I'h Cornell University Library KF 399.S65 A manual of equity jurisprudence:special 3 1924 018 882 872 Cornell University Law Library The Moak Collection PURCHASED FOR The School of Law of Cornell Universit> And Presented February 14, 1893 IN riEnoRY OF JUDGE DOUGLASS BOARDMAN FIRST DEAN OF THE SCHOOL By his Wife and Daughter A. M. BOARDMAN and ELLEN D. WILLIAMS Cornell University Library The original of this 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/cu31924018882872 Entered according to Act of Congress, in the year 1871, Bt W. H. & O. H. MORHISON, Tn the Office of the Librarian of Congress, at Washington. CAXTON PRESS OF SHBRltAN d: CX)., PHILADELPHIA. nht Ijonorable ^amntl J* ftller* OF IOWA, OkE Ol? THE J0STICES OF TEE SUPEEME CoUET OP THE UNITED STATES, THIS AMEEICAN EDITION OP A WOEK INTENDED TO FACILITATE A KNOWLEDGE OP THAT JUEISFBUDENCE WHICH, WITH OTHER BBANCHES OF THE LAW, HAS BEEN ADMINISTERED BY HIU SO CONSCIENTIOUSLY DPON THE CIRCUIT, UffD ILLUSTRATED AND EXPLAIITED SO ABLY IN THE HIGHER TRIBUNAL WHICH, BY THE COMMON VOICE OF THE PROFESSION, HE EMINENTLY ADORNS, JS MOST RESPECTFULLY INSCRIBED, BY HIS OBLIGED SERVANTS, THE AMEEICAN PUBLISHERS. (iii) PREFACE TO THE AMEEICAK EDITION. The frequent demand from all parts of the United States for some book which should give a succinct yet comprehensive view of the leading principles of Equity Jurisprudence, has led to the present reprint of an English work which it is believed supplies the want; a want greatly felt by students, and indeed by many practitioners. For, the student labors under great disadvantages, when he enters upon the peru- sal of a large Treatise, without having previously read any smaller work upon the same subject ; and after he has read a work of two volumes^ he is able accurately to retain but few points in his memory — far fewer than he would after a careful perusal of a condensed work. The practitioner, too, often stands in need of a body of points and principles, well fixed in his mind, as his constant guide and aid amidst the rapid occaeions of daily practice : and yet it is impos- sible for him to become possessed of such a body of knowledge, except by the help of some succinct view of Equity, or by the experience gained during long and extensive practice. 1* (V,) Vi PREFACE. The Manual is founded in a good degree upon tlie "Commentaries on Equity Jurisprudence" of the late Judge Story ; the " Equitable Jurisdiction " of the late George Spence; and especially upon that admir- able work "The Leading Oases in Equity." The division of the subject is, however,' original. In selection of topics the writer has obviously en- deavored to collect together under appropriate heads, the points necessary to be mastered by the student of law, and those usually occurring, and necessary to be accurately known and constantly borne in mind bj'' every Chancery lawyer. Unlike the learned author of the " Commentaries on Equity Jurisprudence," which comprise upwards of seventeen hundred pages, he omits such cases in Equity as are of a peculiar nature, and not likely to occur again ; and also such as are of so simple and obvious a character, that the decisions respecting them embody nothing more than so plain and neces- sary an application of points and principles stated in the work, that it would be sure to suggest itself at once, without variation, to the minds of different in- dividuals. He has aimed, moreover, at giving in a few words, and without stating all that has been said or may be said on any side— thus frequently leaving the reader at a loss to tell what principle is or ought to be established — that view which is settled by ad- judged cases; or which, when there is a conflict among such cases, seems to be the most correct one; arranging, digesting, defining, distinguishing,.deduc- ing, qualifying, and commenting, with a skill which in England has received the highest tribute of praise. PREFACE. VIL For readers who desire to examine in great detail authorities of the older kind, the references to the Commentaries of Story, in whose treatise they are collected in great profusion, and to the learned trea- tise of M.V. Spence, and especially to the Leading Cases in Equity, will supply full means of gratifying their desire. Cases decided since the death of Mr. Spence and of Judge Story, numbering more than six Jiundred and fifty, are given in this reprint. W. H. & O. H. M. WasSington, February 1st, 1871. CONTENTS iNTKODTJCTIOJf. PAGE Sect. I. — Of the Nature of Equity Jurisprudence, and the Extent of Equity Jurisdiction, ... 1 II. — Of the General Maxims of Equity Jurispru- dence, ....... 10 III. — Of the Division of Equity, .... 33 TITLE I. ©f ii.mtbivH igquitj. SPECIFICALLY SO TBKMBD. Chap. I. — Or Accident, 36 II. — Of Mistake, 45 III. — Or Actual Pkaud 56 IV. — Of Constructive Fkaud 71 TITLE II. ©f jEwtutiSt iSpitj. Chap. I. — Of Legacies and Portions, . . . 110 II. — Of Donationes Mortis Causa, . . . 117 III. — Of Express Private Trusts, evidenced BT some "Written Document, . . . 120 IV. — Of Express Charitable Trusts, . . 149 V. — Of Implied Trusts, 155 VI. — Of Constructive Trusts, . . . 178 B ( ix ) X CONTENTS. PAGE Chap. VII. — Of Teustkes and others standing in a riDUCIAKY KeLATION, .... 189 VIII. — Or THE Specii'ic Peeformancb of Aqbee- mbnts and duties not arising from Trusts, 223 TITLE III. ©f aiJj'ustiSt BSquitj. Chap. I. — Of Account in Genkkal 2fi0 II. — Of Administration, 265 III.— Of Moetoaobs, Pledges, and Liens. Sect. 1. — Of Legal Mortgages of Real Property, 294 2. — Of Equitable Mortgages of Real Prop- erty, 332 3. — Of Mortgages and Pledges of Personal Property, 334 i.— Of Liens, 338 IV. — Of Apportionment and Contribution, . 340 V. — Of Partnership, 348 VI.— Of certain Special Adjustments in Cases of Debtor and Creditor. Sect. 1. — Of the Marshalling of Securities, . 354 2.-0/ the Mutual Right to the Benefit of Securities between a Creditor and Sure- ties, and of the Release of Sureties, . 356 Z.— Of Set-off, 359 VII.— Of certain Miscellaneous Cases of Ac- count, 362 VIII. — Of Damages and Compensation, . . 364 IX.— Of Election 370 X. — Of Satisfaction 378 CONTENTS. XI PAGE Chap. XI, — Or Partition; op Sjittlement of Boun- DAKIES I AND OF ASSIQNMENT OF DOWEB. Sect. \.— Of Partition, 388 2. — Of the Settlement of Boundaries, . . 391 3. — Of the Assignment of Dower, . . 303 TITLE IV. ©{ f rotwliii iSquitj. IRRBSPECTITB OF DISABILITY. Chap. I. — Of Protection feom Litigation ok In- jury, AFFORDED BY THE CANCELLINU, DELIVERING UP, AND SECURING OF DOCU- MENTS 396 II. — Of Protection prom Litigation respect- ing THE Property of Another, by means OF Interpleader, 401 III. — Of Protection from repeated or renewed Litigation, or from unjust Legal Pro- ceedings, AFFORDED BY DECREES UPON Bills of Peace or Bills to establish "Wills, and by injunctions. &V.CT. 1.— Of Bills of Peace 406 2.-0/ Bills to Establish Wills, . . 408 3. — Of Injunctions to restrain Proceedings at Law, 410 IV. — Of Protection from Loss or Injury, in other Cases, by Injunction, . . . 415 V. — Op Protection from Another's Abscond- ment, by the Writ of Ne Exeat Eegno, 423 Xll CONTENTS. PAOE VI. — Of the Peotbction of Pbopektt by taking ATVAY THE POSSESSION OR EeCKIPT THEKE- OF, OK BY REQUIRING SECURITY, . . 425 TITLE V. ®{ f totJEttiSt 3gquit2. IN FAVOR OF PERSONS UNDER DISABILITY. Chap. I. — Of Infants, 430 II. — Of Persons of Unsound Mind, . . . 442 III. — Of Married Women, 445 Sect. 1. — The Powers which Husband and Wife have, in Equity, of Contracting with and Chiving and Granting to each other 446 2. — Pin-money and Paraphernalia, . . 449 3. — The Wife's separate Estate, . . . 451 4. — The Wife's Equity to a Settlement or Maintenance out of her own Property, 463 5. — Some Miscellaneous Points respecting Deeds of Separation, . . , 475 TITLE VI. ffif Euxiliarj Jg^uits. Chap. I. — Of a Discovery in aid op a Suit or De- fence IN ANOTHER COUST, . . . 480 II. — Of the taking and preserving of Testi- mony IN aid of a Suit or Defence in another Court, .... 48B ^ABLE OF CASES, (a) A. Abbot V. Sworder, 64. Ackroyd v. Smithson, 161. Acraman v. Corbett, 97. Adselts V. Hiver, 70! Agar V. Fairfax, 388. Airey v. Hall, 233. Alde'rson v. White, 295. Aldrich v. Cooper, 285. Aleyn v. Belchier, 107. AUoway v. Braine, 19. Alt V. Alt, 257. Ancaster (Duke of) v. Mayer, 270. Anderson v. Abbott, 372, 375, 447. — V. Elsworth, 105. Angle, ex parte, 211. Ashton-s Charity, re, 153. Atkinson, in re, 251. — V. Smith, 104, 326. Atterbury v. Wallis, 98, 100. Att.-Gen. v. Alford, 201. V. Corp. of Beverley, 153. 211. V. Corp. of Leicester, V. Davey, 163. Att.-Geu. V. Earl of Chester- field, 264. V. Greenhill, 156. — 1). Trin. Coll., Cam- bridge, 153. — V. Wilkins, 21. Ayles V. Cox, 236. B V. W , 238, 396, 397. Bagot V. Bagot, 278, 417, 418. Bagshaw v. "Winter, 469, 471. Bagster v. Fackerell, 165. Baillie v. Baillie, 31. Baker v. Bradley, 76. — V. Monk, 65, 66. — V. Read, 19. Bank of Hindustan, &c., in re, 339. Bank of London v. Tyrrell, 80, 82. Barling v, Bishopp, 97. Barnes v. Bond, 341. Barnwell v. Iremonger, 271. Barrett v. Hartley, 191, 206. Barrow v. Barrow, 465. Barrs v. Fewks, 126. (a) This comprises more than 650 cases from the authorized Reports published during the last fourteen years, with a few earlier cases. , For the rest of the earlier cases the reader is referred to the works of Stouy, Spence, and others, on which this Manual purports to be founded. 2 ( xiii ) XIV TABLE OF CASES. Barr's Trust, re, 249. Barry v. Croskey, 60. — V. Stevens, 261. Bartlett r. Bartlett, 249. Barton v. Vanheythuysen, 96, 102. Barvvell v. Barwell, 20. Basset v. Nosworthy, 21, 187, 212. Bate V. Hooper, 202. Band v. Fardell, 195. Baxter v. West, 350. Beale v. Symonds, 331. Beckton v. Barton, 382. ISaech v. Keep, 232. Beecher v. Major, 172. Beevor v. Luck, 318. Bell V. Carter, 296. Bennet v. Lytton, 215. Bentley v. Craven, 82. — V. Mackay, 45. Benwcll v. Inns, 74. Berdoe v. Dawson, 76. Bernard v. Minsliull, 129. Bethell v. Green, 271. Bibby ij.Thompson (No.l),126. Biddlo V. Jackson, 440. Birds V. Askey, 290. Birkley v. Pre'sgrave, 347. Biron v. Mount, 138. Blacket v. Bates, 251. Blagrove v. Routh, 19. Blandy v. Widmore, 29, 175. Blatchfordu. Woolley,461,463. Blest V. Brown, 85. Bloye's Trust, in re, 79. Bold V. Hutchinson, 52. Bond V. England, 277. Bone V. Pollard, 173. Bonser v. Kinnear, 126. Bostock V. rioyer, 201. Bott V. Smith, 90. Boughton V. Hutt, 45. Boulton, ex parte, 247, 249. Boats V. Ellis, 118. Box I'. Barrett, 377. Boys V. Boys. 202. Boyse v. Rossborough, 68, 69, 409. Bradford (Earl of) v. Earl of Romney, 49. Bradwell v. Catchpole, 211. Braybroke v. Inskip, 329. Brice v. Stokes, 193, 209. Bridge v. Beadon, 248. — V. Bridge, 232. Briggs V. Penny, 126, 129, 157. Bright V. Larcher, 19,271,274. — V. Legetton, 19. British Empire Shipping Com- pany V. Somes, 483, 484. Broadbent v. Barlow, 99. Bromley v. Smith, 88. Brooke v. Lord Mostyn, 49. Broughtou V. Broughton, 192. Brown v. Brown, 375. — V. GeUatly, 202. — V. Kennedy, 51, 76, 78. — V. Tanner, 249. Brown's Trusts, in re, 248. Browne v. Savage, 248. Brumridge v. Brumridge, 209. Buchanan u.Harrison,161, 165. BuUer i'. Plunkett, 249. Burn V. Calvallo, 245. Bury r. Oppenheim, 77. Byne i;. Blackburn, 126. Campbell v. Campbell, 380. — V. Ingilby, 38. Campbell's Trusts, in re, 189. Carew v. Cooper, 239. Carpmael v. Powis, 47. Carr v. Living (No. 2), 437. Carter v. Carter, 21, 307. Castle i;. Castle, 126. Caton V. Eidout, 460. TABLE OP CASES. XV Cavendisli v. Greaves, 359. Chambers v. Crabbe, 76. — V. Goldwin, 435. Chaplin v. Young, 205. Charlesworth v. Jennings, 60. Charlton v. West, 380. Chertsey Market, in re, 211. Chesterfield (Earl of) v. Jans- sen, 86. Chichester (Lord) v. Coventry, 380, 381. Child V. Mann, 404. Chowne v. Bay lis, 245. Churchill v. Churchill, 373. Clark V. Fergusson, 420. — V. Leach, 349. — V. Malpas. 65. Clarke v. Franklin, 164, 165. — V. Hilton, 166. Clegg V. Edmondson, 20, 185. — V. Lowland, 216. Clive V. Carew, 461. Cochrane u. Willis, 47, 238. Cockell V. Taylor, 65. Cole V. Willard, 385. Collier v. McBean, 236. Colyer v. Finch, 21, 307. Commissioners of Public Works V Harby, 92. Conron v. Conron, 169. Consolidated Investment and Insurance Co. v. Eiley, 307. Cook V. Earl of Eosslyn, 402. — V. Gregson, 268. Cooke V. Lamotte, 105. Cooper V. Joel, 396. Cooper V. Phibbs, 47. Cooper V. Wormald, 213. Cory V. Eyre, 28, 303. Cosnahan v. Grice, 119. Coventry v. Chichester, 380. — V. Coventry, 272. Cowdry v. Day, 79. Cowell V. Yatcombe, 199. Cowgill V. Rhodes, 409. Cox V. Bishop, 250. Cox V. Coventry, 233. Craddock v. Owen, 160. Crawshay v. Maule, 348. Croft V. Graham, 87. Croskill V. Bower, 205. Cuddee v. Butter, 225, 258. Cutler, in re, 465, 470. D. Dady v. Hartridge, 271. Daking v. Whimper, 103. Dally V. Wonham, 82, 88. Dauiell v. Arkwright, 50. Darbey v. Whitaker, 251. Darby v. Darby, 352. Davies v. Davies, 77. — • V. Nicholson, 281. Daw V. Terrell, 332. Dawson v. Dawson, 382. Day V. Day, 249. DeHoghtoni;. Money,241,399. Dening v. Ware, 96, 232. Denne v. Light, 238. Denton v. Donner, 83. Dering v. Earl of Winchelsea, 345. Devaynes v. Noble, 264. — V; Robinson, 211. Devov V. Devoy, 173. Di Sora v. Phillips, 32. Dilkes V. Broadmede, 281. Dilrow V. Bone, 233. Dimmock v. Hallett, 235. Dimsdale v. Dimsdale, 66, 76. Diplock V. Hammond, 245. Dipple V. Corles, 122. Directors of the Shrewsbury and Birmingham Railway Company v. Directors of North Western Railway Company, 238. Dixie V. Wright, 227. Dixon V. Peacock, 179, 343. XVI TABLE OF CASES. Dolan V. Macdertnot, 151. Donaldson v. Donaldson, 232. Doncaster v. Doncaster, 129. Douglas V. Culverwell, 66. Dowles V. Saunders, 307. Dowling V. Betjemann, 225. Downes v Jennings, 20, 96. Drew V. Lockett, 357. — V. Martin, 173. Drosier v. Brereton, 197. Druiflf'y. Lord Parker, 50. Duffy's Trust, re, 468. Dumper v. Dumper, 173. Duncombe v. Greenacre, 464, 465, 470. Dunkley v. Dunkley, 470. Durham (Earl of) v. Sir F. Lsgard, 230. Dyer v. Dyer, 171. E. Eaden v. Firth, 419. Eaton V. Bennett, 51. — V. Watts, 126. Eaves v. Hickson, 200. Eddels 11. Johnson, 271. Eddleston v. Collins, 326. Edmonds v. Lowe, 384. Egmont V. Darell, 409. Elcock V. Mapp, 160. Elibank (Lady) v. Montolieu, 463. Ellice V. Roupell, 487, 489. Elliot V. Merryman, 102, 142. Ellison V. Ellison, 96, 102, 136. Elwes V. Elwes, 50. Espey V. Lake, 77. Espin V. Pemtoerton, 307. Essell V. Hayward, 350. Evans v. Bremridge, 358. — v. Oarrington, 478. Eyre v. Countess of Shaftes- bury, 430. F. Falcke v. Gray, 224, 238. Farrell v. Davenport, 235. Fenwick v. Potts, 332. Field V. Peckett (No. 3), 222. Finch V. Shaw, 307. Fisher v. Baldwin, 360. Fitzsimmous v. Fitzsimmons, 372. Fleming v. Buchanan, 271. Fletcher v. Ashburner, 227, 271. — V. Fletcher, 232. Fluker«. Taylor, 261. Ford, re, 469. — V. Olden, 316. — V. White, 334. Foster v. Roberts, 88. Fowler v. Fowler, 49. Fowler's Trust, re, 373. Fox V. Fox, 126. — V. Mackreth, 184. Francis v. Brooking, 470. — V. Clemow, 168. — V. Francis, 338. Freeman v. Lomas, 361. French v. French, 97. FuUerton v. Marten, 129. G. Gaffee, in re, 458. Gardner v. Gardner, 460. Garrard v. Frankel, 50. Garth v. Cotton, 177. Gent V. Harris, 470. Gibbins v. Taylor, 207. Gibbs V. Daniel, 79. Gibson v. Goldsmid, 24. — V. Seagrim, 285. Gilbert v. Lewis, 452. — V. Overton, 233. Gilbertson v. Gilbertson, 273. TABLE OF CASES. XVU Gleaves v. Paine, 463, 469. Glenorchy (Lord) v. Bosville, 16, 49, 129. Glover, re, 123. Goddard v. Whyte, 357. Goulder v. Camin, 452. Graham v. Wickham (No. 1), 387. ,Grant v. Grant, 122, 233, 448. Green v. Britten, 453. — V. Marsden, 127. Greenslade v. Dare, 21. Greenwood v. Greenwood, 49, 66. Gregory v. Wilson, 368. Gresley v. Mousley, 19, 79. Greville v. Browne, 168. Griffiths V. Porter, 199. Grosvenor v. Durston, 372. — V. Slierratt, 90. Grove's Trust, re, 469. GuUey v. Cregoe, 126. Gyiiu V. Gilbard, 434. H. Hamilton v. Buckmaster, 236. Hammond v. Smith, 385. Hance v. Truwhitt, 374. Hannah v. Hodgson, 77. Harbin v. Darby, 192. Harcourt v. White, 19. Harding v. Glyn, 44, 126, 155. Harmann v. Mshar, 137. Harmes v. Parsons, 74. Harris v. Harris (No. 1), 220. — V. Mott, 457. — V. Pepperell, 50. — V. Watkins, 167, 168. Harrison v. Guest, 64. 65. — V. Harrison, 161. — V. Randall, 219. — V. Tennant, 350. Hart V. Tribe, 126. Hartland v. Murrell, 167. Hassell v. Hawkins, 385. Hayden v. Kirkpatrick, 330. Haymes v. Cooper, 339. Heald v. Hay, 239. Heather r. O'Niel, 326. Hensman v. Fryer, 271, 287. Heptinstall v. Gott, 166. Hewison I'. Negus, 104, 447. Higgins V. Samels, 235. Hill V. Boyle, 241.. Hilton V. Woods, 240. Hiscock (Doe d.) v. Hiscocks, 54. Hitchcock V. Glendinen, 473. Hitchman v. Stewart, 347. Hobday v. Peters. 329, 463. Hoddell -B. Pugh, 228. Hogdson V. Bibby, 20. Hoghton V. Hoghton, 76. Holloway v. Eadclifle, 227. Holman v. Loynes, 79. Holmes' Estate, re, 80. ^ — V. Penney, 97. Holroyd v. Marshall, 247. Honeywood v. Foster (No. 2), Hood V. Oglandsr, 126. Hope V. Hope, 31. Hopwoodi;. Hop wood, 382. Horton v. Brocklehurst, 206. Hotten 1!. Arthur, 421. Howe V. Earl of Dartmouth, 202. Howells V. Jenkins, 372. Hudson V. Temple, 229. Hughes V. Jones, 230. Huguenin v. Basely, 76, 105. Hulme V. Tenant, 451. Hunt V. Huut, 477. Hunter v. Belcher, 263. Huntingdon (Earl of) ^.Count- ess of Huntingdon, 177, 326. Hutton V. Rossiter, 60. 2* xvm TABLE OF CASES. I. Insole, in re, 455. Ion V. AsMon, 272. 278. J. Jarrold v. Houlston, 421. Jeans v. Cooke, 174. Jefferies v. Michell, 385. Jenkins v. Joues, 311. Jenkinson v. Harcourt, 277. Jenner v. Morris, 360. Jennings v. Baddeley, 350. — V. Broughton, 58. Jervois v. Jervois, 450. Johnson v. Gallagher, 461. — V. Wyatt, 365. Jones V. Parrell, 246. — V. Gregory, 57. — V. Lock, 233. — V. Eicketts. 88. — V. Thomas,' 402. K. Kay V. Johnston, 179. — V. Smith, 58. Keane v. Roberts, 210. Keech v. Sandford, 185. Kekewich v. Manning, 233. Kellaway v. Johnson, 211. Kelson v. Kelson, 102. Kemp V. Burn, 222. Kensington (Lord) v. Bouve- rie, 344. Kincaid's Trust, in re, 465, 470. Kirkwood v. Thompson, 312, 319. Koeber v. Sturgis, 470. Lacon v. Allen, 333. Lake v. Craddock, 175. Lake v. Gibson, 22. Lambarde v. Older, 361. Lambe i>. Orton, 233. Lambert v. Thwaites, 156. Lancaster and Carlisle Rail- way Company v. Noith- Westem Railway Company, 422. Lane v. Jackson, 21. Langdale (Lady) v. Briggs, 277. Laver v. Fielder, 19, 256. - Layard v. Mand, 307. Leary v. Shout, 350. Lechmere v. Brotheridge, 457. Le Neve v. Le Neve, 98. Lee V. Hewlett, 307. Leeds Banking Company, in re, 461, 463. L'Estrange v. L'Estrange,245. Legg V. Goldwire, 49. Leigh V. Lloyd, 99. Lester u. Foxcroft, 253. Lett V. Morris, 245. Lewis V. Hillman, 80. — V. Mathews, 452. — V. Bees, 102. Leyland v. lUingworth, 235. Life Association of Scotland r. Siddell, 465. Lilford (Lord) v. Powys Keck, 290. ' ' ^ ' Lincoln v. Wright, 93. Lister v. Hodgson, 55. Liverpool Borough Bank y.- Turner, 336. Lloyd I'. Attwood, 103. — V. Banks, 248. Lodge V. Prichard. 352. Loffus V. Maw, 257. Londesborough (Lord) v. Som- erville, 170. Long V. Bowring, 258. Longmate v. Ledger, 65, 66, 68. ■ TABLE OF CASES. XIX Lovell V. Galloway, 411, 483. Lovett V. Lovett, 409. Loxley v. Heath, 256. Lucy's case, 48. Luflf V. Lord, 205. Lyddon v. Moss, 81. Lynch v. Grant, 212. M. Mackreth v. Symmons, 180. Macleod v. Annesley, 197. Macnab v Whitbread, 126. Magawley's Trusts, re, 96. MagdalenCol.t'. Att. -Gen. ,153. Malcolm v. Scott, 245. Malmesbury (Earlof) ij. Coun- tess of Malmesbury, 50. Manby v. Bewicke, 67. Mangles v. Dixon, 251. Mauningford v. Toleman, 176. Mare v. Saudford, 98. ' Marsden's Trust, re, 107. Marsh v. Lee, 304. Marshall v. Fowler, 469. Martin v. Martin, 435. McCarogher v. Whieldon, 380, 381. McCormick v. Gamett, 469, 473. McDonnell v. White, 20. Meadows v. Meadows, 49. Mendes v. Guedalla, 199. Merriman v. Ward, 264. Metcalfe's Trusts, re, 68. Micklethwait v. Micklethwait, 418. Middleton v. Greenwood, 385. Millard v. Harvey, 478. Miller v. Thurgood, 372, 373. Millett I'. Davey, 298. Money v. Money, 440. Montefiore v. Guedella, 382. Moore v. Morris, 456, 458. Moore v. Petchell. 270. Morgan v. Higgings, 81. Morley v. Morley, 342. Morse's Settlement, in re, 49. Mortimer v. Bell, 237. Mosley v. Ward, 375. Moss V. Bainbrigge, 80. Mostyn v. Mostyn, 49, 54. Munch V. Cockerell, 211. Murray v. Parker, 49, 53. Murrell v. Goodyear, 107. Mutlow V. Mutlow, 268. Myers v. United Guarantee Company, 242. Nanney v. Williams, 20. Napier v. Napier, 469. Nelson V. Stocker, 59. Nesbitt V. Berridge, 88. Neve V. Pennell, 318. Nevin v. Drysdale, 382. Newberr}', in re, 432. Newman, m re, 81. Newman v. Selfe, 311. Newman i;. Wilson (No.2),470. Newton v. Chorlton, 357. Nicholls V. Jones, 478. Nottidge V. Prince, 68, 78. Noys V. Mordaunt, 372. Nunn V. Pabian, 253. O. Oakes v. Turquand, 61. O'Brien v. Lewis, 80. Ogilvie V. Jeaffreson, 21, 60, 99. Ormes v. Beadle, 238, 252. Oxford's (Earl of) case, 411. P. Padwick v. Hurst, 2G1. XX TABLE OF CASES. Page V. Cox, 124i Pain V. Coombs, 255. Palmer v. Newell, 387. Parker 1). Clarke, 328. — V. Heudrie, 314. Parkin v. Thorold, 229. Parkinson t).Hanbury,299,812. Parnell v. Kingston, 233. Paterson r. Murphy, 122. Paterson v. Scott, 286. Payne v. Mortimer, 234, 284. Peachy v. Duke of Somerset, 258, 366. Pearl v. Deacon, 357. Pearman v. Twiss, 271. Pearson v. Amicable Assu- rance Office, 232. Pearson v. Benson, 79. Peckham v. Taylor, 121, 122. Pegler v. White, 237. Pembroke v. Friend, 279. Penfold V. Mould, 471. Penn v. Lord Baltimore, 30. Perfect v. Lane, 88. Perry v. Knott, 211. Persse v. Persse, 66. Peterson v. Peterson, 269. Philanthropic Society t'.Kemp, 289. Phillips V. Beal (No. 2), 211. ■ — V. Edwards, 255. — V. Gutteridge, 331. — V. Hudson, 407. — V. Parry, 270. — V. Phillips, 260, 382. Phillipson v. Kerry, 51,54,105. Philpott t;. St. George's Hos- pital, 153. Phipps V. Child, 360. Piggott V. Stratton, 107. Pinchin v. Simms, 380. Piper V. Piper, 279. Pledge V. Bass, 357. Plenty v. West, 272. Poole, ex parte, 176. Pooley r. Quiltcr, 84. Potts V. Surr, 76. Powell V. Hellicar, 117. — v. Merrett, 160. Powys V. Blagrave, 417. Price V. Ley, 55. Prideaux v. Lonsdale, 96. Prole V. Soady, 180. Pulsfordu. Bichards, 58,60,01. Pusey V. Pusey, 427. Pye, ex parte, 878. Pyrke v. Waddingham, 236. Q- Quayle v. Davidson, 126. B. Banelagh(Lord) r.Melton,229. Bankin v. Weguelin, 118. Eavcnscroft ■;■. Jones, 382. Eawlins v. Wickham, 60, 350. Bead v. Stedman, 160. Bees V. Berrington, 85. Beeves v. Baker, 126. — V. Greenwich Tanning Company, 238. Eehden r. Wesley, 198. Eeid V. Eeid, 155. Beynell v. Sprye, 59, 74, 239. Eeynolds v. Godlce, 164. Bhodes i\ Bate, 76. Bice V. Eice, 28, 303. Bichardson-i'. Bichardson,233. Eidgway v. Newstead, 20. Bipley v. Waterworth, 165. Eoberts v. Croft, 333. Bobertson r. Norris, 19, 311. Bobinson v. Gcldard, 289. — V. Governors of Lon - don Hospitai, 161, 162. TABLE OF CASES. XXI Eobinson v. Pett, 84, 184, 186, 192. — V. Wheelwright, 459. Rodick V. Gandell, 245, 246. Rogers v. Challis, 257. Bolt V. Hopkinson, 305. — t;. White, 251. Kooket!. Lord Kensington, 50. Eooper v. Harrisson, 308. Rose 1). Watson, 226. Rotheram v. Rotheram, 271. Row V. Dawson, 245. Rowe V. Rowe; 202. Rowland v. Evans, 350. Rowlandson, ex parte, 352. Ruffia, ex parte, 352. Russell V. Kellett, 152. Russel V. Russel, 332. RyaU V. Rowles, 247. S. Salter v. Bradshaw, 88. Saltmarsh v. Barrett, 160. Salusbury v. Denton, 155. Samuel v. Ward, 378. Sanders v. Rodway, 477. Savery v. King, 77, 79. Scales V. Maude, 232. Scarfs. Soulby, 96. Schofleld V. Heap, 382. Scholefield v. Lock wood, 50, 320, 327. — V. Templer, 61. Schroder v. Schroder, 374. Scott V. Spashett, 467, 470. — V. Tyler, 73. Seaaram v. Knight, 20. Selby V. Pomfret, 318. Sells V. Sells, 50. Senior v. Pritchard, 411, 483. Sercombe v. Sanders, 76. Seton V. Slade, 228. Shadbolt v. Yanderplank, 384. Sharp «. Leach, 76, 88, 105. Shattock V. Shattock, 463. Shaw V. Bunny, 312. Shee V. French, 268. Shepard v. Brown, 261. Shillibeer v. Jarvis, 253. Shoveltdn D. Shovelton, 126. Silk V. Prime, 167, 168, 268. Simmons v. Rose, 274. Slim V. Croucher, 60, 93. Smedley v. Varley, 83. Smee v. Baines, 360. Smith V. Cherrill, 97. — V. Everett, 216. — V. Hurst, 137. — V. Kay, 78. — V. Leveaux, 261. — V. Parker, 251. ■ — V. Pincombe, 49. — V. Smith, 469. — V. White, 75. Somerset (Duke of) v. Cook- son, 427. — V. Cox, 249. South, ex parte, 245. — V. Bloxam, 286. Spaight V. Cowne, 100. Sparshaw v. Gribbs, 343. Spencer v. Pearson, 304. — (Earl) V. Peck, 487, 488. — V. Topham, 79. Spicer v. Spicer, 465. Spinks V. Cohen, 396. Spirett V. Willows, 469. Spread v. Morgan, 376. Squires v. Ashford, 470. St. Albyn v. 'Harding, 88. Stackhouse v. Countess of Jer- sey, 28. Stainton v. The Oarron Com- pany, 362. Stansfleld v. Cubitt, 247. Stapilton v. Stapilton, 48, 66. Steele v. Murphy, 138. XXI 1 TABLE OF CASES. Steele v. North Metropolitan Bailway Company, 422. Stephens v. Stephens, 372. Sterne v. Beck, 367. Steward, ex parte, 245. Stocker v. Wedderburn, 237, 477. Stocks V. Dobson, 250. Stokoe V. Cowan, 97. Strange v. Breniion, 80. — V. Fooks, 20, 85, 357. Strathmore (Countess of) v. Bowes, 96. Streatfield v. Streatfield, 372. Strong V. Strong, 97. Stroughill V. Anstey, 145, 213. Stump V. Gaby, 81. Sugden v. Crossland, 204. Suggitt's Trusts, 469. Surcome v. Pinniger, 254. Surtees v. Perkin, 286. Swainson v. Swainson, 278. Swaisland v. Dearsley, 235. Swan, re, 464. — V. Holmes, 372. Swift V. Swift, 432, 447. SwinfeniJ.Swinfen (No. 5), 198. Sykes v. Sheard, 236. T. Talbot V. Stanforth, 88. Tassell v. Smith, 305. Tassey's Trust, in re, 453. Tate i). Williamson, 76. Tatham v. Vernon, 232. Taylor v. Meads, 457. — V. Portington, 231. — V. Taylor, 161, 102. Tempest v. Tempest, 290. Tench v. Cheese, 271, 274. Thompson v. Cartwright, 100. — V. Pinch, 206. — i'.Hudson,300,300. Thompson v. Tomkins, 248, 249. — V. Webster, 97. — ■ v.Whitmore,50,51. Thornborough v. Baker, 188. Thorp V. Owen, 126. Tliynne (LadyE.) v. Earl of Glengall, 253, 379. Tidd V. Lister, 287, 475. Tilderley v. Clarkson, 238. Tiiley v. Thomas, 229. Tinsley v. Lacy, 421. Tipping V. St." Helen's Smelt- in s Company, 419. Toilet V. Toilet, 18, 44. Tomson v. Judge, 79, 80. Topham v. Duke of Portland, 105. Torre v. Torre, 49. Townsend v. Mostyn, 277, 278. Trail v. Baring, 60. Trutch V. Lamprell, 206. Tucker v. Burrow, 173. — V. Laing, 85, 86. Turner v. Sargent, 129. — V. Turner, 339. — V. Wright, 177, 418. Turnley v. Hooper, 97. Tynte v. Hodge, 88. Tyrrell i: Bank of London, 80, 82. Tyrrell's Case, 124. Tyson v. Jackson, 242. U. Underwood v. Wing, 160. Qsticke v. Peters, 372. V. Vandenberg v. Palmer, 122. TABLK OF CASES. XX 111 Vansittart i'. Vansittart, 231, 447. Vaughan v. Buck, 470. ■ — V. Vanderstegen, 461, 463. Veal V. Veal, 118. Verity v. Wylde, 339. Viner v. Francis, 113. Vint V. Padget, 318. Vivers v. Taite, 238. Vorley v. Cooke, CO. Voyle V. Hughes, 232. W. ^Y V. B , 238, 396. 397. Wake V. Conyers, 392. Walker r. Armstrong, 50. — V. Drury, 469, 471. — V. Jones, 328. — V. Micklethwait, 32. — i\ Smith, 80. — • V. Symonds, 211. Wall V. Colshead, 165. Wallace v. Auldjo, 473. Waller r. Barrett, 215. Walrond v. Walrond, 447. Ward V. Turner, 117. — V. Yates, 470.' Warden v. Jones, 97. Waters v. Taylor, 348. — V. Thorn, 79, 81. Watney v. Wells, 350. Watson V. Duke of Welling- ton, 245. Watson V. Lyon, 339. — V. Marshall, 470, 471. — V. Watson, 382. Weale v. Ollive, 232. Webb V. England, 224, 441. — V. Hewitt, 85, 358. Webster u. Cecil, 236. — I'. Webster, 249. Wells y. Maxwell (No. 1), 229. Wentworth v. Lloyd, 20, 82. Wheeler v. Howell, 168. — V. Smitli, 126. Whitbread v. Smith, 326. White V. Grane, 335. White's Trusts, re, 155. Whitley v. Whitley, 372. Wicks V. Scrivens, 318, 319. Wilcooks V. Wilcocks, 29, 175. Wild V. Milne, 351. Wiikins v. Sibley, 214. Wilkinson v. Fowkes, 23. Willes V. Grecnhill (No. 1, 2), 248. Williams v. Bayley, 69. — V. Headland, 215. — V. Williams, 66, 173, 409. Wilson V. Lady Dunsany, 293. — V. Wilson, 49, 54, 476, 477. Wintour v. Clifton, 372, 373, 376. Witt V. Amis, 118*. Wolterbeek i'. Barrow, 49. Wood V. Ordish, 270. Woodford v. Charnley, 238. Woolam V. Hearn, 256. Woolridge v. Woolridge, 373. Worseley i;. De Mattos, 137. Worthingtonu.Wiginton, 376. Wright V. Goff, 49. — v. Lord Maidstone, 42 . — V. Vanderplank, 19, 76, 78. Wyke V. liogers, 85. Wythe V. Henniker, 291. Young V. Young, 272, 305. A MANUAL EQUITY JURISPRUDENCE. INTEODUCTION Section I. Of the Nature of Equity Jurisprudence, and the Extent of Equity Jurisdiction. To explain the true nature of Equity Ju- inteob. . , , . . . , Sec. I. risprudence with brevity, perspicuity, and accurateprecisioii.isataskof great difficulty ana import- >■ ' b J ^^^g of the (see Story's Com. Ch. I. passim), on account inquiry, of the mixed character of the science,. and the immense extent of learning which for this purpose it is necessary for the mind to survey at one and the same time. It is most important, however, that some at- tempt be made to accomplish this, before the 1 (1) NATURE AND EXTENT OF EQUITY. INTKOD. Sec I. Definition of equity jurispru- dence. reader's attention is directed to the parti- cular doctrines of the vast and admirable system, the principal features of which it is the design of these pages to delineate. The writer believes it is impossible to give a short definition of Equity Jurispru- dence, without cither failing to convey any accurate and definite knowledge, or else positively misleading the student. But Equity Jurisprudence in the specific and technical sense of the term, as contradis- tinguished' from natural, abstract, and uni- versal Equity, and from Law and the Statutory Jurisprudence of the Court of Chancery, may be described to be a por- tion of justice or natural Equity, not em- bodied in legislative enactments or in the rules of the Common Law, yet modified by a due regard thereto, and to the complex re- lations and convenience of an artificial state of society, and administered in regard to cases where the particular rights in respect whereof relief is sought come within some general class of rights enforced at Law, or may be enforced without detriment or in- convenience to the community, but where, as to such particular rights, the Courts of Law cannot, or originally did not, clearly NATURE AND EXTENT OF EQUITY. 3 afford any relief or adequate relief, at least ^g™°°' not without circuity of action or multiplicity of suits, 01' cannot make such restrictions, adjustments, compensations, qualifications, or conditions, as may be necessary in order to take due care of the rights of all who are interested in the property in litigation. Although there may possibly be some pecu- liar cases which may at first sight be thought to prove this description to be faulty, yet it will probably appear, on closer considera- tion, that such cases (if any such there are) are not to be regarded as illustrative of the general character of Equity Jurisprudence; and it will probably be found, and the fol- lowing observations may tend to show, that such description conveys a just notion of the true nature of that science. I. In the most general sense, Equity is Equity jur- ° / A ./ isprudence synonymous with natural justice. (See St. ^^'^^^' § 1, 2.) But Equity, as contradistinguished S'^^^tfeel from Law, and as administered in our Courts of Equity, has a much narrower and an otherwise different signification. Many matters of natural justice, by the Equity Jurisprudence of this and every other civil- ized nation, are left to be disposed of inforo conscientice, from the difficulty- of framing I NATUEB AND EXTENT OF EQUITY. iNTROD. any general rules to meet them, and from the mischief and inconvenience which would arise from attempting judicially to enforce such duties as charity, gratitude, and kindness, or even positive engagements, where-. they are not founded on a valuable consideration, or, at least, on what is deemed a good consideration. (See St. § 2, 8, note, and §14; 1 Sp. 447. n. (d).) And, on the other hand, setting aside that body of natural justice which is comprised in statutory provisions, a vast proportion of what is specifically denominated Law, as contradistinguished from what is technically designated Equity, has been reared up inde- pendently of legislative enactments or arbi- trary or conventional rules, and consists, in the main, of a system of natural Equity or justice, modified so as to be adapted to the manifold and complicated relations and exi- gences of a highly artificial state of society. (See St. § 7, 8, notes, and § 20, 34.) And as to the construction of statutes, a Court of Law is bound to interpret them accord- ing to the intention of the legislature, as much as a Court of Equity : indeed, both adopt the same principles of interpretation, (See St. § 15.) NATURE AND EXTENT OF EQUITY. 5 So that, on the one hand, natural iusticc ixtrod. ' J SKC. I. or Bquitj' is not excluded from the system of Law ; nor, on the other hand, is it carried out to an unlimited extent even in a Court ,of Equity. And in the cases to which it is applied in a Court of Equity, it is not always applied in an unmodified form, but is quali- fied (as we shall see in the next section and in subsequent pages) by a due regard' to legislative enactments and the rules of the Common Law, and to the varied and com- plicated relations and the general conve- nience of the subsisting order of things. The truth, then, appears to be this: first, Aiargepor- , tlonofoatu- that a large portion of natural Equity is rai justice is ° -^ _ ^ •' left to con- left to be administered in foro conscientice ; science. because, in addition to the difiiculty of pro- pounding precise rules applicable to all cases, a greater detriment and inconvenience to the community would probably ensue. from at- tempting to enforce it in the public Courts, than from leaving it to the decision and the power of conscience, and to the various motives by which mankind are ordinarily influenced. Secondly, that another large Another portion of natui-al Equity, in a modified ^inigte^rtd, form, is administered by the Courts of Law, a'Li fJrarin and is denominated Law, in contradistinc- law!^ ^ 1* 6 ■ NATURE AND EXTENT OF EQUITY. iNTROD. tion to what is technically termed Equity. • — -. And thirdly, only a portion, therefore, of tLedlJf^ natural Equity, and that in a modified form, equiS^s ^s administered in a Court of Equity; and oniy^a°por- that portiou is Specifically and technically urai justice, Called Equity, in contradistinction as well and lu a modified to the two Other portions of Equity, or to natural, abstract, and universal Equity or justice in general, as to legislative enact- ments, and arbitrary, feudal, or simply con- ventional rules. Srelsno ^^' ^- There are particular rights which law.^and** come within some general class of rights exclusive* enforced at Law, or capable of being judi- cially enforced, not only in particular in- stances, and to the benefit of particular individuals, but in all cases, and to the advantage of the community at large; and yet there are no forms of action by which relief can be obtained in respect of such particular rights, and they are consequently left to conscience by the Courts of Law ; but being capable of being enforced by pro- ceedings in Equity, and being of a character demanding judicial sanction and interposi- tion, Courts of Equity readily interfere and afford relief. In these cases, therefore, Courts of Equity have exclusive jurisdic- jurisdiction. NATUKB ANDi EXTENT OF EQUITY. 7 tion. This, for example, is the case with ^g^,?""- trusts, for the most pai*t ; with the right to relief in many instances of accident, mis- take, fraud, penalties, and forfeitures ; and, in most cases, with the right to protection against anticipated loss or injury. (See St. § 29, 962.) 2 There are many other cases, in which where •^ equity as- the kind of relief which is afforded by Courts ™'».^'' J"™- .^ diction on of Law is inadequate, but in which Courts ^he^hiade^ of Equity can give the precisely appropriate fegai'roiieff relief. For example. Equity will often en- force the specific performance of a contract; whereas Courts of Law can only give damages for the breach thereof. (See St. § 30, 33.) There are also cases in which adequate and of to avoid ■^ circuity of complete relief could be had at Law, but in ^iitipUcity order to obtain it circuity of action or mul- o^™"*; tiplicity of suits would be necessary ; where- as complete justice can be done by a single sui t in Equity. (See St. § 64, k, 496, 621, 853, 854.) 4 Cowen, ^82. Again: Courts of Law cannot do more than or to take due care of pronounce a positive judgment in a settled therigiitsof form, either for the plaintiff or the defendant, irrespective of the peculiar circumstances of the case ; whereas Courts of Equity can adapt 8 ' NATURE AND EXTENT OF EQUITY. iHTBOD. their decrees to all the various circumstances Sec. I. which may arise, and can take due care of the rights of all who are in any way inter- ested in the property in litigation. (See St. § 26, 27, 28, 437.) In these three classes of cases. Equity has a concurrent, and practically an exclusive jurisdiction. Indeed in some, if not in all of the last class of these cases, Equity will assert an exclusive jurisdiction, by granting an injunction against proceedings in other Courts. (See Tit. II. chap. I., infra.) or on ac- The neccssity for a discovery in a Court of coimt of the .ii ....... necessity Equitv fumishcd a ground of lurisdiction for foradiscoy- . . "■y; relief in a great variety of cases. For the Court, having acquired cognizance of the suit for the purpose of discovery, will frequently entertain it for the purpose of relief. (St. § 691, 692.) or 01) ac- And in cases where the Courts of Law ori- couut of the oriLrinai de- ginally did not afford adequate relief, Courts faw*^^"' of Equity exercised a concurrent jurisdic- tion, unless prevented by a legislative enact- ment, although the Courts of Law have sub- sequently given such relief, because they can have no power to circumscribe the jurisdic- tion of Courts of Equity. (See St. § 64 i, 81 ; 2 Sp. 16.) If the jurisdiction of the Court of NATURE AND EXTENT OF EQUITY. ' 9 Chancery were necessarily to cease as soon ihtbod. as a Court of Law assumed jurisdiction, it would involve the administration of justice in uncertainty and confusion; and it might be otherwise extremely prejudicial thei-eto; as the Courts of Law might sometimes enter- tain suits, where they had not the proper means of investigating the truth, or the neces- sary ability to afFord full relief, or to take due care of the rights of all the parties. And so if it is doubtful whether the Courts or the doubtful- of Law can give such relief, the Courts of nessof ° obtaining Equity have jurisdiction. ' ™<=i> =^«'i«^- 3. In some cases a matter is most properly -^phere cognizable at Law, and Courts of Law could auxiiia™ always have afforded due relief, had they pos- sessed that evidence which a Court of Equity could obtain. In these cases Courts of Equity have an auxiliary jurisdiction to provide the Courts of Law with that evidence. (See Title VI. Ch. I. infra, and see St. § 64 k, 673.) 4. Where it is clear that the Courts of Law where it has no could always afford adequate relief, without jurisdiction, the aid of Courts of Equity, and without cir- cuity of action or multiplicity of suits, and could take due care of the rights of all who are interested in the property in controversy, 10 NATURE AND EXTENT OF EQUITY. ^svc°i' ^j Sora V. Phillips, 10 H. L. Cas. 624, 633.) XIV. "If a person has sustained injury in consequence of any order or proceeding of a Court of Equity, or by reason of any- thing which has occurred in the execution of its process, he must seek redress there, and not in a Court of Law. If tie matter complained of involves a question of the jurisdiction of Equity, or of the validity or effect of its order, or process, it will never allow such a question to be carried for decision to a Court of Law; but if, admit- ting the jurisdiction of the Court and the validity of its order, redress is sought merely in respect of some irregularity or excess in the execution of its order, it will, at its dis- cretion, either itself give redress to the aggrieved party, or permit him to proceed at law, as justice and convenience may re- quire." ( Walker v. Micklefhwait, 1 Drew. & Sm. 49.) DIVISION OF EQUITY. 33 Inteod. Sec. III. Section III. Of the Division of Equity. The subject of Equity Jurisprudence may be conveniently, and perhaps most properly, treated under the following heads, designated according to the more distinctive character- istics of the relief afforded, or the general objects sought to be effected. I. Of Bemedial Equity, specifically so termed. II. Of Executive Equity. III. Of Adjustive Equity. IV. Of Protective Equity, irrespective of- disability. V. Of Protective Equity, in favor of persons under disability. VI. Of Auxiliary Equity. TITLE I. ODf Hcmebid ©qnitg, sperificolls 00 term«&. (35) (36) CHAPTER I. OF ACCIDENT. Cap li -^^ accident, in the usual sense of the term, is an occurrence not referable to design. S^accident. Accident, as remediable in Equity, may be defined to be an unforeseen and injurious oc- currence, not attributable to mistake, neg- lect, or misconduct, in the ca°e° ^hus the reduction, by Act of Parliament, tfon'irf"''" of public stock directed by will to be set apart to answer an annuity, is an accident, remediable in Equity by decreeing the de- ficiency to be made up against the residuary legatees. (St. § 93.) remediaMe* ^' '^^^''^^ ^^^ many cases of accident in ^tuw. which due relief could always be obtained at Law; and there Equity will not interpose. (St. § 79.) II. Aoci- II. On the other hand, there are many dents not ' '^ auawor'in ^ases in which no remedy can bo bad either "I""'" at Law or in Equity. (St. § 79.) Thus, of cuiTbu- ^" ■^^ relief will be granted where the ae- "/ffcrei'^ cident arose from the gross neglect or fault ACCIDENT. 37 of the party seeking relief, or his agents, tit. i. (St. § 105.) — ■ 2. And where a person has expressly and or of an absolutely contracted or covenanted to do a agr'^enient, particular thing, it is no ground for the in- terference of a Court of Equity, that he has been prevented by accident from fulfilling his engagement, or from deriving the full benefit of the contract on his side. For he might have prevented any injurj' to himself from accident, by making proper excep- tions; but since he has made no such ex- ceptions. Equity will not conjecturally limit a liability which in terms is general and unqualified. (See St. § 101— 104.) So that to repair, if a lessee covenants to keep the demised premises in repair, he will be bound to do so, notwithstanding any unavoidable acci- dent by which they are destroyed or injured. (St. § 101.) And where there is a covenant or to pay rent, to pay rent during the term, without any exceptions, it must be paid, notwithstanding the premises are accidentally burnt down during the term. (St. § 102.) So if an es- tate is sold for a certain sum of money and an annuity for the life of the vendor, and ™ ™ ""- the vendor dies before the receipt of any annuity, Equity will not grant relief. (St. 4 38 ACCIDENT. Tit. I. Cap. I. or of failure of the con- sideration : or of a coun- tervailing equity : or of want of equity : as where a will is de- fectively executed. § 104.) And an ante-nuptial settlement cannot be set aside, reformed, or varied, on the ground that it was intended that there should be a pecuniary consideration on both sides, whereas the pecuniary consideration on one side has failed. {Campbell v. Ingilby, 21 Beav. 567 ; 1 D. & J. 393.) 3. Nor will relief be granted in favor of a person whose equitable right to assistance is not equal, or not more than equal to the equitable right to protection which is pos- sessed by the party against whom the relief is sought. For this reason relief is not given against a bond fide purchaser for valuable consideration, without notice (see St. § 108) ; or against an heir in tail or re- mainder-man in tail, in favor of persons claiming under the tenant in tail. (St. § 107.) 4. And so relief will not be granted in favor of a person, who, although a great loser through an accident, has no equitable title to relief, or as little as the person against whom relief is sought. Thus, no relief will be afforded to the legatees or devisees under a will defectively executed (see St. § 105 a, 106) : for, being mere volun- teers, they have as little Equity as the heir ACCIDENT. 39 next or of kin, or even less, inasmuch as '^^^ ^• fortior et cequior est dispositio legis quam hominis (Co. Litt. 338 a) : and therefore the legal right which has vested in the latter will not be taken away; as the maxim is, that "where the Equity is equal, the Law must prevail." III. But where a Court of Law cannot, ni- Acci- dents reme- or, in similar cases, originally could-not, or ^^^}'^ i° ' ' o J ' equity. did not, give adequate relief, and take due care of the rights of all persons interested, and the party prejudicially affected is free from blame in respect of the accident, and has a conscientious title to relief, it will be granted by the Court of Chancery, if it can be granted without derogating from any positive agreement, or violating any equal or superior Equity in another person. (See St. § 28, 64 i, 79, 81, 85, 89, 101, 105, 106, 109.) 1. In cases of destroyed, lost, or sup- i. jurisdic- •' ' '■ tionfordis- pressed deeds, the jurisdiction of Equity, covery in merely to compel a discovery, would seem to f^gf ™y|^' be universal, because this was a preliminary goSl^'and assistance peculiar to Equity. And where a discovery only is sought. Equity will grant it without any affidavit of loss ; because a person would not file a mere bill of discov- ery, unless the instrument were really lost. 40 ACCIDENT. Tit. I. But^ in these cases, the jurisdiction for . .— T". relief, in addition to a discovery, is of limited jurisdiction ' "^ ' sucifclsii" extent ; for, in some of these cases, Courts of Law have all along been able to admin- ister, and have been in the habit of doing. Requisites complete iustice. fSee § 83, 84.) And where to maintaiD a. ^ \, v j ^ uaJta^e-' ^^^^ relief is sought in a Court of Equity c^Vs° ""''' an affidavit of the fact of destruction, loss, or suppression must be annexed to the bill ; because, in such cases, it is desired to change the forum, from a Court of Law which, prima facie, is the proper forum, to a Court of Equity; and therefore an affidavit ought to be required, to prevent an abuse of the process of the Court. There must also be an offer of indemnity in the bill when the nature of the case seems to require it. (See St. § 83 ; Mitford's Plead- ings, ed. 5, pp. 65, 66.) And in order to maintain the suit, it is further indispensable that the destruction, loss, or suppression, if not admitted by the answer, should be estab- lished, at the hearing of the cause, by satis- factory proofs. (See St. ^ 88.) Instances In Among Other instances in which Equity equity has cxei'cises jurisdiction for relief in the case junsaiction J UiOTeSs" of destroyed, lost, or suppressed deeds, relief will be given in Equity where the plaintiff ACCIDENT. 41 avers that a deed relating to land has been tit- i- either destroyed or concealed by the defend- ant, but he (the plaintiff) knows not whether it has been so destroyed, or whether it has been only concealed ; for, there a Court of Equity will make a decree (which a Court of La.w cannot), that the plaintiff shall hold and enjoy the land until the defendant shall produce the deed, or admit its destruction. (St. § 84.) So if a deed concerning land is lost, and the party in possession seeks a discovery, and to be established in his possession under it. Equity will afford relief. (St. § 84.) 2. A person may also come into Equity 2. jurisdic- tion in cases for payment of a lost bond ; because, until a ofio|t recent period, no relief was given at Law, on account of the want of a profert. (St. § 81, 82.) And besides, at Law, the defendant had not the protection of the oath of the plaintiff to the fact of the loss. Again, it is often proper to grantrelief upon the terms of the party giving a bond of indemnity ; and a Court of Law could not insist on such a bond as a part of the judgment; and, although it has sometimes required the previous offer of an indemnity, yet such an offer may be un- satisfactory in ma,ny cases; for, in themean- 4* 42 ACCIDENT. Tit- I- time, the circumstances of the party to the Cap. I. ' i ./ bond of indemnity may undergo a great change. (St. § 82.) 3. jurisdic- 3. Courts of Law could always enforce tiou ill cases . ui of lostuii- payment of money due on a lost negotiable sealed secu- * "^ ^ lities. jjo^g Qj. other negotiable unsealed security; because no profert was necessary, and no oj'er was allowed of such securities. Courts of Equity, therefore, will not entertain a bill for relief in such a case, unless there is an offer of indemnity in the bill, constituting a ground of jurisdiction. (St. §i85, 86.) And Courts of Equity have no jurisdiction to give relief on account of the destruction of a bill of exchange, because there was always a complete remedy at Law in such cases. ( Wright V. Lord Maidstone, 1 K. & J. 701.) 4. Relief in 4. In the absence of any countervailing cases of tlie defective equity, relief will be granted by a Court of execution ^ J J o j or nou-exe- jjquity, in the case of a defective execution of a mere power (a), where it is created by an ordinary assurance, and where the defect is not of the very essence of the power, and the defective execution is in favor of a charity, or a purchaser, or a creditor, or an intended husband or a wife, or a legitimate child. And (a) See the stat. 22 & 23 Vio. c. 35, s. 12, as to the mo«le of eseoution of powers. cution of powers. ACCIDEHT. 43 the mere manifestation of an intention to J"- \ execute the power, provided it clearly ap- pears in writing, will be deemed a defective execution of the power. But Equity will not interpose in the ease of a non-execution of a mere power; for that would be depriving the donee of the right of discretion in regard to the exercise of the power. Nor will Equity support a defective execution of a power, in favor of the donee of the power, or of a husband (except in the case of an intended husband), father, or mother, or of a grandchild or more remote relation, or of a mere volunteer, except where a strict compliance with the power has been impossible, from circum- stances beyond the control of the donee; as where the prescribed witnesses could not be found; or where an interested person, having possession of the deed creating the power, has kept it from the party executing the power, so that he could not ascertain the formalities required. Nor can Equity dis- pense with the regulations prescribed where the power is created by Statute, at least where they constitute the apparent policy and object of the Statute, or with the consent of persons whose consent is required. Nor 44 ACCIDENT. Tit. I. -will an execution by an absolute deed, instead Cap. I. '' ' of hj will, be supported ; as that would be repugnant to the power; since it would not be revocable like a will. But where the power is coupled with a trust, Equity will grant relief, even in case of • the non-execution of the power ; because, in this case, the donee was under an equitable obligation to exercise it. (See, as to these propositions respecting powers, St. § 94 — 98, 169—177 ; 2 Sugd. Pow. 7th ed. 88—175 ; Toilet V. Toilet, 1 Lead. Cas. Eq. 2d ed. 184, et seq. ; Harding v. Glyn, 2 Lead. Cas. Eq. 2d ed. 789, 811 ; and Smith's Compendium of the Law of Property, 3d ed. 727—731.) (45) CHAPTER II. OF MISTAKE (fl). A MISTAKE, as remediable in Equity, may tit. i. Cap. II. be defined to be an act which would not have Definition been done, or an omission which would not of mistake. have occurred, but from ignorance, forget- fulness, inadvertence, mental incompetence, surprise, misplaced confidence, or imposi- tion. The following propositions appear to be deducible from the cases on the subject : I. Where the mistake is unilateral, and i. Mistake made by the the sufferer is the person by whom it was saflerer made, relief will not be granted, unless there is some circumstance which gives rise to a presumption that there has been some un- due influence, misrepresentation, imposition, mental imbecility, surprise, or confidence abused (see St. § 117—120, 133—135, 137, 138; Boughton v. Hutt, 3 D. & J. 501 ; Bent- ley V. Machay, 31 Beav. 143); and even where this is the case, Equity will not in- (a) See tbe stat. 22 & 23 Vio. u. 35, s. 13, as to mis- taken payments in ease of sales under povrers. 46 MISTAKE. Tit. l terfere as against a bond fide purchaser for valuable consideration, without notice. (St. § 139, and see Maxim VI. p. 21, ante.) Mistake in In regard to mistakes in matters of Law, a matter of ° '='''• it is a maxim that ignorantia legis non ex- cusat. (St. § 111—113, 116, 138, 140.) But where the mistake is one of title, arising from ignorance of a principle of Law of such constant occurrence as to be understood by the community at large, this is considered sufficient to afford such a presumption as above mentioned, so as to entitle the party to relief. (See St. § 121—125, 128, 137.) or in a mat- And in regard to mistakes in matters of ter of fact. ° fact, relief will be granted on the same pre- sumption, where the mistake is unilateral, and the fact was material to the act or con- tract, and was not doubtful from its own nature, and was a fact which would not be ascertained by such diligence or care as is usual in transactions of the like nature, and of which the other party was under a legal obligation to inform the mistaken person. (See St. § 117, 118, 140, 141, 146—148, 150, 151.) it?norance And ignorance of foreign Law is deemed ol foreign ° ° law. ignorance of fact ; because no person is pre- sumed to know foreign Law. (St. § 140.) MISTAKE. 47 But ignorance, on the part of the vendor, tit. i. of circumstances tending to enhance the ., "tt ° vendor's value of the property, of which the vendee ^ vSul''' was aware, will not form a ground for relief, where it is not a case of mutual confidence. (St. § 149.) II. Where the mistake is mutual, the ii- Mutual ' mistake. transaction will be binding; except it was founded in a mutual surprise ; or the mistake consists in supposing that the subject-matter of the contract existed, when in reality it was not in existence ; or the mistake con- sists in one party supposing that he had purchased something which the other did not intend to sell (St. § 113, 134, 142, 143, a, 144) ; or the mistake is the result of a miscalculation by the defendant's agent in favor of the defendant (Garpmael v. Powis, 10 Beav. 36); or by reason of the fact being otherwise than was supposed, there is no consideration to support the transaction ( Cochrane v. Willis, 34 Beav. 359 ; Law Eep. 1 Ch. Ap. 58) ; or both parties were under the impression that one of them was the owner of property, which, in reality, be- longed to the other (Cooper v. Phibbs, L. E. 2 Ap. Ser. (H. L.) 149). III. In the ease of a compromise of "onSsesr 48 MISTAKE. Tit. I. doubtful rights, or of rights which are con- sidered by the parties to be doubtful, if all the parties are in a state of mutual ignor- ance, or they are all acquainted with the doubts which exist in their favor, the compromise will be binding. But where one or more of them is or are not aware of the doubts existing in his or their fa- vor, while the fact that such doubts exist;'', is known to the other or others of them, the compromise will not be binding (see St. § 130, 131, 132; Lucy's Case, i D. M. & Gr. 356 ; Stapilton v. Stapitton, 3 Lead. Cas. Eq. 2d ed. 684, et seq.y, because, in that case, there is room for the presumption of surprise or confidence abused ; and the ^ very nature of the transaction made it re- quisite that all the parties should be on an equality as regards knowledge or ignorance of the doubts existing in their favor. To render a family compromise binding, there must be an honest disclosure, by each party to the other, of all such ma- terial facts known to them, relative to their rights and title, as are calculated to influ- ence the judgment in the adoption of the compromise; and any advantage taken by either of the parties of the known ignor- MISTAKE. 49 aiice of the other of such facts renders such J", i. Cap. II. compromise void in Equity. (^Smith v. Pin- come, 3 M ao. & G. 659 ; Greenwood v. Green- wood, 2 D. J. & S. 28 ; Brooke v. Lord Mostyn, 2 D. J, & S. 373.) . IV. Where by mistake an instrument iv. Correc- tion of a inter vivos is not what the parties intended, mistake in i ' a written or there js a mistake in it other than a ortn"re|ari mistake in law, or any acts necessary to *'^^'^*^- give validity to the instrument have been omitted, and the mistake is clearly made out by admissible and satisfactory evidence, or is admitted by an answer to a bill, or is evident from the nature of the case, or from the rest of the deed. Equity will rectify the mistake (St. § 152, 157, 159, 166, 168, and see Sugd. V. & P. ch. 3, sect. 1 1, pi. 2 ed. 10; Lord Glehorchy v. Bosville, and Legg v. Gold- wire, 1 Lead. Cas. Eq. 2d. ed. 1, et seq.; Meadows v. Meadows, 16 Beav. 401 ; Murray V. Parker, 19 Beav. 305; Torre v. Torre, 1 Sm. & Gif. 518; In re Morse's Settlement, 21 Beav. 174; Wright v. Goff, 22 Beav. 207; Wolterbeek v. Barrow, 23 Beav. 423; Wilson V. Wilson, 5 Ho. of Lords, 40, 52 — 7, 59, 63, 71 ; Mostyn v. Mostyn, 5 Ho. of Lords, 155; Fowler v. Fowler, 4 D. & J. 250 ; Earl of Bradford v. Earl of Bomney, 5 50 MISTAKE. (Tij- ij 30 Beav. 431 ; Garrard v. Frankel, 30 Beav. 445; Walker v. Armstrong, 8 D. M. & G. 531 ; Daniel v. Arkwright, 2 Hem. & Mil. 95 ; Earl of Malmesbury v. Countess of Mal- mesbury, 31 Beav. 407; Scholefield v. Lock- wood, No. 2, 32 Beav. 436 ; Harris v. Pep- perell, L. E. 5 Eq. Cas. 1 ; Druiff v. Lord Parker, L. E. 5 Bq. Cas. 131); except as against a bond, fide purchaser for valuable consideration, without notice (St. § 165, 2 Sp. 195), or other person having an Equity equal to that of the plaintiff (St. § 176), such as the issue in tail, or a remainder-man in tail, where there is no Equity to affect the conscience of such issue or remainder-man. (St. § 178.) But in order to enable the Court to rectify an ante-nuptial settlement by striking out a part, it must be proved that it contains something which has been inserted by mis- take, contrary to the intention of all the parties. {Booke v. Lord Kensington, 2 K. & J. 753, 764 ; Sells v. Sells, 1 Drew. & Smale, 42 ; Thompson v. Whitmore, 1 Johns. & Hem. 268 ; Elwes v. Elwes, 2 Gif 545.) And where an instrument is substantially what the parties intended, although so framed under a mistaken view of the Law, the Court MISTAKE. 