Sa hae iS eae pers x2 etre sets ee LP PP eee ress ees le AIS brary i L Gornell Law School “ Ci It Unit ity Library KF 399. ee ‘guna A manual o' A MANUAL EQUITY JURISPRUDENCE, FOR PRACTITIONERS AND STUDENTS, FOUNDED ON THE WORKS OF STORY, SPENCE, AND OTHER WRITERS, AND ON MORE THAN A THOUSAND SUBSEQUENT CASES: COMPRISING THE FUNDAMENTAL PRINCIPLES, AND THE POINTS OF EQUITY USUALLY OCCURRING IN GENERAL PRACTICE. By JOSIAH W. SMITH, BCL. OC, JUDGE OF COUNTY COURTS, EDITOR OF “'FEARNE’S CONTINGENT REMAINDERS,” AND MITFORD’S ‘‘CHAN- CERY PLEADINGS,” AUTHOR OF “A COMPENDIUM OF THE LAW OF REAL AND PERSONAL PROPERTY,” “A MANUAL OF COMMON LAW,” AND “A MANUAL OF BANKRUPTCY ;” AND ONE OF THE CONSOLIDATORS OF THE CHAN- CERY ORDERS. Second American Edition. REVISED AND ENLARGED WITH NOTES AND REFERENCES, By EDWARD CHASE INGERSOLL, OF THE WASHINGTON BAR, ONE OF THE COMMISSIONERS TO REVISE THE LAWS OF THE DISTRICT OF COLUMBIA, AND EDITOR OF ‘“‘SMITH’S MANUAL OF COMMON Law.” FROM THE TWELFTH LONDON EDITION. WASHINGTON CITY: W. H. & O. H. MORRISON, LAW BOOKSELLERS AND PUBLISHERS. 1878. l3aiza Entered according to Act of Congress in the year 1878, By W. H. & 0. H. MORRISON, In the Office of the Librarian of Congress, at Washington, D. C. SHERMAN & CO., PRINTERS, 8. W. CORNER SEVENTH AND CHERRY STREETS, PHILADELPHIA. TO THE HONORABLE ANDREW WYLIE, ONE OF THE JUSTICES OF THE SUPREME COURT OF THE DISTRICT OF COLUMBIA, This American Edition, OF A WORK INTENDED TO FACILITATE A KNOWLEDGE OF THAT JURISPRUDENCE WHICH HAS BEEN ADMINISTERED BY HIS HONOR, SO LONG AND SO ABLY, IS, BY PERMISSION, RESPECTFULLY INSCRIBED, BY THE EDITOR. PREFACE TO THE SECOND AMERICAN EDITION.* THE general demand for some book which should give a succinct yet comprehensive view of the leading principles of Equity Jurisprudence with sufficient cita- tions of authority to be of value to the practitioner, and sufficiently compact in expression to make it a more useful and desirable text-book for students than the larger treatises, has induced the editor to undertake the preparation of this edition of Smith’s Manual of Equity. The author’s rare power of condensation and logical skill in the simple arrangement and exhaustive divi- sion of complicated subjects, have made his works deservedly popular in England. The scopé of the Manual is best exhibited in the * The first American edition was a reprint of the eighth London edition, without American notes.—Eprqor. vi PREFACE TO THE SECOND AMERICAN EDITION. learned author’s preface (infra). It is founded prin- cipally upon the Commentaries on Equity Jurispru- dence of the late Mr. Justice Story, whose work has been justly characterized by his annotator (12th edition) as “a wonderful exposition of the Jurisprudence of Equity.” It may be said to bear the same relation to the Commentaries that they bear to the Treatises and Reports on which they are founded, and to exhibit in convenient form an accurate and succinct view of Equity. While the leading principles of Equity Jurispru- dence are substantially the same in this country and in England, yet it appears their application has been varied, modified, and enlarged by the Courts of this country. And this results, among other causes, from the diversity in the prevailing laws of tenure, political divisions, legislative enactments, and public policy. It has been the aim of the editor to exhibit these differences where they occur, and in some degree to supplement the work of the author by an adaptation of the American doctrine where there has been essen- tial departure from the English ; condensing the notes as far as practicable to conform to the plan of the original work, and referring the student to the standard treatises, text-books, and well-considered’ American cases for the fuller discussion of the “principles and PREFACE TO THE SECOND AMERICAN EDITION. vii the nicer distinctions drawn. Generally, where the author has referred to the English text-books, appro- priate references have been made to the American books upon the same subjects, and it is believed sufficient American cases have been cited in the notes to enhance the value of the Manual to the practitioner. The text of the twelfth London edition (1878) has been used in this work, and the English cases (hereto- fore incorporated in the body of the page) have been placed at the foot with the editor’s notes. The editor is indebted in the preparation of the notes, among others referred to therein, to the admirable treatises, Perry on Trusts, Bigelow on Fraud, Jones on Mortgages, Schouler’s Domestic Relations, to Sharswood’s edition of Adams’s Equity, and to the notes of the American editors of White and Tudor’s Leading Cases in Equity (4th Am. ed.). E. C. 1. Wasuineton, D. C., August, 1878. PREFACE TO THE TWELFTH EDITION. For this, as for the fifth and subsequent editions, the writer has searched the authorized Reports pub- lished since the preceding edition, and has added such further points to be found in those Reports as appeared to-him to be requisite to be noticed in a book of this kind, as well as references to new cases in support of points previously inserted, and references to the new Statutes.* This edition comprises more than a thousand cases, coming within the scope of the Manual, which have been decided since the death of Mr. Justice Story and of Mr. Spence, together with a few earlier cases. For * His very learned friend, Mr. O. D. Tudor, the author of the “Leading Cases in Equity ” (now in the fifth edition), and of other well-known and highly valuable works, kindly perused the proof- sheets of the eighth edition of this Manual. x PREFACE TO THE TWELFTH EDITION. the rest of the earlier cases, the reader is referred, as before, to the works of Story, Spence, and other writers, on which the Manual purports to be founded. The “ Act to confer on the County Courts a Limited Jurisdiction in Equity ” (28 and 29 Vict. c. 99), called for no notice in the present work, as it merely gave those Courts the power of administering a large portion of Equity Jurisprudence, without affecting any part of that Jurisprudence at all. | It is obvious that the book must now be as appli- cable and useful in Equity cases in the County Courts as elsewhere. As to the alterations made by the Judicature Acts, the reader is referred to page 10, infra. J. W.S. December, 1877. PREFACE TO THE THIRD EDITION. Tuts edition is founded on the learned and very valuable Treatise on “The Equitable Jurisdiction of the Court of Chancery,” by the late George Spence, Esq., Q.C., as well as on the celebrated work on which the preceding editions were founded. The second volume of Mr. Spence’s work (published in the year 1849) contains upwards of 900 pages of Equity Jurisprudence, of which the writer of the Manual has, in this edition, availed himself in the same way as he had previously made use of the work of Mr. Justice Story. PREFACE TO THE SECOND EDITION. THE writer of these pages, in publishing the first edition, was under no apprehension that a work an- swering to the title of the present little book would be deemed wnnecessary. On the contrary, he was not aware of the existence of any book purporting to give a succinct yet comprehensive view of the leading prin- ciples of Equity Jurisprudence; and he believed that the want of a book of that description was greatly felt by students, and indeed by many practitioners in each branch of the profession. For the student labors under great disadvantages when he enters upon the perusal 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. And the practitioner often stands in need of a body of xiv PREFACE TO THE SECOND EDITION. points and principles, well fixed in his mind, as his constant guide and aid amidst the rapid occasions of daily practice; and yet it is impossible for him to be- come 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. The Manual is founded on the “Commentaries on Equity Jurisprudence” of the late Joseph Story, LL.D., one of the justices of the Supreme Court of the United States; and it is of a semi-original char- acter, bearing the same relation to the Commentaries as the Commentaries bear to the Treatises and Reports on which they are founded. The division of the subject is original. And although many passages are mere ex- tracts, yet the selection of such passages as expressed in the fewest words the pith of whole sections, or that view of a subject which