. Sparhs, 1 Moll. 8, Soman v. Hague, X Moll. 14 ; Oal- 11; but i6e Browne v. Lockhart, 10 way v. Butler, 1 Moll. 13. Sim. 426. (/) See noshing v. Nieholls, 1 Y. (J) Hughes v. Keg, 20 Beav. 395. & C. Ch. Ca. 478. (c) Reade v. Sparhs, 1 Moll. 10, {g) Nicholson v. Falhiner, 1 MolL 12, per Sir A. Hart ; Woods v. 559, per Sir A. Hart ; Gaunt v. Woods, 5 Hare, 229 ; Farr vi Taylor, 2 Beav. 34Y, per Lord Lang- Sheriffe, 4 Hare, 528. dale. {d) Van Sandau v. Moore, 1 Russ. {h) Young v. Scott, 1 Jones' Ir. 441; reversing yS. 0. 2 S. & S. Exci. 71 ; andsee ^ifornsy-G^mej-o^ 509. v. Cuming, 2 T. & C. Ch. Ca. 156. (e) Cuddy y. Waldron, 1 Moll. 14; (i) Webh v. WeU, 16 Sim. 55. 858 DISTEINGAS. [CH. XXIX. S. 3'. "Bow feme covert cestui que trust should sue and defend. where the Court sees there is a substantial reason for it, as where one trustee has a personal interest which conflicts with his duty as trustee, or where one can admit facts which the other believes not to be true (a), or where the co-trustees reside at such a distance from each other that a joint answer is impracticable (6), or where other special grounds exist (c), the several trustees will be allowed to put in separate answers, and each will be allowed his full costs. A feme covert entitled to her separate use cannot join her husband as co-plaintiff, but must sue by her next friend, making her husband a defendant, who, under such circumstances, will be entitled to his costs {d) ; and if she be made a defendant in respect of such an interest, she should obtain an order to defend separately (e). But the mere fact of a feme covert living apart from her husband, does not entitle her to appear sepa- rately at the costs of a trust estate under administration, where the interest which she claims is not settled to her separate use(/). SECTION III. Danger to whicli stock, &c., ex- posed, in conse- quence of legal title only being recognised. OF BISTEnfGAS. In the case of stock transferable in the hooks of the Bank of England, and also in the case of the stock and shares of many other public companies, no obligation exists on the part of the bank or public company to look beyond the title of the legal holder. The modern form of legislative enactment on the subject is usually to the effect that the company " shall not be {a) Gaunt v. Taylor, 2 Beav. 346. (J) Aldridge v. Westbrook, 4 Beav. 212 ; Dudgeon v. Cormley, 2 Conn. & Laws. 422 ; Nicholson v. Falkiner, 1 Moll. 560; Wiles v. Cooper, 9 Beav. 294 ; but see Farr v. Sheriffe, 4 Hare, 528. (c) Anon, case, cited Barry v. Woodham, 1 Y. & C. 538 ; Nicholson V. Falkiner, 1 Moll. 555, see 560; Reade v. Sparkes, 1 Moll. 10, per Sir A. Hart ; Kampf v. Jones, C. P. Cooper's Eep. 1837—38, 13; and see Walsh v. Dillon, 1 MolL 13. (<^) Thorhy v. Yeats, 1 T. & C. Ch. Ca. 438. (e) See Norris v. Wright, 14 Beav. 303 ; and p. 633, supra. (/) Oareyv. Whittingham,6Beav. 270 ; and see Barry v. Woodham, 1 Y. & C. 538. CH. XXIX. S. 3.] DISTMNGAS. 859 bound to see to the execution of any trust, whether express, implied, or constructive " (a). Where, therefore, property of this description is held upon trust, the interests of the cestui que trust are peculiarly liable to be endangered by the dis- honesty of the trustee ; and, indeed, but for the means of pro- tection now about to be explained, would be almost entirely at his mercy. The distringas was originally a process of the equity side Origin of the (now abolished) of the Court of Exchequer for compelling tringas. the appearance of a corporation to a bill filed, but formerly it was a common practice, more particularly in any emergency, to issue a subpoena before the bill was actually on the file. When, therefore, a party sought to restrain a transfer of stock, before he filed the bill against the holder of the stock and the bank (who were then necessary parties), to prevent any mischief in the interim he served process immediately on the secretary of the bank to appear to the bill. But as the form of distringas gave no information as to the stock to be restrained, the distringas was accompanied with a notice in writing, which specified the stock, and required the bank not to permit the transfer. The effect of this was, that if the holder of the stock applied to the bank to make a transfer, the bank immediately forwarded a notice to the party issuing the distringas, that unless he actually filed a bill, and obtained and served an injunction before a certain day, they should permit the transfer to be made. The 4 Anne, c. 16, s. 22, declared that no subpoena or other Practice con- process for appearance should issue until after the bill was standing"* Anne filed; and the 39 & 40 G. 8. c. 36, enabled suitors to obtain an «■ l^and 39&40 • ■ , • , , ■ , G. 3, c. 36. injunction against the bank, without makmg the bank a party. However, in practice the distf-ingas still continued to be served on the bank, and the same attention was paid to it in not allowing a transfer. The convenience of the distringas was so sensibly felt, from Process trans- the frequent necessity of laying an embargo upon stock at a eery on the '*"' moment's notice, that when the 5 Vict. c. 5, abolished the ^°^^^°'^ of tlie Equity- equity side of the Exchequer, it was thought expedient to Excheijuer. (a) 8 Vict. c. 16, s. 20. 860 DISTRINGAS. [CH. XXIX. S. 3. Additional remedy given ty 5 Viet. c. 5, s. 4. Practice nnder the 4th section. Transfer of the old Writ of Distringas. transfer the process to the Court of Chancery, and enlarge the remedy. Accordingly, by section 4 of the Act referred to, it was by way of additional remedy enacted, that " it should be lawful for the Court of Chancery, upon the application of any pa/rty inte- rested, by motion or petition, in a summary way, without hill filed, to restrain the Bank of England or other company, whether incorporated or not, from permitting the transfer of any stock in the public funds, or any stock or shares in any public company,, or from paying any dividend or dividends due or to become due thereon ; and every order of the Court upon such motion or petition should specify the a/mount of the stock, or the particular shares to be affected thereby, and the name or names of the person or persons, body politic or corpo- rate, in which the same should be standing." An application to the Court under this section must be founded upon an affidavit verifying the special grounds upon which it proceeds {a). And when the order has been made, as it was not the intention of the Legislature to do more than protect the stock until the party could assert his right in the ordiuary way, if the opposite party move to dissolve the injunc- tion, and the Court sees that there has been great neglect on the part of the person who obtained the order, and that any extension of time would be oppressive to the party restrained, it will not as of course give further time for filing the biU. (6). When a bUl has been filed, and an answer put in, and the defendant moves to discharge the restraining order, the plaiatiff may file affidavits in opposition to the answer, and is not con- fined to the merits disclosed in the answer (c). By section 5 of the Act it is thus enacted " In the place and stead of the Writ of Distringas, as the same has been heretofore issued from the Court of Exchequer, a Writ of Distringas in the form set out ia the schedule to the Act shall be issuable from the Court of Chancery, and shall be sealed at the subpoena (a) Ux parte Field, 1 Y. & C. Ch. Ca. 1 ; Me Marquis of Hertford, 1 Hare, 586. (h) In re Marquis of Hertford, I Hare, 584. See same case, 1 PMl 203. ,(c) In re Marquis of Hertford, 1 Phil. 203. See now 15 & 16 V. c. 86, s. 59. CH. XXIX. S. 3.] DISTRINGAS. 861 office, and the force and effect of such writ, and the practice under or relating to the same, shall be such as is now in force in the said Court of Exchequer ; Provided, nevertheless, that such writ, and the practice under or relating to the same, and the fees and allowances in respect thereof, shall be subject to such orders and regulations as may, under the provisions of this Act, or of any other Act now in force, or under the general authority of the Court of Chancery, be made with reference to the proceedings and practice of the Court of Chancery." In the schedule to the Act, the form of the writ is as follows : Form of new " Victoria, &c., to the Sheriffs of London greeting. We com- ^"*" mand you that you omit not, by reason of any liberty, but tbat you enter the same, and distrain the Governor and Company of the Bank of England by aU their lands and chattels in your bailiwick, so that they, or any of them, do not intermeddle therewith until We otherwise command you; and that you answer us the issue of the said lands, so that they do appear before us in our High Court of Chancery on the day of , to answer a certain bill of complaint lately exhibited against them and other defendants before us in our said Court of Chancery by complainant; and further, to do and receive what our said Court shall then and there order in the premises, and that you then leave there this writ. Witness &c." The Act, as we have seen, empowered the Court to regulate Orders of the ,•, ,. i? ii. J- J • J J • J • Court of Chau- the practice oi the distringas, and orders were issued m conse- ^gry regulating quence to the following effect : — practice. 1. That any person claiming to be interested in any stock Writ, transferable at the Bank of England may by his solicitor prepare a writ of distringas in the form set out in the schedule to the Act, and present the same for sealing at the subpoena office (a). 2. That such person must, before the writ is sealed, leave at Affidavit. the subpoena office an affidavit sworn by him or his solicitor, in the following form (&) : — (a) 1 Order of 17 Nov. 1841, 3 1841, correcting the form of affidavit Beav. ixxiii. at the foot of the Orders of the 17 (6) 2 Order of 17 Nov. 1841, 3 Nov. 1841, ib. xxxviii. Beav. zxxiii; and Order of Dee. 10, 862 DISTRINGAS. [CH. XXIX. S. 3. Form of Affidarit. Discharge of ■writ. Eifect of service of writ. Affidavit to be filed. Present practice as to obtaining and serving writ. " A. B." (the name of the party or parties in whose behalf the writ is sued out) " v. the Governor and Company of the Bank of England." " I , of ■ , do solemnly swear, that, according to the best of my knowledge, information, and belief, I am" (or if the affidavit is made by the solicitor, "A. B. of ■ •, is) beneficially interested in the stock hereinafter particularly described, that is to say" (here specify the amount of the stock to be affected by the writ, and the name or names of the person or persons, or body politic or corporate, in whose name or names the same shall be standing). 3. That such writ of distringas, and all process thereunder, may be discharged by order of the Court, to be obtained, as of course, by the party on whose behalf the writ was issued ; and to be obtained upon the application by motion or petition of any other person claiming to be interested in the stock sought to be affected. And power is given to the Court to deal with the costs as may seem just (a). 4. " That the bank having been served with such writ of dis- tringas, and a notice not to permit the transfer of the stock in such notice and in the said affidavit specified, or not to pay the dividends thereon, and having afterwards received a request from the party or parties in whose name or names such stock shall be standing, or some person on his or their behalf, or representing him or them, to allow such transfer, or to pay such dividends, shall not by force, or in consequence of such distringas, be authorised without the Order of the Court to refuse to permit such transfer to be made, or to withhold pay- ment of such dividends for more than eight days after the date of such request" (b). 5. That the patentee of the subpoena office shall cause the affidavit to be filed and registered at the office of the clerk of the affidavits (c). The present course, therefore, is this. The solicitor of the party seeking the distringas prepares a writ of distringas in (a) 3 Order of 17 Nov. 1841, 3 Beav. xxxiv. (J) 4 Order, ib. xxxiv. (c) 5 Order of same date, 3 Beav. xxxiv. CH. XXIX. S. 3.] DISTRINGAS. 863 the form required by tlie Act, and the party or his solicitor swears an affidavit in the form required by the general order. The writ and affidavit are then taken to the subpoena office, the former to be sealed, and the latter to be left for filing. A notice in writing is then prepared that the bank is not to permit the transfer of the stock or payment of the dividends upon which the restraint is sought, and the distringas and notice are then served on the secretary of the bank. The result is, that when the holder of the stock requests a transfer of the stock or payment of the dividends, the bank immediately forwards a notice to the party who issued the distringas, that unless he file a bill and obtain and serve an injunction within eight days from the date of such request, the transfer or pay- ment will be made; The party must, of course, be then upon the alert to file a bill and obtain and serve the injunction before the eight days have expired. Between the remedy given by the 4th section and that given Distinctions by the 5th section of the Act, the following distinctions exist, between remedies •' _ ' _ ° under the 4th & The former applies not merely to stock in the funds, but to 6th sections of stock and shares of public companies, whether incorporated or not; while the latter (whether intentionally or not may be doubted) is, by the joint effect of the schedule to the Act of Parliament and of the orders of the Court of Chancery before referred to, confined to stock transferable at the Bank of Eng- land. Again, the distringas under the 6th section may be, and is in fact, frequently obtained,^ not from any fear of immediate danger, but as a general safeguard merely (a) ; whereas a special case must be made in order to obtain a restraining order under the 4th section (6). It is, indeed, much to be regretted that this extremely useful process should be limited in its application to stock in the public funds and government annuities. As respects stock in the funds, the distringas under the 5th Both remedies section, and the restraining order under the 4th section, may afailaWe m the both occasionally be resorted to should circumstances require it ; for the adoption of either remedy is not an election of the (a) See Utty -v. Bridges, 1 Y. & C. (6) Kote (o), p. 860, supra^ Ch. Ca. 486. 864 COMPTJLSOEY PAYMENT INTO COUET. [CH. XXIX. S. 4. one to the exclusion of the other (a). " The 4th clause," said Sir J. Wigram, " was intended for interim purposes to protect stock until the party claiming it should have an opportunity of asserting his rights by bill in the ordinary way, an oppor- tunity often wanting from the facility with which that species of property is transferred from hand to hand, and which the common distringas, preserved by the 5th section, does not in aU cases afford. A distringas remains [qu. restrains] only at the discretion of the bank. The restraining order, which the 4th section enables the Court to grant, is imperative ; it continues so long as the Court sees fit to direct, and can only be discharged in the mean time upon the application of the parties interested. Cases might arise in which from the discovery of new matter after a distringas had issued, or from the bank peremptorily, but erroneously refusing to notice a distringas, or perhaps from other causes, the party who obtained that writ might notwith- standing, upon a full disclosure of the facts in a case of merits and urgency, entitle himself to a restraining order under the 4 th section" (6). SECTION IV. OF COMPriSOET tATMENT INTO cotnaT. General rule. The rule as laid down by Lord Eldon, and which has ever since been acquiesced in, is, that to caU for payment of money into Court, " the plaintiff must either be solely entitled to the fund or have acquired in the whole of the fund such an in- terest, together with others, as entitles him on his own behalf, and the behalf of those others, to have the fund secured in Court " (a). It is not indispensable that the plaintiff should be the person exclusively interested; but if he have a partial interest, it is enough, provided all the other persons interested (a) In re Marquis of Hertford, 1 (o) Freeman v. Fairlie, 3 Mer. fiare, 584 ; 1 Phil. 129. 29 ; and see Dubless v. Flint, 4 M. (6) In re Marquis of Hertford, 1 & C. 502; M'Hardy v. Hitchcock, Hare, 590. 11 Beav. 11. CH. XXIX. S. 4.] COMPULSOEY PAYIMENT INTO COUET. B65 in the fund are before the Court (a), and the Court may and occasionally will make orders for payment into Court, although some of the persons interested in the money are not before it (6). And where, under the new practice, the other persons interested are not necessary parties to the suit, payment into Court may be obtained without service on them of the notice of motion (c) ; but where the cestuis que trust had been served with a copy of a bill for the appointment of new trustees which prayed a transfer to the new trustees, the Court held that they must be served with notice of a motion to transfer the fund into Court {d). If the defendant admits himself to be a trustee, but it Haintiffmay , move upon a pos- remains to be ascertained whether he is a trustee for the plain- sible title. tiff or for other parties, the plaintiff may move upon his possible title, where all persons are before the Court among whom there will be found some one who is entitled (e). " In a contest as to the title to any particular property," said Lord Cottenham, " the Court will, in some cases, take possession of the subject-matter of the contest for security until it adjudi- cates upon the right. Such cases generally arise when the property is in the hands of stakeholders, factors, or trustees who do not themselves claim any title to it. In ordering money into Court under such circumstances, the Court does not disturb the possession of any party claiming title, or direct a payment before the liability to pay is established (/)." Occa- sionally, where the fund is clear, and is divisible between- the plaintiff and defendant in certain proportions, the Court has ordered the defendant to pay into Court the share only of the plaintiff (^). The merits upon which the motion is founded must be SedZtd^^ admitted by the defendant's answer, and no evidence to this missions in de- fendant's answer. (a) WJiitmarsh v. Robertson, 4 (rf) LcwelUn v. Cobhold, 1 Sm. & Beav. 26 ; Bartlett v. SartUtt, 4 Giff. 572. Hare, 631 ; but see Ross v. Ross, 12 («) See Bolder v. Banh of Eng- Beav. 89. land, 10 Ves. 355; but see oases (J) Wilton V. mil, 2 De Gex. note (c), p. 865. Mac. & Gor. 807. (/) Richardson v. Banh of Eng- (c) Marryat v. Marryat, 23 L. land, 4 M, & C. 171. J. Ch. 876. {g) Rogers v. Rogers, 1 Anst. 174 ; see Score v. Ford, 7 Beav. 336.. 866 COMPDLSOEY PAYMENT INTO OOUET. [CII. XXIX. S. 4. Answer should contain an ad- mission of pro- bable title. Payment into Court must be upon the footing of an equity alleged by the biU. Not necessary that fund should be actually in de- fendant's hands. effect can be adduced aliunde {a). Thus, if money be standing in the joint names of several persons, as of three trustees, it cannot be ordered into Court on the admission of the specific sum by one, though the others admit that a sum is standing in their joint names, and the plaintiff offers to read affidavits sworn by them, from which the amount of the sum would appear (b). And it would seem that not only must the plaintiff be able to read from the answer an admission of the defendant's receipt of the money, but also an admission of his own title, or probable title, e. g. as next of kin, heir-at-law, &c., and that if the defendant ignores the plaintiffs title, the money will not be ordered into Court (c). The plaintiff cannot ask for payment of money into Court upon the footing of an equity not alleged by the bill, but only stated by the answer. Thus, where the plaintiff filed a bill claiming one-fifth of the residuary estate of a testator asking relief, as in a case of an open account, and the defendant by his answer stated a deed amounting to a settlement of account under which he admitted a sum to be due from him, it was held that the plaintiff could not without amending his biU obtain payment into Court of the sum so admitted to be due (cZ). It is not necessary that the defendant should acknowledge the fund to be in his hands at the time of the answer ; for if he admit that he once actually received it, and state that he afterwards applied it in a way not authorised by the trust, the Court will fasten upon the receipt and not allow him to dis- charge himselfbypleading a breach of duty ; as if a trustee admit that he had a fund in his hands, but says that he afterwards (a) Beaumont v. Meredith, 3 V. & B. 181, per Lord Eldon ; Richard- son V. Bank of England, 4 M. & C. 171, 175, per Lord Cottenham ; JDuUess V. Flint, 4 M. & C. 502 ; Black V. Creighton, 2 Moll. 554, per Sir A. Hart ; and see Green v. Pledger, 3 Hare, 171. The 59th sect, of the 15th & 16th Vict. c. 86, directing the defendant's answer to be viewed merely as an affidavit in motions for injunction or receiver, &o., does not touch motions for payment into Court. (J) Boschetti v. Power, 8 Beav. 98. (c) DuUess V. Flint, 4 M. & C. 502; M'Hardg v. Hitchcock, 11 Beav. 73. {d) Protidfoot V. Hume, 4 Beav. 476. CII. XXIX. S. 4.] COMPULSOEY PAYMENT INTO COURT. 8fi7 sold it out and did not re-invest it (a), or paid it away im- properly {b), or lent it on personal (c) or other security (d), not within the terms of the trust. And no attention will be paid to the objection that the bill was for the very purpose of securing the fund, and therefore that the money ought not to be ordered into Court until the decree (e). But if an executor (and the rule must apply equally to a Payments not trustee) admits in his answer that he has received a specific answer may be sum, but adds tliat he has made payments, the amount whereof V'^f^^^ ^y ^^' he does not specify, in respect of the testator's estate, the Court will allow him to verify by affidavit the amount of the payments properly made, and will order him to pay in the actual balance (/). Payment of money into Court is, in general, confined to the Payment of money into cases of a defendant's admission of actual possession of the Com-t not ordered fund, or of a receipt not followed by any subsequent legal dis- ^^^^ <,£ circum- eharge, and is not ordered upon a mere admission of facts stances sho-wing from which a liability may be inferred {g). Thus, if a defendant admit that he has had a fund in his hands from a certain time, and it clearly appears from the answer that he is liable and wiU be decreed at the hearing to pay interest ; j^et the Court will not order him to pay interest on motion (/i), unless he also admit that he has actually made interest, which amounts to a receipt (i). The case of Bothwell v. Bothwell (k) is no exception to the Eothweii v. llotliwell. (a) Wiglesworth v. Wiglesworth, (e) See Mothwell v. Rofhwell, 2 16 Beav. 272 ; PhilKpo v. Munnings, S. & S. 217 ; Wtjatt v. Sharratt, 2 M. & C. 309; and see Meyer v. 3 Beav. 498; CollisY. Collis, 2 Sim. Montriou, 4 Beav. 346 ; Fatter v. 365. Jackson, 6 Beav. 424. (/) Anon. 4 Sim. 359 ; and see (6) See Scott v. Becker, 4 Price, Proudfoot v. Hume, 4 Beav. 476 j 350 ; Meyer v. Montriou, 4 Beav. Poy v. Gibbon, 4 Hare, 65. 343 ; Nohes v. iSeppings, 2 Phill. {g) See Richardson v. Bank of 19. . England, 4 M. & C. 174; Peacham (c) Vigrass v. Binfield, 3 Mad. v. Baw, 6 Mad. 98. 62 ; Collis v. Collis, 2 Sim. 365 ; (A) Wood v. Downes, 1 V. & B. Roy V. Gibbon, 4 Hare, 65. 50. {d) Wyatt V. Sharratt, 3 Beav. (?) Freeman v. Fairlie, 3 Mer. 498 ; Costeker v. Ilorrox, 3 Y. & 43 ; see Wood v. Downes, 1 V. & C. 530 ; Jlinde v. Blake, 4 Beav. B. 50. 597; Bourne v. Mole, 8 Beav. (k) 2 8. &S. 217 ; see Richardson 177. V. Sank of England, 4 M. & C. 174. 3 K 2 808 COMPULSORY PAYMENT INTO CO0KT. [CH, XXIX. S. 4. Special case of a trustee who is a debtor to his trust estate. Pay m cut into Court at the hearing. rule, for there the defendant had covenanted with the trustees of his marriage settlement to pay 850L within twelve months from the marriage; and the covenant not having been per- formed, the children filed a bill against their parents and the trustees to have the money raised ; and defendant admitting " that the 850Z. had not been got ill, but that it was still in his han^s," the Court ordered the payment into Court, not on the admission of the debt, but " that it was still in Ms hands." However, in some cases the Court orders payment into Court upon motion of what is apparently a mere debt ; as where an executor or trustee admits himself to owe a debt to the estate he represents, for here the person to pay and the person to receive being the same, the Court assumes that what ought to have been done has been done, and orders the payment, not as of a debtby a debtor, but as of monies realised in the hands of the executor or trustee (a). Thus where A., B., and C. were appointed executors of a will, of whom A. and C. alone proved, and A. and B. were appointed trustees, and a bill was filed by A. for the administration of the trusts of the will, and B. by his answer admitted that he and his partner G. B. were indebted to the testatrix at the time of her decease, and that part of the assets had been lent to the partnership by C, and that the partners had paid some of the testatrix's debts, and that the sum of 1137L 7s. lO^d. was due from the partnership to the estate on the balance of accounts, the Court held, not- withstanding B.'s assertion to the contrary in his answer, that he must be deemed to have acted, and ordered him to pay the debt due from his co-partner and himself into Court (&). The Court will occasionally make an order for payment into the Court at the hearing of the cause "ex debito justitio'," though it might have hesitated to do so upon an interlocutory application by motion ; as where a plaintiff having only a remote contingent interest in a fund claims at the hearing to have the fund brought into Court (c). And now that under (a) Richardson v. Bank of Eng- land, 4 M. & C. 174, per Lord Cottenham. (5) White V. Barton, 18 Beav. 192. (c) Governesses^ Institution v. Rushridger, 18 Beav. 467. CH. XXIX. S. 5.] EECEIVEESHIP. 869 the new practice any material circumstances not in issue may be brought before the Court by affidavit at the hearing, an order for payment into Court will be made at the hearing, if proper, without any notice of motion for that purpose {a). The time to be given for payment of money into Court will Time allowed for 1 1 ii • f 1 ■ TO • 1 ■ payment into depend on the circumstances of the case. It it be money m Court, the defendant's hands, it will be ordered in forthwith, and an immediate transfer may be directed of stock standing in the defendant's name ; but in the latter case it will be borne in mind, that during certain periods of the year the transfer books are closed. Where the defendant had improperly lent a sum on personal security, but no insolvency was suggested or any danger as to the money, the Court ordered it to be paid in on or before the first day of the following term (6). In another case, where the defendant had lent 820Z. upon a mortgage not authorised by the trust, the Court allowed six weeks, with liberty to apply for further time if the circumstances should then warrant the indulgence (c). Where a distringas or injunction has been previously ob- Distringas. tained against the transfer of the stock, the Court orders the transfer into Court to be made, " notwithstanding the distringas or injunction." SECTION V. OP EECEIVEESHIP. As the cestuis que trust or parties beneficially interested in i!