صور الصفحة
PDF
النشر الإلكتروني
[blocks in formation]

LOWELL, J. This bill is brought upon two patents, and the demurrer of the city of New Bedford raises several objections, all but one of which, it is agreed, can be and may be removed by amendment. A question which cannot be thus disposed of, and which has been argued with earnestness, and is pending in at least one other Circuit, is whether the complainant's title to an undivided part of one of the patents is sufficient. It seems that this title comes through an administrator of the patentee, and the defendant contends that the grant of a patent, by Rev. Stat., § 4884, is to the patentee, "his heirs and assigns," and that by force of these words a patent descends directly to the heirs, without the intervention of the administrator. This is a new and somewhat surprising proposition. It has never been doubted before that a patent is personal property, which follows the ordinary course, and goes to the executor or administrator in trust for the next of kin. The cases take this for granted, and when any question has been mooted, it has had reference to the due qualification of the executor or administrator, or something of that sort, as in Rubber Co. v. Goodyear, 9 Wall. 788. The text-writers treat of patent-rights as personal property which goes to the executor. Norm. Pat. 145; Schouler Exrs., § 200. The defendant argues that the statute of 1870 changed the rule by omitting the words "executors and administrators" from what is now section 4884, intending to make a sort of real estate of this incorporeal right. He has not argued that the widow can be endowed of it, but I suppose that will follow. A grant of personal property to a man and his heirs, without further qualification, means to him and his next of kin, according to the statute of distributions. 4 Kent Comm. (5th ed.) 537, note d, and cases; Vaux v. Henderson, 1 J. & W. 338n.; Gittings v. McDermott, 2 Mylne & K. 69; Re Newton's Trusts, L. R., 4 Eq. 171; Re Gryll's Trusts, L. R., 6 Eq. 589; Re Steeven's Trusts, L. R., 15 Eq. 110; Re Thompson's Trusts, 9 Ch. Div. 607; Houghton v. Kendall, 7 Allen, 72; Sweet v. Dutton, 109 Mass. 589. Such a grant is simply a limitation of an estate of inheritance, having no reference one way or the other to the administrator. He takes in trust for the next of kin, because the estate is more than a life estate. The acts of Congress have not been drawn with technical accuracy in this particular respect. Down to 1836 the word 66 executors 27 was omitted, and patents were issued to the patentee, his "heirs, administrators, or assigns" (St. April 10, 1790, §1; 1 St. 110; St. Feb. 21, 1793, § 1; 1St., § 321); but no one ever doubted but executors would take the title. In 1836 executors were added, *S. C., 19 Federal Reporter, 753.

[ocr errors]

and the grant was to the patentee, his "heirs, administrators, executors or assigns." St. July 4, 1836, § 5; 5 St. 119. In 1870 administrators and executors were left out. This omission is not significant. The law was not changed by it, the proof of which is that executors and administrators are mentioned as taking title in five of the sections of the Revised Statutes which reenact the law of 1870. Thus, by section 4896, if an inventor dies before a patent is granted, the right to obtain it devolves on his executor or administrator, in trust for his heirs at law (that is, his next of kin, as we have seen), or to his devisees, as the case may be, which technically should be legatees. By section 4898 every patent shall be assignable, and the patentee and his assigns, or legal representatives," may in like manner grant, etc. Now legal representatives usually means executors or administrators (Price v. Strange, 6 Madd. 159; Re Gryll's Trusts, L. R., 6 Eq. 589), and it has that meaning in this statute, for by section 4896, above mentioned, by which the executors or administrators are authorized to apply for a patent, it is provided that when the application is made "by such legal representatives," the oath shall be varied to meet their situation. By section 4900 it is made the duty of all patentees and their assigns and "legal representatives" to do certain acts by way of informing the public that the article they make or sell is patented. By section 4922, when a patentee has innocently claimed more than his invention, he, his executors, administrators and assigns may maintain a suit on the patent, notwithstanding the mistake. By section 4916 if a patentee is dead, without having assigned the patent, and there is occasion for a reissue, it shall be made to his executors or administrators. From a comparison of these sections it is made clear that a patent-right, like any other personal property, is understood by Congress to vest in the executors and administrators of the patentee, if he has died without having assigned it. It is really of no consequence whether they hold in trust for heirs or for next of kin, so long as they take the legal title.