51 will not rectify the mistake. (St. § 113— ^tit. i. 115.) A bond to leave or convey property has, however, been sometimes upheld in Equity as an agreement defectively exe- cuted. (St. § 136.) A husband cannot sustain a suit to have a settlement rectified where he executed it with a knowledge of its contents, though he gave notice before the marriage that he should apply to the Court to have it recti- fied. (Eaton V. Bennett, 34 Beav. 196.) The Court of Chancery will not remedy a defect or supply an omission in a deed in favor of a stranger, where there is no con- sideration, even in the plainest case, and even when it has arisen from mere mistake, and though the correction would not be inconsistent with the deed. (2 Sp. 886.) A voluntary deed cannot be reformed, ex- cept with the consent of the donor. (Phillip- son V. Kerry, 32 Beav. 628 ; Brown v. Kennedy, 33 Beav. 133, 147. But see Thompson v. Whitmore, 1 Johns. & Hem. 268.) /d 7W^^ % It should be observed, that where fhe final instrument of conveyance or settle- ment differs from the preliminary contract, that very circumstance affords of itself some ground for presuming an intentional change 52 MISTAKE, T"- 1- of purpose, unless, from some recital in it, or from some attendant circumstances, it ap- pears to have been intended to be merely in pursuance of the original contract. (St. § 160.) "When there are articles and a settlement before marriage, as a general rule the settle- ment alone can be looked to; if it is differ- ent from the articles, it must be taken as a new agreement. But if it purports to be executed in pursuance of the articles, or if there is clear and satisfactory evidence showing that the discrepancy has arisen from a mistake, the Court will reform the settlement, and make it conformable to the real intention of the parties. (2 Spence's Bq. Jur. 140 ; Bold v. Hutchinson, 5 D. M. & G. 558, 568.) If the articles are before marriage and the settlement after marriage, the articles are in effect the binding instru- ment; and if the settlement gives estates or interests different from those ■which the Coui't would give on the construction of the articles, the settlement will be reformed, as between the parties and their representa- tives and mere volunteers, but not as against a purchaser for valuable consideration, with- out notice. (2 Sp. 140, 141; Peachy on Settl. 132.) MISTAKE. 53 And as regards the admissibility of tlie tit. i evidence, it is a rule of the Common Law, independently of the Statute of Frauds, that parol evidence is not admissible to dis- annul, substantially add to, subtract from, qualify, or vary a written instrument. (See ' St. § 153, 158; and see also Sugd. V. & P. eh. 3, sect. 8, pi. 2, 33, 26, &c., and sect. 11, pi. 5, ed. 10.) But upon principle it would seem that cases of accident, mistake, and fraud, are (in many instances, at least) to be deemed, in Equity, exceptions to this rule. (St. 155, 156, 161, notes ; remarks of Sir J. Eomilly, M. E., in Murray v. Parker, 19 Beav. 308.) Y. Where an instrument is so general in its terms as to release the rights of a party to property, to which he was wholly ignorant that he had any title, and which was not within the contemplation of the bargain, the Court confines the release to what was intended to be released. (St. § 145.) VI. Equity will relieve where an instru- ment has been delivered up or cancelled, under a mistake of a party, and in ignor- ance of the facts material to the rights under it. (St. § 167.) 5* 54 MISTAKE. Tit. I. YII. Equity will also supply defects in the execution of powers, on the ground of mistake, in the cases mentioned in the prefeeding chapter under the head of Ac- cident. VIII. Equity will rectify a clear mistake or omission in a will, if it is apparent on the face of the will. But parol evidence is generally inadmissible. It is stdmitted, however, in certain cases of mistake in the name or description of a devisee or legate^ (See Jarm. on Wills, 361-3, Ed. 2; Wigram on Wills, 51; Mostyn v. Mostyn, 5 Ho. of Lords, 155; St. § 179, 180, 181 ; Doe d. Mis- cocks V. Siscocks. Tud. Lead. CaiS. Eeal Prop. 819, 2d Ed ) -Z(^ ^': ' > ^-^^ ^^ f /w/ IX. Equity will grant relief where a mis- take in a written contract is fairly presu- mable from the nature of the transaction. And hence, where there has been a joint loan to two or more obligors, and they are only made jointly liable, the Court will make the bond joint and several. (St. § 163—164; Wilson v. Wilson, 5 Ho. of Lords,. 40.) fncalfa' -^- "^^ instrument may be entirely set strumcnton aside on the ground of mistake or fraud. of iiustake. (See St. § 161 ; Phillipson v. Kerry, 82 Beav. MISTAKE. 55 628 ; Price v. Ley, 4 Gif. 235.) And a vol- ^tit. i. untary deed of gift may be ordered to be cancelled on either of those grounds, and the money ordered to bo given back to the donor. (^Lister v. Hodgson, L. E. 4 Bq. Cas. 30.) And in 'cases within the Statute of Frauds, it is an easier matter totally to avoid an agreement, than to vary it; for, in the former case, the Statute of Frauds has no influence whatever; since "it does not say that a written agreementshall bind, but that an unwritten agreement shall not bind." (Sugd. V. & P. ch. 3, s. 8, pi. 32, ed. 10.) (56 ) CHAPTER III. OF ACTUAL FRAUD. Tit. I. Cap. m. Unsafe to define fraud in general^ or the extent of remedial equity on the ground of fraud. Beiinition of actual fraud. .Jurisdiction in cases of fraud. The modes of fraud are infinite ; and " it has been said that Courts of Jlquity have, very wisely, never laid down, as a general proposition, what shall constitute fraud, or any general rule, beyond which they will not go, upon the ground of fraud, lest other means of avoiding the equity of the Courts should be found." (St. § 186.) In accord- ance with the spirit of this remark, the writer abstains from attempting to give a definition of fraud in general. It is usually and accurately divided, however, into two large classes, designated, defined, and treated of under the names of Actual Fraud and Constructive Fraud. An actual fraud may be defined to be something said, done, or omitted by a per- son with the design of perpetrating what he must have known to be a positive fraud. A Court of Equity will not entertain juris- diction to set aside a will obtained by fraud, ACTUAL FRAUD. 57 or establish a will suppressed by fraud ; for ^^-^jj in such cases, the proper remedy is exclu- sively vested in the Court of Probate. (St. § 184, and note; 1 Wms. on Executors, 5th ed. 341; 2 Steph. Cora. 202—5; Jones v. Gregory, 4 Gif. 468; 2 D. J. & S. 83.) But where the fraud does not go to the whole will, but only to some particular clause, or where the fraud is in unduly obtaining the consent of the next of kin to the probate, Courts of Equity will lay hold of these cir- cumstances to declare the executor a trustee for the next of kin. (St. § 440.) In a great variety of other cases, fraud is cognizable at Law ; as in cases of fraud in the sale of chattels personal : and in some of these cases adequate relief can be, and constantly is, obtained at Law. (St. § 184, and note.) It is a rule as well in Courts of Law as Evidence of fraud. in Courts of Equity, that fraud is not to be presumed. But, on the other hand, neither at Law nor in Equity is positive proof of fraud indispensably necessary. A Court of Equity, however, will act on a lower degree of proof than that which would be required in a Court of Law. (See St. § 190.) It would be impossible, and unnecessary 58 ACTUAL FRAUD, Tit. L jf jt -wero possible, to enumerate all the dif- feront instances in which Courts of Equity will grant relief on the ground of actual fraud. We shall only notice a few of them under these two heads : Division of I. Of frauds which receive that denomina- actual frauds. tjon from a consideration of the conduct of the guilty parties, irrespective of any pe- •culiarity in the condition of the injured par- tics. II. Of frauds which receive that denomi- nation mainly or in a great measure from a consideration of the peculiar condition of the parties upon whom they are practised. I. Firstciass I. — 1. Misrepresentation, whether by of actual frauds. word Or deed, constitutes fraud. (St. § 191, Boutation. 192; Jennings v. Broughton, 5 D. M. & G. 126; Kay V. Smith, 21 Beav. 522.) Equity will not interfere, however, if the misrepresenta- tion was in a trifling or immaterial point, or if no injury arose from it. (St. § 191, 195, 196, 203 ; Pulsford v. Bichards, 17 Beav. 96.) Por, in the first case, the evils of litigation would be far greater than the injury occa- sioned ; and, as to the second case. Courts of Equity do not profess to punish guilt, but to redress wrongs. And Equity will not interfere if the party was not misled ACTUAL FKAUD. 59 by the misrepresentation (St. § 202; Nelson cl"ni V. Stacker, 4 D. & J. 455); because, in that case, he was not injured by it. Nor will the Court interpose if the misrepresentation was vague and inconclusive (St. § 192); or if it merely amounted to the common lan- guage of puffing and commendation of things sold (St. § 291); or if it was in a matter of opinion or fact, equally open to the inquiry of both parties, and in regard to which nei- ther could be presumed to trust the other (St. § 191, 197, 198); or if the party injured may properly impute the loss to a want of ordinary care or discretion on the part of himself or his agents. (St. § 199, 200 a; but see Beynell v. Sprye, 1 D. M. & G. 656, 710;) For, the Court does not sit to redress injuries which the injured parties, by ordi- nary and proper care, could have prevented. It is no part of Equity Jurisprudence to encourage carelessness. So great, however, is the confidence which is naturally reposed by a client in his solicitor, and so important is it to guard it against abuse, that, where a solicitor induces his client to execute a deed upon false and plausible repi*esenta- tions, the Court will order the deed to be delivered up to be cancelled. (JTorley v. 60 ACTUAL FRAUD. ca'p""'!!! '^°°^^> ^ ^'^- ^^^'' Ogilvie V. Jeaffreson, 2 ''— ' Gif. 353.) Misrepresentation is a ground of relief, whetiier the party who made the assertion or intimation knew it to be false, or made it without knowing whether it was true or false. (St. § 193 ; Pulsford v. Richards, 17 Beav. 95 ; Rawlins v. Wickham, 1 Gif. 355 ; 3 D. & J. 304.) So that if a person, whether wilfully or not, makes a false representation to another, with a reasonable ground for sup- posing that he or a third person would act upon such representation, and he or such third person does act upon it, and is misled thereby, the person misleading will be made answerable for it. {Hutton v. Rossiter, 7 D. M. & G. 9, 23, 24; Slim v. Groucher, 2 Gif. 37; 1 D. P. & J. 518; Barry y. Oroskey, 2 Johns. & II. 1.) And where a person has been induced to enter into a eoutraet by a material misrepresentation of the other party, he is entitled to have the contract set aside, and not merely to have the repre- sentation made good. {Rawlins v. Wickham, 1 Gif. 355; 3 D. & J. 304; Trail v. Baring, 4 Gif 485 ; Charlesworth v. Jennings, 34 Beav. 96.) A contract induced by fraud is not void, ACTUAL FRAUD. 61 but only vaidable at the option of the party c^"jjj defrauded ; and though the party who was guilty of the fraud cannot enforce it, yet other persons may, in consequence of it, acquire interests and rights which they may enforce against the party defrauded. (^Oakes V. Turquand, L. E. 2 Ap. Ser. 325, 346.) A person cannot avail himself of what has been obtained by the fraud of another, unless he not only is innocent of the fraud, but has given some valuable consideration. (^Schole- fieU V. Templer, 4 D. & J. 433.) 2. If a person conceals facts and circum- 2. Conceal- ment, stances which he is under some legal or equitable obligation to communicate to the other, it amounts to a fraud for which Equity will grant relief. (St. § 204, 207, 215, 217 —220 ; 2 Sp. 765 ; Pulsford v. Bichards, 17 Beav. 94 — 6.) As, if a vendor sells an es- tate, knowing that he has no title to it, or that there are incumbrances on it, of which the purchaser is ignorant (St. § 208) ; or if the insured does not communicate to the underwriters all facts and circumstances which increase the risk. (St. § 216.) But a purchaser is not bound to commu- nicate his knowledge of the value of the pro- perty tp the vendor (St. § 207, note) ; for it 6 62 ACTUAL FRAUD. Tit. I. is the business of the vendor to know and Cap. III. — =- sufficiently to estimate the worth of his own property. Thus, if A., knowing that there is a mine in the land of B., of which he knows B. to be ignorant, should conceal his knowledge of the fact, and enter into a contract to purchase the estate of B. for a , price which the estate is worth without considering the mine, the contract would be good. (St. § 205.) In many cases, the maxim caveat emptor is applied; and unless there is some mis- representation or artifice to disguise the thing sold, or some warranty as to its cha- racter- or quality, the put-chaser is bound, notwithstanding there may be material in- trinsic defects in it, known to the vendor, and unknown to the purchaser. (St. § 212.) In foro conscientice, each party is bound to communicate to the other his knowledge of all material facts, not discoverable by the other, or of which he knows the other to be ignorant. For this is required by the golden ^axim, that we should do unto others as we would that they should do unto us. But if Equity were to attempt to enforce the observance of, so broad a rule, a far greater inconvenience would ensue than that ACTUAL FRAUD. 63 which is now experienced. For it would often be a matter of doubt with the party wronged, whether the other was really aware of the defect or advantage which he did not disclose. And, frequently, that could only be ascertained from his admissions or de- nials in a suit. So that, in order to de- termine this, a bill seeking relief against fraud would often be filed in total uncer- tainty as to the existence of that knowledge, which was of the very essence of the sup- posed fraud, and absolutely necessary to be proved before any ground for relief could be said to exist. And in many cases there would be the same diflSculty in ascertaining whether the defect or advantage, admitting it to be known to the one party, was or was not disclosed by him to the other. To draw a distinction which would, per- haps, give as much effect to the principle of sound morals, as would be compatible with avoiding frequent and fruitless litigation and the encouragement of carelessness and negli- gence, the true course would seem to be, to hold that Equity will grant relief, if a person does not disclose any material fact, which, from the nature of tho^case, he must have known, and which the other party could not Tit. I. Cap. hi. 3. Inade- quacy. 64 ACTUAL FRAUD. CAv'iii ^® expected to discover with the care ordi- narily used in similar transactions. 3. Mere inadequacy of price, or any other inequality in the bargain, does not constitute ty itself a ground to avoid it. (St. § 244 ; Abbot V. Sworder, 4 De G. & S. 448 ; Sar- rison v. Guest, 6 D. M.>& G. 424.) For the value of things is always fluctuating, and dependent on numberless circumstances. Besides, a man may be induced by difficul- ties or exigencies, or for other reasons, to part with his property at a particular time, for less than that for which another would have sold it. (St. § 545.) And perhaps the lowness of the price may have been the only inducement to the purchaser to make the purchase; and he may have simply apcepted the proposals of the vendor, instead of being the originator of the transaction, or of being actively concerned in negotiating it, like a man whose design is to gain a fraudulent advantage over another. Still, however, there may be such an un- conscionableness or inadequacy in the bar- gain, as to shock the conscience, and amount to conclusive evidence of imposition or some undue influence : and in such a case. Courts of Equity will interfere on the. ground of ACTUAL FRAUD. 65 fraud. And where there are other ingre- (J^-jlv dienta of a suspicious nature, gross inade- quacy must furnish the most vehement pre- sumption of fraud. (St. § 246 ; see remarks of Lord Cran worth, C, in Harrison v. Guest, 6 D. M. & G. 424.) As, if proper time for deliberation is not allowed the party inj urcd ; if he is importunately pressed ; if those in whom he placed confidence make use of strong persuasion ; if he is suddenly drawn into an act, without being fully aware of the consequences; if he is not permitted to con- sult disinterested friends or counsel, before he is called upon to act, in circumstances of sudden emergency or unexpected right and acquisition ; or if he is an illiterate person, and advantage has been taken of his neces- sities ; or if he is a person of weak under- standing. (St. § 251 ; C'ockell v. Taylor, 15 Beav. 103, 115 ; Longmate v. Ledger, 2 Gif. 157 ; Clark v. Malpas, 31 Beav. 80 ; Baker V. Monk, 33 Beav. 419.) But Equity will not relieve where the parties cannot be place'fl in statu quo. Such relief, for instance, will not be given in the case of marriage settlements; inasmuch as the Court cannot unmarry the parties. (St. § 250.) Where a purchase is set aside for inade- 6* 66 ACTUAL FRAUD. Tit. L quacy of consideration, the conveyance will be ordered to stand as a security for what has been advanced. (Longmate v. Ledger, 2 Gif 157; Douglas v. Gulverwell, 3 Gif. 251; Baker v. Monk, 33 Beav. 419.) Deeds of the nature of family arrange- ments are exempted from the rules as to the adequacy of the consideration applicable to other deeds; the consideration in such cases - being compounded partly of value and partly of natural affection; and it is not necessary that there should be any rights in dispute, in order to uphold them. (JPersse v. Persse, 7 01. & Pin. 279 ; Williams v. Williams, 2 Dr. & Sm. 378 ; L. E. 2 Oh. Ap. 294. As to deeds of this nature, see also Stapilton v. Stapilton, 2 Lead. Gas. Eq. 2d ed. 684 et seq.; Dims- dale V. Dimsdale, 3 Drew, 556, 569 — 571 ; Greenwood v. Greenwood, 2 D. J. & S. 28.) ofcoifsen'tto ^' ^^^''^ S^^^s and legacies are bestowed ainarriage. on persous, ou Condition that they shall marry with the consent of parents, guar- dians, or other confidential persons. Courts of Equity will not suffer the manifest object of the condition to be defeated by the frau- dulent, corrupt, or unconscientious refusal of the parties whose consent is required to the marriage. (St. § 257.) ACTUAL FRAUD. 67 II. "With regard to frauds which receive c^™-in. that denomination mainly or in a great mea- jj ^^^^ Bure from the consideration of the peculiar alufai' condition of the injured parties — 1. In the case of contracts or other acts, ^o°g° f®'^' however solemn, of persons who are idiots, ^in™" lunatics, or otherwise of unsound mind, wherever, from the nature of the transaction, there is not evidence of entire good faith, or it is not seen to be just in itself or for the benefit of those persons. Courts of Equity will set it aside, or make it subservient to their just rights and interests. But where there is entire good faith, and the contract or other act is for the benefit of such per- sons, as to provide them with necessaries, there Courts of Equity will uphold it, as well ap Courts of Law. (St. § 227—229 ; Manly v. Bewicke, 3 K. & J. 342.) 2. If a person, at the time of entering into 2. on in- . toxlcated a contract or doing an act, was so exces- pe^ons. sively drunk as to be deprived of the use of his understanding ; or if there was any contrivance or management to lead him to drink, or some unfair advantage taken of his intoxication, Courts of Equity will not lend their assistance to the person who obtained an agreement or deed from him, 68 ACTUAL FRAUD. Tit. I. when SO intoxicated, but will assist him in Cap. III. ' getting rid of it, on account of the fraud of the other party in obtaining such agree- ment or deed from a fterson in such a state or by such means. (See St. § 230., 231, 232.) 3. On per- 3. The Contracts and other acts of persons sons of weak ' understand- ^,}jq are of weak understanding will be held void in Equity, if the nature of such con- tracts or other acts justifies the conclusioa that the party has been imposed on, circum- vented, or overreached by cunning, arti- fice, or undue influence. (St. § 234 — 238 ; Longmate v. Ledger, 2 Gif. 157; Nottidge V. Prince, 2 Gif 246.) But to constitute undue influence, there must be either fraud or coercion by fear; and the burden of proving that the will of a person of sound mind was executed under undue influence is on the party who alleges it. {Boyse v. Bossborough, 6 H. L. 2, 33, 34, 49.) 4. On per- 4. Where a party is not a free agent, and sons who 4. ./ o J asente'^'^^^ is not cqual to protect himself, a Court of Equity will protect him. (a) Hence, Equity (a) With the most unfeigned respect and deference, the writer humbly submits that this principle ought, in accord- ance with reason and justice, to have been applied to the case of Re Metcalfe's Trusts, 2 D. J. A S. 122, the case of a professed nun. agents ACTUAL FRAUD. 69 will relieve against acts done under duress, f,^"-jjV or under the influence of threats, or of real , ^ — r ' but under or imaginary terrors, calculated to deprive f^^^^^' " ™ a person of free agency. (St. § 239 ; Boyse v. Rossborough, 6 Ho. of Lords, 2, 49 ; Williams •v.Bayley, L. R 1 Ap. Ser. 200.) And it watches with the utmost jealousy all con- tracts made by a person while under ira- or in prison, prisonmentj and if there is the slightest ground to suspect oppression or imposition, it will set the contract aside. And, in like manner, circumstances of extreme necessity or extreme ' •' necessity. and distress may so entirely overpower free agency, as to justify the Court in setting aside a contract on account of some op- pression or fraudulent advantage attendant on it. (St. § 239.) 5. Infants may, even at Law, bind them- 5. onin- selves in some cases, by contracts for neces- saries suitable to their degree and quality, or by acts which the law requires them to do. But, in general, where a contract may be either for the benefit or to the prejudice of an infant, he may avoid it, as well at Law as in Equity. Where it can never be for his benefit it is utterly void (a). {a) Smith's Manual of Common Law, 3d Ei. 57, 58, St. § 240, 241. 70 ACTUAL FRAUD. Tit. I. It may here be observed that when one Cap. hi. ■' „ — - of two innocent persons must suffer by the Case wbere ^ ■' iniiocenT" fraud of a third person, that person shall be «St"uffer. t^'® sufferer, who, by his conduct, however innocently, put it in the power of the third person to commit the fraud. (Adselts v. Biver, 33 Beav. 52.) (71) CHAPTEE IV. OF CONSTRUCTIVE FRAUD. Constructive frauds are acts, statements, tit. i. ' ' Cap. IV. or omissions, which operate as virtual frauds „ rrr on individuals, or, if generally permitted, would be prejudicial to the public welfare, ■ and are not clearly resolvable into mere accident or mistake, and yet may have been unconnected with any selfish or evil design^ or may amount, in the opinion of the person chargeable therewith, to nothing more than what is justifiable or allowable. The cases which will be noticed in the Four classes of construc- present Chapter, may be arranged in four *'™ frauds: classes. I. Eelief is granted, on the ground of con- 1. Fraudson structive fraud upon public policy, against policy- agreements, provisions, and transactions, which, although they may not operate as frauds upon individuals, would, if generally permitted, be prejudicial to the welfare of the community. _Thus, 1. Marriage brokage contracts, which are 72 CONSTRUCTIVE FRAUD. Tit. I. Cap. IV. 1. Marriage brokagc contracts. 2. Agree- ments to iutluence testators. 8. Contracts to facilitate marriages. agreements whereby a party engages to give another a remuneration, if he will negotiate a marriage for him, are void, as tending to introduce matches which are ill-advised, and not based on mutual affection, and therefore against public policy. And they are so ut- terly void, that they are deemed incapable of confirmation; and money paid under them may be recovered back again, in a Court of Equity, whether the marriage is an equal or an unequal one. (St. § 260 — 263; 2 Lead. Cas. Eq. 2d ed. 178 et seq.) 2. The same rules are applied to bonds and other agreements entered into as a re- ward for using influence over another, to induce him to make a will for the benefit of the obligor (St. § 265) ; for such con- tracts encourage a spirit of artifice and scheming, most prejudicial to the moral tone of those in whom it exists; and they tend to deceive and injure others. 3. On a similar ground, secret contracts made with parents, or guardians, or other j)erson8 standing in a peculiar relation to one of the parties whereby, on a treaty of marriage, they are to receive a remuneration for promoting the marriage or giving their CONSTRUCTIVE FEAUD. 73 consent to it, are held void. fSt. S 266, 267 ; J"- ^v 2 Lead. Gas. Eq. 2d ed. 178 et seq.) 4. On the other hand, a contract is void, 4. Contracts or condi- if it is expressly in restraint of marriage tio^s in. '^ •' " restraint of' generally, or if it is so restricted that it is marriage. probable that it may virtually operate in restraint of marriage generally (see St. § 274, 276—283; Scott v. Tyler, 2 Lead. Gas. Eq. 2d ed. 105, 19S et seq.): as, that a woman shall not marry a man who has not an estate of 500Z. a year (St. § 280), or shall not marry till 50 years of age, or shall not marry any person residing in the same town, or any person who is a clergyman, a physician, or a lawyer, or any person except of a particular trade or occupation (St. § 283) (a). 5. So. contracts and conditions in general 5. contracts ° or condi- restraint of trade are void, as tending to *e™rilnt discourage industry, enterprise, and just »'*™*^- competition. But a person may be re- strained from carrying on trade in or within a certain distance from a particular place, or with particular persons, or for a reasonable (a) As to conditions, conditional limitations, and spe- cial limitations in restraint of marriage, see the writer's "Compendium of the Law of Real and Personal Prop- erty," 3d ed., pp. 79—96 ; 2 Lead. Cas. Eq. 2d ed. 178 et sej. 7 74 CONSTRUCTIVE FRAUD. Ca"'iv I'l^itcd time. And a person may lawfully ■ — sell a secret in his trade or business, and restrict himself from using the secret. (St. § 292; Benwell v. Inns, 24 Beav. 307; Sarnies V. Parsons, 32 Beav. 328.) reSfo"n to ^- Where, pending a bill in Parliament, Parliament. ^^^ agreement is entered into to produce a false impression, or to mislead or suppress inquiry, or to withdraw public opposition thereto, it will be held void as a fraud upon Parliament, as well as upon the public at large. (St. § 293 a.) for'pubiio'^ 7. Contracts for the buying, selling, or offices. procuring of public offices are void, as tend- ing to introduce into public offices persons who are unfit for them in respect of char- acter and other qualifications. (St. § 294, 295.) *: Sup^res- g. go are agreements for the suppression '■""eedings. °^ Criminal prosecutions (St. § 294), as tend- SlOll crir proi ing to weaken the beneficial preventive in- fluence of the law, by diminishing the cer- tainty of punishment, t' aud^o^"^ ^' ^° ^^^ contracts which have a tendency erations'!'**" to encouragc champerty (St. § 294; Heynell V. Sprye, 1 D. M. & G. 600), and agreements, bonds, and securities founded on corrupt considerations, that is, on the commission CONSTRUCTIVE FRAUD. 75 of what is contrary to the moral or muni- f?'",^ eipal Law, or on the evasion thereof. (St. § 294 — 297.) And where contracts are in- tended to carry out an immoral purpose (as in the case of a house let for a brothel), everj though that purpose do not appear on the face of the instrument, none of the stipula- tions comprised therein will be enforced. {Smith V. White, L. E. 1 Eq. Cas. 626.) Wherever any contract or conveyance is pisUnotion •^ •' between void, either by a positive Law or upon prin- voldaWe ciples of public policy, it is deemed iricapa- as"'?ega'as°' bio of confirmation ; it being a maxim, Quod tion. ab initio non valet, in tractu temporis non con- valescit. But where it is merely voidable, or turns upon circumstances of undue ad- vantage, surprise, or imposition, there, if it is deliberately and upon full examination confirmed by the parties, it will be valid. (St. § 306.) II. Where a reasonable confidence is re- ?i- Frauds ID the case posed in another person, or a peculiar influ- ?' fhe^™^. ence is possessed by him in consequence of j^iauons standing in a confidential relation, arid he ° ~ makes use of that confidence or that influ- ence to obtain an advantage to himself at the expense of the party confiding in him or under his influence, he will not be per- 76 CONSTEUCTIVE FRAUD. Tit. I. Cap. IV. 1. Parent or person stan^ng in loco parentis, or relative having in- fluence. mitted to retain any such advantage, how- ever unimpeachable the transaction would have been, if no such confidence had been reposed, or no sach confidential relation had existed, (ffuguenin v. Baseley, 2 Lead. Cas. ■ Eq. 2d ed. 462 et seq. ; Sharp v. I/each, 31 Beav. 491 ; Brown v. Kennedy, 33 Beav. 133; see also Uliodes v. Bate, L. E. 1 Ch. Ap. 252; Tate V. Williamson, L. E. 1 Eq. Cas. 528; 2 Ch. Ap. 55.) Thus, 1. Contracts and conveyances whereby benefits are secured by children to their parents or to persons who stand in loco pa- rentuni, or dispositions made by young per- sona in favor of their relatives who have an influence over them, if not entered into with scrupulous good faith, and reasonable, under the circumstances, will be set aside, unless third persons have acquired an inter- est under them. (St. § 309; Soghton v. Hoghton, 15 Beav. 278; Espey v. Lake, 10 Hare, 260 ; Wright v. Vanderplank, 2 K. & J. 1 ; 8 D. M. & G. 133 ; Dimsdale v. Dimsdale, 8 Drew. 555, 557, 577; Baker v. Bradley, 7 D. M. & G. 597, 620; Potts v. Surr, 34 Beav. 542; Berdoe v. Dawson, 34 Beav. 603; Sercombe v. Sanders, 34 Beav. 382; Cham- bers V. Crabbe, 34 Beav. 457.) And where CONSTRUCTIVE FRAUD. 77 a child, recently after attaining majority, ^''"'•j^ makes over property to the father without consideration, or for an inadequate consider- ation, Equity will require the father to be able to show that the child was really a free agent, and had adequate and independent advice. {Savery v. King, 5 Ho. of Lords, 627, 655 ; Bury v. Oppenheim, 26 Beav. 594 ; Davies V. Davies, 4 Gif. 417.) And if an estate held in trust for a father for life, the remainder to his so^ in fee, is sold by the father and son immediately on the son coming of age, and the whole purchase-money is paid to the father, there, if the assistance of the Court is required by the purchaser' to complete the transaction, its straightforwardness must be proved. {Hannah v. JSodgson, 30 Beav. 19.) 2. During the existence of guardianship, 2. Guardian, the relative situation of the parties occasions a general inability to deal with each other. And Courts of Equity will not permit trans- actions between guardians and wards to stand, even when they have occurred after the minority has ceased, if the intermediate period is short ; especially if all the duties attached to the office have not ceased, or if the estate still remains in some sort under the control of the guardian ; unless the eir- 7* 78 CONSTRUCTIVE FRAUD. Tit. I. cumstances demonstrate the fullest deliber- Cap. IV. ation on the part of the ward, and the most absolute good faith on the part of the guar- dian. (St. § 317—320; Wright v. Vander- plank, 2 K. & J. 1.) But when the guardianship has entirely ceased, and a fair and full settlement of all transactions growing out of it has been made, and a suflScient time has intervened to allow the ward to feel completely inde- pendent of the guardian ; there is then no objection even to a bounty being conferred upon the latter. (St. § 320.) 3. Quasi 3. The same principles are applied to per- guardiaDS, '■ ^ ^ '■ ^ or mSters ^'^^^ Standing in the relation of quasi guar- oi reUgion. (jj^ns. Or confidential advisers, or ministers of religion {Nottidge v. Prince, 2 Gif. 246), and to every case where influence is ac- quired and abused, where confidence is reposed and betrayed. (Smith v. Kay, 7 Ho, of Lords, 751, 771, 778—9; Brown v. Kennedy, 33 Beav. 133 ; St. § 319.) i. soUcitore. 4. A solicitor is not incapable of contract- ing with his client; but, as the relation must » -give rise to great confidence in the solicitor, or to very strong influence over the client, the relation must be dissolved before the contract, or the whole onus of proving the CONSTETJCTIVE FRAUD. 79 fairness and propriety of the transaction will ^^- ^^ be thrown on the solicitor, or he must show that the client had suflBcient advice and assistance to relieve him from the pressure arising from the relation of solicitor and client, and that he has taken no advantage of his professional position, but that he has done as much to protect the client's interest as he would have done in the case of the client dealing with a stranger. (Sugd. Con- cise View, 548 ; Story's Bq. Jur. § 310—313; Holman v. Loynes, 4 D. M. & G. 270; Tom- son V. Judge, 3 Drewry, 306 ; Savery v. King, 5 H. L. Cas. 627, 655—6 ; Waters v. Thorn, 22 Beav. 547 ; Spencer v. Topham, lb. 578 ; Cowdry v. Day, 1 Gif 316; Gresley v. Mous- ley, 1 Gif. 450 ; 4 D. & J. 78 ; Pearson v. Ben- son, 28 Beav. 598 ; Gibhs v. Daniel, 4 Gif 1.) And a solicitor who is an agent for a sale cannot become the purchaser without fully explaining to the parties interested all the circumstances of the sale and of the value of the property; because his duty and his interest are in conflict. (In re Bloyes' Trust, 1 Mae. & G. 494, 497.) And if a solicitor can show that he is entitled to purchase, yet if, instead of openly purchasing he pur- chases in the name of a trustee or agent. 80 CONSTRUCTIVE FKAUD. Tit. I. without disclosing the fact, no such pur- cap. rv. o ' i chase can stand. {Lewis v. Millman, 3 H. L. Cas. 630.) As a general rule, a solicitor shall not ac- cept a gift, or, in any way whatever, in respect of the subject of any transaction between him and his client, make a gain to himself at the expense of his client, beyond the amount of the just and fair professional remuneration to which he is entitled. (4 Cruise T. 32, c. 26, § 35 ; Story's Eq. Jur. § 312; Moss v. Bainbrigge, 18 Beav. 478; 6 D. M. & G. 292 ; Tomson v. Judge, 3 Drewry, 306 ; Re Holme's Estate, 3 Gif 337 ; Nanney V. Williams, 22 Beav. 452 ; Walker v. Smith, 29 Beav. 394; Bank of London v. Tyrrell, and Tyrrell Y. Bank of London, 27 Beav. 273; 10 H. L. Cas. 26 ; O'Brien v. Lewis, 4 Gif. 221.) On the above principle, an agreement on the part of a client to allow a solicitor a commission of so much per cent, on a fund in court, as a remuneration for recovering the fund or employing another solicitor to recover it, is void, as contrary to the policy of the law. {Strange v. Brennon, 15 Sim. 346.) And an agreement by a client to allow his solicitor interest on his bill of costs, cannot be maintained — at all events, not un- ' CONSTRUCTIVE FRAUD. 81 less the solicitor informed the client that ^it. i. Cap. IV. the law allowed no such charge, or the client acquiesced; after the termination of the rela- tion, and after proper advice upon the sub- ject. (Jjyddon v. Moss^ 4 D. & J. 104.) But a deed executed by a client in favor of his solicitor, if voidable, may be confirmed by the will of the client. {Stump v. Gahy, 2 D. M. & G. 633. But see Waters v. Thorn, 22 Beav. 547, 559.) An agreement between a solicitor and client, that a gross sum shall be paid for costs for business already done is valid. But an agreement to pay a gross sum for busi- ness hereafter to be done, is void. And if a solicitor takes a gross sum for his services, without an account, he should preserve evi- dence of the fairness of the agreement, and that the client had good advice, or had full opportunity and capacity to judge for him- self {In re Newman, 30 Beav. 196 ; Morgan V. Eiggins, 1 Gif 277.) 5. Similar principles apply to a medical 5. Doctor, adviser and his patient. (St. § 815.) 6. An agent will not be permitted to reap 6. Agent. any advantage by becoming secret vendor or purchaser of property which he is authorized to buy or sell for his principal. (St. § 315.) 82 CONSTRUCTIVE FRAUD.- ca"'iv ^'^ ^^^^ '^ ^" agent sells his own property to his principal, as the property of another, "without disclosing the fact, or if an agentpur- chases the goods of his principal in another name, however fair the transaction may be, the principal may either repudiate it, or may claim any profit made by the agent; in order to deter agents from placing themselves in a state of temptation to benefit themselves, rather than their employers. And if an agent employed to purchase for another purchases for himself, he will be considered as the trustee of his employer. (St. § 316 ; 1211 a; Bentley v. Craven, 18 Beav. 75; Bank of London v. Tyrrell, 27 Beav. 273 ; Tyrrell v. Bank of London, 10 Ho. of Lords, 26; TFen<«;ortA V. ifoyd, 32 Beav. 467.) And in all transactions directly and openly en- tered into between principal and agent, the utmost good faith is required ; so that the agent must not conceal any facts within his knowledge which might influence the judgment of his principal as to the price or value. (St. § 315, 316 a; see Dally v. Won- ham, 33 Beav. 154.) 7. Trustees. 7. To guard against the danger of any advantage being taken by a trustee, and to remove all temptation from him, he is never CONSTRUCTIVE FRAUD. 83 permitted to obtain any profit or advantage (J"-jy to himself in managing the concerns of his cestui que trust, but whatever benefits or profits are obtained will belong to the cestui que trust. And he is not allowed to partake of the bounty of the party for whom he acts, except under circumstances which would make the same valid if it were a case of guardianship. (St. § 321, 322; see infra Tit. II. c. VI. div. I v., and c. VII. div. XII.) A trustee cannot purchase the trust estate from himself or from his co-trustee. And if a purchase is made of the trust estate by the trustee from his cestui que trust, although at a public auction, unless there has been no fraud, concealment, or advantage on the part of the trustee, and no want of protection and security on the part of the cestui que trust, the cestui que trust may require a re-convey- ance or a re-sale ; and, if the re-sale produces more than the trustee gave, the cestui que trust may repudiate the first sale, and adopt the re-sale; if less, ho may aflSrm the first sale. (Sugd. V. & P. 14th ed. 69, 691—4; Lewin on Trusts, 4th ed. 335—342. St. § 322 ; 2 Sp. 943 — 4 ; Smedley v. Varley, 23 Beav. 358; Denton y. Donner, Id. 285; 1 Lead. Cas. Eq. 2d ed. 139.) 84 CONSTRUCTIVE FRAUD. XlT. I. Cap. IV. 8. Counsel agents, commis- sioners of bankrupts, assignees and solici- tors of a bankrupt or insolvent, auctioneers, and cred- itors. 9. Executor or adminis- trator. 10. Debtor, creditor, and surety. 8. In order to prevent the temptation of availing themselves of information for their own benefit, and concealing it from those for whom they act, the same restriction on the right of purchase applies to other persons standing in similar confidential situations; as to counsel, agents, commissioners of bank- rupts, assignees and solicitors of a bank- rupt's or insolvent's estate, auctioneers, and creditors, who have been consulted as to the sale. (St. § 322 ; 2 Sp. 943 ; Pooley v. Quilter, 2 D. & J. 327.) 9. And it may be laid down as a general rule with regard to executors or administra- tors, that they will not be permitted, under any circumstances, to derive a benefit from the manner in which they transact the busi- ness of their ofiice. (St. § 322 ; Robinson v. Pett, 2 Lead. Oas. Eq. 2d ed. 206 et seq.') 10. Entire good faith is required between debtor and creditor and sureties. And if a creditor does any act afi'ecting the surety, or if he omits to do any act of duty which he is required to do by the surety, or is bound to do, and that act or omission may prove injurious to the surety, or if a creditor enters into any stipulations with the debtor, unknown to the surety, and inconsistent with the terms of CONSTRUCTIVE FRAUD. 85 the original contract, the surety may set Q^'h up such contract as a defence to any suit brought against him, in a Court of Law or Equity. So that if a creditor stipulates with his debtor, in a binding manner, upon a suf- ficient consideration, to give further time for payment, without the consent of the surety, the latter will be thereby discharged if the arrangement might be injurious to him. (St. § 334, 325, 326, 883, 883 a, note ; Jtees V. Berrington, 2 Lead. Gas. Eq. 2d ed. 814 et seq. ; Tucker v. Laing, 2 K. & J. 745 ; Blest V. Brown, 3 Gif. 450 ; Eange v. Fooks, 4 Gif. 408.) But a conditional agreement for further time does not discharge the surety, when, from the agreement not being per- formed, the agreement does not become binding. (St. § 883 a, note.) It has been repeatedly held (but contrary to principle, as the writer submits), that the giving of time does not discharge the surety, if it is agreed between the creditor and the princi- pal debtor, when further time is given, that the surety shall not be thereby discharged. ( Webb V. Hewitt, 1 K. & J. 442; Wyke v. Ro- gers, 1 D. M. & G. 408.) Mere delay on the part of the creditor, at least if some other Equity does not intervene, unaccompanied 8 00 CONSTRUCTIVE FRAUD. Cap' IV ^'*'^ ^^y valid contract for such delay, will not amount to laches, so as to discharge the surety ; for the creditor is under no obliga- tion to press the principal for payment. (St. § 326; Tucker v. Zaing, 2 K. & J. 745.) But the sureties are entitled to come into a Court of Equity, after a debt has become duq, to compel the debtor to exonerate them from their liability by paying the debt. (St. § 327, 369.) III. Frauds III. Eelief will be granted in favor of in case of persons those classes of persons, of whom, from peculiarly ■*■ ' ' imposed oo. their peculiar circumstances, irrespective of any mental incapacity, undue advantage may readily be taken, even where the trans- action could not be imjjeached if entered into by parties otherwise situated. {Earl of Chesterfield v. Janssen, 1 Lead. Gas. Bq. 2d ed. 428 et seq.) Thus, r. Bargains 1. Bargains with expectant heirs will be with expec- tant beira, set aside, unless the purchaser on whom the onus probandi rests can show that a full consideration was paid, or that the bargain was fully made known to and approved by the person to whose estate the expectant heir hoped to succeed; because it is the policy of Equity to prevent designing men from taking advantage of persons whose CONSTRUCTIVE FRAUD. 87 interests are future, and therefore apt to be (J"-jy under-estimated or improvidently disposed of,especially by the necessitous, the thought- less, and the young j and it is also the object of Equity to discourage transactions by which the intentions of the ancestor or other person from whom the property was expected are disappointed, and, by cutting off relief at the hands of strangers, to oblige the heir to disclose his difBculties at home. (See St. § 334—340, 343.) If the heir, after being relieved from his necessities, absolutely and deliberately, and on full information as to his right of setting aside the bargain, confirms the transaction, or does any act by which the rights or property of the other party are injuriously affected, he will not be allowed to repudiate the bargain. (St. § 345, 346.) The repeal of the usury laws has not al- tered the rules of the Court as to dealings with expectants. {Groft v. Graham, 2 D. J. & S. 155.) The same relief was afforded to remainder- and remain- der-men men and reversioners, unless the purchaser andrevcr- could show that a full consideration was paid or that the bargain was fully made known to and '.ipproved by their parents or other per- 88 CONSTRUCTIVE FRAUD. Tit. I. sons Btaxiding in loco parentis, who had the means of obviating the necessity of such an alienation of their future interests. (St. § 334—340; Salter v. Bradshaw, 26 Beav. 161 ; St. Albyn.Y. Harding, 27 Beav. 11; Tal- bot V. Staniforth, 1 Johns. & H. 484; Foster V. Roberts, 29 Beav. 467; Jones v. Bicketts, 31 Beav. 130 ; Sharp v. Leach, 31 Beav. 491 ; Nesbitt V. Berridge, 32 Beav. 282 ; Bally v. Wonham, 33 Beav. 154, 162 ; Perfect v. JJane, 3 D. F. & J. 369.) This doctrine applied to a charge as Well as a sale, and notwithstand- ing the expectant was of mature age, and fully understood the nature of the transac- tion. And it was not necessary to show that he was in pecuniary distress; for that would be assumed. (Bromley v. Smith, 26 Beav. 644; Tynte v. Bodge, 2 Hem. & Mil. 287.) By the stat. 31 Vict. c. 4, it is enagted that "No purchase, made bond fide and without fraud or unfair dealing, of any reversionary interest in real or personal estate shall here- after be opened or set aside merely on the ground of undervalue'' (s. 1); and that the word 'purchase' in this Act shall include every kind of contract, conveyance, or as- signment under or by which any beneficial interest in any kind of property may be CONSTRUCTIVE FRAUD. 89 acquired (a. 2); and that this Act shall ^J^^y come into operation on the first day of January, one thousand eight hundred and sixty-eight, and shall not apply to any purchase concerning which any suit shall be then depending (s. 3). 2. On similar principles post-obit bonds ^ ^S^'^?''" and other securities of the like nature are p pp^'^ set aside, when made by heirs and other expectants. A post-obit bond is an agree- ment made, on the receipt of money by the obligor, to pay a sum exceeding the sum so received and the ordinary interest thereof, on the death of the person upon whose decease he expects to become entitled to some prop- erty. (St. § 342.) Even the sale of a post- obit bond at a public auction will not give it validity, unless the sale was free, fair, and with the usual precautions and advertise- ments. (St. § 847.) If, however, these con- tracts are perfectly fair in other respects, relief will not be granted, except upon the terms of paying that to which the lender is equitably entitled. (St. § 344.) 3. Where tradesmen and others have sold 3. Saies to expectants goods to younar and expectant heirs, at cxor- at oxorw- b •> o L taut prices. bitant prices, and under circumstances in- dicative of imposition, oi' of undue influence, 8* 90 CONSTRUCTIVE FRAUD. Tit. I. Cap. IV. 4. Common sailors. or of an intention to connive at profuse ex- penditure, unknown to their parents or other persons standing in loco parentis, Equity has cut down the claim to a just amount. (St. § 348.) 4. Common sailors, being so extremely generous, credulous, and improvident a class of men that they require guardianship all their lives, Equity treats them in the same light as young expectant heirs ; and relief is generally afforded against contracts respecting their prize-money or wages, wher- ever any inequality appears in the bargain, or any undue advantage has been taken. (St. § 332.) 6. nisposi- 5. Where a person shortly after obtaining person after hjg maioritv, makes a arift, sale, or lease, in majority. .j ./ / o ^ ' ' favor of a relative, it will be set aside, unless the grantor or lessor makes it intentionally and deliberately, after having had the fullest information on the subject, and separate, in- dependent, and disinterested advice; even though the terms, in the case of a sale or lease, were fair, but yet not so advantageous as might have been obtained. (^Grosvenor v. Sherratt, 28 Beav. 659.) fKt'uIs'on"^ IV. "Where something is said or done, or individuals, gome omission is made, which operates as a CONSTRUCTIVE FRAUD. 91 virtual fraud upon an individual, but may ^pj^ have been nothina; more than mere neglect, . — :. o o J irrespective unconnected with any selfish or evil design, fli™t^ai°re- or may amount, in the opinion of the party, an'yMcuHar to nothing more than justifiable artifice, or imposiLn. to a fair attempt to obtain a reasonable ad- vantage, or to an allowable act, statement, or omission, of some other kind, relief will be granted on the ground of constructive fraud. Thus, 1. Where a person by some act, state- i. Mislead- ing. ment, or omission, whether beneficially to himself or not, knowingly produces a false impression on another, who is misled and injured thereby; and such act, statement, or omission, when rightly considered, is con- trary to plain moral duty or good faith, but yet may not have been connected with any design, either to injure another or to benefit the person who is guilty thereof, in such case the latter alone, even though an infant or married woman, shall sufier thereby, on the ground of constructive fraud. (See St. § 384 — 390 ; 2 Sp. 57.5, 576, and see p. 56, supra.) As where a person, knowing himself to be the owner of property, permits another to sell it as his own to a third person, who purchases under the supposition that the 92 CONSTKUCTIVE FRAUD. cl"iv vendor has a good title, the real owner will not be allowed to assert his title to it. (St. § 385, 389.) And where a person, aware of the existence of an instrument under which he might reasonably have supposed that he took some interest, neglects to make proper inquiries as to the fact, and encourages a stranger to deal with another person re- specting property in which he himself is interested under such instrument, he will be bound by the transaction. (See St. § 387.) And where a person becomes a trus- tee of money for several creditors, and at the date of the trust deed he had a charge on the share of one of them, but it is not mentioned in the deed, he will be post- poned to another person who had a sub- sequent charge on that share, and had no notice of the trustee's charge, but gave him due notice of his own charge. (^Commis- sioners of Public Works v. Harby, 23 -'Beav. 508.) And where a person grants a lease, on the security of which money is lent, and the lessor, before the lease was granted, was asked by the lender whether ho intended to grant such lease, and he answered in the affirmative, forgetting that he had previously granted another lease to the same'peraon, -CONSTBUCTIVE FRAUD. 93 who had assigned it for value, the lessor was tit. r. °. ' Cap. IV. held liable for the loss arising from the in- validity of the security. {Slim v. Croucher, 1 D. F. & J. 518.) 2. Agreements whereby persons agree not 2. Frauds - , on auctions. to bid against each other at an auction, especially where the same is directed or required by Law, are held void. For, such agreements may cause the property to be sold at an undervalue, and thereby injure the person interested in the proceeds of sale ; and they have a tendency to prejudice the character and value of auctions in general. (See St. § 293.) On the other hand, if under- bidders or puffers are employed at an auction to enhance the price, and other bidders are thereby misled, the sale will be void. (St. § 293.) 3. As the Statute of Frauds was designed 3. Uncon- scientious as a protection against fraud, it will never use of the '^ ° ' statute of be allowed to set up as a protection and Frauds, support of fraud. (^Lincoln v. Wright, 4 D. & J. 16.) And hence, where, from any cir- cumstances which may have resulted from fraud, a contract has not been reduced into writing as it ought to have been, it will be enforced against the party who is chargeable with the omission, in case he attempts to 94 CONSTRUCTIVE FRAUD. Tit. I. shelter himself behind the provisions of the Cap. IV. ^ Statute. (See St. § 330.) desune" ^- ^^ Clandestine marriage contracts are ran"S. designed to impose on parents or persons standing in loco parentis or in some other peculiar relation to the parties, so as to disappoint their bounty, or to defeat their intentions in the disposition of their prop- erty, such contracts will be set aside, or the equities will be held the same as if they had not been entered into. (See St. § 275.) 6. Frauds on 5, go, relief will be granted to the iniured marriages. ' ^ •* parties, where persons, after doing acts re- quired to be done on a treaty of marriage, render those acts virtually unavailing, by entering into other secret agreements, or derogate from those acts, or otherwise com- mit a fraud upon a marriage. (See St. § 268 — 272.) As where a parent declines to consent to a marriage, on account of the intended husband being in debt, and the brother of the latter gives a bond for the debts, to procure such consent ; and the intended husband then gives a secret coun- ter-bond to his brother, to indemnify him against the first bond. (St. § 269.) So where a brother, on the marriage of his sister, let her have a sum of money pri- CONSTRUCTIVE FKAUD. 95 vately, that her fortune might appear to be J^'^-h as much as was insisted on, and the sister gave a bond to the brother to secure the re-payment thereof, the bond was set aside. (St. § 270.) So where upon a treaty of mar- riage, a creditor of the intended husband con- cealed his own debt, and misrepresented to the wife's father the amount of the husband's debts, the transaction was treated as a fraud upon the marriage, and the creditor was prevented from enforcing his debt. (St. § 271.) And where a father, on the mar- riage of his daughter, enters into a covenant, that on his death he will leave her a full and equal -share of all his personal estate, he cannot afterwards transfer a portion of his personal property to another child, retaining the annual income thereof for his life. (St. § 382.) 6. Eelief will also be granted against acts e. Frauds .on marital secretly done by a woman m contravention rightsores pectations. of the marital rights, or in disappointment of the just expectations of her intended husband. As where a woman, in contem- plation of marriage, and without the privity of her intended husband, makes a settle- ment to her separate use, or a conveyance in favor of persons for whom she is under 96 CONSTRUCTIVE FRAUD. ca'/iv "'^ moral obligation to provide. But a rea- ' sonable provision for her children by a former marriage, under circumstances of good fiaith, is free from objection. (St. § 273; 2 Sp. 505; Countess of Strathmore v. Bowes, 1 Lead. Cas. Bq. 2d ed. 325 et seq. ; Prideaux v. Lonsdale, 4 Gif. 159, 1 D. J. & S. 433; Downes v. Jennings, 32 Beav. 290.) under'the '7- It has been determined, that by the c. 5.' "'' Common Law and the Statute 13 Eliz. c. 5, if a person makes a conveyance of any prop- erty which is liable to the payment of debts (unless it is for valuable consideration and bond fide, to a person who has no notice of a fraudulent intent), and at the time, or immediately afterwards, he is indebted to such an amount that he has not ample means exclusive of that property, available to pay the debts, such conveyance is fraudu- lent and void as against the creditors, to the extent to which it may be necessary to apply the property conveyed in payment of the debts. (See St. § 352—374, 381; 2 Sp. 887; Ellison v. Ellison, 1 Lead. Cas. Eq. 2d ed. 199 et seq. ; Scarf v. Soulby, 1 Mac. & Gord. 364; Be Magawley's Trust, 5 De Gex & Sm. 1; Barton v. Vanheythusen, 11 Hare, 126 ; Bott V. Smith, 21 Beav. 511 ; Denning CONSTRUCTIVE FRAUD. 97 «r. Ware, 22 Beav. 184; Strong v. Strong, 18 jTy/^ Beav. 408 ; Holmes v. Penney, 3 K. & J. 90 ; French v. French, 6 D. M. & G. 95 ; Turnley V. Hooper, 3 Sm. & G. 349 ; TFaJ-dew ^ Jones, 23 Beav. 487, 2 D. & J. 76; Thompson v. FeSsfer, 4 Drew. 628, 4 D. & J. 600 ; Acra- man v. Corbett, 1 Johns. & Hem. 410 ; Bar- ling V. Bishopp, 29 Beav. 417; Stohoe v. Cowan, 29 Beav. 637 ; Smith v. Cherrill, L. E. 4 Eq. Gas. 890.) 8. If a creditor who is a party to as. Frauds on creditors. composition deed, has, unknown to the other creditors, obtained any benefit or security, either from the debtor or a third person, beyond what the others have re- ceived, or enters into a contract with the debtor which prevents him from being put into that situation of freedom from existing demands, which may be considered as one of the chief inducements to the others to sign the deed, it is a fraud on the policy of the law; and such secret arrangements are entirely void, even as against the assenting debtor, or his sureties, or his friends ; and money paid under them may be recovered back. (See St. § 378, 379; 2 Sp. 357— 360.) So an agreement between an insolvent 9 98 CONSTKTJCTIVE FKAUD. ca"iv ''°'^*^°^ ^'^^ ^^^ assignee, by which the estate of the insolvent is to be held in trust, to pay certain annuities to the insolvent, and to apply the surplus to the extinction of a debt to the assignee, -will be rescinded, even at the instance of the insolvent himself. (St. § 380.) And it was held to be a fraud for a creditor secretly to obtain a larger div- idend than was received by the other cred- itors, under the arrangement clause in the Bankrupt Act of 1849 (s. 230); and relief was granted even at the instance of the debtor.. {Mare v. Sandford, 1 Gif. 228.) 9. Mortgage 9. Where a person takes a mortgage or a or convey- ^ o i^ aricewith conveyance, with full notice of the legal or tiUB.''^'* equitable title of other persons to the same property, his own title will be postponed and made subservient to their title (St. § 395, 396 ; Le Neve v. Le Neve, 2 Lead. Cas. Bq. 2d ed. 23 et seq.; Atterhury v. Wallis, 8 D. M. & G. 454), except in cases within the Stat. 27 Eliz. e. 4. (See p. 102, infra.) Thus, if a person takes a mortgage of property, knowing that it was subject to an equitable mortgage made by deposit of the title-deeds, the notice of the equitable mort- gage will raise a trust in him to the amount of the equitable mortgage. (St. § 395.) CONSTRUCTIVE FRAUD. 99 Notice is attended with the same conse- c^"iv • queiice even where the property lies in a register county. For, the object of the Registration Acts being only to secure sub- sequent purchasers and mortgagees against prior secret conveyances and incumbrances, if a subsequent purchaser or mortgagee has notice, at the time of his purchase or mort- gage, of any prior unregistered conveyance or mortgage, he will not be permitted to avail himself of his title against the prior convej'ance or mortgage, any more than he would if the same were registered. (St. § 397 ; 2 Sp. 763.) Notice may be either actual, or construc- tive, i. e., imputed by construction of law. (2 Sp. 754.) Actual notice, to constitute a binding notice, at least where it depends on oral communication only, must be given by a person interested in the property, and in the course of the treaty. (2 Sp. 753.) As regards constructive notice, whatever is sufficient to put any person of ordinary prudence on inquiry, is constructive notice of everything to which that inquiry might have led. (2 Sp. 755—760; Ogilvie v. Jeaffreson, 2 Gif 353, 378 ; Leigh v. Lloyd, 2 D. J. & S. 330; Broadbent v. Barlow, 3 D. 100 CONSTRUCTIVE FRAUD. ca'piv ■^' *■ ^•' ^'^^•^ ^^^ hence a purchaser ia presumed to have knowledge of the instru- ment under which the party with whom he contracts, as executor or trustee or ap- pointee, derives his power. (St. § 400.) But the mere registration of a conveyance is not deemed constructive notice to subse- quent purchasers, as to collateral effects ; so that the mere registration of a second mort- gage will not prevent a prior mortgagee from tacking a third mortgage, when he had no actual notice of the existence of the second mortgage. (St. § 401, 402 ; 2 Sp. 763.) To constitute constructive notice, it is sufiBcient if it is brought home to the agent, attor- ney, or counsel, in the same transaction, or in one immediately preceding; unless there is a moral certainty that he would not have communicated the fact to the principal or client. (St. § 408 ; 2 Sp. 700, 761 ; Spaight V. Cowne, 1 Hem. & Mil. 359 ; Atterhury v. Wallis, 8 D. M, & G. 454 ; Thompson v. Cart- wright, 33 Beav. 178, 185.) And where the mortgagor has at different times employed the same solicitor in effecting different in- cumbrances upon the same estate, and the incumbrancers have employed the mort- gagor's solicitor in the several transactions, CONSTRUCTIVE FRAUD. 