«ceiver will be appointed at an estate are in equity the owners of it, should they all concur instance of all •.. ,. J. . 1 xi X i i ii ihe cestuis que m an application tor a receiver and the trustee consent, the ^,.„s^ Court will at any time make the order {d). But the usual recognisances will not be dispensed with (e). (o) Isaacs v. Weather stone, 10 {d) Brodie v. Barry, 3 Mer. 695 ; Hare, Appendix, xxx. Beaumont v. Beaumont, cited lb. (6) Vigrass v. Binfield, 3 Mad. 696 ; see Browell v. Beid, 1 Hare, 62 ; and see Hinde v. Blahe, 4 Beav. 436. 597; Boi/r. Gibbon, 4: Haxe, G5. {e) Manners v. Furze, 11 Beav. (c) Wi/att v. Sharratt, 3 Beav. 30 ; Tylee v. Tylee, 17 Beav. 583. 498 ; Score v. Ford, 7 Beav. 333. 870 EECBIVERSPIIP. [CH. XXIX. S. 5. Where executrix a feme covert, and husband abroad. Also where And as each cestm que trust is entitled to have the fund pro- of misconduct or P^rly protected, a receiver will be granted at his instance if it ba^ra^t"& ^^^ ^^ shown that the trustee has been guilty of misconduct, waste, or improper disposition of the trust estate (a), or that the fund is in danger from his being in insolvent circum- stances (&), or a bankrupt (c), or that one trustee has miscon- ducted himself, and the other consents to the order (d), or is incapacitated from actiag (e), or that the executor is a person of bad character, drunken habits, and great poverty (/). And a receiver has been appointed where the executrix was a feme covert, and the husband, besides being in indifferent circumstances, was out of the jurisdiction, for in such a case, said the Court, if the executrix waste the assets or refuse payment, the party aggrieved had no remedy, as the husband must be joined in the action (g). And a receiver has been ordered when four trustees had been named in a will and one died, and another was abroad, and the third had scarcely interfered in the trust, and the fourth- submitted to a receiver by his answer (h). In another case the three trustees disagreed, and a receiver was appointed (i). The order was taken by arrangement between the parties, but the Court had previously expressed its opinion that, unless the trustees could agree, a receiver must be appointed. And the Court will grant a receiver at the instance of the cestui que trust, when the single trustee is, or all the trustees are, out of the jurisdiction (k). But the Court is not in the habit of granting a receiver, and Receiver where trust estate un- protected. Receiver not granted on slight grounds. (a) Anon. 12 Ves, 5, jier Sir W. Grant ; and see Middleton v. Dods- well, 13 Ves. 266 ; Howard v. Pa- pera, 1 Mad. 142 ; Richards v Perkins, 3 Y. & C. 299 ; Evans v. Coventry, 5 De G. M. & G. 911. (5) Scott V. Pecker, 4 Price, 346; Mansfield v. Shaw, 3 Mad. too ; and see Anon. 12 Ves. 4 ; Mid- dleton V. Dodswell, 13 Ves. 266 ; Savers v. Havers, Barn. 23. (e) Gladdon v. Stoneman, 1 Mad. 143, note ; Langley v. Hawk, 5 Mad. 46. [d) Middleton v. Sodswell, 13 Ves. 266. {e Painhrigge v. Plair, 3 Beav. 421. (/) PvereU v. Prythergch, 12 Sim. 367, 368. (<7) Taylor v. Allen, 2 Atk. 213. [h) Tidd y. Lister, 5 Mad. 429. (0 Bay V. Croft, May 2, 1839, M. 11. (k) Noad V. Packhouse, 2 Y. & C. Ch. Ca. 529; Smith v. Smith, 10 Hare, App. Ixxi. CH. XXIX. S. 5.] EECEIVEESHIP. ^''1 SO taking the administration out of the hands of the trustees, the natural curators of the estate, upon very slight grounds (a). Thus it is no sufficient cause for a receiver that one of several trustees has disclaimed (b), or is inactive, or gone abroad (c). Nor is it a sufficient cause that trustees are in mean (not insol- vent) circumstances {d), or being trustees for sale have let the purchaser into possession before they have received the purchase money, for the Court will not necessarily infer this to be misconduct (e). When a receiver is appointed under the authority of the Receiver not dis- /-,.,. •i/'ni n !• ft • ■ 1 "liarged at the Court, he is appointed tor the benefit ot all parties interested, mere instance of and therefore will not be discharged merely on the application ourinrMs^'ap- of the party at whose instance the order was made (/). pointment. However, when a receiver had been appointed on the appli- Special case. cation of the plaintiff, the tenant for life, on the ground of the misconduct of one of the trustees and the incapacity of the other, and afterwards three new trustees were appointed by the Court, who, on a motion by the plaintiff to discharge the receiver, undertook to receive the rents and pass their accounts half-yearly before the Master, in the same way as a receiver, the Court said it was not proposed to deprive one party of the protection of the receiver, but merely to substitute the trustees in his place ; that the tenant for life ought not unnecessarily to be charged wrbh the costs of a receiver ; that it was not intended to put the owner in possession ; that if any objections were shown to the trustees the application would be refused, but in the absence of such objections it was a reasonable request, and the order for discharging the receiver was made (g). (a) See Middleton v. Dodswe.ll, thornthwaite v. Mussell, 2 Atk, 126. 13 Ves. 268 ; Barkley v. Lord Reay, In Havers v. Havers, Barn. 23, the 2 Hare, 306. Court considered misapplication pro- (6) Srowell v. Reid, 1 Hare, 434; table, but see Tait v. Jenkins, 1 T. & C. (e) BroweUy. Reid, 1 Hare, 434. Ch. Ca. 492. (/) Bainhrigge v. Blair, 3 Beav. (c) Brotoell v. Beid, 1 Hare, 435, 423, per Lord Langdale. per Sir J. Wigram. [g) Bainhrigge v. Blair, 3 Beav. [d) Anon. 12 Ves. 4 ; Howard y. 421, 423, 424; and see Poole v. Papera, 6 Mad. 142 ; and see Ha- Frcinhs, 1 Moll. 80. 872 SECTION VI. OP COSTS OP SUIT. Costs as between j_ ^g between Strangers on the one hand, and trustees and trustees and ° strangers. cestvAs que trust on the other. In these cases, the trustee is on no better footing than any ordinary plaintiff or defendant, for the circumstances of the trust cannot be allowed to affect the interest of a third person (a). Costs where Thus on a bill by a stranger for specific performance of a trustees cannot make a title. contract, the vendor or trustee for sale must, if he cannot make a title, pay the costs of the suit agreeably to the general rule (6). Trnstee made a g^ where trustees or executors are brought before the Court detendaut as a ° necessary party, as necessary parties by a stranger, if the trustees or executors contest the claims of the plaintiff, and the plaintiff recover in the suit, they are not entitled to their costs ; but if they submit the point to the Court, they will be decreed their costs (c). Plaintiff failing jf a plaintiff fail in his suit, but stands in so hard a case in nis suit not necessarily bound that he ought not to pay any costs, the Court will not oblige a°trust^.^ ^ ° ^^^ to PEi-y the costs of a defendant because he happens to sustain the character of trustee (d). In a ^ill of foreclosure against the mortgagor and his trustee to bar dower, the trustee is not entitled to his costs as against the mortgagor (e). Trustee has costs Where the bill of a stranger is dismissed with costs, a as between party ° and party only, trustee, who is a defendant, will not, as is usual between trustee and cestui que trust, be ordered his costs as between attorney and client, but only as between party and party (/). Costs in oredi- jf g, creditor file a bill against an executor for payment of a tor s suit. ° . -^ "^ debt, the rule which prevails at law is not also the rule of equity, viz., that if the creditor recover he shall be entitled to [a) Burgess \. Wheats, 1 Ed. 251, {d) Brodie v. St. Paul, lb. 326, per Lord WortHngton. see 334. (i) IJdwards v.Sarmy, Coop. 4cO; (e) Horrochs v. Ledsam, 2 Coll. and see Hill v. Magan, 2 Moll. 460. 208. (c) Rasliley v. Masters, 1 Vea. (/) Mohun v. Mohtm, 1 Sw. 201. jun. 201, see 205. OH. XXIX. S. 6.] COSTS OF TRUSTEES. 873 his costs de.bonis testatoris, and if there be none, then de bonis propriis of the executor ; for the consideration of costs in equity rests entirely in the discretion of the Court {a). As the law formerly stood, if the assets were not sufficient Executor (though not so formerly) to cover both the debt and the costs, the executor was not now held entitled decreed to pay costs (6), unless he had misconducted himself, as preference to the by having satisfied simple contract debts in preference to debts P'™*''*'- upon specialty (c). But he was not entitled to retain his own costs out of the assets in preference to the claims of the plain- tiff {(T). And if a bill had been filed by a specialty creditor, and the specialty debt had exhausted the personal assets, the ex- ecutor could not have claimed to be reimbursed out of the real estate to the prejudice of the testator's heir (e) : for the executor, it was said, should have considered the risk before he applied for the probate (/). But now the practice is that the executor shall have his own costs in the first place, even as against the plaintiff, for the Court will not take the fund out of his hands until his costs are paid (g). „ II. Of costs as between trustees and cestuis que trust, inter se. Trustee entitled The general rule is that a trustee shall have his costs of suit general ^e. awarded him at the hearing either out of the trust estate, or to be paid by his cestui que trust {h). And if there be a fund under the control of the Court (but in general not other- (a) Twisleton v. Thelwel, Hard. 119; Humphrey v. Morse, 2 Atk. 165; Uvedale v. Uhedale, 3 Atk. 408. 119; h\i.t see Davy v. Sei/s,M.os. 204. [g) Bennet v. Going, 1 Moll. 529 ; (6) Twisleton v. Thelwel, ubi su- Tipping v. Power, 1 Hare, 405 ; pra : Morony v. Vincent, 2 Moll. Ottley v. Qilby, 8 Beav. 603 ; Tan- 461. ner v. Baneey, 9 Beav. 339. (e) Jefferies v. Harrison, 1 Atk. (A) 1 Eq. Ca. Ab. 125, note (a) ; 468; 2i^A. see Bennett Y. Atthins, 1 Hall y. Hallet, 1 Cox, 141, per Y. & C. 247; Wilkins v. Hunt, HjoidiThxaloYi; Attorney-General y. 2 Atk. 151. City of London, 3 B. C. C. 171; {d) Humphrey v. Morse, 2 Atk. Norris v. Norris, 1 Cox, 183 ; 408 ; Sandys v. Watson:, 2 Atk. 80 ; Sammes v. Hickman, 2 Ves. jun. and see Adair v. Shaw, 1 Sch. & 38, per Lord Chief Baron Eyre ; Lef. 280. Rashley v. Masters, 1 Ves. jun. 201; (e) Uvedale v. Uvedale, 3 Atk. Roche v. Hart, 11 Ves. 58; Ma- 119 ; and see If^ash v. Billon, 1 plett v. Pocock, Eep. t. Finch, 136. Moll. 237. Landen v. Green, Barn. 389 ; Tay- (/) See Uvedale v. Uvedale, 3 Atk. lor v. Glanville, 3 Mad. 176, &e. 874 COSTS OF TRUSTEES. [CH. XXIX. S. 6. Trustee not appearing. Decree passed. Disclaimer, wise (a)), he will have his costs as between solicitor and client (6). If it appear upon the pleadings or the Court be otherwise satisfied that the trustee has sustained charges and expenses beyond the costs of suit, the Court will at the same time order him his costs, charges, and expenses properly incurred. If the trustee be a solicitor, the Court will not declare that the trustee shall have his costs out of pocket only, but wiU give him his costs as between solicitor and client in the usual way, and leave it to the taxing officer to deal with the effect of the order (c). Even where the trustee did not appear at the hearing, and a decree nisi was made against him, and the trustee set down the cause again, and prayed to have his costs of the suit upon his paying the costs of the day, Lord Kenyon said, " The payment of the costs of the day makes the trustee rectum in curia; and as. he would most unquestionably have been entitled to his costs if he had appeared at the original hearing, so he now stands in the same situation, and is therefore entitled to his costs." (d) But if the decree has been passed, a trustee who has omitted to ask for his costs at the hearing cannot have the cause re-heard upon the subject of costs only, and cannot obtain an order for payment of his costs upon presenting a petition (e). If a person named as trustee be made defendant to a suit, and by his answer disclaim the trust, the bill will be dismissed as against him with costs (/) ; but hot with costs as between sdlicitor and client ; for, having refused to accept the office, he stands in the light of any ordinary defendant {g) ; and if his answer be unnecessarily long, he will only be allowed the reasonable costs of a disclaimer (h). (a) Edenhorough v. Archbishop of Canterbury, 2 Euss. 112; but see Attorney -General v. Cuming, 2 Y. & C. Ch. Ca. 155. (6) Mohun V. Mohun, 1 Sw. 201, per Sir T. Plumer ; Moore v. Frowd, 3 M. & C. 49, per Lord Cottenham. (c) York V. Brown, 1 Coll. 260. (d) JVorris v. Norris, 1 Cox, 183. (e) Colman v. Sarell, 2 Cox, 206. (/) Sickson v. Fitzgerald, 1 Moll. 14. (g) Norway v. Norway, 2 M. & K. 278, OYeviuling SherrattY.Sent- ley, 1 R. & M. 655. (/j) Martin v. Persse, 1 Moll. 146. CH. XXIX. S. 6.] , COSTS OF TRUSTEES. 875 If a person be a trustee of a deed void as against creditors, or on other grounds, he is entitled to his costs if the plaintiff by praying a conveyance by the trustee elect to treat him in that character (a). But if the deed contain a false recital, for the purpose of misleading bond fide creditors, the trustee, on a bill to set it aside, will not have his costs (6). 2. If any particular instance of misconduct, or a general Suit originated ,,..»,. . .by tbe trustees dereliction of duty m the trustee (c), or even his mere caprice misconduct. and obstinacy (d), be the immediate cause why the suit was instituted, the trustee, on the charge being substantiated against him, must pay the costs of the proceedings his own improper behaviour has occasioned. And where two executors had kept large balances in their hands for a great length of time, and one of them had become insolvent, the Court decreed eaeh of them to be liable for the costs of the whole suit (e). But where a bill was filed charging the trustee with a where miscon- breach of trust both as to realty and personalty, and the charge ia^paj.^™™'' "" ^ failed as to the former but succeeded as to the latter, the Court said, it was scarcely possible to suppose that the trustee should be permitted to have his costs, but it would be in- justice to make him pay the whole costs, as one part of the bill had failed (/). (a) Snow V. Sole, Y. C. of Eng- v. Stacpoole, 4 Dow. 209 ; Crackelt land, Maroli 8, 1845. v. Bethime, 1 J. & "W. 586 ; Baher {h) Turquand v. Knight, 14 Sim. v. Carter, 1 Y. & C. 252, per Lord 643. Abinger, C. B. ; Side v. Haywood, (tf) Attorney- General v. Sohert, 2 Atk. 120; Wilson v. Wilson, 2 Eepr t. Finch, 259; Ewrl Powlet Keen, 249; Attorney-Oeneral v. V. Serbert, 1 Ves. jufl. 297 ; Oaf- Wilson,, 1 Or. & PkU. 1 ; I^se v. frey v. Darby, 6 Ves. 488; Little- Kingdon, 1 Coll. 184. hales V. Gascoyne, 3 B. C. C. 73; {d) Taylor v. Glannlle, 3 Mad. AshburnhamY. Thompson, 13 Ves. 178, per Sir J. Leach j Jones v. 402 ; Hide v. Saywood, 2 Atk.. Lewis, 1 Cox, 199 ; IJarl of Sear- 126; Adams v. Clifton, 1 Russ. borough y. Parker, I Y^s.^nn. 2&T ; 297; MosleyY. Ward, 11 Ves. 581; Kirby v. Mash, 3 Y. & C. 295; Piety Y. Stace, 4 Ves. 620 ; Seers Thorby v. Yeats, 1 Y. & C. Ch. Ca. V. Hind, 1 Ves. jnn. 294 ; Fell v. 438 ; Hampshire v. Bradley, 2 ColL Lutwidge, Barn. 319, see 322; 34; Pe»/oW v. JBomcA, 4 Hare, 271; Brown v. How, Barn. 354, see 358 ; and see Burrows v. Greenwood, 4 Sheppard v. Smith, 2 B. P. C. 372 ; Y. & C. 251. Haberdashers' Company v. Attorney- (e) Littlehales v. Gascoyne, 3 B. General, 2 B. P. C. 370 ; Franklin C. C. 73. V. Frith, 3 B. C. C. 433 ; Whistler (/) Poeock v. Beddington, 5 Ves. v. Newman, 4 Ves. 129 ; Stacpoole 800. 876 COSTS OP TRUSTEES. [CH. XXIX. S. 6. Setting aside a purchase by trustees, and absence of fraud. Mistake or slight neglect of the trustee. Administration suit mainly caused by a breach of trust. Misconduct of the trustee dis- covered in the progress of the suit. Costs of dis- cussing a doubtful point of law. Trustees for sale had purchased in the name of a trustee at an undervalue, but without any imputation of fraud, and by auction. As to so much of the suit as related to calling upon the trustees to submit to a resale, and the directions conse- quential thereon, the Court gave relief against the trustees with costs ; but as to the accounts that must have been taken had the sale been unimpeachable, the trustees were allowed their costs (a). If the suit was occasioned by the mistake, or some slight neglect of the trustee, the Court will content itself with not giving him costs (6), or will punish him with payment of part of the costs only (c), or will even give him his costs (d). And where a suit was mainly occasioned by the breach of trust of a trustee, though he was decreed to pay the costs up to the hearing, yet he was held entitled to his subsequent costs relating to the ordinary taking of the accounts (e). 3. If the bill filed did not originate from any necessity of inquiring into the conduct of the trustee, but in the course of the proceedings instituted upon other grounds, it appears the trustee has in some particular instance been guilty of a breach of trust, the Court will not award against the trustee the costs of the whole cause, but only of so much of it as connects itself with his misconduct, and as to the rest of the suit will allow him his costs (/). An executor, instead of accumulating a fund as directed by the will, had improperly kept the balance in his hands ; but, as the amount of costs had in great measure been occasioned by the inquiry what rule the Court ought to adopt with respect to (o) Sanderson v. Walker, 13 Ves. 601. (b) 0' Callagan v. Cooper, 5 Tes. 117; Mousley Y. Carr, 4 Beav. 49; Attorney-Oeneral Y. Drapers' Com- pany, lb. 71 ; Devey v. Thornton, 9 Hare, 222. (c) East V. Ryal, 2 P. W. 284. {d) Taylor v. Tahrum, 6 Sim. 281 ; Flanagan v. Nolan, 1 Moll. 84 ; Travers t. Townsend, lb. 496 ; Attorney-General v. Caius College, 2 Keen, 150 ; Bennett v. Attkins, 1 T. & C. 247 ; Fitzgerald v. 0' Fla- herty, 1 Moll. 347; Attorney- Gene- ral v. Drummond, 2 Conn. & Laws. 98 ; Royds v. JRoyds, 14 Beav. 54. (e) Hewett v. Foster, 7 Beav. 348. (/) Tehbs V. Carpenter, 1 Mad. 290, see 308 ; Newton v, Bennet, 1 B. C. C. 359; Pride v. Fooks, 2 Beav. 430 ; Heighington v. Grant, 1 PhUl. 600. CH. XXIX. S. 6.] COSTS OF TRUSTEES. 877 the computation of interest, it was thought hard under the circumstances to fix the executor with payment of costs even relatively to the breach of trust ; and therefore the Court gave no costs (a). As to One part of the suit, the trustee ought from his mis- Costs to be paid conduct to have paid the costs, and, as to another, to have reoeWed in part been allowed his costs; and the Court by a kind of com- ^y t^ie trustee. promise, left each party to pay his own costs (&). Where the breach of trust is trivial, the Court may overlook Trivial mis- conduct, it altogether, and give the trustee his whole costs (c). 4. If a trustee have a private interest of his own separate Trustee insti- ... 11. -ITT • tutiug a suit for and independent trom the trust, and oblige the cestui que trust tis private ends. to come into a Court of equity merely to have some point relating to the trustee's private interest determined at the expense of the trust, that is such a vexatious proceeding in the trustee, that, for example's sake, he will be decreed to pay the costs of the whole suit(i). 5. If on a bill for an account the defendant says in his Trustee falsely answer he believes the plaintiff is considerably indebted to plaintiff's him, and after a long investigation it proves the defendant is '''*™^- considerably indebted to the plaintiff, the trustee, thus daring the plaintiff to his account, will be decreed to pay the costs (e). And if the balance be in favour of the trustee, but far below what he had stated in his answer, he will not be entitled to have his costs (/), or at least not the costs of the account itself (c/). A trustee will be fixed with costs if he wilfully misstate the Trustee mis- accounts {h), or if, by any chicanery in his answer, he keep the accounts. cestui que trust from a true knowledge of the accounts (i), or even if he have kept the accounts in a very confused (o) Maphael v. Boehm, 13 Ves. (e) Parrot v. Trehy, Pr. Ch. 254. 592. (/) Attorney- Oeneral v. Brewers' (b) Newton v. Bennet, 1 B. C. C. Company, 1 P. W. 376. 362. (g) Fozier v. Andrews, 2 Jones & (c) Fitzgerald v. Pringle, 2 Moll. Lat. 199. 634 ; Bailey v. Gould, 4 Y. & C. (A) 8heppard v. Smith, 2 B. P. C. 221, see 225; Knott v. Cottee, 16 372; anA. see Flanagan \ . Nolan, 1 Beav. 77 ; Cotton v. Clarh, 16 Beav. Moll. 86. 134_ (j) Avery v. Osborne, Barn. 349 ; (d) Henley v. Philips, 2 Atk. 48. Reech v. Kennegal, 1 Ves. 123. R78 COSTS OP TRUSTEES. [CH. XXIX. S. (5. Corporatiou pleading igno- rance falsely. Corporation suppressing documents. Trustee setting up title of his Executor deny- ing relationship of next of kin. Costs where in- terest given against execu- tors. manner (a). And an executor will be liable to pay costs if he deny assets, and tbe contrary be established against him (h). Where a corporation filling the character of trustees for a grammar school by their answer pleaded ignorance of the claims of the charity, and the information was afterwards elicited from the documents scheduled to their answer, as the Court inferred from such conduct a disposition to obstruct and defeat the ends of justice, the corporation was decreed to pay the costs of the suit (c). And a corporation similarly circumstanced was punished in the same manner where, the Court having directed the pro- duction of certain documents, it was afterwards discovered that a very material one had been suppressed (d). 6. The costs of the suit will be cast upon the trustee, if, in his answer, he set up a title of his own, and make an ill defence (e) ; and he will nt)t be allowed to have his costs if he set up any trust different from what it actually is (/). An executor sued by the next of kin had put the plaintiffs to the proof of their relationship, and, the fact not admitting a doubt, the executor was fixed with the costs of the inquiry (gf). 7. It was laid down as a rule by Lord Thurlow, that " where he was obliged to give interest against executors as a remedy for a breach of trust, costs against them must follow of course ; " Qi) but Sir W. Grant said, " that was a proposition to which he was not quite prepared to accede, as there might be many cases in which executors must pay interest, which would not be cases for costs ;" (i) and the existence of any (a) Norhury v. Calheck, 2 Moll. 461. (6) Sandys v. Watson, 2 Atk. 80. (c) Attorney - General v. East Retford, 2 M. & K. 35. {d) Borough of Hertford v. Foor of same Borough, 2 B. P. C. 377. (e) Loyd v. Spillet, 3 P. W. 344 ; Bayly v. Powell, Pr. Ch. 92 ; Willis V. Hiscox, 4 M. & C, 197 ; Attorney- General V. Drapers^ Company, 4 Beav. 67 ; Attorney - General v. Chrisfs Hospital, lb. 73 ; Irwin v. Sogers, 12. Ir. Eq. Rep. 159. (/) Ball V. Montgomery, 2 Ves. jun. 191, see 199. {g) Loicson v. Copeland, 2 B. C. C. 156. (A) Seers v. Hind, 1 Ves. jun. 294 ; and see Franhlin v. Frith, 3 B. C. 0. 433; Mosleyy. Ward, 11 Ves. 581. (i) Ashhurnham v. Thompson, 13 Ves. 404. CH. XXIX. S. 6.] COSTS OF TRUSTEES. such rule has since been denied (a) ; and where the trustee has not misconducted himself, but on a cestui que trust's bill against him for an account has been decreed to pay costs, he has been allowed his general costs of suit, excluding the costs incurred in taking the account in which the trustee failed (fc). The meaning of Lord Thurlow probably was, that where the suit was occasioned by the misconduct of the trustee, and the charge against him was shown to be well founded by the Court's fixiug him with interest, the costs of the suit in that case would be consequential upon the relief (c). [a] Tehbs v. Carpenter, 1 Mad. (6) Fozier v, Andrews, 2 Jones & 308; Woodhead v. Marriott, C. P. Lat. 199. Cooper's Rep. 1837-38, 62; Hoi- (c) Ben Mosley v. Ward, 11 Yea. gate v. Hatvorth, 17 Beav. 259. 582. 879 TRUSTEE ACT, 1850. 13° & 14° VicToEi^, Cap. 60. An Act to consolidate and amend the Laws relating to the Conveyance and Transfer of Real and Personal Property vested in Mortgagees and Trustees. SthAugmt, 1850. 11 Gr. 4, & 1 W. Whereas an Act was passed in the first year of the reign of His c. late Majesty King William the Fourth, intituled " An Act for amend- ing the Laws respecting Conveyances and Transfers of Estates and Fimds vested in Trustees and Mortgagees, and for enabling Courts of Equity to give effect to their Decrees and Orders in certain cases ;" And whereas an Act was passed in the fifth year of the reign of His 4&5W. 4. c. late Majesty King William the Fourth, intituled "An Act for the Amendment of the Law relative to the Escheat and Forfeiture of Iteal and Personal Property holden in trust :" And whereas an Act was passed in the second year of the reign of Her present Majesty, intituled "An 1 & 2 Vict. 0. 69. Act to remove Doubts respecting Conveyances of Estates vested in Heirs and Devisees of Mortgagees :" And whereas it is expedient that the provisions of the said Acts should be consolidated and enlarged : Be it therefore enacted by the Queen's most excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, that all proceedings under the said Acts or any of them commenced before the passing of this 'Act may be proceeded with under the said recited Acts, or according to the provisions of this Act, as shall be thought expedient, and, subject as aforesaid, that the said recited Acts shall be and the same are hereby repealed : PROVIDED ALWAYS, that the several Acts repealed by the said recited Acts shall not be revived, and that such repeal shall only be on and after this Act coming into operation. THE TRUSTEE ACT, 1850. 881 II. And whereas it is expedient to define the meaning in which Interpretation ol terms. certain words are hereafter used : It is declared that the several words hereinafter named are herein used and applied in the manner following respectively; (that. is to say,) The word " lands " shall extend to and include manors, messuages, tenements, and hereditaments, corporeal and incorporeal, of every tenure or description, whatever may be the estate or in- terest therein : The word " stock " shall mean any fund, annuity, or security transferable in books kept by any company or society estab- lished or to be established, or transferable by deed alone, or by deed accompanied by other formalities, and any share or interest therein (a) : The word " seised " shall be applicable to any vested estate for life or of a greater description, and shall extend to estates at law and in equity (6), in possession or in futurity, in any lands : The word " possessed " shall be applicable to any vested estate less than a life estate, at law or in equity, in possession or in expec- tancy, in any lands : The words "contingent right," as applied to lands, shall mean a contingent or executory interest, a possibility coupled with an interest, whether the object of the gift or hmitation of such interest or possibility be or be not ascertained, also a right of entry, whether immediate or future, and whether vested or contingent : The words " convey " and " conveyance," applied to any person, shall mean the execution by such person of every necessary or suitable assurance for conveying or disposing to another lands whereof such person is seised or entitled to a contingent right, either for the whole estate of the person conveying or disposing, or for any less estate, together with the performance of all for- malities required by law to the validity of such conveyance, in- cluding the Acts to be performed by married women and tenants in tail in accordance with the provisions of an Act passed in the fourth year of the reign of His late Majesty King William the Fourth, intituled An Act for the Abolition of Fines and 3 & 4 W. 4, c. (a) See Re Angela, 5 De Gex & Sm. equities of the parties are bound by the 278. order for sale ; Re Williams's Estate, (b) In suits where all parties bene- 5 De Gfex & Sm. 515. And see the iicially interested are before the Court, analogous case under the prior Act, it is sufficient for the purchaser to take a Ooddard v. Macaulay, 6 Ir. Eq. Rep. conveyance of the legal estate, for the 221. 