It was argued that Congress may have intended to express by the word "heirs" that a patent should not be assets for the payment of debts. But they have not only not exempted patent-rights from being taken for the debts of the owners, but have required that they should be so taken by assignees in bankruptcy (Rev. Stat., § 5046); and the Supreme Court have failed to discover such an intent, for they hold that by due process in chancery a patent-right may be applied to such payment. Ager v. Murray, 105 U. S. 126. Indeed section 4898 is decisive of this question, for it expressly provides that the legal representatives of the patentee may assign. Even if this were a mere statutory power, the authority would be sufficient; but it is of course a recognition of a fact, and not a new grant of power.

Demurrer overruled.

FEDERAL JURISDICTION-STATE LAWS. UNITED STATES CIRCUIT COURT, DISTRICT OF INDIANA. FEBRUARY 26, 1884.*

HULL V. DILLS.

A bill of complaint having been filed by a ward against his guardian in the United States Circuit Court for Indiana, it was contended by the defense, that according to the laws of Indiana, in matters of probate, relief could be granted only by the courts in which the proceedings were had, and that these could not be made subject to any collateral proceedings. Held, that the equity courts of the United States are not affected by the restrictions laid by the several States upon their own equity courts.

*19 Fed. Rep. 957.

[blocks in formation]

Combs, Bell & Morris, for defendant.

WOODS, J. The bill, stated generally, charges that the defendant was appointed guardian of the complainant by the Probate Court of De Kalb county, Indiana, and that as such guardian, he wrongfully and fraudulently sold real estate of the complainant for less than its value, and afterward, in like manner, procured an order of the court for the investment of the proceeds of the sale in other lands, owned by the defendant, at and for a sum greatly exceeding the value of the land, and thereupon conveyed the land to the plaintiff, and procured the approval of the court to the conveyance, by concealing from the court the fact that the land belonged to the guardian himself; that the guardian had made false and fraudulent reports, and had been guilty of other official delinquencies specified (but which need not be particularized here); and that in October, 1878, the defendant filed with the court his resignation as guardian, concerning which the entry of record made at the time is of the tenor following, to wit: "Which resignation is accepted." plaintiff became of lawful age in December, 1882, and on the next day after attaining his majority executed and tendered to the defendant a reconveyance by quitclaim deed of said land, and demanded an accounting of said guardianship, all of which the defendant refused. The prayer of the bill is "to have the said record and proceedings examined in this court and corrected or revised; annulled, canceled, and set aside;" that the order authorizing such sale may be reviewed and wholly reversed; and that the plaintiff be restored to his rights as if the sale had not been made; and if this cannot be done, "that an account may be taken of the matters and things charged," etc., and for general relief.

That

The objections made to the bill is that it shows a case wherein relief should be sought, and can be granted only in the Circuit Court of De Kalb county, Indiana, the court which is clothed with probate powers, and in which the proceedings complained of were had.

In support of this view, counsel for the defendant insist, and the fact cannot be denied, that the Supreme Court of Indiana has repeatedly decided that the orders of the Probate Courts, whether final or interlocutory, are binding until set aside; that they cannot be attacked collaterally; and that they can be set aside or corrected only in the particular court which made them; that a bill in equity is a collateral attack, and cannot be maintained in any other court. Among the cases cited are Spaulding v. Baldwin, 31 Ind. 376; Barnes v. Bartlett, 47 id. 98; Holland v. State ex rel., 48 id. 391; Sanders v. Loy, 61 id. 298; Parsons v. Milford, 67 id. 489; Briscoe v. Johnson, 73 id. 573; Candy v. Hanmore, 76 id. 125; Jennison v. Hapgood, 7 Pick. 1; Paine v. Slone, 10 id. 75; Negley v. Gard, 20 Ohio, 310; Goodrich v. Thompson, 4 Day, 215; State v. Rolland, 23 Mo. 95; Short v. Johnson, 25 Ill. 489; Iverson v. Loberg, 26 id. 180; Freem. Judg., §§ 319a, 608.