101 each ofihepuisnS incumbrancers is affected f,^'p-/y with notice of the priol* incumbrances. (2 Sp. 761.) A purchaser of a legal estate with notice of an equitable claim, will be protected, if he purchases from a prior bond fide pur- chaser without notice; for otherwise the latter would not enjoy the full benefit of his own exceptionable title. And if a purchaser who had notice sells to another, and the latter has no notice and is a bond fide pur- chaser for a valuable consideration, the title will not be affected with notice in his hands ; for otherwise no man would be safe in any purchase. (St. § 409, 410; 2 Sp. 764; Sugd. V. & P. 14th ed. 153; 2 Lead. Cas. Eq. 2d ed. 36, 37 et seq.) 10. Purchases from executors of the per- lo. rraudn- . lent dealing sonal propertv of their testator, are or- withexecu- ' >■ '' ' tors or ad- dinarily valid, notwithstanding it may be ministra- affected with some peculiar trust or equity in the hands of the executor; for the pur- ^ chaser cannot be presumed to know that the sale may not be required In order to discharge the debts of the testator, to which they are legally liable before all other claims. But if the purchaser knows that the exec- utor is converting, the estate into money for 9* 102 CONSTRUCTIVE FRAUD. Ca"'iv ^" unlawful purpose, the purchase will be — ' set aside. (St. § 422, 423, 580, 581 ; Elliot V. Merryman, 1 Lead. Cas. Eq. 2d ed. 45 et seq.) 11. Frauds 11. The object of the Statute 27 Eliz. c. 4, under Ibe Stat. 27 Eliz. being to give full protection to subsequent voluntary pui'chascrs against voluntary prior convey- agafnst^^ ances, a prior conveyance is deemed void, purchasers as against a subsequent purchaser or mort- gees. gagee, whether with or without notice, and, even after a bill filed to enforce such prior conveyance, if not on valuable consideration, although it may be bond fide and on good consideration, or although it may be ex- pressed to be made for divers valuable con- siderations, not naming them ; on the ground that the Statute, in every such case, infers fraud, and will not suffer the presumption to be rebutted. As between the parties them- selves, however, such conveyances are bind- ing. And as between two voluntary con- veyances, if the first is fraudulent, the second will prevail; but, where each is bond fide, Equity will not interfere. (St. § 425, 426, 433; 2 Sp. 288, 638; JEUison v. mison, 1 Lead. Cas. Eq. 2d ed. 199 et seq.; Kelson v. Kelson, 10 Hare, 386; Barton v. Vanheythusan, H Hare, 126 ; Lewis v. Jtees, CONSTBUCTIVB FRAUD. 103 3 K. & J. 132, 150—1 ; Baking v. Whimper, ^tit. l^ 26 Beav. 568; Lloyd v. Attwood, 8 D, & J. — ' 614.) Nor will Equity interfere where the voluntary grantee has conveyed to a bond fide purchaser for valuable consideration, before the bond fide purchaser from the voluntary grantor acquired his title. (St. § 434.) And Equity will not give its aid to a voluntary settlor to enable him to com- plete a contract for sale against a purchaser. (2 Sp. 289.) There is this exception to the general rule, in the case of a charity, that if a purchaser has notice of a gift to a charitable use, or purchases without notice of it from a pur- chaser who had notice of it, he takes subject to it ; though, if he has no notice, and he has not purchased from a purchaser with notice, he will have the same protection as he would have against an ordinary voluntary con- veyance. (2 Sp. 289 ; Tudor's Char. Trusts, 2d ed. 329—332.) A fair voluntary settlement in favor of a wife and children is also an exception to the rule to this extent, that almost any bond fide consideration, in addition to the meritorious consideration of the provision itself, will be sufficient for the purpose of supporting the 104 CONSTRUCTIVE FRAUD. Tit. I. settlement. Therefore, if a person whose Cap. IV. ' * concurrence the parties deem essential, joins in a settlement, his concurrence will be deemed a valuable consideration although he did not substantially part with any- thing. (See 2 Sp. 288, 290 ; Sugd. Concise View, 568—9 ; Atkinson v. Smith, 3 D. & J. 186.) And if the wife's estate is settled on her for life, for her separate use, with remainder to the husband, with remainder to the children, by a post-nuptial settlement, it is good against a mortgagee of the husband and wife; because the surrender by the husband of his right to receive the rents and profits during the coverture, and his giving his wife an exclusive power over them, is a valuable consideration. {Bewison V. Negus, 16 Beav. 594.) A collateral relation who is the object of an ulterior limitation in a settlement, is not a mere volunteer : for though he may not be within the consideration of the marriage, he is within the contract; but yet it has been held that he cannot prevail against a purchaser. (2 Sp. 291—293.) A conveyance for payment of debts gene- rally, to ^yhich no creditor is a party, and in CONSTRUCTIVE FRAUD. 105 which no particular debt is expressed, is a cIp^'iv fraudulent conveyance within the statute. (2 Sp. 351.) ■ 12. In every transaction in which a person 12. Frauds . . in the case obtains, by voluntary donation, a benefit ofvoiuntary from another, it is necessary, if the trans- against the ' . •/ ' donors action be called in question, that he should t^emaeives. be able to establish that the person giving him the benefit did so voluntarily and de- liberately, and with full knowledge of what he was doing : if this is not established, the transaction will be set aside. (^Huguenin v. Baseley, 2 Lead. Cas. Bq. 2d ed. 462, et seq. J Cooke v. I/amotte, 15 Beav. 241 ; Ander- son V, Msworth, 3 Gif. 154 ; Sharp v. Leach, 81 Beav. 491; Phillipson v. Kerry, 32 Beav. 628.) 13. The donee of a power must exercise is. Fraad- ■*■ ulent ap- it bond fide for the end designed; otherwise pointmsnts. it is considered as a fraud upon the power. ( Topham V. DuJce of Portland, 1 D. J. & S. 517.) Hence, where a person has a power of ap- Appoint- ' ■*■ *■ ■*■ ment must pointing to all or any of his children, and the'cM° '""^ he exercises it in favor of one child, merely "'^^s'^^''- in order to remove an objection to the title of an estate, the appointment is void. And if a person, having a particular power to be ment™ „ , 1 whereby a exercised for the benefit of others, makes an benefit 106 CONSTRUCTIVE FRAUD. Tit. I. appointment in paj'ment of a debt dne to ""7" the appointee by the appointor, or npon the pohuorora t^rms Or for the purpose of securing some stranger, bguggt to himself Or some others not ob- jects of the power, such an appointment is fraudulent, and will he set aside in equity : as where the donee of a power appoints a fund to one of the objects of the power, under an understanding that the latter is to lend the fund to the former, though on good security ; or that the appointee should hold the fund in trust for, or make over a part to, persons, some of whom are not objects of the power. Appoint- Upon the same principle, if a parent ap- infant. points an immediate portion to an infant who is not in want of it, or appoints to a child, whether infant or adult, who is seri- ously ill, with a view to becoming entitled to that which is so appointed himself, as the personal representative of such appointee in the event of his death, the appointment is void as a fraud upon the power. Bights of Where a person exercises a general power creditors . against a of appointment in favor of a stranger, it appointee, will be deemed a fraud upon his credi- tors, who will in equity become entitled to the money in the hands of the appointee. CONSTRUCTIVE FRAUD. 107 (Smith's Corapendiiim of the Law of Prop- ^^^-^y erty, Sd ed. 732 — 3; Aleyn v. BelcMer, 1 Lead. Cas. Eq. 2d ed. 304 et seq ; Be Mars- den's Trust, 4 Drew. 594.) 14. If a man has induced another to u. Putting an end to enter into a contract with him, by represent- ^^^J^l^ ing an actual state of things as a security Hon^forT for the enjoyment of an interest which he °'""™'='- has himself created for valuable considera- tion, he is not at liberty, by his own act, to derogate from that interest, by determining the state of things which he has so held forth as the consideration for entering into the contract. (Piggott v. Stratton, 1 Johns. 341; 1 D. F. & J. 33.) 15. A person who has entered into a pur- ?5. Eescind- ^ ^ ing contract chase contract, cannot rescind such contract, i,enefit by*a in order to turn to his own benefit a flaw in ^tie.'" ^''^ the vendor's title, which he has discovered from the abstract ; as by buying up the interest of an heir-at-law whose concurrence is necessary. (Murrel v. Goodyear, 2 Gif. 51 ; 1 D. F. & J. 432.) TITLE II. ®f ®)eeaitit)e ©quUg. 10 ( 109 ) (110) CHAPTEE I. OP LEGACIES AND PORTIONS. Tit, II. No suit will lie, at the Common Law, to (?AP. I. •' ' recover legacies, unless the executor has as- Juriadic- tioi. sented to them (St. § 591) ; because all the chattels vest in him, and are liable to the payment of the testator's debts, and it is the duty of the executor, before he pays, delivers over, or assents to the legacies, to see whether there will be sufficient left to pay the debts, inasmuch as a man must be just before he is permitted to be generous. (See 2 Blac. Com. 512.) But after the executor has assented to a specific legacy of chattels, the property vests immediately in the leg- atee, who may maintain an action at law for the recovery thereof. A similar rale has been attempted to be applied at Law to pecuniary legacies, but the application has been doubted and disapproved of (St. § 591) ; because Courts of Law could not impose on the parties recovering these legacies such terms as might be required; so that, for LEGACIES. Ill example, a husband might recover a legacy ^"- ^■ given to his wife, without making any pro- — vision for her or her family. (St. § 592.) And where there is an actual trust, express, implied, or constructive, or the legacy is charged on land, or the other courts cannot take due care of the interests of all parties. Courts of Equity will assert an exclusive jurisdiction. And even where the executor has assented to the legacy, and there is no actual trust, yet they have jurisdiction, though it may be merely a concurrent ju- risdiction; because the executor is consid- ered as a kind of trustee for the legatees, which forms a universal ground of equitable interference; and because the interposition of a Court of Equity may be required to obtain a discovery, account, or distribution of assets, or some other relief or assistance which the other Courts are or were incom- petent to afford. (See St. § 593—602.) By the stat. 20 & 21 Vict. c. 77, s. 23, no suit for legacies or the distribution of resi- dues shall be entertained by the Court of Probate, or by any Court or person whose jurisdiction as to matters and causes testa- mentary is thereby abolished. But by the Stat. 9 & 10 Vict., c. 95, s. 65, and 13 & 14 112 LEGACIES. c"p"' '^^^^- c- 61, s. 1, a legacy not involving a trust, and not exceeding £50, may be recov- ered in a County Court. (Smith's Manual of Common Law, 3d ed. 443^.) Legacy pay- In cascs of legacies payable at a future able at a ° ^ •' future day. day, whether contingent or otherwise. Courts of Equity will compel the executor to give security for the payment thereof; or, which is the modern and perhaps the more appropriate practice, it will order the fund to be paid into Court, even if there is not any actual waste, or danger of waste. (St. § 603.) Specific And where a specific legacy is given to legacy to x o .^ a one for life, one for life, and after his death to another, remainder to another, there the legatee in remainder can obtain a decree for security from the tenant for life, for the due delivery over of the legacy to the remainder-man, if there is some allegation and proof of waste, or of danger of waste. But, in the present day, if there is no such allegation and proof, the remainder-man is only entitled to have an inventory of the property which was bequeathed to him, so that he may be enabled to identify it, and to enforce a due delivery of it when his right of present possession accrues. (St. § 604.) What chii- Generally speaking, when a future period dren to be included, of distribution among children is contem- LEGACIES. 113 plated by the will or other instrument, all "q^^^- who are born during the life of the parent, or before the period of distribution, are en- titled to a share. (2 Sp. 418. ' See Viner v. Francis, Tud. Lead. Cas. E. Prop. 2d ed. 702.) If a legacy is given for a particular pur- Legacy for - a purpose pose, the fact that it cannot be eifected will wwchcan- ■*■ ' not be ac- not prevent the legacy from vesting in the compushed. donee. (2 Sp. 466, note (c).) So that if a bequest be to or in trust for a legatee, to apprentice him, or the like, it is an absolute gift to the legatee ; and if he dies before it is so applied, it will belong to his represent- atives. (2 Sp. 462.) A legacy by a parent to a child is pre- what is a , . 1 portion. sumed to be a portion, although it be not so expressed; because it is the duty of a parent to provide for his child. The duty which is imposed upon the parent may be assumed by any other person who for any reason thinks proper to put himself in that respect in the place'of the parent; and when it is 80 assumed, the same presumption will arise as in the case of a legacy or gift by a parent. There are many doctrines which are appli- cable to portions, that is, sums of money secured or given by a parent or person standing in loco parentis to a child, which 10* 114 LBaACIES. Cap ¥' would not be applied to a gift as between strangers. (2 Sp. 394.) Where por- If portions Or legacies charged on land tions or ^ ° ° Jj'sac^esare are made payable on an event personal raised. ^^ ^Jjq party to be benefited, and he dies before that event happen, the portion or legacy is not to be raised out of the land. But it is otherwise if the payment is post- poned until the happening of an event not referable to the person of the party to be benefited, but to the circumstances of the estate out of which the portion or legacy is to be paid. (2 Sp. 396.) Where a portion is secured, and no par- ticular time is fixed for the vesting, if the child dies before the time when the portion is needed, the portion will not be raised : for it is reasonable that the land should be eased of the charge, when the only motive for making the same is at an end. (2 Sp. 398.) Time for If there is a limitation to the iJarent raising - ^ portions. for life, with a term to raise portions at twenty-one or marriage, and the interests are vested, the portions must be raised forthwith by sale or mortgage of the re- versionary term, unless there is something to indicate an jptention that the portions LEGACIES. 115 should not be raised until the term falls into t™- n. Cap. I. possession. (2 Sp. 40.5.) When a legacy is given by a father or a interest. person standing in loco parentis, as a pro- vision for an infant, and no maintenance or interest is given, though the legacy be pay- able at a future day, the infant has an imme- diate right to interest. (2 Sp. 409 ; 2 Eop. Leg. 1257, 1270, 1348, ed. 4.) When real estate is so settled -as that it Construc- tion of pro- must on the death of a parent go to his vMonsfor * ° younger eldest son, and provision is made, not by a owidreu." stranger or relation not standing in loco parentis, but by that parent or by a per- son, standing in loco parentis, whether by prenuptial settlement or by will, for the younger children of such parent or person, the Court has considered the presumption, that it was intended to make provision for all the children, and not to give a double portion to any, to be so strong, that it has let in all children unprovided for by the settlement or will itself, or by means which were in contemplation of the parties making the settlement or will, though not strictly "younger," and has excluded the child pro- vided for by the family estate, even though a younger child. (2 Sp. 411—113.) This 116 LEGACIES. c"p ?■ latitude of construction is not extended to a legal limitation in a deed. (76. 412.) In ordinary cases, the period of distribution, and not the period of vesting, is the time for ascertaining who is to be excluded. (76. 416.) Construe- In deciding on the validity and interpre- legaoies. tation of purely personal legacies, Courts of Equity in general follow the rules of the Civil Law, as recognized and acted on in the Ecclesiastical Courts; but as to the validity and interpretation of legacies charged on land, they generally follow the rules of the Common Law. (St. § 602, 608.) With these few remarks we must dismiss the subject of Legacies and Portions, as a separate topic, since it is so extensive, that the doctrines of Equity respecting it could not be even succinctly stated, without far transgressing the limits allotted to the pres- ent Manual. (117) CHAPTEE II. or DONATIONES MORTIS CAUSA. Courts of Equity maintain a concurrent tit. ii. ^ •' Cap. II. i urisdiction in all cases of this kind, where " Jurisdic- the assistance afforded at Law is not ade- tion. quate or complete. (St. § 606 j Ward v. Turner, 1 Lead. Gas. Eq. 2d ed. 721 et seq.) A donatio mortis causa is a gift of personal Definition, property made by one who apprehends that he is in peril of death, and evidenced by a manual delivery by him or by another person in his presence by his direction, to the donee or some one else for the donee, of the prop- erty itself, or of the means of obtaining possession of the same, or of the writings by which the ownership thereof was cre- ated, and conditioned to take effect absolute- ly in the event of his not recovei-ing from his existing disorder, and not revoking the gift before his death. (St. § 606, 607 a— 607 c; 1 Sp. 196; 2 Sp. 912; Powell v. Hellicar, 26 Beav. 261.) Thus, negotiable 118 DONATIONBS MOETIS CAUSA. Tit. II. Cap. II. What may be the sub- ject of such donations. Mixed character of such donations. notes, promissory notes, payable to order, though not indorsed, bills of exchange, though not indorsed, bank notes, bankers' deposit notes, cheques, policies of insurance, bonds, and mortgages, may be the subject of . such donations ; and goods in a warehouse may be given in like manner by a delivery of the key. (St. § 607 a ; 1 Sp. 196 ; 2 Sp. 657; Bouts v. Ullis, 17 Beav. 12.1; Veal v. Veal, 27 Beav. 303 ; Eanldn v. Weguelin, 2,1 Beav. 309; Witt v. Amis, 1 Best & Sm. 109, 33 Beav. 619.) A donation of this kind partakes partly of the characteristics- of a gift inter vivos, and partly of those of a legacy. It diifers from a legacy in these respects : 1. It takes effect sub modo from the delivery in the lifetime of the donor ; and therefore it cannot be proved as a testamentary act in the Court of Pro- bate. 2. It requires no assent or other act on the part of the executor or administrator to perfect the title of the donee. It differs from a gift inter vivos in certain respects in which it resembles a legacy : 1. It is revo- cable during the donor's lifetime. 2. It may be made to the wife of the donor. 3. It is liable to the debts of the donor on a defi- ciency of assets. (St. § 606 a; 1 Sp. 196.) DONAXIONES MORTIS CAUSA. 119 Words of absolute gift, if accompanied by ^j^- Yj expressions showing that the intention was ^^^ that the property should be enjoyed only in ^°^^^ the event of the death of the donor, will be suflScient to constitute a donatio mortis causa. (2 Sp. 912.) Evidence of the clearest and most un- Evidence, equivocal character is requisite to support a donatio mortis causa. (^Gosnahan v. Grice, 15 Moo. P. C. 215.) ( 120) CHAPTEE III. OP EXPRESS PRIVATE TRUSTS EVIDENCED BY SOME WRITTEN DOCUMENT, Tit. n. I. A TRUST, when used in the sense of an Cap. m. ' I. Definition equitable interest, is not now, as it was at of a trust, one time, considered a chose in action ; it is a beneficial interest in, or a beneficial owner- ship of, real or personal property, unattended with the possessory and legal ownership thereof. (See Smith's Executory Interests, annexed to Fearne, § 40 — 46, 50 ; 2 Sp. 875.) n. Extent II. Trusts arisinsr under wills are exclu- 01 juris- ° teS^tef °''^'' sively within the jurisdiction of Courts of Equity. (St. § 1058.) And indeed this is the case with most matters of trust. (St. § 962.) rn. Divi- in. Trusts may be divided into three sion of . , . , trusts, kinds: express trusts, implied trusts, and constructive trusts. The last two, however, are frequently confounded, or at least classed together, and are sometimes designated by the name of implied trusts, and sometimes by the name of constructive trusts. EXPRESS PRIVATE TRUSTS. 121 IV. An express trust is a trust which is (^"'jJi clearly expressed by the author thereof, or ^^ ^^u;. may fairly bo collected from a written docu- express"" . trust. ment. V. The Statute of Frauds requires aliyMoa«of ^ declaration declarations of trust of freehold, copyhold, or "*' '™^'- leasehold lands, toncmcntSjOr hereditaments, to be evidenced by some writing signed by the party declaring the same. But declara- tions of trust of money, even though secured on real estate, or of chattels personal, need not be so evidenced. (St. § 972 ; 1 Sp. 497, 498 ; 2 Sp. 19, 20, 897 ; Peckham v. Taylor, 31 Beav. 250.) A declaration of trust, if bond fide, is valid, though at a distance of time, and evea after the trustee has committed an act of bank- ruptcy. (2 Sp. 21.) And if the signed docu- ment refers to any other document, which ehows what was meant by the parties, that is sufficient. (2 Sp. 22.) And if the terms of the trust do not sufiioiontly appear upon the face of the instrument, evidence may be received to show the position of the party signing, and the circumstances by which he knew himself to be surrounded, and the credibility of the instrument. (2 Sp. 22.) 11 122 EXPKBSS raiVATB TRUSTS. (Jap' III ' ^^ ^^ ^^°* necessary that there should be any actual transfer of property to render a declaration of trust effectual. If a person declares himself to be a trustee for another of money or personal property to be recovered, whether in writing or by acts or declarations of a decisive and definite nature sufficiently proved, the transaction will be binding against him and bis representatives. (2 Sp. 897; Dij>ple v. Corles, 11 Hare, 183; Peck- ham V. Taylor, 31 Beav. 250; Grant v. Grant, 34 Beav. 623.) And if a person, by writing or by word, directs his debtor to hold the money dae in trust for a third per- son, and such direction is communicated to •the debtor and the don«e, an effectual trust is created in favor of the donee. (2 Sp. 53, 898; Faterson v. Murphy, 11 Hare, 88; Vandenberg v. Palmer, 4 K. & J. 204.) But a mere promise to give, without valuable consideration, or a defective conveyance, gift, or assignment, without valuable considera- tion, where the party means actually to vest the legal ownership in the donee, or in any other person as trustee for him, will not be considered as a declaration of trust. (2 Sp. 57, 887 ; Dipple v. Corles, 11 Hare, 183.) And it has been held that a memorandum EXPRESS PRIVATE TRUSTS. 123 espressive of " an intention to leave " or a j^'^- "j " determination to appropriate " a fund to a person, and a declaration, during a last ill- ness, of a wish that it should be given to such person, does not amount to a declaration of trust, but is a mere inoperative indication of a testamentary intent not carried into effect. {Be Glover, 2 Johns. & Hem. 186.) VI. Where uses are expressly and clearly vi. By what ■^ words a limited, which the Statute of Uses will not trust may ' be created. execute, that is, convert into legal estates, trusts are thereby created ; for modern useSj unexecuted by the Statute, are trusts, just as all uses were trusts before the Statute was made. And where uses are engrafted on uses, the Statute only executes the first use ; so that where an estate is limited to A. and his heirs, to the use of B. and his heirs, to the use of or in trust for C. and his heirs, the Statute executes the use to B. and his heirs ; but the use to C. and his heirs is not executed by the Statute, but is a trust. Nor does the Statute execute uses or trusts where it is requisite that the trustee should continue to hold the estate in order to per- form them. Nor does the Statute extend to uses or trusts of chattels real or personal; the words of the Statute being, " when any 124 EXPRESS PRIVATE TRUSTS. Cap Si P^''s°Ji Js seised to the use," &c., and the word " seised " being inapplicable to per- sonal estate. And trusts of copyholds were excluded from the operation of the Statute, because otherwise the rights of Lords would have been infringed. (See St. § 970 ; 1 Sp. 466, 490 ; Tyrrell's Case, Tnd. Lead. Cas. E. Prop. 2d cd. 274.) No particular form of expression is necessary to the creation of a trust. (1 Sp. 498; 2 Sp. 20.) And a trust may be created, although there may be an absence of any expressions which in terms import confidence. (Page v. Cox, 10 Hare, 169.) There are many cases, arising under wills, in which it is very difficult to determine whether or not a trust was intended to be created. It may, however, be laid down as a general rule, that expressions of recom- mendation, confidence, hope, wish, and de- sire are considered to create trusts, if the object and the property which is to form the subject of the supposed trusts are certain and definite, and if, regard being had to the whole context and circumstances of the will, the subject-matter, the previous con- duct of the testator, the situation of the parties, and the probable intent, the expres- EXPRESS PRIVATE TRUSTS. 125 sions appear to have been intended to be Jit. n. imperative; and expressions showing a de- sire that an object should be accomplished, will be deemed imperative, unless there are plain express words, or there is a necessary implication that the testator did not mean to exclude a discretion to accomplish the object or not, as the party may think fit. But if either the object or the subject is not definite; or if a discretion and a choice to act or not is given ; or if the prior disposition of the property imports an absolute owner- ship, as where it is given without any fetter in a former part of the will ; or if the motiv© assigned is beneficial to the donee; or if the words which contemplate a benefit to a third person appear to be expressive of the motive by which the testator was ac- tuated, rather than of a trust in favor of such person ; as where a legacy is given to A. the better to enable him to maintain his children ; or where a testator bequeaths a sum to trustees upon trust to pay the in- come to a person for life, "nevertheless to be by him applied towards the maintenance, education, or benefit of his children," which are legal obligations in the case of a father, though only moral obligatiops in the case 11* 126 EXPRESS PRIVATE TRUSTS. Tit. g. of a mother J no valid trust will be created by words of this character. (St. § 1069, 1070, and notes; 2 Sp. 64 — 71; Harding v. Glyn, 2 Lead. Cas. Eq. 2d ed. 789 et seq. ; Briggs v. Penny, 3 Mac. & Gord. 546; 2 Eop. Leg. 1446; Thorp v. Owen, 2 Hare, 607; Macnab v. Whitbread, 17 Beav. 299; Beeves v. Baker, 18 Beav. 372 j Castle v. Castle, 1 D. & J. 352; Gulley v. Cregoe, 24 Beav. 185; Byne v. Blackburn, 26 Beav. 41; Wheeler v. Smith, 1 Gif. 300; Quayle v. Davidson, 12 Moo. P. C. 268 ; Fox v. Fox, 27 Beav. 301; Bonser v. Kinnear, 2 Gif. 195; Shovelton v. Shovelton, 32 Beav. 145; B<% V. Thompson (No. 1), 32 Beav. 646; ifari V. Trifte, 32 Beav. 279; 1 D. J. & S. 418; Mood v. Oglander, 34 Beav. 513; ^arrs v. Fewkes, 2 Hem. & Mil. 60 ; Faton V. Watts, L. E. 4 Bq. Cas. 151.) And any words by which it may be expressed, or from which it may be implied, that the first taker may apply any part of the sub- ject to his own use, are held to prevent the subject of the gift from being considered cer- tain. And a vague description of the object, that is, a description by which the giver neither clearly defines the object himself, nor names a distinct class out of whichthe first EXPRESS PRIVATE TRQSTS. 127 taker is to select, or which leaves it doubtful ^'J- jj-^ "what interest the object or class of objects is to take, will prevent the object from being certain within the meaning of the rule. (St. § 1070, note; 2 Sp. 69, 72, 78; Green v. Marsden, 1 Drewrj, 646.) But where in terms or in effect a gift is made to a parent for or toward the support of himself and children, the mere fact that the parent may apply part of the property for his own sup- port does not render the subject uncertain, so as to prevent the disposition from being construed to create a trust in favor of his children. It is only an uncertainty which the Court can remove by ascertaining,- if necessary, what should be devoted to the children. (2 Sp. 463 — i65.) Again, the family of A. will often be a sufficient desig- nation of the objects; for the context may render it definite, and show that it means the beir-at-law of A., or, in other cases, the children of A., or; in others, the brothers and sisters or next of kin of A., according to the Statutes of Distribution. Generally speaking, neither the husband nor the wife will be considered as included under the word "family." Although the term "re- lations" is still more indefinite, the Court 128 EXPRESS PRIVATE TRUSTS. cIp III ^^® executed a trust in favor of relations, by giving the property, when personal, to the next of kin, according to the Statutes of Distribution, but per capita. (St. § 1071; 6 Sp. 73 — 76.) But where a testator devised his leasehold estates to his brother A. for- ever, "hoping he would continue them in the family," this did not create a trust, for the words gave a choice, and the object was not definite. (St. § 1072; 2 Sp: 75.) And where a testator bequeathed to his wife all the residue of his personal estate, "not doubting but that she will dispose of what shall be left at her death to his two grandr children;" these words did not create a trust, because the property would be un- certain ; for it might be just what she chose to leave. (St. § 1073.) VII. Douee VII. But it Sometimes happens that al- excluded from taking though no Valid trust is created, vet it is benehcially, ^ ' •' inteSded^ clear that a trust was intended; and in such valid!'' ""* instances the person to whom the gift is made is as completely excluded from taking beneficially as if a valid trust were created. This is the case where the words are directly or indirectly imperative, but the objects are too indefinite, or are not pointed out at all, or not in such a way that the Court can take EXPRESS PRIVATE TRUSTS. 129 judicial notice of them. (St. § 979 a, b; J^'J-Ji^f Briggs v. Penny, 3 Mac. and Gord. 546 ; Ber- nard v. Minshull, 1 Johns. 276.) VIII. Express trusts are either executed viii. Trusts executed or executory, in the sense of directory. A andexccu- trust executed is a trust which appears to be •finally declared by the instrument creating it. A trust executory or directory is a trust raised cither by a stipulation or by a direc- tion, in express terms or by necessary im- plication, to make a settlement or assurance to uses or upon trusts which are indicated in, but do not appear to be finally declared by, the instrument containing such stipula- tion or direction. (Smith's Executory In- terests, annexed to Fearne, § 489; 2 Sp. 128, 129, 131, 132, 133; Lord Glenorchy v. Bos- ville, 1 Lead. Cas. Eq. 2d ed. 1 et seq.; Tur- ner Y. Sargent, 17 Beav. 203; Boncaster v. Doncaster, 3 K. & J. 26; Fullerton v. Marten, 1 Drew. & Smale, 31.) In the case of trusts executed, a Court of Equity puts the same construction on tech- nical words as that which is put by a Court of Law on limitations of legal estates. But in the case of trusts executory, Equity con- siders the apparent intent to be collected from the whole instrument, or, where the 130 EXPRESS PBIVATE TRUSTS. T'T. 11. language is doubtful, the presumable intent, — rather than the strict import of technical words. (See 2 Sp. 131—135.) Thus, where the legal estate is limited to one for life, re- mainder to the heirs male of his body, he takes an estate tail male under the rule in Shelley's case. And where, in a will or voluntary deed, there is a mere direction to settle an estate on one for life, to be followed by a remainder to the heirs of his body, as there is nothing of an inchoate or executory nature in the instrument itself, and the words are formal and explicit, and there is nothing in the instrument to show or afford a presumption that the words were not in- tended to be used in their technical sense, the mere reference to a further instrument does not render the trust executory, and therefore the limitations, as regards the rule in Shelley's case, receive the same construc- tion as similar words used in limiting legal estates. But if marriage articles express that an estate is to be settled on the hus- band for life, with remainder to the heirs of his body, there the inchoate nature of the instrument, combined with the allusion to a further instrument, renders the trust ex- ecutory; and as the issue in this case are EXPRESS PRIVATE TRUSTS. 131 purchasers for valuable consideration, so ^''^•JJi ^ ' Cap. III. Equity -will construe the articles as giving an estate for life only to the husband, with a remainder in tail to the children. (2 Sp. 136.) IX. Trusts in real propertv, which ai'c ix. Trusts r r ./J governed by exclusively cognizable in Equity, are gene- Igfega"'^^ rally governed by the same rules as legal *^'*'^=- estates (1 Sp. 492, 499, 500, 502, 875, 876, 878.) But, 1. The construction put upon Exceptions, trusts executory, as we have before seen, differs, in some respects, from that which prevails in regard to legal estates and trusts executed. 2. Before the late Dower Act, Coarts of Equity held that trust estates were not subject to dower; because, before the question was tried, it was the general opinion that, by the creation of a trust estate, dower was prevented from attaching; and it is a maxim that, communis error facit jus; and to have held that trust estates were subject to dower, would have affected a large pro- portion of the estates in the kingdom. (1 Sp. 501.) 3. An equitable estate, being inca- pable of livery of seisin and of every form of conveyance which operates by the Statute of Uses, a mere declaration of trust, if in writing signed by the party bound or his 132 EXPRESS PRIVATE TRUSTS. Sp'ni "gs"'' lawfully authorized, was held suflS- — cient to transfer such equitable estates; ex- cept that a fine or recovery was required, where the same would have been necessary if the estate had been a legal estate. (See St. § 974, 974 a, and notes, and § 975; 1 Sp. 497, 500, 506, 877; and as to executory trusts, see pp. 15, 16, 129, supra.') In prac- tice, however, trust estates have been usually conveyed in the same manner as legal estates. (1 Sp. 506.) 4. Trusts were independent of the rules of the Common Law founded on tenure ; so that a life interest in a trust estate was not forfeited on any alienation by the tenant for life. (1 Sp. 500, 505.) X. Trusu X. Lon a; terms for years are often created of terms. ° for securing the repayment of money lent on mortgage, and for other purposes. Prior to the Statute 8 & 9 Vict. c. 112, such terms did not determine on the mere performance of the trusts for which they were created, unless there was a special provision to that effect; but the legal interest remained in the trustee, after thej' were performed ; and at Law the term continued to bo a term in gross, as distinct and separate from the in- heritance as it was at first. But in Equity the term might become attendant on the EXPRESS PRIVATE TRUSTS. 133 inheritance by express declaration, so as to ^'^. n^ follow the descent to the heir, and all the alienations made of the inheritance, or of any particular estate or interest carved out of it by deed or by will or by act of Law, and so as not to be devisable, before the late Wills Act, without the formalities requisite for devising real estate, and, in short, so as to be governed in Equity by the same rules generally as the inheritance. Again, a sat- isfied term might become attendant on the inheritance, with the same eifects, by mere implication; for, as Equity always consid- ers who has the right to the land in con- science, if the term was not subject to any ulterior limitation to which the inheritance was not subject, and the owner of the in- heritance was entitled to the whole trust of the term, it was attendant on the inheri- tance "by implication. ^ In consequence of satisfied terms being deemed terms in gross at Law, but capable of being rendered completely subservient to the ownership of the inheritance in Equity, they were often made of the greatest use in protecting the inheritance from mesne estates, charges, and incumbrances. Thus, if a bond fide purchaser for valuable con- 12 134 EXPRESS PRIVATE TRUSTS. cip'iii sideration, mortgagee, lessee, or other in- cumbrancer, took a conveyance, lease, or assignment, defective by reason of some estate, charge, or incumbrance, subsequent to the creation of a long-satisfied term for years and prior to his own conveyance, lease, or assignment, and of which he had no notice at the time of his contract, he might effectually protect himself against all persons claiming under such prior estate, charge, or incumbrance, by taking an as- signment of the satisfied term to a trustee, for himself, or by taking an assignment thereof to himself where he took the con- veyance, lease, or assignment of the estate or interest to be protected in the name of a trustee; for he might use the legal estate in such satisfied term, to defend his posses- sion during the continuance of the term ; or, if he had lost the possession, to recover it. (See St. § 998—1002, and notes, Sugd. Cone. View, 477.) By the Stat. 8 & 9 Vict. c. 112, § 1, every satisfied term which was attendant on the 31st of December, 1845, was on that day to cease, except that, if attendant by ex- press declaration, it was to afford the same protection as it would have afforded if it EXPRESS PRIVATE TRUSTS. 135 had continued to subsist, but had not been tit. ii. assigned or dealt with after that day. And by § 2, every term which, after the Slst of December, 1845, should become satisfied and attendant, was to cease immediately- upon the same becoming so attendant. An attendant term might at any time be disannexed by the proper acts of the parties in interest, and be turned into a term in gi-oss. (St. § 1002.) A trust term may be conveyed as well as devised, so as to give successive interests to successive takers ; whereas a legal term can only be devised in that manner. (1 Sp. 513.) XL A person in whose favor a trust has xi. Trusts created been created may affirm it, and enforce the without '' ' cestm, que performance thereof, although it was created ^^^j^ij ^ without his knowledge, if at least it is not revoked by the author of the trust before it is so affirmed. (St. § 972.) XII. Equity will enforce a trust where xii. what . . 1 1 ■ • -11 -ii trusts will it IS executed, or where it is raised by will, be enforced, even though it is a mere voluntary trust ; l^ut it will not enforce an executory trust raised by a covenant or agreement, unless it is supported by a valuable consideration. (See cases referred to, St. § 793, 793 a; 136 EXPRESS PRIVATE TRUSTS. Tit. II, Cap. III. Xin. Exe- cution of marriage articles. XIV. As- signments for benefit of creditors. 2 Sp. 52, 57, n. (e), 129, 255; MHson v. Ellison, 1 Lead. Cas. Eq., 2d ed. 199, et seq. And as to the distinction between executory and executed, see supra, p. 129.) XIII. Marriage articles will be specifi- cally executed on the application of any person within the scope of the consideration of the marriage, or of those claiming under any such person. But they will not be spe- cifically executed on the application of per- sons who are volunteers, even of a wife or child by a subsequent marriage; although where the bill is brought by persons who are within the scope of the consideration, or by those claiming under them, Courts of Equity will decree a specific execution throughout, as well in favor of the mere volunteers, as of the plaintiff; as the Courts either execute them in toto, or not at all. (St. § 986, 987 ; 2 Sp. 287.) XIV. Putting the bankrupt and insolvent laws out of the case, a person is at liberty to assign all his property for the benefit of his creditors, though it may be for the pur- pose of defeating some particular creditor of his execution in an action commenced by him against the debtor. For a debtor, in securing the equal distribution of his effects EXPRESS PRIVATE TRUSTS. 137 among all his creditors, is only performing a tit. ir. moral duty. But such an iissignment must be free from fraud and misrepresentation. (2 Sp. 350, 352; Worsely v. De Mattos, Lead. Gas. Merc. Law, 438; Harman v. Fishar, Id., 455.) Preferences and priorities of particular creditors are ordinarily valid, in generaV as- signments made by debtors, in discharge of their debts, except under the laws of bank- ruptcy and insolvency. (St. § 1036 ; 2 Sp. 350, 351, 352.) But a debtor cannot vest his property in one of his creditors for the pui'pose of hindering and delaying his other creditors, and compelling them to come to terms; for such a deed is fraudulent and void. (^Smith v. Hurst, 10 Hare, 30.) Assignees under general assignments, such as assignees in cases of bankruptcy and insolvency, take only such rights as the assignor or debtor had at the time of the general assignment; and consequently a prior special assignee will hold against them, without giving notice of his- assignment. (St. § 1038.) In order to entitle the creditors named in a general assignment for the benefit of cred- itors to take under it, it is not necessary 12* 1S8 EXPRESS PRIVATE TRUSTS. Tit. II. that they should be technical parties thereto, unless they are named in the assignment as parties, and are expressly required to execute before they can take under its provisions. It is sufficient if they have notice of the trust in their favor, and assent to it; and if there is no stipulation for a release or any other condition in it which may not be for their benefit, their assent will be presumed, till the contrary appears. (St. § 1336 a. See Biron v. Mount, 24 Beav. 642.) Until, however, the creditors have assented to the trust, and given notice thereof to the as- signee, an assignment of this kind, in which the creditors are not parties and have not executed, is deemed revocable by the debtor, in Equity as well as at Law, whether the creditors are individually named or not. (St. § 1036 b; Steele v. Murphy, 3 Moo. P. C. 445.) Where creditors have acted under a deed of composition, and treated it as valid, the Court of Chancery will also act under it and treat it as valid as against the assignor, though the creditors have not executed it within the time prescribed. (2 Sp. 354.) Whore there is an assignment to two trus- tees, and one assents and the other dissents. EXPRESS PRIVATE TRUSTS. 139 the property passes to the assenting trustee. J"- ii- (2 Sp. 351.) ''— ■ XV. In those cases where a consignment xv. Eevo- - cafoleness of or remittance is made, with orders to pay aconsign- ' i. ./ ment or over the proceeds to a third person, the ap- .'^^"'"'™°^- propriation is not absolute, but revocable at any time before the third person has assented thereto, and notice of the same has been given to the mandatory; for it amounts to no more than a mandate from a principal to his agent. And it will be revoked by any disposition inconsistent with the execution of the mandate. But after such assent and notice, the thii-d person may avail himself of it in Equity, without any reference to the assent or dissent of the mandatory; for his receipt of the property binds him to follow the order of his principal. (St. § 1045, 1046.) ' Where a person executes and delivers a RevociiMe- ness of a deed of conveyance of equitable property to conveyance a volunteer, or where the legal estate is P'^^^'iai^."'' transferred and a trust of it is declared in iJ,''fc°^,"o'f^ favor of a volunteer, and there is "nothing J^'"^^^^^ upon the face of the transaction or from jf contemporaneous evidence to show that it was intended to be revocable, it cannot be revoked or avoided in any way. . And even 140 EXPRESS PRIVATE TRUSTS. cIf III 'f t^6 donor should procure a re-transfer of stock by the trustees, and, where it is in writing, ehould cancel the instrument, and by will make a provision for the same cestuis que trust, the settlement will be binding; and unless the subsequent provision is ex- pressed to be substitutionary, the cestuis que trust, if the gift is not by way of portion, will take both ; but they will have their election, if it is expressed to be in substitu- tion. And stock not being within the Stat. 27 Eliz. c. 4, a purchaser of it from the donor cannot avoid the voluntary settlement or gift. (2 Sp. 882—883; see supra, 102.) The keeping in the donor's possession a deed so executed as to pass the estate, is not of itself sufficient to enable the donor to revoke it by cancellation or by will ; for, the estate having passed, it would require the active interference of the Court of Chancery to re-vest the estate ; and it is no ground for such interference that the act was foolishly or inconsiderately done. (2 Sp. 885.) XVI. Effect XVI. Where a will contains a direction of a direc- tion or or power to raise money out of the rents and ou'f of"eSto profits of an estate to pay debts or portions, ^r ebts, ^^^ ^jjj ^]^g money must bo raised and paid without delay, Courts of Equity have so con- EXPRESS PRIVATE TRUSTS. 141 strued those words as to give a power to raise J"- JJ; ° ^ Cap. III. by sale or mortgage, unless restrained by other words. (St. § 1064, 1064 a; 2 Sp. 316.) XVII. Prior to the enactments which xvii. obu- •111 1 • 1 1 gation of Will be presently mentioned, where real purehaserto see to the property was devised to be sold for, or was application 1 r J 'of the pur- charged with, the payment of definite and ^^^ng" ascertained sums only, and such payment was ^les.'^^ to take place at the time when the required amount was to be raised, the purchaser of such property was bound to see that the pur- chase-money was applied in the fulfilment of the trust, unless expressly exempted by a provision by the author of the trust. But where the pi-operty sold constituted the nat- ural and primary fund for the payment of debts generally, or was expressly charged with, or conveyed or devised for, the payment of debts generally, and therefore, in order to ascertain the sums to the paymen't of which the projierty was liable, It would be necessary for the purchaser to institute proceedings in Chancery, or where the purchaser, if bound to see to the application of the money, would be involved in a trust of long continuance ; there, the purchaser, unless he had notice that there were no debts, or notice of fraud. 142 EXPRESS PRIVATE TRUSTS. Tit- II- was not bound to see to the application of Cap. Ill '^■^ the purchase-money. (See St. § 1126, 1127, 1128, 1130—1134; Mliot v. Merryman, 1 Lead. Cas. Eq., 2d ed. 45 et seq.) Specific In illustration of these rules, it may be illustration observed, that asthepersonal estate, whether of the above rules as to consisting of chattels personal or of chattels the pur- ° ^ chaser's j-eal, IS liable at the Common Law, and con- obligation. ' ' stitutes the natural and primary fund for the payment of the debts of the testator generally, the purchaser of the whole or of any part of it, without notice that there were no debts, or that the sale was not made for paj'ment of debts, was not bound to see that the purchase-money was applied by the ex- ecutors in the discharge of the debts (St. § 1126, 1128; 2 Sp. 372, 377), even if the testator had directed his real estate to be sold for payment of debts, whether specified or not, and had made a specific bequest of a part of his- personal estate for a particular purpose, or to a particular person, although such specific bequest was known to the pur- chaser, provided he had no reason to suspect anj^ fraudulent or unauthorized purpose; for, otherwise, before a person could become a purchaser of personal estate specifically be- queathed, it would be indispensable for him EXPRESS PRIVATE TRUSTS. 143 to come into a Court of Equity to have an ^J- jj^ account taken of the assets of the testator; and of the debts due from him, so as to ascertain -whether it was necessary for the executor to sell. (St. § 1129; 2 Sp. 375, 376, 377.) The same rule, for the same reason, applied to real estate devised for or charged with the payments of debts generally (St. § 1130 ; 2 Sp. 380, 382); even though the trust was only to sell, or was a charge for, so much as the pei'sonal estate was deficient to pay the debts, and even though a speciffc part of the real estate was devised for a particular pur- pose or trust, if the whole real estate was charged with the payment of debts gene- rally by the will. If, however, the trustee has only a power to sell, and not an estate devised to him, then, unless the personal estate is deficient, the power to sell does not arise. (St. § 1131; 2 Sp. 382.) Where, in cases of real estate, the trust was for the payment of legacies or annuities only, or of specified or scheduled debts alone, or of both, but not of debts generally, the rule was different; for they are ascertained, and the purchaser must therefore see that the money is duly applied. But where the 144 EXPRESS PRIVATE TRUSTS. Tit. iIj devise was for payment of debts generally, and also for the payment of legacies or annu- ities, the purchaser was not bound to see to the application of the purchase-money; because, to hold him liable to see the lega- cies or annuities paid would in fact have involved him in the necessity of taking an account of all the debts and assets. (St. § 1132; 2 Sp. 379, 382, 386, 389.) And the purchaser was not bound to see to the application of the purchase-money, where the specific objects of the trust were not pointed out. (2 Sp. 381.) But if there was collusion between the purchaser and the trustees, who were guilty of a misapplication, or if there was notice that the sale or mortgage was made for the purpose of a breach of trust, the estate was liable. (2Sp. 384.) / 7/ i J equitable coexist Separately and distinctly in the estates have jr ,/ j existence** Same person, unless they are both coex- tensive and of the same quality; in which case the equitable estate will merge in the legal estate, or rather will so coalesce with it as to cease to have any separate exist- ence. (See 2 Sp. 879, 880.) ( 149 ) CHAPTBE IV. OF EXPRESS CHARITABLE TRUSTS (a). I. Charities are so highly favored in the tit. n. Law, that charitable gifts have received a more liberal construction than gifts to favored, individuals. (St. § 1165; 2 Sp. 246, 247.) Thus— 1. In regard to the want of proper trustees, in regard to ° ^ ^ . ' the want of if a testator makes a bequest for charity to proper ^ ■' trustees; such persons as he shall afterwards name executors, or to such persons as his executors shall name, and he appoints no executors, or the executors die in the lifetime of the testator, and no others are appointed ; or if the trustees of a charitable legacy all die in the testator's lifetime; or if a corporation intrusted with a charity fails ; the Court of (a) On the subject of jarisdiction in case of Charities, the reader is referred to Mr. 0. D. Tudor's valuable work on the Law of Charitable Trusts, 2d ed., and to Story's Eq. Jur. ^ 1142 et seq., and the Act for the better Regu- lation of Charitable Trusts, 16 & 17 Vict. u. 137, and the Acts to amend it, 18 & 19 Vict. u. 124, and 23 4 24 Vict. c. 136. And as to Roman Catholic Charities, see 2S A 24 Viet. c. 134. IS* 150 EXPRESS CHARITABLE TRUSTS. ^'J- J^ Chancery will execute the charity. (St. § 1165, 1166, 1177.) So if a legacy is given to persons who have no legal corporate capacity to enable them to take as a cor- poration ; as where a legacy is given to the churchwardens for a charitable pur- pose. And so if a corporation for whose use a charity is designed is not in esse, and cannot come into existence but by some future act of the Crown. (St. § 1169, 1170.) in regard to 2. The Court of Chancery will supply all Qc J eel's IQ convey- defects in conveyances, where the vendor is capable of conveying, and has a disposable es.tate, and the mode of conveyance does not contrE^vene any statute. (St. § 1171.) in regard to 3. In regard to the objects, it matters not tlie objects ; how uncertain the persons or objects may be. For if a bequest is made in the most general and indefinite manner simply for charitable u^es, or religious and charitable purposes, eo- nomine, the Court of Chancery will treat it as a valid charitable bequest, and will dispose of it for such charitable purposes as it shall think fi,t. But where the bequest may, in conformity to the express words of the will, be disposed of in charity of a discretionary, private nature, or be employed for any general benevolent or useful purposes, or EXPRESS CHARITABLE TRUSTS. 151 for any general purpose, whether charitable or otherwise, or for charitable or other general purposes, at discretion, the bequest will be void, as being too general and indefi- nite for the Court of Chancery to execute, and the property will go to'the next of kin. Hence if a man bequeaths a sum of money to such charitable uses as he shall direct by a codicil annexed to his will or by a note in writing, and he leaves no direction by note or codicil, the Court of Chancery will dispose of it to such charitable purposes as it shall think fit. (St. § 1167.) But a bequest for such benevolent, religious, and charitable purposes, or for such charitable or public purposes, as the trustees should thick most beneficial, is void. (See St. § 1157, 1158, 1164, note 4 to 6th ed., 1167, 1169, 1183.) And yet it has been held that a bequest for such charities and other public purposes in the parish of, &c., is a good charitable bequest, as it must mean public purposes for the benefit of that parish, and therefore would refer to charities within the meaning of the statute, 43 Bliz. c. 4. (JDolan v. Mac- dermot, L. E. 5 Eq. Cas. 60.) Where the giver has specified any partic- ular charitable object, which is contrary to Tit. n. Cap. IV. 15^ EXPRESS CHARITABLE TRUSTS. ^- ^ the policy of the Law, or from some other reason cannot be accomplished at all, or not in the way prescribed, the Court will devote the property to some other charitable pur- pose, if the nature of the gift, or the con- currence of other charitable gifts in the same instrument, indicates that, although the specified object was the favorite, yet it was not the exclusive objectof the giver, but that ' he would have substituted some other char- itable object, bad he imagined that his favorite design might possibly be incapable of being accomplished. But where no such indication appears (as where the testator's object is to build a church at W., and that cannot be effected), the next of kin will take. (See St. § 1167—1169, 1172, 1176, 1181, 1182; Russell v. Kellett, 3 Sm. & G. 264.) Where there are no objects ?» esse, but some may arise, the Court will keep the fund for them. And when there can be no such ob- jects as those which are specified, or when the specified objects cease to exist, the Court will remodel the charity. (St. § 1169, 1870, 1170 a, 1176; 2 Sp. 79.) in regard to 4. In regard to surplus income, if a tes- surplus 111 income; tator Clearly shows an mtention to devote the whole income of a property to charitable pur- EXPRESS CHARITABLE TRUSTS. 153 poses, it will be so applied, although his spe- Jjit: il cific charitable dispositions do not exhaust the whole income. (2 Sp. 248; Att.-Gen. V. Corp. of Beverley, 15 Beav. 540 ; 6 D. M. & G. 256, 265; 6 Ho. Lds. 189; Att.-Gen. V. Trin. Goll. Camb., 24 Beav. 383.) And when the increased revenues of a charity are more than sufficient for the specified objects " of charity, the surplus will not go to the heir at law or next of kin of the founder, but will be applied to the augmentation of the bene- fits of the charity, or to other charitable pur- poses. (St. § 1178, 1181; 2 Sp. 248; Phil- pott V. St. George's Hospital, 27 Beav. 107 ; Re Ashton's Charity, Id. 115.) 5. And to give another instance of the in regard to favor shown to charity, lapse of time is in time." Equity no bar in the case of charitable trusts. (St. § 1192 a; Att.-Gen. v. Corp. of Beverley, 6 D. M. & Gr. 256, 265.) But the Statute of Limitations, 3 & 4 "Will. IV. c. 27, s. 24, ap- plies to purchasers from charities. {Magda- len Coll. V. Att.-Gen., 6 H. L. 189 ; Att.-Gen. v. Bavey, 4 D. & J. 136.) II. Where money is bequeathed to charita- n. chan- ble purposes abroad, the Court of Chancery will secure the fund, and cause the charity to be administered under its own direction, 154 EXPRESS CHARITABLE TRUSTS. Tit. II. provided the charitable purposes are to be executed by persons residing within the jurisdiction of the Court. (St. § 1186, 1300.) But this will not be done, if the objects of the charity are against Law or public policy, unless the principle of such policy or Law is of a national or conventional, rather than of a universal and moral or religious character. (See St. § 1184, 1185.) III. Eeward III. It seems that, with a view to encour- to iuform- ers. age the discovery of charitable donations given for indefinite purposes, it is the prac- tice for the Crown to reward the persons who made the communication, if they can bring themselves within the scope of the charity, by giving them a part of the fund ; and the like practice takes place also in relation to escheats. (St. § 1192.) IV. Alter- IV. A charity cannot be altered by any g lan y. ^^^ agreement between the heir of the donor and the donees. (St. § 1175.) (155) CHAPTER V. OF IMPLIED TRUSTS. An implied trust is a trust which is found- tit. ii. ed on an unexpressed but presumable inten- — ^ ' tion. (See St. § 1195, 1254.) '''*°"'''°- 1. Where, in the case of a will or other i. Effectu- ating the instrument, the donor of a power has a general intention of general intention in favor of a class, and a the donor of '^ ' a power. particular intention in favor of individuals of that class to be carried out by the donee of the power, and the particular intention fails,' from its not being carried out by the donee of the power, the Court will treat it as a trust, and carry into effect the general in- tention in favor of the class. (St. § 1061 a ; 2 Sp. 82, 420 ; Harding v. Glyn, 2 Lead. Cas. Eq., 2d ed. 805 et seq.) Thus, if a fund is given to such of a cer- tain class of persons, or to a certain class of persons in such proportions, as a third per- son shall appoint, if no appointment is made, the objects named will take equally. (2 Sp. 83 J Salusbury v. Denton, 3 K. & J. 529; Heid V. Beid, 25 Beav. 469; Be White's 156 IMPLIED TRUSTS. Tit. II. Trusts, 1 Johns. 