3 L 882 THE TRUSTEE ACT, 1850. Recoveries, and the substitution of more simple modes of Assur- ance (a), and including also surrenders and other acts which a tenant of customary or copyhold lands can himself perform pre- paratory to or in aid of a complete assurance of such customary or copyhold lands (h) : The words " assign " and '' assignment " shall mean the execution and performance by a person of every necessary or suitable deed or act for assigning, surrendering, or otherwise transferring lands of which such person is possessed, either for the whole estate of the person so possessed or for any less estate : The word " transfer " shall mean the execution and performance of every deed and act by which a person entitled to stock can trans- fer such stock from himself to another : The words " Lord Chancellor " shall mean as well the Lord Chan- cellor of Oreat Britain as any Lord Keeper or Lords Commis- sioners of the Great Seal for the time being : The words " Lord Chancellor of Ireland " shall mean as well the Lord Chancellor of Ireland as any Keeper or Lords Commis- sioners of the Great Seal of Ireland for the time being : The word " trust " shall not mean the duties incident to an estate conveyed by way of mortgage (c) ; but, with this exception the words " trust " and " trustee " shall extend to and include implied and constructive trusts (c?), and shall extend to and include cases where the trustee has some beneficial interest or estate in the subject of the trust, and shall extend to and include the duties incident to the office of personal representative of a deceased person : The word "lunatic" shall mean any person who shall have been found to be a lunatic upon a commission of inquiry in the nature of a writ de lunatico inqairendo : The expression " person of unsotmd mind" shall mean any person not an infant, who, not having been found to be a lunatic, shall (ffl) See Powell v. Matthews, 1 Jur. least where tlie alleged trustee may pos- N. S. 973. sibly dispute the trust, the constructive (5) See Rowley v. Adams, U BeaT. trust must first have been declared by 130. the decree of the Court ; so that the (c) As to the question upon the 1 W. 4, infant heir of a vendor who has died in- c. 60, whether the word "«r»s*" included testate having contracted to sell real a "mortgage," see note (c), p. 836, estate in his life time, is not a construo- suprd,. tive trustee for the purchaser unless so (d) A vendor, after a contract, has declared by decree. Be Carpenter, 1 been held to be a trustee of shares in a Kay, 418 ; Re Burt, 9 Hare, 289. Se joint-stock bank for the purchaser ; Re Wise, 5 De Gex & Sm. 415, is distin- Angelo, 5 De Gex & Sm. 278. But in guishable ; and see Properfs Pwchase, cases of real estate, if not generally, at 22 L. J. Ch. 948. THE TRUSTEE ACT, 1850. 883 be incapable from infirmity of mind (as) to manage his own affairs : The word "devisee" shall, in addition to its ordinary signification, mean the heir of a devisee and the devisee of an heir, and generally any person claiming an interest in the lands of a deceased person, not as heir of such deceased person, but by a title dependent solely upon the operation of the laws concerning devise and descent : The word " mortgage " shall be applicable to every estate, interest, or property in lands or personal estate which would in a court of equity be deemed merely a security for money : The word " person " used and referred to in the masculine gender shall include a female as well as a male, and shall include a body corporate : And generally, unless the contrary shall appear from the context, every word importing the singular number only shall extend to several persons or things, and every word importing the plural number shall apply to one person or thing, and every word importing the masculine gender only shall extend to a female. III. And be it enacted, that when any lunatic or person of unsound Lord Chancellor mind shall be seised or possessed of any lands upon any trust or by estates of lunatic way of mortgage, it shall be lawful for the Lord Chancellor (b), trustees and J ^ ^ ' W) mortgagees ; intrusted by virtue of the Queen's sign manual with the care of the persons and estates of lunatics, to make an order that such lands be vested in such person or persons in such manner and for such estate as he shall direct ; and the order shall have the same effect as if the trustee or mortgagee had been sane, and had duly executed a convey- ance or assignment of the lands in the same manner for the same estate (c). (a) See cases under the 1 W. 4, c. 60, a trustee, the trust estate or the cestui lie Wakeford, 1 Jones & Lat. 2 ; Be que trust must bear the costs of the pro- Zones, 6 Jur. 545; He WalTcer, 1 Or. & ceedings under the Act. Ifhe tea mort- Ph. 147. S'ajree, the costs will, as a general rule (6) It was doubted whether the Lords (though this result is contrary to prin- Justices, though they are in fact intrusted oiple), come out of the lunatic's estate, under the Queen's sign manual with the Re Wheeler, 1 De Gex, Mac. & Gor. 436. care &c. of lunatics, had power to exer- But where, on the face of the mortgage cise the jurisdiction given by the Act to deed, the lunatic mortgagee is a trustee the Lord Chancellor intrusted &c. Re for a third party, the costs must fall on Waugk's Trust, 2 De Gex, Mac. & Gor. the mortgagor. Re Lewes, 1 Mac. & Gor. 279 ; Re Pattinson, 21 Law J. Ch. 280. 23. Secus, if the mortgagor have no See now the 15 & 16 Tiot. c. 87, s. 15, notice of the fact that the lunatic is a removing the doubt, and the 11th section trustee. Re Townsend, 1 Mao. & Gor. of the Extension Act. 686. And see under 1 W. 4, c. 60, Re (c) Under this section (and it is con- Townsend, 2 Phil. 348, and cases there ceived that the same principle applies to cited, the 4th & 6th sections), if the lunatic be 3 L 2 884 THE TEUSTEK ACT, 1850. may convey con- tingent rights. Lord Chancellor may transfer stock of lunatic trustees and mortgagees. Power to transfer stock of deceased person. Court of Chan- cery may convey estates of infant trustees and mortgagees. IV. And be it enacted, that when any lunatic or person of unsound mind shall be entitled to any contingent right in any lands upon any trust or by way of mortgage, it shall be lawful for the Lord Chancellor, intrusted as aforesaid, to make an order wholly releasing such lands from such contingent right, or disposing of the same to such person or persons as the said Lord Chancellor shall direct ; and the order shall have the same eifect as if the trustee or mortgagee had been sane, and had duly executed a deed so releasing or disposing of the con- tingent right. V. And be it enacted, that when any lunatic or person of unsoimd mind shall be solely entitled to any stock or to any chose in action upon any trust or by way of mortgage, it shaU be lawful for the Lord Chancellor, intrusted as aforesaid, to make an order vesting in any person or persons the right to transfer such stock, or to receive the dividends or income thereof, or to sue for and recover such chose in action, or any interest in respect thereof; and when any person or persons shall be entitled jointly with any lunatic or person of unsound mind to any stock or chose in action upon any trust or by way of mortgage, it shall be lawful for the said Lord Chancellor to make an order vesting the right to transfer such stock, or to receive the dividends or income thereof, or to sue for and recover such chose in action, or any interest in respect thereof, either in such person or persons so jointly entitled as aforesaid, or in such last-mentioned person or persons together with any other person or persons the said Lord Chancellor may appoint. VI. And be it enacted, that when any stock shaU. be standing in the name of any deceased person whose personal representative is a lunatic or person of unsound mind, or when any chose in action shall be vested in any lunatic or person of unsound mind as the personal representative of a deceased person, it shall be lawful for the Lord Chancellor, intrusted as aforesaid, to make an order vesting the right to transfer such stock, or to receive the dividends or income thereof, or to sue for and recover such chose in action or any interest in respect thereof, in any person or persons he may appoint. VII. And be it enacted, that where any infant shall be seised or possessed of any lands upon any trust or by way of mortgage, it shall be lawful for the Court of Chancery to make an order vesting such lands in such person or persons in such manner and for such estate as the said court shall direct (a) ; and the order shall have the same (a) It is now settled, notwithstanding the doubts entertained at first (see Ke Soward's Estate, 5 De Gex & Sm. 435), that the Court will make an order, vest- THE TRUSTEE ACT, 1850. 885 effect as if the infant trustee or mortgagee had been twenty-one years of age, and had duly executed a conveyance or assignment of the lands in the same manner for the same estate (a). VIII. And be it enacted, that where any infant shall be entitled to Contingent rights any contingent right in any lands upon any trust or by way of mort- g^^j mortgagees, gage, it shall be lawful for the Court of Chancery to make an order wholly releasing such land from such contingent right, or disposing of the same to such person or persons as the said court shall direct ; and the order shall have the same effect as if the infant had been twenty- one years of age, and had duly executed a deed so releasing or disposing of the contingent right. IX. And be it enacted, that when any person solely seised or pos- Court of Chan- sessed of any lands upon any trust (6) shall be out of the jurisdiction the estate of a of the Court of Chancery, or cannot be found, it shall be lawful for trustee out of the jurisdiction of the said court to make an order vesting such lands in such person or the court, persons in such manner and for such estate as the said court shall direct ; and the order shall have the same effect as if the trustee had duly executed a conveyance or assignment of the lands in the same manner and for the same estate. X. And be it enacted, that when any person or persons shall be Court may make seised or possessed of any lands jointly with a person out of the juris- ^tere^neraoifs diction of the Court of Chancery, or who cannot be found, it shall be ^^^ seised of ^ Tii-i lands jointly with lawful for the said court to make an order vesting the lands m the parties out of person or persons so jointly seised or possessed, or in such last- J^^^iMi^ioo "i mentioned person or persons together with any other person or persons, in such manner and for such estate as the said court shall direct ; and the order shall have the same effect as if the trustee out of the jurisdiction, or who cannot be found, had duly executed a conveyance or assignment of the lands in the same manner for the same estate (c). XI. And be it enacted, that when any person solely entitled to a Contingent rights of trustees. ing an estate on a purchase to the uses the estate of the infant, irith the consent commonly called the uses to har dower ; of the tenant for life, will har the entail but will not incorporate a declaration that and remainders over. Powell t. Matthews, no woman shall be entitled to dower, this 1 Jur. N. R. 973. Seethe Interpretation being no part of the conveyance. The Clause as to the words "Convey," and woman, therefore (if married on or be- "Conveyance." fore Jan. 1, 1834), would be entitled to (5) An heir who takes the trust estate dower. Re Lush's Estate, 5 De Gex & by the disclaimer of the trustees, is a Sm. 435 ; Davey v. Miller, 17 Jur. 908. trustee within the section ; Wilks v. So an order has been made to vest the Groom, 6 De Gex, M. & Gr. 205. legal estate in the devisees of a mort- (c) As to the doubts entertained respect- gagor, subject to a charge created by his ingthe effect of theconoludingwoi'ds of this will. Re EUerthorpe, 18 Jur. 669. section and their solution, see Re Watts' s (a) Tenant for life with remainder to Settlement, 9 Hare, 106; Flyer's Trust, an infant in tail. A vesting order as to ib. p. 220; Smith-v. Smith, 3 Drewry, 72. 886 THE TRUSTEE ACT, 1850. contingent right in any lands upon any trust shall be out of the juris- diction of the Court of Chancery, or cannot be found, it shall be lawful for the said court to make an order wholly releasing such lands from such contingent right, or disposing of the same to such person or persons as the said court shall direct ; and the order shall have the same effect as if the trustee had duly executed a conveyance so releasing or disposing of the contingent right. Court may make ■jjjj_ ^^ ^g -^ enacted, that when any person jointly entitled with order m cases ' j r j j where persons any other person or persons to a contingent right in any lands upon with others out ^^7 trust shall be out of the jurisdiction of the Court of Chancery or of the junsdic- cannot be found, it shall be lawful for the said oouit to make an order tion of the court ' ' to a contingent disposing of the contingent right of the person out of the jurisdiction, ° ■ or who cannot be found, to the person or persons so jointly entitled as aforesaid, or to such last-mentioned person or persons together with any other person or persons ; and the order shall have the same effect as if the trustee out of the jurisdiction, or who cannot be found, had duly executed a conveyance so releasing or disposing of the contingent right. When it is un- XIII. And be it enacted, that where there shall have been two or certain which of several trustees more persons jointly seised or possessed of any lands upon any trust, and it shall be uncertain which of such trustees was the survivor, it shall be lawful for the Court of Chancery to make an order vesting such lands in such person or persons in such manner and for such estate as the said court shaU direct ; and the order shall have the same effect as if the survivor of such trustees had duly executed a conveyance or assignment of the lands in the same manner for the same estate. XIV. And be it enacted, that where any one or more person or the last trustee persons shall have been seised or possessed of any lands upon any trust, and it shall not be known, as to the trustee last known to have been seised or possessed, whether he be living or dead, it shall be lawful for the Court of Chancery to make an order vesting such lands in such person or persons in such manner and for such estate as the said court shall direct ; and the order shall have the same effect as if the last trustee had duly executed a conveyance or assignment of the lands in the same manner for the same estate. When trustee XV. And be it enacted, that when any person seised of any lands dies without an heir. upon any trust shall have died intestate as to such lands without an heir, or shall have died and it shaE. not be known who is his heir or devisee, it shall be lawful for the Court of Chancery to make an order vesting such lands in such person or persons in such manner and for was the survivor. When it is un- certain whether THE TRUSTEE ACT, 1850. 887 such estate as the said court shall direct ; and the order shall have the same effect as if the heir or devisee of such trustee had duly executed a conveyance of the lands in the same manner for the same estate. XVI. And be it enacted, that when any lands are subject to a Contingent right contingent right in an unborn person or class of unborn persons who trustee. upon coming into existence would in respect thereof become seised or possessed of such lands upon any trust, it shall be lawful for the Court of Chancery to make an order which shall wholly release and discharge such lands from such contingent right in such unborn person or class of unborn persons, or to make an order which shall vest in any person or persons the estate or estates which such unborn person or class of unborn persons would upon coming into existence be seised or pos- sessed of in such lands. XVII. And be it enacted, that where any person jointly or solely Power to convey seised or possessed of any lands upon any trust shall, after a demand refusing trustee, by a person entitled to require a conveyance or assignment of such lands, or a duly authorised agent of such last-mentioned persons, have stated in writing that he will not convey or assign the same, or shall neglect or refuse to convey or assign such lands for the space of twenty-eight days next after a proper deed for conveying or assigning the same shall have been tendered to him by any person entitled to require the same, or by a duly authorised agent of such last-mentioned person, it shall be lawful for the Court of Chancery to make an order vesting such lands in such person or persons in such manner and for such estate as the said coiirt shall direct ; and the order shall have the same effect as if the trustee had duly executed a conveyance or assignment of the lands in the same manner for the same estate (a). XVIII. And be it enacted, that where any person jointly or solely Power to convey entitled to^ contingent right in any lands upon any trust shall, after g° titled to con- a demand for a conveyance or release of such contingent right by a tingent right, person entitled to require the same, or a duly authorised agent of such last-mentioned person, have stated in writing that he wUl not convey or release such contingent right, or shall neglect or refuse to convey or release such contingent right for the space of twenty-eight days next after a proper deed for conveying or releasing the same shall have been tendered to him by any person entitled to require the same, or by a duly authorised agent of such last-mentioned person, (a) This and the following section have pendent on "demand" and on "refusal, been repealed by the Extension Act (see or neglect," substituted, sect. 2), and a simpler enactment de- 888 THE TRUSTEE ACT, 1850. it shall be lawful for the Court of Chancery to make an order releasing or disposing of such contingent right in such manner as it shall direct; and the order shall have the same effect as if the trustee so neglecting or refusing had duly executed a conveyance so releasing or disposing of the contingent right. Power to convey XIX. And be it enacted, that when any person to whom any lands morteasee. have been conveyed by way of mortgage shall have died without ■ having entered into the possession or into the receipt of the rents and profits thereof, and the money due in respect of such mortgage shall have been paid to a person entitled to receive the same, or such last- mentioned person shall consent to an order for the reconveyance of such lands (a), then in any of the following cases it shall be lawful for the Court of Chancery to make an order vesting such lands in such person or persons in such manner and for such estate as the said court shall direct ; that is to say. When an heir or devisee (5) of such mortgagee shall be out of the jurisdiction of the Court of Chancery (c), or cannot be found : When an heir or devisee of such mortgagee shall, upon a demand by a person entitled to require a conveyance of such lands or a duly authorised agent of such last-mentioned person, have stated in writing that he will not convey the same, or shaR not convey the same for the space of twenty-eight days next after a proper deed for conveying such lands shall have been tendered to him by a person entitled as aforesaid (d), or a duly authorised agent of such last-mentioned person : When it shall be uncertain which of several devisees of such mort- gagee was the survivor : When it shall be uncertain as to the survivor of several devisees of such mortgagee, or as to the heir of such mortgagee whether he be living or dead : i When such mortgagee shall have died intestate as to such lands, and without an heir, or shall have died and it shall not be known who is his heir or devisee : (o) The personal representative of a (c) See Hutchinson v. Stephens, 5 Sim. mortgagee who has not taken possession 498 ; Ex parte Dover, ib. 600, decided may obtain an order vesting the legal on the 1 W. i, c. 60. estate, which has descended to the heir, (d) See note (c), p. 837, for the deci- In him, notwithstanding the word "re- sions on the 8th section of the 1 W. 4, conveyance " points in strictness to a >;. 60, the words of which are nearly the conveyance to the mortgagor. JRe Boden's same. As to the instrument to be ten- Trmt, 1 De Qex, Mac. & Gor. 67 ; dered in the case of copyholds, see Rowley 9 Hare, 820 ; overruling Meyrick's Es- v. Adams, 14 Beav. 130, where the tate, 9 Hare, 116. question arose upon the 17th section, (5) See the interpretation clause, giving since repealed, an extended meaning to the word "devisee." THE TRUSTEE ACT, 1850. ^89 And the order of the said Court of Chancery made in any one of the foregoing cases shall have the same effect as if the heir or devisee or surviving devisee, as the case may be, had duly executed a conveyance or assignment of the lands in the same manner and for the same estate. XX. And be it enacted, that in every case where the Lord Power to appoint Chancellor, intrusted as aforesaid, or the Court of Chancery, shall, TOnvey" to certain under the provisions of this act, be enabled to make an order having ''^^^■ the effect'of a conveyance or assignment of any lands, or having the effect of a release or disposition of the contingent right of any person or persons, bom or unborn, it shall also be lawful for the Lord Chancellor, intrusted as aforesaid, or the Court of Chancery, as the case may be, should it be deemed more convenient, to make an order appointing a person to convey or assign such lands, or release or dispose of such contingent right ; and the conveyance or assignment, or release or disposition, of the person so appointed (a), shall, when in conformity with the terms of the order by which he is appointed, have the same effect, in conveying or assigning the lands, or releasing or disposing of the contingent right, as an order of the Lord Chancellor, intrusted as aforesaid, or the Court of Chancery, would in the par- ticular case have had under the provisions of this act ; and in every case where the Lord Chancellor, intrusted as aforesaid, or the Court of Chancery, shall, under the provisions of this act, be enabled to make an order vesting in any person or persons the right to transfer any stock transferable in the books of the Governor and Company of the Bank of England, or of any other company or society established or to be established, it shall also be lawful for the Lord Chancellor, intrusted as aforesaid, or the Court of Chancery, if it be deemed more convenient, to make an order directing the secretary, deputy secretary, or accountant-general for the time being of the Governor and Com- pany of the Bank of England, or any officer of such other company or society, at once to transfer or join in transferring the stock to the person or persons to be named in the order ; and this act shall be a full and complete indemnity and discharge to the Governor and Com- pany of the Bank of England, and all other companies or societies, and their officers and servants, for all acts done or permitted to be done pursuant thereto. (o) The conveyance should contain a have considered that the execution, ty the recital showing that it is made in obedi- person appointed to convey, of a deed ence to the order of the Court, and should purporting to be the conveyance of the be executed by the person appointed to trustee who refused, would, with a mere convey in his own name ; though the late reference in the attestation clause to the Vice-Chancellor of England, in a case order appointing the person to convey, be arising upon the 1 W. 4, c. GO, seems to sufficient. Ex parte Foley, 8 Sim. 395. ./. 890 THE TRUSTEE ACT, 1850. As to lands in XXI. And be it enacted, that as to any lands situated within the ancaster an duchy of Lancaster or the counties palatine of Lancaster or Durham, it shall be lawful for the Court of the Duchy Chamber of Lancaster, the Court of Chancery in the county palatine of Lancaster, or the Court of Chancery in the county palatine of Durham, to make a like order in the same cases as to any lands within the jurisdiction of the same courts respectively as the Court of Chancery has under the provisions hereinbefore contained been enabled to make concerning any lands ; and every such order of the Court of the DucKy Chamber of Lancaster, the Court of Chancery in the county palatine of iam- caster, or the Court of Chancery in the county palatine of Durham, shall, as to such lands, have the same effect as an order of the Court of Chancery : provided always, that no person who is anywhere within the limits of the jurisdiction of the High Court of Chancery shall be deemed by such local courts to be an absent trustee or mortgagee within the meaning of this act. When trustees of XXII. And be it enacted, that when any person or persons shall be jurisdiction. jointly entitled with any person out of the jurisdiction of the Court of Chancery (a), or who cannot be found, or concerning whom it shall be uncertain whether he be living or dead, to any stock or chose in action upon any trust (b), it shall be lawful for the said court (c) to make an order vesting the right to transfer such stock, or to receive the dividends or income thereof, or to sue for or recover such chose in action, or any interest in respect thereof, either in such person or persons so jointly entitled as aforesaid, or in such last-mentioned person or persons together with any person or persons the said court may appoint ; and when any sole trustee (d) of any stock or chose ia action shall be out of the jurisdiction of the said court, or cannot be found, or it shall be uncertain whether he be living or dead, it shall be lawful for the said court to make an order vesting the right to transfer such stock, or to receive the dividends or income thereof, or (o) Where the trustee out of the juris- shaw, 2 De Gex, Mao. & Gor, 900. diction is incapacitated from lunacy or (c) If the Court be asked to transfer infancy, the power of the Court must be the stock to new trustees appointed under sought for in the sections applicable to a power, it must first be satisfied of the cases of lunatics and infants, and not in fitness of the persons proposed, and all this section. Consequently, in a case parties interested must be served. Jie arising before the Extension Act (see 3rd MaynarWs Settlement, 16 Jur. 108i. section), the Court had no , authority to (d) A. and- B. being trustees, the make a vesting order with respect to Master found that it was uncertain stock held by an infant trustee out of the whether A. was living or dead, but that jurisdiction. Cramer v. Cramer, 5 De B. was living. Afterwards B. died. Gex & Sm. 312. Held, that A. was not a sole trustee (6) The husband of an executrix is a within the meaning of the 22nd section, trustee within the Act. £cc parte Brad- Re RoMdaiPs Will, 1 Drewry, 401. THE TRUSTEE ACT, 1850. 