Counsel for the complainant, on the contrary, contend, that notwithstanding the statutes which confer probate jurisdiction upon particular courts, courts of equity continue to have jurisdiction in such cases, and consequently that an original bill of review may be maintained in any court of general equity powers, State or National, which can obtain jurisdiction of the parties; and cite Bond v. Lockwood, 33 Ill. 212; Wickizer v. Cook, 85 id. 68; Fogarty v. Ream, 100 id.

366; Jones & C. Pr. 270, §6; Rorer Jud. Sales, 125, § 317; 2 Story Eq., § 1339.

Whatever may be the rule in and in respect to the State courts, the jurisdiction of the Federal courts, in such cases, if the parties be citizens of different States, seems to have been distinctly declared and upheld.

In Payne v. Hook, 7 Wall. 425, a case wherein the bill sought "to open the settlements with the Probate Court as fraudulent, and to cancel the receipt and transfer from the complainant to the administrator because obtained by false representations," the proposition was advanced "that a Federal court of chancery sitting in Missouri will not enforce demands against an administrator or executor, the State court, having general chancery powers, could not enforce similar demands." In response to this, the Supreme Court, by Davis, J., says: "If this position could be maintained, an important part of the jurisdiction conferred on the Federal courts by the Constitution and laws of Congress would be abrogated. But this objection to the jurisdiction of the Federal tribunals has been heretofore presented to this court and overruled."

"We have repeatedly held that the jurisdiction of the courts of the United States cannot be impaired by the laws of the States which prescribe the modes of redress in their courts, or which regulate the distribution of their judicial power.' If legal remedies are sometimes modified to suit the changes in the laws of the States, and the practice of their courts, it is not so with equitable. The equity jurisdiction conferred on the Federal courts is the same that the high court of chancery in England possesses; is subject to neither limitation nor restraint by State legislation; and is uniform throughout the different States of the Union. Hgde v. Stone, 20 How. 175; Union Bank v. Jolly's Admrs., 18 id. 503; Suydam v. Broadnax, 14 Pet. 67.' See also Fiske v. Hills, 11 Biss. 294; S. C., 12 Fed. Rep. 372; Cornett v. Williams, 20 Wall. 249.

This bill shows that the complainant is a citizen and resident of Illinois, and the respondent of Indiana, and except in the respect already considered, its sufficiency has not been questioned. The demurrer is therefore overruled..

UNITED STATES SUPREME COURT ABSTRACT.

STOCK-PLEDGEE-NO LIABILITY AS STOCKHOLDER. -It is well settled that one who allows himself to appear on the books of a National bank as an owner of its stock is liable to creditors as a shareholder, whether he be the absolute owner or a pledgee only, and that if a registered owner, acting in bad faith, transfers his stock in a failing bank to an irresponsible person, for the purpose of escaping liability, or if his transfer is colorable only, the transaction is void as to creditors. National Bank v. Case, 99 U. S. 628; Bowden v. Johnson, 107 id. 251. It is also undoubtedly true, that the beneficial owner of stock registered in the name of an irresponsible person may, under some circumstances, be liable to creditors as the real shareholder, but it has never, to our knowledge, been held that a mere pledgee of stock is chargeable where he is not registered as owner. Anderson v. Warehouse Co. Opinion by Waite, C. J. (See 24 Eng. Rep. 624.-ED.) [Decided April 21, 1884.]