seemed to be the more correct, involved considerable deliberation and discrimination. . And, taking the Manual as a whole, there has been the same process of analyzing, arranging, digesting, defining, distinguishing, deducing, qualifying, and com- menting as in the generality of legal treatises; and the reader will scarcely suppose the amount of close con- sideration which has been bestowed upon so small a book. As the learned Judge seems to have availed himself PREFACE TO THE SECOND EDITION. XV of most of the Treatises, as well as of the Reports, in the composition of his Commentaries, there appeared to be no necessity, in general, for the writer’s consulting other works besides the Commentaries, while engaged upon the Manual, unless he had designed to enter more into detail. At the same time he has written under the light derived from the previous perusal of other works. And he has noticed several recent enactments, which, as not applicable to America, the learned Judge has omitted. With regard to the principle of selection, the writer has endeavored to collect together, under appropriate heads, the points usually occurring, and necessary to be accurately known and constantly borne in mind by every chancery and conveyancing counsel, and by every solicitor; and for that purpose he has- labored to extract and mould into a concise and perspicuous form the essence of the Commentaries, which comprise upwards of 1700 pages; omitting points of law in some instances, and such cases in Equity as are of a peculiar nature and not likely to occur again ; and also omitting, except where it seemed advisable to use them as ex- amples, such cases as are of so simple and obvious a character, that the decisions respecting them embody nothing more than so plain and necessary an applica- tion of points and principles stated in the work, that xvi PREFACE TO THE SECOND EDITION. it would be sure to suggest itself at once, without va- riation, to the minds of different individuals. A host of English treatises and cases are cited by the learned Judge and author, exclusively of the American decisions. The points comprised in the fol- lowing pages are those in support of which English authorities are cited. The want of references to the authorities themselves, may seem, at first sight, to be a strong ground of objec- tion in the eyes of those who do not possess the Com- mentaries. But, in reality, it is not so. For the in- sertion of those references would have doubled the bulk and price of the Manual; and it is rarely necessary or advisable for the student to consume his time by refer- ring to the authorities; and with respect to those who are engaged in practice, the earlier editions of the Com- mentaries contain almost all the sections referred to in these pages, numbered in the same manner ; although the last, that is, the fourth edition, is the edition of the Commentaries from which the present edition of the Manual has been prepared for the press. The writer has generally prefixed the word “see” to the references, where he has interspersed original matter, or has modified, in point of substance, the statements he has taken from the Commentaries, with reference to cases contained in other passages, or other- PREFACE TO THE SECOND EDITION. xvii wise ; or where he has deduced, rather than abstracted, the points from a passage in the Commentaries; or where he has blended together, for the sake of brevity, precision, or otherwise, the ideas contained in two or more passages; or where he has expressed his own views, or has laid down original propositions, but has referred to passages in the Commentaries in support of such views or propositions. For those paragraphs to which no reference is added, he alone is responsible. CONTENTS. INTRODUCTION. Secr. —Of the Nature of Equity Jurisprudence, and the Extent of Equity Jurisdiction, . Il.— Of the General Effect of the Judicature das, as regards Equity Jurisdiction and Jurisprudence, TII.—Of the General Maxims ¥ eee ee dence, . IV.—Of the Division of Biuite: : TITLE I. Of Remedial Equity. SPECIFICALLY SO TERMED. Cap. I.—Or AccrpEnt, II.—Or Mistake, ‘ JIL—Or Actuau Fravp, . IV.—Or Constructive Fravp, TITLE II. Of Executive Equity. Cuap. l—Or Lrcactes AND Portions, . II.—Or Donations Mortis Causa, PAGE 10 12 33 37 44, 54 68 107 113 XX CONTENTS, JIJ.—Or Express Private Trusts, EVIDENCED BY somME WrittEN DocuMENT, IV.—Or Express CHARITABLE TRUSTS, . V.—Or ImpLiepD TRUSTS, VI—Or Constructive TRusTs, VIL—Or TRUSTEES AND OTHERS STANDING IN A Fr DUCIARY RELATION, VIII.—Or THE SpeciFic PERFORMANCE OF Renae. MENTS AND DUTIES NOT ARISING FROM TRUSTS, . TITLE II. Of Adjustive Equity. Cuap. L—Or Account IN GENERAL, II.—Or ADMINISTRATION, IJI.—Or MortGaGEs, PLEDGES, AND ass Secr. 1.—Of Legal Mortgages of Real Property, 2.— Of Equitable Mortgages, 3.— Of Mortgages and oe Besonal Pr ‘op- erty, 4.—Of Liens, . ‘ IV.—Or APPORTIONMENT AND Ciaenes, V.—Or PARTNERSHIP, 3 . VI—OF cERTAIN SPECIAL Anaceon airs IN THE CasE oF DEBTORS AND CREDITORS, Sect. 1.—Of the Marshalling of Securities; 2.— Of the Mutual Right to the Benefit of eee: i ties between a Creditor and Sureties ; and of the Release of Sureties, 3.—Of Set-off or Counter-claim, VIIL—Or certain MIscELLANEOUS CASES OF Ke COUNT, : VITI—Or DAMAGES AND Certctencivney: 3 PAGE 116 141 146 166 175 206 243 248 274 274 312 315 319 322 829 3385 335 336 339 342 344 . CONTENTS. IX.—Or Exection, . ‘ . : : ‘ 3 X.—Or SatTIsFACTION, . : . Xi—Or Partition; oF Senncanenae ¢ OF Boun- DARIES; AND OF ASSIGNMENT OF DowEnr, . Srcr. 1.—Of Parken : ‘ 2.—Of the Settlement of Bowkdanies, s . 3.—Of the Assignment of Dower, . : ; TITLE IV. OF Protective Equity. IRRESPECTIVE OF DISABILITY. Cuap. I.—Or Protection From Litigation on Ingury, AFFORDED BY THE CANCELLING, DELIVER- ING UP, AND SECURING OF DocUMENTs, . Il—Or Protection FRoM LITIGATION RESPECT- ING THE PROPERTY OF ANOTHER BY — oF INTERPLEADER, F F : III.—Or PRotEcTION FROM REPEATED OR RENEWED LITIGATION, AFFORDED By DECREES UPON Brits oF PEACE OR PROCEEDINGS TO ES- TABLISH WILLS, . : z j é ; Sect. 1—Of Bills of Peace, . ; ‘ ‘ 2.—Of Proceedings to Establish Wills, é IV.—Or Protection rrom Loss or Insury By In- JUNCTION, . ‘ ‘ , V.—Or PROTECTION FROM Anorsnn’ S- deci MENT, BY THE WRIT oF Nz ExeEat Reeno, . VI.—OF THE PROTECTION OF PROPERTY, BY TAKING AWAY THE PossEssION OR RECEIPT THERE- OF, OR BY REQUIRING SECURITY, XX1 PAGE 349 357 365 365 368 369 378 378 382 382 384 386 397 399 XXxii CONTENTS. TITLE V. OF Protective Equity. IN FAVOR OF PERSONS UNDER DISABILITY.(a) Cuap. L—Or INFANTS, Il—Or Marriep WomEN, . Sect. 1.—The Powers which Husband apa Wife have, in Equity, of Contracting with, and Giving and Granting to, each other, . ‘ 2.—Pin-money and Paraphernalia, 3.—The Wife's Separate Estate, 4—The Wife's Equity to a Settlement or Meaty tenance out of her own Property, 5.—Some Miscellaneous Points, TITLE VI. Of Auxiliary Equity. Cuap. l—Or a Discovery IN AID oF A Suit or DE- FENCE IN ANOTHER COURT, Il—Or THE TAKING AND PRESERVING OF Tesrr- MONY IN AID oF A Suit oR DEFENCE IN ANOTHER CouRT, APPENDIX. 31 anv 32 Vict. c. 40, 39 anp 40 Vict. c. 17, 30 anp 31 Vict. c. 48, 36 anD 37 Vict. c. 66, PAGE 405 417 418 421 423 447 458 463 468 472, 477 482 486 (a) Some observations are made on transactions with persons of unsound mind in the chapter on Actual Fraud. But the gene- ral subject of persons of unsound mind does not properly form part of Equity Jurisprudence, and therefore is omitted in this edition. TABLE OF CASES. (a)! The figures refer to the paragraphs, and not to the pages, except where otherwise indicated. A. Abbott, Anderson v. 681, 689, 823 v. Sworder, 122 Aberaman Ironworks v. Wick- ens, 415 Ackroyd v. Smithson, 295 Acraman v. Corbett, 183. Acworth, Coutts v. 200, 681. Addison, Cook +. 