656: Lambert v. Thwaites, Cap. V. ' ' ' L. E. 1 Eq. Cas. 151.) But if a person, making no gift himself, merely empowers another to give property, the gift must be made, or no person can claim, though the persons to whom the intended gift was to be confined are named. (2 Sp. 84.) II. Where II. Where property is given upon trust, and the trusts fail, either entirely or par- tially, by reason of the failure of the intended objects or purposes, or some of them, or of the illegality or indefinite nature of the trusts, or the prop- or some of them, or otherwise : or where the erty is ' ' hausted by trusts are fully and finally fulfilled, without the trust, exhausting all the property out of which they were to be fulfilled, there is a resillting trust of such property, or of so much thereof as remains unexhausted, to the person creat- ing the trust, or to his heir or legal represen- tatives, unless there is sufficient evidence or presumption of a contrary intention, or the trust is a charitable trust. (St. § 1196 a, 1200; 1 Sp. 510; 2 Sp. 22, 80, 243—246; 1 Cru.T. 12 0. 1,§ 55, 56; 1 Jarm on Wills, 2d ed., 475, 482 ; Att.-Gen. v. GreenhlU, 23 Beav. 193.) Absolute But where there is an absolute, and, for gilt, with an ineffectual anything that appears to the contrary, a IMPLIED TRUSTS. 157 beneficial gift, with an ineffectual or partial tit. il trust engrafted on it, the property, or so ~r. much as is unexhausted by such partial trust, '^I'^n? will remain in the donee. (See 1 Sp, 510 ; '""''°- 2 Sp. 23, 80.) And where there is an abso- lute gift, with an illegal condition, the con- dition is void, and the donee may retain the whole : as where a testator bequeathed lease- hold property upon condition that the legatee should assign a particular part to a charity. (2 Sp. 229.) III. An implied resulting trust also arises m. convey- ance with- where a conveyance, transfer, devise, or be- out a con- •^ ' ' sideration quest of land or other property, without any l^^or*"*"* consideration, express or implied, real or ''^"^'■ nominal, purports or is proved to have been made upon trust, but no distinct use or trust is stated. (St. § 1197, 1199; 2 Sp. 57, 199, 225, 226 ; Briggs v. Fenny, 3 Mac. & Gord. 546.) If there are any circumstances to show that a trust was intended, then the onus of proof is on the donee, to prove that a bene- ficial gift to him was intended. If there are circumstances from which it can be made out that it would be a fraud in the grantee to retain the property as his own, parol evi- dence may be given of such circumstances. 14 158 IMPLIED TRUSTS. Ti^ H- If no such circumstances exist, the convey- ance or transfer, if perfect, will be regarded as a beneficial gift. (2 Sp. 199.) If a devise is to an infant or a married woman, the pi-esumption is against the devise being upon trust ; yet this presumption must yield to the fair construction of the will, if, according to that, the testator appears to have intended a trust. (2 Sp. 225.) A discretion as to the application of the property given may be so large, that the gift may amount to an absolute gift; as where there is an uncontrolled power to give away the property as and to whom the donee may think fit. But if the discretion is limited to certain general purposes, though they may be too indefinite to be enforced, the donee is a trustee. (2 Sp. 225.) IV. iJmi- I^' Where a person parts with or limits a pa'rScuiar particular estate only, and leaves the residue ouiy^^^ undisposed of, the residue results to him, even though there may be a consideration. (St. § 1199.) The heir will take, as personal estate, the benefit of the surplus interest in a term or other particular interest carved out of the inheritance for a particular purpose which does not exhaust the whole, as against the IMPLIED TRUSTS. 159 devisee, where the devisee takes only what ^it. n. remains after the particular interest so given is carved out. (2 Sp. 230.) A legacy to the heir or next of kin will not of itself preclude their claim to the surplus undisposed of. Nor will a bare intention to exclude, however expressed, though accom- panied by words of anger or antipathy or even negative words, be sufficient to exclude the heir in respect of the beneficial interest in real estate undisposed of, or the next of kin in respect of personalty, unless it is either specifically or as part of a fund effectually de- vised or bequeathed away to some one else, either directly, or by the same kind of ne- cessary implication as would in other cases be admitted to constitute an actual gift. (2 Sp. 232.) V. Before the Statute 1 Will. IV. c. 40, v. unais- ' posed of where a testator made no express disposition J^jfte's^ of the residue of his personal estate, the estatei"' executors were at Law entitled to such residue ; and Courts of Equity, as the Act recites, so far followed the Law, as to hold the executors to be entitled to retain such residue for their own use, unless it appeared to have been the testator's intention to ex- clude them from the beneficial interest 160 IMPLIED TRUSTS. cIpv' therein. In that case, they were held to be trustees for the person or persons who would have been entitled to such estate under the Statute of Distributions, if the testator had died intestate. And Equity laid hold of any circumstance or expression in the will, which might appear to rebut the pre- sumption of a gift to the executors, and convert them into trustees for those on whom the Law would have cast the surplus in case of a complete intestacy. (See St. § 1208 and note ; Elcock v. Mapp, 3 CI. & Fin. 507—508 ; Underwood v. Wing, 4 D. M. & G. 633,- 656, 659 ; Powell v. Merrett, 1 Sm. & G, 381 ; Cradock v. Owen, 2 Sm. & G. 241 ; Bead v. Stedman, 26 Beav. 495 ; Saltmarsh v. Barrett, 29 Beav. 474.) The stat. 1 "W. 4 fur- thers the views of Courts of Equity, in nar- rowing the application of the rule of Law, by enacting, as to wills made by persons who should die after the first day of September, 1830, that the executors shall be deemed by Courts of Equity to be trustees for the per- sons (if any) who would be entitled under the Statute of Distributions in respect of any residue not expressly disposed of, unless it should appear by the will, or a codicil there- to, that the executors were intended to take IMPLIED TRUSTS. 161 such residue beneficially. (See Harrison v. ^ir. n. Harrison, 2 Hem. & Mil. 237.) VI. Where real estate is directed to be vi. untiis- posed ol sold for certain purposes, so much of the projiuceof ^ ^ ' real estate. real estate, or the produce thereof, as is not effectually disposed of by the will at the testator'sdeath, from silence, ortheineffieacy of the will itself, or from subsequent lapse, results to the heir, unless the testator has sufficiently declared his intention that the produce of the real estate should be deemed personalty,whether such purposes take effect or not ; and where the sale is necessary, it results to the heir as personalty ; but where the sale is unnecessary, it results as part of the old use, and descends to him as realty. (2 Sp. 233 ;. Ackroyd v. Smdthson, 1 Lead. Cas. Eq. 2d ed. 690 etseq.; Taylor v. Taylor, 3 D. M. & G. 190; Bobinson v. Governors of London Hospital, 10 Hare, 19 ; Buchanan V. Harrison, 1 Johns. & H. 662, 675.) If the testator directs, either expressly or by necessary implication, that the proceeds of the real estate shall be considered as having been converted into personalty before his death, and a fortiori, if he directs that it shall be treated as personal estate for every purpose, whether disposed of by bis will or 14* 162 IMPLIED TRUSTS. Tit. n. not, and whether as regards legatees or next of kin, such a direction operates to give the next of kin, as against the heir, any portion of the proceeds that may lapse or may not he effectually disposed of. (2Sp.237.) But a mere direction that the proceeds of the real estate " shall he deemed part of the personal estate," or even that they shall be " con- sidered to all intents and purposes part of the personal estate," or " shall be a fund of personal and not of real estate," or a refer- ence to a mixed fund by the name of " per- sonal estate," is not sufiScient to give the surplus of the real estate to the next of kin. And any purpose, however limited, as payment of costs, apparent upon the face of the will, with reference to which the conver- sion might have been directed, is conclusive against the next of kin. (2 Sp. 238; Taylor V. Taylor, 3 D. M. & G. 190; Robinson v. Governors of London Hospital, 10 Hare, 19.) If a testator converts his real estate for all the purposes of his will, so as to affect the character of the property as between the real and personal representatives of persons taking under the will, that will not prevent the heir from taking any part which is undisposed of, by way of resulting trust. IMPLIED TRUSTS. 163 (2 Sp. 234.) But what he so takes will vest tit. n. in him as personal estate (2 Sp. 242), unless the other parts are devoted to the payment of charges, and he chooses to pay them off, and thereby prevent the sale, and take the estate. (2 Sp. 234.) "Where real estate is not made a subsidiary undisposed of part of fund, but a testator creates from real and mixed fund, personal estate a mixed and general fund, and directs the whole of that fund to be applied for certain purposes, as for the pay- ment of debts and legacies, there he in effect directs that the real and personal estates, which have been converted into that fund, shall answer the stated purposes pro rata, according to their respective values. If any of those purposes fail, then the part of the fund which upon this principle would other- wise have been applicable to those purposes, is undisposed of. So far as that part of the fand has been composed of real estate, the heir is to have the benefit of it, as so much real estate undisposed of, whether the estate be eventually sold or not; and so far as that part of the fund has been composed of per- sonal estate, it is personal estate undisposed of, for the benefit of the next of kin. (2 Sp. 235.) 164 IMPLIED TRUSTS. Tit. II. Cap. V. Undisposed of part of money di- rected to be converted, or of the produce thereof. Faihire of objects for conversion under nant, upon the principle that acts capable of being considered as done in fulfilment of an obligation shall be so construed. (St. § 1210; 2 Sp. 204—206; Wilcocks v. Wilcocks, 2 Lead. Cas. Eq. 2d ed. 345 et seq.; Blandy V. Widmore, id. 347 et seq.) And where a trustee or agent is bound by a trust to lay out money in landj if he actually lay 176 IMPLIED TRUSTS. Tit. n. it out, the act -will, if possible, be presumed to have been done in execution of the trust. (2-Sp. 204 — 206; Manningford v. Toleman, 1 Coll. C. C. 670; JEJx parte Poole, 11 Jur. 1005.) XI. Cove- XI. It is a general rule, that if a settlor nant to settle lands, covenant to convey and settle lands, •with- out specifying any in particular, such cove- nant will not constitute a specific lien on his lands, and the covenantee will be deemed a creditor by specialty only (St. § 1249) ; for he may have intended to purchase land for the purpose, instead of settling any part of the land he then had. XII. coiiat- XII. Where an assignor of a debt has eral securi- ties for a collateral securities for the debt, the as- debt as- ' Bigned. signee will be entitled to the full benefit of such securities, unless it is otherwise agreed between 'the parties. Thus, the assignee of a debt secured by a mortgage, will, in Equity, be held entitled to the benefit of the mortgage. (St. § 1047 a.) XIII. Trust XIII. Equity implies a trust as to orna- as to orna^ mental tim- mental timber in favor of the objects of subsequent limitations. So that a tenant for life, or a tenant in fee, with an executory devise over, may be restrained from abusing his legal power, by cutting down ornamental IMPLIED TRUSTS. 177 timber, which is called equitable waste. (2 tit. ii. Sp. 305 ; Garth v. Cotton, 1 Lead. Cas. Eq. 2d ed. 559 et seq. ; Turner v. Wright, 1 Johns. 740.) XIV. An implied trust arises in favor of xiv. Trust '^ of wife's the wife, when she I'oins with the husband in mortgaged ' ^ property. effecting a mortgage upon her property, and there is no recital and no special circum- stances to show that her interest was in- tended to be changed beyond the creation of an incumbrance, and yet the equity of redemption is reserved to the husband. (2 Sp. 306 ; Huntingdon v. Huntingdon, 2 Lead., Cas. Eq. 2d ed. 838 et seq.) (178 ) CHAPTER VI. OF CONSTRUCTIVE TRUSTS. Tit. n. Implied trusts, and constructive trusts, as Cap. VI. ^— already observed, are frequently confounded Implied and constructive Or classcd together: and the same trusts are trustfi often confounded, sometimes designated by the name of im- plied trusts, and at other times by that of constructive trusts. (1 Sp. 509, note (a).) Definition But a Constructive trust, as distinguished of a con- structive both from express and from implied trusts, may be defined to be a trust which is raised by construction of Equity, in order to satisfy the demands of justice, without reference to any presumable intention of the parties. (See St. § 1195, 1254 ; 1 Sp. 509.) I. Repairs I. A Constructive trust may arise where a or improve- ments, person who is only joint owner, acting bond fide, permanently benefits an estate by re- pairs or improvements ; for, a lien or a trust may arise in his favor, in respect of the sum he has expended in such repairs or improve- ments. So, where a person lawfully in pos- CONSTRUCTIVE TRUSTS. 179 session under a defective title, has made ^it. n. ' Cap. VI. permanent, improvements, if relief is asked in Equity by the true owner, he will be compelled to allow for such improvements ; for, he who seeks for Equity must do Equity. (St. § 1234—7 ; 2 Sp. 206 ; 2 Lead. Cas. Eq. 2d ed. 520; Kay v. Johnston, 21 Beav. 536.) But if a tenant for life thinks fit, of his own discretion, or with the consent of trustees, to expend money in improve- ments, he is not entitled to have the money repaid out of the corpus ; so that if he becomes the purchaser of the property, he will not be entitled to a deduction from the purchase-money in respect of the improve- ments. {Dixon V. Peacock, 3 Drewry, 388, 392.) II. So, where executors, by mistake, but n. Payment of legatees bona fide and without fault, have paid legatees or aistrib- ■' ; X- a ^jg„g before or distributees before a due discharge of all creditors. the debts, the latter are treated as trustees for the purpose of paying the debts; because they are not entitled to'^anything except the surplus of the assets, after all the debts are paid. (St. § 1251; 2 Sp. 297.) III. Where a person is under a covenant ni. Cove- nant or * or agreement, for valuable consideration, to agreement o ' to convey, convey, transfer, or pay money or other prop- transfer, or 180 CONSTRUCTIVE TRUSTS. ^'p vi. '^^^y *° ^^ ^^^ *^® ^^^ "^ benefit of another, a constructive trust arises in favor of the pay money property, latter against the former and his representa- tives, and those claiming under him as volun- teers or with notice of the covenant or agree- ment; because, where things are covenanted or agreed to be done. Equity treats them, for many purposes, as if they were done. (See St. § 1212, 1231.) Hence, where the Court is satisfied by parol evidence that a marriage took place on the faith of representations, as to a settle- ment, it will direct a settlement in accordance with those representations, as against the person making them, or his devisees, {Prole v. Soady, 2 Gifl; 1.) Nature of, And 80 a Constructive trust arises when for.thcven- the purchasc-mouey of an estate is not paid. dor's lieu. , _ , . , in such case the vendor has a lien on the property in Equity ; that is, a hold upon it for the satisfaction of the purchase-money; and, to the extent of the lien, the purchaser becomes a trustee for the vendor. (See St. § 1215, 1217—1220; Mackreth v. Symmons, 1 Lead. Cas. Eq. 2d ed. 235 et seq.) And although, in some cases, it is reasonable to presume a tacit consent or agreement that the vendor should have such a lien, yet the CONSTRUCTIVE TRUSTS. 181 lien is not strictly attributable to such a tit. il consent or agreement, but is founded on the most obvious principles of natural justice. (See St. § 1219, 1220.) In general, the vendor has such a lien : where it originally and the burden of proof is on the purchaser, exists. to establish that in the particular case it has been intentionally displaced or waived by the consent of the vendor. (St. § 1224.) If, on the face of the conveyance, the consideration is expressed to be paid, and even if a receipt is indorsed on the back of the conveyance, and yet the money has not actually been paid, the vendor has a lien. (St. § 1225.) And if a security has been taken for the money, the burden of the proof has been adjudged to lie on the purchaser, to show that the vendor agreed to rest on the security and to dis- charge the land ; or, at most, the taking of a security has been deemed to be no more than a presumption, under some circumstances, of an intentional waiver of the lien, and not as conclusive of the waiver. (St. § 1226.) Where the vendor has a lien against the continu- ance vendee, it continues, notwithstanding any thereof. devolution or transfer of the estate, except where it is extinguished by the counter- vailing Equity of a bond fide purchaser for 16 182 CONSTRUCIIVE TRUSTS. Tit. il valuable consideration without notice, when clothed with the legal title. Against So that It cxists against the vendee and his whom it - eiiets. heir, and against volunteers claiming under him ; against purchasers under him, with notice that he had not paid the purchase- money; against purchasers, even without notice, having an equitable title only; against assignees claiming by a general assignment under the bankrupt and insolvent laws; against assignees claiming under a general assignment made by a failing debtor for the benefit of creditors ; and against a judgment creditor of the vendee, at least befoBe an actual conveyance of the estate has been made to him. (See St. § 1228.) For, in each of these cases (except that of the bond fide purchaser for valuable consideration without notice, who has only an equitable title), the party in possession has obviously no more equity against the lien of the vendor, than the vendee himself had, but clearly stands in the same situation and subject to the same equity. And although the bond fide pur- chaser without notice, who has only an equitable title, has an equitj^ quite distinct from that of his vendor, the first vendee, yet the equity of such purchaser to retain CONSTRUCTIVE TRUSTS. 183 what he has paid for is only equal to that of ^^- ^j the first vendor to be paid for that which he has parted with; and when the equities are equal, and neither of the parties has the support of the legal title, the maxim applies. Qui prior est tempore, potior est jure. But the lien will not prevail against a bond fide purchaser for valuable consideration from the vendee, where such purchaser has paid his purchase-money, and taken a con- veyance of the legal estate, and had no notice, at the time of paying his money, that such vendee had not paid the purchase- money (St. § 1228, 1229); because, having given a valuable consideration for the estate, without notice, he has as much equity to re- tain what he has so paid for, as the original vendor has to be paid for that which he has parted with ; and, having this equal equity, the Court will not take from him the legal title with which he has. clothed himself, but ■will act upon the maxim, that where the equities are equal, the law shall prevail ; so that, in this case, the vendor's lien is virtual- ly extinguished by the countervailing equity of the purchaser from the vendee. But where a vendee has sold the estate to a bond fide purchaser without notice, if the sub- 184 CONSTRUCTIVE TRUSTS. ^p ^ purchase-money has not been paid, the original vendor may proceed against the estate for his lien, or against the sub-pur- chase-money in the hands of such purchaser; (St. § 1232.) Where the vendee has sold only a part of it, the part retained by him is primarily chargeable with the lien. Where he has sold different parts to different persons, the lien is to be borne rateably between them. (St. § 1233 a.) e7t M^^' ^^' ^^ ^ trustee, or other person standing profltemlde in a fiduciary relation, acquires property, or in afiduct- makes a profit by means of transactions within the scope of his agency or authority, or if a person employs another's property in any trade or speculation there will be a con- structive trust, as to the property so acquired or the profits so made, for the benefit of the cestui que trust, principal, owner, or other party standing in the opposite relation. (See St. § 1211, 1211 a, 1261 ; 1 Sp. 512 ; 2 Sp. 208, 299, 300 ; Fox v. Mackreth, 1 Lead. Cas. Eq. 2d ed. 92 et seq.; Robinson v. Pett, 2 Lead. Cas. Eq. 2d ed. 206 et seq.) So that, if a trustee should purchase a lien or mortgage on a trust estate at a discount, he would not be allowed the benefit of the difference, but ary relation. CONSTRUCTIVE TRUSTS. 185 the purchase would be a trust for the cestui ^ra. n. que trust. So if a trustee or a partner should renew a lease of the trust or partnership estate, he would be a trustee of such renewed interest for his cestui que trust or copartner, even though the lessor may have refused to grant a renewal to the cestui que trust or co- partner. (St. § 2211; 1 Sp. 512; 2 Sp. 208, 299, 300; Keech v. Sandford, 1 Lead. Cas. Bq. 2d ed. 36 et seq.; Clegg v. Edmond- son, 8 D. M. & G-. 787.) So if an agent, who is employed to purchase for another, pur- chases in his own name or on his own account, he will be held to be a trustee for the principal, at the option of the latter. (St. § 1211 a.) V. Upon analogous principles, if a mort- v. Renewal '^ & 1 i- > of lease by cagee or a person having a limited interest aperaon o o u o having a in leasehold property, renews the term on his -jj^j^gt, own account, he will be held to be a trustee for all the persons interested in the old lease. (1 Sp. 512; 2 Sp. 299, 302, 303.) The person so converted into a trustee of a renewed lease is entitled to the costs and ex- penses of renewal, with interest, and to com- pensation for repairing, building, and lasting improvement; and he may retain therenewed lease to secure the payment. (2 Sp. 304.) 16* 186 CONSTRUCTIVE TRUSTS. Tit. H. Cap. VI. VI. Wrong- ful con- version or alienation of trust property VI. In general, whenever property of one kind has been wrongfully converted into pro- perty of another kind, by a trustee or agent, the right in rem of the principal or cestui que trust ceases, if the means of ascertain- ment fail ; which of course is the case when the subject-matter is turned into money, and mixed and confounded in a general mass of property of the same description. But if the property which has been so substi- tuted can be ascertained to be such, it will be liable to the rights of the cestui que trust or principal to which the property converted was subject. (See St. § 1158, 1259-60; 2 Sp. 303 ; Bobinson v. Pett, 2 Lead. Cas. Bq. 2d ed. 206 et seq.) But in cases of this sort, the cestui que trust or beneficiary is not at all bound by the act of the other party. He has an option to insist on having that into which the trust property has been converted, or to disclaim any title thereto, and resort to any other remedy to which he is entitled, either in rem, or in personam. (St. § 1262.) But he can- not insist on repugnant claims : so that, in the case of a sale of stock by a trustee or executor, in violation of his trust, the party beneficially entitled may either oblige the CONSTRUCTIVE TRUSTS. 187 trustee or executor, to replace the stock, or tit. n. ' * ' Cap. VI. he may affirm his conduct and take the sum at which he has sold it, with interest and any further profits he may have made by the sale ; but the party beneficially entitled cannot insist on having the stock replaced, and having the interest instead of the divi- dends, or on taking the money, and having the dividends as if the stock had remained. (St. § 1263.) If, however, the trustee conveys the trust property to a 6ond_/?/^\Jbr((f/^^ acts and defaults of his co-trustees to ' which he is privy, and in which, though without any corrupt motive, he expressly, tacitly, or virtually acquiesces, or which would not have happened but for his own act or default. Thus, if two trustees have properly sold out trust moneys, and one of them hands the cheque for the proceeds to the other, who misapplies the money, they are both liable. {Trutch v. Lamprell, 20 Beav. 116 ; Morton v. Brocklehurst, 29 Beav. 504.) And so if two trustees execute a release for trust money, which is then re- ceived by one and invested by him on im- proper security, the other is liable : for it was his duty to see that it was properly in- vested, (Thompson v. Finch, 22 Beav. 316.) And where two trustees, who were directed to invest on mortgage or in stock, retained money in a bank, and one died, and the other applied it to his own use, it was held that TRUSTEES, EXECUTORS, ETC. 207 the estate of the former was liable, though cl"--^!^ the other might have sold out stock on the death of his co-trustee. (^Qibhins v. Taylor, 22 Beav. 344.) And the same rule applies to executors and other persons standing in a fiduciary relation. But trustees and others standing in a fiduciary relation are not otherwise responsible for the acts or defaults of each other. (2 Sp. 918, 928.) There is, however, an important distinc- Distinction .... . . between tion in connection with this point, between trustees and executors in the case of mere executors and the case of "gTiJ *<> , the eifect of trustees; which, nevertheless, does not mil- joining J" ' ' ' receipts. itate against the application of the above- stated rule both to trustees and executors, but is founded in the different power with which they are legally invested, and amounts only to this : that a particular circumstance which would afford a presumption of the per- formance of an act involving responsibility, in the case of an executor, will not afford any presumption thereof in the case of a trustee. Thus trustees have only a joint interest, j)Ower, and authority, and must all join both in conveyances and receipts ; and yet it would be impracticable in some cases, and expensive and inconvenient in others, to require that all should together actually 208 TRUSTEES, EXECUTORS, ETC. CAP^'vii J'^ceive the trust money from the person by whom the same may be payable. Hence, it cannot be inferred from a trustee's joining in a receipt that he has received any part of the money. But where there are co- executors, each has a several right to re- ceive the debts due to the estate, and all other assets, and is competent to give a valid discharge by his own separate receipt ; and therefore, if they join in a receipt, it is purely a voluntary act, and it will be pre- sumed that they jointly received the money. In each case, however, the same rule ap- plies as to responsibility for money received ; although, in the one case, the party, being a trustee, is not presumed to have done the act which would make him responsible, namely, the act of receiving the money 5 because the act done by him is as likely to have been a mere formal act, as not; whereas in the other case, the party, being an executor, is presumed to have done the act involving re- sponsibility; because he has done that which an executor, who has not actually received the money, is not called upon to do. (As to these passages respecting acts and defaults for which a trustee or other person standing in a fiduciary relation is responsible, see St. § TRUSTEES, EXECUTORS, ETC. 209 1280, 1280 a, and note; 2 Sp. 928, 929, 932; (Tit.h.^ Brice v. Stokes, 2 Lead. Gas. Bq. 2d ed. 725 et seq.) The trustee indemnity clause does not ex- T™stee •^ indemnity onerate a trustee from the consequences of o'a^e- a breach of trust. (Brumridge v. Brum- ridge, 27 Beav. 5.) Its insertion leads many, in ignorance of this, to accept a trust, and many others to be so remiss as to give their co-trustees the opportunity of committing breaches of trust, whereby such trustees are involved in a Chancery suit, ■which, however, often necessarily proves unavailing to remedy the loss occasioned to the cestuis que trust (a). XIV. " Every person who acquires per- xiv. Breach of sonal assets by a breach of trust or a devas- trust by an executor. tavit by an executor, is responsible to those who are entitled under th e will, if he is a party to the breach of trust. Generally speaking, he does not become a party to the breach of trust by buying, or receiving as a pledge, for money advanced to the executor at the time, anypartof the personal assets, even knowing them to be such, whether specifically given by the will or otherwise ; because the sale or (a) Tbe Stat. 22 & 23 Viot. u. 35, ». 31, provides that trust instruments shall be deemed to contain these clauses. 18* 210 TKUSTBES, EXECUTOES, ETC. Tit. 11 pledge is held to be prima, facie consistent with the duty of an executor. Generally speaking, he does become a party to the breach of trust by buying or receiving in pledge, any part of the personal assets, not for money advanced at the time, but in satis- faction of his private debt; because this sale or pledging is prima facie inconsistent with the duty of an executor." (^Per Sir John Leach, in Keane v. Roberts, 4 Mad. 357, cited St. § 580 ; see also 2 Sp. 373-4, 379.) And if an executor or administrator disposes of assets without a valuable consideration , the assets may be followed in specie, if distin- guishable : but if the property so transferred is money and not distinguishable, and the person taking it knew it to be part of a testator's or intestate's estate, the creditors, legatees, or next of kin, have a personal demand, to the amount of the assets so dis- posed of (2 Sp. 379.) XV. Joint XV. Where executors or trustees are breach of trust. jointly implicated in a breach of trust, all of them should, if possible, be brought before the Court, and should be made to contribute proportionably; especially where the trust property is to be brought back to be ad- ministered by the trustees, or whore a general TRUSTEES, EXECUTORS, ETC. 211 administration is involved. (See obscrva- „'^"-,|Jv ^ Cap. VII. tions of L. C. B. Eichards, In re Ghertsey Market, 6 Price, 278 ; Perry v. Knott, 4 Beav. 179; Munch v. Cockerell, 8 Sim. 219; Devaynes v. Robinson, 24 Beav. note to p. 99. But see contra, Ex parte Angle, Barn. 425.) But each of the trustees, who are jointly implicated in a breach of trust, is responsible for the entire loss, and liable to make it good (as in certain cases we have already noticed) ; so that the cestui que trust may, in ease of need, proceed against any or either of them singly or separately, even against the less guilty. (See Walker v. Symonds, 3 Swans. 75 — 78 ; Bradwell v. Catchpole, ib. 78, note. See also 7th Cons. Ord. rule 2 ; and Attorney- General V. Corporation of Leicester, 7 Beav. 176 ; Kellaway v. Johnson, 5 Beav. 319 ; Perry v. Knott, 4 Beav. 179 ; 5 Beav. 293 ; 2 Sp. 941.) And in such case, the trustee or trustees who may be so singly or sepa- rately compelled to make good the loss, may seek contribution from the others or other of them in another suit. (See Lord Eldon's judgment in Walker v. Symonds, 3 Swans. 76—78; 2Sp. 941.) XVI. If cestui que trust has for a long xvi. ac- quiescence 212 TRUSTEES, EXECUTORS, ETC. Tit. II. Cap. VII. in a breach of trust. XVII. Debt by breach of trust is a simple con- tract debt. XVIII. Power of trustee to bind the estate by a sale, &c. time acquiesced in the misconduct of his trustee, with full knowledge of it, a Court of Equity will not relieve him ; for vigilanti- bus, non dormientibus, cequitas subvenit. (St. § 1284 a.) XVII. The debt created by a breach of trust is only regarded as a simple contract debt, both at Law and in Equity, even where the trust arises under a deed execu- ted by the trustees; unless the trustee who committed such breach of trust has ac- knowledged the debt under seal (St. § 1285, 1826; 2 Sp. 936); or unless by deed he has agreed or declared that he will exe- cute the trusts. (Lynch v. Grant, 2 Drewry, 312.) XVIII. A trustee may bind the estate by a-conveyance to a bond fide purchaser, who had no notice at the time of paying his pur- chase-money (St. § 1264, and note ; Basset V. Nosworthy, 2 Lead. Cas. Eq. 2d ed. 1 et seq.) ; because, in that case, the trust is virtually extinguished by the countervailing Equity of the bond fide purchaser. But if afterwards the trustee repurchases or other- wise becomes entitled to the same property, the trust revives and re-attaches upon it. (St. § 1264.) And so, if a trustee or execu- TRUSTEES, EXECUTORS, ETC. 213 tor transfers trust funds upon the trusts of q^^-^\i a settlement made or to, be made upon his or ' her marriage, and the opposite party to the marriage contract had no notice of the fact that the party transferring was not benefi- cial owner of the funds, it has been held that the trusts of the settlement will attach upon the funds. (^Cooper v. Wormald, 27 Beav. 266.) The trustee may also bind the estate by a bond fide mortgage, or other specific lien, without notice of the trust. But the trust property will not be bound by any judgment or any other claim of creditors against the trustee. (St. § 977.) If, however, for a great number of years a trust for raising money remains unper- formed, and a sale or mortgage is proposed to be made by the trustees, without an ap- parent reason for the sale or mortgage, and without the concurrence of the parties who are in possession and receipt of the rents, the purchaser or mortgagee is under some obli- gation to inquire and see whether the trans- action is or is not a breach of trust. (^Stroug^ hill V. Anstey, 1 D. M. & G. 654.) Where a trustee is beneficially interested in part of a trust fund, and misapplies the 214 TRUSTEES, EXECUTORS, ETC. ca'p'-vii other part, his own part is liable to make good the other part. And it has been held that this liability exists even as against an assignee of the trustee's part, who had pre- viously put a distringas on it. ( Wilkins v. Sibley, 4 Gif. 442.) XIX. Li!> XIX. An executor or administrator is per- bility, duty, and power sonallv liable for the payment of debts m re- of executor '' '■ *' tratorw"*- ^V^^^ ^^^ ^'^ *^® extent of the personal as- sets, and it is his primary and paramount duty, with all convenient speed, to pay the debts out of the personal estate. And hence if the assets be sold or aliened by the execu- tors or administrators, or any one of them, for valuable consideration, the creditors can- not follow them : they are absolutely vested in the purchaser. (2 Sp. 372, 373.) If an executor or administrator has, except under the direction of the Court, or except in the case provided for by the stat. 22 & 23 Vict. c. 35, s. 29, paid away the residue in ignorance of the existence of any debt, he is still liable. (2 Sp. 921.) But an executor or administrator fairly stating the facts, and paying over the assets under the direction of (a) See Stat. 23 & 24 Vict. o. 145, s. 30, as to powers of paying debts, compromising, compounding, and refer- ring to arbitration. TRUSTEES, EXECUTORS, ETC. 215 the Court in an administration suit, is fully ^it n indemnified against all existing or contin- gent demands on the estate. {Waller v. Bar- rett, 24 Beav. 413 ; Bennett v. Lytton, 2 Johns. & H. 155 ; Williams v. Seadland, 4 Gif. 495.) And by the stat. 22 & 23 Vict. o. 35, s. 29, " where an executor or administrator shall have given such or the like notices, as in the opinion of the Court in which such executor or administrator is sought to be charged would have been given by the Court of Chancery in an administration suit, for creditors and others to send in to the executor or administrator their claims against the estate of the testator or intestate, such executor or administrator shall, at the expiration of the time named in the said notices or the last of the said notices for sending in such claims, be at lib- erty to distribute the assets of the testator or intestate, or any part thereof, amongst the parties entitled thereto, having regard to the claims of which such executor or ad- ministrator has then notice, and shall not be liable for the assets or any part thereof so distributed to any person of whose claim such executor or administrator shall not have had notice at the time of distribution 216 TRUSTEES, EXEOUTOKS, ETC. Tit. II. of the said assets or a part thereof, as the Cap. VII. ^ case may be; but nothing in the present Act contained shall prejudice the right of any creditor or claimant to follow the assets or any part thereof into the bands of the person or persons who may have received the same respectively." And an executor has the same protection under this Act as under a decree. (^Clegg v. Bowland, L. E. 3 Eq. Cas. 368.) ^ By the stat. 22 & 23 Vict. c. 35, s. 30, trustees, executors, or administrators may apply, by petition or summons, upon a written statement, for the opinion, advice or direction of a judge, on any question respecting the management or administra- tion of the trust property, or the assets of any testator or intestate. One of two or more executors may settle an account with a person who is accountable to the estate, so as to bind the others and the estate ; subject to any question of his liability to the parties beneficially inter- ested for any impropriety of conduct; and subject to this also, that if there is any fraud or gross error in the settlement of account, it may be a ground for reopening it. (6'miYA V. Everett, 27 Beav. 446, 454.) TKUSTEBS, EXECUTORS, ETC. 217 After an administration decree, an execu- „'■'", "v ' Cap. VII. tor can do no act to vary the rights of the — parties ; as by giving an acknowledgment to take a debtoutof the Statute of Limitations. (Phillips V. Beal (No. 2), 32 Beav. 26.) XX. Trustees to support contingent re- xx. tius- t66S to mainders are peculiarly considered as hon- support *■ '^ contingent orary trustees for the benefit of the family, remainders, and as entitled to exercise a discretion for that purpose. And hence a Court of Equity, except in special cases, will not order them to join in conveyances which may affect or destroy the remainders. And, on the other hand, in those instances where they have so joined, after the first tenant in tail attained his majority, no judge in Equity has gone the length of holding that he would punish them as for a breach of trust, even in a case where a Court of Equity would not have directed tlicra to join. Where, however, before the first tenant in tail is of age, trustees join in destroying the remainders, they are liable for a breach of trust; and so is every purchaser under them with notice. In some few cases, however, Courts of Eq- uity have compelled such trustees to join in conveyances which may affect or destroy the remainders, under peculiar circumstances 19 218 TRUSTEES, EXECUTOBS, ETC. Tit. II. Cap. VII. XXI. Equity will aid and direct trustees. Safety of trustees. of pressure to discharge incumbrances prior to the settlement ; or in favor of creditors, where the settlement was voluntary; or for the advantage of persons who were the first objects of the settlement; as, for example, to enable the first son to make a settlement on an advantageous marriage. (St. §995 — 7. Lewin on Trusts, 4th ed. 285—292.) XXI. Courts of Equity will assist the trustees, and protect them in the due per- formance of the trust, whenever they ask the aid and direction of the Court, as to the establishment, the management, or the ex- ecution of it. (St. § 961.) And in cases of substantial doubt, it is best to ask for the direction of the Court. (St. § 1276, note.) A trustee who commits a plain breach of trust is not protected from its consequences by the circumstance that he honestly took and followed the advice and opinion of his solicitor, whatever remedy he may have against his solicitor (2 Sp. 919), or that he committed it with the view -of saving his cestui que trust from ruin. (See 2 Sp. 920.) A married woman, who by her entreaties has persuaded a, trustee to commit a breach of trust to rescue her husband and family from ruin, has shortly afterwards made the TRUSTEES, EXECUTORS, ETC. 219 trustee liable for that breach of trust, by Jit. n. ' •' Cap. VII. filing a bill against him. (2 Sp. 920.) A trustee is not in all cases to be made liable upon the mere ground of his having deviated from the strict letter of his trust; for the deviation may be necessary or bene- ficial. But when a trustee ventures to de- viate from the letter of his trust, he does so under the obligation and at the peril of afterwards satisfying the Court, that the deviation was necessary or beneficial. {Har- rison V. Randall, 9 Hare, 407.) It is impossible ever to pronounce that a trustee or executor is safe from personal risk, unless he has acted in the execution of the trust under the directions of the Court of Chancery (2 Sp. 49), or is protected by the Stat. 22 & 23 Vict. c. 35, ss. 29, 30 (supra, 215,216.) XXII. A trustee is entitled to have the xxii. Mu- niments of muniments of title, and, in fact, it is his duty '■'*•'=■ to keep them in his possession, (2 Sp. 46.) Where there is any difficulty or danger, as regards the title-deeds of a trust estate, or the securities of a trust fund, the Court may provide for every such emergency, by or- dering the deeds or the securities to be de- posited in Court. (2 Sp. 46.) 220 TRUSTEES, EXECUTORS, ETC. cT"vn XXIII. If trustees are guilty of gross jj^^rr" negligence, mismanagement, or misconduct, remove^'" Or if, from any cause, there is a failure of anli'appotat trustees qualified and willing to act, new trustees will be substituted by the Court (a). (St. § 1287, 1289.) And if a trustee becomes insolvent, it is a good ground for his removal. {Harris v. Marris (No. 1), 29 Beav. 107.) And the Court has even removed a joint trustee from a trust, on the mere ground that the other trustees would not act with him; because if he were not removed, irrep- arable mischief might happen to the trust property or the cestui que trust. (St. § 1288 ; 2 Sp. 943.) XXIV. In- XXIV. In the case of a charitable trust, sertion of power to it seems the Court will direct a power to appoint new *■ trustees. appoint new trustees prospectively to be inserted in a deed appointing new trustees ; but not in the case of a private trust, unless it is authorized by the instrument constitu- ting the trust. (2 Sp. 37.) XXV. XXV. Before the stat. 1 Viet. e. 26, Where trus- teestook gs. 30, 31, trustees took the inheritance, in the fee. ' ' ' those cases where it was necessary, for the purpose of a trust created by will, that they should take the inheritance. And in (a) See Stat. 13 & U Vict. ». 115, S3. 27, 28. TRUSTEES, EXECUTORS, ETC, 221 the case of a devise to trustees for sale, ^J^-yn though only a part of the inheritance was . required to be sold, yet the Court considered them as trustees of the whole inheritance. (2 Sp. 295.) XXVI. When all the duties of a trustee xxvi. con- are at an end, and this is clearly shown to legal estate to cestui que him, and he has no notice of any disposition trust. or incumbrances made by the cestui que trust, he must, on demand, convey the legal estate to his cestui que trust, at the peril of paying the costs of any suit occasioned by his re- fusal. But in cases of real doubt or difficulty, a trustee, before he parts with his estate, is fully justified in requiring an indemnity from his cestuis que trust, or in seeking the directions and indemnity of the Court. (2 Sp.,48.) XXVII. A trustee is entitled to have his xxvii. accounts examined, and to have a settlement and settle- ment of of them. He is also bound to render proper accounts. accounts, if demanded, and to be always ready with them. If the cestui que trust is satisfied that nothing more is due to him, he ought to close the account, and give an acknowledgment equivalent to a release, though the trustee cannot oblige the cestui que trust to give a release under seal. On 19* 222 TRUSTEES, EXECUTORS, ETCi ca'pyii ^^^ other hand, if the cestui que trust is dis- satisfied with the accounts, he ought to require to have the accounts taken. He is bound to adopt one of these two courses: he is not at liberty to keep a Chancery suit han_ging for an indefinite time over the head of the trustee. (2 Sp. 46, 47, 921; Kemp v. Burn, 4 Gif. 348.) Duty of A trustee or executor is bound to render rendering other infer- every necessary information, and, if he have not all the necessary information, he is bound to seek for it, and, if practicable, to obtain it (a). (2 Sp. 921.) Breaking up Executors must be allowed a reasonable Mtabiisii- time for breaking up a testator's domestic establishment, and discharging his servants. {Field V. rechett (No. 3), 29 Beav. 576.) (a) On the subject of Trusts and Trustees, see etat. 1 Will. IV. 0. 60 ; 13 & 14 Vict. c. 60 ; 15 & 16 Viot. c. 55 ; 10 & 11 Vict. c. 96; 12 & 13 Vict. u. 74; 22 A 23 Vict. II. 35 i and 23 A 24 Viot. o. 38, =. 145. ment. ( 223 ) CHAPTEE VIII. OF THE SPECIFIC PERFORMANCE OF AGREE- MENTS AND DUTIES NOT ARISING FROM TRUSTS. I. By the Common Law, if a party who tit. ii. ' ^ •' Cap. VIII. ought to perform a contract or covenant, fails to do so, no redress could be had, at law. except in damages. (St. § 714.) II. In Equity a specific performance of a n. a spe- contract, covenant, or duty, will be decreed, formanoe where damages would not afford an exact fe^fj!? ™ compensation for the non-performance there- Snalea of, whatever may be the form or character Sordcom- ~ . . . , • . 1 . , pensation. of the instrument containing such contract or covenant, or giving rise to such duty. And hence it will be decreed in all cases of contracts respecting land ; because the local character, vicinage, soil, easements, or ac- commodations of the land, may give it a peculiar value in the eyes of the purchaser, so that damages, which would enable the purchaser to buy other land, of the very 224 SPECIFIC PERFORMANCE. CApVm s"'"'' marketable value, would not or might not be a complete compensation. And if a bond is entered into, with a penalty, Equity will not regard it as an option to do the act required or pay the penalty, but as an agree- ment to do the act at all events, of which it will enforce a specific performance. (St. § 715, 717, 718, 739—742, 746, 751, 783—786, 850, 1425.) III. Not III. But Equity will not interfere where where they ^ '' rcomp^fte* damages at Law would amount to a complete saS."" compensation. Hence a bill for specific per- formance of articles of apprenticeship cannot be maintained. ( Webb v. England, 29 Beav. 44.) And a performance of a contract for the sale of stock or goods will not be enforced in ordinary cases ; because damages at Law, calculated on the market price of the stock or goods, are generally equivalent, in point of value, to the delivery of the stock or goods contracted for; inasmuch as, with the damages, the purchaser may ordinarily buy stock or goods of the same kind and of the same value to himself. But a performance of a contract respecting stock, goods, or personal property, will be enforced, where damages at Law could not afford a complete compensation. (St. § 717—720, 746; Falcke SPECIFIC PBEFOEMANCE. 225 V. Gray, 4 Drew. 651 ; Guddee v. Butter, 1 cJ^viii ' Lead. Cas. Bq. 2d ed. 640 et seq. ; Bowling — V. Betjemann, 2 Johns, and H. 544.) And where the specific performance of a contract respecting chattels will be decreed on the application of one party, on the ground that damages would not be a complete compen- sation to him, Equity will entertain the like suit at the instance of the other party, though the relief sought by him is merely in the nature of a compensation in damages or value; for in all cases of this sort, the Court acts on the ground that the remedy ought to be mutual. (St. § 723.) The same rules apply to agreements respecting per- sonal acts, for the non-performance of which an exact compensation may sometimes be made by way of damages, while in others it cannot. (St. § 722—729.) IV. At law, contracts arid covenants to iv. At law, sell, convey, or transfer land or other prop- and cove- nants are erty, are considered simply as personal considered «/ ' i- */ ^ merely as and executory contracts and covenants, and ^na™e5,u. not as attaching to the property in any ''"^^' manner as a present or future charge or otherwise. (See St, § 714, 790.) But in but in Equity, as Equity, from the time of a contract for the performed, ^ •' ' in regard to sale of land, the vendor, and his heirs, and ™"^''" ' ' ' quences. 226 SPECIFIC PERFORMANCE. ' CA^vYii ^°y *'"® claiming as a subseqent purchaser under him, become, as to the land, trustees for the purchaser and his heirs, devisees, or vendees ; and the purchaser and his personal representatives become, as to the money, trustees for the vendor and his personal representatives. (St. § 788, 789, 790.) Every payment of purchase-money to the vendor transfers, in Equity, to the purchaser, a corresponding proportion of the estate. And hence where the purchase-money is to be paid by instalments, and the purchaser has paid some instalments, and then declines to complete, and is absolved from the liability to complete the purchase, owing to the default of the vendor, the purchaser has a lien on the estate for the money he has so paid, as against the vendor, and every mort- gagee of the vendor who simply gives him notice of his mortgage, without attempting to prevent the completion of the contract or the payments of the instalments. (Bose v. Watson, 10 H. L. Gas. 672.) Landarti- In like manner, land directed, articled, cled or devised tg conveved, Or devised to be sold and turned be sold, •' ' arUc^do/ '"^^ money, is reputed as money ; and money tol)^*""^* directed, articled, assigned, or bequeathed to ianr'^^'" be invested in land, has in Equity many of SPECIFIC PERFORMANCE. 227 the qualities of real estate, and in particular cJ^yYii is descendible and devisable as such. (St. § 790 ; Fletcher v. Ashburner, 1 Lead. Cas. Eq. 2d ed. 659 et seq. ; Dixie v. Wright, 32 Beav. 662.) But the person for whose benefit the conversion is to be made, may elect to take the property in its unconverted state. And this election he may make as well by acta or declarations clearly indicating a determi- nation to that effect, as by an application to a Court of Equity. (St. § 793, 1213.) But where it has vested in two or more persons, one cannot elect without the others or other. (Holloway v. Badcliffe, 23 Beav. 163.) In general, Courts of Equity do not in- cline to change the quality of the property as the testator or intestate has left it, unless there is some clear act or intention by which he has unequivocally fixed upon it through- out a definite and different character. (St. § 1214, 1214 a.) V. Where the specific execution of a con- v. specific perform- tract respecting lands would have been de- ance creed between the parties, it will be decreed between -»■ ' persons between all persons claiming under thom „nd?rthe in privity of estate, representation, or title, p*'^*^- unless other controlling equities have inter- vened. (St, § 788.) Hence, if the vendor, 228 SPECIFIC PERFORMANCE. Tit. II. Cap. VIU. Purchaser's heir may- require the money to be paid out of tlie personal estate. VI. Non- compliance with terms of agree- ment in non-essen- tial partic- ulars, or slight misde- scription. before completion, dies intestate as to his realty, his legal personal representative may- maintain a suit against his heir and the pur- chaser for a specific performance. {Eoddel V. Pugh, 33 Beav. 489.) And where the heir of the purchaser comes into Equity for a specific performance, he may in general require the purchase-money to be paid out of the personal estate of the purchaser in the hands of his personal representatives. (St. § 790.) VI. If the terms of an agreement, either through negligence or otherwise, have not been complied with in particulars which do not pertain to the essence of the contract, or if there has been a slight misdescription of the property. Courts of Equity will never- theless decree a specific performance in favor of the party chargeable with the non- compliance or misdescription, if compensa- tion can be made for any injury that may have been occasioned by the non-compliance or for the misdescription of the property. (See St. § 747, 748, 771, 775—777, and notes; Seton V. Slade, 2 Lead. Cas. Eq. 2d ed. 429, et seq.) At Law, time is of the essence of the con- tract. But in Equity it is held to be of the SPECIFIC PBEFOKMANCE. 229 essence of the contract only in cases of direct g^^'-^jj stipulation that it shall be so considered, or where it is obviously so from the nature of the case; as where a reversion is sold, or where the property sold is required for some immediate purpose, as trade or manufacture, or is in its nature of a fluctuating value, or is of a determinable character, as an estate for life, or the dealing is with an ecclesiastical corporation. And even where time is of the essence of the contract, it may be waived by proceeding in the purchase after the time has elapsed. On the other hand, although time may not be originally of the essence of the contract, still either party may, by a proper notice, bind the other to complete within a reasonable time. (^Parkin v. Tlio- rold, 16 Beav. 65; Hudson v. Temple, 29 Beav. 5.S6; Wells v. Maxwell (No. 1), 32 Beav. 408 ; Lord Banelagh v. Melton, 2 Dr. & Sm, 278 ; Sugd. V. & P. 14th ed. 257 et seq. ; St. § 776; 2 Lead. Gas. Bq. 2d ed. 442 et seq. ; Tilley V. Thomas, L. E. 5 Eq. Gas. 61.) VII. Where the vendor is incapable of vii. Want of title, or making a complete title to all the property substantial a I. I 1 J miadescrip- sold, or there has been a, substantial misde- ^°"'tof scription in important particulars, or the compUaSfe terms have not been reasonably complied ment.''^'^^^ 20 230 SPECIFIC PERFORMANCE. oS%ni ^'**^ °" ^^^ P^^* °^ ^'^^ vendor, Courts of Equity will generally allow the purchaser to proceed with the purchase, pro tanto ; that is, to have the contract specifically performed as far as the vendor can perform it, and to have an abatement made out of the purchase- money or a compensation. (St. § 779 ; Sug. V. & P. 14th ed. 305; Eughes v. Jones, 3 D. F. & J. 397, 315.) But this course will not be taken where the land is little more than half the quantity stated ; for in such a case, the purchaser must either take it at the price named, or may rescind the contract. {Earl of Durham v. Sir P. Legard, 34 Beav. 614.) vni. Acoi- VIII. Where a man has performed a val- dental iuca- pacity of uablc part of an agreement, but is incapable performing '- o ' i mainderof ^'^ performing the remainder, by a subse- menl'^^^ quent accident, without any default on his part, Courts of Equity will enforce the agree- ment in his favor (allowing such compensa- tion as may be just), in case he is not in statu quo as to the part which he has performed, but not otherwise. (St. § 772, 796, 797.) IX. Per- IX. In some cases, a performance of an formance submodo. agreement will be decreed, not according to the letter of the contract, if that would be unconscientious, but according to the change of circumstances. (St. § 775.) SPECIFIC PERFORMANCE. 231 X. Of course as agreement entered into cl^'vm by parties incompetent to contract, such as x. Igree- infants ajid femes covert, will not be enforced enforced! against them. Nor will it be enforced in parties were favor of such parties : because the remedy potent to contract, ought to be mutual. (St. § 787, 751, note ; Vansittart v. Vansittart, 4 K. & J. 62.) XI. Nor will Courts of Equity enforce a xi. Nor where the contract, although it is written, if the terms terms are ' ° ' not certain are not certain and definite in themselves; a^iideflnite. for, in such a case, they might decree pre- cisely what the parties did not intend ; and besides this, if any terms are to be supplied, it must be by parol evidence; and the ad- mission of such evidence would let in all the mischiefs intended to be guarded against by the Statute of Frauds. (St. § 767; Taylor v. Partington, 7 D. M. & G. 328.) XII. Courts of Equity will enforce an xii. En- forcing obligation imposed by will, without any con- voluntary sideration. (2 Spence's Bq. Jur. 255.) But they will not enforce, either against the party himself, or any volunteers claiming under him, any contract or any imperfect gifts inter vivos (not being donations mortis causa), or imperfect assignments of debts or other prop; erty, or executory trusts raised by a covenant or agreement, or defective or imperfect settle- 232 SPECIFIC PBKFOBMANCB. Cap^toi ^®'its or conveyances, which are not founded in a valuable consideration, even though the transaction be founded on a meritorious con- sideration, as in the case of a provision for a wife or child ; that is, Equity will not enforce them so far as something is sought beyond what, if anything, may be recovered under them at Law, although it will, if necessary give effect to any legal obligation created by them. But if a transfer, assignment, trust, settlement, or conveyance is complete, so that no act remains to be done to give full eflfect to the title, Equity will enforce it throughout against the party making or creating it, and his representatives, although it be merely volunta,ry. (Story's Eq. Jur. § 433, 787, 793, a, b, 973 ; 1 Spence's Eq. Jur. 507; 2 Spence's Eq. Jur. 52, 57, n. (e), 129, 254, 255, 285, 889—893, 898, 899, 907, 909—915; Fletcher v. Fletcher, 4 Hare, 67 ; Voyle v. Hughes, 2 S. & G. 18 ; Bridge V. Bridge, 16 Beav. 315 ; Weal v. OlUve, 17 Beav. 252; Scales v. Maude, 6 D. M. & G. 43.; Bening v. Ware, 22 Beav. 184; Tat- ham V. Vernon, 29 Beav. 604; Beech v. Keep, 18 Beav. 285; Donaldson v. Donald- son, 1 Kay, 711 ; Pearson v. Amicable As- surance Office, 27 Beav. 229; Woodford v. SPECIFIC PERFORMANCE. 233 • Charnley, 28 Beav. 96; Bilrow v. Bone, 3 ^J^'^vYii Gif. 538; Airey v. Hall, 3 Sm. & G-. 