891 to sue for and recover such chose in action, or any interest in respect thereof, in any person or persons the said court may appoint. XXIII. And be it enacted, that where any sole trustee (a) of any Wlien trustee of stock or chose in action shall neglect or refuse to transfer such stock, traSfer^"^''^ *" or to receive the dividends or income thereof, or to sue for or recover such chose in action, or any interest in respect thereof, according to the direction of the person absolutely entitled thereto (5), for the space of twenty-eight days next after a request in writing (c) for that purpose sha"Il have been inade to him by the person absolutely entitled thereto, it shall be lawful for the Court of Chancery to make an order vesting the sole right to transfer such stock, or to receive the dividends or income thereof (d), or to sue for and recover such chose in action, or any interest in respect thereof, in such person or persons as the said court may appoint (e). XXIV. And be it enacted, that where any one of the trustees of When one of any stock or chose in action shall neglect or refuse to transfer such ^f^g^ock refuses stock, or to receive the dividends or income thereof, or to sue for or t° transfer or re- recover such chose m action according to the directions of the person over dividends, absolutely entitled thereto, for the space of twenty-eight days next after a request in writing for that purpose shall have been made to him or her by such person, it shall be lawful for the Court of Chancery to make an order vesting the right to transfer such stock, or to receive' the dividends or income thereof, or to sue for and recover such chose in action, in the other trustee or trustees of the said stock or chose in' action, or in any person or persons whom the said court may appoint jointly with such other trustee or trustees. XXV. And be it enacted, that when any stock shall be standing in When stock is the sole name of a deceased person, and his or her personal representa- name^of a"de- * tive shall be out of the jurisdiction of the Court of Chancery, or "eased person. cannot be found, or it shall be uncertain whether such personal (a) Sole trustee may mean the -whole obey the order of the Court was not number of the co-trustees. See inter- -within this section ; Mackenzie v. Mac- pretation clause. Jie Sartnall, 5 De hemie, 5 De Grex & Sm. 338. And so it Gex & Sm. 111. -was mider 1 W. 4, u. 60 ; see note (a), (b) A tenant for life is not a person p. 839. But see now sect, i of the absoltOehj entitled -within the meaning of Extension Act pro-riding for this case, the Act, except, perhaps, for the purpose (d) The Court cannot, under this sec- of an application limited to the income tion, make any order as to dividends only, nor is one of two trustees ; Mac- accrued due subsequently to the date of kenzie v. Mackenzie, 5 De Gex & Sm. request. Jie Hartnall, 5 De Gex & Sm. 338; more fully reported 16 Jur. 723. 111. See now sect. .4 of Extension Act. But persons duly appointed new trustees (c) The recusant trustee need not be are "absolutely entitled;" Ex parte served under this and the following sec- Russell, X Sim. N. S. 404 ; Baxter's tion. Baxter's Will, 2 Sm. & Giff. Will, 2 Sm. & Giff. Append, v. App. v. ; and see cases under 1 W. 4, (c) The case of a trustee refusing to c. 60, note (c), p. 837. 892 THE TRUSTEE ACT, 1850. representative be living or dead, or such personal representative shall neglect or refuse to transfer such stock, or receive the dividends or income thereof, according to the direction of the person absolutely entitled thereto, for the space of twenty-eight days next after a request in writing for that purpose shall have been made to him by the person entitled as aforesaid, it shaU be lawful for the Coiui; of Chancery to make an order vesting the right to transfer such stock, or to receive the dividends or income thereof, in any person or persons whom the said coiu^ may appoint. Effect of an XXVI. And be it enacted, that where any order shall have been legaTright to * made under any of the provisions of this act vesting the right (a) to transfer stock. any stock in any person or persons appointed by the Lord Chancellor, intrusted as aforesaid, or the Court of Chancery, such legal right shall vest accordingly, and thereupon the person or persons so appointed are hereby authorised and empowered to execute aU deeds and powers of attorney, and to perform aU acts relating to the transfer of such stock into his or their own name or names or otherwise, or relating to the receipt of the dividends thereof, to the extent and in conformity with the terms of such order; and the Bank of England, and aU companies and associations whatever, and aU persons, shall be equally bound and compellable to comply with the requisitions of such person or persons, so appointed as aforesaid, to the extent and in conformity with the terms of such order as the said Bank of England, or such companies, associations or persons, would have been bound and com- pellable to comply with the requisitions of the person in whose place such appointment shall have been made, and shall be equally in- demnified in complying with the requisition of such person or persons so appointed as they would have been indemnified in complying with the requisition of the person in whose place such appointment shall have been made ; and after notice in writing of any such order of the Lord Chancellor, intrusted as aforesaid, or of the Court of Chancery, concerning any stock, shall have been given, it shah not be lawful for the Bank of England, or any company or association whatever, or any person having received such notice, to act upon the requisition of the person in whose place an appointment shall have been made in any matter whatever relating to the transfer of such stock, or the payment of the dividends or produce thereof. Effect of an order XXVII. And be it enacted, that where any order shall have been ves ing ega made under the provisions of this act, either by the Lord Chancellor, (a) See note (6) p. 896, infra, and sect. 6 of the Extension Act. THE TEUSTEE ACT, 1850. 893 intrusted as aforesaid, or by the Court of Chancery, vesting the legal figM in a chose right to sue for or recover any chose in action or any interest in respect thereof in any person or persons, such legal right shall vest accordingly, and thereupon it shall be lawful for the person or persons so appointed to carry on, commence and prosecute, in his or their own name or names, any action, suit or other proceeding at law or in equity for the recovery of such chose in action, in the same manner in all respects as the person in whose place an appointment shall have been made could have sued for or recovered such chose in action. XXVIII. And be it enacted, that whensoever, under any of the Effect of an order provisions of this act, an order shall be made, either by the Lord lands orappoint- ChanceUor, intrusted as aforesaid, or the Court of Chancery, vesting ™^ ^"^ person to ■^ ° convey copyhold any copyhold or customary lands in any person or persons, and such lands. order shall be made with the consent (a) of the lord or lady of the manor whereof such lands are holden, then the lands shall, without any surrender or admittance in respect thereof, vest accordingly ; and whenever, under any of the provisions of this act, an order shall be made either by the Lord Chancellor, intrusted as aforesaid, or the Court of Chancery, appointing any person or persons to convey or assign any copyhold or customary lands, it shall be lawful for such person or persons to do all acts and execute aU instruments for the purpose of completing the assurance of such lands (6) ; and aU such acts and instruments so done and executed shall have the same effect, and every lord and lady of a manor, and every other person, shall, subject to the customs of the manor and the usual payments, be equally bovmd and compellable to make admittance to such lands, and to do aU other acts for the purpose of completing the assurance thereof, as if the persons in whose place an appointment shall have been made, being free from any disability, had duly done and executed such acts and instruments. XXIX. And be it enacted, that when a decree shall have been made ^]^^^ ^ decree is by any court of equity directing the sale of any lands for the payment ™*^<^ ^"^ ^^]^ °* ircdii 6Su3iTi6 top of the debts (c) of a deceased person, every person seised or possessed payment of debts. of such lands, or entitled to a contingent right therein, as heir, or (a) There appears to he a conflict he- (b) See form of order appointing a tween the practice in the different hranches person to complete the assurance of a of the Court upon the question whether a copyhold estate. Se Hey's Will, 9 Hare, Testing order will be made imthout the 221. lord's consent, "valeat qucmtvm ;" see (c) A sale for payment of cos r where there is no SO to do without the assistance of the Court of Chancery, it shall be exia ing ms ee. jg^^^ f^j. ^jjg g^j^j Court to make an order appointing a new trustee or new trustees, whether there be any existing trustee or not at the time of making such order (a). Chancellor may X. In every case in which the Lord Chancellor intrusted as afore- ^p'^intment o7 ^^^^ ^^ jurisdiction under this Act, or the Trustee Act, 1850, to trustees, without order a conveyence or transfer of land or stock, or to make a vesting that it should he order, it shall be lawful for him also to make an order appointing made in Chan- ^ new trustee or new trustees, in like manner as the Court of eery, &e. ' Chancery may do in like cases, without its being necessary that the order should be made in Chancery as well as in Limaoy, or be passed and entered by the registrar of the Court of Chancery. As to powers XI. That all the jurisdiction conferred by this Act (6) on the Lord trasteT^ththe Chancellor, intrusted by virtue of the Queen's sign manual with the care of lunatics, care of the persons and estates of lunatics, shall and may be had, (a) See note (d) p. 895, supra, as to were, as respects the jurisdiction con- the douht which led to this enactment. ferred by the Trustee Act, 1850, removed (6) See Re Waugh's Trust, 2 De Gex, by the 15 & 16 Vict. c. 87, s. 15 (date Mao. & Gor. 279. Re Pattinson, 21 of Koyal Assent, 1st July, 1852). L. J., Ch. 280. The doubts there raised, TEUSTEK EXTENSION ACT, 1852. 907 exercised, and performed by the person or persons for the time being intrusted as aforesaid. XII. That this Act shall be read and construed according to the Act to be con- definitions and interpretations contained in the second section of the ^^tee Act Trustee Act, 1850, and the provisions of the said last-mentioned Act l^^O. (except so far as the same are altered by or inconsistent with this Act) shall extend and apply to the cases provided for by this Act, in the same way as if this Act had been incorporated with and had formed part of the said Trustee Act, 1850. XIII. That every order to be made under the Trustee Act, 1850, All orders^made or this Act, which shall have the effect of a conveyance or assignment ^^ j^ggg „j. of any lands, or a transfer of any such stock as can only be transferred "''^ ■*"*> *" ^ chargeable with by stamped deed, shall be chargeable with the like amount of stamp the same stamp duty as it would have "been chargeable with if it had been a deed „ "n^el^?**^ "^ executed by the person or persons seised or possessed of such lands, or entitled to such stock; and every such order shall be duly stamped for denoting the payment of the said duty. APPENDIX. No. I. , Strode r. Winchester. Supra, p. 7 1 . The following is a brief note of the case from the Registrar's Book : No. I. Ferdinando John Paris, being desirous of leaving his fortune to Lucy Naomi Strode, but without the knowledge of her husband, who had married her against the wishes of the testator, fixed upon Eliza- beth Gough, the mother of the said Mrs. Strode, to be the sole trustee, and acquainted her therewith, and received a solemn promise from her, that she would take care of every thing for the separate use of her daughter. Paris, by his will, gave all his real and personal estate to Mrs. Gough, and made her sole executrix ; and by a paper writing, which bore even date with and accompanied the wiQ, he addressed Mrs. Gough as follows : — "1 have given you the whole of what I have in the world, and I wish I had more to give in the same way. You know the unhappy reason why I could not leave you a partner in the donation, but I greatly trust you wiU answer my often declared design and intention, and therefore would not fetter you with any trust, nor with any co-executor ; and I beg you to answer my purpose most efifectually, in full opinion whereof I have made my wiU in this manner, relying on your fidelity therein. One of my motives to this disposition is, the promise I made to my late wife in her last moments to take the best care I could of you and yours. I have other motives also, from your own great care and trouble taken for me ; and, lastly, the great and true regard which I have for yourself and that dear girl, who was my wife's favourite. Do not disappoint my expectation of you." A mass of evidence was read relative to the intentions of the testator, and the conduct and the declarations of Mrs. Gough, and the Court decreed, " that by virtue of the last wiU of the testator, and the letter accompanying the will, and the evidence in the cause, the devisee was and ought to be deemed a trustee of the real and personal estate, for the separate use and benefit of Mrs. Strode." — Beg. Lib. 1766, B. fol. 515. No. II. Abbot V. Lee. Supra, p. 189, 797. " The substance of the plaintifif's bill appeared to be, that George No. II. Cuthbert, the testator, having issue two sons, William and Edward, and two daughters, Jane and Mary, did, about May, 1681, make his 910 APPENDIX. Ko. II. will, and therein, amongst other things, did devise to Ms daughter Jane 660Z., and to his daughter Mary the like sum of 5501., and directed that those sums should be laid out by his executors in a purchase of lands, at the discretion of his executors, within one year after his decease, for the use of his said daughters and the heirs of their bodies lawfully to be begotten ; and in case either of his daughters should die before marriage, that then 1501. of her money, or in case the money be laid out in lands, then lands of the value of 1502., out of her share of the lands so purchased, shovdd go to the surviving sister, and the other 400J. to his sons, equally to be divided between them and their heirs ; and the said George Cuthbert, by his said will, did also devise unto his said sons all the lands in his said will particularly mentioned ; and in case his sons died without issue, then he devised those lands to his daughters and the survivor of them and their heirs ; and he gave the use of his household goods to his wife, and after her decease the same were to be divided amongst his children, at the discretion of his executors ; and of his will he made Jane his wife (now the wife of William Leach), and the defendant Lee, executrix and executor, in trust for his said sons and daughters. That after his decease, the executors executed the will, and possessed themselves of the real and personal estate, but did not lay out any part of the money in a purchase of lands. That both the sons, and Jane, one of the daughters, died iu their minority im- married, and the plaintiff married Mary, the surviving daughter, who also died without issue ; and the plaintiff took out letters of adminis- tration to her, and thereby became entitled to her legacy of 5501., and to 150J. of Jane's legacy. That the defendant Cuthbert pretends that he is entitled to aU the estate, both real and personal, of the said George Cuthbert, as his next heir at law, by the words of the said will, and that the defendant Lee ought to account to him, and not to the plaintiff. Wherefore, to have a discovery and an account of the testator Cuthbert's estate, and that the defendants, the executors, may account for and pay to the plaintiff the several legacies devised to the said Mary by the will of the said G. Cuthbert, and the plain- tiff be relieved, is the scope of the bill. Whereto the counsel for the defendant WiUiam Cuthbert insisted that the defendant WiUiam Cuthbert by his answer confessed the will, and that the testator's sons and daughter Jane died unmarried, and that Mary, the plaintiff's wife, died without issue, and he beUeved the plaintiff was her adminis- trator, but not entitled to her legacy, for that he the said defendant was entitled to her legacy, for that he the said defendant is entitled to the 1100?. given to Jane and Mary, he being heir at law to the testator and to his children ; and that if the llOOJ. had been laid out in lands, as it ought to have been, then the same would have descended to him, and that therefore he claims the same, but submits to the judgment of the Court whether the plaintiff be entitled to any part thereof. Whereupon, and upon long debate of the matter, and hearing of what was insisted by counsel on either side, and upon producing of an order made in the said cause, whereby it was ordered that the plaintiff might proceed to hear the cause against the defendant Lee only without prejudice in regard the defendant Leach and his wife, though duly served with process to appear, yet had not appeared, but sat in contempt to a serjeant-at-arms, and were insolvent and could not be found, the Court declared, that the 550J. legacy devised to Mary, and APPENDIX. 911 150J. of Jane's legacy, did belong unto the plaintiff as administrator to Nq. II. his wife, and that the defendant Cuthbert had not any right or title to the same as heir at law to George Cuthbert or his children, or otherwise ; and doth therefore think fit and so order and decree, that the defendant Lee do account, &c. (the usual order), and out of the money which shall appear to be in the said defendant's hands, upon such accovmt, the said defendant is hereby ordered and decreed to pay unto the said plaintiff the aforesaid sums of 650L and 150!., or so much thereof as the same shall amount unto." — Beg. Lib. 1689, A. f. 177. No. III. Cogan v. Stevens. Supra, p. 189. November 24th, 1835. Sir Christopher C. Pepys, Master of the Rolls, — "This case involves No. III. a question of great and general importance, and of principles which might be supposed to be of very general application ; and so it woidd appear to be from the circumstance of several cases having come before me since the argument of the cause, involving the same question ; and yet it appears I am called on to give the first judicial opinion on the subject. The question is simply, whether, when a testator directs money to be invested in land for certain purposes, some of which are lawful and take effect, but others fail and become void, the property so given, after satisfying the lawful purposes, belongs to the next of kin. or to the heir of the testator. The testator, Lewis Stevens, by his will, dated at Lisbon, 11th July, 1789, after describing himself as a native of Exeter, and enumerating the particulars of his property, which he stated to amount to 100,000Z. sterling, proceeds thus : — ' As to the disposal of those worldly goods which I leave behiad me, my order is, that after my funeral expenses are paid, and all my just debts, and 24,000 milreis to my dearly beloved wife, Mary Biyanna Bulkely, now Stevens, that the sum of 30,0001. sterling be laid out immediately by my executors hereunder mentioned, in the purchase of an estate or estates in the county of Devon or Cornwall, the income of which shall belong to my widow dviring her natural Ufe. And after her decease the said income shall belong to my dear brother WUliam, or his children lawfully begotten ; and if he dies without children, the said income shall belong to my brother Jedediah and his children lawfully begotten ; and if he dies without issue, then this income shall belong to my brother John James and his children lawfully begotten ; and if he dies without children, then this income shall belong to my dear sister Philadelphia and her children lawfully begotten ; and if she dies without children, then the income of this estate or estates, which shall be purchased and always run in my name, shall be employed in the establishment of a charity school for boys in the city of Exeter, for the purpose of teaching them to read, write, and cypher, and foreign languages, which boys shall be natives of the counties of Devonshire or Cornwall. And I hereby order my executors to purchase this estate or estates in my name, and register the same, and this my determination, in proper places, that the Chamber of Exeter may take charge thereof in default of the regular succession above men- tioned, and erect the school as hereby directed, which school shall be 912 APPENDIX. No. III. " called Stevens's Charity School ; and the regulations for its establish- ment I leaye to the said Chamber of Exeter, and my cousins Charles and Joseph Lyne, if they survive, with orders to set immediately about this useful establishment.' He then gave certain pecimiary legacies, and the residue of his fortune he gave and bequeathed in the following manner, dividing the same into fifteen parts. He gave three-fifteenths to his brother WUliam, three-fifteenths to Jedediah, three-fifteenths to John James, three-fifteenths to Philadelphia, two- fifteenths to his cousin Charles Lyne, and one-fifteenth to Joseph Lyne. Then after the above-mentioned disposition was made, they were to receive and divide as the money came in, as his aflfairs went on liqiiidating ; and he nominated his executors, his brothers William and Jedediah, and his cousin Charles Lyne, or in default of either of his said brothers, he nominated his brother John James, and in default of his cousin Charles Lyne, he nominated his cousin Joseph Lyne ; and he declared that what he left should be divided out in full, as it was liquidated ; and if any of the executors refused taking charge of the executorship, his share should be forfeited to the benefit of the others ; that if any of his brothers or sisters should die before him, or either (rf his two cousins should die before him, that then the share of the deceased should be divided among the remaining five heirs of the residue. The wiQ was proved by Jedediah Stevens ia 1795, by John James Stevens in 1826, and afterwards by Charles Lyne, who took the name of Stevens, and is now the personal repre- sentative of the testator. The SOfiOOl. never was laid out in the purchase of land : it was invested in the public funds, and now con- sists of 30,996 J. in the four per cents., of which fund the testator's widow received the dividends untU her death, which took place in 1827, before which event all the devisees had died without issue, WiUiam in 1803, Jedediah the same year, Philadelphia in 1824, and John James in 1826, so that upon the death of the tenant for life aU the limitations as to the estate to be purchased by the 30,OOOJ. prior to the direction of establishing the school at Exeter have failed, and the question is, who is now entitled to the 30,000!. — ^the plaintiff, who, on the reference made at the hearing of the cause, is found to be the heir, or the defendant, who claims it as part of the per- sonal estate of the testator in the event which has happened ? Upon principle, and upon analogy to several well-established rules in equity, it would appear that there is no doubt as to the proper solution of this question. The only difficulty arises from some few cases or dicta of the Judges, which it is impossible to reconcile with these principles or these rules ; and some of the cases proceed from authority so high, that, if not absolutely binding on the Court, they ought at least to make it extremely cautious in pronouncing any judgment inconsistent with them. If a testator devises land for purposes altogether illegal, or which altogether faU, the heir-at-law takes it as undisposed of. If a testator gives personal property for purposes altogether illegal, or which altogether fail, the next of kin takes it, as in the case of an intestacy, as undisposed of. If a tes- tator devises lauds for purposes which are in part illegal, or which partially faU, or which require part only of the lands devised, the heir takes so much of the land as is undisposed of, and which was destined for the purpose, which by law cannot, or in fact does not, take effect, and so much as is not required for the purposas of the APPENDIX. 