363 v. Cox, 436 Adsetis v. Hives, 133 Advocate-General of Bengal, Lyons (Mayor of) v. 276 Agar v. Fairfax, 715 Agra Bank, Ex parte, 436 v. Barry, 534 Airey v. Hall, 421 Aldam, Jarratt v.147 Alderson v. White, 506 Aldrich v. Cooper, 493 Aleyn v. Belchier, 203 Alford, Attorney-General v. 358 Allan v. Gott, 477 Allen v. Bonnett, 183 “Dewey v. 345 v. Hammond, 87 Lacon v. 592 Smith v. 762 Alloway v. Braine, 33 Allsopp v. Wheatcroft, 141 Alston v. Mundford, 493 Alt v. Alt, 450 Alton M. and F. Ins. Buckmaster, 720 Alton v. Harrison, 183 Ames v. Clark, 238 Amherst Bank, Lathrop v. 480 Amicable Assurance Office, Pear- son v. 421. Amis v, Witt, 220 Co. v. (a) This comprises more than 1050 cases from the authorized Reports published during the last twenty-three years, with a few earlier cases. For the rest of the earlier cases the reader is referred to the works of Story, SPENCE, and others, on which this Manual’ purports to be founded. _ | The American cases cited by the editor have been incorporated ” jiesthie table, XXIV Amis, Witt v. 220 Anderson v. Abbott, 681, 689, 823 v. Elsworth, 200 ~ Andrews, Sherwood v. 421 v. Sparhawk, 263 Angle, Ex parte, 371 Annesley, Macleod v. 352 Anstey, Stroughill v. 263, 379 Arkwright, Daniel v. 89 Armstrong, Walker v. 89 Arthur, Hotten v. 774 Ashbee, Kempson v. 149, 150 Ashburner, Fletcher v. 47, 409 Ashford, Squires v. 883 Ashton, Ion v. 477, 480 Ashton’s Charity, Re, 277 Askey, Birds v. (No. 2), 498 Astor v. Wells, 190 Astor’s Ex’rs., Langdon »v. 704 Atkinson, In re, 4389 v. Smith, 196, 574 Atlantic Bank v. Harris, 187 Atterbury v. Wallis, 187, 190 Attorney-General v. Alford, 358 v. Beverly (Corp. of ), 277, 278 v. Chesterfield (Earl of ), 465 v. Davey, 278 ». Greenhill, 285 Jauncy v. 496 v. Leicester (Corp. of ), 372 Magdalen College v. 278 Merchant Tailors’ Company v. 277 v. Trin, Coll. Cam- bridge, 277 v. Wilkins, 34 Attwood, Lloyd »v. 193 Atwell, Reese River Silver Min- ing Company v. 183 Auldjo, Wallace v. 889 Austin, Mildred v, 555 Ayerst v. Jenkins, 732 TABLE OF CASES. Ayles v. Cox, 424 . Aylesford (Earl of) v. Morris, 168, 171 Aylward, Dolphin v. 193 B. Babcock, Corn Ex. Ins, Co. ». 856 B— v. W , 424, 725, 727 Ww. v. 424, 725, 727 Baddeley, Jennings v. 640 Porter v. 359 Bagot v. Bagot, 480, 764, 765 Bagshaw, Evans v. 718 v. Winter, 883, 884 Bagster v. Fackerell, 300 Bailey’s Settlement, In re, 216 Baillie v. Baillie, 56 Bain v. Brown, 155 Bainbrigge, Moss v. 155 Baines, Smee v. 661 Baker v. Bradley, 149 v. Gray, 530 v. Monk, 123, 124. v. Read, 33 Reeves v. 233 Thornborough, »v. 339 Baldwin, Fisher v.661 — Baltimore (Lord), Penn v. 54 Balto. & Ohio R. R., Marshall v. 142 Bank of Alexandria v. Lynn, 424 < Bank of Hindustan, etc., In re, Ex parte Smith, 616 London v. Tyrrell, 155 160 New Orleans v. Torry, 160 Potomac, McLoughlin v. 183 Tyrrell v. 155 160 United States, Etting v. 116 TABLE OF CASES. Bank of the United States »v. Daniel, 82 Whitehaven, Dawson v. 555 Banks, Lloyd v. 436 Barber, Kimber v. 160 Bardwell v. Bardwell, 305 Barfield v. Loughborough, 646 Baring, Trail v. 1124 Barker v. Barker, 621 Barker, Parker v. 744 Barling v. Bishop, 183 Barlow, Bowen v. 585 Broadbent v. 190 Barnard v. Ford, 875 Barnes v. Bond, 625 v. Wood, 187 Barnwell v. Iremonger, 475 Barr’s Trust, In re, 436 Barrett, Box v. 695 v. Hartley, 345, 365 Saltmarsh v. 294 Waller v. 383 Barrow v. Barrow, 871 Wolterbeek ‘v. 89 Barrs v. Fewkes, 233 Barry, Agra Bank »v, 534 v. Croskey, 112a v. Stevens, 454 Bartlett v. Bartlett, 436 Barton, Beckton v. 708 v. Vanheythuysen, 183, 193. Barwell v. Barwell, 33 Baseley, Huguenin v. 148, 200 Bascomb v. Beckwith, 424 Basset v. Nosworthy, 34, 338, 376 Bate v. Hooper, 359 Rhodes v. 148 Bates, Blackett v. 441 Bates’s Case, 429 Batstone v. Salter, 313 Baud ». Fardell, 351 Baxter v. West, 640 Bayley, Williams v. 131 Baylis, Chowne v. 435 Bayspoole v. Collins, 196 XXV Beadel, Ormes v. 424, 441 Beadon, Bridge v. 436 Beak v. Beak, Beak’s Estate, In re, 220 Beak’s Estate, In re, Beak v. Beak, 220 ‘ Beal, Phillips v. (No. 2), 387 Beal v. Symonds, 591 Beatty v. Clark, 79 Beaumont v. Oliveira, 496 Beck, Sterne v. 674 Beckton v. Barton, 708 Beckwith, Bascomb »v. 424 Beckwith, Otis v. 421 Beech v. Keep, 421 Beecher v. Major, 313 Beevor v. Luck, 554 Beioley v. Carter, 424 Belcher, Hunter v. 460 Belchier, Aleyn v. 203 Bell v. Carter, 509 v. Holtby, 424 Mortimer v. 424 Wilson v. 808 Belmont, Frost v. 142 Bennett v. Wyndham, 357 Bennett, Eaton v. 91 v. Lytton, 383 Benson, Pearson v. 154 Bentley v. Craven, 160 v. Mackay, 81 Benwell v. Inns, 141 Berdoe v. Dawson, 149 Bergen, Staat v. 333 Berham, Taylor v. 409 Bernard v. Minshull, 235 Berridge, Nesbitt v. 169 Berrington, Rees v. 164 Bessey v. Windham, 183 Bethell v. Green, 475 Betjemann, Dowling v. 405 Betton’s Trust Estate, In re, 574 Beverly (Corporation of), At- torney-General v. 277, 278 Beverly, Peters v. 47 Bewicke, Manby v. 128 Beynon v. Cook, 169 XXVI Bibby, Hodgson »v. 33 v. Thompson (No. 1), 233 Biddle v. Jackson, 816 Bigelow v. Comegys, 133 Bingham, Bleeker v. 823 Bird, In re, Oriental Commercial Bank »v. Savin, 357 Birds v. Askey (No. 2), 498 Birkley v. Presgrave, 636 Biron v. Mount, 250 Bishop, Cox v. 438 Obee v. 462 Bishopp, Barling v. 183 Blackburn, Byne v. 233 Blackett v. Bates, 441 Blagrave, Powys v. 763 v. Routh, 33 Blaiklock v. Grindle, 686 Blakeway, Steward v. 647 Blandy v. Widmore, 51, 316 Blandheir v. Moore, 785 Blatchford v. Woolley, 856, 857 Bleeker v. Bingham, 823 Blest v. Brown, 164 Bloodgood, Kane v. 33 Bloxham, South v, 494 Bloye’s Trust, In re, 154 Boardman, Phillips v. 204 Bold v. Hutchinson, 95 Bolton, Ramshire v. 1124 Bonany y Gurety, Larios v. 451 Bond, Barnes v. 625 v. England, 479 Bone, Dilrow v. 421 v. Pollard, 313 Bonnett, Allen v. 183 Bonser v. Kinnear, 233 Boone v. Chiles, 33, 34 Booth v. Turle, 179 Borthoud, Sacia v. 192 Bostock v. Floyer, 357 Boston Marine Ins. Co., Graves v. Bosville, Glenorchy (Lord) ». 30, 89, 236 Bott v. Smith, 183 Boulter, In re, Ex parte Na- tional Provincial Bank, 89 TABLE OF CASES. Boulton, Ex parte, 436 Bourne, Wills v. 496 Bouts v. Ellis, 220 Bouverie, Kensington (Lord) v. 629 Boynton v. Hubbard, 136 Bowen v. Barlow, 585 Bower, Crosskill v. 365 Bowes, Strathmore (Countess of ), vi Bowring, Long v. 453 Box v. Barrett, 695 Boyle, Hill v. 431 Boys v. Boys, 359 Boyse v. Rossborough, 130, 131 754 Bradford (Earl of) v. Romney, (Earl of ), 89 Bradford v. Union Bank, 89 Bradley, Baker v. 149 Bradshaw, Salter v. 169 Bradwell v. Catchpole, 372 Braine, Alloway v. 33 Brant’s Will, 477 Brashear v. West, 435 Brashier v. Gratz, 413 Braybroke v. Inskip, 585 Bremridge, Evans v. 658 Brennan, Strange v. 155 Brereton, Drosier v. 352 . Brice v. Stokes, 348, 368 Bridge v. Beadon, 436 v. Bridge, 421 Briggs v. Jones, 535 Langdale (Lady) v. 479 v. Penny, 233, 235, 287 Bright v. Larcher, 477 (No. 2), 33, 476 v. Legerton, 33 ° e British Mutual Investment Com- pany v. Smart, 597 Britten, Green v. 830 Brittlebank v. Goodwin, 462 Broadbent v. Barlow, 190 Broadmead, Dilkes v. 487 Brock, Probst v. 539 Broderick’s Will, 105 TABLE OF CASES. Brocklehurst, Horton v. (No. 2), 366 Bromley v. Brunton, 220 v. Smith, 169 Brooke, In re, Brooke v. Rooke, 804 v. Haymes, 89 v. Mostyn (Lord), 88 v. Rooke, In re, Brooke, 304 Brooking, Francis v. 883 Brooks, Harris v. 164 Farnham v. 162 Brotheridge, Lechmere v. 848, 850 Broughton v. Broughton, 345 v. Hutt, 81 Jennings v. 112 Broun v. Kennedy, 93, 148, 153 Brown, Bain v. 155 Brown, Blest v. 164 : v. Brown, 689 v. Gellatly, 359 Gillian ». 712 v. Leach, 112 Malins v. 448 Shepard v. 454 v. Tanner, 436 Brown’s Trusts, In re, 436 Browne, Greville v. 304 v. Savage, 436 Brownson v. Lawrance, 475 Brumridge v. Brumridge, 369 Brunton, Bromley v. 220 Bubb, Pride v. 849 v. Yelverton, Ex parte Hastings, 768 Buccleuch (Duke of ) v. Metro- politan Board of Works, 440 Buchanan, Fleming v. 475 v. Harrison, 295,-300 Buck, Vaughan v. 883 Buckmaster, Alton M. and F. Ins. Co. v. 720 Hamilton v. 424 Budge v. Gummow, 352 Buller v. Plunkett, 436 Bulteel, Cavander v. 187, 190 XXVilL Bunny, Shaw v. 545 Burdick v. Garrick, 462 Burke, Whiting v. 634 Burkham, Wiggins v. 457 Burn v. Carvalho, 435 Kemp »v. 400 Burnham v. Kempton, 770 Burrow, Tucker ». 313 Burrows, Keith v. 53 Burt, Thurman ». 131 Burton, Maxfield v. 187, 190 Bury v. Oppenheim, 149 Buss, Pledge v. 655 Butler v. Cumpston, 856 Byne v. Blackburn, 233 Cc. Caballero v. Henty, 424 Camm, Goulder v. 830 Campbell v. Campbell, 704 v. Ingilby, 67 Campbell’s Trusts, In re, 341 Carew, Clive v. 856 v. Cooper, 429 Carew’s Estate, Re, 178 Carpmael v. Powis, 87 Carr v. Living (No. 2), 808 Carr’s Trusts, In re, 880 Carrington, Evans v. 898-900 Carron Company, Strainton ». 