315; — ' Farnell v. Eingston, 3 Sm. & G. 337.) And simply to sign a declaration of trust in favor of the donee, is an effectual mode of effecting a voluntaiy transfer. And if a person directs by letter, though not for valuable considera- tion, an executor to pay over to another the share to which such person is entitled, and the letter is acted upon by the executor, it will operate as an assignment. {Kekewich v. Manning, 1 D. M. & G. 176 ; Grant v. Grant, 34 Beav. 34; Gilbert v. Overton, 2 Hem. & Mil. 110; Jones -v. Lock, Law Eep. 1 Ch. Ap. 25 ; Richardson v. Richardson, L. E. 3 Eq. Cas. 686; Lambe-v. Orton, 1 Drew. & Sm. 129.) A third person, particularly if a relation, may enforce in Equity a stipulation made by another in his favor, and for which the party who obtained it has given a valuable consideration plainly with a view of bene- fiting such third person, though such third person, as regards each of the contracting parties, may be a volunteer (2 Spence's Eq. Jur. 286) : as where a person who has contributed a valuable consideration to a settlement, has exacted, as part of the con- 20* 234 SPECIFIC PERFORMANCE. cJp%ni t*"^^*) that certain property shall be so settled as that the property, whether belonging to one of the parties or the other, shall go to some near relative, in the event of the in- tended limitation to the issue of the marriage failing to take effect. (2 Spence's Eq. Jur. 281.) But it would appear, that, if the party exacting the stipulation releases the other, the stranger cannot enforce it unless his condition in life has been altered by the stip- ulation. (See 2 Sp. Eq. Jur. 280, 281.) A grant or obligation which is voluntary, as regards the grantee or obligee, ceases to be voluntary, where, with the privity of the grantor or obligor, it forms the considera- tion on the faith of which a marriage is con- tracted and a settlement executed. {Payne V. Mortimer, 1 Gif 118.) xm. No XIII. Equity will not interfere, (1.) perform- Where, in ordinary cases, the contract has ance, where it bccome incapable of being substantially per- "rong or formed ou the part of the person seeking inequitable. j.eiief_ (St. § 736.) (2.) If the plaiptiff has been guilty of any negligence affecting the essence of the contract (St. § 771 ; 2 Lead. Cas. Eq. 2d ed. 442 et seq.); or if specific performance is sought by a purchaser, after he has permitted a long time to elapse, with- SPECIFIC PERFORMANCE. 235 out evincing a fixed intention to carry his cl"'vih contract into execution, although he may have paid part of the purchase-money, or after he has made frivolous objections to the title, and trifled or shown a backwardness to . perform his part of the agreement, especially if circumstances are altered. (Sugd. C. V. 181.) (3.) If there is a substantial defect in the title of the whole or the principal part of the property, not remediable before the decree. (4.) If there is a substantial misrepresentation or misdescription of the estate or property, in a matter unknown to the purchaser, and in regard to which he was not put upon inquiry; or if it appears upon the evidence that there was, in the descrip- tion of the property, a matter in which a person might bond fide make a mistake, and he swears positively that he did make a mistake, and his evidence is not disproved, the Court will not enforce the specific per- formance against him. {Leyland v. llling- worth, D. ¥. & J. 248 ; Biggins v. Samels, 2 Johns. & H. 460 ; Swaisland v. Dearsley, 29 Beav. 430 ; Cox v. Coventry, 31 Beav. 378 ; Dimmock v. Sallett, L. E. 2 Ch. Ap. 21 ; St. § 778.) (5.) If the title is doubtful : and a doubtful title is one on which the Court 236 SPECIFIC PBRFORMAKCE. CAP%nL ®it^®^ itself entertains doubt, or considers that other competent persons may reason- ably entertain doubt, although the Court itself may have a favorable opinion of the title ; for the Court has no means of settling the question as against adverse claimants, or of i ndemnifying the purchaser,if its own opin- ion should turn out not to be well founded. {Pyrke v. Waddingham, 10 Hare, 7, 10 ; Sykes V. Sheard, 2 D. J. & S. 6 ; Collier v. McBean, L. E. 1 Ch. Ap. 81. But see Hamilton v. Buclmaster, L. E. 3 Eq. Cas. 323.) (6.) If the character and condition of the property has been so altered, that the terms of the contract are no longer applicable to the ex- isting state of things. (St. § 750.) (7.) If the defendant can show that, by fraud or mistake, the thing bought is different from what he intended : or if there was a great mistake as to the price. ( Webster v. Cecil, 30 Beav. 62.) (8.) If the estate bought is of a dif- ferent tenure (2 Lead. Cas. Eq. 2d ed. 453 et seq.) ; as if it was described as freehold, when in fa,ct it is copyhold, or vice versa (^Ayles v. Cox, 16 Beav. 23); or if it was described to be freehold, when in fact it is leasehold. (Sugd. C. V. 212.) (9.) If material terms have been omitted in the written agreement, or there SPECIFIC PERFORMANCE. 237 has been a variation of it by parol. (St. § cap^'viu 770.) (10.) If the contract is founded in imposition, misrepresentation, undue influ- ence, or fraud of any kind; aff where prop- erty was put up for sale by auction to the highest bidder, without mentioning any re- serve, and the auctioneer and an agent for the vendor both bid against each other. (^Mortimer v. Bell, L. E. 1 Ch. Ap. 10.) (11.) If, after the day fixed for performance is past, specific performance is sought by the purchaser, and the price is inadequate, or by the vendor, and the price is unreasonable. (Sugd. C. V. 189.) (12.) In the case of one entire agreement, the Court cannot decree specific performance of part of it, so as to give the plaintiff the benefit for which he stipulated, while the other terms of the agreement are of such a nature that the Court is unable to decree specific perform- ance of them. (^Stacker v. Wedderburn, 3 K. & J. 393, 407.) (13.) The Court will not force any one to take a title, which it is evident will involve the taker in immediate litiga- tion. {Pegler v. White, 33 Beav. 403.) (14.) The Court will not enforce specific perform- ance, if, on any other account, it would be morally wrong or inequitable to do so. (St. § 238 SPECIFIC PERFORMANCE. cl"vni ''^0' ''^^ ^' "^^ ^' '^^^' ''^'^> 2 Lead. Gas. Eq. 2d ed. 453 et seq.; Directors of the Shrewsbury and Bimingham It. G. v. Directors of North Western B. C, 6 H. L. 113 ; Falcke v. Gray, 4 Drew. 651; Ormes v. Beadel, 2 Gif. 166; Tilderley v. Clarkson, 30 Beav. 419 ; Deane V. Light, D. M. & G. 771; Beeves v. (rreew- M)JcA Tanning Co., 2 Hem. & Mill. 54 ; W V. B , and B v. W , 32 Beav. 574; Yivers v. Taite, 1 Moo. P. C. (E. S.), 516 ; Cochrane v. ■Willis, 34 Beav. 354, Law Eep. 1 Ch. Ap. 58.) XIV. Nor XIV. In like manner, Equity will not will equity- enforce as- enforce assisrnments, contracts, or covenants, signments, a ' * contracts, or -sphich are against public policy. And hence, covenants, a c x: J J ufpX?t^ 1. An officer in the army or navy, or casTof^* other officer of the government, cannot 1. Assign- assign his future accruing pay, or other nients by officers of remuneration connected with the right of the govern- *-* ment. the government to future services from him; because it is contrary to the honor, dignity, and interest of the State, that its servants should be in danger of being reduced to pov- erty by anticipating those resources which were intended to place them in a suitable condition of respectability, comfort, and efficiency. (See St. § 769, 1040 f— 1040 f, and notes; 2 Sp. .867.) But a man may SPECIFIC PERFORMANCE. 239 assign a pension given him entirely for past c^^-vm services; and pi-ize-money maybe assigned. (2 Sp. 867.) And an assignment of a pension granted by tlie late East India Company is valid. (Eeald v. Hay, 3 Gif 467.) And it has been held that the pension payable to a former officer of the Bast India Company out of the revenues of India since the trans- fer Act, 21 & 22 Yict. c. 106, may be assigned. {Carew v. Cooper, 4 Gif. 619.) 2. On principles of public policy, Equity 2. Ana those involving will not uphold assignments which involve champerty, ■* '^ mainte- champerty, or maintenance, or buying of S„''?„'''of pretended titles. (St. § 1049; see Rey- g'tieT'^** nell V. Sprye, 1 D. M. & G. 660.) Cham- perty (campi partitio) is properly a bar- gain between a plaintiff or defendant in a cause, and another person who has no in- terest in the subject in dispute (campum par- tire), to divide the land or other property sued for between them, if they prevail at Law, in consideration of the other person carrying on the suit at his own expense. Maintenance, of which champerty is a species, is properly an officious intermeddlitig in a suit which in no way belongs to one, by maintaining or assisting either party with money or other- wise, to prosecute or defend it. Each of 240 SPECIFIC PERFOKMAKCE. Ci^'viii. t^®^^ is punishable, both at the Common Law and by Statute, as tending to keep alive strife and contention, and to pervert the remedial process of the law into an engine of oppression. And the Stat. 32 Hen. VIII. c. 9, prohibits the transfer of any right or title to hereditaments, unless the seller, or his ancestor, or those by whom he claims, have been in possession of the same, or of the remainder or reversion thereof, or of the rents and profits thereof, for one year next before the sale. (St. § 1048, and note, and 1048 a; 2 Sp. 869; Hilton v. Woods, L. E. Eq. Gas. 432.) And Courts of Equity enforce all the principles of Law upon these poin ts. Excep- tions are made, however, to the general rule against champerty and maintenance, in the case of father and son, or of an heir apparent, or of the husband of an heiress, or of a master and servant, or the like. (St. § 1049 ; 2 Sp. 870, 871.) 3. Noras- 3. Upon the same principle of not giving signments of mare any encouragement to litigation, especially llSfK6Q. , iifi'"t'° "when undertaken as a speculation. Equity will not enforce the assignment of a mere naked right to litigate, that is, a right which from its very nature, is incapable of confer- ring any benefit except through the medium SPECIFIC PERFOfiMANCE. 241 of a suit ; such as a mere naked right to set (.''^''''viii aside a conveyance for fraud. (St. § 1040 g, and note ; 2 Sp. 868, 869, 872. See Rill v. Boyle, L. E. 4 Eq. Cas. 260.) The right to complain of a fraud is not a marketable commodity; and if it appears that an agree- ment for purchase has been entered into for the purpose of acquiring such a right, the purchaser cannot call upon the Court for a specific performance of the agreement. (JDe Hoghton v. Money, L. E. 2 Ch. Ap. 164.) But a person may take an assignment of the whole interest of another in a contract, or security, or property which is in litigation, provided he does not make any advance beyond the mere support oftho interest which he has so acquired. Thus, notwithstanding the Statute 32 Hen. VIII. c. 9, above referred to, an equitable interest under a disputed contract for the purchase of real estate may be the subject of a sale. If such an interest is sold by the purchaser under such original contract, he becomes in Equity a trustee for his sub-purchaser, and must permit the sub- purchaser to use his name in legal proceed- ings for obtaining the benefit of the contract. And without entering into any covenants for the purpose, such sub-purchaser is obliged to 21 242 SPECIFIC PEKFOBMANCE. Tit. II. indemnify the original purchaser from all the acts which he must do for the sub-pur- chaser's benefit. And so, a legatee may assign his legacy, and a creditor may as- sign his interest in a debt, although he may have commenced a suit to recover it. (St. § 1050—1054; 2 Sp. 863, 868—871; Myers V. United Guarantee Company, 7 D. M. & Gr. 112; Tyson v. Jackson, 30 Beav. 384.) In these cases there is an actual interest in the assignor, independently of litigation; and, although it may require continued litigation to enforce it, yet the parties may possibly adjust the matter without further proceed- ings; whereas, in the case first mentioned, there is no interest in the assignor, or none but what may result from oversetting an interest in the other party. 4. comiuon 4. It is a rule of the Common Law that law rule .1 .1. . , . . , , . against no possibility, right, title, or thing in action, assignment of pussibiii- can be granted to third persons, except in UOS} or actSm " ^^^ ^'''^^^ ^^ *^® sovereign, to whom and by whom an assignment could always be made ; for it was thought that a different rule would be the means of multiplying contests and suits. And at Law, this still continues to be the general rule, except in the case of nego.tiablc instruments and some few other SPECIFIC PERFORMANCE. 243 securities, or where a debtor assents to the CAP%nr transfer of a debt, so as to enable the as- signee to maintain a direct action against him on the implied promise which i-esults from such assent; and except in the case of possibilities coupled with an interest, and contingent interests in real estate, which may now be granted and assigned at Law, in consequence of the Stat. 8 & 9 Vict. c. 106. (St. § 1039; 2 Sp. 850, 851, 855.) And in the case of assignments of bond or other debts which are an exception to the above-mentioned rule, it is necessary to sue in the name of the original creditor; the person to whom it is transferred being re^ garded rather as an attorney than as an assignee. (St. § 1056.) Even before the late Statute of Wills, a is not adopted in devise of a possibility coupled with an inte- equity, rest, or of a contingent interest, whether in real or personal estate, was good at Law. (2 Sp. 854.) And a covenant to settle, charge, dispose of, or affect property to be hereafter acquired, will operate in Equity upon the property so afterwards acquired. (2 Sp. 254.) And Courts of Equity give effect to assignments, for valuable conside- ration, of trusts and possibilities of trusts, 244 SPECIFIC PERFORMANCE. CA"'viii ^^'^ contingent interests, whether in real or personal estate, contingent gains, such as freight to be earned or a cargo to be pro- cured, and even mere expectancies of heirs to their ancestor's estate, and chases in ac- tion. For, such assignments of a chose in action are considered in Equity as amount- ing to an agreement to permit the assignee to make use of the name of the assignor at 'Law, in order to recover the debt, or to reduce the property into possession; or as a contract entitling the assignee to sue in Equity in his own name, and enforce pay- ment of the debt directly against the debtor, whether he has assented or not, making him, as well as the assignor, if necessary a party to the bill. (See St. § 1040, 1040 c, 1044, 1055, 1057; 2 Sp. 852, 865, 866, 896.) And such assignments of contingent inte- rests, possibilities, and expectancies, are re- garded in Equity as amounting to a con- tract to assign, when the interest becomes vested; and when the interest does so be- come vested, the claim of the assignee is enforced, not indeed as a trust, but as a right under a contract. (St. § 1040 b.) ammut "^^ ^ general rule, anything written, said, mentf'^"" *'*" <^o"6> 1° pursuance of an agreement, and SPECIFIC PBEFORMANCE. 245 for valuable consideration, or in considera- ^tit.ii. ' Cap. VIII. tion of an antecedent debt, to place a chose in action or fund out of the control of the owner, and appropriate it in favor of another person, amounts to an equitable assignment. (2 Sp. 855, 860, 861, 907; Chowne v. Baylis, 31 Beav. 351.) So that an agreement between a debtor and a creditor, that the debt shall be paijj. out of a specific fund coming to the debtor, will operate as an equitable assignment. And an order given by a debtor to his creditor upon a person owing money to such debtor, or holding funds belonging to him, directing such person to pay the creditor out of such money or funds, will- amount to an irrevo- cable equitable assignment of such money or funds, or a suflcient part thereof, if made in consequence of a direct agreement. (Bow V. Dawson, 1 Ves, 331 ; ^x parte South, 2 Swanst. 392; Lett. v. Morris^ 4 Simons, 607 ; £urn v. Calvallo, 4 My. & Or. 690; L' Estrange v. L' Estrange, 13 Beav. 281; Ex parte Steward, 2 M. D. & Gr. 265; Bodick v. Gandell, 1 D. M. & G. 777; Diplock, V. Hammond, 2 Sm. & Gif 141 ; 2 W. E. 501 ; Wat$on v. Duke of Wellington, 1 Euss. & My. 602; Malcolm v. Scott, 2 21* 246 SPECIFIC PERFORMANCE. cSViii. ^*^®' ^^> 2 Spence'Eq. Jur. 855, 860, 861, — '907; Coote, Mortg. 3d ed. 234.) And if the person so ordered to pay, hands over such money or fund to the assignor, he will be made to pay it over again to the assignee. {Jones V. Farrell, 1 D. & J. 208.) But where a railway company was indebted to their engineer, who was greatly indebted to his banker^ and the engineer authorized the solicitors of the company by letter to receive the money due to him from the company, and requested them to pay it to the banker, and the solicitors by letter promised the banker to pay him such money on receiving it; it was held that this did not amount to an equitable assignment of the debt. (Rodick V. Gandell, 1 D. M. & G. 763.) And where a consignment of property is made by the owner, not in consequence of any obligation or contract express or implied, but of his own motion, with orders to pay pyer the proceeds to a third person, this is not an irrevocable appropriation at Law or in Equity, though the third person be a creditor: nor is a merely voluntary arrange- ment made by the debtor himself for pay- ment of a creditor out of a particular fund, though communicated to the creditor, abso- SPECIFIC PERFORMANCE. 247 lutely binding so that it cannot be revoked, cS'^'vm that is, in the absence of special circum- stances (as forbearance and the like on the part of the creditor), so as to raise a case of contract or of fraud. (2 Sp. 862.) When an assignment is made, everything What must ° 'JO be done to must be done towards the obtaining of quasi obtain quasi " ■*■ possession possession that the subject admits of, in order ^f®n^°„t to prevent payment to the assignor himself, and in order to acquire by assignment a complete title to a chose in action, as against assignees in bankruptcy or insolvency, or as against subsequent purchasers or incum- brancers, who might otherwise be deceived by apparent possession and ownership re- maining in a person who in fact is not the owner, or, in the case of voluntary assign- ments, even as against the assignor himself. Hence notice of the assignment of a debt should be given to the debtor ; and if a bond is assigned, it ought to be delivered over to the assignee. (St. § 1047; 2 Sp. 855—857; Byall V. Bowles, 2 Lead. Cas. Bq. 2d ed. 615 et seq. ; and remarks of Turner, L. J., in Hx parte Boulton, 1 D. & J. 178—179; Rolroyd v. Marshall, 2 Gif. 382 ; 2 D. F. & J. 596; 10 H. L. Cas. 192; Stansfield v. Gubitt, 2 D. & J. 222.) Ifotioe of the assign- 248 SPECIFIC PERFORMANCE. capVui ^^"^^ of ^ policy of insurance must be given — to the insurance ofiBce. (Coote, Mortg. 3d ed. 231; Thompson v. Tomkins, 2 Dr. & Sm. 8.) In all assignments of equitable in- terests other than equitable estates, he who gives formal notice to the holder of the fund has priority over him who does not. In general, notice to one of several obligors or trustees is sufficient. (Coote, Mortg. 3d ed. 231 ; Browne v. Savage, 4 Drew. 685 ; Willes V. Greenhill (No. 1, 2), 29 Beav. 376, 387, affirmed on appeal ; Bridge v. Beadon, L. E. 3 Eq. Cas. 664; Lloyd v. Banks, L. E. 4 Bq. Cas. 222 ; In re Brown's Trusts, L. E. 5 Bq. Cas. 88.) Where stock standing in the name of a trustee is assigned, and notice cannot be given to the trustee, he who first obtains a distringas on the stock will have a priority. Where a sum standing in the name of trustees is given by a testator as a specific legacy, the executors not having assented to the legacy, the incumbrancer under the specific legatee who first gives notice to the executors is entitled to prior- ity. (2 Sp. 857, 858 ; Browne v. Savage, 4 Drew. 635.) In the case of an assignment of a reversionary interest in a fund in Court, the assignee should obtain a stop order SPECIFIC PERFORMANCE. 249 {Bartlett v. Bartlett, 1 D. & J. 127), unless J^Viii the fund constitutes part of a testator's estate, in which case notice to the executor will be sufficient without a stop order. ( Thompson v. Tomkins, 2 Dr. & Sm. 8.) In the case of an assignment of costs of suit not yet ordered to be paid, notice should be given to the trustees to whom they would be pay- able. (Day V. Day, 1 D. & J. 144.) In the case of an assignment of freight, the assignee should give notice to the charterers of the assignment. (Brown v. Tanner, L. E. 2 Eq. Cas. 806.) In the case of shares in a com- pany, notice must be given to the company. (Hx parte Boulton, 1 D. & J. 163.) And as- signees in bankruptcy who neglect to give notice will lose their priority equally with particular assignees. (Be Barr's Trust, 4 X, & J. 219.) In order to maintain his priority, it is sufficient if a prior assignee of the pro- ceeds to arise from the sale of an officer's commission gives notice to the army agent of the regiment before the money has reached the agent's hands, though a subsequent as- signee gave notice first. (Butler v. Plunkett, 1 Johns. & Hem. 441. On the subject of notice, see also Webster v. Webster, 31 Beav. 393; Somerset v. Gox, 33 Beav. 634.) 250 SPECIFIC PEKFORMANCE. Tit II. When a debt not legally assignable has Pj,y~(g been equitably assigned by the creditor to of rS™ a purchaser for valuable consideration, and the debtor has had notice of the assignment, all payments which he may thereafter make to the purchaser on account of the debt, must be considered to be well made, so far, at least, as the debtor is concerned, not- withstanding that the purchaser may in fact, after notice of his purchase to the debtor, have sold or mortgaged the debt to some other person, provided that the pay- ments were made by the debtor without notice of the later sale or mortgage. Nor, in such a case, is it incumbent on him, before making a payment to the original purchaser, to require production or proof of the original assignment. (^Stocks v. Dob- son, 4 D. M. & G. 11, 17.) Suit against Au equitable assignee of a legal term is equitable ^ & & assimeeofa not liable to be sued in Equity by the lessor legal term. -l j j for rent, or for damages in respect of breaches of covenants, even though he may have been in possession. (Coa; v. Bishop, 8 D. M. & G. 815.) Assignees As a general rule, an assignee of a chose in taking subject to action, other than a bill of exchange or a equities of ' ° assignor. note, takes it subject to the same equities as SPECIFIC PERFORMANCE. 251 it was liable to in the hands of the assignor. cJ^vYii (2 Sp. 863—865 ; Mangles v. Dixon, 3 Ho. — L. Ca. 702 ; Smith v. Farker, 16 Beav. 119 ; Bolt V. White, 31 Beav. 520.) And an as- signee in insolvency stands on the same footing as a particular assignee. (/» re Atkinson, 2 D. M. & G. 140.) 5. The Courts of Equity will not en- 5. inter- ference in force the specific performance of an agree- regard to ■^ * ° arbitration. ment to refer any matter ; deeming it against public policy to exclude any person from the appropriate judicial tribunals. Neither will Equity compel arbitrators to make an award. Nor when they have made an award, will Equity compel them to disclose the grounds of their judgment. (St. § 1457.) Nor will it interfere in the case of an agreement which was agreed to be wholly or partly determined by arbitrators who have not yet arbitrated. (^DarbeyY. Whita- ker, 4 Drew. 134.) Courts of Equity will enforce a spoeiflc performance of an award which is unexcep- tionable, and in which the parties have acquiesced. (St. § 1458, 1459 ; ' Blacket v. Bates, 2 Hem. & Mil, 610.) And where both parties have for along time acquiesced in or acted upon an award, oven though 252 SPECIFIC PERFORMANCE. c^"'vni ol'j^ctions might have been originally urged against it, an application to set it aside will not be entertained. (St. § 1459.) But where an arbitrator has been guilty of un- fairness or partiality, relief will be given against his award. (Ormes v. Beadel, 2 Gif. 166.) XV. Parol XV. Courts of Equity will enforce a spe- enforced. cific performance of a parol contract within the Statute of Frauds — 1. When set 1. Where it is fully set forth in the bill, forth by •' ' piiiintiff, an(j it jg admitted by the answer of the de- and ad- "^ mitted. fendant, and the defendant does not insist on the Statute as a bar. For, under these circumstances, there can be no fraud. And, although there may indeed be a temptation to the defendant to commit perjury ; yet that is the case with every answer, where the defendant's interest is concerned. And as the defendant does not insist on the Statute, he may be deemed to have waived it; and the rule is Quisque renuntiare potest juri pro se introducto. (St. § 755 — 757, and notes.) But if the defendant insists on the Statute as a bar, although he confesses the agreement. Courts of Equity will not enforce it ; for that would be contrary to the express provisions of the Statute. (St. § 757.) SPECIFIC PBBEORMANCB. 253 2. Equity will also enforce such a parol Q^p'^-yifj agreement where it was intended to be re- 2. where duced to writing according to the Statute, ducingino but that has been prevented by the fraud vreventli^ ^ "^ by fraud. of one of the parties. (St. § 768.) 3. A parol agreement will also be en- s. where '■ ° partly forced, whether it is an original agreement, performed. or a variation of or substitute for a prior written agreement, where it is a completed agreement, and it has been partly carried into execution, and it is shown, by satisfac- tory evidence, to be clear, definite, and une- quivocal in all its terms. (St. § 759, 764, 770, note ; Lester v. Foxcroft, 1 Lead. Cas. Eq, 2d ed. 625 et seq. ; Lady E. Thynne v. Earl of Glengall, 2 H. L. Ca. 158 ; Nunn V. Fabian, Law. Eep. 1 Ch. Ap. 35.) As to the acts which will be deemed a what is deemed part performance, they should be such as are part per- i r T J formance, clearly and exclusively referable to a com- plete agreement, and must have been done with no other view than to perform such agreement (St. § 762; Shillibeer v. Jarvis, 8 D. M. & G-. 79); and they must have put the party who has performed them in such a situation, that it would be a fraud, in the other party, after allowing him to do them, not fully to perform the agreement. 22 254 SPECIFIC PERFORMANCE. cI"Vm (®*- § '^^1 ' Surcome v. Pinniger, 3 D. M. & — G. 571.) For, the ground on which Courts of Equity enforce specific performance in such cases, is, that if the party allowing these acts to be done were not obliged to fulfil the agreement, it would be permitting him to commit a fraud, the very evil which the Statute was designed to prevent. (St. § 759.) And hence a depositing, securing, or paying of the purchase-money will not be deemed such apart performance as will take the case out of the Statute; for the money can be recovered back at Law. (St. § 760.) Nor will the delivery of an abstract of title, giving directions for conveyances, going to view the estate,flxingupon an appraiser to value stock, making valuations or admeasurements, regis- tering conveyances, and acts of the like pre- liminary or ancillary and equivocal ch aracter, be considered as a part performance of the agreement, so as to take it out of the Statute. (St. § 762.) But if upon a parol agreement the purchaser is admitted into possession, and such possession is exclusively referable to the contract, this amounts to a part per- formance which will take the case out of the Statute; because he is made a trespasser, and is liable to answer as such, if there is SPECIFIC PERFORMANCE. 255 no valid agreement at Law or in Equity, cl^viu (St. § 761, 763; Pain v. Coombs, 1 D. & — " J. 34.) And so if upon a parol agreement to grant a lease, the lessee is let into posses- sion, and allowed to spend money on the faith of the agreement, the agreement will be enforced. (Farrell v. Davenport, 3 Gif. 363.) But the execution of an indenture of lease by a trustee has been held not to be a part performance of a parol agreement to lease, where the power to lease was only to arise on a request in writing by a married woman, which had not been made. (^Phillips V. Edwards, 33 B.eav. 440.) XVI. With respect to a parol variation or xvi. Parol variations addition, it is to be observed that evidence of oradditions. it is totally inadmissible at Law ; and that the most unequivocal proofs of it will be required in Equity ; and in general, it will only be allowed to be used by a defendant in resisting a specific performance; not by a plaintiff in compelling such performance. The reason of this distinction is, that the Statute does not say that a written agree- ment shall bind, so as to prevent a defendant from assisting on a parol variation thereof, but only that a pai-ol agreement shall not bind. Exceptions occur, however, to this 256 SPECIFIC PERFORMANCE. Tit. II. doctrine of the inability of a plaintiff to make use of a parol variation. (1.) Where there has been such a part performance of the parol portion of the agreement, as would enable the Court to decree a specific per- formance in the case of an original and inde- pendent agreement. (2.) Where an omission has occurred by fraud ; and, in cases not within the Statute of Frauds, where there has been a clear omission by mistake. (3.) Where the defendant sets up a parol varia- tion or addition, and the plaintiff seeks a specific performance of the contract, with such variation or addition. (See St. § TTO, note, and 770 a ; Woolam v. Searn, 2 Lead. Cas. Eq. 2d ed. 404; I/aver v. Fielder, 32 Beav. 1.) XVII. Parol XVII. It is the practice of Courts of promise * enforced. Equity to enforce strict truth in the deal- ings of one man with another ; so that if one man makes a deliberate promise to another, with a view to induce that other to do a par- ticular act, which, relying on such promise, he accordingly does, the promiser shall be compelled to make good his word. (M. E. in Loxley v. Heath, 27 Beav. 532 ; Laver v. Fielder, 32 Beav. 1, 12.) And where a testa- tor induces a person to render his valuable SPECIFIC PERFORMANCE. 257 services on the faith of a verbal promise, cl^'viii that he would, in consideration of such services, leave such person certain property, and he makes a will leaving such property accordingly, and shows it to the donee, he cannot afterwards revoke the gift. {Loffus V. Maw, 3 Gif. 592.) And when a marriage takes place on the faith of a promise to make a settlement, such promise will be enforced. {Alt V. Alt, 4 Gif 84.) And where a person intends to make certain provisions, gifts, or arrangements, for the benefit of others, but omits to do so, on the faith of a promise by another person to carry into effect what was so intended, such a promise will be speci- fically enforced in Equity ; so that where an executor promised a testator that he would pay a legacy, and told the testator he need not put it in his will, the executor was decreed specifically to perform the promise. (St. § 781.) XVIII. It has been held that Equity will xviii. Agreement not enforce the specific performance of an to borrow, agreement to borrow a sum of money on mortgage. (JRogers v. Ghallis, 27 Beav. 175.) XIX. There are many cases where the xix. Negative agreement is merely negative, and the Court agreements, acts merely by injunction; as in the case of 22* 258 SPECIFIC PERFORMANCE. cIr'Yiii. ^ covenant not to dig gravel. These may more properly be termed cases of decrees for specific adherence to agreements. (See St. § 721.) XX. Pay- XX. A person cannot evade performance mentof penalty. of his Contract by payment of the penalty for the breach of it. (2 Sp. 254; Peachy V. Buke of Somerset, 2 Lead. Cas. Eq. 2d ed. 895 et seq.; Long v. Bowring, 33 Beav. 585.) (a) (a) As to the general jurisdiction of the Gonrts of Equity in matters of specific performance, see Fry on Specific Performance, and Caddee v. Rutter, 1 Lead. Cas. Eq. 2d ed. 709. TITLE III. m 2lbiti6tit)e €qmti3. ( 259 ) ( 260 ) CHAPTER I. or ACCOUNT IN GENERAIi. Tit. III. In matters of account standing on equita- ble claims, Equity has universal and exclu- Jurisdiction ofequity. give jurisdiction. (St. § 454.) In matters of account growing out of privity of con- tract, and cognizable at Law, Courts of Equity have a general jurisdiction, where there are mutual and complicated accounts, and also where the accounts are on one side, but they are very complicated and intricate, or a remedy which is or was peculiar to a Court of Equity is required. But where the accounts, whether-receipts or payments, or both, are all on one side, or where there is a single matter on the side of the plain- tiff, and mere set off on the other side, and where, in each case, no complication exists, and ho peculiar equitable remedy is sought or required, Courts of Equity will decline taking jurisdiction. (See St. § 454, 459, 511, 512; Phillips v. Phillips, 9 Hare, 270; ACCOUNT IN GENERAL. 261 Fluker v. Taylor, 3 Drew. 183, 192; Pad- "'(^^■j.™- wick V. Burst, 18 Beav. 575; Smith v. L&- veaux, 2 D. J. & S. 1 ; Shepard v. Brown, 4 Gif. 208.) The relation of principal and agent does not of itself entitle the principal to come into Equity for an account, if the matter can be fairly tried at Law. {Barry V. Stevens, 31 Beav. 258 ; Smith v. Leoeaux, 1 Hem. & Mil. 123; 2 D. J. & S. 1.) Accounts may be divided into open, Division of accounts. stated, and settled accounts. An open account is an account of which Open accounts. the balance is not struck, or which is not accepted by both parties. A stated account is one that is accepted stated ^ accounts. by both parties. This acceptance need not be expressed, but may be implied from cir- cumstances ; as, if no objection is made to the account within a reasonable time. What is a reasonable time, is to be determined by the habit of business; and the usual course is required to be followed, unless there are special circumstances constituting a ground for variation. Between merchants, acquies- cence is presumed, under ordinary circum- stances, after a lapse of several posts. (St. § 526.) It is ordinarily a good bar to a suit for an A stated •^ " account la 262 ACCOUNT IN GENERAL. Tit. III. Cap. I. ordinarily a bar to a suit for an account. When it is not. Diflferent modes of relief. Meaning of "surcharge" and "falsify." Onus pro- bandi. Extent of the liberty to surcharge and falsify. Opened settled accounts. account, that the parties have already stated the items and struck the balance; for, under such circumstances, there is an adequate remedy in a Court of Law. But if there is any mistake, omission, accident, or fraud, by which the account stated is vitiated, and the balance is incorrectly fixed, a Court of Equity will interfere ; in some cases, by di- recting the whole account to be opened and taken de novo ; in others, by allowing it to stand, with liberty to the plaintiff to sur- charge and falsify, or by simply opening the account to contestation as to one or two items which are specially set forth by the plaintiff in the bill. (St. § 523.) The show- ing an omission for which credit ought to have been taken, is a, surcharge ; the prov- ing an item to be wrongly inserted is a fal- sification. The onus probandi is always on the party having the liberty to surcharge and falsify ; and the liberty extends to the examination, not only of errors of fact, but also of errors in Law. (St. § 525.) Generally where an account has been settled, the rule is only to give liberty to surcharge and falsify the account, if errors of fact or of law are shown in the account; but where an account has been ACCOUNT IN GENERAL. 263 settled between a trustee and his cestui que tit. iii. ^ Cap. I. trust, under circumstances of fraud or mis- representation or undue influence used on the part of the trustee, there is scarcely any length of time that will prevent the Court from opening the account altogether. (St. § 527 ; 2 Sp. 942.) Acquiescence in an account, even for a Acqui- escence, considerable time, does not of itself establish the fact of the account having been settled. (St. § 528 ; see Hunter v. Belcher, 2 D. J. & S. 194, 202.) Where, however, the demand would have Lapse of time. been cognizble at Law, Courts of Equity are governed by the Statute of Limitations. But when the demand is purely equitable and the bar of the Statute is inoperative, they are sometimes regulated by the analogy of Law, and sometimes by their own inherent principles, not to entertain stale demands, and not to encourage laches or negligence, from the difficulty of doing entire justice when the transactions have become obscure, and from the consciousness that the repose • of titles and the security of property are m anifestly promoted by fully acting upon the maxim, Yigilantibus, non dormientibus, jura subveniunt. (St. § 529; see supra, p. 19.) 264 ACCOUNT IN GENERAL. Cap ^P •"• ^^^ general law as to the appropriation of Appropria- payments is this : the debtor is entitled to p*a:^ents. apply the payments, at the time of making them, in such manner as he thinks fit. In default of appropriation by the debtor, the creditor is entitled to determine the applica- tion of the sums paid. And if neither does so by an express act, the law implies an appropriation of such payments to the items of debt in the order of their date. {Merriman V. Ward, 1 Johns. & Hem. 376. St. § 459 a — 459 g ; Devaynes v. Noble, Tudor's Lead. Cas. Merc. Law, 1.) Agentiiabie An agent is not liable to account except to account only to his to his principal; and the case of a charity pnncipal, x jt / ./ forms no exception to the rule. (^Att.-Gen. V. Earl of Chesterfield, 18 Beav. 596.) ( 265 ) CHAPTER II. OP ADMINISTRATION. I. In cases ofany complication or difficulty, tit. hi. the Court of Chancery has, practically speak- ing, almost an exclusive jurisdiction m the tion. administration of assets and the distribution of the I'esidue, founded on the notion of a constructive trust, or on some auxiliary ground, such as the necessity of compelling a discovery, or the consideration that the aid, if any, aiforded at Common Law or in the Ecclesiastical Court, vras not plain, adequate, and complete. (St. § 534—543.) And by the Stat. 20 & 21 Vict. c. 77, s. 23, the ju- risdiction of the Ecclesiastical Court in the distribution of residues is abolished, and is not to be exercised by the Court of Probate. II. The application for assistance is some- ii. BiUby •.1,1 . 1 ■ . . executor or times made by the executor or administra- adminis- trator, tor himself, against the creditors generally, when he finds the affairs of his testator or 23 266 ADMINISTRATION. Tit. III. intestate so much involved, that he cannot Cap. II. ' safely administer the estate except under the direction of a Court of Equity. Bilk filed by executors or administrators are Bometimea called bills for conformity; and are not encour- aged, because they m ay be made use of unduly to keep creditors out of their money. And for this reason, on such a bill, the Court will not interpose by way of injunction to prohibit creditors from proceeding at Law, until there has been a decree against the executors or ad- ministrators to account. (St. § 544, 545.) ni. Bill or III. But the aid of the Court is more summons by creditor. usually sought by creditors, which may be by a bill or by a mere summons. (St. § 546 ; St. 15 & 16 Vict. c. 86, s. 45.) And as a decree in Equity is held of equal dignity and importance with a judgment at Law, a decree on a proceeding of this sort, being for the benefit of all the creditors, makes them all creditors by decree, on an equality with creditors by judgment, so as to exclude, from the time of such decree, all preference in favor of the latter. (St. § 547.) As soon as the decree to account is made on such a suit brought on behalf of all the creditors, the executor or administrator is entitled to an injunction out of Chancery to prevent ADMINISTRATION.. 267 legal proceedings against him by any of the ^rr. in. creditors, except under the direction of the Court of Equity by ■which the decree was made. (St. § 549.) IV. , Assets (that is, property available for iv. Division of assebs. the payment of debts of a deceased person) are divided into legal and equitable. Legal Definition S> -^ e of legal assets are property which creditors may assets. make available in a Court of Law for the payment of debts, as having devolved upon or been recoverable by the executor or ad- ministrator, as such, for that purpose, simply by virtue of his office, even though the prop- erty may be of an equitable nature, and he has consequently been obliged to resort to a Court of Equity to vest it in himself. Equitable assets are property which credi- Definition tors can only make available in a Court of assets. Equity for payment of debts, simply by vir- tue of an express disposition of the property, which must be carried into effect by a Court of Equity. Hence it has been held that an equity of redemption of an equitable interest in a sum of money charged on land is legal assets. So that it is not the legal or equit- able nature of the property, nor the remedy of the executor, but the remedy of the cred- itor, which determines whether the assets 268 .ADMINISTRATION. cap"l are legal or equitable. (See St. § 551, 552; — 2 Sp. 314, 315; 2 Bl. Com. 244; Burt. Comp. § 734; Silk v. Prime,.2 Lead. Gas. Eq. 2d ed. 82 et seq.; Cook v, Gregson, 8 Drewry, 547 ; Shee v. French, id. 716 ; Mut- low V. Mutlow, 4 D. & J. 539.) Equitable assets include real property which the deceased had by will charged with or devised for payment of his debts, although liable for payment of them by Act of Parliament. (St. § 552 a.) V. Aduiin- V. Courts of Equity follow the same legal assets, rules in regard to legal assets, which are adopted by Courts of Law, and give the same priority to the different classes of creditors which is enjoyed at Law. And Equity recognizes and enforces all ante- cedent liens, claims, and charges in rem, according to their priority, whether those charges are of a legal or an equitable nature, and whether the assets are legal or equitable. Admini»- (St- § 553.) But equitable assets, with the tratioD equitab assets. equitable exception above mentioned, are distributed pari passu among all the creditors, without regard to the priority or dignity of the debts ; and, after they ai-e satisfied, among Abatement all the legatees or distributees. But if the of debts, and legacies. fund 18 insufficient to pay all the debts, all ADMINISTRATION. 269 the creditors must abate in proportion^. And ^it. m. so if the fund, after payment of debts, is in- sufficient to pay all the legacies, they must all abate in proportion, unless some pi-iority is specifically given by the testator to some legacies over others. (St. § 554 — 556 ; 2 Sp. 314.) But as between specific and pe-. cuniary legatees, the loss is to fall wholly on the latter. (2 Sp. 343.) And charitable legacies now abate, as well as legacies of another kind. (St. § 1180.) Where one of several residuary legatees or next of kin has received his share of the estate of a testator or intestate, the others cannot call upon him to refund, unless they show that the wasting took place before the share was paid over. (Peterson v. Peterson, L. ErSBq. 111.) Debts actually barred by the Statute of operation of . . . , , , . „ the Statute Jjimitations are not included in a trust for of Limita- tions as re- payment of debts. But where a provision g"ds debts, is made either by will or by deed, for pay- ment of debts but of real estate, the statu- tory time will cease to run, in the former case, from the death of. the testator, in the latter from the date of the deed; because the creditor, the cestui que trust, is not to be barred by the neglect of the trustee to do 23» 270 ADMINISTKATION. Cap "i" ^'® dpty- The same principle will apply — where personal estate only is assigned in trust for payment of debts. But where the like trust is expressly created by will, it does not prevent the running of the statute; because the trust for payment of debts, with which every executor is clothed by law, has no such effect. Indeed, such an express trust is inoperative for any purpose. (2 Sp. 357 J Moore v. Petchell, 22 Beav. 172.) VI. Order of VI. Asscts are now generally applied in administra^ nii.ioii. tionofdif- tho payment ofdebts in the following order: fcrent prop- erties in first, the general personal estate is applied, debts. except under the circumstances presently mentioned. Secondly, any estate particu- larly devised simply for the payment of debts. Thirdly, estates descended. Fourth- ly, property devised and bequeathed to par- ticular devisees and legatees, but charged with the payment of debts. (St. § 577; 2 Sp. 817, 822—824; Duke of Ancaster v. Mayer, 1 Lead. Cas. Eq. 2d ed. 505 et seq. ; Phillips V. Parry, 22 Beav. 179; Wood v. Ordish, 3 Sm. & G. 125.) Fifthly, general legacies. Sixthly, lancj^s comprised in a residuary devise. Seventhly, specific lega- cies and lands specifically deyjsed. (Coote,. ADMINISTRATION. 271 Mortg. 3d edit. 474 ; Rotheram v. Eothe- tit. m. ram, 26 Beav. 465; Dady v. Hartridge, 1 Dr. & Sm. 236; Barnwell v. Iremonger, id. 242; Bethell v. Green, 34 Beav. 302; Hensman v. Fryer, L. E. 2 Eq. Cas. 627. But see Eddels v. Johnson, 1 Giff. 22, and Pearman v. Twiss, 2 Giff. 130, where V. C. Stuart held, that lands specifically devised, and lands in a residuary devise, are applicable rateably.) Eighthly, personalty and realty over which the person whose estate is to be administered has exercised a general power of appointment. (Sugd. Pow. 8th ed. 474, 540; 2 Lead, Cas. Bq. 2d ed. 102—104; Trower's Dr. & Or. 295; Fleming v. Buchanan, 3 D. M. & G. 976.) A legacy or annuity given generally is Personal estate pri- payable out of personal estate only. And maruyap- even when a legacy or annuity is given out ''^p'- of real and personal estate, or where debts are payable out of real as well as out of per- sonal estate, it is the general rule that the personal estate is first to be applied so far as it will extend. The personal estate con- stitutes the primary and natural /and for payment of debts and legacies, and will first be applied (2 Sp. 334, 818 ; Tench v. Cheese, 6 D. M. & G. 453; Bright v. Larcher 272 ADMINISTRATION. CAP™' (■^"°- ^)> 4 I^- & J- 608), except in these cases : 1. In the 1. When there are express words {Young case of ex- . presa words v. YouTig, 26 Beav. 522), or a plain inten- intention to {jon of the testator to exonerate his per- the con- ^ trary. sonal estate. {Coventry v. Coventry, 2 Dr. & Sm. 470.) And to constitute such a plain intention, directions and expressions which do not necessarily imply more than that the real estate shall make good the deficiency, are not enougli : there must appear upon the whole testamentary disposition, taken to- gether, an intention go expressed as to con- vince a judicial mind that it was meant not merely to charge the real estate, but so to charge it as to exempt the personal estate. (2 Spence's Eq. Jur. 336—341, 824; Coote Mortg. 3d ed. 454; 1 Eop. Leg., by White, 703, 710; 2 Jarm. Wills, 2d ed. 546—8; Plenty v. West, 16 Beav. 180; Ion v. Ashton, 28 Beav. 379.) And (1.) If the real estate is directed to be sold for payment of debts, and the personal estate is expressly be- queathed to legatees, then the personal estate will be exonerated by necessary implication. But neither of these circumstances, apart from the other and from circumstances affording similar implication of intention, is ADMINISTRATION. 273 a suflScient indication of an intention to ex- tit. m. Cap. II. onerate the personal estate. For it is most probable that a direction to sell real estate for the payment of debts, where no dispo- sition is made of the personal estate, was intended to be followed only in the event of the personal estate proving insufficient for the purpose of paying the debts. And, on the other hand, it is most probable that a bequest of personal estate, not by way of specific legacy, where no provision is made for payment of debts out of the real estate, was made subject to the payment of debts out of such personal property. (2 Spenee's Eq. Jur. 340—1, 818, 823; 2 Wms. on Executors, 1452 — 3.) (2.) Where the testator gives his personal estate as a whole, and not as a residue, by way of specific legacy to one who is not executor, and another fund is supplied for payment of debts, legacies, and funeral and testamentary expenses, the per- sonal estate is exonerated. (2 Spenee's Eq. Jur. 341; 2 Jarm. Wills, 2d ed. 562; Gilbertson v. Gilhertson, 34 Beav. 854.) (3.) Where a testator directs the conversion of his real and personal estate, and creates a mixed fund out of the produce, and appropriates that fund for the payment of debts, &c., the 274 " ADMINISTRATION. Tit. m. iT^Q estates comprised in that fund are — applicable pro rata. But in such case, if there is no conversion out and out, the surplus (if any) will result as real and per- sonal estate. If a portion only of the per- sonal estate is comprised in the fund, the residue will be chargeable only when that fund fails. (Coote Mortg. 3d ed. 470; 2 Spence's Eq. Jur. 818; 2 Jarm. Wills, 2d ed. 529, 531; Simmons v. Rose, 21 Beav. 87; 6 D. M. & G. 411; Turner, L. J., in Tench v. Cheese, 6 D. M. & G. 467 ; Bright v. Larcher, 3 D. & J. 148.) (4.) So where a devise is made, subject to a condition of paying off the incumbrances affecting the estate; or where only the residue of the proceeds of real estate, after payment of debts, is devised. (2 Spence's Bq. Jur. 334, 342.) But where real estate is devised to a person, upon condition of his paying debts and legacies generally, or charged with them generally, or is given to trustees for those purposes, and the per- sonal estate is disposed of by a general residuary bequest, these circumstances will not prevent the personal fund being applied, in the first instance in the satisfaction of those demands. (1 Rop. Leg., by White, 695.) And if a testator expressly charges his per- ADMINISTRATION. 275 Bonal estate with debts of a particular de- ^rr in- scription, namely, with those by simple con- tract, and then bequeaths that fund, it will not be discharged from debts, &c., gener- ally. (1 Eop. Leg., by White, 706.) And as a general rule, no extrinsic evidence can be admitted to ascertain the intention to exone- rate ; so that the circumstances of the testa- tor, and the amount of his personal estate, and of the debts, cannot be taken into considera- tion. (2 Sp. 337 ; 1 Eop. Leg., by White, 724.) If the personal estate is exonerated from debts and legacies in favor of A., and he died before the testator, by which event the disposition lapsed, the executors or next of tin of the testator who accidentally become entitled to the fund will take it with its primary and natural obligation to discharge the debts and legacies. (1 Eop. Leg., by White, 744.) 2. When the charge or incumbrance is, in 2. where ° the debt or its own nature, real ; as in the case of a joint- charge is ' ' ■' real. ure ; or of pecuniary portions to be raised out of lands by the execution of a power; or of pecuniary portions to be raised in favor of daughters, under a marriage settlement, out of lands vested in trustees for the purpose; or of a devise of lands to a pei-son charged 276 ADMINISTRATION. Tit. III. with, or with a direction to pay, particular sums of money, or to trustees in trust to raise and pay particular sums, as distinguished from a charge or trust for satisfaction of debts or legacies generally. (1 Eop. Leg., by White, 671 ; 2 Jarm. Wills, 2d ed. 543, 567 — 9.) And although there may be also a personal covenant to raise the jointure, por- tions, or sums, such covenant will only be regarded as an additional security, not as the primary one. If there is no such per- sonal covenant for the payment of portions, but only a covenant to settle lands, and to raise a term of years out of the lands for securing the portions ; in such a case, even though there be a bond to perform the cove- nant, the portions are not in any event pay- able out of the personal estate. A mortgage debt (except in such cases as are mentioned in the next two paragraphs), whether the lands in mortgage devolve upon the heir- at-law or a general devisee or a particular devisee, is not considered as in its own nature real, but is primarily payable out of the gene- ral personal estate of the testator, where it is not made payable by a devisee. Where the mortgaged estate is devised cum onere, it is payable by the devisee. But the expression ADMINISTRATION. 277 " subject to the mortgage," in the devise of ^m iii. a mortgaged estate, may sometimes be only descriptive of the estate, and not expressive of an intent that the devise is made cum onere. (2 Sp. 819 ; 1 Eop. Leg., by White, 731—2 ; 11 Jarm. & Byth, by Sweet, 797, n (rt) ; Coote Mortg. 3d ed. 850, 452 ; 2 Jarm. Wills, 2d ed. 534. On this subject, see Jen- kinson v. Marcourt, Kay, 688 ; Bond v. Eng- land, 2 K. & J. 44; Townsend v. Mostyn, 26 Beav. 72 ; liady Langdale v. Briggs, 8 D. M. & G. 391.) 3. Where the debt was not contracted by 3. wiiere the debt was the person who died last seised or entitled, potcontrac- ^ ' ted by the but by some other person from whom he Sf^^s^**" took it by descent or devise, or by some other Inutied! person from whom he purchased it, or from "whom his vendor derived it. Thus, where a mortgage was created by an ancestor, and the mortgaged estate descended upon the heir, there, although the heir entered into a collateral contract or covenant, or gave secu- rity for payment of the mortgage, yet his personal estate would not be liable to be charged, in favor of any person who should derive title by descent under him to the mortgaged premises, subject to the mort- gage. But it is different if the heir or de- 24 278 ADMINISTRATION. Cap "i" '^^^^^ ^^ parchaser did anything which raised a new and independent contract between him and the mortgagee (unless it was sim- ply for the purpose of paying off the debts or legacies of the original mortgagor, as such), or had in any other way made the debt his own. (Story's Eq. Jur. s. 571 — 576, 1003; 2 Sp. 334—336, 393, 394, 819, 824; CooteMortg. 3d ed. 453, 478, 479, 481 ; 1 Eop. Leg., by White, 735, 739, 742; 2 Jarm. Wills, 2d ed. 536, 539 ; Swainson v. Swainson, 6 D. M. & G. 648 ; Townsend v. Most'yn, 26 Beav. 72 ; Ion v. Ashton, 28 Beav. 379; Bagot v. Bagot, 34 Beav. 134.) 4. In certain 4. By the Statute 17 Vict. c. 113, it is cases where ajperson enacted, that, " when any person shall, after dies entitlea . •' ^ ' to land in theSlst day of December, 1854, die seised of mortgage *' ' ' iSr W54' ^^ entitled to any estate or interest in any land or other hereditaments which shall at the time of his death be charged with the payment of any sum or sums of money by way of mortgage, and such person shall not, by his will or deed, or other document, have signified any contrary or other inten- tion, the heir or devisee to whom such land or hereditaments shall descend or be de- vised, shall not be entitled to have the mortgage debt discharged or satisfied out of ADMINISTRATION. 279 the personal estate or any other real estate Q^p^lf of sach person, but the land or heredita- ments so charged shall, as between the dif- ferent persons claiming through or under the deceased person, be primarily liable to the payment of all mortgage debts with which the same shall be charged, every part thereof, according to its value, bearing a proportionate part of the mortgage debts charged on the whole thereof. Provided always, that nothing herein contained shall aifect or diminish any right of the mortgagee on such lands or hereditamepts to obtain full payment or satisfaction of his mortgage debt either out of the personal estate of the per- son so dying as aforesaid or otherwise: Pro- vided also that nothing herein contained shall affect the rights of any person claim- ing under or by virtue of any will, deed, or document already made or to be made be- fore the Ist January, 1855." An equitable mortgage by deposit and memorandum is within this Act. {Pembroke V. Friend, 1 Johns, and H. 132.) And it extends to copyholds. {Piper v. Piper, 1 Johns, and H. 91.) Various other points connected with the construction of this Act have been decided, 280 ADMINISTRATION. Tit. m. but they do not come properly within the scope of a work like the present. By the etat. 30 & 31 Vict. c. 69, it is enacted that "in the construction of the will of any person who may die after the 3l8t day of December, 1867, a general direc- tion that the debts or that all the debts of the testator shall be paid out of his personal estate shall not be deemed to be a declara- tion of an intention contrary to or other than the rule established by the said Act, unless such contrary or other intention shall be further declared by words expressly or by necessary implication referring to all or some of the testator's debts or debt charged by way of mortgage on any part of his real estate" (s. 1) ; and " in the con- struction of the said Act and of this Act, the word ' mortgage ' shall be deemed to ex- tend to any lien for unpaid purchase-money upon any lands or hereditaments purchased by a testator " (s. 2). Non-iia- Where assets of a testator, consisting of soDaity personalty which could be identified, are settled on marriage, settled boTid fide upon marriage, they cease to be liable to subsequently accruing claims in respect of breaches of covenants entered into by the testator, but of which the ADMINISTRATION. 281 parties to the settlement had no notice Trr. iii. '^ Cap. II. •when they executed it. (^Bilkes v. Broad- mead, 2 D. P. & J. 566.) Property specifically bequeathed is not dis- Wawiity of charged from its liability to the testator's ^"^^^1^^^ creditors by the circumstance that there has come to the hands of the executors personal property of the testator not specifically be- queathed more than suflScient to pay his debts and funeral and testamentary ex- penses, and that the specifically bequeathed property has been made over by the execu- tor to the specific legatee; whatever may be the rights of the specific legatee as regards the executor or residuary legatee. (JDavies V. Nicholson, 2 D. & J. 693.) IX. In the order of satisfaction, if the ix. order of satisfac- personal estate of the deceased is not suffi- tion. cient for all purposes, creditors are preferred to legatees; because it is to be presumed that a testator means to be just, by desiring his debts to be paid, before he is generous; and the personal estate, as we have seen, is the natural fund for the payment of debts. Again, specific legatees are preferred to the heir; because the heir, instead of being ex- pressly an object of the testator's regard, like the specific legatee, only takes by act of law. 24* 282 ADMINISTRATION. Tit. ra. Specific legatees are also preferred to the d&- — visee of real estate charged with specialties or with the payment of debts, and to residuary devisees of real estate. But general pecuniary legatees are not preferred to residuary devi- sees of real estate. Nor are specific devisees of lands, not charged with specialties or with the payment of debts, preferred to specific legatees; but upon failure of the general personal estate, the specific devisees and specific legatees shall each, according to the proportionate value of the benefits conferred on each, contribute to the payment of debts. Where a particular portion of the personal estate is bequeathed, subject to the payment of debts and legacies, there, as between the legatees, the residuary personal estate is exonerated, if there is a residuary bequest, but not where there is no gift of the residue. (St. § 571 ; 2 Sp. 343.) As between a de- visee of a mortgaged fee simple estate and a specific legatee of personalty, the devisee shall not have his mortgage jjaid by the specific legatee, but shall take the mortgaged estate cum onere. A fortiori, a specific leg- atee of a mortgaged leasehold shall not have the mortgage wholly or partly paid off by specific legatees of other leaseholds. (2 ADMINISTRATION. 