EVIDENCE-TREASURY BOOKS TRANSCRIPT.- This suit involved the accounts of the navy department. The fourth auditor is charged by law with the duty of examining all accounts accruing in that department. Rev. Stat., § 277 subdivision fifth. He has certified under his hand that the paper offered in evidence "is

a transcript of the books and proceedings of the treasury department in account with" the purser whose bond is in suit, and the secretary of the treasury has certified, under the seal of the department, to the official character of the auditor, "and that full faith and credit are due to his official attestations." What more need be done to authenticate the transcript under the seal of the department we are at loss to determine. The certificate of the proper auditor is attached and his certificate attested by the secretary of the treasury under the seal of the department. The form of the certificates and the mode of affixing the seal correspond exactly with what appears in Smith v. United States, 5 Pet. 292, where it was held, more than half a century ago, that the seal affixed in this way was sufficient for the purposes of evidence under a statute, of which section 886 is a re-enactment. The transcript is certified by the auditor, and authenticated under the seal of the treasury department affixed by the secretary, its lawful custodian. The judgment is reversed and the cause remanded, with instructions to set aside the verdict and grant a new trial. United States v. Bell. Opinion by Waite, C. J. [Decided April 21, 1884.]

MARRIAGE-TENANCY BY CURTESY WIFE'S PROP ERTY NOT SUBJECT TO HUSBAND'S DEBTS.-It is the right of a married woman to any property, personal or real, belonging to her at the time of marriage, or acquired during marriage, which shall be as absolute as if she were unmarried, and shall not be subject to the disposal of her husband. It was the purpose of the statute to abolish this tenancy by the curtesy, or any other interest of the husband, in all her property, and to place her in regard to it in the condition of a feme sole. And it was this same property, and not part of it, no separate interest, or estate in it, which was exempted from liability for his debts. It would be a queer construction of the statute, looking at its manifest purpose, to hold that it meant, though her property shall never come under his control and he shall acquire no interest in it, and it shall never be liable for his debts, the use and possession, the rents and profits of it, may be made liable to his debts as long as he lives. "In the district the right of any married woman to any property, personal or real, belonging to her at the time of marriage, or acquired during marriage in any other way than by gift or conveyance from her husband, shall be as absolute as if she were unmarried, and shall not be subject to the disposal of her husband, nor be liable for his debts." We are of opinion that the statute (R. S., Dist. Columbia, § 727) intended to exempt all property, which came to the wife by any other mode than through the husband, from liability to seizure for his debts, without regard to the nature of the interest which the husband may have in it, or the time when it accrued, and that in regard to such debts, created after the passage of the law, no principle of law or morals is violated by the enactment. On the contrary, if we concede, as in the present case, that the husband had acquired a tenancy by the curtesy, in her property, before such enactment, it is eminently wise and just that no other person should afterward acquire such an interest in it as to disturb the joint possession of it, and turn the family resulting from the marriage out, that it may go to pay his debts. The authorities cited by counsel for appellee rather sustain, and certainly do not contradict, this view of the matter. In the case of Rose v. Sanderson, 38 Ill. 247, while the court holds that a statute, very much like the act of Congress relied on here, did not exempt from sale for the husband's debt his life interest in her real estate, which had become vested before the passage of the act, it is apparent, from the record, that the debt for which the writ of