664 Carter, Beioley v. 424 Bell v. 509 v. Carter, 34, 535 v. Wake, 605, 612 Cartwright, Thompson v. 190 Carvalho, Burn »v. 435 Caspell v. Dubois, 149 Castle v. Castle, 233 v. Wilkinson, 416 Catchpole, Bradwell v. 372 Cathcart v. Robinson, 424 Caton v. Rideout, 855 Catt v. Tourle, 141 Cavander v. Bulteel, 187, 190 Cavendish v. Geaves, 661 XXVill Cecil, Webster v. 424 Challis, Rogers v. 451 Chambers v. Crabbe, 149 ». Goldwin, 804 Chaplin v. Young (No. 2), 365 Chapman, Fitzgerald v. 900 Charlesworth v. Jennings, 112a Charlton v. West, 704 Charnley, Woodford v. 421 Chartered Bank of India, etc., v. Henderson, 439 Chauntler’s Claim, In re Hasel- foot’s Estate, 604 Cheese, Tench v. 467, 477 Cheeseborongh, Cordingley v.415 Cherrill, Smith v. 183 Chertsey Market, In re, 371 Chesterfield (Earl of ), Attorney- General v. 465 v. Janssen, 165 Chew et al., Gaines et ux. v. 105 Chichester, Coventry v. 704 (Lord) v. Coventry, 704, 706 Child v. Mann, 744 Phipps v. 661 Childs, Trist v. 142 Chiles, Boone v. 33, 34 Chorlton, Newton v. 655 Chowne v. Baylis, 435 Chubb ». Stretch, 856 Churchill v. Churchill, 681 Clark, Ames v. 238 Beatty v. 79 v. Clark, 475 Cornish v. 183 v. Fergusson, 771 v. Leach, 639 v. Malpas, 123 Clark’s Ex’rs., Russell ». 12 Clarke, Fenwick v. 355 v. Franklin, 299 v. Hilton, 301 Parker v. 581 Clarkson, Tildesley v. 424 Clegg v. Edmonson, 33, 333 v. Rowland, 383 Clements, Wilkinson v. 424 TABLE OF CASES. Clemow, Francis v. 304 v. Geach, 384 Clendinen, Hitchcock v. 890 Clifton, Wintour v. 681, 682, 690 Clive v. Carew, 856 Coburn, Parker v. 712 Cochrane v. Willis, 87, 424 Cockell v. Taylor, 123 Cockerell, Munch ». 371 Stuart v. 436 Codrington v. Lindsay, 689 Coenen, Taylor v. 183 Cogan v. Duffield, 89 Cohen, Onions v. 725 Coke, Prees v. 158 Coole v. Willard, 712 Coleman, Imperial Mercantile Credit Association v. 333 Coles v. Pilkington, 447 Collier v. McBean, 424 Collins, Bayspoole v. 196 Eddleston v. 574 Turner v. 149, 150 Colshead, Wall v. 300 Colthurst, Tomkins v. 475 Colyer v. Finch, 34, 585 Comegys, Bigelow v. 133 Commissioners of Public Works v. Harby, 177 Comptoir d’Escompte de Paris, Henderson v. 439 Comptoir d’Escompte de Paris, Rodger v. 439 Comstock v. Johnson, 39 Conron v. Conron, 305 Consequa v. Willings, 85 Consolidated Investment and In- surance Co, v. Riley, 535 Conyers, Wake v. 720 Cook v. Addison, 363 Beynon v. 169 v. Gregson, 469 Miller v. 40, 168, 170 v. Rosslyn (Earl of ), 741 Hickman ». 720 v. Tullis, 489 Cooke, Jeans x. 314 TABLE OF CASES. Cooke v. Lamotte, 200 Vorley v. 112 a Somerset (Duke of ) v. Coombs, Pain v. 448 Cooper, Aldrich, v. 493 Carew v. 429 v. Cooper, 681 Haymes v. 617 v. Joel, 725 v. Macdonald, 708 v. Phibbs, 87 v. Wormald, 376 Corbett, Acraman v. 183 Corcoran, Judson v. 435 Conger v Cheeseborough, 5 Corles, Dipple v. 230 Corn Ex. Ins. Co. v. Babcock, 856 Cornelius, Taylor v. 509 Cornish v. Clark, 183 Cory v. Eyre, 50, 529 Cosnaham v. Grice, 223 Cotterell v. Stratton, 521 Cotton, Garth v. 319. Coutts v. Acworth, 200, 681 Coventon, Cox v. 424 Coventry v. Chichester, 704 Chichester (Lord) ». 704, 706 ». Coventry, 477 Coverdale v. Eastwood, 450 Cowan, Stokoe »v. 183 Cowdry v. Day, 154 Cowell v. Gatcombe, 356 Cowgil v. Rhodes, 753 Cowles v. Gale, 413 Cowls v. Cowls, 792, 799 Cowne, Spaight v. 190 Cowperthwaite, Jones v. 856 Cox, Addison v. 436 Ayles v. 424 v. Bishop, 438 v. Coventon, 424 Horsley v. 32 Page v. 232 Somerset v. 436 XXIX Crabbe, Chambers v. 149 Craddock, Lake v. 315 Cradock v. Owen, 294 Craig v. Leslie, 47, 295, 301, 409 v. Parkis, 436 Cram v. Mitchell, 162 Crampton v. Varna Railway Company, 405 Craven, Bentley v. 160 Crawshay v. Maule, 637 Cregoe, Gulley v. 233 Crehore, Gibson v. 558 Crealock, Heath v. 34 Croft v. Graham, 168 v. Thompson, 762 Roberts v. 592 Crompton v. Pratt, 464 Crosky, Barry v. 112a Crosskill v. Bower, 365 Crossland, Sugden v. 365 Croucher, Slim v. 112a, 177 Croxton v. May, 883 Croy, Jackson v, 123 Cubitt, Stansfeld v. 436 Cuddee v. Rutter, 405, 453 Cullen, Graeme v. 567 Culverwell, Douglas v. 124 Cumberland, Scott v. 475 Cumpston, Butler v. 856 Curnick v. Tucker, 233 Curtis v. Engels, 856 Cutler, In re, 871 883 D. Dady v. Hartridge, 475 Dakin v. Whimper, 193 Dally v. Wonham, 160, 169 Dance v. Goldingham, 377 Danforth v. Streeter, 431 Daniel v. Arkwright, 89 Daniel, Bank of United States v. 82 Gibbs v. 154 Darbey v. Whitaker, 440 Darby v. Darby, 647 Harbin v. (No. 1), 345 XXX Dare, Greenslade v. 34 Darell, Egmont v. 753 Darling, Green v. 661 Lewis v. 57 Dartmouth (Earl of), Howe v. 359 Darville v. Terry, 183 Davenport, Farral v. 448 Davey, Attorney-General ». 278 Millett v. 514 Davidson, Quayle v. 233 Davies v. Davies, 76, 147, 149 McHenry v. 856 v. Nicolson, 488 Davis, Hitch v. 220 Daw »v. Terrell, 592 Dawson v. Bank of Whitehaven, Berdoe v. 149 v. Dawson, 708 Row v. 435 Day, Cowdry v. 154 v. Day, 436 Day, Holmes v. 655 Deacon, Pearl v. 655 Deare v. Soutten, 904 Dearsley, Swaisland v. 424 Dederer, Yale v. 856 ~ Hoghton v. Money, 431, 31 De la Touche’s Settlement, In re, 89 Delbridge, Richards v. 230 De Mattos, Worseley v. 247 Dening v. Ware, 183, 421 Denne v. Light, 424 Denny v. Hancock, 424, 425 Dent, Wilkinson ». 681 Denton v. Donor, 161 Salusbury v. 284 Dering v. Winchelsea (Earl of), 633 Devaynes v. Noble, 464 v. Robinson, 371 Devoy v. Devoy, 313 Dewey v. Allen, 345 Dewitt, Hallenback v. 123 De Witte v. Palin, 805 TABLE OF CASES. D’Eyncourt v. Gregory, See In- DEX, HEIRLOOMS. Dick, Kimberley ». 448, 454 Dilkes v. Broadmead, 487 Dillwyn v. Llewelyn, 731 Dilrow v. Bone, 421 Dimmock v. Hallett, 424 Dimsdale v. Dimsdale, 125, 149 Diplock v. Hammond, 435 Dipple v. Corles, 230 Di Sora v. Phillipps, 58 Dixie v. Wright, 409 Dixon, Lamare v. 427 Mangles v. 439 v. Muckleston, 592, 593 v. Peacock, 323, 628 Dobson, Harshaw ». 131 Racey v. 160 Dobson, Stocks v. 487 Doe .d. Hiscocks v. Hiscocks, 100 : Dolan v. Macdermot, 275 Dolphin v. Aylward, 193 Donaldson v. Donaldson, 421 Doncaster v. Doncaster, 236 Donner, Denton v. 161 Douglas v. Culverwell, 124 Mackay »v. 184 Dowle v. Saunders, 535 Dowling v. Betjemann, 405 Downes v. Jennings, 33, 182 Drane v. Gunter, 567 Drew v. Lockett, 655 v. Martin, 313 Drosier v. Brereton, 352 Druiff v. Parker (Lord), 89 Drury, Walker v. 882-4 Drysdale, Nevin v. 708 Dubois, Caspell v. 149 Duffield, Cogan v. 89 Duffy’s Trust, Re, 879 Dugdale v. Dugdale, 475 Dumper v. Dumper, 313 Duncombe v. Greenacre, 871, 872 (No. 2), 883 Dunkley ». Dunkley, 883 Dunsany (Lady), Wilson .v. 504 Durfee v. Old Colony R. R., 777 TABLE OF CASES. Dae (Earl of) », Legard (Sir -), 416 Durston, Grosvenor v. 681 Dyer v. Dyer, 311 E. Eaden v. Firth, 770 Eames, Lambe v. 233 Easterbrook v. Tillinghast, 285 Eastham, Willard v. 856 Eastman, Van Vronker v. 518 Eastwood, Coverdale v. 450 Thomson v. 267 Eaton v. Bennett, 91 v. Watts, 233 Eaton v. Whittaker, 448 Eaves v. Hickson, 357 Ede, Paget v. 54 Eddels v. Johnson, 475 Eddleston v. Collins, 574 Edmondson, Clegg v. 38, 333 Edmunds v. Low, 712 Edwards, Hughes z. 33 Edwards, Phillips v. 448 Saunders ». 30, 236 v. Trumbull, 592 Egmont v. Darell, 753 Eleock v. Mapp, 294 Elibank (Lady) v. Montolieu, page 447, n. Elliot v. Merryman, 192, 257 Ellis, Bouts v. 220 Ellison v. Ellison, 193, 245 Elsworth, Anderson v. 200 Elwes v. Elwes, 90 Emuss, Galton v. 178 Engel, Curtis v. 856 England, Bond v. 479 Webb v. 405, 819 Erwin, Parham v. 122 Espey v. Lake, 149 Espin v. Pemberton, 535 Essell v. Hayward, 640 : Etting v. Bank of the United States, 116 Evans v. Bagshaw, 718 v. Bremridge, 658 XXxl Evans, v. Carrington, 898-900 Rowlands v. 640 Williams v. 447 Everett, Smith v. 386 Everitt v. Everitt, 733 Eyden, Gibbins v. 475 Eykyn’s Trusts, 313 Eyre, Cory v. 50, 529 v. Shaftesbury (Countess of ), 792 F. Fabia’ Nunn v. 447 Fackerell, Bagster v. 300 Fairer v. Park, 712 Fane v. Fane, 87 Fairfax, Agar v. 715 Faithfull, In re, 616 Falcke v. Gray, 405, 424 Fane v. Fane, See InpEx, HErR- LOOMS. Fardell, Baud v. 351 Farnham v. Brooks, 162 Farquharson v. Floyer, 475 Farrall v. Davenport, 448 Farrall, Jones v, 435 Fenwick v. Clarke, 355 v. Potts, 592 Fergusson, Clark v. 771 Fewkes, Barrs v. 233 Field v. Peckett (No. 3), 402 Fielder, Laver v. 33, 449, 450 Finch, Colyer v. 34, 535 v. Shaw, 535 Thompson v. 366 Firth, Eaden v. 770 Fish v. French, 725 Fishar, Harman v. 247 Fisher v. Baldwin, 661 Fitzgerald v. Chapman, 900 Fitzsimons v. Fitzsimons, 681 Fleming v. Buchanan, 475 Fletcher v. Ashburner, 47, 409 v. Fletcher, 421 Floyer, Bostock v. 357 Farquharson v, 475 Flowers, Stewart v. 616 XXXil Fluker v. Taylor, 454 Fooks, Strange v. 33, 164, 655 Forbes, Firth v. 614 Ford, Re, 882 Barnard v. 875 v. Olden, 553 Ford, Stockton v. 154 v. White, 598 Forster, Honywood »v. (No. 2), 681 Fossick, Ogden v. 424 Foster, Haven v. 85 Foster and Lister, In reyj97 McCreight v. 40 v. Roberts, 169 Shaw v. 407 Fowkes, Wilkinson v. 39 Fowler v. Fowler, 89 Marshall v. 883 Fowler’s Trust, In re, 681 Fox v. Fox, 233 v. Mackreth, 333 Foxcroft, Lester v. 447 Foy, Sharpe v. 190, 903 Francis v. Brooking, 883 v. Clemow, 304 v. Francis, 616 Viner v. 210 Frankel, Garrard v. 89 Franklin, Clarke v. 299 Frazer, Norris v. 234 Freeman v. Lomas, 663 v. Pope, 183 French, Fish v. 725 Rost v. 133 Shee v. 183, 469 Friend, Pembroke v. 482 Firth v. Forbes, 614 Frost v. Belmont, 142 Fryer, Hensman ». 