283 Sp. 838.) Subject to the stat. 17 Vict. c. 113 tit^ iii. (supra, 278), the devisee of mortgaged prem- — ises is preferred to the heir-at-law of de- scended estates; because the devisee is evi- dently an object of the testator's bounty ; and a fortiori, the devisee of premises not mortgaged is preferred to the heir-at-law ; and if unincumbered lands and mortgaged lands are both specifically devised, but ex- pi-essly after payment of all the debts, they are to contribute proportionably in discharge of the mortgage. Where the equities of the legatees and devisees are equal, the Court remains neuter, and suffers the Law to pre- vail. (See St. § 571 ; 2 Sp. 882, 832, 839.) But, subject to the statute 17 Vict. c. 113, where the personal assets are sufBcient to pay all the debts and legacies and other charges, there the heir-at-law or devisee, who has been compelled to pay any debt or in- cumbrance of his ancestor or testator bind- ing on him, is entitled (unless there is some other equity which rejjcls the claim) to have the debt paid out of the personal assets in preference to the residuary legatees or dis- tributees (St. § 571), because such charges are primarily payable out of personal estate. And, subject to the same statute, lands 284 ADMINISTRATION. Cap?l devised for or subject to the payment of debts are also liable to discharge a mor1> gage, in favor of the heir or devisee to whom the mortgaged lands may belong, unless the mortgaged lands are really devised cum onere. (St. § 571; 2 Sp. 822, and see p. 276-7.) Where money is payable under a volun- tary bond, the assignee for value of an equi- table interest in it is entitled to rank as a specialty creditor against the assets of the obligor, though the obligee would not be so entitled. {Payne v. Mortimer, 4 D. & J. 447.) X. Mar- X. There are many cases in which parties, shalling of assets. whose right at Law is confined to one fund, would fail to obtain the satisfaction of their just claims, if left to the course of Law, but are enabled to obtain full satisfaction thereof by means of a particular adjustment effected by Courts of Equity, termed the marshalling of assets. This may be defined to be such an arrangement of the different funds of the common debtor of two or more creditors as may satisfy every claim, so far as, without injustice, such assets can be applied in satis- faction thereof, notwithstanding the claims of particular individuals to prior satisfaction out of some one or more of those funds. So that if there are two or more different kinds ADMINISTRATION. 285 of funda of the common debtor of several T"- ™- Cap. II. creditors, and at Law one can have recourse — to either of those funds, while another is confined to one of them, the former shall either be compelled to seek satisfaction out of that fund to which the latter cannot re- sort, so far as it will extend, or the latter shall receive compensation out of that fund, in proportion to the amount which the former has unnecessarily taken from that which formed the only source of payment for the latter. (See St. § 558—563 ; 2 Sp. 827, 828 ; Aldrich v. Cooper, 2 Lead. Cas. Eq. 2d ed. 56 et seq.; Gibson v. Seagrim, 20 Beav. 614.) This plan is adopted as against mortgagees Marshalling in favor of and other creditors of the superior kind, in creditors of an inferior favor not only of mortgagees and creditors of fg "^^^g, "^ the superior kind, but also of creditors of an " /oni^t'or of inferior rank, or of legatees (except residuary S a devisee, legatees, where the residue is not exonerated, and legatees whose legacies are given out of a residue), or of portionists, or of the heir- at-law, or of a devisee.; and as against simple contract creditors, in favor of legatees (see St. § 562—566, 570; 2 Sp. 410, 819, 820, 827, 829, 833); and as against a person who becomes a surety for a mortgagor on the occasion of a first mortgage, in favor 286 ADMINISTRATION. c'ap "i °^ "• s<'°0"'i mortgagee. (^South v. Bloxam, ^ —— 2 Hem. & Mil. 457.) Thus, legatees, with piaci"?^ the above exceptions, are permitted to and%*|.**^ stand in the place of specialty creditors, simpleton- agaiust the real assets descended, or of a itors i mortgagee who has exhausted the personal estate, whether the mortgaged lands have descended to the heir-at-law, or have been devised to a devisee who is to take subject to the mortgage. And where a testator be- queaths legacies, and devises real estate in trust for, or subject to, payment of debts, and the personal estate is exhausted by cred- itors, the legatees are entitled to come upon the real estate, {Surtees v. Perkin, 19 Beav. 406 ; Faterson v. Scott, 1 D. M. & G. 531.) And in consequence of the stat. 3 & 4 "Will. IV. c. 104, which makes real estate liable to simple contract debts, though subject to a priority in favor of specialty debts, legatees are permitted to stand, in regard to land descended, in the place of simple contract creditors who have exhausted the personal estate, so as to prevent a satisfaction of the legacies. (St. § 566; 2 Sp. 830.) But residuary legatees, where the residue is not exonerated, and legatees whose legacies are given out of a residue, have no such equity : ADMINISTRATION. 287 for, a residue of personal estate implies what ^^j™' remains after satisfying the charges upon it. ^,j,t^^„f (2 Sp. 820.) And the equity of legatees will Si not generally prevail against a devisee of the gaged."' real estate not mortgaged, whether he is a specific or a. residuary devisee; for, between persons equally taking by the bounty of the testator, Equity will not interfere, unless the testator has clearly indicated some ground of preference or priority of the one to or over the other. (St. § 565 ; 2 Sp. 820, 829, 830—832.) (a) Where one party has a charge on freehold Marshalling as between and copyhold estate, and another party a freehold charge on the freehold only, the latter is en- toid. titled to require that the former should be satisfied out of the copyhold estate, so far as it w^ill extend. ( Tldd v. Lister, 10 Hare, 157 ; 3 D. M. & G. 857.) The same marshalling of assets takes Marshalling place as between legacies chai'ged on land legacies charged oil and legacies not so charged. (St. § 566.) land and ° 6 V a / others not But since the statute 9 Geo. II. c. 36, sociiarged- legacies or bequests to charitable uses, pay- (p) But query as to a residuary devisee, see Hensman v. Fryer, L. R. 2 Bq. Caa. 627, in which the V. 0. Kindersley held that a, pecuniary leg.atee has a right of marshalling as against the residuary devisee. 288 ADMINISTRATION. Tit. in. Cap. II. Adminis- tration in the case of charitable legacies. , able out of real estate or charged on real estate, or to arise from the sale of real estate, are, •with some exceptions, utterly void (St. § 569 ; and see Smith's Compendium of the Law of Eeal and Personal Property, 282 et seq., ed. 3) : and Equity has in some modern cases refused to marshal the assets in favor of charitable bequests, when given, either directly or by way of trust, out of a mixed fund of real and personal estate, by directing the debts and the other legacies to be paid oat of the real estate,and reserving the personalty to fulfil the charitable bequests. The charity legacies have been considered as intended to be charged on the personal estate and the proceeds of real estate proportion- ately, like other legacies, as if no legal objec- tion existed to applying the proceeds of the real estate to the charitable bequests ; and as charity legacies cannot legally be charged on the proceeds of real estate, they have been held to fail as to that proportion which would have come to them out of the proceeds of the real estate. (See St. § 569, 1180 ; 2 Sp. 233, 235.) In this instance, not only has the principle of favor to charities been dis- carded,but the Courts have, very improperly (as the writer humbly submits), acted upon ADMINISXKATION. 289 a diametrically opposite principle. A testator t^^ i^'- has the powcrof directing the charity legacies to be paid out of the pure personalty, ahd the debts and private legacies out of the mixed personalty.. (See Lord Langdale's judgment in the Phi/anthropic Society v. Kemp, 4 Beav. 581; Robinson v. Qeldard, 3 Mac. & Gord. 735.) And where a testator expressly directs charity legacies to be paid exclusively out of his pure personalty, and the personalty sa- voring of realty is sufficient for the pay- ment of legacies to individuals, and though the will docs not throw the legacies to indi- viduals upon the personalty savoring of realty, yet it does not purport to make those legacies payable at all out of the pure person- alty, but gives them without reference to any particular fund, and the pure personalty is not sufficient or on!y sufficient for the payment of the charity legacies; the legacies to indi- viduals ought to be paid out of the personalty savoring of realty, so as to leave the pure personalty for the payment of the charity legacies. (^Robinson v. Q-eldard, 3 Mac. & Gord. 735, 747.) But even in the absence of such an express adjustment, the writer conceives that the Courts ought, in favor of charities, to have imputed to testators an 25 290 ADMINISTRATION. Tit. III. intention that the charity legacies should be — paid outof that fund alone out of which they lawfully might be paid. Where a testator directs charitable lega- cies to be paid out of pure personalty in precedence of other legacies, but is silent as to the fund for payment of debts, there, though the pure personalty be insufficient to pay all the charity legacies, yet it has been held (improperly, as the writer submits) that the debts and funeral and testamentary expenses and the costs are payable, in the first instance, out of the pure personalty and the mixed personalty rateably, according to their relative values. (^Tempest y. Tem- pest, 7 D. M. & G. 470.) Marshalling Marshalling of assets takes place as be- sfmpiecon- twcen Simple contract creditors and a vendor and a ven- of real estate, in respect of his lien for his dor's lien. unpaid purchase-money. (St. §564 a.) And as against an heir, taking an estate pur- chased, legatees are entitled to have the as- sets marshalled, so as to give them the benefit of the vendor's lien. (2 Sp. 833.) And it has been held by Sir J. Eomilly, M. E., that this doctrine applies as against a devisee taking the purchased estate. (^Birds v. Askey, 24 Beav. 618j Lord Lilford v. Powys ADMINISTRATION. 291 Keck, L. E. 1 Bq. Cas. 347; but see 2 Trr™- Sp. 833; Wythe v. Henniker, 2 My. & K. — 635.) But the doctrine contained in this paragraph must be considered to be subject to the operation of the stat. 17 Vict. c. 113, as explained and extended by the stat. 30 & 31 Vict. c. 69. {See supra, 278—280.) On analogous grounds, if a specific legacy Kedemption has been pledged or incumbered with mort- tionofa specific gages or other charges by the testator, the legacy. specific legatee is entitled to have his legacy redeemed or exonerated; and if the execu- tor fails to perform that duty, the specific legatee is entitled to compensation out of the general assets. Indeed, the same prin- ciples apply to specific legatees as to devi- sees, in respect to the redemption of the sub- ject-matter out of the general assets. (St. § 566 a; 2 Sp. 774.) Again, in order to preserve a widow's Protection ... . , , . „ of a widow's paraphernalia, which, with the exception of parapher- necessary apparel, is subject to debts. Equity will oblige creditors who are entitled to pro- ceed against real assets or funds, to resort to such assets or funds, or will decree her compensation out of the same. (St. § 568; 2 Sp. 821, 829.) XI. With regard to the assets of foreigners, xi. Assets ° ° collected iu 292 ADMINISTRATION. Cap "i" '^ ^® *° ^^ observed, that in general where a, , ~r' domestic executor or administrator collects a foreign a°uolniistiJ asscts in a foreign country, without any let- oradminis- ters of administration taken out or any actual administration accounted for in such foreign country, and brings them home, they will be treated as personal assets to be administered here under the domestic ad- ministration. (St. § 583.) Assets re- If property is received by a foreign ex- foreign ecutor Or administrator abroad, and after- executor or adminis- wards remitted here, an executor or ad- trator, and ' here""'' ministrator appointed here could not assert a claim to it here, either against the per- son in whose hands it happened to be, or against the foreign executor or adminis- trator. The only mode of reaching it, if necessary for the purpose of due adminis- tration here, would be to require it to be transferred or distributed after all claims against the foreign executor or administra- tor had been ascertained and settled abroad. (St. § 584.) In cases of intestacy, the law of the domicile of the deceased determines the fund out of which debts shall be paid ; and in eases of testacj', the intention of the tes- tator. (St. § 587.) ADMINISTRATION. 293 The priorities of creditors are regulated ^m in. by the domicile of the testator, although the personal assets may be situate and ad- ministered in another country. (^Wilson V. Jjady Dunsany, 18 Beav. 293.) 25* ( 294 ) Tit. in. Cap. III. Sec. I. 1. What may be IL What amounts to a mortgage, and what to u purchase with right of reDur- ch£»e. CHAPTBE III. OP MORTGAGES, PLEDGES, AND LIENS. Section I. Of Legal Mortgages of Meal Property. I. Generally every description of prop- erty, and every kind of interest in it, which is capable of absolute sale, maj- be the sub- ject of a legal mortgage or its equivalent in Equity. (2 Sp. 614.) II. It may be considered as an almost universal rule, that wherever a conveyance or assignment of an estate is originally in- tended as a security for money, whether this intention appears on the deed itself, or by any- other instrument, or even by parol evidence, and whether directly or indirectly, it will ever after be considered in Equity as a mortgage, and therefore redeemable on the usual terms, though, at the time of the loan or as part of the same transaction, there may be an express agreement between the parties that it shall not be redeemable, MOKTGAeES OF REALTY. 295 or that the right of redemption shall bo coiir tit. iii. fined to a particular time or to a particular sec^i. person or description of persons ; for such an agreement will be void. (St. § 1018; 2 Sp. 618—623,) But there may be an absolute bond fide sale and conveyance, with a collateral agreement for repurchase and reconveyance on repayment of the pur- chase-money, and such collateral agreement may either be introduced into the agree- ment for sale at the time, or may be made at a subsequent period. (2 Sp. 619, 621 ; Alderson v. White, 2 D. & J. 97.) If the money paid by the grantee would be a grossly inadequate price for the abso- lute purchase of the estate ; if he was not let into immediate possession of the estate ; if he accounted for the rents to the grantor, and only retained an amount equivalent to interest; or if the expense of preparing the deed of conveyance was borne by the grantor; each of these circumstances has been considered as evidence, showing, with more or less cogency, that the conveyance was intended merely by way of security. (2 Sp. 620, 622.) A conveyance will not be deemed a mort- gage or held to be a security only, though 296 MORTGAGES OF REALTY. Cap Si' **' ^^ ^'"' ^^ undervalue, if it is not so gross sec^. ^g ^Q show that necessity or pressure amounting to fraud could alone have in- duced the person to enter into such a con- tract, and though the purchaser afterwards declare that he will take the money given as the consideration at any time, with damages for it, or the like ; for if it is not a mortgage in principio, it shall not be so by parol agree- ment afterwards. (2 Sp. 622, 623.) Where land is conveyed on trust, in case t a sura and interest should not be paid by a day named, to sell, and after payment of principal, interest, and costs, to pay over the surplus and reconvey the unsold part of the estate ; and the grantee covenants not to sell without giving six months' notice; and the grantor covenants to pay the debt and in- terest ; but there is no proviso for redemp- tion ; this is a mere mortgage, and the grantor is entitled to six months' time to redeem. {Bellv. Garter, 17 Beav. 11.) Where the transaction is clearly one of purchase with a right of repurchase, the time limited ought precisely to be observed, and there is no principle on which the Court can relieve, if it is not so observed. (2 Sp. 623.) MORTGAGES OF REALTY. 297 In case ^ the transaction is one of repur- J"- Sj- chase, and not of redemption, if the pur- seoj. chaser dies seised, and then the right of repurchase is exercised, the money will go to the real representatives, and not to the personal representatives, as it would in the case of a mortgage. (2 Sp. 624.) ' If a transaction is to be considered in the Mutuality. light of a mortgage as to one party, it must as regards the other. (2 Sp. 623.) III. 1. So long as the mortgagor contin- iii. Mortga- gee's estate, ues in possession, the mortgagee's estate is right^ and r sin 60.168 • not absolute, even at Law. For, by stat. 15 ^ ^^^^ ^ & 16 Yict. c. 76, ss. 219, 220, if an ejectment see's estate. is brought by the mortgagee, provided no suit is pending in any Court of Equity for redemption or foreclosure, the payment of principal, interest, and costs will, except in certain cases, be deemed a satisfaction of the mortgage, and the Court may compel the mortgagee to reconvey the estate.(a) But when the mortgagor has ceased to be in possession, and there has been a default in the payment of the money at the stipulated time, the estate of the mortgagee becomes absolute at Law. Yet this estate is in Equity (a) On the subject of powers of mortgagees, see stat. 23 & 24 Vict. 0. 145, Part II. 298 MORTGAGES OF KEALTT. Tit. III. treated as a mere security for the principal Cap. III. •' '■ ^ seoi. j^^(] interest and costs properly incurred in relation to the mortgage, and follows the nature of the debt. And, although, where the mortgage is in fee, the legal estate de- scends to the heir of the mortgagee, yet in Equity it is deemed a chattel interest and personal estate, and belongs to the personal representatives as assets. (Coote, Mortg. 3d ed. 539 ; 2 Sp. 296.) 2. Mortga- 2. As to the mortgagee's rights : he is ossession, ' entitled to enter into possession of the lands, leases, rents. and to take the rents and profits, unless there is some agreement to the contrary; and if the security is insufficient, he may fell timber, and sell it towards liquidation of his debt, and may open mines; but, with this excep- tion, he may not commit waste. He may grant leases, subject to the equity of re- demption, and avoid any leases that have been made by the mortgagor subsequently to his mortgage. He must, however, ac- count for the rents he receives, or, but for his wilful default, might have received, and pay an occupation-rent for such part as he may keep in his own possession. (St. § 1016, 1016 b; 2 Sp. 642, 645, 646, 648; Coote, Mortg. 3d ed. 332, 343, 344; Millet MORTGAGES OF REALTY. 299 V. Davey, 31 Beav. 470; Tudor's Bq. Cas. If^Yii 975; Seton's Decrees, 3d ed. 382 ; Parkinson ^^■' V. Banbury, L. E. 2 Ap. Ser. (H. L.) 1.) Where persons, who, though in fact mort- gagees, enter into possession of the rents and profits in another character (e. g., as pur- chasers), they are not answerable for what, without wilful default, they might have re- ceived. (^Parkinson v. Sanbury, L. E. 2 Ap. Ser. (H. L.) 1.) A mortgagee is not allowed to obtain any Limit to mortgagee's advantage out of the security beyond his aivaatage. principal and interest. A mortgagee cannot, in the first instance, Conversion of interest stipulate, that if the interest be not paid at into ^ ^ principal. the time, it shall be converted into principal. (2 Sp. 628.) To convert interest into prin- cipal, the interest must first become due, and then there must be an agreement in writing signed, to make it principal, at least so as to affect the estate ; and the interest cannot even then be turned into principal to the prejudice of subsequent incumbrances of which the mortgagee has notice at the time of the agreement. (2 Sp. 656.) A stipulation that the mortgagee shall increase of interest on receive interest at £4 per cent, if regularly default in ■^ o J regular paid, but £5 per cent, if default be made, is payment. 300 MORTGAGES OF REALTY. Tit. III. Cap. III. Sec. I. Leases to the mort- gagee. What the mortgagee may add to his deb^. good, if £5 per cent, is reserved by the deed. But if £4 per cent, only is reserved, a stipu- lation that £5 per cent, shall be paid, if the interest be not regularly paid, is in the nature of a penalty, against which the Court -will relieve. (2 Sp. 631.) (a) Leases made by the mortgagor to the mortgagee at a rent, are looked upon with great suspicion, as likely to have originated in the mortgagee having taken advantage of the necessities of the mortgagor, to ob- tain a lease upon terms upon which the property would not have been let except for those necessities. (2 Sp. 632.) T.he mortgagee in possession has a right to add to his debt any sums he may be compelled to pay for arrears of rent, or for maintaining the title to the estate, or for rebuilding the premises, or for necessary repairs, or the expenses of renewing a re- newable leasehold, with interest from the time the sums were advanced. But he can- not, by contract or otherwise, entitle him- self to make any charge for management. (2 Sp. 649, 650, 653.) (a) As to the validity of an agreement for making a larger amount of principal payable in default of punctual payment, see Thompami t. Hudmn, L. R. 2 Eq. Cas. 612 j 2 Ch. Ap. 255. MORTGAGES OP RKALTY. 301 The mortgagee is not allowed to make any J'''- un- charge as receiver, if he himself has person- seoj. ally received the rents, even though it may forre&eiyer. have been agreed that he should be paid for his trouble in receiving them, and though a receiver might have been employed at the expense of the mortgagor. And before the Stat. 23 & 24 Vict. c. 145, and independently of any express provision, it was only where the owner himself, in the ordinary course of management, would have had to employ one, that the mortgagee was entitled to employ a bailiff or receiver, unless with the sanction of the mortgagor. (2 Sp. 807.) A mortgagee of a West India estate may Mortgageof ° ° •' West India stipulate that theconsignments shall be made estate. to him. And, if out of possession, he may take a certain reward for the management of the estate, provided he do not make that em- ployment a condition. But when he takes possession, he is not at liberty to charge the mortgagor, whom he has ousted, for the trouble he takes on his own account; and he cannot charge or stipulate for commi.ssion on consignments, insurance, and the like, but stands in the position of the mortgagee in possession of an English estate. (2 Sp. 630.) As a mortgagee is not allowed any advan- advowson" 26 302 MORTGAGES OF REALTT. Tit. hi. Cap. IIL Sec. I. Pre-emp- tion. Production of deeds by a mort- gagee. Eight of mortgagee to devise tlie property. tage beyond securiDg his principal and in- terest, where an advowaon is mortgaged, and the living becomes vacant prior to the fore- closure, the mortgagee is compellable in Equity to present the nominee of the mort- gagor; even although nothing but the ad- vowson is mortgaged, and the deed contains a covenant that on any avoidance the mort- gagee shall present. But he may pray a sale of the advowson. (2 Sp. 629.) The mortgagee is at liberty to stipulate for the option of pre-emption, in case tiie mortgagor should determine to sell. (2 Sp. 631.) A mortgagee is not bound to produce his mortgage-deed, or indeed any of the deeds in his possession, to the mortgagor or any person claiming under him, until payment of the principal and interest due and his costs, though the application be made bond fide, only to obtain information with a view to paying off the mortgage. (2 Sp. 655.) As an incident to the right of the mort- gagee, he is at liberty to devise the legal estate in the mortgaged property to trustees, if he thinks fit, instead of allowing it to descend to his heir-at-law ; and the mort- gagor must bear the costs of obtaining a MORTGAGES OF REALTY. 303 reconveyance, although they may have been ^'J- "J- increased by such devise. (2 Sp. 669.) sec^. If a mortgagee in possession turns out or Mortgagee , . ejecting or refuses to accept a responsible tenant, he is refusing '■ ^ ' tenant. liable for any loss occasioned thereby. (2 Sp. 806.) Both at Law and in Equity, in the absence Tacking, of particular circumstances, statutes, judg- ments, and recognizances, iall rank accord- ing to their dates. (2 Sp. 727.) And so, in Equity, do equitable charges of every kind, where the equities are equal in. all other respects than that of priority of time. (2 Sp. 727—732 ; Coote on Mortg. 410, ed. 3 ; remarks of V. C. Kindersley, in Bice v. Bice, 2 Drewry, 78; Cory v. IJyre, 1 D. J, & S. 149.) But if a third incumbrancer by mortgage, without notice of a second incum- brance at the time of lending his money, purchases the first legal mortgage, judgment, statute, or recognizance, even after notice of the second mortgage, so as to acquire the legal title, and holds both securities in his own right, Equity will tack both incum- brances together in his favor ; so that the second mortgagee will not be permitted to redeem the first, without redeeming the third also ; on the principle that where the 304 MORTGAGES OF REALTY. cll' III" equities are equal^ the Law shall prevail. seo^i. -g^^ jf ^ puisne creditor by judgment, statute, or recognizance, buys in a prior mortgage, he will not be allowed to tack his judgment to such mortgage, so as to cut out or post- pone a mesne mortgage ; because he did not originally advance his money on the imme- diate credit of the land ; and, by his judg- ment, he did not acquire any right in the land, but before the statute 1 & 2 Vict. c. 1 10, only a lien on the land, which might or might- not be enforced on it (see St. § 412—416, 418, 421 ; 2 Sp. 734, 735, 737, 740 ; Marsh v. Lee, 1 Lead. Cas. Eq. 2d ed. 494 et seq.; Spencer v. Pearson, 24 Beav. 266; but see 2 Sp. 722, 723); although now, under the 13th section of that Act, a judgment will operate as a charge on a real estate. If a first mortgagee, who has the legal estate or the better right to call for it, lends to the mortgagor a further sum on another mortgage, or on a statute or judgment, or even if he lends a further sum on note, and it is distinctly agreed at the time to be on the security of the mortgaged property, he will be entitled to retain till both sums are paid, as against a mesne mortgage, of which MORTGAGES OF REALTY. 305 he had no notice at the time of the further Jit. iii. Cap. hi. advance. (St. § 417, and note ; 2 Sp. 721, ^''±J- 735, 739 ; Tassell v. Smith, 2 D. & J. 713.) Indeed it may be more generally stated that if a mortgagee has the legal estate, and makes a further advance, without notice of any claim adverse to his title, he is entitled to tack the further advance to the original mortgage, as against any such adverse claim. (Young v. Young, L. E. 3Eq. Cas. 801.) But ■where a first mortgage extends to future advances^ further advances made by the first mortgagee, after notice of the second mortgage, have no priority over the latter, even though the second mortgagee had notice of the nature of the first mortgage^ (Bolt V. Hopkinson, 25 Beav. 461 j 3 D. & J. 177; 9 H. L. 514.) A statute or judgment creditor who is the first incumbrancer, cannot, by buying a sub- sequefit mortgage, tack it to his statute or judgment, because he did not advance his money on the immediate credit of the land. (2 Sp. 740.) And a prior mortgagee, having a bond debt (which per se is not a charge on land), whether prior or subsequent to his mortgage, cannot tack it against any inter- vening incumbrancer of a superior rank be- 26* 306 MOKTGAGBS OF REALTY. Trr. III. tween his bond and mortgage, or against seoi. other creditors, or even against the mortgOr gor himself, or a purchaser of the equity of redemption, but (only to avoid circuity of action) against the heir or beneficial devi- see, if in the bond the heirs are expressly bound. (St. § 418; 2 Sp. 723—725, 735; Coote, Mortg. 3d ed. 891—3.) And when a puisne mortgagee has bought in a prior incumbrance, but the legal estate is vested in a trustee, or the puisne mort- gagee has not obtained the legal title, or he takes en autre droit, the incumbrances are paid in the order of their priority in point of time, according to the maxim, Qui prior est tempore potior est jure, and the principle that he who has the better right to call for the legal title, or for its protection, shall prevail. (St. § 419 ; 2 Sp. 745.) Postpone- Where a first mortgagee voluntarily, dis- priorraort- tinctly, and unjustifiably, through fraud or gross negligence, allows the mortgagor to retain the title-deeds, or allows the mort- gagor to get possession of them, he will be postponed to a subsequent mortgagee or purchaser without notice of the prior mort- gage. But the onus of proving such fraud or negligence is on the person seeking to MORTGAGES OP REALTY. 307 postpone the other. (St. § 393, and see § tit. iii. 1010; 2 Sp. 766, 767; Finch v. Shaw, 19 sec.™' Beav. 500 ; ^f. a. Golyer v. Pinch, 5 H. L. 905; Carter v. Garter, 3 K. & J. 617, 646— 648; Espin v. Pemberton, 4 Drew. 333; Dowles V. Saunders, 2 Hem. & Mil. 242; Layard v. Maud, L. E. 4 Bq. Cas. 397.) So if he conceals his mortgage from a person who, as he knows, is about to lend money to the mortgagor, he will be postponed to that person. (St. § 390; 2 Sp. 732, 766.) A second incumbrancer upon equitable rever- sionary interest in stock, who has given notice of his incumbrance to the trustees of the property, whether he has inquired of them as to the state of the title or not, will be preferred to a prior incumbrancer, who has omitted to give notice of his incum- brance to the trustees. (2 Sp. 764.) And if a prior incumbrancer on real estate devised in trust for sale, omits to give notice to the trustee, before notice is given of a subsequent incumbrance, he will be postponed to the subsequent incumbrancer. (Lee v. Howlet, 2 K. & J. 531 ; Consolidated Investment and Insurance Company v. Biley, 1 Gif. 371.) But a mortgagee of an equitable estate in land not directed to be sold has no occasion 308 MORTGAGES OF REALTY. Cap ill *° S*^'' notice to the trustees, either tocom- sec^. piete his title as against his mortgagor, or to secure to himself his priority against subseqent incumbrancers. {Booper v. ffar- risson, 2 K. & J. 86.) A declaration of trust of an outstanding term, with a delivery of the deeds creating and continuing the term, has been held to give a subsequent incum- brancer a better equity than a mere decla- ration of trust taken by a prior incumbran- cer. (St. § 421 b, and note ; 3 Sp. 729.) And if the first incumbrancer has a declaration of trust only by the borrower, and none by the trustee, and the second incumbrancer has a formal mortgage of the equity of re- demption, and the trustee is a party to that deed, and declares himself to be a trustee for the second incumbrancer, the second will have a better equity to call for the legal estate than the first. (2 Sp. 729.) 3. Mortga- 3. As to the remedies of the mortgagee to gee's reme- dies, secure the discharge of the mortgage, a bill Foreclosure, for a foreclosure is -in common eases deemed the appropriate and exclusive remedy. (St. § 1026.) An intermediate mortgagee is entitled to file a bill of foreclosure against the mort- gagor and the subsequent mortgagees. (2 MORTGAGES OF REALTY. 309 Sp. 674.) A person entitled to a part only ^'t. m. of the mortgage-money cannot file a bill to secjc. foreclose a portion of the estate. (2 Sp. 674.) A bill of foreclosure may be filed not- withstanding a decree for redemption ; for the mortgagor may make default. (2 Sp. 675.) "Where a decree of foreclosure is made against an infant heir or devisee of the mortgagor, the infant has a year and a day to show cause against the decree on his coming of age ; but he can only do this by showing error in t-be decree, or falsifying the accounts for fraud or error. (2 Sp. 680, 681.) A foreclosure suit cannot be brought but within twenty years after the right to bring such suit first accrued, or within twenty years after the last payment of any part of the principal money or interest. (See stat. 3 & 4 Will. IV. c. 27, ss. 24, 28, and stat. 7, Will. IV. and 1 Vict. c. 28 ; Fisher, Mortg. 153 — 4; Sngd. Stat. 2d ed. 94; Coote, Mortg. 3d ed. 449.) By the stat. 15 & 16 Vict. c. 86, s. 48, on a Sale, foreclosure suit being instituted, the Court may now decree a sale. Before that Act, where there was no power of sale inserted in the mortgage-deed, Courts of Equity 310 MORTGAGES OF KEALTT. Cap lii' I'sfused to decree a sale against the -will of seo^. ^jjg mortgagor, except in these cases : (1.) Where the estate was insufficient to pay the incumbrances. (2.) Where the mortgagor was dead, and there was a deficiency of per- sonal assets. (3.) Where the mortgage was of a dry reversion. (4.) Where the mort- gagor died, and the estate descended to an infant. (5.) Where the mortgage was of an advowson. (6.) Where the mortgagor be- came bankrupt, and the mortgagee prayed a sale. (7.) Where the mortgagor was dead, and the mortgagee, by his bill brought against the executor or administrator and the heir, prayed for a sale of the mortgaged estate, alleging it to be a scanty security, and for the payment of any deficiency out of the general estate of the mortgagor. (8.) Where the mortgage or charge was purely equitable, as by a deposit of title-deeds. (9.) Where the land in mortgage was subject to a sale by the local Law, as in Ireland. (St. § 1026; 2 Sp. 676—678.) The ground of the distinction, as it respects the first seven of these cases, would appear to be this : that, from the nature of the property, it would not be worth while to redeem it, or from the circumstances of the mortgagor, MORTGAGES OP REALTY. 311 he or his representatives were unable to ^'^- ™- redeem it. sec^i. Though a power of sale be harshly exer- cised, and at a time when, having a regard to the interests of the mortgagee, he would not have been advised to sell, yet the sale cannot be impeached on that account. (2 Sp. 634, 646.) But where the power of sale is given to a trustee, it is his duty to attend equally to the interests of both parties. (2 Sp. 636.) And a mortgagee ought not to exercise a power of sale for other purposes than the recovery of his money. {Robertson V. JVorris, 1 Gif 421; affirmed on appeal.) And if he sells, after tender of principal and interest (and costs, unless they are unascer- tained, and the security ample), the sale will be set aside as against him and a purchaser with notice of the tender. (Jenkins.v. Jones, 2 Gif. 99.) A sale may be made without notice to the mortgagor, and without his concurrence, un- less that is made a condition. (2 Sp. 635 ; ^ Newman v. SeJfe, 33 Beav. 522.) Where notice to the mortgagor is requir- ed, a clause that a purchaser should not be required to ascertain that notice had been given, and that the mortgagee's receipt 312 MORTGAGES OF REALTY. Cap Wi ^'^<'"' policy, and the plaintiff has participated therein, and is in pari delicto, but yet public policy would be more promoted by assisting the plaintiff, than by refusing to assist him. (St. § 298, 695 ; W v. B , and B V. W , 32 Beav. 574.) Where both parties are concerned in an illegal act, it does not always follow that they stand in pari delicto; for one party may act under circumstances of oppression, imposition, hardship, undue influence, or great inequality of condition or agej so that his guilt may be far less in degree than that of his associate in the offence. (St. § 300.) In cases of usury, (a) if the lender comes (a) See supra, p. 24, note. 34 398 CANCELLING, DELIVERING UP, Tit. Cap, ly- into a Court of Equity, seeking to enforce the contract, the Court will refuse to give any assistance, and will repudiate the con- tract. But, on the other hand, if the bor- rower comes into a Court of Equity, seek- ing relief against the contract, the Court will interfere, although only on the terms that the plaintiff will do equity, by paying the defendant what is really due to him,, deducting the usurious interest. (St. § 301.) And if the borrower has paid the money, Courts of Equity, and indeed Courts of Law also, will assist him to recover back the ex- cess beyond principal and lawful interest ; for the maxim volenti non fit injuria, does not apply to the borrower, since he cannot be said to have voluntarily paid the usurious interest ; and as to being a participator in the offence, he was compelled to submit to the terms which oppression and his neces- sities imposed on him. (St. § 302.) But relief is not granted where both par- ties are truly in pari delicto; for the maxim is, that in pari delicto, potior est conditio defendentis et possidentis. (St. § 298, 299.) An exception occurs, however, as already stated, where public policy would thereby be promoted; as in the case of a gaming AND SBCURINO OF DOCUMENTS. 399 security, which is void, and money paid on '^Jl^^J' it may be recovered back. (St. § 303, 304.) The Court will not interfere between a Voluntary deed. voluntary donor and donee, either by causing a voluntary deed to be delivered up to the donor, or by decreeing specific performance of it in favor of the donee. And a pur- chaser for value of an interest in land from a voluntary donor, cannot require the vol- untary deed or agreement to be delivered up to him to be cancelled. (De Hoghton v. Money, L. E..1 Bq. Cas. 154.)^^//3-e^i^ ^fi Forged instruments may be decreed to be Forged in- ° struments. delivered up, without any prior trjal, on^ the point of forgery. (St. § 701.) Assistance will often be given even in re- Delivery up - of unexcep- eard to unexceptionable instruments, ihe tionaUe ^ ■'■ instruments Court of Chancery will order them to be '"ilJf'J, delivered up to the party entitled to theiJi, t*^™- if his title to the property to which they relate is not disputed. But where the title to the possession of deeds and other writings depends on the validity of the title of the party to the property to which they relate, and he is not in possession of the property, and the evidence of his title to it is in his own power, or it does not depend on the production of the deeds or writings of which 400 CANCELLING OF DOCUMENTS, ETC. capT' ^® prays the delivery; in such case he must first establish his title to the property, be- fore he can come into a Court of Equity for a delivery of the deeds. (St. § 703.) Inspection Again, persons having rights and inter- and copies of deeds. ests in real estate are entitled to come into Chancery for the purpose of having an in- spection and copies of the deeds under which they claim title. (St. § 704.) Securing of And remaindermen and reversioners, and documents. other persons having limited or nltenor in- terests in real estate, have a right, in many, cases, to have the title-deeds secured or brought into Chancery for preservation. But this will not be directed, unless it clear- ly appears that there is danger of a loss or destruction of the instruments in the hands of the persons possessing them; and also that the interest of the plaintiff is not too contingent or too remote to warrant the proceeding. (St. § 704.) Delivery up Bonds and notes given by a relative have of secu- o "^ been ordered to be delivered up by execu- tors or administrators, where it has been fairly inferable, from the conduct of the deceased, that he did not intend that any use should be made of the securities. (See St. § 705 a— 706 a.) rities. -( 401 ) CHAPTEE II. OF PROTECTION FROM LITIGATION RESPECTING THE PKOPERTT OF ANOTHER, BY MEANS OP INTERPLEADER. There was a process of interpleader at tit. iv. Common Law, but it had a very narrow „ — ■^ Common range of application (St. § 801) j and prior ^^^ process. to the statute 1 & 2 Will. IV. c. 58, it fell into entire disuse (St. § 805) ; and although the application of the legal remedy of inter- pleader has been greatly extended, yet the jurisdiction in Equity seems to have been left substantially on the old foundation. (St. § 823.) A bill of interpleader is one which is Definition '■ of a bill of filed by a person from whom two or more inter- •^ ^ pleader. other persons, whose titles are connected (by reason of the one being derived from the other, or of both being derived from a common source), and whose rights he cannot readily determine, have claimed the same thing, wherein he himself claims no interest, 84* 402 INTBRPIiBADBE. Tit. IV. and the object of which is to compel them to — contest the matter between themselves, with- out involving him in any vexatious litiga- tion respecting it. (See St. § 806, and notes, and 807, 810—816, 820, 824; Jones v. Thomas, 2 Sm. & Gif. 186.) uiustra- Thus, where a tenant is liable to pay rent, tionsinthe , . . ,.,. caseof land- but there are several persons claiming title lord and tenant. to it, in privity of contract or tenure, he is entitled to file a bill of interpleader to compel them to ascertain to whom the rent is payable. (St. § 811.) But if a claim to rent is set up by a mere stranger, under a title paramount, and not in privity of con- tract or tenure, the tenant cannot compel his landlord to interplead with such a stranger; for the demand made by the latter is not a demand of the same nature or in the same right : the stranger cannot demand the rent, as such, but if he succeeds in an ejectment, he has only a right to damages for use and occupation; whereas the landlord claims the rent, as such, in privity of contract, tenure, and title. (St. § 812.) Besides, the tenant is under a contract to pay the rent to his landlord. (St. § 817 b.) (On this subject, see Cook V. Earl of Bosslyn, 1 Gif. 167.) between the Where the title of the one claimant is not INTEBPLEADEB. 403 derived from that of the other, nor are they. '^'J^^J- both derived from the same common source, titieToF but they are independent of and adverse to d^^nte. each other, the party holding the property must defend himself as well as he can at I/aw ; for if a Court of Equity were to exer- cise jurisdiction in such cases, it would be asserting the right to try mere legal titles, on a controversy between different parties, where there is no privity of contract be- tween them and the third person who calls for an interpleader. (St. § 816, 820.) Property put into the hands of a private principal agent by his principal, or received by an *^^° ' agent for his principal, is not the subject of an interpleader,, on the assertion of a claim to it by a third person under an independent adverse titlej but the agent must deliver it to the principal : for the possession of the agent is the possession of the j)rincipal. And the like doctrine would prevail in favor of a third person to whom the principal, after the bailment, had transferred the right to the property, where the transfer had been recog- nized and assented to by the agent. (St. § 817, 817 a, 818.) But if the principal has created an interest in or a lien on the funds in the hands of the agent, in favor of a 404 INTBRPLEADBK. Tit. IV. Cap. II. Ability to admit title of either claimant. Actual pro- ceedings not neces- sary. Prelimina- ries. third person, and the nature and extent of that interest or lien is controverted between the principal and such third person, there an interpleader will lie. (St. § 817 a.) It seems essential that the person by whom a bill of interpleader is filed should bo in such a position as to be able to admit the title of either claimant. Thus, a sheriff, who seizes goods on execution, cannot ordinarily maintain a bill of interpleader, on account of the existence of adverse claims to the property; for, as to one of the defendants, heneee8sarily,under ordinary circumstances, admits himself to be a wrongdoer. (See St. § 821; and Child v. Mann, L. E. 3 Eq. Cas. 806, where a bill of interpleader by a sheriff, who sold under the order of the Court of Chancery, was sustained.) It is not necessary that proceedings should have been commenced either at Law or in Equity, in order to found a jurisdiction for a bill of interpleader. (St. § 802.) In order to prevent a bill of interpleader being made the instrument of delay or of collusion with one of the parties, the Courts require that the plaintiff should make an affidavit that there is no collusion between him and any of the other parties; and also. INTERPLEADER. 405 if it is a case of money dae by him, that he Ti^ iv. should bring the money into Court, or at — least should offer by the bill to do so. (St. § 809.) ( 406 ) CHAPTEE III. OP PEOTECTION PROM REPEATED OR RENEWED LITIGATION. OR PROM UNJUST LEGAL PRO- CEEDINGS, AFFORDED BY DECREES UPON BILLS OP PEACE OR BILLS TO ESTABLISH WILLS, AND BY INJUNCTIONS. Section I. Of Bills of Peace. Tit. IV. A Bill of Peace is a bill that is filed to Sec. l ' establish and perpetuate, in favor of or Duflnition against a number of persons, some general peace. private right, which from its nature is likely to be sought to be established or overthrown by different persons, at different times, and by different actions j or to confirm and per- petuate a right which has been satisfactorily established by twoor more trials at Law, but is in danger of being again controverted. (St. § 853, 854, 859.) BILLS OF PEACE. 407 In the former of these classes of cases, tit. ly^ Sec. L plicity of suits ; in the latter, to prevent totertoc-"' Equity interferes in order to prevent multi- ence. oppressive litigation. (St. § 853, 854, 859.) An instance of the former class occurs instance of the first where a bill is filed to settle the amount class of -bius of peace. of a general fine to be paid by all the copy- hold tenants of a manor, or to establish a right of common of the freehold tenants of a manor. (St. § 856. Phillips v. Hudson, L. E. 2 Ch. Ap. 243. For other instances, see § 855, 856.) In most cases of this class, before the Pre-requi- sitestoabill Stat. 21 & 22 Vict. c. 27, enabling the Court of peace. of Chancery to try questions of fact, with or without a jury, it was held that the plaintiff ought to establish his right by a de- termination of a Court of Law, before he filed his bill in Equity. And if he did not do so, and the right he claimed had not the sanction of a long possession, and he had any means of trying the matter at Law, a demurrer would hold ; for the object of these bills, as their name itself imports, is simply to secure the quiet enjoyment of a right which, primd facie at least, clearly exists, and not to decide the question of a doubtful right. If he had not been actually inter- 408 BILLS TO ESTABLISH WILLS. cIp in ^"Ptsd or dispossessed, so that he had had seo^. jjq opportunity of trying his right, he might file a bill to establish it, and the Court would, if it was necessary, ascertain it by an action or issue at Law, and then make a decree finally binding on all parties. (See St. § 854, and note.) Eights in It scems that Courts of Eduity, on prin- contraven- lio ri"hte"^ ciples of public policy, will not, on a biU of te°*edin ^^^^ nature, decree a perpetual injunction for the establishment or the enjoyment of the right of a party who claims in contra- vention of a public right. (St. § 858.) tliis way. Section II. Of Bills to establish Wills. Sec. II. The proper jurisdiction for deciding as to Jurisdiction the validity of wills, where they are actually in general ,/ / tho°cfurt°of contested, belongs to the Court of Probate. Probate. jj^^^ Exceptions. 1. The heir-at-law may, by consent, come into a Court of Equity to have the validity of the will tried. He cannot come into Equity unless by consent ; because he has a BILLS TO ESTABLISH WILLS. 409 legal remedy by ejectment, and if there are Jit. iv. any impediments to the proper trial of the ^^f^i- merits of such an ejectment, he may come into Equity to have them removed. (St. § 1447, note ; see Stat. 21 & 22 Vict. c. 2V ; 25 & 26 Viet. c. 42; Egmont v. Barrell, 1 Hem. & Mil. 563; Cowglll v. Rhodes, 33 Beav. 310.) 2. A devisee in possession, whether legal or equitable, has an equity to have the will established against the heir, although the heir has brought no action of ejectment against the devisee, and although no trusts arc declared by the will, and although it is not necessary to administer the estate under the direction of the Court of Chancery. {Boyce v. Bossborough, 1 Kay, 71, 102, 111; 1 X. & J. 124, 139 ; 3 D. M. & G. 817 ; 6 n. L. 1 ; Williams v. Williams, 33 Beav. 306.) And the Court has jurisdiction to entertain a suit to establish a will against the parties claiming under a prior will. (^Lovett V. Zovett, 3 K. & J. 1.) 3. And where a will is contested, and it is necessary to establish Us validity, in order to accomplish purposes which it is the prov- ince of Courts of Equity to eifect (such as the execution of trusts, the marshalling of 35 410 BILLS TO ESTABLISH WILLS. Cap m assets, &e.), and the parties are dissatisfied SEfi^i. ^jjjj ^jjg probate, the Court of Equity in which the controversy is depending will cause the validity of the will to be tried; and if the will is established, a perpetual injunction may be decreed. (St. § 1445 — 7; see Sir Hugh Cairns' Act. Stat. 21 & 22 Vict. c. 27 ; and Mr. Eolt's Act, 25 & 26 Vict. c. 42.) Section III. Of Injunctions to restrain Proceedings at Law. Sec. III. A writ of injunction is a judicial j)roces8 Definition whereby a party is required to do, or to re- junction. frain from doing, a particular thing. (St. § 861, 862.) Common in- Injunctionsto restrain proceedings at Law junctions. , , . t i were either common or special. A common injunction was one that issued upon and for default of a defendant in not appearing to or answering a bill, in order to restrain him from proceeding at law touching the matter in the bill, till he should have fully answered the bill, and cleared his contempt, and the Court should make other order to the con- INJUNCTIONS. 411 trary. It was also granted where the de- ^it. ly^ fondant obtained an order for further time sec^ii. to answer. This kind of injunction was of course; but a, prima facie case must now be made by the bill, and must be supported by affidavit. (Senior v. Pritchard, 16 Beav. 473 ; I/ovell V. Galloway, 17 Beav. 1; Uarl of Ox- ford's Case, 2 Lead. Cas. Eq. 2d ed. 504 et seq. ; 15 & 16 Vict. c. 86, s. 58; Consol. 0/d. XXV. ; 2 Dan. C. P., 4th ed., 1462 (6), 1472 (m).) Injunctions upon other occasions, or in- Special in- •' ^ junctions. volving other directions, were called special injunctions. (St. § 892.) And the granting or refusing of them is a matter resting in the sound discretion of the Judge. (St. § 863.) Injunctions to restrain proceedings at Law injunctions '' perpetual may be perpetual or temporary, total or par- and total, or tial, qualified or unconditional. (St. § 886.) And they may be granted at any stage of the legal suit. Thus an injunction is some- times granted to stay trial; sometimes after injunctions ° ^ ' granted at verdict to stay judgment; sometimes after t]JJf*^ff°^ judgment, to stay execution; sometimes '■"'' after execution, to stay the money in the hands of the sheriff, if it is a case of fieri facias, or to stay the delivery of possession, if it is a writ of possession. (St. § 886.) 412 INJUNCTIONS. Tit. IV. Cap. III. Sec. III. and on a variety of occasion?. Bills for an injunction after judg- ment. There is an almost infinite variety of occa- sions on which an injunction may issue to stay legal proceedings. (St. § 884.) In general it may be stated that an injunction will issue in all cases where, by accident, fraud, or otherwise, it would be against con- science to proceed in another Court. (St. § 878—885, 887, 889.) Bills for an injunction restraining a person from availing himself of a judgment actually obtained at Law, which it would be against conscience to execute, are usually called Bills for a New Trial. (St. § 887.) They have not been countenanced much of late years. In general it has been considered that the ground must be such as would be a ground for a bill of review of a decree in Equity on the discovery of new matter. (St. § 888.) And Courts of Equity will not relieve against a judgment at Law, or in a foreign Court, upon a ground which could have been used and would have been available as a defence at Law or in such foreign Court. So that no relief will be granted where the party aggrieved has been guilty of laches in omit- ting to procure the proper proofs before the trial by means of a bill of discovery, or in neglecting to apply for a new trial within the INJUNCTIONS. 413 proper time. Nor will relief be granted tit. iv. upon a ground which has been fully and ^™' "^' fairly tried at law or in a foreign Court. (St. § 887, 894, 895, 895 a.) The Court of Chancery will not stay pro- injunction •' •' ^ not granted ceedings in any criminal matter, or in any aga'nstany , o .^ 3 ./ proceedings cases not strictly of a civil nature, such as "f acYvu'^ proceedings on a mandamus, or an indict- °'''"'^^- ment, or an information, or a writ of prohi- bition, unless the parties who- are seeking redress by such proceedings are also plain- tiffs in Equity, proceeding at the time, in regard to the same matter of right, for redress in the form of a civil suit, and of a criminal prosecution. (St. § 893.) Nor will the Court grant an injunction in what cases of civil against any legal proceedings on the ground proceedings of a mistake in pleading or in the conduct of the cause ; for a party has no right to invoke the aid of a Court of Equity, or to subject the opposite party to fresh litigation, in order to remedy the consequences of the unskilful- ness, carelessness, or inadvertence of those whom he employs. Nor will such an injunc- tion be granted on the ground of a failure in obtaining fresh evidence, or merely to let in new corroborative proofs ; for that would be to keep alive litigation ; nor on the ground 35* 414 INJUNCTIONS- Cat in ^^^^ ^ question of law has been erroneously SEa£iL decided by a Court of Law ; for that would be to constitute the Court of Chancery a Court of Appeal from the decisions of Courts of Common Law. (See St. § 897.) injanction The Writ of injunction is not addressed to to the par- the Courts in which or by whose authority iies, not to J J the court, the prohibited proceedings are carried on. It does not affect to interfere with them. It is directed only to the parties, prohibiting them from making an unfair use of the pro- ceedings of a Court of Law. (St. § 875.) Injunction On similar principles, where both the par- against a suit in a ties to a suit in a foreign country are residing foreign o J o country. within this country, the Courts of Equity have full authority to act on them, whether by injunction or otherwise, with regard to such suits ; because they can act on the par- ties in personam, without presuming to direct or control the foreign Court. (St. § 899, 900.) (415) CHAPTBE IV. OF PROTECTION FROM LOSS OB INJURY, IN The jurisdiction in granting injunctions, tit. iv. in such cases, has arisen either from the want Jimsdio of any legal remedy, or from the imperfection tion. and inadequacy of the legal remedy in cases where any such remedy exists. (St. § 864.) By " The Common Law Procedure Act, 1854," II & 18 Yict. c. 125, s. 79—82, the power of granting injunctions in certain cases is given to the Superior Courts of Com- mon Law. This, however, does not oust the jurisdiction of th§ Court of Chancery, but only gives concurrent jurisdiction to the Courts of Common Law. By the stat. 28 & 29 Yict. c. 99, s. 1, par. 8, the power of granting an injunction in certain cases, is given to the County Courts. Injunctions, when granted on bills, are 416 INJUNCTIONS. cip iv ^i*-^^^ temporary, as until the coming in of injuDctions t^® defendant's answer, or until the further temporary Order of the Court, or until the hearing or^perpe ^^ ^^^ cause ; Or they are perpetual, as when they form a part of the decree after the hearing, and amount to a perpetual pro- hibition. (St. § 873.) total or par- Injunctions may be also either total or tial, quali- i./>i ,.. ^ r»o fled or un- partial, qualified or unconditional. (St. § conditioual, i ' ^ v s preventive 886.) And some are of a preventive, others or restora- ^ ^ ' *"'^- of a restorative character. The former are the most common. (St. § 862.) Injunction An injunction will not be granted, unless prayed for. specially prayed for by the bill ; because the defendant might make a different case by his answer against the general words of the bill, from what he would make against the special prayer for an injunction. (St. § 863.) Equity will Courts of BquHy constantly decline laying not limit its i.i,i, ,..,. power of down any rule which shall limit their power (granting in- junctions, and discretion as to the particular cases in which injunctions shall be granted or with- held. (St. § 959 b.) And it would seem. General that unless some special reason intervenes, rule as to .,, . i, ... cases w;here they wul in all cascs grant an injunction to granted. protcct their own officers, who execute their process, against any suit brought against INJUNCTIONS. 417 them for acts done under or by virtue of Tir- iv. such process (St. § 891) ; and to restrain gg^T^g. persons from making an unfair use of a poluteTout. Court of Law, which we have considered in the preceding Chapter; and to prevent any one from prejudicing another, contrary to equity and good conscience (see St. § 903—908, 927—929, 951—959) : so that it would appear to be only needful to advert to a few specific cases presenting points which are not of a suflSciently obvious char- acter to be omitted. I. An injunction will be granted to re- i. waste, strain voluntary waste. (St. § 912 — 919.) But Courts of Equity have no means of in- terfering in eases of permissive waste by a tenant for life. {Powys v. Blagrave, 1 Kay, 495 J 4 D. M. & G. 448.) A tenant for life impeachable of waste is only allowed to fell timber, when, where, and in such manner as that it will be for the benefit of the succession ; and he is not entitled to the timber when cut, (2 Sp. 570; Bagot V. Bagot, 32 Beav. 509.) A tenant for life, unless unimpeachable for waste, is not entitled to open any mines of coal or minerals or quarries which had not been previously opened, but may work 418 INJUNCTIONS. cip w ''P®" mines. (8 Sp. 573 ; Bagot v. Bagot, 32 — ' Beav. 509.) Equitable The Court of Chancery will sometimes interfere with respect to what is commonly, although with no great propriety, called equitable waste (St. § 912); that is, such destructive or injurious acts as would not be punishable as waste at Law, because con- sistent with the legal rights of the party committing them, but which are considered as waste, and as unjustifiable, in the view of a Court of Equity, as occasioning an unconscientious and irreparable injury to the interests of the other parties ; as where a tenant for life without impeachment of waste, or a tenant in tail after possibility of issue extinct, or a tenant in fee with an executory devise over, attempts or intends to pull down houses, or totally to destroy a wood, or to cut down trees which were planted, even though by himself, or were left standing for the sheltei* or ornament of the house or its grounds. (St. § 915 ; 2 Sp. 570, 571 ; Micklethwait v. Micklethwait, 1 D. & J. 504 ; Turner v. Wright, 1 Johns. 