attachment was levied on that interest,existed when the statute of exemption was passed. The case states explicitly that the act went into effect April 24, 1861, and the attachment was levied May 10, 1861, and the husband's right, either by the curtesy or for the wife's life, had vested long before. It might therefore have been held to impair the obligation of the plaintiff's contract if the act had been so construed as to exempt that interest from liability to sale for that debt. In the case of Stehman v. Huber, 21 Penn. St. 260, it was simply held that where, on a partition of an estate in in which the wife was a part owner, the husband advanced a considerable sum as owelty in her behalf, he thereby became interested in the property allotted to her and conveyed to her and to him jointly, and that the husband, by executing a conveyance of this interest to a third person, who conveyed it to the wife, could not thereby defeat the existing creditor's right to appropriate that interest to the payment of his debts. In the case of White v. Hildreth, on the other hand, there came before the Supreme Court of Vermont, for construction, a statute in regard to the debts of the husband very like the act of Congress. It enacted that the rents, issues and profits of the real estate of any married woman, and the interest of her husband in her right in any real estate, which belonged to her before marriage, or which she may have acquired by gift, grant, devise or inheritance during coverture, shall during coverture be exempt from attachment or levy of execution for the sole debts of her husband, * * * provided this act shall not affect any attachment or levy of execution already made. Compiled Stat. of Vt. of 1850, p. 403, § 15. In the case mentioned, 32 Vt. 265, the husband had built upon and improved the land of the wife, after which she rented it to her son, in whose hands the rent was attached by trustee process for the debt of the husband. But the court said: "The legal title to the land, with the supervening improvements and building, is still in the wife. It accrued during coverture. The rent reserved in the lease to her son, is the rent of the land she owns. The statute expressly exempts such rent from the hands of his creditors. This provision of the statute seems to answer what otherwise must have been a well-founded suggestion, viz., that though this money is payable to the wife of the defendant, still it is not the rent of the freehold which the husband held by virtue of the coverture and the birth of issue capable of inheriting, and is in contemplation of law entirely the husband's without invoking the wife as the meritorious cause." Here the court holds distinctly that this statute, which does not profess to abolish the tenancy by the curtesy, is still an answer to an attempt to subject the rents and profits to his debts, because it declares that the property shall be exempt from levy for his debts. Hitz v. Nat. Metropolitan Bank. Opinion by Miller, J. [Decided May 5, 1884.]

UNITED STATES CIRCUIT AND DISTRICT COURT ABSTRACT.*

LACHES-GOVERNMENT NOT CHARGEABLE WITHLIMITATION IN EQUITY-AFTER-ACQUIRED TITLESPECIFIC PERFORMANCE.-Time does not run against the United States, and public policy forbids that the negligence of the officers of an immense government like ours should be held to create laches on the part of the government, except probably as to third persons who are strangers to transactions as to which the negligence may occur. In United States v. Kirkpatrick, 9 Wheat. 720, the Supreme Court say: "The general

*19 Fed. Rep.

[ocr errors]

principle is that laches is not imputable to the government. The utmost vigilance would not save the public from the most serious losses if the doctrine of laches could be applied to its transactions. It would, in effect, work a repeal of all its securities." In United States v. Vanzandt, 11 Wheat. 190, the court say: "The neglect in the one case and the other imputes laches to the officer whose duty it was to perform the acts which the law required; but in a legal point of view, the rights of the government cannot be affected by these laches." "A claim of the United States is not released by the laches of the officer to whom the assertion of that claim was intrusted." Dox v. Postmaster-General, 1 Pet. 325. 'Statutes of limitation do not bind the United States unless it is specially named therein." Lindsey v. Lessee of Miller, 6 Pet. 666; United States v. Hoar, 2 Mason, 311. "The unauthorized act of the officer of the United States (in the matter of a claim for or against it) cannot bind the United States." Filor v. United States, 9 Wall. 49. Equity will not refuse to inforce an obligation merely because of the lapse of time, unless evidence has been lost, or the rights of third parties have become involved, or the personal relations between the parties have been so much altered as to change the essential character of the obligation. See the case of Etting v. Marx, 4 Hughes, 312; 4 Fed. Rep. 633, where the doctrine of limitation in equity is very elaborately discussed as to suits between private individuals. A party agreeing to transfer property which he does not own at the time cannot refuse to perform his contract after acquiring title. One who, by his own fault, is unable to perform a part of his contract, cannot upon that account resist a bill for the specific performance of the rest. To permit such an objection to prevail would be to violate the maxim that no man shall take advantage of his own wrong. See Fry Spec. Perf., § 294, citing Lord Eldon, who in speaking of one who had undertaken to convey a greater interest than he possessed, says: "For the purpose of this jurisdiction, the person contracting under these circumstances is bound by the assertion in his contract, and if the vendee chooses to take as much as he can have, he has a right to that, and the court will not hear the objection, by the vendor, that the purchaser cannot have the whole." See also Morss v. Elmendorf, 11 Paige, 287; Hatch v. Cobb, 4 Johns. Ch. 539; Kempshall v. Stone, 5 id. 193; Fray Spec. Perf., SS 554, 258. Cir. Ct., E. D. Virginia. United States v. City of Alexandria. Opinion by Hughes, J.