475 Fullerton v. Martin, 236 Fynney, Piercy v. 662 Fytche v. Fytche, 697 G. Gaby, Stump v. 155 Gaffee, In re, 852 TABLE OF CASES. Gaines et ux. v. Chew et al, 105 Gale, Cowles v. 413 v. Gale, 422 Gallagher, Johnson »v. 856 Galton v. Emuss, 178 Gandell, Rodick v, 435 Gardner v. Gardner, 855 Ware v. 183 Garnett, McCormack v. 883, 890 Garrard v. Frankel, 89 - Garrick, Burdick v. 462 Garth v. Cotton, 319 v. Townsend, 79 Gatcombe, Cowell v. 356 Gay, Wadhams ». 31 Geach, Clemow ». 34 Geary, Union Bank of George- town v. 88 Geaves, Cavendish v. 661 Geldard, Robinson ». 496 Gellatly, Brown »v. 359 Gent v. Harris, 883 Gerken’s Estate, 477 Giacometti v. Prodgers, 871 Gibbins v. Eyden, 475 v. Taylor, 366 Gibbs v. Daniel, 154 v. Harding, 896 Sharshaw v. 628 Gibson v. Crehore, 558 v. Goldsmid, 39 Harrison v. 33 Lake v. 35 5 v. Seagrim, 493 Gilbard, Gynn v. 801 Gilbert v. Lewis, 830 v. Overton, 421 Gilbertson v. Gilbertson, 477 Gill v. Schley, 133 Gillian v. Brown, 712 Gilliat v. Gilliat, page 484, n. Gilmore, Huntington v. 220 Gill’s Estate, 710 Girod, Michoud ». 545 Gleaves v. Paine, 882 Glengall (Earl of), Thynne (Lady E.) v. 447, 704 TABLE OF CASES. Glenn, McNeal v. 247 Glenorchy (Lord) 2. Bosville, 30 89, 236 Glover, Re, 280 Glyn, Harding v. 79, 233, 283 Goddard v. Whyte, 655 Godlee, Reynolds v. 298 Goff, Wright v. 89 Goldingham, Dance v. 377 Goldsmid, Gibson v. 39 Goldwin, Chambers v. 804 Goldwire, Legg v. 89 Goodwin, Brittlebank v. 462 Goodyear, Murrell v. 205 Gott, Allen v. 477 Heptinstall v. 301 Goulder v. Camm, 830 Graeme v. Cullen, 567 Graham, In re, 801 Croft v. 168 v. Johnson, 153 v. Wickman (No. 1), 714 Grane, White v. 806 Grant v. Grant, 230, 421, 824 Wynch v. 874 Gratz, Brashier v. 413 Prevost v. 33 Graves v. Boston Marine In- surance Co., 89 Gray, Baker v. 530 Falcke v. 405, 424 . Richmond v. 424 ~ v. Russell, 774 Green, Bethell v. 475 v. Britten, 830 v. Darling, 661 v. Marsden, 233 v. Wynn, 164 Greenacre, Duncombe ». 871, 872 (No. 2), 883 Greenhill, Attorney-General v. 285 Willes v. (No. 1, 2), 436 Greenslade v. Dare, 34 Greenwich Tanning Company, Reeves v. 424 XXxiil Greenwood v. Greenwood, 88, 125 _ _ Middleton ». 668 Gregory, D’Eyncourt v. See In- . DEX, HErrLooms Jones v. 105 v. Wilson, 676 Gregson, Cook v. 469 Grenfel, Paget v. 704 Gresley v, Mousley, 38, 154 Greville v. Browne, 804 Grice, Cosnahan v. 223 Griffiths v. Porter, 356 Grindle, Blaiklock v. 686 Grissell v. Swinhoe, 681 Grogan, McCormick v. 238, 234 Grosvenor v. Durston, 681 v. Sherratt, 175 Grove’s Trust, Re, 883 Grymes v. Sanders, 84 Guedalla, Mendes ». 356 . Montefiore v. 708 Guest, Harrison v. 122, 123 Gully v. Cregoe, 233 Gummow, Budge v. 352 Gunter, Drane v. 567 Gutteridge, Phillips v. 589 Gye, Knox ». 461 Gynn v. Gilbard, 801 H. Hackett, Stone v. 421 Haddon, Seycraft v. 856 -| Haigh v. Kay, 179 Haight v. Moore, 149 Hall, Airey v. 421 v. Hall, 200 Rossiter v. 776 Hallenback v. Dewitt, 123 Hallett, Dimmock v, 424 Hamilton v. Buckmaster, 424 Hammond, Allen v. 87 ‘Diplock v. 435 v. Smith, 712 Hanbury, Parkinson »v. 514, 515, 548, 545 XXXIV Hance v. Truwhitt, 683 Hancock, Denny v. 424, 425 Hannah v. Hodgson, 149 Harbin v. Darby (No. 1), 845 Harby, Commissioners of Public Works v. 177 Harcourt, Jenkinson v. 479 v. White, 33 Hardaker, Stead v. 475 Hardenburg, Texas v. 50 Harding; Gibbs v. 896 v. Glyn, 79, 233, 283 St. Albyn v. 169 Harman »v. Fishar, 247 Harms v. Parsons, 141 Harris, Atlantic Bank v. 187 v. Brooks, 164 Gent v. 883 v. Harris (No. 1), 396 UW Mott, 848 v. Pepperell, 89 v. Watkins, 302, 304 Harrison, Alton v. 183 Buchanan »v. 295, 300 v. Guest, 122, 123 v. Gibson, 33 v. Harrison, 294 Miles v. 496 v. Randall, 391 Rooper v. 535 v. Tennant, 640 Harshaw v. Dobson, 131 Hart, Rolland v. 190 v. Tribe (No. 4), 233 Hartland v. Murrell, 302 Hartley, Barrett v. 345, 365 Hartridge, Dady ». 475 Harvey, Millard ». 901 Haselfoot’s Estate, In re, Chaunt- ler’s Claim, 604 Hassell v. Hawkins, 712 Hastings, Ex parte, Bubb ». Yel- verton, 768 Haven v. Foster, 85 Hawkes v. Hubback, 852 Hawkins, Hassell v. 712 Hay, Heald v. 429 Hayden »v. Kirkpatrick, 588 TABLE OF CASES. Haygarth v. Wearing, 112a Haymes, Brooke »v. 89 v. Cooper, 617 Hayward, Essell v. 640 Headland, Williams v. 383 Heald v. Hay, 429 Heap, Schofield v. 708 Hearn, Woolam »v, 449 Heath v. Crealock, 34 Loxley v. 450 Heather v. O’ Neil, 574 Hellicar, Powell v. 220 Henderson, Chartered Bank of India, ete., v. 439 ». Comptoir d’Es- compte de Paris, 439 Hendrie, Palmer v. 549 Hendrickson v. Hinckley, 661 Henniker, Wythe v. 498 Hensman v. Fryer, 475 Henty, Caballero v, 424 Heptinstall v. Gott, 301 Hepworth v. Hepworth, 313 Herbert, Sinnett v. 276 Hewison v. Negus, 197, 823 Hewitt v. Kaye, 220 Webb ». 164, 657 Heyl, Wainford v. 856 Hickman v. Cook, 720 Hickson, Eaves v. 357 Higgins, Morgan »v. 156 v. Samels, 424 Hill v. Boyle, 431 Hillman, Lewis v. 154 Hilton, Clarke v. 301 v. Woods, 430 Hinckley, Hendrickson v. 661 Be Lessee v. Longworth, 18 Hine, Picard v. 856 Hingston, Parnell v. 421 Hiscocks (Doe d.) v. Hiscocks, 100 Hitch v. Davis, 220 Hitchcock »v. Clendinen, 890 Hitchman v. Stewart, 635 Hives, Adsetts v. 133 TABLE OF CASES. Hobday v. Peters (No. 1), 583 (No. 2), 857 Hoddel v. Pugh, 411 Hodge, Tynte v. 169 Hodgson v. Bibby, 33 Hannah v. 149 Lister v. 102 Marine Insurance Co. of Alexandria, v. 762 Hoghton v. Hoghton, 149° Holcombe, Story v. 774 Holl, Perry v. 190 Holland v. Holland, 374 Holden v. Stickney, 567 Holloway v. Radcliffe, 409 Holman v. Loynes, 154 Holmes v. Penny, 183 Swan v. 681 v. Day, 655 Holmes’s Estate, Re, 155 Holmesdale (Viscount), Sack- ville-West v. 237 Holroyd tv. Marshall, 436 Holtby, Bell v. 424 Homans, Morgan »v. 345 Home, Lyon v. 200 Honywood wv. Forster (No. 2), 681 Hood v. Oglander, 233 Hooper, Bate v. 359- v. Smart, 415 Turnley v. 183 Hope v. Hope, 57 Hopgood »v. Parkin, 257 Hopkinson, Rolt v. 530 Hopwood v. Hopwood, 708 Horsley v. Cox, 32 Horton v. Brocklehurst (No. 2), 366 Hotten v. Arthur, 774 Houlston, Jarrold v. 774 Howard, ete., Ass’n., Shannon v. 674 Waters v. 681 Howe v. Dartmouth (Earl of), 359 Howell, United States v. 164 Pankhurst v. 710 XXXV Howell, Wheeler v: 304 Howells v, Jenkins, 681 Howlett, Lee v. 535 Hubback, Hawkes v. 852 Hubbard, Boynton »v. 136 v. Shaw, 514 Hudson, Phillips v. 749 v. Temple, 413 Thompson v. 518, 54%, 558, 674, 678 Hughes v. Edwards, 33 v, Jones, 415 Sayre v, 313 Voyle v. 421 Huguenin v. Baseley, 148, 200 Hull v. Sherwood, 655 Hulme ». Tenant, page 423, n. Humphreys, Richards v. 710 Hunt v. Hunt, 896 Moultrie v. 504 v, Rousmaniere, 83 Hunter v. Belcher, 460 v. Walters, 114, 115, 133. Huntingdon (Earl of) v. Hun- tingdon (Countess of ), 320, 574 Huntington v. Gilmore, 220 Hurst, Padwick v. 454 Smith v. 248 Hutchinson, Bold v. 95 Metcalf v. 310 Hutt, Broughton v. 81 Hutton v. Rossiter, 112a I. Iggulden, Lancefield v. 475 lliffe, Smith v. 89 Illingworth, Leyland v. 424 Imperial Mercantile Credit As- sociation v. Coleman, 333 Ingham, Rogers v. 83 Ingilby, Campbell v. 67 Inman v. Inman, 536 Inns, Benwell v. 141 Inskip, Braybroke v. 585 Insole, In re, 832 Ton v. Ashton, 477, 480 xxxvi Iremonger, Barnwell v. 475 Irvine »v. Sullivan, 234 J. Jackson, Biddle v. 816 v, Croy, 123 Lane v. 34 v. Pease, 475 Pease v. 187, 530, 580, 582 Sinclair v. 31 Tiernan v. 435 Tyson »v, 431 Jacques, Methodist Episcopal Church ». 848 Jacubs v. Rylance, 375. Jaeger, Moore v. 54 James v. James, 601 v. Lichfield, 190 Janssen, Chesterfield (Earl of ) v. 165 Jarratt v. Aldam, 147 Jarrold v. Houlston, 774 Jarvis, Shillibeer v. 448 Jauncey v. Attorney-General, 496 Jeaffreson, Ogilvie v. 34, 112, 190 Jeans ». Cooke, 314 Jefferies v. Mitchell, 712 Jegon v. Vivian, 749 Jenkins, Ayerst v. 732 Howells v. 681 v. Jones, 541 v. Pye, 149 »v, Stetson, 169 Jenkinson v. Harcourt, 479 Jenner v. Morris, 661 Jennings v. Baddeley, 640 ». Broughton, 112 Charlesworth v.112a Downes v. 38, 182 J oe (Countess of ), Stackhouse vw. Jervis 7. Wolferstan, 392a, 393 Jervoise v. Jervoise, 828 TABLE OF CASES. Joel, Cooper v. 725 Johnson, Comstock v. 39 Eddels v. 475 v, Gallagher, 856 Graham v. 153 Kellaway v. 372 Park v. 424 ». Wyatt, 668 Johnston, Kay v. 323 Jones, Briggs v. 535 v, Cowperthwaite, 856 v. Farrell, 435 v, Gregory, 105 Hughes v. 415 Jenkins v. 541 v, Lock, 421 Nicholl v. 902 Ravenscroft v. 709 v. Ricketts, 169 Rogers v. 681 v. Thomas, 740 Walker v. 580 Judge, Tomson »v, 154, 155 Judson v. Corcoran, 435 K. Kane v. Bloodgood, 33 Kay v. Johnston, 323 ». Smith, 112 Kay, Smith ». 