913 will ; and tliis' whether the land be actually sold or not. But here, No. III. it is said, the analogy between the cases of land and money ceases, and that if a testator directs money to be laid out in the purchase of land for purposes which are partly illegal, or which partially fail, the next of kin has no such interest in the money, as cannot be applied to the purposes of the will ; but if there are purposes legal and feasible which require the investment, the next of kin are excluded. And why are they to be so excluded ? The proposition assumes the property in. ques- tion, that is, a portion of the interest in the property, is not disposed of by the will, and the law gives to the next of kin all the personalty not disposed of. Is it from any incapacity in the next of kin to take property which exists in the form of land 1 That cannot be. In equity money may be considered as land, or land as money, according to cir- cumstances. A man who has agreed to sell his land, and dies intestate, dies seised of the land — ^his property exists as land — it descends as land to the heir. The next of kin, so far from being incapable of succeeding to property that exists in the form of land, are entitled to the purchase money to be paid in lieu of the land so contracted to be sold. So it is with respect to mortgages in fee, of which the mortgagee dies seised, so that it cannot be that his next of kin are to be excluded, because the property exists in the form of land. But if there be this' difficulty in stating why the next of kin are to be excluded, there is at least as much difficulty in showing how the heir at law may be entitled, as regards the personalty. The proposition assumes the property was personalty of the testator at the moment of his death, and there was no seisin in him of any thing of any inheritable quality. Can the heir, as such, inherit what never was inheritable ? Can he take from the ancestor what the ancestor never had ? It cannot be necessary to pursue this any further. If the heir cannot take, as such, there is then one other character in which he can take : he must claim under the will. Doubtless an heir may take as devisee in such a case, but then he must show from the will itself a gift in his favour. He must show an intention that in the events which have happened, the heir should take ; but this supposition the proposition itself excludes, because it assumes an intention to bestow the whole benefit on others ; and there is not in this case, or in the case supposed, any intention expressed, or to be implied, as to the destination of the property in the event of the disposition made not taking effect. If indeed an heir claims as such, he is not defeated by the intention to disinherit, if manifestly any such intention for any reason fails to take effect. I am now considering the claim of the heir, not by virtue of that title which the law gives to him of inheriting all the property not effectually given away, but as a devisee under the wiR — ^but as the person designated by this testator as his devisee, and in the event that has happened. If the testator was simply to direct an investment of a sum in land, and declare no trust in it, the heir might with some plausi- bility contend the testator could have had no other object but to create or add to his real estate, and that it might be enjoyed in that line by whom that description of property is by law inheritable. But it is obvious, when the particular purpose of the investment is declared, and the particular persons are specified, as alone the objects of the testator's dis- position, there is no place for any such contention. If, under such circumstances, the heir were to take as devisee, he would take in defiance of all the rules by which the rights of other persons claiming as devisees are regulated. He would take not only without any words 3 N 914 APPENDIX. No, III. of gift, or any expression of intention in his favour, but against the true intent that others and not he should have the whole interest in the pro- perty. If the devise of personalty for a piirpose, part of which fails, be to be considered as a devise to the heir to the extent and as far as the object fails, why is not a devise of land to be converted into money for purposes which partially fail to be considered as a devise to the next of kin to the extent of the failing of the first object of the gift ? The same expressions may be used in both instances ; and yet in one the legal successor to land is to take, yet in the other the legal successor to money is to be excluded. Under the circumstances, and for these reasons, had the case come before me to be decided on principle and on authority independent of two or three cases to which I shall particularly refer, I should not have felt any difficulty in deciding against the claim of the heir. It remains to be considered whether I am bound by these cases to decide in his favour. An observation was made by Mr. Pemberton at the hearing, which removes much of the difficulty which would otherwise have arisen from the cases, namely, that no authority of an earlier date than Achroyd v. Smithson ought to have much weight with me. The force of this obser- vation will be felt, on adverting to what Lord Thurlow says in deciding that case. He says, ' I used to think, when it was necessary for any purpose of the testator's disposition to convert the land into money, that the undisposed land would be personalty.' Now this is precisely the argument used as to the conversion of money into land by Mr. Hodgson ; and here I cannot but observe, that this subject of conversion has given rise to two of the ablest arguments ever addressed to any Court — ^that by Lord Bldon on the one side ia Achroyd v. Smithson, and that by Mr. Hodgson on the other, in the present case — an argument, which has, since it has been delivered, been frequently mentioned at the bar in terms of the highest praise, and in which I gladly avail myself of this opportunity to express my entire concurrence. In that argument it was necessarily admitted, if all the purposes of a devise failed, the whole belongs to the heir (gu. next of kin). But it was contended, that if the purposes are to be in part executed, and so that the right to have such an investment of money in land eflfectually existed in any one to answer such partial purpose, that the land so purchased, after answering such partial purpose, belongs to the heir. So thought Lord Thurlow, as to lands directed to be sold, before the argument in Achroyd V. Smithson-. No wonder, then, that there should be found before that time traces of authority in favour of the heir's claim to money, as there was of the next of kin's claim to land : but the exclusion of the latter is now too well settled to be disputed, and the argument for the heir rests on a supposed diflference between the two. But no such difference was supposed to exist before Achroyd v. Smithson : why then should it exist now ? If there be any substantial difference in principle, let it prevail, but if in principle there be no distinction, are not the decisions in Achroyd v, Smithson and the subsequent cases of higher authority than any decision which may have taken place before the principle was so thoroughly discussed and established as it was in that case ? In deciding in favour of the next of kin, I am following the principle of Achroyd v. Smithson, and maintaining that uniformity of decision as to the conversion of land into money, and of money into land, which was supposed to exist before that time. The case of Lechmere v. Lord Carlisle, (a) was cited for the heir ; but this and all other cases in which (a) 3 P. W. 211. APPENDIX. 915 the conversion was in the lifetime of the testator, I consider as not No. III. bearing upon the case. Indeed, in one view, these cases may be thought to bear against the claim of the heir. They proceed on this — that whereas, by the obligation to convert money into land in the life- time of the settlor, the money had become land iu the ancestor, whenever the property was so situated the heir was held entitled to it. In the present case, the heir claims that which unquestionably was personalty at the moment of the death of the ancestor. Of the other cases cited for the heir, some were in support of his right as such claiming by in- heritance, others in support of his claim as devisee. I will consider the latter class first. Smith v. Claxton (a), which does not appear to me to have much application. There land was directed to be sold for purposes, some of which failed : it was decided that the heir took what was not required for the purposes of the wiU ; and the only question was, whether he took it as money or as land. This has no bearing on the question, whether in this case the heir or the next of kin of the testator are entitled. There the observations of Sir John Leach may be material, when some other of his decisions are to be observed upon hereafter. He says, ' The heir at law is entitled because the real estate was land at the devisor's death, and this part of the produce is an interest in that land not effectually devised, and which therefore descends to the heir. It is for this reason that the produce of an estate which the devisor directs to be sold can never be strictly part of his personal estate. If a devisor directs such produce to be paid to his executors,, and applied as part of his personal estate, the executors take it as devisees. '^ Amphlett V. Pa/tke (6) came before the same learned Judge first. He thought the case came within the authority of Dmrowr v. MotUvcc (c), and Mallabar v. Mallabar (d), and expressed his regret he was there bound to decide, that in that case, as the real estate was directed to be sold, and the proceeds were directed to be taken as part of the personal estate, and to- be applied, together with his personal estate, in paying personal legacies, a gift of the residue of the personal estate passed, by the death of the legatee, a legacy arising from the real estate. He says, ' It is only from deference to these two cases that I arrive at the conclusion in this case, that the testatrix had in her view the improbable intention, that the monies arising from the sale of the real estate should, for pur- poses not foreseen by her, have the same quality as if at her death they had been part of her personal estate.' Sir John Leach adhered to this opinion when the case was brought before him in 1827, as reported 4 Bussell, 75 ; but Lord Brougham reversed this decree, and decided in favour of the heir. "Whatever may be the right decision in Amphlett v. Parke, the circumstances are so different from the present case, that it cannot be considered as bearing upon it. In that case the question was, whether the proceeds of the real estate, which were destined to the lapsed legacies, passed under the residuary clause. In the present case there is no residuary clause, but the heir claims under a direction to purchase land for purposes which faU. Fhillips v. FUllips (e) comes nearest to the present. In that case there was a devise of land for sale and a direction that the proceeds should be deemed to be paxt of the personal estate, and should be subject to the disposition afterwards made of the personal estate. The proceeds of the sale and the personal (a) i Madd. 484. (d) Cas. t. Talb. 78. (6) 1 Sim. 275. (e) IM. &K. 649. (c) 1 Yes. 390; ^ 3 N 2 916 APPENDIX. No III estate were then given to trustees to pay the debts and legacies, and the residue of the proceeds and of the personal estate was to be divided into fifths, to be paid to five residuary legatees. The death of one of them occasioned a lapse as to one-fifth. The question was, whether so much of it as arose from the proceeds of the land belonged to the heir or next of kin. Sir John Leach thought the next of kin entitled, rest- ing his judgment on cases which had decided that the residuary clause might pass what was intended for legacies which lapsed or could not be carried into effect, considering the provision of the will before him as amoimting to a direction, that the proceeds of the real estate should be considered as personal, not only for the purposes of the will, but for purposes never contemplated by the testator. To support that decision on his own principles, he must have considered the will as amounting to a direction that the proceeds of the land should be appKed not only to the purposes of the will, but, iu the event of any of those purposes failin g, for the nest of kin. It forms no part of the present purpose to consider whether that case can be supported on principle, or on any preceding authority. It is sufficient to observe, that it professes to be founded on a direction, that the proceeds of all the land should be deemed to be part of his personal estate, and it was merely a construction put on such a bequest : in the present case there is no direction that the money to be invested should be deemed to be part of the testator's real estate. If there had not been such a direction in Phillips V. PhilUps Sir John Leach states that the rule established in Ackroyd v. Smithson would have prevailed. His judgment, there- fore, in that case is no authority for the claim of the heir in t is. In the next case of Jessopp v. Watson (a) he decided in favour of the heir, because he did not find in the will an expression equivalent to a direction that the proceeds of the real estate should for aU pur- poses be considered as if it had been personal estate at his death. On principle, therefore, the heir has not the authority of that learned Judge, because it cannot be said in this will there are any expressions equivalent to a direction that the money to be invested should be considered as if it had been real estate at the time of the testator's death. In Robinson v. Knight (b) the testator directed land to be purchased, and that it should be settled, after a previous limitation, to the use of his own right heirs, and the question was between the heir at law and the residuary devisee. This was a mere question of con- struction between the parties, each of whom had upon the will sufficient terms of gift, whereas in the present case there is an absence of any terms of gift in favour of either of the contending parties. In support of the claim of the heir as such, not as devisee, the case of JSayford v. Ben- lows (c) was cited, not on account of the point decided, which was merely that, under the will, the residuary legatee took clear of debts, which were held to be payable out of the real estate, but for the sake of certain expressions used by Lord Cowper in giving judgment. He says, ' If a sum of money could be devised in trust to be laid out in land, and the uses to which the land shoiild go be not declared, if the money thus devised be considered as land, why should not the benefit of the money go to the heir at law as a resulting trust ? ' It is on this, in the first place, to be observed, that this was not a point in the case, but the expression is merely a dictwm. The decision was in 1716, and therefore (a) 1 M. & K. 665. (6) 2 Eden. 155. (c) Ambl. 682. APPENDIX. 917 long before Achroyd v. Smithson, which was in 1^80 ; and Lord Cowper No. III. throughout considered the rule as to money directed to be laid out in land, and land directed to be sold, as identically the same. Had he therefore considered the rule as to the proceeds of land directed to be sold to be as it was established in Achroyd v. Smithson, he could not have used this expression as to money directed to be iuvested in land. It is also to be observed, no case is cited as bearing on the proposition alluded to in the judgment. The case of Leslie v. The Duke of Devon- shire (a) is that which creates the greatest difficulty. In that case the testator, by deed, created a trust of 60,000?., which he had on mortgage, and certain freehold leases and leases for years. The-60,000i. were to be laid out ia land, to be settled as to part on certain uses to his son and two daughters, and their children (it failed with them, all dying without issue), the ultimate remainder to Joyce Leslie in fee. As to certain other parts, to certain other uses to his widow and children, which failed, and with ultimate remainder to Thomas Lyster in fee. And as to 8,500Z., part of the 60,0001., due on a particular mortgage, and his freehold leases and leases for years, on trust, to secure certain annuities to his daughters, and the fee of the land to be purchased by the 8,600Z., and the absolute interest in the freehold leases to his son. In this deed there was reserved a power of revocation ; and the testator by his wiU revoked the grant of two leases for years, and of a mortgage, part of the 60,000?., but not part of the 8,500?., and he charged his annuities to his daughters on the 8,500?. mortgage, and another of 6,700?., not included in the settlement ; and he introduced another annuity to another person ; and then directed, that the said annuities being paid, the surplusage of interest of the two mortgages, or of the rents of the land to be purchased, should be paid to his son for Ufe, and then should be settled in trust, after the manner, and under the same conditions, limitations, and restrictions, as his other estates were directed to be settled. All the testator's children died without issue, but the son devised aU his real and personal estate to his wife ; she died intestate as to her real estate, and the Duke of Devonshire, who was her heir, and who derived his title from the testator's son, claimed the 8,500?. and the 6,700?. To support this claim, it was endeavoured to show the testator's son had been entitled to these sums as real estate. It was immaterial whether he was entitled under the deed, as devisee imder the wiU, or as heir. His counsel made three points : first, whether the gift was void, and, as such, went to the personal representative ; secondly, whether it was to be divided into portions between the classes of devisees ; and, thirdly, whether it went to the third class, that is to say, to the son in fee ; and they insisted on the third of these propositions. It is to be observed, that they did not claim it as having vested in the son as heir, on the supposition of the devise being void for uncertainty, although that would have been equally maintainable, but seemed to assiune, if the devise was void, then the personal representative would take the mortgages, and, if the decision had been merely in favour of the Duke's claim as deriving title through the heir of the testator, it would obviously have been referred to the ground taken in argument by, his counsel, and would have been no authority in support of the claim of the heir in the present case ; but, according to Mr. Brown's report of the judgment. Lord Kenyon took no notice of the point urged, but (a) 2 B. C. C. 187. 918 APPENDIX. No. III. decided in favour of the title of the heir, on the ground of intestacy, and this without time taken for consideration, without any one case being cited, or any argument addressed to that question. Possibly Lord Kenyon's view of' the question was mistaken by the reporter : as it stands, it appears to be an authority for the claim of the heir. The character of the Judge entitles every decision of his to the highest respect, but in this case the circumstance above mentioned detracts from the authority of the opinion expressed. The case of Tregomwell v. Sydrni^ Tw/rn (a) was also much relied on ; but that case also is applicable only on account of certain observations of Lord Redesdale, and not from the decision itself. The testator devised land in strict settlement, subject to a certain trust for raising 20,000!., which were directed to be laid out in the purchase of land to be settled to certain uses, which were void, as being too reiuote ; and the decision was, that the 20,000J. belonged to the heir. This decision does not touch the present question ; that was not personalty directed to be invested in land, but land first directed to be converted into money and re-invested into land, and all the purposes for which this was to be done having failed, the heir took the land so directed to be converted into money. Lord Redesdale does not advert to this circumstance, but is made to say, ' It has been established in many cases, that where land is directed to be turned into money, or money is directed to be laid out in land, both shall be considered as that species of pro- perty into which they are directed to be converted. Considering the 20,0002. as land, the disposition not being capable of being carried into effect, who is to take ? The heir at law must take. If the testator had directed 20,0002. to be paid out of the personal estate, and lands to be purchased, these lands, on failure of the intended purpose, would go to the heir at law ; the personal representative could not .take, as the money was converted into land.' It is to be observed. Lord Redesdale, in this observation, considers the same rale as applicable to the conversion of land into money as money into land, and yet the observation he makes as to the latter, if applied to the former, would be directly at variance with Aekroyd v. Smithson. Unquestionably, however, if Lord Redesdale did use this expression, the heir at law in this case has his high authority in support of the proposition for which he contends. But I can consider them only as dicta, there being other and better grounds to support that judgment. The case of Fletcher v. (Jhapman{b) has been considered as conclusive in favour of the claim of the heir. It is so treated in Mr. Jarmari's edition of Powell on Devises, vol. ii. p. ^4, and was -so argued in this case. If I considered that case as a distinct decision of the point in question, I should, as the decision of the House of Lords, have felt bound by its authority. That case, therefore, required my most anxious consideration, and I have had the Registrar's Book examined, for the purpose, if possible, of throwing some light on the report. The par- ticulars of that case, as taken from the Registrar's Book, are as follows : — George Goodman, the testator, by his will directed 1,000L to be invested in the purchase of lands, to be so settled as that WiUiam Goodman, his nephewi should have an estate therein for his Kfe only, and in case William Goodman did not do such acts as should be necessary whereby to limit the said land so to be purchased as that he might only have an estate for life therein, and likewise to bar himself of aU other claims and demands in, unto, or out of the estate of George Goodman, then he (o) 3 Dow. 19i. (5) S B. P. C. Toml. ed. 1. APPENDIX. 919 devised to the said William 40J. only. Jane, tlie testator's widow, was No. III. his administratrix. She paid William G-oodman SOOl. on account of the 1,000Z., and advanced him 200!., which two sums he laid out ia the purchase of land, and then died, ■ leaving two children, George, who afterwards died, and the defendant, Jane Fletcher, both at that time infants. The defendant Cockerell was the guardian of these children, and on their behalf entered into an agreement with Jane, the adminis- tratrix of the testator, by which it was arrajiged that the 2001. advanced by her to William should go in further part of the 1,0002., and she shoidd pay to Cockerell the remaining 500!., which was accordingly paid, whereon he conveyed certain land to Jane, the administratrix, and to the defendant Newton, as a security that the 300?., the 200!., and 500!. should be laid out and settled according to the intent of the testator. Elizabeth, the late wife of the plaintiff, Thomas Chapman, was the heir at law of the testator, and the other plaintiff, Roger, was Thomas Chapman's son. Jane, the administratrix of the testator, died, and there is no statement in the pleadings as to any representation of the testator's estate having been obtained after her death. The plaintiffs were the surviving husband of the heiress of the testator, and his son, and the defendants were Newton, the trustee, and Cockerell {who had entered into the arrangement, and who had received the 700!., and who was also administrator to William Goodman), and Jane, the only sur- viving child of WiUiam Goodman ; and the object of the bill was, to have it declared the 1,000!., or the land purchased with it, belonged to Ehzabeth, the heiress of the testator, as against the children of William Goodman. On the part of the defendant Cockerell, it was insisted the whole administration to the testator had been granted to Gabriel Good- man, with Jane : he died in the lifetime of Jane, and they had agreed the testator's debts and legacies should be paid, and to that end the securities in writing concerning his personal estate should be deposited in the hands of the defendant Newton. He then stated a suit, after the death of William Goodman, to which Elizabeth Chapman, the heiress of the testator, was party, in which a decree was made in 1680, to take accounts of the testator's estate. He then stated the estate so conveyed by Cockerell to Jane, as administratrix to the testator, had been settled on Jane and George, the two children of William Goodman ; the other part of the 1,000!. had been invested on mortgage ; and insisted that Jane Fletcher, the only surviving child of William Goodman, was entitled. The defendant Newton, by his answer, represented himself solely as a trustee of the land conveyed by Cockerell, and submitted to act as the Court should direct. By the decree it was declared, that, the testator having declared that William Goodman should have an estate for Hfe only, the 1,000!., or land purchased therewith, belonged to the testator's heir at law, and not to the children of William Goodman. It directed the payment of the 7001. received by Cockerell from Jane, the adminis- tratrix of the testator, and an account, and payment of the rents of three-fifths of the land purchased by William Goodman, and a conveyance of the three-fifths, and the other two-fifths of the rents of this land to be paid to the defendant, Jane Fletcher ; the plaintiff, Thomas Chapman, to have the whole of the 700!., and the interest of three-fifths of the land, for his life, and afterwards to his son, the other plaintiff. It is quite clear, in this case, there was no contest between the real and personal representative of the testator, George Goodman. There was no personal representative before the Court. It was said in the argument 920 APPENDIX. No. in. in the case now before me, that Newton represented in fact the personal estate, because it had been assigned to him. There is no trace of this in the pleadings of record : it is undoubtedly stated in CockereE's answer, that by articles in 1773, it was agreed between Jane, the widow, and Gabriel, the administrator of th« testator, the testator's debts and legacies should be paid, and to that end the securities and writings concerning his personal estate should be deposited in the hands of the defendant Newton. This was only to insure the arrangements between the parties, and gave Newton no interest in the property ; and he does not claim any. From this decree the child of William Goodman appealed, and Chapman, representing the heir of the testator, was respondent. It is reported in 3 B. P. C. 1. But here, also, it is obvious there was no question between the real and personal representative of the testator. Jane, his administratrix, had paid the 1,000?., and no person repre- senting his personal estate was in any way a party to the contest. It is a case in which the heir was declared entitled to the money directed to be laid out in land, not to any declared purpose which failed, but for the limited interest, that is, for the life of William Goodman ; but it is not a decision that, even in that case, the heir was entitled against the personal representative. No such case was made by the pleadings, or argued, or decided, and, there being no party to raise that question, this case therefore decides nothing as to the present matter in contest. Greaves v. Gase, as reported 1 Vesey, jun., 548, would appear to be an authority for the heir, but in the report of the same case, 2 Cox, 301, it is stated the plaintiflf was both heir at law and next of kin, and therefore entitled in one character or the other : it was not discussed in what character he took, and the point decided was a different one. Many cases were cited against the claim of the heir, but as they were either to establish general principles, which I do not consider in dispute, or with reference to the point in the case, to which the opinion I have formed on this particular point makes it needless for me to advert, I do not think it necessary to examine them in detail. I may observe, no case was cited against the heir in which the point now contended for by Tiim was directly raised and decided. It was argued, indeed, that Abbot v. Lee (a) was precisely this case : but it appears the decision, although against the testator's heir, was not in favour of his personal representa- tive, but gave the 550J. and 150J. to the representative of Mary, the legatee, considering that her interest in these sums was absolute. There are, however, some of the cases cited for the defendant, which, although not precisely the case before me, are most important, as showing, that when the whole object of the bequest of money to be converted into land fails, the personal representative is entitled, and as showing the question of conversion of money into land, and land into money, has by the highest authority been considered as regulated by the same rules. Such are the cases of Bobinson v. Taylor (6), Townley v. Bedwell (c), besides others, to which I need not refer. The result of the whole authorities seems to be, that before Ackroyd v. Smithson no distinction was recognised between the doctrine as applicable to a conversion of money into land, or land into money — that as to both an opinion prevailed, that when a conversion was necessary, and part of the object failed, the unappropriated proceeds belonged to that representative on whom the law cast that description of property in which such proceeds (o) 2 Vem. 284. ,(i) 2 B. C. C. 595 ; 1 T«s. j-un. 45. (c) 6 Ves. 194. APPENDIX. 