* * *

PATENT-LICENSE-SALE OF, TO SATISFY JUDGMENT. -A license to use a patented invention may, by a bill in equity, be subjected to sale for the payment of a judgment debt. Cir. Ct., E. D. Penusylvania, Feb. 11, 1884. Matthews v. Green. Opinion by Butler, J.

TRUST-REVOCATION-FAILURE TO EXERCISE.- A trust declared by testator during his life-time, with the privilege of revocation, will, if unrecalled, prevail over the title of a residuary legatee. Testator transferred stocks and bonds to L., upon trust to pay him the income while he lived, and after his death to transfer them to others, reserving the power however to revoke this disposition of the property at any time. He died, leaving the trusts unrevoked. Held, that the power of revocation died with him, and that upon his death the trusts became absolute. Cir. Ct., D. Vermont, March 20, 1884. Barlow v. Loomis. Opinion by Wheeler, J.

ASSIGNMENT FOR CREDITOR-IMPEACHING-BURDEN

OF PROOF.-A deed of assignment prima facie good may be impeached for circumstances connected with, and conduct of the insolvent at and about the time of the execution of it. In such cases the burden of proof is on the grantor or his beneficiaries under the assign

ment to show the validity of the deed. Dist. Ct., N. D. Mississippi, W. D., March 3, 1884. Estes v. Spain. Opinion by Hill, J.

TELEGRAPH COMPANIES RAILROAD IS POST-ROAD--ACT JULY 24, 1866- ERECTING LINES — EXCLUSIVE RIGHT.-A railroad is, under the statutes of the United States, a post-road, and accordingly the act of Congress of July 24, 1866, giving to all telegraph companies alike the right to construct, maintain, and operate lines along all post-roads of the United States, is paramount over any agreement made by a railroad company securing to a telegraph company the sole use of its line of road for its wires. This was decided by the Supreme Court in Pensacola Tel. Co. v. Western Union Tel. Co., 96 U. S. 1. It was not held in that case that a telegraph company could acquire a right of way over a railroad without the consent of the owner of the railroad, or even that the act gave to telegraph companies the power to acquire such a right of way by compulsory proceedings, upon due compensation to the owner; and the contrary was plainly intimated. But the act was considered and expounded as intended, and effectual, to deny to any one telegraph company the power to acquire any such easement in the lands of a railroad for telegraphic facilities as would exclude other companies from obtaining like privileges, and as a declaration by Congress of a policy in the interests of the public and of the government which was reasonable and lawful. Since that decision it has been adjudged in two cases in the Circuit Courts of the United States that a railroad company cannot grant to a telegraph company the exclusive right to establish a line over its right of way. Western Union Tel. Co. v. American Union Tel. Co., 9 Biss. 72; Western Union Tel. Co. v. Burlington & S. R. Co., 11 Fed. Rep. 1. See also Western Union Tel. Co. v. American Union Tel. Co., 65 Ga. 160. Whether an agreement of this kind would not be void as intended to strangle competition, and therefore as being in restraint of trade and obnoxious to public policy, irrespective of the act of Congress, is a question which it is not necessary to discuss; it suffices that such an agreement is void because contrary to the policy declared by Congress. Cir. Ct., S. D. New York, March 28, 1884. Western Union Tel. Co. v. Balt. & O. Tel. Co. Opinion by Wallace, J.