153 Kaye, Haigh ». 179 Hewitt v. 220 Keane v. Robarts, 370 Keech 2. Sanford, 333 Keep, Beech v. 421 Keith v. Burrows, 53 Kekewich v. Manning, 421 Kellaway v, Johnson, 372 Kellett, Russell v. 276 Kelson v. Kelson, 193 Kemp v. Burn, 400 Eerie Society titi 96 Kempson v. Ashbee, 149, 150 Kempton, Burnham v. 770 Kennard v, Kennard, 79 TABLE OF CASES. Kennedy, Broun v. 93, 148, 153 v. Parke, 436 Kenny v. Udall, 814 Kensington (Lord) v. Bouverie, 629 Rooke v. 90 Kent v. Riley, 183 Kerr’s Policy, In re, 600 Kerry, Phillipson v. 93, 102, 200 Kilvert’s Trusts, In re, 275 Kimber v. Barber, 160 Kimberley v. Dick, 448, 454 Kincaid’s Trusts, In re, 871, 883 King, Savory v. 149, 154 Kinnear, Bonser v. 233 Kirkpatrick, Hayden v. 588 United States ». 464 Kirkwood v. Thompson, 545, 555 Klinck v. Price, 506 Knight v. Knight, 888 Seagram v. 33 Knott, Perry v. 371, 372 Knox v. Gye, 461 Koeber v. Sturgis, 883 L. Lacon v. Allen, 592 Lacy, Tinsley v. 775 Lagow, Neilson v. 316 Laing, Tucker v. 164 Lake v. Craddock, 315 Espey v. 149 Lake v. Gibson, 35 Lamare v. Dickson, 427 Lambarde ». Older, 663 Lambe v. Eames, 233 v. Orton, 421 Lambert, Merritt v. 430 v. Thwaites, 284 Lamotte, Cooke v. 200 Lamprell, Trutch v. 366 Lancaster and Carlisle Railway Company v. Northwestern Railway Company, 777 Lancefield v. Iggulden, 475 XXXVI Lane v. Jackson, 34 Perfect v. 169 Langdale (Lady) v. Briggs, 479 Langdon v. Astor’s Ex’rs., 704 Larcher, Bright v. 477 (No. 2), 38, 476 Larios v. Bonany y Gurety, 451 Larkin v. Mann, 477 Lathrop v. Amherst Bank, 430 Laver v. Fielder, 33, 449, 450 Law, Sloo v. 365 3 Lawless, Parfit v. 148 Lawrance, Brownson v. 475 Layard v. Maud, 535 Leach, Brown v. 112 Clark v. 639 Sharp v. 148, 169, 200 Leary v. Shout, 640 Leather Cloth Company v. Lor- sont, 141 Lechmere v. Brotheridge, 848, 850 Le Clair, May v. 336 Ledger, Longmate v. 123, 124, 130 Lee v. Howlett, 535 v. Sankey, 367 Leeds Banking Company, In re, 856 Legard (Sir F.), Durham (Earl of ) v. 415 Legerton, Bright v. 33 Legg v. Goldwire, 89 Lehmann ». McArthur, 33 Leicester (Corporation of ), At- torney-General v. 372 Leigh v. Lloyd, 190 Leighton v. Leighton, 709 Le Marchant v. Le Marchant, 233 Lempritre, London Chartered Bank of Australia v. 856-8 Le Neve v. Le Neve, 187 Le Roy, Watson v. 34 Leslie, Craig v. 47, 295, 301, 409 Lester v. Foxcroft, 447 L’Estrange v. L’ Estrange, 435 Lett v. Morris, 435 XXXVIii Letts, Turner v. 616 Levaux, Smith v. 454 Lewis v. Darling, 57 Gilbert v. 830 - v. Hillman, 154 v. Matthews, 830 New England Bank v. 250 O’Brien v. 155 v. Rees, 193 Ley, Price v. 102 Leyland v. Ilingworth, 424 Liebarrow v. Mason, 133 Lichfield, James v. 190 Life Association of Scotland ». Siddal, 871 Light, Denne ». 424 Lightfoot, Menzies v. 530 Lilford (Lord) v. Powys Keck, 498 Lincoln ». Wright, 179 Lindgren, Wilkinson v. 275 Lindsay, Codrington v. 689 Lister, Foster and In re, 197 v. Hodgson, 102 Tidd v, 495, 891 Liverpool Borough Bank v. Tur- ner, 609 Marine Credit Com- pany v. Wilson, 608 Living, Carr v. (No. 2), 808 Llewelyn, Dillwyn ». 731 Lloyd »v. Attwood, 193 v. Banks, 436 Leigh v. 190 v. Pughe, 825 Wentworth ». 33, 160 Wilson ». 164 Lock, Jones v. 421 Lockett, Drew »v. 655 Locking v. Parker, 567 Lockwood, Scholefield ». ae Ds (No, 2), (No. 3), 558 Lodge v. Prichard, 649 Loffus v. Maw, 450 TABLE OF CASES. Lomas, Freeman v. 663 Londesborough (Lord) v. Somer- ville, 310 London Chartered Bank of Aus- tralia v. Lempriére, 856-8 Hospital (Governors of), Robinson v. 295 Long v. Bowring, 453 Longmate v. Ledger, 123, 124, 130 Longworth, Hind’s Lessee v. 183 Taylor v. 413, 424 Lonsdale, Prideau v. 182 Loomis v. Loomis, 436 Lord, Luff v. 365 Milroy v. 421 Lorsont, Leather Cloth Com- pany v. 141 Loughborough, Barfield v. 646 Lovett v. Lovett, 754 Low, Edmunds »v. 712 Loxley v. Heath, 450 Loynes, Holman v. 154 Luck, Beevor v. 554 Lucy’s Case, 88 Luff v. Lord, 365 Lush’s Trusts, In re, 887 Lyddon »v. Moss, 155 Lyman, Parsons v. 504 v. United Ins. Co., 89 Lynn, Bank of Alexandria v. 424 Lyon v. Home, 200 Watson v. 616 Lyons (Mayor of) v. Advocate- General of Bengal, 276 Lytton, Bennett v. 383 M. McArthur, Lehman ». 33 McAvoy, Stock v, 318 McBean, Collier ». 424 MeCarogher v. Whieldon, 704, McCormick v. Garnett, 883, 890 v Grogan, 233, 234 TABLE OF CASES. McCreight v. Foster, 407 Macdermot, Dolan ». 275 Macdonald, Cooper v. 708 McDonnell v. White, 33 McGowan v. Remington, 791 McHenry v. Davies, 856 McIntosh v. Saunders, 89 McKnight v. Taylor, 33 Mackay, Bently v. 81 v. Douglas, 184 Mackeit v. Mackett, 233 Mackreth, Fox v. 333 v. Symmons, 327 McLaughlin». Bank of Potomac, 183 McLean, Telegraph Despatch, etc., Company v. 424 Newton v, 34 MeNeal v. Glenn, 247 Macleod v. Annesley, 352 Macnab ». Whitbread, 233 Magawley’s Trust, Re, 183 Magdalen College v. Attorney- General, 278 Maidstone (Lord), Wright v. 76 Major, Beecher v. 313 Malcolm v. Scott, 435 Malins v. Brown, 448 Malleson, Morgan ». 230 Malmesbury(Earl of ) ». Malmes- bury (Countess of ), 89 Malpas, Clark v, 123 Manby v. Bewicke, 128 Mandeville v. Welch, 435, 592 Mangles v. Dixon, 439 Mann, Child v. 744 Mann, Larkin v. 477 Manning, Kekewich v. 421 Manningford v. Toleman, 316 Mapp, Elcock v. 294 Mare v. Sanford, 186 Marine Ins. Co. of Alexandria v. Hodgson, 762 Marsden, Green v. 233 Marsden’s Trust, Re, 203 Marshall »v. Balto. and Ohio R. R., 142 v. Fowler, 883 XXX1X Marshall, Holroyd v. 436 Watson v. 883, 884 Marshfield, Talbot v, 401 Martin, Drew v. 313 Fullerton v. 236 v. Martin, 804 Mason, Liebarrow v. 133 Massie v. Watts, 54 Masson, Stevenson v. 708 Mathews, Lewis v. 830 Maud, Layard v. 535 Maude, Scales v. 421 Maule, Crawshay v. 637 Maw, Loffus v. 450 Maxfield v. Burton, 187, 190 Maxwell, Wells v. (No. 1), 413 May, Croxton v. 883 May ». Le Claire, 336 Mayor, Sharp v. 112a Meacham »v. Sterne, 345 Meadows v. Meadows, 89 Meads, Taylor v. 849 Mellor, Stead v. 233 Melton, Ranelagh (Lord) v. 413 Mendes v. Guedalla, 356 Menzies v. Lightfoot, 530 Merchant Taylor’s Company v. Attorney-General, 277 Merrett, Powell v. 294 Merriman v. Ward, 464 Merritt v. Lambert, 430 Merryman, Elliot v. 192, 257 Metcalfe v. Hutchinson, 310 Metcalfe’s Trusts, Re, 131, n. Methodist Episcopal Church v. Jacques, 848 Metropolitan Board of Works, Buccleuch (Duke of ) v. 440 Michell, Jefferies v. 712 Michoud »v. Girod, 545 Micklethwait v. Micklethwait, 767 ; Walker v. 59 Middleton v. Greenwood, 668 v. Pollock, 663 v. Windross, 681 Mildred v. Austin, 555 Miles v. Harrison, 496 xl Millard v. Harvey, 901 Miller v. Cook, 40, 168, 170 v. Miller, 131 v. Thurgood, 681, 682 Millett v. Davey, 514 Mills v. Mills, 142 Milne, Wild »v. 644 Milroy v. Lord, 421 Milwaukee R. R. Co. v. same, 431 Minshull, Bernard v. 235 a and Mo, R. R. v. Ward, 770 Mitchell v. Mitchell, 475 Cram v. 162 Money, De Hoghton »v. 431, 731 v. Money, 815 Monk, Baker v. 128, 124 Montefiore v. Guedalla, 708 Montolieu, Elibank (Lady) ». page 447, n. Moore, Blandheir v. 785 Haight v. 149 v. Jaeger, 54 v. Moore, 220, 230 v. Morris, 847, 851, 852 v. Petchell, 474 Mordaunt, Noys v. 681 Morgan v. Higgins, 156 ». Homans, 345 v, Malleson, 230 Morgan, Spread v. 692, 693 Walters v. 118, 424 Morley v. Morley, 626 Morris, Aylesford (Earl of) ». 168, 171 Jenner v. 661 Lett v. 435 Moore v, 847, 851, 852 Morse’s Settlement, In re, 89 Mortimer v. Bell, 424 Payne v. 428, 492 Mosely v. Simpson, 441, 442 Mosley v. Ward, 689 Moss v, Bainbrigge, 155 Lyddon ». 