921 were found to exist. This, as to land converted iato money, was No. III. corrected in Achroyd v. Smithson; but no case has occurred in which the point has been argued and determined as to money converted into land. I say argued and determined, because, if determined in LesUe v. The Duke of Devonshire and Fletcher v. Chapman, it certainly was not argued ; but there are undoubtedly dida of very eminent Judges, since that time, which seem to show an impression on their mind, that the principle of Achroyd v. Smithson was not to be applied to a conversion of money into land. Those learned Judges had not the benefit, which I have had, of hearing the point fully and most ably argued ; and having, after the fullest consideration, come to the conclusion that that principle does apply to the present case, and as I am not bound by any of the autho- rities to maintain a distinction which was not originally supposed to exist, and which cannot be maintained in reason, and which, therefore, if maintained, would be a reproach to the law as it stands, I feel myself fully justified in preserving the uniformity of the rule, as applicable to the two cases, by deciding against the claim of the plaintiff ; and I may be allowed to express some satisfaction in finding I am not compelled by authority to hold that any heir should take, as such, what had no inheritable quality, but was pure personal estate, at the time of the ancestor's death, or that, as devisee, he should take that which was never destined for him, but was in most unquestionable terms given to another. One other point was made for the heir, to which now I will very shortly aUude. It was said, as the testator had directed the estate should be purdiased and remain in his name, his heir must have been a trustee of it, and, if it had been so purchased and so vested in the heir, there would be no equity on the part of the next of kin, as against the heir, to convert this land into money. That proposition fails in all its parts : there is nothing to show the heir is to be a trustee : the heir might indeed have borne a diBferent name : if he had been a trustee, he would have held it as a trustee, and not as heir. And the rule, that there are no equities between representatives, would have had no application ; and if it had, it would have been fatal to the claim of the heir, who now seeks, after all the purposes of the wUl are answered, to convert to his own benefit, against the next of kin, what was money at the testator's death, and has ever since so remained. The argument of John James Stevens, the plaintifi', rests on the supposition that the 30,000Z. ought to be considered as land as between the real and personal representative ; and as my judgment is against the validity of such claim, the biU must be dismissed, but without costs. I have some reluctance in refusing to give the defendants the costs, because, in general, I think that those who try the experiment of a claim should pay the expenses of it if they fail, however reasonable the ground may have been for trying it ; but this question is so involved in difficulty, from what has taken place and been said in Courts of equity at diflferent times, and arises so much from the act of the testator, from whom both claim, that I think it fair each, party should bear their own costs," 923 APPENDIX. No. IV. Supra, p. 568. Appomimient of new Trustee of Stock. No. IT. This Indenture, made the day of between E. F. of and G. his wife (the donees of the power), of the first part ; A. B. of (the continuing 1/rvstee), and C. D. of (the reti/ri/ng trustee), of the second part, and I. K. of (the new trustee), of the third part : Whereas, by an indenture of settlement bearing da;te the day of , and made or expressed to be made between, . Trusts of, trustees cannot change, 496 Trustees of, how appointed where no direction in deed of endowment, 498 CHARGE. DEBTS or legacies of in will, raises implied trust in devise, &c., 173 where it implies power of sale, 261 ; see 248, and.440, et sej. See Receipts (Charge of Debts) Devise by trustee in general terms, its operation on, 263 does not prevent legal fee in mortgage from passing under " seewriiies " for money, 264 on devise distinguished from exception from devise, 191, et seq, DisTiNQUiSHBD from partial decla/ration of trust, 179 ; and see Resulting Trust Duplication of, 167 Limitation, late Statute of, mere charge not an express trvtst within, 746 secjts as to charge, coupled with duty, 746, 747 not barred by, whilst secured by unbarred term, 747 Power to, not a usual power, 165 CHARGING ORDER, under 1 & 2 Vict. u. 110, 669, 671. See Judgment CHARITABLE TRUSTS ACT. See Charity Commissioners, 504, 511, 784 Amendment Act, 785 CHARITABLE USES. Frauds, Statute of, within, 61 Purchaser without notice from purchaser with, bound by, 726 Statute of, commission under, 779 CHARITIES. See Information, Mortmain, Visitor Account, 786, et seq. See Remedy, inf. Administered by trustees, where, 492 INDEX. 947 CHARITIES— confirmed. Alienation, of charitable property by trustees, not permitted, 602 whether absolutely, or for reserved rent, 603 or by granting long, renewable, or reversionary terms, ib. permitted under special circumstances, 603,615, 782; see note (/) and leases, sale, or exchange can now be made with consent of commissioners, 50i Altekation of scheme or purpose, not permitted, 495, 496 notwithstanding power to make bye-laws, 499 trust originally intended will be preserved, 497 ; and see 499, 711 but letter may be contravened, where spirit of trust preserved, 499 Act of Parliament necessary for total alteration, 499 how application for Act authorised, 499, 785 Beeach of trust, by retainer of Charity Funds, 502. See Ineokmatioit, Remedy, inf. Commissionebs of inquiry into, 783, 784 ; see 779 CONSTBUOTION OF TRUSTS FOR, 496, et seq. for •■' chapel," 495, 496, 497 ; " repairing and rebuilding," 601 "free grammar-school" "free-school," (see 3 & 4 Vict. c. 77), 499, 600 loans, 602 " master, finding a," 501 " minister," 498 " poor, relief of," 501 rates, in aid of, 496 " repairing," 496, 501 salaries, where augmentation allowed, or reduction ordered, 502 " worship of God," where executed in favour of established form of religion, 497 where in favour of dissenters, ih. species of religious worship primd facie determined by trust deed, 497 ; and see 499 and if not defined, then by usage ; and see 7 & 8 Vict, c .46, B. 2, 497 ; see also 495, 497, 499, 711 BoTiEs OP TRUSTEES for, Ch. xviii. p. 492 See Alienation, Alteration, sw/). Incorporated, government of corporation belongs to visitor, 492 ; and see Visitor management of revenue subject to Chancery, 493 new donations distinguished from original endowment, as respects visitorial power, 494 Investment of accumulations, whether in purchase of land, 604 on mortgage, 504, 506 of moneys arising from sale or exchange with consent of com- missioners, 504 Limitation, Statute of, as to Charities. See Remedy (6), inf., 749, 750, 786 Leases of charity lands. Charitable Trusts Acts, how to be made under, 604 cormderation for, fines, rents, &c., 606, et seq. should be adequate, when granted, 506; see 607 whether fines might have been taken for, 506 direction by founder that rent should not be raised, not taken literally, 507 tenant who dealt fairly not turned out, 507 allowance to tenant for permanent improve- ments, 611 granted at undervalue, who shall compensate charity, 507 covencmis for trustee's private advantage, should not contain, 605 du/ration of building leases should not exceed 60 or 90 years, 510 ; see now, 511 husbandry leases, should not exceed 21 years, 508 ; see now, 611 for years determinable on lives, have been sanctioned, 609, 610 ; but see 643 BO, for lives on payment of fines, 510 3 p 2 y48 INDEX. CRARlTmS— continued. Leases os chabitt lands — contitmed. governors cannot lease to, or m trust for, one of themselves, 605 ; relation of trustees to, unadviaable, 505, 507 Mesne rents and profits. See Eemedy (6), inf. /I New trustees, appointment of, 498, 711, 716; see 718, and note (c) 1 1 direction to appoint when reduced to a given number, 527 Payment, of stock, &o., held on trust for, to official trustees, by order of Commissioners, an indemnity, 382 Realty, oonvetance op, upon trust for, what formalities necessary Tinder 9 Geo. 2, 0. 36, 504 ; see 132 where charity may take lease stamped with trust for conversion, 808 Remedy fob breach oi' trust (a) MODE OF, Ch. xxvi. s. 4, 778 ordinarily by information, 779 ; where by Kll, 779, note (1) relators joined on accomit of costs, 779 commissions under Statute of Charitable Uses, 779 by petition imder Eomilly's Act, 779 construction of Act, 780 ; cases within, 781, 782 proceedings under, 782, 783 under Chantable Trusts Act, 784 by equity judge at chambers, where income above SOI. per annum, or charity within City of London, 784 by District Court of Bankruptcy and County Court, where income less than SOI. per annum, ih. appeal from, when allowed, 784 previous consent of Charity Commissioners to proceedings, when required, 785 (6) Extent op, 786, et seq. Accownt of mesne rents, what directed, 789 ; see 788 Compromise vrith Attorney-General, when allowed from hardship, 789 Corporation property, how attached, 791 Incomvenience, how far applicable as a bar, 787, et seq. lAmitations, Statute of, charitable trusts not within, 786 whether within late stat. 749, 750, 786 Misiahe, trustees acting from, not made to account, 790 Parish, no retrospective account against, 791 Presumption, how far it applies, 787 corporation compared with individuals, 790 Rents. See Lease, swp.. Resulting Trusts, inf. Resulting trusts, how far legacies to charities result, 191, et seq. ; see 193, 194, note (6) not presumed on gift in favour of charity, but with no object, &c. ; but Court directs application, 198 increased rents applicable as original gift, 198 exception to this rule, 199 Schemes for, under Romilly's Act, 782 new, approved provisionally by Commissioners, 785. Trustees op, entertaining opinions contrary to founder, removed, 711 majority of, binds minority, 298 Court sometimes appoints part of number to act as quorum, 299 Trusts fob, synonymous with public trusts, 23 CHARITY COMMISSIONERS. Advice, may give, and persons acting under, indemnified, 785 Attorney-General, they may certify cases for his interference, 784 Exchange op lands, may authorise. See Investment, inf., 504 Inquiries, may make, 784 Investment of moneys arising from sale or exchange by, 604 Leases, may authorise building, &o., 504 trustees of charities must have sanction of, for lease longer than 21 years, 511 New trustees, appointment of, their sanction required for, 718 Official trustee of charity lands, who is, 786 of charity funds, 786 ; see 382 Pbooebdinos, before taking, their consent where necessary, 784, 785 INDEX. 949 CHARITY COMMISSIONERS— coTOimwd Sale op lands, may authorise. See Investment, swp., 504 Scheme, new, may provisionally approve (to be submitted to Parliament), 499, 785 CHARTER, charities by, 492 CHATTELS. See Administration, Chose in Action, Execotor, Deed. Failure oe C. q. t., Forfeitdrb, Investment, Monet, Policy Assets in hands of executor, 261, et seq., 681, 685. See Exeodtob Custody oe, Ch. xiii. s. 2, 332 Devolution of, to administrator, or executor of trustee, 260; see 279 Disclaimer oe, 236 Execution, taken in, 647, 648, 662 whether for debt of trustee, 261, 280 ; and see Execution Executory trust of, in articles, how construed, 149, et seq. in wills, ih., 158, et seq. See Executory Trusts Interest, where trustees take under a charge, 251 ; and see 257 under devise, subject to late Wills Act, 259 limitatwn to A. and his heirs for certain duration, 255 Limitation, how far chattels capable of, at law by deed, 104 ; by will, il. chattels may be subjected to, by way of trust, 104 limited by way of trust to A. and his heirs are personal estate, 131 cannot be entailed, ib. ; and see Executory Trusts Personal, c. g. t. entitled to possession of, 593 money, notes, &o., distinguished from other chattels, 768 trust of, not within Statute of Frauds, 61 once created by parol, not affected by subsequent parol declaration of settlor, 61 but in case of will, see QQ voluntary settlement of, good against purchasers, 93 secus as against creditors if settlor indebted, ib. Real, otfeme covert. See Feme Covert prerogative probate, when required for, 261 , trusts of, within Statute of Frauds, 61 voluntary settlement of, void against purchaser, 93 Reputed ownership of, 277, et seq.; see 593 Special trusts and uses, chattels are subject to, 4, 5 Tenant for life of, 594 Trusts of. See Limitation; sap. of chattels, are not affected by Statute of Uses, 7 CHILD. See Illegitimate, Infant purchase in name is prima fade an advancement, 207. See Advancement, 2 CHOSE IN ACTION, 85, 86. See Feme Covert' assignment of, by trustee, power of attorney how to be qualified on, 426 notice by purchaser of, how it gives priority, 605, et seq. See Notice pwchaser of, from trustee, holds subject to same equity as trustee, 729 trust, once considered in the nature of, 9 ; secus, afterwards, 11 trustee of, should reduce into possession if possible, 326 CHURCH. devise of tithes, &c., how carried out in equity, 104 ; and see Advowson, Chapel CHURCHWARDENS, and Oveeseees. See Overseers CIRCUITY. Court of equity avoids, 749, 765, note; and see 94, 660, 661 CLAIM. See Bill in Chancery adverse to c. q. t., trustee should not make, 325 ; see 878 CLERK. election of, 107. See Parishioners CO-EXECUTOR. See Co-trustee, Executor COHABITATION. bonds, 138, note (6) COLLATERAL. equitable powers may be, 525 COLLECTOR. trustees may employ, of debts, 557 ; of rents, 656 950 INDEX. COLONIES. Enactments passed at home, when they are bound by, 62 Lands in, within Lord St. Leonards' Trustee Act, 835, note (d); and see Trustee Act, 54, 56 Trust may be usually enforced of personal property in, 47 how far, of real estate in, 47, et seq. COMMISSION. See Trouble Executors in the East Indies, whether they may charge, 647 ; see note (S) Mortgagees, Trustees, &e., cannot charge, 646 seem as to trustees for absentees of estates in West Indies, 646 may be allowed to trustee by settlor, 550 may be stipulated for with c. q. t., 651 or with Court before acceptance of trust, 663, et acq. COMMISSIONERS. charity. See Charitt Commissioners COMMITTEES OF LUNATICS. may not cha/rge for time and trouble, 646 have no interest, and therefore office does not swrvive, 299 cannot make repairs without previous order, 524 COMMON LAW. Courts, have no jurisdiction of trusts, 19, 261 ; see 249, note (c) qu. whether they can notice breach of trust, 37, note (/), 581 Trusts at, Ch. v. s. 1, 66 COMMON. Tenancy in. See Joint Tenancy, Tenancy in Common COMPANY. See Parties, 847, Trustee Extension Act, ss. 6,7 ■ Conversion of shares in, where bequeathed in succession, 812 Public, does not usually take notice of trusts of shares,' &o., 858 Restraining order under 6 Vict. o. 6, s. 4, applicable to shares in, 860, 863 COMPENSATION. from person who benefits by breach of trust, 392, 768, 771 ; see 363, 846 in case of charity, lease at undervalue, 507 COMPLICATED. where account is, relief in equity on legal title, 763, note trust whether within Lord St. Leonards' Trustee Act, 836, note (c) Statute of Frauds, s. 10, 696 ; 12 Vict. i;. 110, s. 11, 669 COMPOUND INTEREST. when charged, 362, 363, 397 COMPOUNDING. with creditors, whether trustee thereby unfit for office, 711, note (c) debts, powers of trustees as to, 520, et seq. COMPROMISE. with Attorney-General, in accounts of charitable trusts, 789 COMPULSORY. payment into Court, Ch. xxix. s. 4, p. 864. See Payment into Court CONCEALMENT. of breach of trust, will make co-trustee liable, 317 of fraud, prevents bar to equitable relief, 734, 743 ; see 754, note of right to estate, account carried back to accruer of title, 766, note CONCURRENCE. c. q. t. by, estopped from proceeding against trustee, 773 secus where c. q. t. a. feme covert or infant, 774; except in case oi fraud, ib. or as to feme covert who has separate estate without restraint, 775 ; co«/.'778 or where c. q. t. acts in ignorance, 774 CONDITION legacy for charity charged on devise by way of, creates resulting trust, 193 CONDITIONS OF SALE. what, trustees for sale may impose, 423 CONFIDENCE. in person explained, 2 ; see 22, 530 not so strictly applied as to uses, 10 in what sense a trust said to be, 16 words expressing testator's confidence may raise a trust, 168 INDEX. 951 CONFIRMATION by o. q. t. of breaches of trust, general requisites of, 472, 777, 778 feme covert cannot make, except as to separate estate, witbout restraint, 471, 777 ; conf. 778 by widow, of promise made during coTerture, 776 infcmt cannot make, 471, 777 ; see 776 CONSENT. by c. q. t. to breach of trust, effect of, 768, 769 feme covert of, required by trust, 348 iwoestment to be made with, 340 pwchase to be made with, 807 CONSIDERATION. See Charities (Leases) Generally family differences, reconciling, a good consideration, 94 necessary, is not to support a confirmation, 472 what sufScient for release or wamier, 751 is not for a trust perfectly created, 81. See Voluntart ASSUEANOE will, consideration is implied by, 58, 167 Meritdrious, agreement or im/perfect trust founded on, how far enforced, 94, et seq. not against settlor though under seal, 94 ; see note (/) creditors of settlor, or purchaser from him, 99 whether against heir or volunteer of settlor, ift. ; see note (/) extends to creditor, child, wife, 95 ; see 796 cannot be urged by parent against his child, 95, note (a) Nominal, 177, on bargain and sale, 96 Taluable, where it exists trust not averrahle 57 ; trust enforced, 81 to whom consideration of marriage settlement extends, 406 may be proved aliwnde as against third persons where deed apparently voluntary, 477 CONSOLS. £3 per cent, proper investment of trust money, 351 ; see 813 CONSTRUCTION. Devise, of, to uses, 268 Instrument, of, is question for Court, 73, 74 Leqal estate, as to, taken by trustee, Ch. xi. s. 1, 246, et seq. ; and see Legal Estate Powers of, 527, et seq. See Powers Trusts of, governed by same rules as construction of legal estate, 141 for charities. See Charities (Construction), 495, et seq. executory in marriage articles, 147, et seq. in wills, 153, et seq. See Exeodtoet Teusts CONSTRUCTIVE TRUSTS. See Trade Bankruptcy op Trustee, how affected by, 276 Cases op agents, factors, &c., 225 ; see 217, 220 ; but see, as to agent, 226, 459 attorney violating his duty, 226 decree for sale, person to convey under, 839, note (e) ; see 834, note (/), 836, note (c), 837, note (d), and see 882, note (d), 894, note (d) equitahle waste, 225 holder of title deeds how far constructive trustee for remainder- man, see 227, 228 ; see 691 notice of trusts, constructive trustee by means of, 228 on renewal of leases by executors, trustees, &c., 217- mortgagee, 218; but see 221 tenant for life, or other having partial interest, 218 yearly tena/nt, 219 ; how far by tenant at will, or by sufferance, 219 what circumstances will not vary rule, 220 ; and see note (i) expenses of renewal by tenant for life, 222 how far annuitants should contribute to fine, 223 trustee's liem for, 222 mesne rents and profits and sub-fines, trustee accounts for, 223 ; see 224 952 INDEX. CONSTRUCTIVE TBXJSTS— continued. Cases of agents, &c, — continiied. renewal, right of, trustee cannot sell, 220 reversion, how far trustee purchasing, a constructive trustee, 225 terms of assignment, from trustee to c. q. t., 223 volunteers and pwrchasers with notice from trustee, remedy against, 224 Distinguished from Implied Trusts and Trusts bt Operation of Law, 140, note (1) Belief as to, barred by laches, 224, 742 ; see 750 Statute of Limitations, 729, 730, 746 Statute of Frauds, how far it affects, 228, et seq., 762 distinction between trust arising on a will and on a convey- ance, 230 CONTINGENT INTEREST. See PossiBiLiTT equitable, c. q. t. may assign, 600 owner of, entitled to have it secured, 723 ; and see 868 cost of filing bill for, 368 LANDS in, disposable under 8 & 9 Vict. c. 106, 817, note {d) CONTINGENT REMAINDERS. Effect of Pines and Recoveries Act, 411; of 8 & 9 Vict., c. 106, 156,412 Freehold, where legal, must be supported by particular estate ; secus in trusts, 104 Trustees for preserving DUTIES OF, Ch. XV. 404; see note (a), Waste, m/. 1. Until eldest son has attained 21, obligation to preserve re- mainders imperative, 405, though settlement voluntary, 406 Court will not sanction destruction, 407; exceptions to rule, 407, 408 remedy for destruction of, 406 extended only to those who claim as purchasers, 406 issue, during life of parent, cannot sue as " heir," 407 2. After eldest son has attained 21, the trustees become "hono- rary trustees," and the destruction of the remainders is a matter of discretion, 408 Court will exercise discretion for trustees, 409 punishes fraudMUnt, exercise of discretion, iJ. allows destruction on eldest son's marriage, ih, does not allow destruction without cogent reason, ih. A fortiori not for culpable object, as payment of father's debts, ib. but trustee not necessarily liable because Court would not have so acted, 410 whether any distinction between will and settlement, 410, 411 Trustees for preserving limitation to how usually framed, and object of, 404 " and their heirs," whether it can be out down, 253, et seq. whether necessary since 8 & 9 Vict. c. 106, 156, 412, 413 a special trust not within Statute of Uses, 247 Receiver, trustee for preserving, may be, 319 Waste, duty of trustees to preserve, to prevent, 408 " CONTINUANCE OF TRUST." power during, 531 CONTRACT. See Agreement, Covenant, Specific Performance by feme covert as to separate property, 633 under Fines and Recoveries Act, 634, note (c) private, trustees may sell by, 422 purchase, for, of fee by A., if A. die, executor pays price, but heir entitled to purchase, 799. sale, for, raises implied trust, 174 of land by A., if A. die, fee descends to heir, price belongs to executor, 799 CONTRIBUTION. charities founded by means of, their trusts, how expounded, 497 co-trustees, amongst, on breach of trust, 768 ; as to costs, 767 INDEX. 953 CONTRIBUTION— comtMimed none where fraud, 768 seem in favour of assignees of bankrupt trustee, 773 how worked out, 845, 846 rule of, in renewable leaseholds, 395, 398, et seq. See Renewable Lease- holds CONTROL. how far Court will control powers, 538. See 696, Powees trustee must not put trust property out of his own, 334, et seq. CONVERSION. See Gavelkind, Reduction (into possession) Implied, in cases of personal property given in succession, (o) where investment not wasting, but not authorised by Court, 812 ; see 352 e. g. forHgn bonds or stocks, shares in canals, insurance, railway companies, &c., ib. secus where money invested on mortgage unless beneficial to call it in, 354 where s. Decree in suit pai-alyses trustees' powers, 524, 544 secus as to mere institution of suit, 524 Deleqation of discretionary trusts not permitted, 296; see 449 Directory explained, 627 Disclaimer upon, continuing trustees may exercise special powers, 632, 633 ; and see 534 Discretionary, 526, 701 ; see 22, 386, and Arbitrary, sup. Distinguished, 524 ; and as to mixture of trust and power, see 22 ; and see Gift, inf., and 429 Executory trusts, what powers may be introduced under, 164, et seq. Equitable distinguished from legal powers, 625 , may be annexed to estate or simply collateral, ih. General powers op trustees, Gh. xix. s. 1, p. 512 trustee may do without suit what is compellable by suit, 513, 619 as to advancement, 518, 519; alienation of charity estates, 615, and see 603, and Sale; appropriation of legacy hy executor, 617; bill in parliament opposing, 615 ; promoting, 516, and see 494; debts admitting, 622, and see 487; compounding, pay- ing, or releasing, 620, 624; improvemsnts, 613, 614; iniwranoe, 516; investment, &ee Investment, and 624; leasing, 522, see 416, and Leases; maintenance, 517; mortgaging, 416, 417, see Executor (powers); receipts, see Receipts and Executor (powers) : reimbursements of expenses, 621 ; releasing, see Debts, sup. and Release; repairs, 513, 514; sale, see Executor (powers) ; timber, as to, 516, and see Timber ; varying securities, 523 Gift, words of distinguished from words of powers, 700 Imperative, 526, 536, 694, 701, et seq. Court will execute on failure or default of trustee, 696 ; and see 543 where settlor has prescribed any rule. Court adopts it, 696 where no rule, equality is equity, 700 ; see 707 in favour of what objects Court will execute where immediate exercise is contemplated, 703 ; see note {d) where immediate exercise is not contemplated, 704 ; where power testamentary, ib. ; not merely testamentary, ib. ; by deed or will, 705 "next ofhin," in favour of, construed "nearest of kin," 707 "relations," in favour of, how construed, 705, et seq. ; poor " rela- tions," 698, note (1) to whom donee of power may appoint, 705, 706 ; to whom Court may appoint, 706, 707; whether pea- stirpes or per capita, 706, 707, and note (b) when to one of a class exclusively, 707, 708 Implied ; see Implied Powers Legal ; see Construction, Equitable, snp. New trustees of, appointing; see New Trustees " Proper," what authorised by this term, 164 Sale of, authorised under settlement by reference, 165; and see Sale distinguished from trust for sale, 429 Selection of ; see Selection Special powers of trustees, Ch. xix. s. 2, p. 524 ; see Assignment, Con- struction, Control, Disclaimer, sup., Survivorship, inf. Strict, explained, 527 1000 INDEX. FOVfERS— continued. SuRVivoESHip OP, mere power to several does not survive, SS6 trust or power imperative survives, ib. where given to trustees by name, semble, 538 qu, as to arbitrary power annexed to trust, ib. "Usual," 164 Will to appoint bt, contemplates those who answer description at death of donee, 170, 704 PRACTICE. See Answer, Bill, Costs, Ikeoematiok, Parties, Pleading, Petition Alterations in, 368, et seq. ; 852, 864, 865 Application to Lord Chancellor, when visitor of charity, by petition to Great Seal, 495 Appointment of new trustees, 583. See New Trustees Distringas, as to, 858. See Distringas Feme Covert, having separate estate, as to, 633, 640, 858 Patmbnt of MONET INTO COURT, as to, 864. See Payment of mokei into court Eeoeivee, as to, 869. See Reoeiveb Stop orders, as to, 613, 614 Wilful default, account with, not ordered on further directions, 765 conf. as to interest, 359 PRECIPE. equitable tenant to, 604 PREACHER. gift to find a, 495 ; and see Minister PRECATORY WORDS, force of, 167 wUl not create trusts where objects or subject-matter of trust uncertain, 168, et seq. PRECAUTIONS to be adopted by trustee. See Duties of Trustee, Invest- ment PREROGATIVE. See Probate PRESENTATION. tmst to purchase in favour of a particular person within statutes against simony, 136 trustee presents, but at discretion of c. q. t, 269, 318 PRESUMPTION. See Advancement,' Resulting trust. Bak^jCpbom to relief in equity, 735 (see Limitation of suits) ; how far applicable to trusts for charities, 787 Election of, by c. q. t., 823, 824 Infant, gift to, presumption that he takes beneficially, 39 OF Law, may be rebutted by parol evidence, 181 PREVENTION. of breach of trust; rights of c. q. t. in Ch. xxv. p. 710. See 0. Q. t. PRINCIPAL. See Investments (Liabilities) has absolute property, factor has only special property, 275 release of, discharges accessory, 777 PRIORITY. See Notice, Stop order PRIVATE. Contract, whether trustees, &c., may sell by, 422 Trusts, 23; limits of their duration, 23; see 103, 111 PRIVILEGES. of c. q. t., 592, et seq. See c. Q. T. of trustee, 268 PRIVITY. as applicable to cestui qite use, explained, 3 ; where released as to trusts, 11 estate, of, explained, 3, 18 ; extent of term "privity of estate," 18 person, of, explained, 19 PRIZES. taken in war, 25, 101. See Crown INDEX. 1001 PROBATE. Duty not payable on proceeds of land to be converted into money, 807 Pkeeogative, when required, 261 ; sovereign, will of private property of, not admitted to, 25 PRODUCTION. DooWMENTS OF, how trustees should covenant for, 425 VouOHBES OF, trustee must make, 428. See 599 PROHIBITION. issued against spiritual court interfering in a trust, 20 PROMISSORY NOTE, 338. See Bill of Exohanqe PROOF. bankruptcy in. See 269, Trustee, inf. mortgagee, by, in administration suit, bankruptcy, and trust for creditors, 485 Tbustee, on bankruptcy of. 357; and see 771, 772 "PROPER POWERS." to tenants for life, what powers authorised by, 166 PROPERTY. what may be subject of trust. Oh. iv. p. 45 how far property out of jurisdiction, 47 ; and see Abroad, Jubisdiotion PROTECTION. c. Q. T. of. See c. Q. T. (Protection), Distringas, Payment into ConRT, Rboeitbr Trustee, of. See Indemnity, Trustee Relief Acts PROTECTOR. Of settlement under Fines and Recoveries Act, 411, 412 Consent of, to vesting order under Trustee Act, 885, note (a) Disclaimer, how he must make of office, 237 Special, whether one will be appointed of settlement, in pursuance of executory trust, 157 Trustee he is not, in respect of his power of assent, 412 PROVING WILL. an acceptance of trust, 239 ; but see 240 PROXY. appointment of, distinguished from delegation of office, 297 PUBLIC. Policy ; see 497. Securities,, 352 Trusts same as charitable trusts, their duration permanent, 23 PUR AUTRE VIE. See Copyholds (for lives) not within stat. de donis, and cannot be entailed, 603, note (1) limited to one and heirs of his body, not a fee conditional, ib. PURCHASE. Power to purchase by way of investment, 349 Resulting trust, where created by purchase in name of third person, 199, etseq. See Resulting Trust not when in name of child, &c., 207, et seq. See Advancement Trustees by, reversion of renewable leaseholds, 225 Trdstees for sale by, of trust property, 460, et seq. See Sale; Tenant foe life PURCHASE MONEY. whether bound by judgments against vendor, 654, 666 PURCHASER. See Settlement (Rectification) Accidental damage to estate purchased, he must bear, but is entitled to improvements, 174 Application of purchase money, where he must see to, 430, et seq. See Receipts. 