ASSIGNMENT FOR CREDITORS-RESERVING INTEREST TO ASSIGNOR-VOID.-An assignment for the benefit of creditors, under the laws of Texas, wherein the assignor has expressly reserved an interest to himself, to the exclusion of his creditors, is null, void, and of no effect. Lawrence v. Norton, 15 Fed. Rep. 853, followed. It seems to us, the following propositions are well taken, and can be equally supported on principle and authority. The assignment in favor of creditors, under the act of 1879, is a contract between the assignor and assignee, which while it may be aided by the law, must be taken and construed by the terms and provisions expressly stipulated therein. Donoho v. Fish, 58 Tex. 167; Keevil v. Donaldson, 20 Kans. 168. That when an assignment is made, under the third section of the act of 1879, any stipulation therein which is intended to hinder and delay non-consenting creditors must find warrant therefor in the law, or the assignment as to such creditors is null and void. Keevil v. Donaldson, supra; Lawrence v. Norton, supra; Bryan v. Sundberg, 5 Tex. 423. See also Jaffray v. McGehee, 107 U. S. 361; S. C., 2 Sup. Ct. Rep. 367. The assignment in this case, which is under the third section, provided: "And for said purposes the said Fred. Muller and A. Jacobs are hereby authorized and directed to take possession at once of the property above conveyed, and convert the same into cash as soon and upon the best terms possible for the best in

terest of our creditors. "This provision authorizes the assignees, in their discretion, to dispose of the assigned property on credit. See Moir v. Brown, 14 Barb. 39; Schufelt v. Abernethy, 2 Duer, 533; Rapalee v. Stewart, 27 N. Y. 311; Hutchinson v. Lord, 1 Wis. 286; Keep v. Sanderson, 2 id. 31. For other authorities see Bur. Assign., § 222. It is a badge of fraud. Carlton v. Baldwin, 22 Tex. 731; and see Bur. Assign., § 221. Such provision is not authorized by law, the said act of 1879 being silent as to the method of disposing of assigned property. The non-consenting creditors being compelled, under the law, to submit to a forced stay of execution until the consenting creditors are paid in full, it follows that a sale on credit, the same not being authorized by law, hinders and delays such non-consenting creditors beyond the sanction of the law and consequently defrauds him. It is urged that the assignee need not sell on credit, and unless he does the creditors are not hurt. This may be true, but the creditors are not obliged to await the event. The assignment placed it in the power and discretion of the assignee to prolong the execution and closing of the trust for an indefinite period. This was not only unauthorized by law, but was against the policy

of the law, for it cannot be denied that the policy of the law is to secure a speedy settlement of the trust and distribution of the assigned property. An assignment in favor of creditors which in effect authorizes the assignee to sell the property conveyed in a method not permitted by the statute, must be void, for contracts and conveyances in contravention of the terms or policy of statute will not be sanctioned. See Jaffray v. McGehee, supra. Cir. Ct., N. D. Texas. Feb., 1884. Opinion by Pardee, C. J.

VIRGINIA SUPREME COURT ABSTRACT.

Held,

EXECUTORS AND ADMINISTRATORS-LIABILITY FOR LOSSES.-(1) Among the assets which came into the hands of an administrator in 1875 were $6,000 of W. & O. Railroad bonds, worth at the time about $4,200, which were paying a good rate of interest. Two of the legatees repeatedly requested that these bonds should not be sold, they and the administrator thinking the bonds were likely to appreciate in value. The administrator held them until 1877, when by the sudden failure of the railroad they became worthless. the administor is not responsible for the loss. (2) Among the assets was a note of the same railroad company for $4,000, secured by a pledge of $8,000 of its bonds. The administrator demanded payment of this note several times, and was each time assured by the president of the road that it should be paid. The road was then paying its interest regularly. By its failure the sum was also lost. Held, that under the circumstances the administrator should not be held responsible for the loss. Without doubt courts of equity have been accustomed from the time of Lord Hardwicke down to the present moment to look with indulgence upon the acts of trustees and other fiduciaries, and have shown a manifest disinclination to hold them personally responsible for losses occurring in the management of the trust funds whenever it has appeared that the trustee or other fiduciary has acted in good faith, in the exercise of a fair discretion, and in the same manner in which he would probably have acted if the subject had been his own property. Ex parte Belchier, Amb. 219; Knight v. Lord Plymouth, 3 Atk. 480; Powell v. Evans, 5 Ves. 839; Thompson Brown, 4 Johns. Ch. 619; Elliott v. Carter, 9 Gratt. 548. And where there are no circumstances of suspicion, such as the failure to make out an inventory, or to have an appraisement of the estate, nor any evi