155 Mostyn (Lord), Brooke v. 88 v. Mostyn, 89, 100 TABLE OF CASES. Mostyn, Townshend v. 479, 480 v. West Mostyn Com- pany, 117 Mott, Harris v. 848 Mould, Penfold v. 885 Moultrie v. Hunt, 504 Mount, Biron v. 250 Mousley, Gresley v. 33, 154 Moxon v. Paine, 88, 108, 148 Muckleston, Dixon v. 592, 593 Mullings, Phillips v. 200 v. Trinder, 424: Mumford v. Stohwasser, 529 Munch »v. Cockerell, 371 Mundford, Alston v. 493 Murphy, Paterson v. 230 Steele v. 250 Murray v. Parker, 89, 96 Murrell v. Goodyear, 205 Hartland »v. 302 Murrill v. Neill, 649 Mutlow v. Mutlow, 469 Myers v. United Guarantee Com- pany, 431 N. Nanney v. Williams, 155 Napier v. Napier, 883 National Provincial Bank, Ex parte, In re Bolter, 89 Negus, Hewison v. 197, 823 Neill, Murrill v. 649 Neilson v. Lagow, 316 Nelson v. Stocker, 112 Nesbitt v. Berridge, 169 Neve v. Pennell, 554 Nevin v. Drysdale, 708 Newbery, In re, 796 New England Bank v. Lewis, 250 Newell, Palmer v. 714 Newman, In re, 156 v. Selfe, 542 v. Wilson (No. 2), 883 Newstead, Ridgway v. 33 Newton v. Chorlton, 655 TABLE OF CASES. Newton, McLean », 34 v, Newton, 599 v, Sherry, 384 Nicholl v. Jones, 902 Nickolson, Upperton v. 424 Nicolson, Davies v. 488 Nightingale, Parker v. 204 Noble, Devaynes v. 464 Norfolk, Peabody v. 141 Norris v. Frazer, 234 Robertson ». 33, 541 Wooldridge v. 164 Northampton, etc, Railway Company, Wilson v. 405 Northern Assam Tea Company, In re, Ex parte Universal Life Assurance Company, 439 North Metropolitan Railway Company, Steele v. 777 Northwestern Railway Com- pany, Lancaster and Carlisle Railway Company ». 777 Northwestern Railway Com- pany, Shrewsbury and Bir- mingham Railway Company », 424 Norton v. Norton, 316 Nosworthy, Basset v. 34, 338, 376 , Nottidge v. Prince, 130, 153 Noys v. Mordaunt, 681 Nunn v. Fabian, 447 Nye, Turner v. 228 O. Oakes v. Turquand, 113 Obee v. Bishop, 462 O’Brien v. Lewis, 155 Ochsenbein v. Papelier, 54 Oelrichs v. Spain, 12 Ogden v. Fossick, 424 Ogilvie v. Jeaffreson, 34, 112, 190 Oglander, Hood v. 2383 O'Grady, Smith v. 463 Okeson’s Appeal, 477 D xli Old Colony R. R., Durfee v. 777 Olden, Ford v. 553 Older, Lambarde ». 663 Oliveira, Beaumont v. 496 Ollive, Weale v. 421 O’Neill, Heather v. 574 Onions v. Cohen, 725 Oppenheim, Bury »v. 149 Ordish, Wood v. 475 Oriental Commercial Bank ». Savin, In re Bird, 357 Financial Corporation v. Overend and Com- pany, 164 Ormes v. Beadel, 424, 441 Orrell v. Orrell, 685 Orton, Lambe v. 421 Otis v. Beckwith, 421 Overend and Company, Oriental Financial Corporation v. 164 Overton, Gilbert v. 421 Owen, Cradock v. 294 Thorp v. 233 P. Padget, Vint v. 554 Padwick v. Hurst, 454 Page v. Cox, 232 Paget v. Ede, 54 v. Grenfell, 704 Pain v. Coombs, 448 Paine, Gleaves v. 882 Palin, De Witte v. 805 Palmer v. Hendrie, 549 v. Newell, 714 Vanderberg v. 230 Pankhurst v. Howell, 710 Papelier, Ochsenbein v. 54 Parfitt v. Lawless, 148 Parham, Erwin v. 122 Park, Fairer v. 712 v. Johnson, 424 Kennedy v. 436 Parker v. Barker, 744 xlii Parker v. Clarke, 581 v. Coburn, 712 (Lord), Druiff v. 89 Locking v. 567 Murray v. 89, 96 v. Nightingale, 204 Smith v. 439 Parkin, Hopgood ». 357 Surtees v. 494 v. Thorold, 413 Parkinson v. Hanbury, 514, 515, 548, 545 Parkis, Craig v. 436 Parnell v. Hingston, 421 Parry, Phillips v. 475 Parsons, Harms v. 141 v. Lyman, 504 Paterson v. Murphy, 230 v. Scott, 494 Payne v. Mortimer, 423, 492 Moxon »v. 88, 108, 148 Peabody v. Norfolk, 141 Peachy v. Somerset (Duke of), 458, 670 Peacock, Dixon v. 323, 628 Pearce, Rolls v. 220 Pearl v. Deacon, 655 Pearmain v. Twiss, 475 Pearson v. Amicable Assurance Office, 421 v. Benson, 154 Spencer v. 529 Pease v. 2 (i 187, 530, 580 2 Jackson v. 475 Peckett, Field v. (No. 3), 402 Peckham ». Taylor, 228, 230 Pegler v. White, 424 Pemberton, Espin v. 535 Pembroke v. Friend, 482 Penfould v. Mould, 885 Penn v. Baltimore (Lord), 54 Pennell, Neve v. 554 Penney, Holmes v. 183 Penny, Briggs v. 233, 235, 287 Pepperell, Harris v. 89 Pepper’s Will, 31, 79 Perfect v. Lane, 169 TABLE OF CASES. Perry v. Holl, 190 v. Knott, 371, 372 v. Pratt, 720 Persee v. Persee, 125 Petchell, Moore v. 474 Peter v. Beverly, 47 Peters, Hobday ». (No. 1), 583 (No. 2), 857 Wheaton v. 774 Usticke v. 681 Peterson v. Peterson, 473 Petit v. Shepherd, 725 Pett, Robinson v. 163, 333, 336, 345 Phibbs, Cooper v. 87 Philanthropic Society v. Kemp, 496 Phillipps, Di Sora v. 58 Phillips v. Beal (No. 2), 387 v. Boardman, 204 », Edwards, 448 v. Gutteridge, 589 v. Hudson, 749 v. Mullings, 200 v. Parry, 475 v. Phillips, 454, 708 Phillipson v. Kerry, 93, 102, 200 Philpott v. St. George’s Hos- pital, 277 Phipps v. Child, 661 Picard v. Hine, 856 Piercy v. Fynney, 662 Piggott v. Stratton, 204 Pilkington, Coles v. 447 Pilcher v. Rawlins, 34, 190 Pinchin v. Simms, 704 Pincombe, Smith v. 88 Pinniger, Surcombe v. 448 Piper v. Piper, 482 Planet Benefit Building Society, Thompson v, 17 Pledge v. Buss, 655 Plenty v. West, 477 Plunkett, Buller v. 436 Pollard, Bone v. 313 Pollock, Middleton v. 663 Pomfret, Selby v. 554 TABLE OF CASES. Poole, Ex parte, 316 Pooley v. Quilter, 162 Pope, Freeman v. 183 Porter v. Baddeley, 359 - Porter, Griffiths v. 356 et al. v. Turner, 79 Portington, Taylor v. 420 Portland (Duke of ), Topham »v. 201 Pott v. Todhunter, 183 Potter, In re, 817 Potts, Fenwick v. 592 v. Surr, 149 Powell v. Hellicar, 220 v. Merrett, 294 v. Redfield, 678 v. Riley, 475, 477 v. Smith, 82, 426 Powis, Carpmael v. 87 Powys v. Blagrave, 763 . Powys Keck, Lilford (Lord) »v. 498 Pratt, Crompton v. 464 Perry v. 720 Prees v. Coke, 158 Presbyterian Church, Voorhees v. 160 Presgrave, Birkley v. 636 Prevost, Gratz v. 33 Price, Klinck v. 506 UV. Ley, 102 Prichard, Lodge v. 649 Pride v. Bubb, 849 Prideau v. Lonsdale, 182 Prime, Silk v. 302, 304, 469 Prince, Nottidge v. 130, 153 Probst v. Brock, 539 Prodgers, Giacometti v. 871 Prolev. Soady, 326 Pugh, Hoddel v. 411 Pughe, Lloyd v. 825 Pulsford v. Richards, 112, 112a, 116 Pusey v. Pusey, Somerset (Duke of ) v. Cookson, 791 Pye, Ex parte, 698 Jenkins vr. 149 Pyrke v; Waddingham, 424 xliii Q. Quayle v. Davidson, 233 : Queen, The, Shropshire Union Railways, etc., Company, v. 50, 380, 529 Queen’s College, Oxford, War- wick v. 749 Quilter, Pooley v. 162 R. Racey, Dobson v. 160 Radcliffe, Holloway v. 409 Radford v. Willis, 424 Ramshire v. Bolton, 1124 Randall, Harrison v. 391 Ranelagh (Lord) v. Melton, 413 Rankin v. Weguelin, 220 Ravenscroft v. Jones, 709 Rawlins, Pilcher v. 34, 190 v. Wickham, 112 a, 640 Rayment, Scott v. 638 Read, Baker v. 33 Re Cornwall, 183 Re Kane, 806 Re Paschall, 616 Read v. Steadman, 294 Redfield, Powell v. 678 Rees v. Berrington, 164 Lewis v. 193 ~ Reese River Silver Mining Com- pany v. Atwell, 183 v, Smith, 112a, 146 Reeves v. Baker, 233 v. Greenwich Tanning Company, 424 Rehden v. Wesley, 355 Reid v, Reid, 284 Remington, McGowan v. 791 Rensellaer, Wendell v. 177 Reynell v. Sprye, 112, 145, 430 Reynolds v. Godlee, 298 Rexford v. Rexford, 50 Rhodes v. Bate, 148 Cowgill v. 753 Rice v. Rice, 50, 529 xliv Richards v. Delbridge, 230 Richards v. Humphreys, 710 Pulsford v. 112, 112a, 116 Richardson v. Richardson, 421 v, Smith, 424 Richens, Rudge v. 549, 550 Richmond v. Gray, 424 Ricketts, Jones v. 169 Rideout, Caton v. 855 Ridgway v. Newstead, 33 Rigden, Vane (Earl) v. 382 Riley, Consolidated Investment and Insurance Com- . pany v. 535 Kent v. 183 Powell v. 475, 477 Ripley v. Waterworth, 299 Robarts, Keane v. 370 Roberts v. Croft, 592 Roberts, Foster v. 169 Roberts v. Weatherford, 704 Robertson v. Norris, 33, 541 Robinson, Cathcart v. 424 Devaynes v. 371 v. Geldard, 496 v. London Hospital (Governors of ),295 v, Pett, 168, 333, 336 345 v, Wheeler, 762 v. Wheelwright, 853 Rodger v. The Comptoir d’Es- compte de Paris, 439 Rodick v. Gandell, 435 Rodway, Sanders v. 896 Rogers v. Challis, 451 v. Ingham, 83 v, Jones, 681 Warriner v. 230, 436 Wyke v. 164 Rolland v. Hart, 190 Rolls v. Pearce, 220 ~ Rolt v, Hopkinson, 530 v, White, 112, 439 Romney (Earl of), Bradford (Earl of ) v. 89 TABLE OF CASES. Rooke, Brooke v., In re, Brooke, 304 v. Kensington (Lord), 90 Rooper v. Harrison, 535 Rose, Simmons v. 477 v. Watson, 408 Rosher v. Williams, 193, 194 Rossborough, Boyse v. 130, 131 754 Rossiter v. Hall, 776 Rossiter, Hutton v. 112a Rosslyn (Earl of ), Cook v. 741 Rost v. French, 133 Rotherham v. Rotherham, 475 Rousmaniere, Hunt ». 83 Routh, Blagrave v. 33 Row »v. Dawson, 435 Rowe v. Rowe, 359 Rowland, Clegg v. 383 Rowlands v. Evans, 640 Rowlandson, Ex parte, 649 Rowles, Ryall v. 436 Rudge v. Richens, 549, 550 Ruffin, Ex parte, 649 Russell v. Clark’s Ex’rs., 12 Gray v. 774 v. Russell, 592 Sears v. 316 v. Southard, 512 v, Kellett, 276 Russell’s Policy Trusts, In re, 436 Rutter, Cuddee v. 405, 493 Ryall v. Rowles, 436 Rylance, Jacubs v. 375 8. Sacia v. Borthoud, 192 Sackville-West v. Holmesdale (Viscount), 237 St. Albyn v. Harding, 169 St. oe s Hospital, Philpott». 