740 ; 2 D. F. & J. 234.) Waste in On similar grounds, although in general the case of . ^^ .n • n i tenants iQ the Court Will not interfere by injunction INJUNCTIONS. 419 to prevent waste as between tenants in ^it. iv. common, or coparceners, or joint tenants, ^qj^I^ (.„. because they Lave a right to enjoy the P„™"i^t' estate as they please, and because they can *™*°*^- make partition when they choose, so as to prevent future waste j yet the Court will interfere in special cases, as where the waste is destructive of the estate, and not within the usual legitimate exercise of the right of enjoying the estate. (St. § 916 ; and see 909, note.) II. In the case of public nuisances, an ii. PuWic nuisances, information lies in Equity to redress the grievance by way of injunction. (St. § 923, 924 a.) In regard to private nuisances, in Private nuisances. order to justify the interposition of a Court of Equity, there must be such an injury as from its nature is not susceptible of being adequately compensated by damages at Law, or such as from its continuance must occasion a constantly recurring grievance, which cannot be prevented otherwise than by an injunction. (St. § 925, 926; see Eaden v. Firth, 1 Hem. & Mil. 573 ; Tap- ping V. St. HeUn's Smelting Company, L. E. 1 Ch. Ap. 66.) III. The Court of. Chancery frequently iii. Patents, interferes in cases of patents for inventions. 420 IISTJUNCTIONS. cip. iv. (S^- § 930—933; Clark v. Fergusson, 1 Gif. 184.) If the patent has been recently- granted, and its validity has not been already ascertained by a trial, and the defendant denies it, or puts the matfer in doubt, there, in general, the Court will not grant an immediate injunction, but will require the validity of the patent to be as- certained in the first instance, retaining the bill in the meantime. But if the patent has been granted some length of time, and the patentee has put the invention into public use, and has had an exclusive posses- sion of it under his patent for such a period of time that there is a fair ground for pre- suming that he has an exclusive right, the Court will ordinarily interfere by way of preliminary injunction, pending the pro- ceedings; reserving, of course, until the ultimate decision of the cause, its own final judgment on the merits. And an injunc- tion will be granted after the time limited for the expiration of a patent, to restrain the sale of articles manufactured in viola- tion of the patent, while it was in force. (St. § 934.) IV. Copy- IV. Courts of Equity often afford protec- riglits. . -1 ./ r tion to copyrights, and act upon similar INJUNCTIONS. 421 principles with respect to the title. (St. § tit. iv. 935, 949, 950 ; see Phillips on Copyr. 146 — ' —166.) If a work is of a clearly irreligious, im- moral, libellous, or obscene character, they will not protect it. (St. § 936—938.) It is not an infringement of the copyright of a book to make bond fide quotations or extracts from it, or a bond fide abridgment of it, or to make a bond fide use of the same common matter in the compilation of an- other work. But what constitutes a bond fide case of extracts, or a bond fide abridg- ment, or a bond fide use of the same common materials, is often a matter of most embar- rassing inquiry. (Upon this subject, see St. § 939 — 942, and notes ; and Jarrold v. Houls- ton, 3 K. & J. 708 ; Hoiten v. Arthur, 1 Hem. & Mil. 603.) It is not an infringement of copyright for a person to represent a play dramatized from a novel written by another. But it is an infringement to print and publish a play so constructed, at least if it embodies verbatim the most stirring passages from the novel. (^Tinsley v. Lacy,.l Hem. & Mil. 747.) V. Courts of Equity will also restrain the v. Letters, publication of private letters, whether of a 422 INJUNCTIONS. ci-p IV 'its*"^!"/ character or otherwise, where the publication is attempted without the con- sent of the author. The property which the receiver has in letters is of a qualified kind. To permit the receiver to publish letters of a literary character, would be allowing him to sell or give away that which belongs and may be of value to another; and to permit the receiver to publish letters of other kinds, would be allowing a practice which must prove most prejudicial to the interests of society. (St. § 944—948; see Phillips on Copyr. 27—34.) VI. Appii- yi. Applications to Parliament on private cations to Parliament, grounds may be restramed by injunction ; but applications on public grounds cannot be restrained. (^Lancaster and Carlisle Bail- way Company v. Northwestern Railway Company, 2 K. & J. 293 ; see Steele v. North Metropolitan Railway Company, L. E. 2 Ch. Ap. 237.) Courts of Equity eflfectuate their own decrees in many cases, by enjoining parties to yield up, deliver, quit, or continue the possession. (St. § 959.) ( 423 ) CHAPTBE Y. OF PROTECTION FROM ANOTHER'S ABSCOND- MENT BY THE WRIT OF NE EXEAT REGNO. The writ of ne exeat regno is a prerogative tit. iv. writ which is issued to prevent a person — from leaving the realm (St. § 1465), even though his usual residence is in foreign parts. (2 Sp. 15.) It was originally applied only to great political purposes. (St. § 1467.) And al- though it is now applied in certain cases by custom to private civil matters only, yet it is employed with great caution and jealousy (St. § 1468), after a bill filed. (St. § 1467, note.) This writ will not be granted, except in cases of equitable debts and claims ; for, in regard to civil rights, it is treated in the nature of an equitable bail. (St. § 1470.) To this, however, there are two excep- tions : 1. "Where alimony was actually de- creed by the Ecclesiastical Court, and no 424 NE EXEAT REGNO. cap^v' appeal was made against the decree, the writ was granted, unless the husband made it appear that he did not intend to leave the kingdom. And it is presumed the writ would now be granted under similar circumstances in the case of alimony decreed by the Di- vorce Court. (St. § 1471 and note, and 1472.) 2. Where there is an admitted balance due from the defendant to the plaintiff, but a larger sum is claimed by the latter, the writ will be issued. (St. § 1471, 1473.) The equitable demand for which the writ will be issued, must be certain in its nature, of a pecuniary character, and actually pay- able, and not contingent. (St. § 1474.) ( 425 ) CHAPTBE VI. OF THE PROTECTION OF PROPERTY, BY TAKING AWAY THE POSSESSION OR RECEIPT THERE- OF, OR BY REQUIRING SECURITY. I. The Court of Chancery very frequently tit. iv. prevents anticipated wrong or loss, by the — ; appointment of a receiver to receive rents ™c"'Yer%) and other income or profits. (St. § 826.) And such an appointment may be made even where the property is legal, and judg- ment creditors have taken possession of it under writs of elegit; for it is competent for the Court to appoint a receiver in favor of annuitants and equitable creditors, not dis- turbing the just prior rights, if any, of judgment creditors. (St. § 829.) A receiver so appointed is treated as Nature of virtually an officer and representative of the and pos- Court, for the more speedy getting in of such rents, income, or profits, and the secur- ing the same for the benefit of the person (o) See Stat. 23 & 24 Vict. c. 145, 8. 17—24. 36* 426 APPOINTMENT OF EECEIVEE, ETC. Cap vl ^^tit'^^ ^° it- 1° ^^^ ^^^^ '^^ adverse claims, the appointment of a receiver does not at all aflfect the right. The Court virtually becomes the landlord pro hac vice, and the receiver, as an officer of the Court, is gen- erally entitled to the possession; and his possession is treated as the possession of the Court, in the first instance, and then of the party who ultimately establishes his right to it; and, therefore, is not to be disturbed, even by an ejectment under an adverse title, •without the leave of the Court. (St. § 831, 833, 833 a.) His power. The receiver cannot proceed in any eject- ment against the tenant, except by the authority of the Court. (St. § 833.) And when in possession, he has very little dis- cretion allowed him, but must apply from time to time to the Court for authority to do such acts as may be beneficial to the estate. (St. § 833 a.) II. Payment H- I" Other cascs, the Court affords pro- or to the ' tection by an order to pay a fund into Court : party en- titled, or in Others, by directing security to be given, or money to be paid over. (St. § 826, 839 —848.) III. Deposit III- The Court will also direct that papers monts. ' and writings in the hands of executors and DELIVERY OF CHATTELS. 427 administrators shall be deposited with the tit. iv. Court for the benefit of those interested, unless there are other purposes which re- quire that they should be retained in the hands of the executors or administrators. (St. § 842.) IV. The Court will not ordinarily enter- iv. Deliv- ery of chat- tain bills for the specific delivery of chattels, teis. But where the chattel is of such a nature that the loss of it could not be fully com- pensated by damages, the Court will decree a specific delivery thereof (St. § 708—710 ; Pusey V. Pusey, Puke of Somerset v. Cookson, 1 Lead. Cas. Eq. 2d ed. 654 — 5 et seq.) TITLE V. ®f |)rotertit)e ®qtiUa. in JFaior ot f trsona un&tr JBiaaiiUts. (429) ( 430 ) CHAPTEE I. OF INFANTS. Tit. V. Cap. I. Jurisdic- tion. Appoint- ment of guardians. The care of infants, as persons who are not able to protect themselves, belongs to the Sovereign, as parens patrice ; and the correct opinion seems to be, that this prerogative was delegated to the Court of Chancery from its first establishment; and that the juris- diction does not belong to the Lord Chan- cellor only, in virtue of his general power as holder of the great seal and as keeper of the Eoyal conscience; since the jurisdiction may be exercised as well by the Master of the EoUs as by the Chancellor, and since an appeal lies, as in other cases in which the Courtof Chancery has a general jurisdiction, from the decision of the Court of Chancery to the House of Lords. (St. § 1333—7. And on this subject see Hyre v. Countess of Shaftesbury, 2 Lead. Cas. Bq. 2d ed. 538 etseq.) The Court of Chancery will appoint a suitable guardian to an infant, where there INFANTS. 431 Tit. V. Cap. I. is no other, or no other who will or can act, at least where the infant has property. If the infant has no property, the Court, per- haps, will not interfere ; not from want of jurisdiction, but because it cannot exercise its jurisdiction usefully, without having the means of applying property for the benefit of the infant. Guardians appointed by the Court are considered as officers of the Court, and are held responsible to it accordingly. (St. § 1338.) The Court will remove a guardian of any Eemovai of , guardians. kind, whenever sufficient cause can be shown for such a purpose, or will regulate and Controiov direct the conduct of the guardian in regard to the custody and education and mainte- nance of the infant, and, if necessary, will even appoint the school where he shall be educated, and will require security to be given, if there is any danger of injury to his person or property. (St. § 1339.) The doctrine of the Court is that children Eeiigion. should be brought lip in the religion of their father. So that when a deceased father was a member of the Church of England, and the mother, who was their guardian, had become one of the Plymouth Brethren, she was re- strained from taking them to a meeting- 432 INFAKTS. cip \' bouse of that sect. (In re Newhery, L. E. 1 -— ' Eq. Cas. 431, Ch. Ap. 263.) Assistance The Court Will also assist guardians in of guar- dians. Compelling their wards to go to the school selected by the guardian, as well as in ob- taining the custody of the persons of their wards, when they are detained from them. (St. § 1340.) Removal of In general, parents are intrusted with the from their -custody and education of their children, on parents. • . i i .1 i the natural presumption that the children will be properly treated, and that due care will be taken of them, in regard to learning, morals, and religion. But whenever this presumption is negatived by the actual state of the case, and a father is guilty of gross ill-treatment of his infant child, or is living in habits of gross immorality, or otherwise acts in a manner injurious to the morals or interests of his children, the Court of Chan- cery will deprive him of the custody of his children, and appoint a suitable person to act as guardian. (St. § 1341—1349 ; Swift V. Swift, 34 Beav. 266.) Conversion Guardians may change the nature of the infant's property, when it is manifestly for the bene- property. . -r-» i -fit of the infant, but not otherwise. But al- though it has been said that there is no INFANTS. 433 Equity in such a case between the represen- ^^^ ^■ tatives of the infant, nevertheless, for the purpose of preventing any such acts of the guardian, in case of the death of the infant before he comes of age, from changing im- properly, through partiality or otherwise, the rights of the parties, who, as heirs or distrib- utees, would otherwise be entitled to the property. Courts of Equity hold lands pur- chased by the guardian with the infantas personal estate, or with the rents and profits of his real estate, to be personalty, and dis- tributable as such ; and on the other hand, they treat the proceeds arising fi-om the sale of real property (as, for example, of timber cut down on a fee-simple estate of the infant) as real estate. It is common for guardians to ask the sanction of the Court to any acts of this sort; and, when the Court directs any such change of property, it directs the new investment to be in trust for the benefit of those who would be entitled to it, if it had remained in its original state. (St. § 1357.) Sometimes infants become wards of Chan- who are eery. Properly speaking, a ward of Chan- chancery, eery is a person who is under a guardian appointed by the Court of Chancery. But whenever a suit is instituted in that Court, 37 434 INFANTS, cIp T' relating to the person or property of an in- fant, although he is not under any general guardian appointed by the. Court, he is treated as a ward of the Court. (St. § 1352 ; Gynn v. Gilbard, 1 Dr. & Sm. 356.) All acts af- Any act affecting the person or state or fcctinET them must property of a ward of Chancery, unless done under the under the express or implied direction of direction of l r the Court, ^^jjg Qourt, is treated as a violation of the authority of the Court, and the offending party will be arrested for that contempt, and compelled to submit to such order, and to such punishment by imprisonment, as are applied to other cases of contempt. (St. § 1353.) Mainte- Whenever an infant is a ward of the Court of Chancery and a suit is depending in the Court, the Court will, of course, direct a suitable maintenance for the infant, having a due regard to his rank, intended profession or employment, property, and expectations. (St. § 1354.) And independently of the Stat. 23 & 24 Vict. c. 145, s. 26, maintenance will now be ordered even where the infant is not a ward of the Court, and not resident within the jurisdiction, if he has no father, or (a) See stat. 23 k 24 Vict. c. 145, s. 26. Daoce (a). INFANTS. 435 his father is unable to maintain him. fSce tit. y. V Cap. I. St. § 1354, 1354 a, 1354 b.) — Where a legacy is vested, it seems that maintenance will be ordered, though none is directed by the will, and though the interest is directed .to be accumulated. (2 Sp. 462.) And though a sum be directed to be paid periodically for maintenance, until the time for the payment of the portion, the' child will be entitled to a proportionate part dur- ing the interval between the last periodical payment and that time. (2 Sp. 462.) And when no maintenance is given, an infant child of the testator is entitled to the interest even of a legacy contingent on his attain- ing twenty-one. {Chambers v. Goldwin, 11 Ves, 1; Martin v. Martin, L. E. 1 Bq. Cas. 369.) The Court of Chancery is governed by a regard to the circumstances and state of the family to which the infant belongs, in respect to the allowance of any maintenance at all, and to the amount of such allowance. So that, although there may be a trust for maintenance under which the whole income may be applied, yet the Court will not ap- ply more of it than necessary, where the in- fants haver other sources of income. ( White 436 INFANTS. cip T' ^- ^rane, 18 Beav. 571.) And if the father — is able to maintain the infant out of his own property, the Court will ordinarily withhold all allowance from the property or income of the infant for the maintenance of the lat- ter, even though there may be a power (as distinguished from a trust), in the settle- ment or will, at the discretion of the trustees, to appoint j)art of the income for the pur- pose of his maintenance and education. (St. § 1354 a, and note; 2 Sp. 462, 466.) But if there is a contract on marriage amounting to a trust that property shall be applied for the maintenance and education of the chil- dren, the property must be applied, without reference to the ability of the father to main- tain and educate them. And in the case of a legacy given by a stranger, the interest of it may be so given or directed to be ap- plied, as to be in substance a gift to the father, or rather for his benefit. (2 Sp. 466 — 468.) And if the infant is an eldest son, and the younger children have no provision made for them, an ample allowance will be decreed, to him, in order that the younger children may be maintained. And the Court will act in a similar way where the father or mother of the infant is.in distress INFANTS. 437 or narrow circumstances. (St. § 1355 ; 2 Trr. v. Sp. 461, 462.) — ' The Court, however, in allowing mainte- nance, almost always confines it within the income of the property. But where the property is small, and more means ai-e neces- sary for the due maintenance of the infant, part of the capital will sometimes be directed to be applied for the purpose. But without the express sanction of the Court, a trustee or guardian should not so apply any part of the capital. (St. § 1355 ; 2 Sp. 461.) The words " maintenance, education, and bringing up," standing together, have ref- erence to minority only. But where the interest of a fund is directed to be applied for the "maintenance and education" of a person, though at the time an infant, he is, generally speaking, entitled to the in- terest during his life. "Education" includes maintenance. Where maintenance is given during minority, as a general rule it does not cease on the marriage of the child. (2 Sp. 460 ; Carr v. Living (No. 2), 33 Beav. 474.) Where the income of property is given to the mother for the maintenance of herself and her children, she is to receive the whole 37* 438 INFANTS. ^"- Y" income, and maintain the children out of it, so long as they form part of her family ; but when they are forisfamiliated, as by mar- riage, they lose the right to maintenance. (2 Sp. 461.) Property Where infants resident here become en- decreed to foref n ^^ titled to personal property, under the decree court. Qf ^ foreign tribunal, it will be administered for their benefit here, just as any other prop- erty. (2 Sp. 13, 14.) Marriage of If a man marries a ward of Chancery the court without the consent of the Court, even without it3 consent. though with the consent of the guardian, he, and all others concerned in aiding and abetting the act, are treated as guilty of a contempt of Court ; and, even though he was ignorant that she was a ward of the Court, he is deemed guilty of a contempt. (St. § 1358.) Eecogniz- Where the Court appoints a guardian or ance that a ... ward of Committee in the nature of a guardian, to court shall " not marry, have the Care of an infant, it is accustomed to require the guardian or committee to give a recognizance that the infant shall not marry without the leave of the Court ; so that if the infant should marry even without the knowledge or neglect of the guardian or committee, yet the recognizance would in INFANTS. 439 strictness be forfeited, whatever favor the J"-"^- ' Cap. I. Court might think fit to show to the party, when he should appear to have been in no fault. (St. § 1359.) Where there is reason to suspect an im- interdic- tion of in- provident marriage, without its sanction, the tended ° marriage of Court will, by an iniunction, not only inter- a ward of ' •' v ' 'J court, and diet the marriage, but also all communica- "faddresses. tions between the ward and the admirer; and if the guardian is suspected of any con- nivance, the Court will substitute a com- mittee in his stead. (St. § 1360.) In case of an offer to marry a ward of settlement on a ward of Court, the Court will inquire and ascertain court. whether the match is a suitable one, and what settlement ought to be made on the marriage; and it is not competent to the parties, by delaying the marriage until the wife has come of age, to defeat the settle- ment approved by the Court. (2 Sp. 499.) And when a man has been committed for a contempt in marrying a ward of Court with- out its sanction, he will not be discharged until he has actually made such a settlement as shall have been deemed proper by the Court. And this will be the case even where the ward has subsequently come of age, and is ready to waive her right to a 440 INFANTS. Cap ^i' settlement ; for the Court will protect her against her own indiscretion and the undue influence of her husband. (St. § 1361.) Where a settlement is executed a few days after the lady, who has been a ward of Court, has attained her majority, and is pursuant to proposals made a very short time before she attained her majority, and is such, that the Court would not approve thereof, it will be rectified, if at least it was the work of her friends, and she was not made to understand its effect, and called upon to exercise her judgment upon it. {Money v. Money, 3 Drewry, 256.) If a ward of Court marries a few days after majority, the Court will decline to order her fortune to be paid out of Court, on her consent, and will refuse to do more than order payment of the income to the husband during their joint lives, or until further order, without prejudice to any question, with liberty to apply. {Biddle v. Jackson, 26 Beav. 282.) Control over The Court of Chancery will exercise a guardians and others Vigilant Care over infants in the manaffe- for the ° =" V™'**'"'' mcnt of their property; and will also aid and protect infants against other persons than those who are guardians; such, for INFANTS. 441 instance, as intruders upon the estate. (St. Q^p^- §1356.) (a) — ■ The Coui-t has no jurisdiction to order the cancellation of articles of apprenticeship and the return of a portion of- the premium, on the ground of the wrongful refusal of the master to continue to instruct his apprentice in his trade, according to his agreement. (Webb Y. England, 29 Beav. 44.) (a) On the subject of infants, see 1 Will. IV- co. 60, 65 ; 13 & 14 Tiot. u. 60 j 15 & 16 Vict. c. 55 ; 19 A 20 Vict. u. 120. ( 442 ) CHAPTEE II. OF PERSONS OP UNSOUND MIND. Tit. V. The Sovereign, as parens patrice, had, from — the first, the care of idiots and lunatics who Jurisdic- tion, iiad no other guardian. But the statute 17 Ed. II. e. 9, or some early statute, besides giving the King the custody of idiots, also vested in him the profits of the idiot's lands during his life, as a beneficial interest, (a) And with respect to lunatics, the statute 17 Ed. II. c. 10, enacted, that the King should provide that their lands and tenements should be kept without waste; which makes him a trustee for them. Thus, the Crown hath both general Authoritj as parens patrice, and a specific authority, and, in the case of idiots, a beneficial interest also, vested in it by statute. And as the Chancellor is the person by whom the Crown exercises its (a) In Older that questions as to the rights of the Grown may be avoided, no person is now found as idiot ;' the inquiry as to the commencement of the insanity is not carried back to the birth. Phillips on Lunacy, 224. PERSONS OF UNSOUND MIND. 443 powers, he acts in a twofold capacity ; in tit. v. Bome respects, under the special warrant, by the sign manual, in exercise of the right and power conferred by the statute ; in others, as keeper of the Eoyal conscience, and delegate of the Crown, in its character o? parens patriae. The warrant gives to the Chancellor the right of providing for the maintenance of idiots and lunatics, and for the care of their persons and estates, and no more. But the Chancellor is in the habit of making many orders, and enforcing them by attachment ; which orders, and the manner of enforcing them, are not war- ranted by the sign manual, but are war- ranted by the general power- of the Court. Yet the Chancellor does not act as an Equity Judge, as administering the general powers of a Court of Equity, when he makes these orders and enforces them by attachment ; for if he did, an appeal would lie to the House of Lords (see St. § 1336, 1362, 1363, 1364, and note); whereas, although from a decree made on a bill filed relating to a lunatic's estate, in the regular course of Chancery procedure, an appeal lies to the House of Lords, yet an appeal from an order made on motion or petition in lunaej- lies to the 444 PERSONS OF UNSOUND MIND. Tit. V. Cap. II. Transac- tions with persons of unsound mind. Judicial Committee of the Privy Council. (Macqueen's Appellate Jurisdiction, pp. 99, 752, 754, &c.) The Chancellor, in making such orders and enforcing them, acts mere- ly by virtue of his power as keeper of the Queen's conscience, and delegate of the Crown, but as he exercises this authority when sitting in the Court of Chancery, he is clothed with the general power of the Court. Jurisdiction in lunacy has been given by statute to the Lords Justices of the Court of Appeal in Chancery. The jurisdiction extends not only to idiots and lunatics, properly so called, but also to all persons who, from age or other misfor- tune, are incapable of managing their own affairs, and therefore are properly deemed of unsound mind or non compos mentis. (St. § 1365.) And a commission of lunacy may issue where the lunatic has property within this country, although he is domiciled abroad. (St. § 1365 a.) Some observations have already been made on transactions with such persons, in the Chapter on Actual Frauds, (a) (a) On the subject of persons of unsoand mind, see 1 Will. IV. 00. 60, 65 ; 13 & 14 Vict. c. 60 ; 15 & 16 Vict. «. 55 ; 16 & 17 Viot. c. 70 ; 18 Vict. u. 13 ; 19 i 20 Viet. 0. 120 i 25 4 26 Vict. cc. 86, 111. ( 445 ) CHAPTER III. OF MARRIED WOMEN. At the Common Law, the bcinff or legal tit. v. ' ° ° Cap. III. existence of the wife, for almost all pur- Q(,^~„ poses, is considered as merged in that of the 'trJl^e.'"'' husband. (See St. § 1367.) But Courts of S;j'sub?ea Equity, in many respects, treat husband and tones of " equity as to Wife as distinct persons. (St. § 1368.) married ^ ^ ^ women. In illustration of this, let us consider, I. The powers which they have, in Equity, of contracting with, and giving and grant- ing to, each other. II. The wife's pin-money and parapher- nalia. III. The wife's separate estate. IV. The equity of the wife to a settle- ment or maintenance out of her own prop- erty. V. Some points respecting deeds of sep- aration. 38 446 MARRIED WOMEN. Section I. The Powers which Husband and Wife have, in Equity, of Contracting with, and Giving and Granting to, each other. Tit. v. I. At Law, Contracts made between hus- Cap. III. ,,,.„,„ Sec. I. band and wife before marriage, are extin- I. Contracts guishcd bv the marriaa;e, if they are for before mar- ^ *' o ? »/ riage. debts Or things due in prcesenti, or at or on a future time or event which may occur dur- ing, and not after the determination of, the coverture. But Courts of Equity, although they generally follow the same doctrine, will enforce such contracts, where it would be in furtherance of the manifest intention and object of the parties to do so; as in the case of an agreement by husband and wife for the mutual settlement of their estate, or of the estate of either of them on the other, on the marriage, even without the interven- tion of trustees. (St. § 1370, 1371.) II. Con- II- Contracts made between husband and tracts after -no. • ii.i i marriage. Wife, after marriage, ai-e a mere nullity at law; but under peculiar circumstances, they MARRIED WOMEN. 447 ■will be enforced in Equity, where they are ^A'p'ra of a reasonable nature. Thus, if the bus- seo^i. band should contract with his wife, for good reasons, that she should separately possess and enjoy property bequeathed to her, the contract would be upheld in Equity. (See St. § 1372; Hewison v. Negus, 16 Beav. 594; Anderson v. Abbott, 23 Beav. 457.) So the ■wife may even become a creditor of her husband ; and her rights, as such, will be en- forced against him and his representatives. Thus, if a ■wife should raise money out of her estate, to answer his necessities, whatever be the mode adopted to carry that purpose into effect, she -would in Equity be entitled to reimbursement out of his estate. (St. § 1373.) But a contract by the husband to transfer his rights and duties in reference to his children to his wife, is contrary to public policy, and -will not be enforced; (Vansittart V. Vansittart, 4 K. & J. 62 ; Walrond v. Wal- rond, 1 Johns. 18;) unless his conduct has been such, that the Court of Chancery ■would remove the children from his custody. (Swift V. Swift, 34 Beav. 266.) JII. Gifts and grants too, ■whether express iii. Gifts and grants or implied, b^v a husband to his ■wife, after after mar- r ' J 1 riage. marriage, although ordinarily void at Law, 448 MARBIED WOMEN. Cat m ^''^ ^^ enforced in Equity, if they are of a seo^i. reasonable nature, and there is no ground to suspect fraud. Thus, gifts made by the husband to the wife to purchase clothes or personal ornaments, or for her separate ex- penditure, and personal savings and profits made by her in her domestic management, which the husband allows her to apply to her own separate use, will be held to vest in her, as against her husband, but not as against his creditors, an unimpeachable right of property therein, so that they may be treated as her separate estate, if such gifts are established by clear and incontroverti- ble evidence. (St. § 1374, 1375.) If a husband makes presents of chattels to his wife, even verbally, and without words of separate use, her right to them will be enforce'd against his residuary legatee, if the gift is proved by the testimony of any one who beard him use words of gift, or to whom he afterwards stated that he had given the chattels, or that they were hers. But the Court will not act upon the unsupported oath of the wife. {Grant v. Grant, 34 Beav. 623.) MARRIED WOMEN. 449 Section II. Pin-money and Paraphernalia. I. Pin-money is not deemed to be an ab- tit. v. solute gift ; it is not considered like money Sec. ii.' set apart for the sole and separate use of i- K"- ■^ ^ money. the wife during coverture ; but it is a sum payable by the husband to the wife, in virtue of a particular arrangement, and to be ap- plied by the wife in attiring her person in a manner suitable to the rank of her husband, and in defraying other personal expenses — a sum allowed to save the trouble of a constant recourse by the wife to the husband, in order to meet her ordinarily personal expenses. (See St. § 1375 a, and note ; 2 Sp. "500, 501.) Such beins: the peculiar nature of this Arrears ° ^ . thereof. provision, the wife cannot make a sweeping disposition of it, as she can of her separate estate. And Courts of Equity refuse to call upon the husband to pay beyond the ar- rears of a year, although stipulated for by a marriage settlement. For, setting aside the presumed satisfaction by acquiescence, the money is meant to dress the wife during the 38* 450 MARKIED WOMEN. dAp'ni y^^^' ^° ^® *° ^®®P ^P ^^^ dignity of the SisoiL husband, and not for the purpose of accu- mulation. And, on the same principle, the personal representatives of the wife are not allowed to make any claim even for arrears of a year. (St. § 1375 a, and note ; 2 Sp. 501 ; 1 Lead. Cas. Eq. 3d ed. 479.) II. Para- II. The wife's paraphernalia are personal apparel and ornaments of the wife, suitable to her rank and condition in life. (St. § 1376.) Old family jewels, though worn by the wife, do not constitute part of her para- phernalia, unless she has acquired them by gift or bequest. (Jervois v. Jervois, 17 Beav. 566.) Euie of law At Law, the husband may, in his lifetime, them. but not by his will, dispose of the wife's paraphernalia, with the exception of neces- sary apparel. And they are liable to the claims of creditors, with the like exception. Rule of And if the articles were given by the hus- wliere'thcy band, either before or after marriage. Courts were given bythehus- of Equity fully recognize this right of the husband and his creditors, instead of treat- ing the articles as absolute gifts to the wife, as her own separate property ; although, in the case of creditors claiming against the assets of the husband, the personal assets of MARRIED WOMEN. 451 the husband will be marshalled against his ^'^'J-j^j representatives in favor of the widow. But ^ec^i. if the articles were bestowed on the wife by any one else, they will be deemed absolute or where given by gifts to her separate use ; and then, if re- any one ceived with the consent of the husband, neither he nor his creditors can dispose of them. (St. § 1376, 1377; 1 Lead. Cas. Bq. 3d ed. p. 480.) Section III. The Wife's Separate Estate, (a) I. With regard to the means of acquiring se,,. m. a separate estate — i. Means of acqui ring it. 1. Whenever real or personal estate is i. By gift, '■ grant, de- given, granted, devised to or settled on g^jj/g^^^j a woman, either with or without the inter- vention of trustees, whether after marriage, or as a provision on marriage, or not in contemplation of immediate marriage, and whether by her husband, or by a mere stranger, it will: be deemed separate estate, if it clearly appears that the property was {a) On this subject see Hulme v. Tenant, 1 Lead. Cae. Eq. 2d ed. .394 et seq. 452 MARRIED WOMEN. Tit. V. Cap. III. intended for her separate use. (St. § 1380, SEc^ii. j38i^ 1334. 2 Sp. 502, 507—511; Goulder V. Camm, 1 D. F. & J. 146.) Thus a bequest to a married woman, "for her own use, and at her own disposal," has been held to be a bequest to her separate use. So money paid to the husband "for the livelihood of the wife " has been construed a gift to her sep- arate use. (St. § 1382; 2 Sp. 507.) But where the expressions do not clearly show that the husband is to be excluded from his marital rights, the wife will not take for her separate use. Thus, in the case of a direction to pay money into her own proper hands "for her own use and benefit," it has been held that although the money is to be for her own use, yet there is nothing in that inconsistent with its being subject to the husband's marital rights. (St. § 1383; 2 Sp. 508— 511.) And a direct gift to a woman who is either single or will be- come discovert on the testator's death, for her sole use and benefit, does not create a separate estate, (^Gilbert v. Lewis, 1 D. J. & S. 38; and see Lewis v. Mathews, L. R. 1 Eq.. Gas. 177,) unless aided by other expressions in the will or other circumstances; such as the fact that the instrument shows that the MARRIED WOMEN. 453 marriage of the person spoken of was eon- (^^"-jY; templated by the author of it. (Zft re Tas- sb&ui. sey's Trust, L. E. 1 Eq. Oils. 561.) But a gift, by way of trust, for her sole benefit, to a married woman, does create a separate es- tate. (Green v. Britten, 1 D. J. & S. 649.) 2. By the custom of London, a married 2. Bycarry- ingonascp- woman may carry on trade within the City, arate trade •' •' •' ' in London; as a sole trader, and be liable as such. But, or eveneisa- ' ' where, by independently of any such custom, if it is Slforemar- agrced between the husband and wife, before "^^''' marriage, that the wife shall be allowed to carry on a separate trade, such an agreement will be maintained at Law against the hus- band; and being an agreement for valuable consideration, namely, that of the intended marriage, it will also be maintained at Law against his creditors. And if such an agree- byagree- ° ^ ment after ment is made after marriage, and trustees marriage; are interposed, it will be maintained at Law against the husband; and if it is on valuable consideration, against his creditors also; for, in such case, the wife's trustees will, at Law, be entitled to the property assigned, and to the increase and profits thereof, and she will be considered at Law as their agent, and her possession as their possession. The trustees, however, will be regarded in Equity as hold- 454 MARRIED WOMEN. clr ni ^"S ^^^^ property, and receiving the increase sec^ii. jjjj^ profits thereof, for the sole and separate use of the wife. And thus in such cases, •where trustees are interposed, the beneficial interest in the property, and the increase and profits thereof, are secured to the wife by the joint operation of Law and Equity. By the operation of Law, the legal estate is vested in the trustees, and taken out of the power of the husband. By the operatiou of Equity, the beneficial interest is vested in, and secured to, the wife, against her husband, and if the agreement is for valuable con- sideration, against his ci-editors also. But even where there are no trustees interposed, such an agreement has the force, in Equity, of creating a separate estate for the wife, and securing it against the husband; and, if even though the agreement is for valuable consideration, the agree- . , , . , . , , .,,.., ment be against his Creditors also. And this is the merely im- plied, ease even though it be a mere implied agree- ment. So that if the husband should permit Ills wife, after the marriage, to carry on busi- ness on her sole and separate account, all her earnings in the trade will be her separate property. And if a husband should desert his wife, and she should be enabled, by the aid of her friends, to carry on a separate MARRIED WOMEN. 455 trade, her earnings in such trade will be ien- ^tit. v^ forced in Equity against her husband, indo- seoiii.- pendently of the stat. 20 & 21 Vict. c. 85, ss. 21, 25. (See St. § 1385—1387 ; 2 Sp. 503.) 3. By the stat. 20 & 21 Vict. c. 85, s. 21, 3. By an order of pro- and 21 & 22 Vict. c. 108, s. 8, if a wife is tection or ' ' by a judicial deserted by her husband, she may obtain an separation. order of protection of her property against her husband and his creditors; and by s. 25 of the former Act, if judicially separated, she is to be deemed a feme sole as regards her property ; (a) and in case of subsequent cohabitation, it shall be held to her separate use, subject to any agreement. Where the property is vested in trustees, care must be taken that the negotiations are not carried on in the name of the wife, as by taking notes or other securities in her name ; for then they will, at Law, be held to belong to the husband, although it will be otherwise in Equity. (St. § 1386.) II. As to the wife's power of disposing ii. wife's Sower of „x ^^^ .,^p«....v, „.. , r L- 0-— i=P°H°^ 0' ■*■ sepurjitc ments for securing to the wife separate per- ^'Jfreithas sonal property, will confer on her, in Equity, * pr™i,u^ unless the contrary is expressly stipulated mentr^"" {a) See In re Imote, L. R. 1 Bq. Cas. 470. 456 MARRIED WOMEN. CAp'm ^'^ implied, the same power of disposing of sec^ii. gmjjj separate property, by will or other- wise, as an unmarried woman would have, est. § 1390 ; 2 Sp. 506, 507.) Where it With respect to her power of disposing finniapoBt^ of her separate property, where no trustee Duptia.1 , , . agreement is interposed, and it rests merely on a post- husband. nuptial agreement of the husband, if the property consists of personalty, or an estate for life in real property, her disposal thereof can affect her husband's rights alone; and therefore his assent is conclusive upon him. And if real property is settled upon her in fee in trust for her separate use, without any special power of appointment, she may dis- pose of or charge the rents and profits accru- ing during her life. But it was formerly held that she could only dispose of the in- heritance by the ordinary means by which married women dispose of their real prop- erty; because, in regard to real estate, her own heirs are or might be affected in their interest by descent. (St. § 1391 ; 2 Sp. 504, 513 ; and see remarks of V. C. Kindersley, in Moore v. Morris, 4 Brew. 37 — 8.) wiioreitis And whero an estate of inheritance is given by a thirdperson given hor by a third person, during the during the covcrturc, Or, as it seems, before coverture, coverture. ' ' ' > MAERIED WOMEN. 457 for her separate use, it was formerly held ^tit. v.^ that she could not dispose of it, except by Sec^™- these means (that is, by a deed duly acknowl- edged under the Fines and Recoveries Act), or under a jjower; but that if such a power is expressly given her, she might dispose of the estate, even though there are no trustees interposed. (St. § 1388, 1392; 2 Sp. 504, 507 ; Harris v. Mott, 14 Beav. 169 ; Lechraere V. Brotheridge, 32 Beav. 353.) It has been held, however, by Lord West- bury, that she may, like a feme sole, by virtue of her ownership, dispose, by deed or will, of an estate of inheritance settled to her separate use, even though a special power of appointment be given her. {Tay- lor V. Meads, 13 W. R. 394 (L. C.) ) Where personal property, whether in possession or reversion, or a life interest in real property, is given by a third person, for the separate use of a married woman, she has, in effect, a full po.wer to dispose of it, unless, from the words of the gift, it ap- pears, beyond a reasonable doubt, to have been the intention of the giver that this ab- solute power should not exist. (See St. § 1393, 1394 ; 2 Sp. 513 ; Zechmere v. Brother- idge, 32 Beav. 353.) 89 458 MARRIED WOMEN. „T". y. j^ mere isrohibition of alienation or anti-, sec^ii. cipation is void as against a man, or a Ssf °°' woman while she is unmarried. (See 2 Sp. or'anticipa- 520.) And it is void when annexed to a gift of real estate in fee or for life to a woman, even though at the time married, if such gift is not for her separate use. (See 2 Sp. 521.) But a gift cither of real estate, whether in fee or for life, or of personal estate,, to a woman for her separate use, even though she be unmarried at the time, may be accompanied by restrictions against alienation or anticipation. (St. § 1382 a, 1384;,2 Sp. 511, 521, 522.) These, however, will not be inferred from any ambiguous expressions ; they must either bo contained in express words or be deducible by plain implication. (See 2 Sp. 512, 522; and re- marks of V. C. Kindersley, in Moore v. Mor- ris, 4 Drewry, 37.) Operation The Bcparate-uso clause, either with or of separate- , , . ... use clause Without a restriction against anticipation, and restric- tioii against vf'iU be Confined to the then existing or then aDtioipa- ° tion. intended coverture, or will be also apj)lied to other covertures, according to the apparent intention. (2 Sp. 524; In re Gaffee, 1 Mac. 1 & Gord. 541 ; Moore v. Morris, 4 Drewry, 33.) If it appears to have been intended MARRIED WOMEN. 459 that every husband shall bo excluded, and ^'^'-j^j that the clause against anticipation shall ^'^°- "^- operate during every successive coverture, in such case, although the woman, while single, or when and as often as she becomes a widow, has the absolute dominion over the property, yet if she do not dispose of the property so as to put an end to the trust, and she marry again, the separate-use clause and the restriction against alienation will be revived during such and every other subse- quent coverture, so long as the property is held upon the original trust. (2 Sp. 524.)> The Court of Chancery has no power to release a separate estate from a restraint on anticipation or alienation, even where it would manifestly be for the benefit of the married woman : as where a legacy of con- siderable amount is given to her on condi- tion that she convey away a separate estate of inconsiderable value^ (^Robinson v. Wheel- wright, 21 Beav. 214; 6 D. M. & G-. 535.) Where the wife bestows her separate prop- Gifts to the erty upon her husband. Courts of Equity tbo wife. examine the transaction with an anxious dread of undue marital influence ; and if they are required to give sanction or effect to it, they will examine the wife in Court, 460 MARKIED WOMEN. Tit. V an(j adopt other precautions to ascertain her stajii." unbiased wishes. (St. § 1395; 2 Sp. 514.) Husband's Where the husband, with the consent of receipt of i i i . /» ■ • i ■ the iucome. the wife, IS in the habit of receiving the in- come of her separate estate, it is regarded as showing her voluntary choice thus to dis- pose of it for the benefit of the family; and separate money of the wife paid to the husband or placed to his account, by her authority or with her concurrence, cannot be recalled. (St. § 1396; 2 Sp. 514; 1 Lead. Cas. Eq. 2d ed. 411 ; Catoh v. Bidout, 1 Mac. & Gord. 603; Gardner v. Gardner, 1 Giff. 126.) And the income of separate estate, where the wife is of unsound mind, will.be paid to the husband for her support, if he is unable to maintain her. (2 Sp. 525.) III. Lia- III. As to the liability of the wife's sep- bilityof separate arate estate to her contracts, debts, and charges, except under the stat. 20 & 21 Vict, c. 85, s. 26, a woman cannot render herself or her property liable, at Law, for any con- tract, debt, or other charge created by her during the coverture, not even for neces. saries. But a married woman having sepa- rate estate (unless restrained from anticipa- tion), being considered in equity as a feme estate. MARRIED WOMEN. 461 Bole, as regards the separate estate, with j^it. v^ respect to the capacity of enjoying it, she seohi. is likewise considered as a feme sole with respect to the capacity of charging the estate with debts or engagements. N"o per- sonal decree, however, can be made against her : the Court can only affect her separate estate in the hands of her trustees: she cannot bind her person at all, or her prop- erty generally, but only her separate prop- erty. (St. § 1379, and note, and 1400, note; 2 Sp. 324, 325, 504, 515—518; see remarks of Kindersley, V. C, in Vdughanv. Vander- stegen, 2 Drewry, 179 — 184; Blatchford v. Woolley, 2 Dr. & Sm. 204.) This will be held liable for all the debts, charges, and incum- brances which she expressly charges, or which, judging from the nature thereof, it may be fairly inferred that she intended to charge on her separate estate, and for her breaches of trust, unless restrained from an- ticipation. (^Glive V. Carew, 1 Johns. & Hem. 199 ; and see Johnson v. Gallagher, 3 D. F. & J. 494 ; In re Leeds Banking Co., L. E, 3 Bq. Gas. 781.) And hence, if she gives a prom- issory note, or an acceptance, or a bond to pay her own debt, or if she joins in a bond with her husband, to pay his debts, without 39* 462 MARRIED WOMEN. ci'p'iii reference to her separate estate, it shall be sec^ii. intended as an application pro tanto of her separate estate ; because the security must have been executed with the intention that it should operate in some way, and it can have no operation except as against her separate estate. And if she employs a law- yer, upon her own responsibility, her sepa- rate estate will be liable, from the nature of the engagement. But it would seem that her separate estate would not be liable for debts of an ordinary character, for which she gives no security, unless, at least, she is divorced and living apart from her husband. For she may, and in general must, be pre- sumed to have intended that these should be paid by her husband. If, indeed, the contrary doctrine were held, a wife who has a separate estate would in many cases be disinclined to take upon herself her ordi- nary domestic duties, fearing lest her sepa- rate estate should be exhausted by defray- ing the ordinary expenses of the house: or the creation of a separate estate would often be rendered unavailing, by her encountering that risk. And in no case will the Court charge the corpus of the separate estate in respect of her general obligations. (See St. MARRIED WOMEN. 463 § 1398—1401, and notes ; 2 Sp. 515, 516, and t- tlement, on her hus- band's death, bank- ruptcy, or insolveucy. capable for a time, and perhaps forever, of affording her a suitable support. (St. § 1421.) If the assignees in bankruptcy, or other general assignees claiming title under the husband, refuse to make a settlement on the wife, the like doctrine applies to them as to the husband himself where he refuses to make a settlement. (St. §1415; swpra, p. 466.) The husband can sell the life interest of his wife in personalty, and she has no equity to a settlement as against the purchaser. {Re Duffy's Trust, 21 Beav. 386.) If the husband assigns his wife's rever- sionary choses in action and other rever- sionary equitable interests in personal chat- tels, such assignment will not exclude her right of survivorship, although she join in the assignment; because the assignment, from the nature of the thing, cannot amount to a reduction into possession of such rever- sionary interest, (a) (St. § 1413 ; 2 Sp. 476.) III. Whenever the wife, as defendant, would be entitled to an equity for a settle- (a) For an article on the disposition of reversionary interests of mnrried women in chattels personal, by the writer of this Manual, see 10 Jurist, 231, 243. But see 2 Sp. 487, and cases there cited. And see stat. 20 & 21 Vict. u. 57. MARRIED WOMEN. 469 ment, out of her equitable interest, against q^^-^i her husband or against his assignees, she ^™' ^^' may assert it, as plaintiff or petitioner. (St. § 1414; 2 Sp. 482, 484, 585; Walker v. Drury, 17 Beav. 482 ; Gleaves v. Pain, 1 D. J. & S. 87; Be Ford, 32 Beav. 621.) IV. The Court has a full discretion as to iv. Amount to be settled. the amount to be settled, according to the circumstances of each case. In the ab- sence, however, of special circumstances, the general rule or the common course has been to settle about one-half on the wife and her children. {Walker v. Brury 17 Beav. 482 ; Napier v. Napier, 1 Dru. & W. 410; Bagshaw v. Winter, 5 De G. & Sm. 466; McCormick v. Garnett, 2 Sm. & G. 37; 5 D. M. & G. 278; Smith v. Smith, 3 Gif. 121; Be Grove's Trust, 3 Giff. 583; 2 Spenee, 485; 1 Bright, Husband and Wife, 241,) with remainder in default of issue, to the husband. (Spirett v. Willows, L. E. 1 Ch. Ap. 520 ; In re Suggiit's Trusts^ L. E. 3 Ch. Ap. 215.) But where particular reasons have occurred, the Court has fre- quently settled the whole : as in Marshall v. Fowler, 16 Beav. 249, where the husband had taken the benefit of the Insolvent Debtors' Act, and was moreover almost entirely de- 40 470 MARRIED WOMEN. clviii Pendent on charity; In re Kincaid's Trust, se£iv; 1 Drew. 326; and Ward v. Yates, 1 Drew & Sm. 80, where the husband was a bankrupt, and the fund was under £200 — so small a sum that it would not have been worth while to have made any settlement at all, unless the whole had been settled ; In re Cutler, 14 Beav. 220 ; Watson v. Marshall, 1 "Weekly Eeporter, 523 ; Francis v. Brooking, 19 Beav. 347; Koeber v. Sturgis, 22 Beav. 588; Squires v. Ashford, 23 Beav. 132 ; Buncombe v. Green- acre, 29 Beav. 578 ; and Newman v. Wilson, (So. 2), 31 Beav. 34, where the husband was an insolvent debtor; in Scott v. Spashett, 3 Mae. & Gord. 599, where, besides other special circumstances, the husband had re- ceived about double the amount of the wife's property under a previous order, and no settlement had ever been made; and in DunWey v. Dunkley, 4 De G. & S. 570; 2 D. M. & G. 390; Vaughan v. Buck, 1 Sim. K S. 284; and Gent v. Harris, 10 Hare, 383, where the husband had become bankrupt, and had deserted his wife. V. Substi- V. To avoid the expense of a settlement, tute for a' , n \ settlement, where the fund beloneine to the wife is where fund ° ° Is small. small, it will sometimes be ordered to be brought into Court, or if already in Court, MARRIED WOMEN. 471 it will bo retained there, and the dividends Jit v. ' Cap. III. directed to be paid to the wife for her life, seotv. {Bagshaw r. Winter, 5 De G. & Sm. 466; Watson V. Marshall, 17 Beav. 363 ; Walker V. Drury, lb. 482.) VI. The Court will not insist on a settle- vi- wite'a equity mcnt on the wife, if at any time before a waived, settlement under the decree is completed, or at least before proposals are made under the decree, the wife, by her consent given in open Court or under a commission, agrees that the absolute fund shall be wholly and. abso- lutely paid over to the husband, except in the case of a female ward of the Court of Chancery who has married without its au- thority. (St. § 1418 ; 2 Sp. 486, 488.) But until a transfer to the husband has actually been made, the wife can revoke her consent. {Penfold V. Mould, L. E. 4 Bq. Cas. 562.) The equity of the wife to a settlement may or lost, or suspended. be lost or suspended by her own misconduct. Thus, if the wife (not being a ward of Court, married without its consent) has been living in adultery, apart from the husband, a Court of Equity will not direct a settlement, on her own application, as it otherwise would; be- cause, by such misconduct, she has rendered herself unworthy of the protection and favor 472 MARRIED WOMEN. Tit. V. Cap. hi. Sec. IV. Waiver of provision for the children. of the Court. But, on the other hand, in Bueh a case, a Court of Equity will not de- cree such equitable property to be paid over to the husband on his application; for when the wife is living apart from him, he is at no charge for her maintenance ; and it is only in respect to his duty to maintain her that the Law gives him her fortune. In the case, however, of a female ward of Court, married without its consent, the Court will insist on a settlement, as a pun- ishment to the husband for contempt of its authority. (St. § 1419, and note, and 1419 a ; 2 Sp. 486.) And we must be careful to distinguish an application which is grounded merely on general principles of equity, and an application grounded on positive vested rights under a settlement, or under a valid contract for a settlement made before mar- riage. In the latter case, Courts of Equity cannot refuse to protect or support those vested rights on account of any misconduct in the wife. (St. § 1420.) We have seen that the Court, in making a settlement on the wife, properly attends to the interests of the children. But it must be observed, that the Court attends to their interest only upon the supj)osition, that, in MARRIED ■WOMEN. 473 80 doing, it is carrying into effect her own ^tit. v^ desire to provide for her offspring. They Seo^v. have no independent equity of their own; for although the husband is under a moral obligation to provide for them, yet he is not bound to provide for them, in any particular way or out of any particular fund. They have only a claim to the consideration of the Court, con sti tuting part of th e equity of th eir mother, and capable of being either expressly given up by her before the amount is ascer- tained, or tacitly waived by her dying with- out having asserted it. (See St. § 1417 ; 2 Sp. 488 — 492.) And it has been held that if she dies before a decree, even without waiving the right to a settlement, the chil- dren cannot assert any claim. ( Wallace v. Auldjo, 2 Dr. & Sm. 216;. 1 D. J. & S. 643.) VII. By the Law of Scotland, a married vii. No equity to a woman has no equity to a settlement; and settlement, ^ "^ ^ where par- if husband and wife are domiciled in Scot- ^jf^f^.^J'^^ land, she has no equity to a settlement '■» Scotland, t^McGormick v. Garnett, 5 D. M. & G. 278), even out of the produce of real estate in England directed to be sold. {Hitchcock v. Glendinen, 12 Beav. 534.) YIII. Although Courts of Equity do not viii. .... J Equity of claim any general jurisdiction to decree a the wife to 40* 474 MARRIED WOMEN. Tit. y suitable maintenance for the wife, out of her Cap. III. ' sec^v. husband's property, where he has deserted caso°of \he Or iH-treated her, yet, whenever the wife has miscouduct any equitable property, even though it be niptcy, or only for her life, within the reach of the insolvency. jurisdiction of Courts of. Equity, and the husband has deserted or ill-treated or refused to mantain her, they will decree a suitable and immediate maintenance out of such equitable property, or, if it has passed into the possession of a bond fide purchaser with- out notice, out of other property of the hus- band ; because the obligation of maintaining the wife is the ground on which the Law gives ■ the projjerty to the husband. (St. § 1408, j)., 1408, note, 1422—1424, 1426.) And where the wife has an equitable interest for life only, and the husband is a bankrupt or in- solvent, and therefore is, as a general rule, deprived, for a time at least, of the means of duly maintaining her, she is entitled to an allowance for maintenance out of such life interest, as against the assignees. (Story, § 1408 n., 1412.) But a married woman, even though her husband does not maintain her, is not entitled, as against aparticular assignee for valuable consideration of the husband, to an allowance for maintenance out of the in- MARRIED WOMEN. 475 come of real or personal estate to which she tit. y ^ Cap. Ill is entitled in equity, for- her life only; be- ^^±J^- cause, if she were, purchasers would be in- volved in inquiries respecting the relations between husband and wife, and their other property and sources of maintenance ; and the life interests of married women would become incapable of being dealt with, what- ever might be the exigencies of the case. (^Tidd V. Lister, 10 Hare, 151, 153; 3 D. M. & G. 857.) Section Y. Some Miscellaneous Points, (a) As a deed of separation cannot dissolve sec. v. the marriage, it does not relieve the wife Deeds of " ' separation. from any of the ordinary disabilities of cov- erture. (St. § 1428.) A deed of separation entered into beitween the husband and wife alone, without the in- tervention of trustees, is utterly void. (St. § 1428.) A covenant for separation, whether imme- diate' or future, is void. But the Court of ia) See 2 Lead. Oas. Eq. 2cl ed. 713—717 et tef. 476 MARKIED WOMEN. Cap. Ill, Sec. V. Tit- Vj Chancery may compel parties, in pursuance of articlesof separation entered into between them, to execute a formal deed of separation, quantum valeat, unless in the meantime they agree to live together. And it would seem that if a deed for immediate, and not for future, separation, contains a covenant by the husband to maintain his wife, and a covenant by the trustees to exonerate him from any debts contracted for her mainte- nance, such covenant will be enforced, so long as the separation last; but it will not be enforced for a longer period, even as to past separation. (St. § 1428; 2 Sp. 528; Wilson V. Wilson, 1 H. L. Cas. 538; 5 Id. 51, 61, 62.) A contract in a separation deed cannot affect the property of the wife, if not settled to her separate use, or reduced into posses- sion during the coverture. (2 Sp. 532.) 