V.

dence of mala fides on the part of such fiduciaries, I think, to adopt the language of this court in Elliott v. Carter, supra, be "That they should treated with tenderness, and due caution should be taken not to hold them liable upon slight or uncertain grounds." WatSouthall's Admr v. Taylor, 14 Gratt. 274. kins v. Stewart. Opinion by Horton, J. [Decided Dec. 6, 1883.]

EVI

JUDICIAL SALE-JUDGMENT CREDITOR NOT PURCHASER-EQUITIES-RESULTING TRUST-PAROL DENCE.-In Cowardin v. Anderson, 8 Va. L. J. 31, we said: "It is well established by the repeated decisions of this court that a judgment creditor can acquire no better right to his debtor's estate than the latter himself has. The creditor takes the property or applies it to the satisfaction of his lien in subornation to all the equities which exist at the time in favor of third persons, and a court of chancery will limit the lien of the judgment to the actual interest the debtor has. The creditor is in no just sense treated as a purchaser, and has no equity whatever beyond what justly belongs to the debtor. Floyd v. Harding, 28 Gratt. 401; Borst v. Nalle, id. 423; Summers v. Darne, 31 id. 791." It is an established rule in equity that if one person buys an estate with the money of another, and takes the conveyance in his own name, a trust results by presumption of law in favor of him with whose money the purchase was made. And in such cases the trust may be established by parol proof; but to guard against the danger of perjury, and for the security of titles, the proof is required to be clear and distinct. Kane v. O'Conners, 8 Va. L. J. 77; Sugden on Vendors, 443; Bank of U. S. v. Carrington, 7 Leigh, 566; Boyd v. McLean, 1 Johns. Ch. 584; Botsford v. Barr, 2 id. 405; Phelps v. Seely, 22 Gratt. 573; Borst v. Nalle, 28 id. 423; Miller v. Blose, 30 id. 745. And if part only of the purchase money has been advanced the land will be charged pro tanto. Botsford v. Barr, supra; Morey v. Herrick, 18 Peun. St. 129; Kane v. O'Conners, supra. Sinclair v. Sinclair. Opinion by Lewis, J.

NEW JERSEY SUPREME COURT ABSTRACT,* NOVEMBER TERM, 1883.

ALLUVION-TITLE BY-BOUNDARY-AMBIGUITY IN GRANT. The increase of land adjacent to the seashore, derived from alluvial deposits, happening so gradually that the increase could not be observed while actually going on, although a visible increase took place from year to year, belongs to the owner of the land bounded upon the sea. Rex v. Lord Yarborough, 3 B. & C. 91; S. C., in H. of L., 5 Bing. 163; County of St. Clair v. Lovingston, 23 Wall. 46. In grants of lands lying along the seashore, the parties act with knowledge of the variety of changes to which all parts of the shore are subject. The grantee, by such a boundary, takes a freehold that shifts with the changes that take place, and is obliged to accept the situation of his boundary by the gradual changes to which the shore is subject. He is subject to loss by the same means that may add to his territory; and as he is without remedy for his loss, so is he entitled to the gain which may arise from alluvial formations, and he will, in such case, hold by the same boundary, including the accumulated soil. Tyler on Bound. 40; Phear on Waters, 12-43; 3 Kent, 435; New Orleans v. United States, 10 Pet. 662--717. A grant of lands with a boundary along storm-tide mark of the Atlantic ocean," will leave in the grantee that space of the beach which lies between the ordinary high water and the fast land, and is washed over by unusual tides so *Appearing in 16 Vroom's (45 N. J. Law) Reports.

« السابقةمتابعة »