0. Q. T., purchaser is a c, q. t. suh modo, 175 ; see 799 Charity estate, of, 503, 504. See 515, 782, note ^) _ Chose in action of, from trustee bound by same equity as trustee, 729 Dying intestate and without heir, after payment of purchase money, but befoi-e conveyance, vendor keeps estate, 322 1002 INDEX. PURCHASER— comfanued Equitable interest, of, must inquire of trustee as to prior incumbrances, 604 must give notice of his own, 605 ; (and see Notice) ; how he takes priority, 729 Equity to settlement oifeme covert, as against, 370 Heie taking as, see 17, 148, 680 JnDSMENT CEEDITOE, is Dot a purchaser, 280 ; and see 668, note (a) Legal charge, purchaser bound by, whether with or without notice, 18, 282 Lunatic ob idiot, purchaser from without notice, 27 Notice. See Equitable interest and Legal charge. Lunatic swp. ; Trust and Use, inf. Security to solicitor for costs, set aside even as against purchaser, 550 Trust, where bound by purchaser of legal estate with notice bound, 725 rule applies to cofistructive trusts, equitable incum- brance, or lien, 725 to conveyance by fine, 224 notice presumed from recitals, 224 without notice, not bound, 725. See 224, 406, 469 whether he can protect himself by getting in legal estate, 726 with notice from purchaser without, not bound, ib. without notice from purchaser with, not bound, ii. in case of equitable interest, see 729 but rule does not apply to charitable use, 726 trustee selling to purchaser without notice, and then becoming owner, trust revives, 726 whether purchaser bound by notice of doubtful equity, 727 ; of title long neglected, 728 ; and see Chose in action, and Equit- able interest, sup. VoLUHTAEY SETTLEMENT of realty uot good as against purchaser, 92, 93. See Voluntary Settlement QUALIFICATION. of c. q. t. to be juror, 592 QUASI-TRUSTEE. person becoming, by reaping benefit of breach of trust, 768, 771, 846. See 244 QUEEN. See Crown. QUEEN'S BENCH. civil corporations visited by, 495 " QUI PRIOR TEMPORE, potior jure," 606; and see note (6) QUORUM, 299. See Co-trustees RAILWAY SHARES. bequeathed in succession, converted into £3 per Cents., 812 RATES. trustees liable to, unless where trustees exclusively for public purposes, 271, 272 trust, in aid of, 496 ; in aid of church rates, 107 RATE-PATERS, 109. See Parishioners REAL Estate in trustees for creditors, &c., what parties necessary for suit, 843, see 855 Securities. See Investment INDEX. 1003 REALTY. effect of hlendmg into onefimd with personalty under a will, 183, 196 REBUTTER. of resulting trust n-pon advancemeia,'21i ; presumption of law, 181, see 182; purchase in name of stranger, 206 RECEIPTS. Agent or attoeubt, of, 372 Beeaoh 01' TEUST ; see Trustee, inf. Chaeoe of debts implies power of giving receipts, 433, 440 who can give receipts in case of, 440 ; true principle, 448 1. Devise to trustees ; trustees and executors can sell together, 440 whether executors have legal power and can pass the estate inde- pendently of trustees, qu., 441 ; and see 443 and notes 2. Beneficial devise, with charge of debts, 443 devisee where executor also can make a title, 444 and semble devisee, without concurrence of executor, can make a title, ii. 3. Where no devise of estate, 444 heir cannot give good receipt, semble, and why, ib. whether executor takes legal power of sale, 445 executor takes equitable power of sale, semble, 445, 446, note (c) and on his exercising it conveyance must be made by person having legal estate or under Trustee Acts, 446 4. Simple devise which lapses, 447 whether executor can take power of sale, qii., 447 5. Tf here estate subjected to various limitations, ib. semble executors take an equitable power of sale, 448 Co-ADMIKISTEATOES on Same footing as co-executors, 316 Co-EXEOUTOK liable for joining ia pro formd, 310, et seq. unless his joining nugatoi-y, 311, or ex necessitate, 314 ; and see EXEOUTOE Co-TEUSTEES must all join in giving, 298, 330 even co-trustee who has conveyed estate to the others, 449 secus as to co-trustee who has disclaimed, ib. co-executor, 310 co-trustee joining in but not actually receiving, not Hable, 304 ; secus where money improperly raised, 306 but joint receipt conclusive at law of actual receipt, 305; and see 313 and involves onus probandi that co-trustee did not receive, 305 ; see Co-TBUSTEE, Indemnity, Investment DisoHAEGB OF, 428, 430 ; see Power of Giving, inf. ExECniOE, where his receipt will discharge a purchaser, 453, et seq.; see EXEO0TOE (Powers) ExEOUTOET Tbust silent as to powers whether it authorises power to give, 164, note (d) Husband of feme covebt, of, 627 Infant, of, 372 * Liability for joining; see Co-executors, Co-trustees, sup. Official trustees, of charitable funds ot, 382 Partner of, 373 Power of giving; see 451, Charge of debts. Executor, su/p.. Purchaser, Time, in/. 1. Express, 430 ; see 331 2. Implied, 431, et seq. (1) By direction in power of immediate sale, 431 ; see 330 e.g. when future distribution of proceeds directed, 431 or cs. q. t. are infants, 432 qu. as to cs. q. t. abroad, 432 ; see 453 (2) By special trust annexed to purchase money, e. g. trust for investment, 433; and see 523 to pay debts, 434 ; debts and legacies, 435 secus where for particular debts, 435 or legacies only, ib.; as to legacies not yet payable, see 430 ihicepiJoms, purchaser is not indemnified (1) where collusion; (2) after 1004 INDEX. RECEIPTS— com^MiMed. PowBK OF Givi'sa— continued. institution of suit ; or (3) where notice of intended misappli- cation, 436, and aee 331, 458 ; (4) where sale not justified, 428 PuEOHASEB discharged by receipts of executors ; see Executors, swp. when by receipts of trustees, 430; see Power of Giving, sup, and 428 practical directions where several pwrchasers and no power to give receipts, 451 principle of requiring him to see to application, 430 ; new prin- ciple suggested, 452 Time, purchaser from administrator or executor after lapsed, 458 from trustee after lapse of, 436 power of signing receipt a question of intention at date of deed or of testator's death, and not altered by subsequent events, 436, 437 TntrsTBES ; see Charge of Debts, Power of Giving, sv^. appointed by Court, their power to give, 450 assignee of, whether he can give receipts, 449 breach of trust after, whether their receipts are good, 450 who intend, id. 331, 436 receipts, they retain the vouchers for, 428 sale, should see that it is justified, 428, 430 ; see Sale where no money passes to trustee, 451 whether they must actually receive purchase money, 451 ; see 330, 422 Vaetinq seoueitibs, power of, whether it implies power to give receipts, 623 RECEIVE rents, whether trust to, identical with trust for possession, 588 trust money, how trustees should, 296, 330 HECEIVEE. ArPOINTED ET COTJET y at instance of all cs. q. t., but usual recognizances necessary, 869 at instance of individual c. q. t, 870 where trust estate in danger from circumstances, or conduct of trustees, or unprotected, 870 ; see 871, note {d) where executor drunken, &c., and in great poverty, 870 executrix /emc covert, and husband abroad, ib. tenant for life of renewable leaseholds refuses to renew, 402, 722 trustee of bankrupt or insolvent guilty of misconduct, waste, &c., or incapable of acting, 870 where all trustees disagree or are abroad, ib. not appointed on slight grounds, 870, 871 e. g. where one co-trustee abroad has disclaimed, or is inactive, 870 not generally discharged at mere instance of party procuring appointment, 871 exception where new trustees, ib. DiEBOTlON TO BMPLOT AI AS, with proper salary, constitutes a trust, 101 secns as to mere recommendation, 102 Infant cannot be appointed, 36 Inteeest, he will be charged with, for improper retainer, 359 Salary, case of receiver appointed without, 590 Time oe teouble, he cannot charge for, 546 Teustee cannot be appointed at a salary unless mere trustee to preserve, &c., 314 RECITAL. Deolaeation of trust, it hiay prove, 63 False, effect of, 875 Notice by recital of surrender of former lease, 224 Teustbb executing trust deed should see that recitals are correct, 238 RECOMMEND. may raise implied trust, 168, but see 102, 172 INDEX. 1005 RECONVEYANCE. See Moetqaqe RECOUP. right of trustee to, after making over-payment, 373 RECOVERY. Equitable emtail, its effect on, 601, et seq. how it must have been suffered, 604 Infant tenant in tail conveyed by, under Trustee Enabling Acta, 835, note (/) Ikeant, op, formerly only reversible during nonage, 26 LuNATio OR Idiot, op, formerly valid unless reversed, 27 Trustees to preserve when they could have prevented, 404 Vacation, could not be suffered in, 819 RECTIFYING. settlement ; see Settlement » REDEMPTION OF LAND TAX. of lunatic's estate, may be effected from proceeds of timber, 827 REDUCTION. into possession oifeme covert's chose in action, 26, 370, 627, 628, 631 not where reversionary, 870, et seq., 628 into possession of trust estate, Ch. xin. s. 1, p. 326 ; and see Investment (Duties) REFERENCE. words of, creation of trusts by, 167 creation of powers by, 433, note (b) REFUSAL. of trustees to act, 710 ; and see 543, 696 to convey or transfer, at request of c. q. t., 695, 600 how remedied under Lord St. Leonards' Trustee Act, 837, see note (c) ; 838, see note (d) how under Trustee Acts ; see Trustee Acts REGISTRY. Acts, as to register, counties, 672 ; ships, 203 Decrees, Judgments, &c., of, 667, 668, note (5) ; 669 REIMBURSEMENT. of trustees' expenses, 521 ; and see Ch. xx. b. 2, p. 557; Expenses, and 873 RELATIONS. Bequest to poor relations, how construed, 698, note (1) Power in pator of, how to be executed hy donee, 705 ; see 542 on failure of trustees by Oowt, 706 ; see Powers (Imperative) Trust por, how construed, 170 Trustees whether they should grant leases to, 505 undesirable to have relations as trustees, 40 ; but see 789 RELATORS. necessary in information on account of costs, 779 RELEASE. Breach op trust from, by c, q. t, requisites of, 777, 778 "bj feme covert or infant, 777 C. Q. T., by, in ignorance of hia rights, 224 Oo-trustee, of one, discharges another, 773 ; secus as to bond not to sue, ib. ; comp. 854 Consideration, what sufficient for, 737 Creditor of, by accepting composition, 486 Debts, whether trustee may release, 520 , Equity op redemption of no value, whether trustee may release, 521 Mortgage seouritt, release of part, whether trustees may make, 521 Principal, op, discharges accessory, 777 Seal under, its effect, and whether trustee may require, 373 Trust from, how trustee can obtaiu, 289. See Relinquishment Trustee paying under direction of Court not entitled to, 375 whether trustees on payment to trustees can require, 374 expense of release to trustees and by whom prepared,375 1006 INDEX. BELIEF. See Teustee Relibp Acts RELIGION Established, when Court executes trust in favour of, 497 RELINQUISHMENT of trust by trustee, how effected, Ch. xxi. p. 665 (a) Consent, by, of all cs. q. t. if mi juris and im esse, 665, 566 (J) Court, by application to, 682, and see 584 by representative of deceased trustee, 584 where no new trustee can be found, 682 application, how made and costs of, 583 when new trustee appointed on petition under Bankruptcy Act, 714 ; Lord St. Leonards' Trustee Act, 713, 834 ; Trustee Acts, 714 ; see Trustee Acts ; and s. 36 of Trustee Act (o) Power by virtue of a, 566 ; see New Trustees REMAINDERMAN. Election, how far be is capable of, 818 ; see Election Equit^t op redemption of, when time runs against, 733 Limitations, stat. oe, whether s. 25 abridges rights of c. q. <.in remainder, 722, see note (a) ; 745; as to receiver of renewable leaseholds, 402, 722 Remedies of bill to have number of trustees filled up, 710, and comp. 368, 723, 733, 868 Renewable leaseholds of, fines apportioned between him and tenant for life, 305 laches not imputable to him during life of tenant for life, 402 Trustee must not favour'tenaut for life at expense of, 339, 344, 348, 415, 418, 421 REMAINDERS, CONTINGENT. See Contingent Remainders. REMEDY. t. q. t., of, is in Chancery, 19 not in common law court for breach of implied contract, 20 nor in spiritual court, ib. for breach of trmt, see Breach of Trust (remedy) Trustee of (where breach of trust), against (1) c. q. t., 363, 392, 768, 771, 846 ; (2) co-trustee, 317, 767, 768, 845 ; and see 309 where construction of trust doubtful, 367, 368, and 37.5, et seq.; see Trustee Relief Act REMOVAL OF TRUSTEES, 710, 711 RENEWABLE LEASEHOLDS. Ch. XIV: p. 383 ; see Constructive Trusts Accumulations for renewal, who entitled to when renewal cannot be obtained, 392 Copyholds vested in trustee, admission fines how raised, 402, 403 Fines for renewal, whether out of annual rents or by mortgage, (a) where fmnd pointed out by settlor, 386, et seq. as to leaseholds for years : how to be raised " out of rents and profits," 386; "out of rents and profits or by mortgage," 387, 388 as to leaseholds for lives : whether to be raised out of animal rents and profits, 388, et seq., and see 391 ; payable out of insurance may be adopted, 391 (6) witere no direction by settlor, 393, etseq. fine may be raised by tenant for life and remainderman, or one of them, 393 ; if they refuse, how far mortgage by trustee is feasible, semble application to the Court necessary, ib. ; see note (6) apportionment of fines (if necessary), bow made, 395, et seq. tenant for life and remainderman pay in proportion to their actual enjoyment, 397; see 387, 391, 400 Court will not act on speculative calculations, 396 ; but see case in same page proportion, how ascertained as to leaseholds for years, 397 compound interest allowed tenant for life on his share, and for what period, ii. tenant for life having had no enjoyment does not pay, 398 INDEX. 1007 RENEWABLE LEASEHOLDS— cortimed. Fines toe Renewal — conimued. proportion^confinued, how ascertained as to leaseholds for lives, 398, 399, and see 400 and 394 contribution, how secured, 398, 400, 402 if made by tenant for life he has a lien, 400, and see 398 if made out of trust fund or by i-emaindermen, tenant for life giyes security, 402 ; see 398, 400 when by appointment of receiver, 402, 722 ; or sequestration of rents, 402 but suit for compensation cannot be instituted till death of tenant for life, 402 ; until then remainderman not guilty of laches, ib. Liability of trustees and tenant for life for neglect to renew, 392; see 769 et seq. Oehqation to renew, 383, et seq. obligation not necessarily imposed where successive estates limited but no trustee, 383 implied in articles for settlement, 385, 386 whether implied by interposition of trustee, 384, and see note (A) whether implied in marriage settlement, 385 discretionary renewals, construction of, "it shall he lawful for trustees to renew," ftc, 386 Person renkwikq when a constnwtive trustee, 218 Tenant eoe lis'e entitled to fines paid by under-lessees, 392 when regarded as a trustee, 402 RENEWAL OF LEASES. See Renewable Leaseholds Lunatic, leases of, may be made out of his personal estate, 828 Right of, trustee, &c., cannot sell, 220 RENT. See Mesne Rents, Renewable Leaseholds Arrears of, what recoverable under Statute of Limitations, 744, 748 Charity estate of, increasing surplus how applied, 198 Grantee op, dying without heirs, rent sinks into land, 321 Rack, 505 " Raised, not to be," construction of as to charities, 506 RENUNCIATION. See Acceptance, Disclaimee, Executor of the trust not permitted after acceptance, 289 REPAIRS. See Expenses Allowances for, when made by trustees, 513; upon setting aside pur- chases by trustees for sale, 466 Infant's lands, upon, may be made out of his personalty, 830 so as to lunatic, 827 Tenant foe life, by, 514 Trust for, a special trust, 247; and see Legal Estate repairing chapel, 496, see 501 REPUTED OWNERSHIP. of chattels ; see Order and Disposition REQUEST. Order of Court not considered as " request " of party, 839, note (a) Power of sale at request, 540 Purchase to be made at, 807 ; sale at, 419 " REQUESTING." may raise a trust, 167 REQUIRED. to lend, 339 ; to purchase, 349, and see 542 RE-SALE. of property purchased by trustees for sale, upon what terms ordered, 467; see 465, Sale RESIDUARY. Bequest passes proceeds of lands, subject to trust for conversion, 807 will not pass resulting trust of proceeds of sale of lands, 195 1008 INDEX. RESIDUARY— coaiMweA Bequest — continued. unless guch proceeds directed to be taken as personal estate, 196, 197 where it passes void or lapsed legacy out of land directed to be sold, 196 passes, accumulation void under Thelluason Act, 118 ' Devise, whether it passes resulting trusts in real estate, 196 ; accumula- tion void under Thellusson Act, 118 " Executor," 196 Legatee, distinction between claim of and of next of hin to un4isposed proceeds of sale of land, 197 ; and see 184 takes under present law in case of bequest with insufficient declaration of trust, 68 " RESIDUE," 195 ; within " legacy " in s. 40 of late Limitation Act, 744, note (a) RESTRAINING ORDER. under 5 Vict. c. 5, s. 4 ; see Distringas, 860, 863 RESTRAINT. against alienation, 132 against anticipation ; see Feme Coteet RESULTING TRUST, Ch. viii. p. 176 On Disposition of Leg^al but not of Equitable Interest Abises (a) by expression of intention e. g. on conveyance, grant, or bequest " wpon tiitst " where trust is not declared vague or fails, 181 ; see 118 parol evidence inadmissible to rebut, 182 (6) by pre^wmption ; see Implication, infra whether on voluntary grant of whole estate to stranger, 177 ; see note {d) conveyance to wife or son ; an advancement, ib. case of mistaJce or fraud, transfer ofstoch, or delivery of money, 178 conveyance, devise, or bequest where trust declared of part of estate, 179; see Charge, imfra devisee or legatee, effect of relationship, 180; not necessarily excluded from beneficial gift by use of " trust," " trustee," ib. parol evidence admissible to rebut, 181 ; see 178 Charge distinguished from exception out of devise, 191 ; from partial trust, 179 of debts on devise to A., no resulting trust, 179 of legacy for charity, 192, etseq.; contingent or which fails, 190 of sum to be appointed, and no appointment, 190 " subject thereto," effect of, 191 ; when implied, ib. Charities, in gifts to, 198; legacy for, 192 ; see Charities Failure of o. q. t. by, 197 Heir, 176, 184 ; see Heir, Land, Money, infra Implication, whenyarria^ trust raised by, surplus does not result, 173 Land devised on trust pok sale, undisposed of proceeds result to heir, 182 notwithstanding direction that proceeds shall be considered per- sonalty, or that nothing shall result to heir, 182, 183, note (c); or blending of realty and personalty, 183, but see 196 whether as realty or personalty, 184 ; and see 118, 177 aecus if resulting interest disposed of, what disposition sufficient, 194, et seq. ; see 197 effect of blending realty and personalty : " personal estate," 196 ; "residue," " residuary executor," 196 ; and see 184 Monet to be laid out on land, undisposed of interest results to exe- cutor for next of kin, 1 87 Parol evidence, when it may rebut resulting trust, 181, 182 ; see 178 Personal estate of for next of kin, effects of residuary bequest, 197 Purchase in cases of: (a) Purchase in name op stranger generally constitutes resulting trust, 199 so on a, jomit purchase in name of stranger, 199 201, INDEX. 1009 RESULTING imjST—contmued Purchase in Oases of^contmued. (a) Purchase in Name oi?, &c. — continued. so tencmcy in common is implied in case of joint loan, 201 ; or where two, possessed of. mortgage term, pwchase equity of re- demption, 202 in joint purchase where purchasers contribute unequally, 202 ; or in joint undertaking in trade, ib. but where contribution is equal, joint tenancy is implied, 201 ; and see Joint Tenanot how far rule applies in purchase of copyholds for lives, 202 ; and as to personalty, 200 rule does not apply to advance by A. not in the character of pur- chaser, 200 nor to purchase in contravention of Papistry Acts, of ship, or for giving votes, 203 Laches, resulting trust may be rebutted by, 207 Parol, pwchase is provable by, though otherwise expressed in purchase deed, 204; or against defendant's denial, 205, note (/) or after death of nominal purchaser, semble, 206 but evidence must be clear, 205 ; and see Frauds, Stat, of secus where purchase by agent and no money paid by employer, 204 resulting trust may be rebutted by, 206 subsequent declcuration, effect of, 207 (6) Purchase by father in name of child, &o., implies advancement, not resulting trust, 207, et seq, ; see Advancement RETAINER. of trust funds by assignees, 359 ; executors, 358, 875, 876 ; receiver, 359 ; trustees, 358 ; of charities, 502 RETIREMENT. of trustee from the office; see New Trustees, Relinquishment REVERSION. Laches, effect of, in suit to set aside purchase of, 742 Mortgage of, 350 Renewable Leaseholds of, how far trustee purchasing is a constructive trustee, 225 REVOCABLE. trusts, 25, 101, 481 ; see Debts, nature of, 483 ROBBERY. of trust property, 332 ROMILLY'S ACT, 779, etseq. RULE OF COURT. when with 1 & 2 Vict. u. 110, h. 18, 667, note (a) SALE. See Abroad, Purchaser, Receipts, Specific PEBFORmANCB, Volun- tary Settlement, Trustee Acts (petition) Charity Lands, of, 503, 504, 615, 782, note (/) Contract for, raises implied trust, 174 Decree for, person to convey under a constructive trustee, 839, note (e) ; comp. Trustee Act, ss. 29, 30; Extension Act, 5, 2 Devise upon trust to sell passes the fee, 250 ; see 247 Direction for in will raises a trust, 173 Power of ; see Executors (power). Mortgage implied, where by charge, 251 ; see 257 personal estate on deficiency of, 428 pwtition is not authorised by, qu. whether by power to sell and exchange, 417 usual in settlement, effect of, 417, see 421 ; whether exercisable unless trustees have another purchaser in view, 418 Trust for, whether a ministerial trust, 21 ; survivorship of, 419 ; see Sale, Trustees for to mortgage, does not authorise a sale, 417 3 T 1010 INDEX., SALE, TRUSTEES FOR. See Moktgaqeb ; Sale, Tbust fob ; Timber Generally. Attested copies, when they must give, 425 ConvEtanoe bt, concurrence of cs. q. t. where necessary, 427 ; covenants, what, tmsteea must enter into, 425, note (a) ; for production, 425 ; of indemnity on sale of leaseholds, 426 ; grant, effect of, 424, note (g) ; see 696, note (a) ; power of attorney, form of, on assignment of clwses in action, 427 CouET, trustees may sell without applying to ; secus where suit pending, 414, 429 Discretion oe trustees sale at, purchaser cannot question its exercise, 417 Duties or : should sell to greatest advamtagc of all cs. q. t. impartially, 414, and see 418 should not delegate the trust, 422 ; see 415 ; and see Court, s«p.. Preliminaries, Quantity, Time, mf. Mode oe conducting sale, agents, by, 422 ; auction or private contract, hy, ib. ; buying in, conditions of sale, as to, 423 ; lots, trustees may sell in, 423 ; possession to purchaser, when to be given, 424, see 871 ; receipt of purchase money, 422 ; see Receipts ; and Preliminaries, Quantity, inf. Personal estate, trust for sale on its insufficiency for debts, 428 Powers oe : leases they may not grant, 416, and see 462 ; mortgage, whether they may make, 416, 417; and see Receipts ; and Quantity, infra Preliminaries : advertisements, if by auction, 422 ; title should be investigated before sale, 421 ; value of property should be ascer- tained, ib. Quantity, whether trustees may sell larger than trust requires, 429 Request; sale at, &o., how it must be testified, 419 Specific pebeormanoe, costs of, 421, 872; not enforced if involving breach of trust, 415 ; whether when involving hardship, 424 Time for sale: reasonable time allowed, 415; trust to sell with "all convenient speed," 415, see 527 ; " after death of A.," 419; within limited period, 416 where legacies not yet raisable are charged, 430 ; where portions are raisable, 420, 430 Their disability to purchase property, Ch. xvl s. 3, p. 460; and see Lease (a) Rule applies to purchase from trustee, or co-trustee, 461 ; even by means of agent, or as agent for another, 462 ; at auction or private contract, 461 ; however fair the transaction, ib. ; in name of trustee or another, i5. ; and whatever the trmt property, 460 applies to assignees, administrators, executors, receivers, &c., 465 does not apply to execution creditor on sale by sheriff, nor to mortgagee, 465 ; nor to trustee who has disclaimed, 462 whether to trustee without active duties, 460 (b) But trustee mat purchase from o. q. t., if relation of trustee and c. q. t. dissolved, and no concealment, 463 cases where purchase sustained from conduct of c. q. t., 464; whether c. q..t.'s solicitor can authorise purchase, iS. cs. q. t., creditors, whether all must sanction purchase, ii>. cs. q.t., sui juris. Court cannot authorise trustee to bid ; secus where cs. q. t. are infants, 465 (c) Confirmation of purchase, 471, et seq.; requisites of, 472 ; considera- tion, it does not require, ib. (d) Laches, when a bar to relief, 470, see 742 ; in case of class (as creditors), feme covert, infa/nt, 471 no laches in case of ignorance, 471 ; whether in case of distress, i6. (e) Terms on which purchase set aside, 466 1. c. q. t. may pray recormeyance on payment of purchase money and interest at il. per cent., 466 trustee accounts for rents (without interest), compen- sates for deteriorations, but allowed for repairs and (unless where fraud) lasting improvements, 466 trustee paying money into Court not entitled to rise in stock, 467 re-conveyance when ordered, 467; without prejudice to bond fide lessees, &o., ib. INDEX. 1011 SALE, TRUSTEES FOR— continued. Their disability to purchase property — contimted. (c) Teems on which purchase set aside — continued. 