'rhe Court will not directly or indirectly enforce a separation against the parties per- sonally. But the Court will interfere to pre- vent the doing of any personal acts, which, if done, would be in violation of an agree- ment respecting property entered into on the separation. And where, by articles of sepa- ration, it is agreed that the hiisband shall MARRIED WOMEN. 477 permit his wife to live separate, and as if ^^-^j unmarried, without any molestation, inter- SboV. ference, or annoyance whatever, and that a proper deed shall be executed for eifectuat- ing the object of the articles, and containing all such covenants, &c., as shall be deemed expedient for that purpose, this justifies the insertion in the deed, of a covenant that the husband will not compel, or endeavor to com- pel, the wife, by legal proceedings or other- wise, to cohabit or live with him ; but in what way or to what extent such a cove- nant can be enforced, appears not to be set- tled. (2 Sp. 532 ; Wilson v. Wilson, 1 Ho. of Lords, 538 ; 5 Id. 40, 51, 52, 60—63, 71, 72; Sanders v. Rodway, 16 Beav. 207; and see remarks of V. C. Wood, in Stocker v. Wedderburn,3 K. & J. 403; Hunt v. Sunt, 31 Beav. 89 ; 10 W. E. 215.) Eeconciliation puts an end to a deed of separation, as it must not be permitted to parties to make agreements for thenlselves to hold good whenever they choose to live separate. (2 Sp. 532.) If a wife induces her husband to execute a deed of separation, in contemplation by her of her renewal of an illicit intercourse, the 478 MARRIED WOMEN. pTiT. v^ deed is void. {Evans v. Carrington, 2 D. P. SK_v.- &j. 481.) Non-dis- JSTon-discloBure of ante-nuptial ineonti- closure of ante-nup- nencG on the part of a wife is not such a tial lEcon- ^ tiueuce. fraud upon the husband as to entitle him to set aside a settlement made upon the mar- riage. (Evans v. Carrington, 2 D. . P. & J. 481.) Benefits The Court of Chancery has no jurisdiction settlement to deprive an adulteress, whose marriage has not forfeited by adultery, been dissolved, of any benefit under the set- tlement made upon the marriage. (Evans V. Carrington, 2 D. P. & J. 481.) Purchase. Where a married woman contracts and pays for real estate without the knowledge of her husband, but for his benefit, such a purchase is binding when ratified by the hus- band. (Millard v. Harvey, 34 Beav. 237.) Fraud. A woman, although married, cannot, by fraud, obtain for herself or those claiming under her any benefit or interest to the det- riment of any other person. (V. C. Wood, in Nicholls v. Jones, L. E. 3 Eq. Gas. 709.) TITLE VI. ®f an^eiliars €qmtn. (479) ( 480 ) CHAPTBE I. Tit. VI. Cap. I. Definition ofabillof discovery. OP A DISCOVERY IN AID OF A SUIT OR DEFENCE IN ANOTHER COURT. Every bill which requires an answer is in a certain sense a bill of discovery. But a bill of discovery, technically so called, is a bill which asks for no relief, but simply seeks a discovery of facta resting in the knowledge of the defendant, or of deeds or writings or other things in the possession or power of the defendant, in order to maintain the right or title of the party asking it, in some suit or proceeding in another Court. (St. § 1483.) Discovery It is immaterial whether the Court be iu aid of a foreign suit, situate m the same country, or in a foreign country in amity with the country where or a suit not the bill is filed. (St. § 1495.) And it is not yet com- necessary that the suit should be already commenced, to which the bill of discovery is to be auxiliary, if the discovery is indispen- sable, in order to enable the party rightly to proceed. (See St. § 1483, 1495.) menccd. DISCOVERY. 481 These bills, however, may be resisted on tit. vi. the following grounds: 1. That the subject jji^—^y is not cognizable in any municipal Court. sTtedon"" 2. That the Court will not lend its aid to g?Ss. obtain a discovery for the particular Court for which it is wanted. 3. That the plaintiff is not entitled to the discovery, by reason of some personal disability. 4. That the plain- tiff has no title to the character in which he sues. 5. That the value of the thing sued for is beneath the dignity of the Court. 6. That the plaintiff has no interest in the subject-matter or title to the discovery re- quired (St. § 1489, 1490); as where the plaintiff is only heir apparent. (St. § 1490.) 7. That the defendant is not answerable to the plaintiff, but that some other person has a right to call for the discovery. 8. That the policy of the Law exempts the defend- ant from the discovery (St. § 1489); as if a bill of discovery is filed against a married woman, to compel her to disclose facts which may charge her husband ; or where the bill seeks to compel a counsel or solicitor to dis- close the secrets of his client. (St. § 1496.) 9. That the discovery relates to the defend- ant's case, and not to the plaintiff's case. (St. § 1489, 1490, note.) So that even an heir- 41 482 DISCOVERY. Cap ^7' ^t-l^w ^^^ i^ot ^ right to the inspection of deeds in the possession of a devisee, unless he is an heir in tail ; in which case he is en- titled to see the deeds creating the estate tail. (St. § 1491, 1492.) But if a bill filed by a defendant at law suggests specific defects in the title of his adversary, the discovery will be granted, although the case made by the bill is not the assertion of an aflS^rmative title in the party bringing the bill. (St. § 1493 a, note.) 10. That the dis- covery is not material in the suit. (St. § 1489, 1497.) 11. That the defendant has no interest in the suit, but is a mere witness (St. § 1489, 1499); unless the bill charges him with fraud ; as in the case of an attor- ney who has assisted a client in obtaining a fraudulent deed (St. § 1500); or unless he is the officer of a corporation ; in which case he may be made a party to a bill for discov- ery against such corporation, on the ground, it has been said, that a corporation, being an artificial person, cannot be compelled to make any discovery on oath. (St. § 1501.) 12. A discovery may in general be resisted where it would disclose circumstances that would subject the defendant to a penalty or forfeiture, or to a criminal prosecution, or DISCOVERY. 483 to ecclesiastical censures. To this rule, tit. vi. ' Cap. I. however, there are various exceptions ; as — in the ease of fraud or conspiracy, or a statutory prohibition of resisting a discov- ery, or an expressed or implied contract not to resist discovery. (See St. § 1494, and note, and vStory's Eq. Plead, c. xi. and 1 Dan. C. P., 2d ed. by Headlam, 517—525.) 13. A discovery may also be resisted on the ground that it is perfectly clear that the action or defence is not maintainable at Law. (St. § 1493 a.) 14. That the Court where the suit is brought has always had the power of eliciting the facts without the aid of a bill of discovery. (St. § 149&,) But although a party may now examine his op- ponent at law under the Stat. 14 & 15 Vict, c. 99, s. 2, and under the Stat. 17 & 18 Vict. c. 125, s. 51 — 54, and the Courts of Common Law can now compel the production of documents under the 6th section of the former Act and the 50th section of the latter Act, yet a plaintiff or defendant at law is entitled to- a discovery in Equity in aid of his action or defence. (^Lovell v. Gal- loway, 17 Beav. 1; Senior v. Pritchard, 16 Beav. 473 ; British Umpire Shipping Com- pany V. Somes, 3 K. & J. 433, 436.) 15. A 484 DISCOVERT. Tit. VI. discovery may also be resisted on the ground Cap. I. J J ° — that it is in aid of a controversy pending before arbitrators, who, not being the reg- ular tribunals for administering justice, but judges of the party's own choice, must sub- mit to the inconvenience incident to their position. (St. § 1495.) But this has no application to a compulsory arbitration or- dered in an action. (^British Empire Ship- ping Company v. Somes, 3 K. & J. 433, 436.) 16. In general, arbitrators are not compel- lable to disclose the grounds on which they made their award. (St. § 1498.) 17. That the defendant is a bond fide purchaser lor valuable consideration, and without notice, who has paid his purchase-money, and has an equal equity with the plaintiif (St. § 1502, 1503); or that the defendant is a sub-pur- chaser, whether with or without notice, from such bona fide purchaser without notice. (St. § 1503 a.) But a judgment creditor by elegit is not deemed a purchaser within the above rule. (St. § 1503 b.) 18. A jointress is entitled to protect herself against a dis- closure of her jointure deed, if the party seeking the discovery is not capable of con- firming the jointure, or if, being .capable, - he does not offer to confirm it. If he is DISCOVERY. 485 capable and offers to confirm it, the dis- '^,5JpY' covcry will be granted as soon as the con- firmation is made, but not before; for other- wise it might happen, that after the dis- covery, his offer might become ineffectual by the intervention of other interests. (St. § 1054.) 41» ( 486 ) CHAPTEE II. OF THE TAKING AND PRESERVING OJP TESTI- MONY IN AID OF A SUIT OR DEFENCE IN ANOTHER COURT. Tit. VI. One species of bill filed for this purpose is —1- ' a bill to perpetuate testimony. This is a Bill to per- i . i . ^ i i potuatetos- bill 'which 18 filed to preserve testimony, tiinony. when it is in danger of being lost, before the matter to which it relates can be made the subject of judicial investigation. (St. § 1506.) Thus, when the plaintiff's title is in remainder, or when he himself is in actual possession of the property, or when he is in present possession of the rights which he seeks to perpetuate by proofs, he is neces- sarily unable to bring his disputed interest into immediate judicial investigation; and therefore Courts of Equity will entertain a suit to secure the proofs on which his title depends; for otherwise such proofs might bo lost by the death of his witnesses, and the adverse party might purposely delay his TAKING AND PRESERVING TESTIMONY. 487 suit with a view to that very event. (St. Tn\ vi. § 1508; Ellice v. Boupell (No. 1), 32 Beav. — ' 299; S. C. (No. 2) 32 Beav. 308; S. C. (No. 3) 32 Beav. 818.) An instance of this occurs where a devisee, in order to perpetuate the testimony of witnesses to the will, exhibits a bill against the heir, setting forth the will verbatim, and suggesting that the heir is inclined to dispute its validity ; and then, when the cause is at issue, witnesses to the will are examined, after which the cause is at an end; but the heir is entitled to his costs, even though he contests the will. This is what is usually meant by proving a will in Chancery. (St. § 1506 ) Such a bill cannot be brought by a defend- ant to a suit already commenced, though he cannot himself put the matter into a course of judicial investigation, and yet the plaintiff may dismiss his bill, and then file a new bill when the witnesses are dead, whose testimony it is the interest of the defendant to perpetuate. {Earl Spencer v. Peck, L. E. 8 Bq. Cas. 415.) Gourts of Equity will not perpetuate tes- timony in support of a right which may be barred by the defendant. (St. § 1511.) Such a bill may be filed in relation to 488 TAKING AND PRESERVING TESTIMONY. ^iT. vi: mere personal demands, and even in eases — of penalty or forfeiture. (St. § 1509.) Bill to take Another kind of bill of a similar character, testimony debeneesse. but founded on distinct circumstances, is a bill to take testimony de bene esse, which is one that is filed to preserve testimony re- specting a vested interest in the plaintiff, which is the subject of an action or suit already commenced, and which depends on the testimony of a single witness, or on the sole testimony of aged or infirm persons, or on testimony that cannot be given viva voce in the ordinary way. Thus, an order will be made to take the testimony of persons who are seventy years of age, or of persons who are unable to travel, or of those who are going abroad and likely to die before the time of the trial. And the Court will even entertain a bill to preserve the testimony of a witness who is capable of attending, if he is a single witness to an important fact in the cause. (St. § 1513, 1514. See Judgment in Earl Spencer v. Peck, L. E. 3 Bq. Cas. 421.) When a bill Where a person is able to bring a matter to take and . .,..,. prescrvetes- into immediate iudicial investigation, and timony will ■' ° ' t°rtained' ^^^ ^^ ^^^ ^'^^ Commenced any suit, the Court will not entertain a bill of any kind to take and preserve testimony in his favor. TAKINfl AND PEESERVING TESTIMONY. 489 For, if, in sach ease, the evidence may be "^^^^ "^p procured viva voce in the ordinary way, there is no need whatever of having recourse to written depositions in place of viva voce evi- dence. (St. § 1508 ; Mlice v. Eoupell (No. 1), 32 Beav. 299; S. 0. (ISTo. 2) 32 Bcav. 308; S. C. (No. 3) 32 Beav. 318.) And even if the evidence cannot be procured in the ordinary w-ay, yet a bill to take the testimony de bene esse will not be entertained except in aid of a suit already commenced ; because if it were, the plaintiff in the bill, having obtained the written testimony of his own witnesses, might delay his action until their death, so that they might be guilty of the grossest perjury, and yet go unpunished, and also until the death of those witnesses for the adverse party who were able to give their testimony in the usual way, and thus the jus- tice of the case might be entirely defeated. (See St. § 1508 and note, and 1513 note.) Commissions to take the testimony of witnesses abroad, although confined to civil actions, are grantable in cases of civil tort, such as libel. (St. § 1515.) ,,, , When dtipo- Bven where an order is made to take the jit'^s taken on written depositions of witnesses, on a bill to ^i^'nou,! perpetuate testimony, or to take testimony usdd^ '"^ ^"' 490 TAKING AND PEESERVING TESTIMONY. Cap Ii' '^^ ^^"^ ^^*^' ^^'^ evidence so taken must not be used, if the witnesses are alive, and capa- ble of attending, and within the jurisdiction at the time of the trial. (St. § 1507, 1508, note, 1512, 1513, note, and 1516, note,) INDEX. A. ABATEMENT, of debts and legacies, 268. ACCIDENT, delinition of, 36. remediable at law, 36, not remediable at law or in equity, 36. remediable in equity, 39. arising from neglect, 36. preventing fulfilment of engagement, 37. to property in lease, 37. death of vendor before receipt of annuity, 37. defective execution of a will, 38. defective execution or non-execution of a power, 42. loss of deeds, 39. loss of bonds and unsealed securities, 41, 42. ACCOUNT, 260. settlement of £(ccounts, 260. open accounts, 261. stated accounts, 261. settled accounts, 262. appropriation of payments, 264. agency, 362. mesne profits, 362. waste, 363. tithes and moduses, 363. ACQUIESCENCE, in a breach of trust, 211. ACTION, THIN&S IN, assignment of, 242. ADEMPTION, of portions unden a settlement, 379. (491) 492 INDEX. ADEMPTION— (contiiiMe^). of legacies to a child, 381 . no ademption of legacies to strangers, 382. ADMINISTBATION, jurisdiction as to, 265. bill by executor or administrator, 265. bill or summons bj- creditors, 206. division of assets, 267. definition of legal assets, 267. definition of equitable assets, 267. of legal assets, 268. of equitable assets, 268. order of administration of different properties, in payment of debts, 270. in payment of legacies and annuities, 271. order of satisfaction, 281. marshalling of assets, 284. in the case of charitable legacies, 288. foreign assets, 291. ADVANCEMENT, 172. ADVISER, fraud of a confidential, 78. ADVOWSON, mortgage of, 301. • AGENCY, 362, 403. AGENT, fraud of an, 81. sales and purchases by, 81. liability to account, 264. AGREEMENT. See Fratjd— Specific Pekfoemance. ALIENATION, restraint on, 458. ANNUITY, not a satisfaction, 386. ANTICIPATION, restraint on, 458. INDEX. 493 APPOINTMENT. See Powers. fraudulent, 106. election, in ease of an, 372. satisfaction by an, 387. APPORTIONMENT, 340. APPRENTICE FEE. apportionment of, 840. APPRENTICESHIP. specific performance of articles of, 227. ARBITRATION, interference of equity in regard to, 251. ASSETS. See Administeatioit. ASSIGNMENT, right to call for, 27. for benefit of creditors, 136. in another's name, 171. against public policy, 238. of pay, pensions, or prize-money, 238-9. of pretended titles, 239. of mere naked rights to litigate, 249. ., of possibilities, or thincrs inaction, 242. L.^ji , ?* A T what amounts to an, 244. (?Wt^ 1^ fjfU^n^^ JM what must be done to^pbtain quasi possession under an assignment,-247. Y^- , , , . "? ' > COLONIAL, ' ■*-" property or contracts, 29. COMMISSIONERS OF BANKRUPTS, purchase by, 84. COMMON, bill to establish a right of, 407. COMPENSATION, old rule as to, 364. Stat. 21 & 22 Vict. c. 27, s. 1, as to damages, 364. to a defendant,, 363.' relief against penalties and forfeitures, 365. no relief against liquidated damages, 367. for a breach of covenant or condition, 368. relief against statutory penalties or forfeitures, 369. COMPROMISE, 47. CONCEALMENT, 61, 91, 95. CONDITION, gift with an illegal condition, 157. relief against breach of, 365. CONFIRMATION, distinction between void and voidable transactions, as regards confirmation, 75. CONSENT, refusal of consent to a marriage, 66. CONSIDERATION. See Fbaud. inadequate, 64. excessive, 89. conveyance without consideration, 102 — 5, 155, 157. 496 INDEX. CONSIDERATION— (co?jtiT!i(C(J). agreement not generally enforced in the absence of a valuable consideration, 135, 231. CONSIGNMENT, revocableness of, 139. CONTINGENT INTERESTS, assignment of, 244. CONTINGENT REMAINDERS, trustees to support, 217. • CONTRACT. See FKAtrD— Spkcific Performance. CONTRIBUTION. See Iitcumbrastces. towards incumbrances, 343. towards charges of renewal of leaseholds, 345. between sureties, 345. towards a loss or expense in a voyage, 347. CONVERSION, change in the character of property by agreement or direction to convert, 25, 226. undisposed of produce of real estate, 161. undisposed of part of mixed fund, 163. undisposed of part of money directed to be converted, or of the produce thereof, 164. failure of objects for, 164. of determinable or reversionary property, 201. time allowed for, 202. of infant's property, 432. CONVEYANCE, with notice of another's title, 08. without consideration, and without use or trust, 157. in another's name, 157, 172. ^ right to call for, 27. COPIES, of deeds, 400. COPYRIGHT, injunctions to restrain infringements of, 420. COSTS, mortgage for, 323. INDEX. 497 COUNSEL, purchase by, 84. COVENANT, where distributive share is a satisfaction of an obliga- tion by, 29. must be fulfilled, notwithstanding accident, 37. to purchase, lands, 175. to leave property, 95. to settle lands, 176. to convey, transfer, or pay money or other property, 179. to settle, charge, dispose of, or affect after-acquired property, 243. where relief is granted as to a breach of, 368. CREDITORS. See Debtoe. favored, 166. purchases by, 84. frauds on, 97. frauds by, 84, 95. assignments for benefits of, 136. preferences of, 137. payment of legatees or distributees before, 179. where they cannot follow the assets, 212, 213. bill or summons by, 266. rights of joint creditors of a partnership, 352. priority as between joint and separate creditors of partnership, 352. may proceed against a deceased partner's or joint debtor's estate in first instance, 353. election in the case of, 376. legacies to, 384. by, 385. right to benefit of securities, 356. right as against general appointee, 106. CRIMINAL PROCEEDINGS, suppression of, 74. DAMAGES, 364. See Compensation. DEBTOR. See Ckeditor. frauds in the case of persons standing in the confi- dential relation of debtor, creditor, and surety, 84. 42* 498 INDEX. DEBTOU— {continued). legacies by, 384. legacies to, 385. direction to debtor to hold for a third person, 122. proceedings against estate of deceased joint debtor in the lirst instance, 353. DEBTS. See Set-off. what included in a cliarge, or trust, of power, for pay- ment of debts, 107. devise in trust to pay, 165 — 6. devise charged with or subject to, 166. indirect charge of, 166. collateral securities for a debt assigned, 176. due from executor, 188. assignment of, 247. payments to assignee of a debt, 250. payment of mortgage debt, 278, 280, 324. by breach of trust, 209, 211. operation of Statute of Limitations as regards, 269. executor personally liable for, 214. abatement of, 268. order of administration of different properties in pay- ment of, 270, marshalling of securities, 354. DECLARATION, of trust, 121, 131. DEEDS. Sec Mistake. destroyed, lost, or suppressed, 39. production of, by mortgagee, 302. cancelling, delivering up, and securing, 396. inspection and copies of, 400. DELIVERING IIP, of documents, 396 — 400. of chattels, 427. DEPOSIT, of documents, 426. mortgage by, 326, 332—4. DEVISEES. See Will. under a will defectively executed, 38. INDEX. 499 DISABILITY. See Infants, Lunatics, Mareied Women. to contracts, 231. election by persons under, 377. DISCOVEEY, 480. DISTBIBUTITE SHARE, ■where a satisfaction of a covenant, 29. DOCTOR, fraud of a, 81. DOCUMEITTS, cancelling, delivering up, and securing, 396. inspection and copies of, 400. deposit of, 426. DOMICILE, how far the law of domicile governs, 30, 292, 293. DONATIONES MORTIS CAUSA, 117. DOWER, right to, 131. ' assignment of, 393. (L / i - , DURESS, .JWrUi^.^.--:,,.- '3 ^ frauds on persons under, 68, 69. / E. ELECTION, defined, 370. at law, 370. in equity, 370. as to one benefit given by will, 375. need not be made in ignorance of circumstances, 375. presumed, 376. in the case of creditors, 376. by a person under disability, 377. in the case of a settlement, 368, 375. in the case of a gift under a mistake, 377. EQUITY, follows the law, 13. only assists the vigilant, 19. equal equity, 21, 38. 500 INDEX. EQUITY— (conimueo!). equality is, 21, he who seeks equity must do equity, 23. regards as done what ought to have been done, 24. to a settlement. See Mabkied Women. EQUITY JURISDICTION, where equity has exclusive jurisdiction, 6. where equity has concurrent jurisdiction, 7, 8, 9. on account of the inadequacy of the legal relief, 7. or to avoid circuity of action, or multiplicity of suits, 7. or to take due care of the rights of all, 7. or on account of the necessity for a discovery, 8. or on account of the original denial of due relief at law, 8. or the doubtfulness of obtaining such relief, 9. where equity has auxiliary jurisdiction, 9. where it has no jurisdiction, 9. EQUITY JURISPRUDENCE. See Natfeal Justice. definition of, 2. true character of, 3 — 6. division of, 33. remedial equity, 107. executive equity, 109 — 258. adjustive equity, 259—393. protective equity, irrespective of disability, 395 — 427. protective equity, in favor of persons under disability, 429—478. auxiliary equity, 479—490. EQUITY OE REDEMPTION, 315, 335—337. EXECUTOR. See Trustees. may not derive a benefit, 82, 84, 204. fraudulent dealing with executors or administrators, 101. sales or pledges by, 101, 214. distinction between trustees and executors in regard to the effect of joining in receipts, 207. liability, power, and duty. of, 214. trust of debt due from, lS8. right of executor to residue, 159. time allowed for breaking up testator's establishment, . ,-5222. I INDEX. 501 EXONEEATION, of personal estate from debts, 272. of specific legacy, 291. EXPECTANTS, dealings with, 86, 243, 244. EXTINGUISHMENT, of mortgage, 3.S0. E. FALSIFY, liberty to surcharge and falsify, 262. FAMILY, meaning of, 127. FAMILY AREANGEMENT, 47, 48, 66. FINE, bill to settle fine payable by copyholders, 407. FORECLOSURE, 308, 313. FOREIGN, property or contracts, 29. ignorance of foreign law, 46. assets, 291—293. judgments in foreign courts, 30. FORFEITURE^ 365—369. FORGED INSTRUMENTS, 399. FRAUD IN GENERAL, unsafe to define fraud in general, or the extent of reme- dial equity on the ground of fraud, 56. no relief to participator in, 23. contract induced by fraud, not void, 60, 61. where it may be enforced, 61. transfer of a right to compla in of a fraud, 238. FRAUD, ACTUAL, where no relief, 56. definition thereof, 56. jurisdiction in cases of, 56. evidence thereof, 57. division of, 58. 502 INDEX. PRAUD, ACTUAL— {continued). first class of actual frauds, 58. 1. Misrepresentation, 58. 2. Concealment, 61. 3. Inadequacy, 64. 4. Refusal to consent to a marriage, 66. second class of actual frauds, 67. 1. On persons of unsound mind, 67. 2. On intoxicated persons, 67. 3. On persons of weak understanding, 68. 4. On persons who are not free agents, but under duress, or in fear, or in prison, or in extreme necessity, 68, 69. 5. On infants, 69. case when one of two innocent persons must suffer by the fraud of another, 70. FRAUD, CONSTRUCTIVE, definition of, 71. four classes of constructive frauds, 71. frauds on public policy, 71. 1. Marriage brokage contracts, 71. 2. Agreements to influence testators, 72. 3. Contracts to facilitate marriages 72. 4. Contracts or conditions in restraint of mar- riage, 73. 5. Contracts or conditions in restraint of trade^ 73. 6. Fraud in relation to a bill in Parliament, 74. 7. Contracts for public offices, 74. 8. Suppression ox criminal proceedings, 74. 9. Champerty and corrupt considerations, 74. frauds in the case of persons in the confidential rela- tions of— 1. Parent, or person in loco parentis, 76. 2. Guardian, 77. 3. Quasi guardian, adviser, or minister of religion, 78. 4. Solicitor, 78. 5. Doctor, 81. 6. Agent, 81. 7. Trustee, 82. 8. Counsel, agents, commissioners of bankrupts, assignees and solicitors of bankrupts or in- solvents, auctioneers, and creditors, 83. INDEX. 503 FRAUD, CONSTRUCTIVE— (cowtinwei). frauds in the case of persons in the confidential rela- tions of — {co7itinued). 9. Executor or administrator, 84. 10. Debtor, creditor, and surety, 84. frauds in the case of persons peculiarly liable to be imposed on, '86. 1. Bargains with expectant heirs, reniaindermen, and reversioners, 86, 87. 2. Post-obit bonds, &c., by expectants, 89. 3. Sales to expectants at exorbitant prices, 89. 4. Bargains with common sailors, 90. .5. Disposition by a person soon after attaining his majority, 90. virtual frauds on individuals irrespective of any con- fidential relation, or any peculiar liability to impo- sition, 90. 1. Misleading, 91. 2. Frauds on auctions, 93. 3. Unconscientious use of the Statute of Frauds, 93. 4. Clandestine marriage contracts, 94. 5. Frauds on marriages, 94. 6. Frauds on marital rights or expectations, 95. 7. Frauds under the stat. 13 Eliz. c. 5, 96. 8. Frauds on creditors, parties to a composition deed, 97. 9. Mortgage, or conveyance, with notice of an- other's title, 98. 10. Fraudulent dealing with executors or adminis- trators, 101. 11. Frauds under the stat. 27 Eliz. c. 4, 102. 12. Frauds in the case of voluntary gifts, as against the donoi-s themselves, 105. 13. Fraudulent appointments, 105. 14. Extinguishing consideration for a contract, 107. 15. Rescinding contract, in order to benefit by flaw in title, 107. FREIGHT, assignment of, 249. G. GAMING SECURITIES, 398. 504 INDEX. GENEEAL AYEEAGE, 347. GUAEDIANS. See Infants, fraud of, 77. promising to convey to younger brother, 17. right to surplus interest in a term or other particular interest, 158. right to undisposed of produce of real estate, 161 . right to undisposed of part of mixed fund, 163. bargains with expectant, 86. post-obit bonds by, 89. sales to expectant heirs at exorbitant prices, 89. HUSBAND. See Makkied Women. fraud on, 95. I. IMPEOVEMENTS, trust in respect of, 178. INADEQUACY, 64. INCUMBRANCES. See Moetgaqes. apportionment of, 347. voluntary discharge of, 341. compulsory discharge of, 343. keeping down interest on, 343. INFANTS, jurisdiction as to, 430. appointment, removal, control, and assistance of guardians, 430, 431, 432. religion, 431. removal from their parents, 432. conversion of their property, 432. maintenance, 434. foreign property of, 438. wards of court, who are, 433. acts affecting them, 434. marriage of, 438. settlement on, 439. care of, 440. INDEX. 505 INT ANTS— (contrnwe^) . frauds on, 69, 76—7. fraudulent appointments to, 106. agreements by, 231. INFORMATION, duty of trustee to give, 222. INJUNCTIONS, defined, 410. I. To restrain proceedings at law, common, 410. special, 411. perpetual and total, or otherwise, 411. at any stage of the action, 411. after judgment, 412. when granted, 412, 419. not granted except against civil proceedings, 413. in what cases of civil proceedings not granted, 413. to whom addressed, 414. against a foreign suit, 414. II. In other cases, 415. jurisdiction, 416. different kinds, 41.5, 416. must be prayed for, 416. , equity will not limit power of granting, 416. general rule as to cases where they will be granted, 416. against waste, 416. against nuisances, 419 — 421. against infringements of patents and copyrights, ajid publication of letters, 419. against application to P^liament, 422. , j. to do some act, 422. jT^wrtjt^- r kMAtn.iAi .(h^tjCltlM-lJ INSOLVENT, ^^O assignees and solicitors of, becoming purchasers, 84. INSPECTION, of deeds, 400. INTEREST, ^rwtdcK it i'v- ■■ .--J,,-.-,. .' \ 2^)-/ l^Q conversion into principal, 299. . / ' — increase of, 299. rent instead of, 322. keeping down, 343. 43 506 INDEX. INTERPLEADER, at common law, 401. defined, 401. by a tenant, 402. by an agent, 403. by a sherifl', 404. connection between the titles of the two claimants, 402. ability to admit title of either claimant, 404. actual proceedings not necessary, 404. preliminaries, 404. INTOXICATED PERSONS, frauds on, 67. INVESTMENT, improper, 193. non-investment, 201. on mortgage, 202. J. JOINT PURCHASE OR MORTGAGE, doctrine of equity in regard to, 21, 22. • implied trust on, 174. JOINT TENANCY, limitations which would create, 174. equity leans against, 21, 174. JUDGMENT, • against trustee, 213. JURISDICTION. See Equity. interposition of equity in regard to property out of the jurisdiction, 29. L. LACHES, consequences of, 19, 263. LEASE, renewal of, by a trustee, partner, mortgagee, &c., 184. person having a limited interest, 185. by a mortgagee, 298. INDEX. 507 L'EASE— (continued) . to a mortgagee, 300. LEASEHOLD, mortgage of, 322. charges of renewal of, 845. LEGACIES, jurisdiction as to, 110. charge of, 167. payable at a future day, 112. specific legacy to one for life, remainder to another, for a purpose whicli cannot be accomplished, 113. construction of, 115, 116. abatement of, 268. ademption of, 381. to creditors, 384. to debtors, 385. i~ , • , , LEGATEES, 'k^uJ^'^ ^^ O'U^u^^-^ ^f uB^ef ,a will defectively executed, 38., ;/ /"ya LETTERS,' injunction to restrain the publication of, 421. LIEN, r, TJri-Mi.xJt^iy)^r.--iJ--^t :, I in general, 338. .• / / of a vendor, 180, 290. J? ^ VA^-^^-t-i^^ p,^ j'^^<^ ■ ofa solicitor, 338. ') J ' / of a joint tenant, 339. of a trustee, 339. of annuitants, 339. how enforced, 338. ,, , , j^ '':■ i LIMITATIONS, STATUTE OF,/, Oc^t-, MMU'i-A ' how far equity followed the law as to, 18. - ' / operation of, as regards debts, 263. as regards trusts, 153. LITIGATION, protection from, 396. assignment of mere naked rights to litigate, 240. LOST, deeds, &c., 40.. 508 INDEX. - LUNATICS AND OTHER PERSONS OF UNSOUND MIND, jurisdiction, 442. frauds on, 67. M. MAINTENANCE AND CHAMPERTY, 239. MAINTENANCE OF CHILDREN^ 434. MANAGER, 300—1, 350. MARRIAGE, refusal to consent to a, 66. brokage contracts, 72. contracts to facilitate, 72. contracts or conditions in restraint of, 73. clandestine marriage contracts, 94. frauds on, 94. frauds on marital rights and expectations, 95. articles, execution of, 136. MARRIAGE SETTLEMENT. See Accident, Fraud, Infants, Makhied Women, Mistake, &c. MARRIED WOMEN, mortgage by, 177, 326. agreements by them not enforced, 231. common-law doctrine as to, 445. powers which husband and wife have in equity of con- tracting with and giving to each other, 446. contracts before marriage, 446. contracts after marriage, 446. gifts and grants after marriage, 447. pin-money, 449. paraphernalia, 450. separate estate, 451 . means of acquiring it, 451. by gift, grant, devise, or settlement, 451. by separate trade, 45.3. by agreement after marriage, 453. by order of protection or judicial separation, • 455. wife's power of disposing of, 455. restrictions against alienation or anticipation, 458. INDEX. 509 MARRIED WOWEN— (continued). gifts to the husband by the wife, 459. husband's receipt of the income, 460. liability of, 460. wife's equity to a settlement out of her own property, 463. power of trustees of the wife's personalty not settled to her separate use, 464. ^ when defendant against her husband, 464. against his assi£>uees or vendees, 466. when plaintiff, 468. amount to be settled, 469. substitute for a settlement where fund is small, 470. waived, lost, or suspended, 471. where parties are domiciled in Scotland, 473. wife's right of survivorship in regard to reversionary interests, 468. wife's equity to a maintenance, in case of husband's misconduct, bankruptcy, or insolvency, 473. deeds of separation, 475. non-disclosure of ante-nuptial incontinence, 478. benefits under settlement not forfeited by adultery, 478. purchases of, 478. frauds of, 478. MARSHALLING, of assets, 284. in favor of mortgagees, and other creditors, or of legatees, or of a portionist, or of the heir, or of a devisee, 285. as between freehold and copyhold, 287. as between legacies charged on land and others not so charged, 287. in the case of charitable legacies, 288. as between simple contract debts and a ven- dor's lien, 290. in favor of widow's paraphernalia, 291. of securities, 355. MAXIMS, GENERAL, 10. no right without a remedy, 10, 11. where equity will give a remedy, 12, 13. 43* 510 INDEX. MAXIMS, GENEIIAL— (contiwMecf). equity follows the law, 13. necessity for vigilance, 19. where equal equity, law prevails, 21. equality is equity^ 21. plain tiir must have clean hands, 23. plaintiff must do equity, 23. equity regards as done, what ought to be done, 24. priority, 28. equity imputes intention to fulfil obligation, 28. rules as to foreign and colonial property or contracts, 29. interference of courts of law with decisions of courts of equity, 32. MESNE PROFITS, 362. MIND. See Lunatics. frauds on persons of weak understanding, 68. MINISTER OF RELIGION, constructive fraud by, 78. MISDESCRIPTION, slight, 228. substantial, 229. MISLEADING, 91. MISREPRESENTATION, 58. MISTAKE, by the sufferer alone, 45. mutual, 47. in or in regard to a written instrument, 49. ignorance of foreign law, 46. of vendor as to value, 47. MORTGAGE, I. Mortgages of real property, 294. what may be mortgaged, 294. what amounts to, 294. mortgagee's estate, 297. mortgagee's possession, leases, receiving of rent, 298. limit to mortgagee's advantage, 299. conversion of interest into principal, 299. increase of interest, 299. INDEX. 511 M.O'RTGAG'E— {continued) . lease to mortgagee, 299.' what mortgagee may add to his debt, 300. allowance for receiver, 301. of West India estate, 301. pre-emption, 302. production of deed, by mortgagee, 302. mortgagee ejecting or refusing tenant, 303. mortgagee's right to cut timber and open mines, 298. tacking, 303. with notice of another's title, 98. postponement of prior mortgage, 306. protection of subsequent mortgagees against prior vol- untary conveyances, 102. mortgagee's remedies, 308. foreclosure, 308. sale, 309. concurrent remedies, 313. mortgagor's estate and rights, 314. equity of redemption, 315. who may redeem, 318. annual rests, 320. possession by mortgagor, 320. rents received by mortgagor, 321. waste "by him, 321. expenditure by mortgagee, 321. of leasehold, 322. rent instead of interest, 322. for costs, 323. conveyance in trust to sell, 323. joint, "174. defective, 323. payment of debt, 324. out of what,' 270. contribution towards, 343. "Welsh mortgage, 325. of wife's estate, 177, 326, first mortgagee answerable to second, 327. disputing mortgagor's title, 327. assignment of, 328. what a purchaser of a mortgage can claim, 328. gift of mortgage security, 329. devise by a mortgagee, 329. right of purchaser of equity of redemption, 329. 512 INDEX. MORTGAGE— (coniOTwecZ). right of second equitable mortgagee, 329. cancelling, 330. reconveyance, 331. death of mortgagee intestate and without heirs, 831. II. Equitable mortgages of real property, S32. III. Mortgages and pledges of personal pi'operty, 334. a mortgage and a pledge distinguished, 334. tacking, 335. purchase by a second mortgagee under a power of sale from the first, 312. mortgagor's right to redeem and mortgagee's right to sell, 335. pledgor's right of redemption, 337. pledgee's right of sale, 337. N. NATUEAL JUSTICE. See Eqtjity. equity is not synonymous with, 3. large portion of it is left to conscience, 5. another large portion is administered in courts of law, 5. equity is only a portion of natural justice in a modified form, 6. jSTE exeat regno, 423. NEXT OF KIN, right of, 159—165. NOTES, LOST, 42. NOTICE, two kinds of, 99. what is, 99—100. conveyance or mortgage with notice of another's title, 98. notice of assignment, 247 — 250. notice of incumbrance, 307 — 8. NUISANCES, injunctions to restrain, 419. O. OBLIGATION, fulfilment of, 28. INDEX. 513 OFFICERS, assignment by oiHcers of government, 238. OFFICES, contracts for, 74. PARAPHERNALIA, 449. marshalling in favor of, 450. PARENT, frauds of or on a parent or person standing in loco parentis, 76. removal of children from, 432. PAROL CONTRACTS, where enforced, 252. PAROL PROMISE, where enforced, 256. PAROL VARIATIONS OR ADDITIONS, 255. PARTITION, bill for a partition of property out of jurisdiction, 30. mode of partition, 388. title shown, 388. by or against tenants who have limited interests, 390. equitable adjustments, 390. of partnership leaseholds, 351, PARTNERSHIP, jurisdiction, 348. specific performance of agreement to enter into, 348. carrying into effect the articles of, 348. dissolution of, 349. application of articles after cesser of term, 349. injury prevented, 350. account, manager, and receiver, 350. partition, 351. using stock after dissolution, 351. property held for partnership purposes, 174, 351. rights of joint creditors, 352. priority as between joint and separate creditors, 352. creditors may proceed against a deceased partner's estate in tlie first instance, 353. 514 INDEX. PATENTS, injunctions to restrain infringements of, 419. PAYMENT, into Court or to the party, 426. PAYMENTS, appropriation of, 264. PEACE, bills of, 406. PENALTIES, payment of, 258, 365. PIN-MONEY, 449. PLEDGES, distinguished from mortgages of personal property, 334. pledgor's right of redemption, 337. pledgee's right of sale, 337. POLICY, PUBLIC, frauds on, 71. assignments, contracts, and covenants against, 238. PORTIONS, what is a portion, 113. where not to be raised, 114. time for raising, 114. interest, 115. satisfaction of, 378. POSSIBILITIES, assignment of, 242. POST-OBIT BONDS, 89. POWEES, relief in cases of the defective execution or non-execu- tion of, 18, 42, 54. effectuating tlie general intention of the donor of a power, 155. PRETENDED TITLES, 239. INDEX. 515 PEIMOGENITUEE, equity follows tlie law as to, 16. PROMISE. See Specific Performance. PURCHASE, with notice of another's title, 98. in another's name, 171. covenant or trust to purchase lands, 175. of a mortgage, 328. of a lien or mortgage by a trustee, 184. of an estate by a trustee or agent, 185, 205. money to be paid out of personal estate, 228. with right of repurchase, 294. of an equity of redemption, 329. from executor or administrator, 101. PURCHASER, for valuable consideration, rights of, 21, 38, 50, 190, 212. protection of subsequent, 102. purchaser's heir may require the money to be paid out of the personal estate, 228. his obligation to see to the application of the purchase- money, 141. QUIA TIMET, 396. Q. R. RECEIPTS, distinction between trustees and executors as regards joining in, 207. RECEIVER, appointment of, 425. office, possession, and power, 425-6. allowance to mortgagee for, 301. RECONVEYANCE, 331. RECTIFYING. See Mistake. REDEMPTION. See Mortgage. 516 INDEX. "RELATIONS," meaning of, 127. RELEASE, rectifying, 53. ^ REMAINDERMEN, bargains with, 87. REMITTANCE, revocableness of, 139. RENEWAL, of lease, by a person having a limited interest, 185. RENT, obligation to pay, notwithstanding accident, 37. RENTS, where a suit will be entertained for the recovery of, 12. REPAIRS, covenant to do, 37. trust in respect of, 178. REPURCHASE, purchase, with right of, 294. RESIDUE, undisposed of, 158 — 160. RESTS, 205, 320. REVERSIONERS, bargains with, 82. SAILORS, frauds on, 90. SALE, omission to sell, 193. by a mortgagee, 309, 335. conveyance in trust to sell, 323. frauds on auctions, 93. INDEX. 517 SATISFACTION, defined, 378. where arising, 378. rebutted, 378. of portions secured by settlement, 379. of portions left by will, 381. none in the case of str.angers, 382. of legacies to creditors, 384. of legacies to debtors, 385. of annuity, 386. of covenant to settle lands, 387. of covenant to bequeath, 387. SECURING, of documents, 400. SECURITY, in another's name, 171. marshalling of securities, 354. mutual right to the benefit of, between creditor and sureties, 356. delivery up of, 399. SEPARATION, deed of, 475. SEPARATE USE. See Mabeied Women. SET-OFF, connected accounts, 359. independent debts or demand, 359. where' one debt is joint and the other separate, 360. demands in different rights, 360. SETTLEMENT. See Mabeied "Womek, Maekiage Settlement, Infants. rectifying, 49, 50. voluntary, 102. SHERIFF, interpleader by, 404. SOLICITOR, actual fraud of a, 59. constructive fraud of a, 78. gifts or gratuity to a, 80. charges by a trustee who is a, 191. 44 518 INDEX. SPECIFIC PERFORMANCE, remedy at law, 223, 225. decree in equity where damages would not aflTord com- pensation, 223. between persons claiming under the parties, 227. where terms are not complied with in non-essential particulars, or where there is a slight misdescription, 228. where there is a want of title, or a substantial misde- scription, or want of reasonable compliance with terms of agreement, 229. where there is an accidental incapacity of performing the remainder of an agreement, 230. submodo, 230. where the parties were incompetent to contract, 231. where the terms are not certain or definite, 231. where there is no valuable consideration, 231. where it would be morally wrong or inequitable, 234. of assignments, contracts, or covenants against public policy, 238. assignments by oflBcers of the government, 238. assignments involving champerty, maintenance, or buying of pretended titles, 239. assignments of mere naked rights to litigate, 240. assignment of possibilities, or things in action, 242. connected with arbitration, 251. parol contracts, 252. parol variations or additipns, 255. ' „ parol promises, 256. ^/j ■'U-t'..i/s, l''^■^J'JAi -■ r,f :' agreements to borrow, 257. negative agreements, 257. not avoided by payment of penalties, 258. of agreement to enter into a partnership, 348. STATUTES, 17 Edward II. c. 9 (Idiots), 442. 17 Edward II. c. 10 (Lunatics), 442. 27 Henry VIII. c. 10 (Uses), 123. 32 Henry VIII. c. 9 (Pretended Titles), 240. 13 Elizabeth, c. 5 (Fraudulent Conveyances), 96. 27 Elizabeth, c. 4 (Fraudulent Conveyances), 102 ^ 140. INDEX. 519 STATUTES— (conJmwed) . 29 Car. II. c. 3 (Frauds), 93, 121, 252. 9 Geo. II. c. 30 (Mortmain),'287. 1 Wm. IV. c. 40 (Residue), 159. 1 Wm. IV. c. 60 (Trustees), 222. 1 Wm. IV. cc. 60, 65 (Infants), 441. 1 Wm. IV. cc. 60, 65 (Persons of Unsound Mind), 444. 1 & 2 Wm. IV. c. 58 (Interpleader), 401. 3 & 4 Wm. IV. c. 27, ss. 24, 28 (Statute of Limita- tions), 153, 309, 315. 3 & 4 Wm. IV. c. 104 (Debts), 11, 286. 3 & 4 Wm. IV. c. 105, s. 2 (Dower), 316. 7 Wm. IV. 1 Vict. 0. 28 (Statute of Limitations), 309. 1 Vict. c. 26 (Devise to Heir), 373. 1 & 2 Vict. c. 110 (Judgments), 304. 7 & 8 Vict. c. 76 (Receipts), 146. 7 & 8 Vict. c. 76, s. 9 (Reconveyance of Mortgaged Estate), .331. 8 & 9 Vict. c. 106 (Contingent Interests), 243. 8 & 9 Vict. c. 106, s. 1 (Reconveyance of Mortgaged Estate), 331. 8 & 9 Vict. c. 112 (Terms), 134. 10 & 11 Vict. c. 96 (Trusts), 222. 12 & 13 Vict. c. 74 (Trusts), 222. 13 & 14 Vict. c. 60 (Trusts), 222. 13 & 14 Vict. c. 60 (Persons of Unsound Mind), 444. 13 & 14 Vict. c. 60 (Infants), 441. 13 & 14 Vict. c. 60, ss. 19, 20 (Reconveyance of Mort- gaged Estate), 331. 13 & 14 Vict. c. 60, s. 30 (Partition), 389. 14 & 15 Vict c. 99, ss. 2, 6 (Evidence), 483. 15 & 16 Vict. c. 55 (Trusts), 222. 15 & 16 Vict. c. 55 (Infants), 441. 15 & 16 Vict. c. 55 (Persons of Unsound Mind), 444. 15 & 16 Vict. c. 76, ss. 219, 220 (Redemption), 297. 15 & 16 Vict. c. 86, s. 45 (Summons), 266. 15 & 16 Vict. c. 86, s. 48 (Sale of Mortgaged Estate), 309. 15 & 16 Vict. c. 86, s. 58 (Injunctions), 411. 16 & 17 Vict. c. 70 (Persons of Unsound Mind), 444. 16 &17 Vict. c. 137 (Charities), 149. 17 Vict. c. 113 (Mortgage Debts), 278. 17 & 18 Vict. c. 90 (Usury), 24. 520 INDEX. ST ATTJT'ES— (continued) . 17 & 18 Vict. c. 104 (Shipping), 336. 17 & 18 Vict. c. 12.5, ss. 50—54 (Evidence), 483. 17 & 18 Vict. c. 125, ss. 79—82 (Injunctions), 416. 18 Vict. c. 13 (Persons of Unsound Mind), 444. 18 & 19 Vict. c. 124 (Charities), 14». 19 & 20 Vict. c. 120 Infants), 441. 19 & 20 Vict. c. 120 (Persons of Unsound Mind), 444. 20 & 21 Vict. c. 57 (Reversionary Interests), 468. 20 & 21 Vict. c. 77, s. 23 (Legacies— Residues), 111, 265. 20 & 21 Vict. c. 85, ss. 21, 25 (Separate Use), 455. 21 & 22 Vict. c. 27 (Trial of Questions of Fact), 410. 21 & 22 Vict. c. 27 (Damages), 364. 21 & 22 Vict. c. 108, s. 8 (Separate Use), 455. 22 & 23 Vict. c. 35 (Trusts), 222. 22 & 23 Vict. c. 35, ss. 4—6 (Forfeiture), 368. 22 & 23 Vict. c. 35, s. 12 (Appointments), 42. 22 & 23 Vict, c 35, s. 13 (Sales under Powers), 45. 22 & 23 Vict. c. 35, s. 23 (Receipts), 145. 22 & 23 Vict. c. 35, s. 29 (Notice for Creditors), 215. 22 & 23 Vict. c. 35, s. 30 (Directions to Trustees, &c.), 216. 22 & 23 Vict. c. 35, s. 31 (Reimbursement), 209. 22 & 23 Vict. c. 35, s. 31 (Indemnity), 209. 22 & 23 Vict. c. 35, s. 32 (Investments), 195. 23 & 24 Vict. c. 38, s. 1 (Judgments), 352. 23 & 24 Vict. c. 38, ss. 10, 11, 12 (Investments), 195. 23 & 24 Vict. c. 38, s. 145 (Trusts), 222. 23 & 24 Vict. c. 126 (Forfeiture), 368. 23 & 24 Vict. c. 134 (Charities), 149. 23 & 24 Vict. c. 136 (Charities), 149. 23 & 24 Vict. c. 145 Powers of Mortgagees), 301. 23 & 24 Vict. c. 145 (Investments), 195. 23 & 24 Vict. c. 145, ss. 12, 29 (Receipts), 146. 22 & 24 Vict. c. 145, ss. 17—24 (Receiver), 425. 23 & 24 Vict. c. 145, s, 26 (Maintenance), 434. 32 & 24 Vict. c. 145, ss. 27, 28 (Trustees), 220. 23 & 24 Vict. c. 145, s. 30 (Powers of Executors), 214. 25 & 26 Vict. c. 42 (Questions of Law and Fact), 410. 25 & 26 Vict. c. 63, s. 3 (Mortgages of Ships), 336. 25 & 26 Vict. cc. 86, 111 (Persons of Unsound Mind), 444. 30 & 31 Vict. c. 69 (Mortgage Debts), 280. INDEX. 521 STATVTBS— {continued). 30 & 31 Vict. c. 132 (Investments), 195. 81 Viet. c. 4 (Purcliase of Reversions), 88. STOCK, reduction of, 36. SUB-PUBCHASE, 240—1. SURCHABGE AND FALSIFY, liberty to, 262. . SURETIES, Stn^'-'^- l^^^^->'-^^f~^^ .'" contribution between, 345. rights of creditors and sureties, 84, 356. SURPLUS, rigUt of heir or next of Mn or executor to, 156—163. T. TACKING, 303, 335. TENANT, interpleader by, 402. TERM OF YEARS, trusts of, 132. TESTATORS, agreement to influence, 72. TESTIMONY, bill to perpetuate, 486. bill to take testimony de bene esse, 488. TIMBER, trust as to, 176. TIME, where time is of the essence of a contract, 228. TITHES AND MODUSES, 363. TITLE, muniments of, 219. want of, 229. buying a pretended, 239. 4i* 522 INDEX. TRADE, contracts or conditions in restraint of, 73. TEUSTS IN GENERAL, definition of, 120. division of, 120. extent of jurisdiction over, 120. TRUSTS, EXPRESS PRIVATE, defined, 121. mode of declaring, 121. by wliat words created, 123. intended trust, though void, excludes donee from taking beneficially, 128. executed and executory, 15, 129. governed by the same rules as legal estates, 131. of terms for years, 132. created without cestui que trusVs knowledge, 135. what will be enforced, 135. execution of marriage articles, 136. assignments for benefit of creditors, 136. revocableness of a consignment or remittance, 139. revocableness of a consignment of equitable property, or a declaration of trust in favor of a volunteer, 139. effect of a direction or power to raise money out of rents for debts, &c., or of a charge, 140. bar of, 147. performed as to the main intent, 147. where legal and equitable estates have no separate existence, 148. TRUSTS, EXPRESS CHARITABLE. See Chabities. TRUSTS, IMPLIED, sometimes called constructive trusts, 178. defined, 155. in a power, 155. when trusts fail or the property is unexhausted, 156. on an absolute gift, with an ineffectual or partial trust, or a void condition, 156. on a conveyance without a consideration, and without a use or trust, 157. on a limitation of a particular interest only, 158. INDEX. 523 TRUSTS, IMFI^TED— (continued). of undisposed residue of testator's personalty, 159. of undisposed of produce of real estate, 161. of undisposed of part of mixed fund, 163. of undisposed part of money directed to be converted, or of the produce, 164. failure of objects for conversion, 164 — 165. charges, 165. on conveyance, assignment, or security in another's name, 171. on purchase or transfer of stock or delivery of money, on limitations which would create a joint tenancy at law, 174. on covenant or trust to purchase lands, 175. on covenant to settle lands, 176. of collateral securities for a debt assigned, 176. of ornamental timber, 176. of wife's mortgaged property, 177. TEUSTS, KESULTING, 156—165, 171—173. TRUSTS, CONSTRUCTIVE, defined, 178. in respect of repairs or improvements, 178. in favor of creditors, 179. on a covenant or agreement to convey, transfer, or pay money or other property, 179. vendor's lien for unpaid purchase-money, 180. of lease, of which a renewal is obtained by a person having a limited interest, 185. on a wrongful conversion or alienation of trust prop- erty, 186. of mortgaged estate, 188. of debt due from executor, 188. TRUSTEES, who may be, 189. acceptance of office of, 189. profits by, 82, 184, 204. gifts to, 82, 205. purchase by, 184, 205. devolution or delegation of trust, 189. equity never wants a trustee, 190. 524 INDEX. TEUSTEES— (conti»we(J). . no remuneration allowed, 191. expenses allowed, 192. what care and diligence they are bound to use, 192. omission to sell, 193. improper investment, 193. omission of one trustee or executor to see that the property is duly secured or applied, 197. losses without want of customary care or diligence, 200. non-investment,' 201. conversion of terminable and reversionary property, 201. time allowed for conversion, 202. investment on mortgage, 202. may not mix the trust money with their own, 203. responsibility for each other's acts and defaults, 206. distinction between trustees and executors in regard to the effect of joining in receipts, 207. indemnity clause, 209. breach of trust by, 209, 212—214. acquiescence in a breach of trust, 211. debt by breach of trust is a simple contract debt, 212. power to bind the estate by a sale, transfer, mortgage, or specific lien, 212. judgment against, 211. to support contingent remainders, 217. aid and direction to, 216, 218. safety of, 218. possession of muniments of title, 219. removal of, 220. appointment of, 220. where trustees took the fee, 220. conveyance of legal estate to cestui que trust, 221. settlement of accounts, 221. duty of keeping accounts and rendering infornuition, 222. U. USURIOUS TRANSACTIONS, 24, 397. INDEX. 525 Y. VENDOR, vendor's lien, 180. nature of and reasons for, 180. where it originally exists, 181. continuance thereof, 181. against whom it exists, 182. misrepresentation or cor^ealment by, 58 — 64. VIGILANTIBUS, non dormientihus, mquitas subvenit, 19. VOID AND VOIDABLE CONTRACTS AND IN- STRUMENTS. See Fraud. cancelling, 396. VOLUNTARY. See Coksidebatioit. VOLUNTEER. See Consideeation. rights of, 27. when a collateral relation not a, 104. fraud of, 105. revocableness of a conveyance of equitable property, or a declaration of trust in favor of a volunteer, 139. voluntary deed not cancelled, or enforced, 399. "W. "WARDS. See Infajstts. "WASTE, injunctions to restrain, 176, 412. by a mortgagor, 321. by a mortgagee, 298. account in cases of, 363. equitable, 176, 418. "WEAK UNDERSTANDING, frauds on persons of, 68. WELSH MORTGAGE, 325. 526 INDEX. WEST INDIA ESTATE, mortgage of, 301. WILL, defective execution of a will not remedied, 38. agreements to influence a testator, 72. bills to establish wills, 408. mistake or omission in, 54. fraud in regard to, 56. r THE ENS. ADDENDA. Pp. 27], 287 n. In Bcnsman v. Fryer, L. R., 3 Ch. Ap., 420, Lord Chelmsford, C, held that a residuary devise remains in effect specifie, notwithstanding the 24th section of the " Wills Act," and that a general legatee and ii. residuary devisee must contribute pro rata in payment of debts which the other property first appli- . cable is insufficient to satisfy. 31 & 32 VICT., CAP. XL. An Act to amend the Law relating to Partition. [25^/t June, 1868.] Be it enacted by the Queen's most excel- lent Majesty, by and with the advice and consent of the Lords Spiritual and Tem- poral, and Commons, in this present Parlia- ment assembled, and by the authority of the same, as follows : 1. This Act may be cited as The Partition Short title. Act, 1868. 2. In this Act the term " the Court " means Aa to the term '* the the Court of Chancery in England, the Court court." of Chancery in Ireland, the Landed Estates Court in Ireland, and the Court of Chancery of the County Palatine of Lancaster, within their respective jurisdictions. ( 527 ) 528 31 & 32 VICTORIiE, CAP, 40. Partition. Power to Court to order sale instead of division Sale on amplication ot certain proportion of parties interested. 3. In a suit for partition, where, if this Act had not been passed, a decree for par- tition might have been made, then if it appears to the Court that, by reason of the nature of the property to which the suit relates, or of the number of the parties inte- rested or presumptively interested therein, or of the absence or disability of some of those parties, or of any other circumstance, a sale of the property and a distribution of the proceeds would be more beneficial for the parties interested than a division of the property between or among them, the Court may, if it thinks fit, on the request of any of the parties interested, and notwithstand- ing the dissent or disability of any others of them, direct a sale of the property ac- cordingly, and may give all necessary or proper consequential directions. 4. In a suit for partition, where, if this Act had not been passed, a decree for partition might have been made, then if the party or parties interested, individually or collective- ly, to the extent of one moiety or upwards in the property to which the suitrelates, request the Court to direct a sale of the property and 31 & 32 VICTORIA, CAP, 40. -829 Partition. a distribution of the proceeds instead of a division of the property between or among the parties interested, the Court shall, unless it sees good reason to the contrarj^, direct a sale of the property accordingly, and give all necessary or proper consequential directions. 5. In a suit for partition, where, if this As to pur- chase of Act had not been passed, a decree for par- share of ■*■ party de- tition might have been made, then if any siriugsaie. party interested in the property to which the suit relates requests the Court to direct a sale of the property and a distribution of the proceeds instead of a division of the property between or among the parties inte- rested, the Court may, if it thinks fit, unless the other parties interested in the property, or some of them, undertake to purchase the share of the party requesting a sale, direct a sale of the property, and give all necessary or proper consequential directions, and in case of such undertaking being given the Court may order a valuation of the share of the party requesting a sale in such manner as the Court thinks fit, and may give all nec- essary or proper consequential directions. 6. On any sale under this Act the Court fol!pa"ue8 45 539 31 & 32 viCTOKi^, cap. 40. Partition. interested may, if it thinks fit, allow any of the parties to bid. ^ interested in the property to bid at the sale, on such terms as to non-payment of deposit, or as to setting oflF or accounting for the purchase-money or any part thereof instead of paying the same, or as to any other mat- ters, as to the Court seem reasonable. Application 7. Section Thirty of The Trustee Act, Act. 1850, shall extend and apply to cases where, (13&14Vict. ' ^^ ■' c. 60.) in suits for partition, the Court directs a sale instead of a division of the property. Application 8. Scctions Twcnty-threc to Twenty-five ot proceeds °/J'?'^-,,. , (both inclusive") of the Act of the session (19&20Vict. ^ J C.120.) of the nineteenth and twentieth years of Her Majesty's reign (Chapter One hundred and twenty), "to facilitate Leases and Sales of Settled Estates," shall extend and apply to money to be received on any sale effected under the authority of this Act. Parties to 9. Any person who, if this Act had not partition suits. been passed, might have maintained a suit for partition may maintain such suit against any one or more of the parties interested, without serving the other or others (if any) of those parties ; and it shall not be compe- 81 & 32 viCTORiiE, CAP. 40. 531 Partition. tent to any defendant in the suit to object for want of parties ; and at the hearing of the cause the Court may direct such inqui- ries as to the nature of the property, and the persons interested therein, and other matters, as it thinks necessary or proper with a view to an order for partition or sale being made on further consideration ; but all persons who, if this Act had not been passed, would have been necessary parties to the suit, shall be served with notice of the decree or order on the hearing, and after such notice shall be bound by the proceedings as if they had been originally parties to the suit, and shall be deemed par- ties to the suit; and all such persons may have liberty to attend the proceedings ; and any such person may, within a time limited by general orders, apply to the Court to add to the decree or order. 10. In a suit for partition the Court may costs in parti tiou make such order as it thinks just respect- suits. ing costs up to the time of the hearing. 11. Sections Nine, Ten, and Eleven of the general orders Chancery Amendment Act, 1858, relative to ^"^'^'^"''^ the making of general orders, shall have ^^27.r^'°'' 532 31 & 32 viCTOKi^, cap. 40. Partition. effect as if thej' were repeated in this Act, and in terms made applicable to the pur- poses thereof. .lunsdiction 12. Ill England the County^Courts shall Courts in have and exercise the like power and autho- partition. (28&29Vict. rity as the Court of Chancery in suits for partition (including the power and authority conferred by this Act) in any case where the property to which the suit relates does not exceed in value the sum of five hundred pounds, and the same shall be had and ex- ercised in like manner and subject to the like provisions as the power and authority conferred by Section One of the County Courts A.ti£ 1865.