2. t. g. t. (even a single creditor) wMy pray re-sale, 467, 469 trustee, where no advance, held to his purchase, 468 how allowed for repairs and improvements, ib. whether re-sale in lots can be required, ih, c. q. t., remedy of, in case of shares, 469 against subsequent purchasers, ib. costs follow decree, ib. ; not where plaintiff guilty of delay, 470 (/) Time within which relief must be sought, 470 ; see Laches, sttp. SALE AND EXCHANGE, Power op. whether authorised by " usual powers " in executory trusts, 164 ; under covenant to settle realty similarly to stock where power of varying securities, 167 whether it authorises partition, 417 whether it implies power to give receipts, 433, note (i) SCANDAL. statement of trustee's misconduct is not, 711 SCHOOL. chapel for, 496 "free grammar and free school," 499, et seq. trust for poor applied for school-house, &c., 501 SCIRE FACIAS, 663 SCOTLAND. Equities in respect of lands in, administered here, 48 ; but see 63 and Jurisdiction Executors here not bound to know the law of, 367 Thellusson Act, Scotland is excepted from, 120 SECRET TRUSTS. discovery of, where enforced, 70, 72, 73 ; see Devisee ; Heir. as to, under deed enrolled under 9 Geo. 2, o. 36, 132 SECURITIES. For MONET, gift of in will may pass mortgage in fee, 264 Negotiable, where they may be followed, 275, 759 SECURITY. See Investment Agent, trustee not called upon to require from, 295 Tenant pob life op renewable leaseholds, what he gives where fine paid by remainderman, 398, 400, 402 Trustee required to give for due execution of trust, 723 Vary, power to, 523 ; a " usual power," 164 SEISIN. Inpants of, ex parte maternd of leaseholds may be changed to seisin ex parte patemd, 831 ex parte materna, 680 equitable, 617 ; what required to give curtesy, 617, 622, 623 possessio fratris of a trust, 618, and see note (a) SELECTION. power of, 22, 542, 701, 705, 706, note (a) SEPARATE USE. See Feme Covert SEQUESTRATION. . of rents ordered where tenant for life of renewable leasehold refuses to renew, 402, 722 SET-OFF. See 334 where bankrupt trustee (indebted to trust) has beneficial interest, 772 ; conf. Ill SETTLED. . . , ^^„ account opening against solicitor trustee, 550 SETTLEMENT. Equity to. See Feme Covert Executory Trust, what directed under. See Executory Trusts 3 T 2 1012 INDEX. SETTLEMENT— co««im«cd. Postnuptial, executory trusts in, construed as in wills, 164 Off KEALTY, usual frame of, 404 effect of usual power of sale in, 417 re-settlement of estate, 409 object of limitation to trustees to preserve in, 404, 405 Keotii'ioation or, how far by means of articles, 148 not when settlement executed priw to marriage, 148 unless stated to be made in pursuance of articles, or where mistake, 148 semble not against a purchaser, 148, note (c) Separate use of feme covert for ; see Feme Covert Volttntakt, of lands or chattels real (but not of personalty), defeated by subsequent sale by settlor, 92 . of any property void as against creditors, if settlor indebted at the time, 93 ; see Volontaet Settlement SETTLOR. Legal Estate becoming re-vested in, will not defeat trust, 99 whether he can claim benefit on failure of c. q. t., 323 who may be, Ch. in. s. 1 , p. 24. See also Alien, Bankrupt, Crown, Corporation, Feme Covert, Husband, Infant, Insolvent, Lunatic ; and as to Felon, Outlaw, Traitor, see 28 SEVERANCE. ^^ „»/ of trusteeship, 579 ; of estate from powers, 535 -ionty given by, 613, 614. See Notice STRANGER. Advancement for, whether presumed when purchaser has placed himself im loco parentis, 216 Purchase in name of, where it creates resulting trust, see Purchase parties to suits respecting trust by or against, 841, et seq.; and see Parties SUBPOENA. origin of, 1 SUIT. See Costs, Decree, Parties Barred by lapse of time, when ; see Limitation Collusive, 429 Decree in, takes administration from trustee, 414, 429, 436, 523 ; and see 624, 544 Trustee, for protection of, 367 appeals at his own risk, 368 should see that proper parties are before Court, ib. sustain rather than originate, ib. for removal of, 710, 711 ; and see 582 et seq. SUPPLYING WORDS, in articles, 153, and see 191, 250 SURRENDER. See Coptholds, Customary Freeholds SURVEYOR, 561. SURVIVORSHIP. See Feme Covert, Guardian Administratorship or executorship of, 300 not of bare power, 299, 536 ; or committeeship of lunatic, 299 Power of sale of, in mortgage, 419 Powers oe trustees, 536. See Powers Trust of, 299 ; even where power to appoint new trustees, 301 Trust for sale of, 300, 419 TACKING. See Mortgage TAXES. See Rates TECHNICAL. terms, how far necessary for creation of express trusts, 140 their force when employed, 141 ; and see Executory Trusts TENANCY IN COMMON. See Joint Tenancy Elect, how far tenant in common can, 818 INDEX. 1015 TENANCY IN COM.UON- continued. Implied in case of joint loan, 201 ; or where two possessed of mortgage term purchase equity of redemption, 202; in jomt purchase, where pwrchasers contribute unequally, 202 ; or in joint undertaking in trade, 202 MoRTGAOEE, tenant in common of equity of redemption, 733 Phesumption of ouster between equitable tenants in common, 735, note (1) ; but see 747 TENANT AT WILL. c. q. t. is to trustee, 586, 590 or by sufferance renewal of lease by his executor, 219 TENANT FOR LIFE. BBEiOH OF TRUST reaping fruits of, how he contributes, 768, et seq. participating in, his interest may be stopped for compensation, 771 Chattels or heir-looms as to, his rights, 593, 594 Conversion income accruing before, his proportion in, 813. See Con- version (income) having received whole income, when conversion proper, liable to refund, 853 Costs, he bears of suit instituted for relinquishment of trust by trustees on account of incumbrances by him, 584 Dividends, how put in possession of, 594 Feme covert, as regards equity to settlement of wife, who is, 370 Forfeiture by, 678 Improvements and repairs, 514 Powers, whether' having sold or mortgaged his estate, he can exercise, appoint new trustees, 580 Real estate, of his rights, 586, et seq. Renewable leaseholds of, fines entitled to on under-leases, 392 fines, apportionment of between prior remainderman, and con- tribution, how secured, 395, 398 ; and see Renewable Lease- holds liability in case of neglect to renew, 392 ; see 383 refusing to renew, 402, 722 regarded as trustee for renewal, when, 402 renewing is trustee for those in remainder, 218, 384 Trust por sale, he may buy under though his consent necessaiy to sale, 462 Title deeds, whether entitled to, 591, 592, note (c) Use of his power under 1 Rich. 3, c. 1, 601, note (6) ; see 227, in possession Waste by, 225, 614. See Waste TENANT IN TAIL. See Uses Assj:qnment of his equitable interest, 601, et seq. Election by, 81 9, et seq. ; see Election Equitable, he cannot require trustee to convey legal fee, 595 Forfeit his estates, he cannot, by disseising the remainderman of an equit- able interest, 560 TENANT TO PRECIPE, 412; see 404, 405 ; Equitable, 604 TENANT YEARLY, renewal of lease by, 219 TENANT RIGHT, 225 TENDER. of conveyance, under Lord St. Leonards' Trustee Act, 837, note (c) TERM. attendant. See Attendant Tbbm TERROR. confirmation must not be obtained by, 473, 778 TESTAMENTARY DISPOSITION. See Will THELLUSSON ACT, 112, et seq. See Ireland, Scotland Accumulation can be for one only of the periods allowed by statute, 113 commencing after testator's death, must end at 21 years from such death, 113 trust exceeding limits is good pro tanto, 113, 114 Act applies to simple and compound accumulation, and where enjoyment suspended, though right vested, 113 1016 INDEX. THELLUSSOK ACT— continued. AoonMDLATlON, &c. — continued. whether Act applies where accumulation only implied by instru- ment of trust, 115, 116 Exceptions from the Act, and their construction, 119 ; see 120 Excess, to whom it belongs, 116, et aeq. resulting for heir, when it devolves as personalty, 118 Subsequent limitations not accelerated, ib. Wills Act, under, void accumulations of realty go to residuary devisee, of personalty to residuary legatee, 118; and where residue is settled form capital, ih. void accumulations from residue itself result, if realty to heir, if per- sonalty to next of kin, ib. TIMBER. AcoonNT OF, in equity on legal title without injunction, qu. 753, note On infant's estate, see Infant On lunatic's estate, see Lunatic Trustees may not buy wood estate in favour of tenant for life, sans waste, their power to cut, 615 ; with power of sale, may not sell separately from estate, 421 TIME. Bae from. See Laches, Limitation of Suits Teust foe sale, vrithin what it should be executed, 415; and see 419, 420, 429, 436, 458 Teustee not entitled to any allowance for his time, 545 ; and see Teouble TITHES. account of, in equity on legal title, 753, note TITLE. power of vendor to sign receipt for purchase money, a matter of, 430 trustee for sale bound to make a good title, 421 TITLE DEEDS. Custody of, who entitled to, where legal estate in trustee, 591, 692 where all estates legal, 692, note \c) Holder of, how far a constructive trustee for remainderman or part owner, 227, 228 Pueohaseb, if not delivered to assignees, must give attested copies, and covenant for production, 425 TORTIOUS. Conversion of trust property, 275, 754, 825 ; and see Conversion, Follow Sale of land by trustee, 763 of stock by trustee, 356 TRADE. Allowance for management is given to constructive trustee, 548 ; secus as to express trustee, 549 Bank, money lodged in to executors' account considered to be traded with, 361 FoLLOwiNQ TEUST, property employed in, 760 Tenancy in common implied on joint advance for, 202 Teustee employing trust money, charged at option of c. q. t. with profits, 361, 362, see 319 ; or with interest at &l. per cent., 362 whether with compound interest, 362, 363 TRADER. See Bankeupt, Debts TRANSMUTATION OF POSSESSION. See Voluntaet Assueanob where there is, the trust though voluntary will be enforced, 81, 99 and where there is not, if trust be perfectly created, 81 TRAVELLING. Expenses, trustee allowed when proper, 657 TREASON, 28. See Foefeituee TROUBLE. See Trade Allowance, none for to trustees generally, 646 nor to committees of lunatics, executors, mortgagees, receivers, &o., 646 ; and see Solicitor INDEX. 1017 TROUBLE— co»im«d. Commission, whether allowed to executor in East Indies, 547 ; and see note (b) when to trustees of West India estates, 546 CoNTKAOT, whether trustee may, with c. q. i. for allowance for, 551, et seq. must be fulfilled to the letter, 653 trustee may, with Ooii/rt, before accepting trust, 653, et seq. whether mortgagee may, for allowance, 656 Settlor may direct the trustee an allowance, 550 it will not cease on institution of a suit, 551 amount where not known, settled by reference, 551 TRUST. See Abeoad, Advowson, Alien, Breach of Trust, C. q. t., Feme Covert, Infant, Overseers, Trustee, Will AocuMULATioN for, 110, et seq.; see Accumulation, Thellusson Act Alienation, restriction of, not allowed by way of trust, 132 ; but see 123 AvERRABLE at common law, 66 Charitable or public trusts, 23 ; see Charities Classified, Ch. n., p. 21 Consideration for, 81, et seq.; see Consideration, Covenant, Volun- tary Assurance Construction of, 141, et seq.; see Construction Constructive, Ch. ix., p. 217 ; distinguished, 140, note (1) ; see Con- structive Trusts '. Continqent remainders, for preserving, Ch. XV., p. 404. See Contin- gent Remainders Created, how ; see Creation of Trusts Creditors for, Ch. xvii., p. 474 ; see Debts cannot be defeated by means of trust, 132, et seq. Declared, how trusts may be, 66, et seq. ; see 62, 65 Defined, 15 Delegation of, not permitted, 290, et seq.; see Delegation Discretionary, 21 ; see Discretionary Duration of, 23, 103, 111 Enforced, where consideration valuable or if perfectly created, 81 Estate tail in, 46, 604 • Executed and Executory distinguished, 144 ; see Executory Trusts Express, Ch. vn., p. 140 ; within Stat, of Limitation, 745, 743 ; see Ex- press Trusts Frauds, Stat, of, how it affects trusts, Ch. v. s. 2, p. 60. See Frauds, Stat, of Imperfect, p. 81, et seq. Implied, Ch. vn. s. 2, p. 167, et seq.; distinguished, 140, note (1) Instrumental, explained, 21 Intention will be followed where lawful, 44, 100, 103 Lawful, Ch. vi., s. 1, p. 103 ; see 22 and Unlawful Trusts Law, by operation of, 140, note (1) ; see Operation of Law Limitation of, compared with legal limitation, 44, 103, et seq. Ministerial, explained, 21 Money followed into land, 206, 762 ; see 753, et seq. Mortmain in, 132. See Mortmain Nature and origin op, 1 ; of modern trust, 8 administered at first on the principles of uses, 9 ; afterwards treated as an estate, 11, 12 Objects of, Ch. vl, p. 103 Parol, as to chattels personal, 61 ; but see 66 Perfect, 81, et seq.; see Consideration, Voluntary Assurance Perpetuity cannot be created by, 23, 110, 132 ; but see Public Trusts Powers, distinguished from, 22, see 636, 701, et seq. Precatory, 167, et seq. ; see Implied Trusts Principles governing at present day, 13 Properties of, in analogy to legal estates, Ch. xxiiL, p. 600 assignment of a trust, 600, et seq.; assets, a trust as, 681, et seq.; curtesy and dower of a trust, 621, et seq.; descent of a trust, 680, et seq.; devise of a trust, 616 ; escheat, whether it affects a trust, 678; extents from the Crown against a trust, 673, et seq.; feme covert, her estate in a trust, 627, e« seg. ; fm'feitwe of a trnat, Qli; judgments, how they affect trusts, 646 ; seisin and disseisin of a'trust, 617 ; and see these Titles 1018 INDEX. TRUST-continued. ^Z**.^ S^^ /^^^^*^ V*^^***^*^*"*^ Propeett, what may be made the subject of a trim, Ch. x¥v., p. 45 ^e*''Z-^c2^2. Pdblio, explained, 23 Eeoommehdation, whether raised by, 102 ; see 168 Renewable leaseholds of, Ch. xiv., p. 383 ; see Rehewable Leaseholds Resulting, Ch. vin., p. 176 ; see Resultinq Trusts Sale, Ch. xTi., p. 414 ; see Sale, Trustees for Secret, 71, et seq., 132 ; see Heir, Detisee Separate use oi,feme covert for, 120 et seq., 632 et seq.j see Feme Covert Settlor, who may be, Ch. in, s. 1, p. 24; see Settlor Simple, 2, 21, 685, et seq.; see 597 Special, 2, 21, 697 Stat, de bonis, not within, 603 Survivorship of, 299 ; see Survivorship Unlawful, 22, 131, 699; see Umlaweul Trusts Uses, Stat, of, special trusts not within, 8, 247 VoLUNTAKy, 81, 101 ; see Debts, Voluntary Assurance Word " Trust " may raise a trust, 168 TRUSTEE. See Acceptance, Accident, Bebach'of Trust, Charities, Con- structive Trust, Contingent Remainder, Corporation, Costs, Co-TEUSTEES, DEBTS, DISCLAIMER, DoWER TRUSTEE, FaLSE, FORQERT, Fraud, Implied Trust, Indemnity, Insolvent, Insurance, Invest- ment, Judgments, Lien, Misconduct, Mistake, Neglect, Notice, Quasi- trustee, Receipt, Sale, Solicitor Actions, where to be brought in his name ; see Actions Accounts, he must be ready with, 599 ; and see 427, 559 Advantage, shall not derive from trust, 318 ; see Advantage, but see Failure of c. q. t. Allowances to, Ch. xx. 545 ; see Costs, Expenses, Trouble Bankruptcy of, 273, 287, 711, 714, 771, 854 ; see Bankbuptot Babe, see 318,, 460, 636 Bare equity of, 696, 848 Burdens of, 268, et seq., 271 Claim adversely to c. q. t., trustee must not, 325 ; see 878 Conveyance by, at request of c. q. t., 595 ; of assignee of c. q. t., 600 on sale, 424, et seq.; see Conveyance Custody of trust chattels by, 332 Delegation, may not make, of his office, 290 ; see Delegation Disability of; see Sale, Trustee Acts Discharge of, how obtained ;' see Indemnity, Release, Relinquishment Distribution of trust fund by, 366, et seq. Duties,, how compelled to observe, 718, 723 ; and see Duties Failure of, remedy of c. q. t. against, Ch. xxiv., p. 693 Injoined, may be against breach of trust, 723 Laches of, its effect as to right of c. q. t., 719, et seq.; see Laches Legal estate in its devolution, properties and quantity taten by trustee, Ch. XL, p. 246 ; see Legal Estate Liability of; see Co-trustees, Liability New, appointment of ; see New Tedstees and Trustee Acts Number of, what is proper, 40, 41, 710 ; see Number Outstanding trust estate he should get in, 326 Payment by, 372 ; see Payment, Receipts Possession of trust estate, how he may obtain in court of law, 324, 690 PowEES of, general, 512; special, 624; and see Powers Privileges and burdens of, 268, et seq. Purchase of trust estate by, 460, et seq.; see Sale, Trustees for Receiver, he cannot be of trust estate, 319 Release by or to, 373, et seq. Relinquishment of office, Ch. xxi,, p. 666 ; see Relinquishment Renewal op lease by, 383, 392 ; see 402 Suit by, 367, 582, 768, 846, 850 Tort of, see 755, 825 Who may be, Ch. iii. s. 2, p. 30 alien may be, of chattels personal, but not of freeholds or chattels real, 39 ; BomJc of England cannot be, 32 ; hankrv^ts and insol- vents not absolutely disqualified, 40, see 711 ; t. 5. t. or relative INDEX. 1019 TRUSTEE— coniinwd Who mat be — cowlmued. generally undesirable, 40, 579 ; corporation may be, except where in contravention of Statute of Mortmain, 31 ; Crown, may be, but qu. as to remedy of c. g. t., 30 ; feme covert or sole may be, but undesirable, and why, 34, 35, see 710 ; infaM ought not to be appointed, 35, 895, note {a) ; person domiciled abroad generally not a fit trustee, 40 ; and see 674, 576, 710 Words " trustee," " trustee of inheritance," construction of, in devise, 250 TRUSTEE ACTS, GeneraUy, Ch. xxviii. p. 832 Construction of 7 Anne, c. 19, infancy (as to lands), 832, 833 4 Geo. 2, c. 10, lunacy (as to lands), 833 36 Geo. 3. o. 90, infancy, lunacy, &c. (as to stock), 833, 834 amended by 1 & 2 Geo. 4, c. 114, 834 6 Geo. 4, 0. 74, consolidating and extending previous Acts, 834 Lord St. Leonards' Trustee Act, 11 Geo. 4 & 1 W. 4, c. 60, 834, et seq. sections relating to infants (as to land), 835 to lunatics (as to land and stock), 834, 835 to persons out of jurisdiction, &c. (as to laud), 835 ; (as to chattels real), 837 ; (as to stock, &c,), 838 mode of application to Court, 839, notes (c) and {d) cases of constructive trusts, specific performauce, trustee having interest, 839. See Trustee Act, sa. 2, 30 Trustee Act, 1850, and Extension Act, 840; m extenso, 880, et seq. Colonies, as to, sa. 54, 56 Contingent rights; see ss. 4, 8, 11, 12, 16, 18 Conyetanoe under, 889, note (a), see 896, note (e) ; as to copyhold.a, 893, note (6) ; see s. 30 of legal estate sufficient where all parties before the Court, 881, note (6) Costs under, generally, 901, note (a) ; infant trustee, &c., ii. in case of lunatic mortgagee or trustee, 883, note (c) ; of sale, 903; note (c) Decree for conveyance, exchange, partition, sale, specific performance, under, 893, 903; see sec. 30 DiEEiouLTT or expediency of appointing new trustees, &o., 895, notes («), (b), {c) Durham and Lancaster, lands m, s. 21 Evidence on petition, 895, note {d) ; of trustees' assent of trustees' fit- ness, ib.j and see 890, note (c). Orders, imf. Existing trustee, where none. Court may appoint new trustees, see 895, note (d) ; Extension Act, s. 9 Ineant trustee or mortgagee, ss. 7, 8; Extension Act, s. 3; see 894, note (c), 895, note (a), 901, note (a) Ireland ; see ss. 65, 56, p. 901 ; see note (c) Jurisdiction, trustee out of, ss. 9, 10, 11, 12, 22 ; mortgagee, s. 19 Lunatic personal representative, s. 6; trustee or mortgagee, see ss. 3, 4, 6, 6 Mortgagee, see ss. 4, 5, 7, 8, 19 Number of trustees appointed by Court, 895, note (d) Orders made under by Court, on allegation evidence thereof, s. 44 Petition, who may present, 896 ; in case of sales, see note (p) ; in lots, 903, note (c) ; service of, 897, note (6) ; and see 890, note (c), 891, note (c) Refusing trustee, ss. 23, 24; Extension Act, sa. 2, 4, 5; mortgagee, 19 Scotland, Trustee Act does not extend to, a. 54 ; see s. 56 Unborn trustee, s. 16 Unknown heir, &c., of trustee, 13, 14, 16, 22 ; of mortgagee, 19 Vesting oedeb, see ss. 26, 27, 28, 35 ; Extension Act, s. 2 ; as to copy- holds, 893, note (a), 904, note (a) ; chose in action, s. 27 in devisees of mortgagor subject to cluvrge, 884, note (a) ; to uses to bar dower, ib. as to estate tail, 885, note (a) in new and continuing trustees as joint tenants, 896, note (a) as to stock, 896, note (5), 905, note (J) 1020 INDEX. TRUSTEE RELIEF ACTS. See Lunatic (Majority) 10 & 11 Vict. c. 96, p. 375 et seq. ; General Orders under, 379, 381 ; Amend- ment Acts, 12 & 13 Vict. c. 74, p. 381; and as to money, &c., belonging to charity, see 18 & 19 Vict. o. 124, s. 22, p. 382 affidavit by trustees, 379, 376, note (6) ; Petition, inf. application by petition (not motion, nor in the first instance at Chambers,) 378, note (a) account, heading of, 376, note {d) ; and see note (c) costs of trustees, 376, note (6), 378, note (a), 380, note (a), see 377, note (c) out of what fund, 380, note (a) on petition by tenant for life for payment of dividends, ib. discharge, how far payment into Court is, 377, note (c) inquiry or issue, Court may direct, 377, note (6), 378, note (6) payment into Court, after, proceedings must be under the Act, 376, note (a) ; see also 377, notes {a) and (6) petition, trustees can, but should not, present, 378, note (o) by claimant m formd pauperis, ib. how far it should set out affidavit of trustee, 378, note (a) what order may be made upon, 378, note (6) service on trustee, 380, note (a) ; on claimant, 381, note (a) subject matter of payment or transfer, what may be, 376, et seq., 375, note (c) suit, when directed, 378, note (6) UNCERTAINTY. Implied trusts not raised where it exists, 168 of objects of trusts, 169; of subject matter of trust, 170 Kesultihq trust, on conveyance where trusts too vague, 181 UNDER-LESSEES. fines of, 392 UNFITNESS. of trustee, 574, 710, 711 UNLAWFUL TRUSTS. Ch. VI. s. 2, p. 131 ; and see 22, 71, 73, 182, 599 Alien for, 132 ; alienation (restraint against), 132, et seq. ; charity for, 132 ; chattels, limitations of, 131 ; corporation for, 131 illegitimate child (future), 131 ; maintenance, 133 ; simony, 136 ; split- ting votes, 137; and see those titles and Cohabitation, Mortmain, Secret Trusts Consequences oe creatino, 137 estate may be recovered by person claiming under settlor, 138 ; or by. settlor himself, where no fraud, 139 ; otherwise Court will not interfere, 137 et seq. USAGE. how far evidence in construction of religious trust, 497 USE. Averrable, 56 ; but not where deed required to pass estate, 57 ; and see 6 note (1) Charitable. See Charitable Uses Deeined, 2 Devisable before statute, 615 Disclaimer of, 236 Estate on which it could be declared, 6 ; whether on a feofiment in tail, 5 ; and see 7, note (1) ; whether upon an estate for life, 5, 6, note (1), 7, note (1) Executed under statute, whether designated as trust or use, 246, 254 Powers before Statute of Uses, 537, note (1) Trusts, special, and of chattels excepted from, 7, 247 USUAL POWICRS. what powers authorised by these words, 164, note (d), 165 how qualified by context, 1 65 VALUATION. how trustee for sale should make, 421 INDEX. 1021 VALUE. See Consideration, Investment VARY. power to vary securities, 523 ; see 169 whether it implies power to give receipts, 523 ; a " usual power," 164 VENDOR. a trustee svib modo for purchaser, 175 accountable to purchasers for rents, &c., unhusbandlike farming, wilful waste or neglect, 174 VESTING ORDER. See Trustee Acts VESTRY, 109. See Parishioners VISITOR. Crown is, in civU corporations, by Court of Queen's Bench, 495 may be in eleemosynary corporations, by terms of foundation, or where heir of founder unknown or limatic, 495 visitatorial power committed to Lord Chancellor, 495 Office oe, he must follow statutes of the founder, 492 whether his decision can be appealed against, 492 new donations distinguished, in respect of visitatorial power from original endowment, 493 VOID. See Infant, Lunatic AccnMULATioN. See Acoumitlation, Thellusson Act Trust. See Duration, Mortmain, Perpetuitt, Uncbktaintt VOIDABLE. See Infant Lunatic, Voluntary Settlement VOLUNTARY AGREEMENT. See Covenant not specifically executed though under seal, 93, 94, and comp. 207 how far provable in equity as a debt, 94, note (/) VOLUNTARY ASSURANCE. See Consideration, Meritorious Trust supported if perfeotlt created, 81 not perfectly created when further act intended, 81 once perfectly created is not subsequently defeasible, 99 ; comp., 207, 215 distinction between voluntary assignment of expectancy and interest, 92 no trust unless intention to create it, 100 Equitable property, of, where settlor declares himself trustee, trust is perfectly created, 82 where settlor appoints stranger trustee, assignment to new trustee sufficient, 89 and good against assignor without notice to former trustee, 91 ; see 280, note (a) where new trustee created without new trustee, 91 assignment to stranger for his own benefit, 91 Legal property where settlor declares himself trustee, trust is perfectly created, 82 where settlor appoints stranger trust transfer necessary, if possible, e. g. in land, chattels, or stock, 84 case of legal property incapable of legal transfer, e. g., chose m action, 85 ; and see 89 VOLUNTARY SETTLEMENT. Land or chattels real, of, defeasible by subsequent sale by settlor, 92 but not by settlor's heir or devisee, 93 c. q. t. cannot prevent sale or obtain redress, 93 settlor cannot enforce contract for sale against purchaser, but pur- chaser may against settlor, 93 power of settlor to defeat by sale, not a disposing power under 1 & 2 Vict. c. 110, s. 11, 13 ; 666, note (6) real or personal estate, of, by one indebted, defeasible by creditor. Trustees of, bound to preserve contingent remainders, 405 VOLUNTARY TRUST. See Debts, Voluntary Assuranoi 1022 INDEX. VOLUNTEER. Assign of trust estate presumed to have notice, 19 ; and see 224, 228, 279, 40§ Trust estatu followed in his hands, 724 Time no bar in case of express trust, 745 as to constructive trust, see 729, 733 VOTES. See Member of Paeliament, Pakishioners purchase for purpose of giving, 137; does not raise resulting trust, 203 VOUCHERS. c. Q. T. may inspect, but must pay for copies of, 428 ; and see 599 Trustees may keep, 428 need not be kept for ever, 741 ; lost, 739 "WAIVER. what is, 737 what consideration sufSoieut for, 737 WARD. See Guardian WASTE. Equitable, 225 Permissive, by equitable tenant for life, 514 ; by legal tenant for life, 614, note (a) Tenant for life without impeachment of, trustees should not purchase wood estate in his favour, 421 Trustees to preserve, their duty to prevent, 408, 413 WASTING PROPERTY. as leaseholds, long annuities, where to be converted, 808, et seq. See Conversion WEST INDIES. equities relating to estate in, enforced here, 47; and see Jurisdiction trustees for estates there, whether entitled to commission, 546 WESTMINSTER. Stat, of, 647 WIFE. See Feme Covert WILFUL DEFAULT. account for, not given on further directions, 765 where directed, 752, see 766 WILL. See Deed. Wills, Stat, of Ambulatort till testator's death, 66 Consideration it implies, 58, 167 Copyholds of, 45, see note (d), 60 ; see note (1) ; of eqidtable estate in, 45, 615, 616 ; where no custom to devise legal estate, 45, 616 under late Wills Act, 60, 617 Customary freeholds, of, 617 ; equitable estate, in, 617 Executory TRUSTS, construction of in wUls, 163, ee sej. ; see Executory Trusts Feme covert of, as to separate estate, 642 Freeholds of, under Stat, of Frauds, 65 ; equitable estate; in, 615 under late Wills Act, 617 Infant of fourteen might formerly make, of personal estate; seem now, 27 Land of, to be converted into money, 807 Monet of, to be laid out in land, 796 Power to appoint bt, contemplates those who answer description at death of donee, 170, 704 ; and see Assets Personal estate of, under Statute of Frauds, 66 ; under late Wills Act, 617 Settlement, will distinguished from aa regards duties of tmstees to preserve, 410 Sovereign of, 25 Stock op, how formerly made, 32, note (1) Use, devise of, 615 devise to uses, construction as to, 258 WILLING AND DESIRING, may create a trust, 167 INDEX. 1023 WILLS. STATUTES OP, Ch. v. a. 3, p. 65 ; see Legal Estate, Residuary (devise) trusts cannot be created by devise or bequest without formalities required for wills, 66 ; see as to personal estate, 68, and see 69, note (a) except in case of charge of debts and legacies on real estates before 1st Jan., 1838, 69 ; (and how far exception extends), and in case of fraud, 70 devise to uses, 258 WISHINa AND REQUESTING. WORBS. See Consent, Constktjotion, Exeootokt Trusts, Grant, Invest- ment, Technical Terms ; " heirs," 141 ; " heir male," 154 ; " heirs female," 149 ; " heirs of the body," see this title ; " issue," 149, 156 ; " it shall be lawful," see 386 ; " shall and may," in Act of Parliament, 301, note {d) ; " request," " require," see these titles, " subject thereto," 191 ; " trustee," " trustee of inheritance," 250 implying restraint against anticipation, 123, 632, note (J) ■; separate use, 121, et seq. ; trust, 167 ; but see 170, 171 supplied in articles, 153 WORSHIP OF GOD. construction of trust for maintaining, 497, et seq. WRITS OF. distringas, see Distringas, 860, et seq. execution at common law, 646 WRITING. Assignment of equitable interest by, 600 Request for sale to be testified by, 419 Trust, note in (not under seal) sufficient to declare, 56 but in case of wills, see 66, 68, and 69, note (a) Trustee may sue before having accepted the trust by, 243 THE END. URADBUnY AND EVANS. PRINTERS, WUlTJiFRIARS. ikmnta rHuiKtioiitttfHTAiMiw&MuWittim :^Hiar«4ttiit