2 St. Helen’s Smelting Company, 4 Tipping v. 770 a St. Sauveur, Sharp v. 271 TABLE OF CASES. Salmon v. Stuyvesant, 100 Salter, Batstone v. 313 v. Bradshaw, 169 Saltmarsh v. Barrett, 294 Salusbury v. Denton, 284 Samels, Higgins v. 424 Samuel v. Ward, 698 Sanders, Grymes v. 84 v. Rodway, 896 Sercombe v. 149 Sanderson, Stewart v. 354 Sandford, Keech »v. 333 Mare v. 186 Sanger v. Sanger, 859 Sankey, Lee v. 367 Sargent, Turner v. 236 Saunders, Dowle v. 535 », Edwards, 30, 236 McIntosh v. 89 Savage, Brown v. 436 Savery v. King, 149, 154 Savin, Oriental Commercial Bank v., In re Bird, 357 Saxton, Sherwood v. 567 Sayre v. Hughes, 313 Scales v. Maude, 421 Schley, Gill v. 133 Schofield v. Heap, 708 Scholefield v. Lockwood (No. 1), 575 (No. 2), 89 (No. 3), 558 v. Templer, 115 Schroder v. Schroder, 683, 684 Scott v. Cumberland, 475 Scott, Malcolm v. 435 Paterson v. 494 v. Rayment, 638 v, Spashett, 876, 883 v. Tyler, 139 Scrivens, Wicks v. 554, 555 Seagram v. Knight, 33 Seagrim, Gibson v. 493 Sears v. Russell, 316 Seaton v. Twyford, 571 Selby v. Pomfret, 554 xlv Selfe, Newman v. 542 Sells v. Sells, 90 Sercombe v. Sanders, 149 Seton v. Slade, 412 Sexton v. Wheaton, 183 Seycraft v. Haddon, 856 Shadbolt v. Vanderplank, 712 Shaftsbury (Countess of ), Eyre v. 792 Shannon v. Howard, etc., Ass’n., 674 Sharp v. Leach, 148, 169, 200 v. St. Sauveur, 271 Sharpe v. Foy, 190, 903 v. Mayor, 1124 Sharshaw v. Gibbs, 628 Shattock v. Shattock, 857 Shaw v. Bunny, 545 Finch v. 536 v. Foster, 407 v. Spencer, 285 Hubbard v. 514 Sheard, Sykes v. 424 Shearer v. Shearer, 647 Shee v, French, 183, 469 Shelley’s Case, 237 Shepard v. Brown, 454 Sheperd, Petit v. 725 Sherratt, Grosvenor v. 175 Sherry, Newton v. 384 Sherwood v. Andrews, 421 v. Hull, 655 v. Saxton, 567 Shillibeer v. Jarvis, 448 Shirley, Simmins »v. 5144 Shout, Leary ». 640 Shovelton v. Shovelton, 233 Shrewsbury and Birmingham Railway Company v. North- western Railway Company, 424 - Shropshire Union Railways, etc., Company v. The Queen, 50, 380, 529 Sibley, Wilkins v. 381 Siddal, Life Association of Scot- land v. 871 xlvi Silk v. Prime, 302, 304, 469 Simmins v. Shirley, 5144 Simmons v. Rose, 477 Simms, Pinchin v. 704 Simpson, Moseley v. 441, 442 Sims v. Sims, 704, 707 Sinclair v. Jackson, 31 Sinnett v. Herbert, 276 Skarf v. Soulby, 183 Slade, Seton v. 412 v, Van Vechten, 365 Slemmer’s Appeal, 640 Slim v. Croucher, 112 a, 177 Sloo v. Law, 365 Smart, British Mutual Invest- ment Company v. 597 Hooper v. 415 Smedley v. Varley, 161 Smee v. Baines, 661 Smith v. Allen, 762 Atkinson v. 196, 574 Ex parte, In re, Bank of Hindustan, etc., 616 Bott v. 183 Bromley v. 169 v. Cherrill, 183 v. Everett, 386 Hammond ¢. 712 v. Hurst, 248 v. Iliffe, 89 Kay v. 112 v, Kay, 153 v, Leveaux, 454 v. O'Grady, 463 v. Parker, 439 v. Pincombe, 88 Powell v. 82, 426 Reese River Silver Min- ing Company v. 112a, 146 Richardson v. 424 v, Smith, 883 Tassell v. 530 Walker v. 155 Wheeler v. 233 Whitbread v. 574 v. White, 145 Whitney »v. 353 TABLE OF CASES. Smith, et al., Wheeler v. 165 Smithson, Ackroyd v. 295 Snell, In re, 616 Soady, Prole v. 326 So. C. Ins. Co., Spring v. 740 Somerset v. Cox, 436 (Duke of ) ». Cookson, 791 Peachy ». 453, 670 Somerville, Londesborough (Lord) v. 310 Soulby, Skarf v. 183 South, Ex parte, 435 v. Bloxam, 494 Southampton Dock Company ». Southampton Harbor and Pier Board, 454 Southampton Harbor and Pier Board, Southampton Dock Company »v. 454 Southard, Russell v. 512 Soutten, Deare ». 904 Spaight v. Cowne, 190 Spain, Oelrichs v. 12 Sparhawk, Andrews v. 263 Spashett, Scott v. 876, 883 Spencer v. Pearson, 529 Shaw »v. 285 v. Topham, 154 Spicer v. Spicer, 871 oe v. Willows, 183, 830, 83 Spread v. Morgan, 692, 693 Spring v. So. C. Ins. Co., 740 Sprye, Reynell v. 112, 145, 480 Squires v. Ashford, 883 Staat ». Bergen, 333 Stackhouse v. Jersey (Countess of ), 50 Stainton v. Carron Company, 664 Staniforth, Talbot v. 169 Stansfield v. Cubitt, 436 Stapilton v, Stapilton, 88, 125 Stead v. Hardaker, 475 v. Mellor, 233 Stedman, Read v. 294 Steele v. Murphy, 250 TABLE OF CASES. Steele ». North Metropolitan Railway Company, 777 Stephens v. Stephens, 681 Sterne v. Beck, 674 : Meacham », 345 Stetson, Jenkins v. 169 Stevens, Barry v. 454 Stevenson v. Masson, 708 Steward, Ex parte, 435 v. Blakeway, 647 Stewart v. Flowers, 616 Hitchman v. 635 v, Sanderson, 354 Stickney, Holden v. 567 Stock v. McAvoy, 313 Stocker, Nelson v. 112 v. Wedderburn, 424, 896 Stocks v». Dobson, 437 Stockton v. Ford, 154 Stohwasser, Mumford v. 529 Stokes, Brice v. 348, 368 Stokoe v. Cowan, 183 Stone v. Hackett, 421 v. Stone, 267 - Story v. Holcombe, 774 Strange v, Brennan, 155 v. Fooks, 33, 164, 655 Strathmore (Countess of) v. Bowes, 182 Stratton, Cotterell v. 521 Piggott v. 204 Streatfield v. Streatfield, 681 Streeter, Danforth v. 431 Stretch, Chubb v. 856 Strong v. Strong, 183 v. Williams, 712 Stroughill v. Anstey, 263, 379 Stuart v. Cockerell, 436 Stump v, Gaby, 155 Sturgis, Koeber v. 883 Stuyvesant, Salmon v. 100 Sugden v. Crossland, 365 Suggitt’s Trusts, In re, 883 Sullivan, Irvine v. 234 Surcombe ». Pinniger, 448 Surr, Potts v. 149 Surtees v. Parkin, 494 Sutton v. Wilders, 357 xl vii Swainson v. Swainson, 480 Swaisland v. Dearsley, 424 Swan, Re, 869 v. Holmes, 681 Swift v. Swift, 799, 823 Swinfen v. Swinfen (No. 5), 355 Swinhoe, Grissell v. 681 Sworder, Abbott v. 122 Sykes v. Sheard, 424 Symmons, Mackreth v. 327 Symonds, Beale v. 591 Walker v. 372 T, Taite, Vivers v. 424 Talbot v. Marshfield, 401 v. Staniforth, 169 Tanner, Brown v. 436 Tarsey’s Trust, In re, 830 Tassell v. Smith, 530 Tate v. Williamson, 148 Withington v. 572, 578 Tatham v. Vernon, 421 Taylor v. Berham, 409 Cockell v, 123 v, Cornelius, 509 v. Coenen, 183 Fluker v. 454 Gibbons v. 366 v. Longworth, 413, 424 McKnight v. 33 v. Meads, 849 Peckham », 228, 230 v. Portington, 420 v. Taylor, 149, 295 v. Taylor et al., 165 Waters v. 637 Telegraph Dispatch, etc., Com- pany v. McLean, 424 Tempest v. Tempest, 497 Temple, Hudson v. 413 Templer, Scholefield v. 115 Tenant, Hulme »v. page 422, n. Tench v. Cheese, 476, 477 Tennant, Harrison v. 640 Terrell, Daw v. 592 xlvili Terry, Darville v. 183 Texas v. Hardenberg, 50 The Alton M. and F. Ins. Co. v. Buckmaster, 720 Thomas, Jones v. 740 Tilley v. 413 Thompson, Bibby v. (No. 1), 233 v. Cartwright, 190 Craft v. 762 v. Finch, 366 v. Hudson, 518, 547, 558, 674, 678 Kirkwood v. 545, 555 v. Planet Benefit Building Society, 17 v. Tomkins, 436 v. Webster, 183 v. Whitmore, 90, 93 Thomson v. Eastwood, 267 Thorn, Waters v. 154, 155 Thornborough v. Baker, 339 ‘Thornbury, Wilson »v. 691 Thorold, Parkin v. 418 Thorp v. Owen, 233 Thurgood, Miller v. 681, 682 Thurman v. Burt, 131 Thwaites, Lambert v. 284 Thynne (Lady E.) v. Glengall (Earl of ), 447, 704 Tidd v. Lister, 495, 891 Tiernan v. Jackson, 435 Tildesley v. Clarkson, 424 Tilley v. Thomas, 413 Tillinghast, Easterbrook v. 285 Tinsley v. Lacy, 775 Tipping v. St. Helen’s Smelting: Company, 770 Todhunter, Pott »v. 183 Toker v. Toker, 200 Tolman, Manningford v. 316 Tollet v. Tollet, 31, 79 Tomkins v. Colthurst, 475 Thompson v. 436 Tomson v. Judge, 154, 155 Topham v. Portland (Duke of), 201 Spencer v. 154 TABLE OF CASES. Torre v. Torre, 89 Torr’s Estate, 493 Torry v. Bank of New Orleans, 160 Tourle, Catt v. 141 Townsend, Garth v. 79 Townshend v. Mostyn, 479, 480 Tracy v. Tracy, 304 Trail v. Baring, 1124 Travis, Waters v. 415 Tribe, Hart v. (No. 4), 233 Wollaston v. 200 Trinder, Mullings v. 424 Trinity College, Cambridge, At- torney-General v. 277 Trist v. Childs, 142 Trotter, Holland v. 762 Trumbull, Edwards ». 592 Trutch v. Lamprell, 366 Truwhitt, Hance v. 683 Tucker v. Burrow, 313 Curnick v. 233 v. Laing, 164 Tullis, Cook v. 439 Turle, Booth v. 179 Turner v. Collins, 149, 150 v. Letts, 616 Liverpool Borough Bank v. 609 v. Nye, 228 Porter, et al. ». 79 v. Sargent, 236 Ward v. 219 v. Wright, 319, 767 Turnley v. Hooper, 183 Turquand, Oakes v. 113 Twiss, Pearmain v. 475 Twyford, Seaton v. 571 Twyne’s Case, 183 Tyler, Scott. v. 139 v. Yates, 40, n., 168, 170 Tynte v. Hodge, 169 Tyrrell v. Bank of London, 158, 160 Bank of London ». 155, 160 Tyrrell’s Case, 231 Tyson v. Jackson, 481 TABLE OF CASES. U. Udall, Kenny ». 814 Underwood v. Wing, 294 Ungley v. Ungley, 448 Union Bank, Bradford v. 89 Union Bank of Georgetown ». Geary, 88 United Guarantee Myers v. 431 United Ins. Co., Lyman v. 89 United States v. Daniel, 82 v. Howell, 164 v. Kirkpatrick, 464 Wanless v. 429 Universal Life Assurance Com- pany, Ex parte, In re Northern Assam Tea Company, 439 Upperton v. Nicholson, 424 Usticke v. Peters, 681 Company, Vv. Vanderberg v. Palmer, 230 Vanderplank, Shadbolt v. 712 Wright ». 33, 149, 151 Vanderstegen, Vaughan v. 856, 857 Vane (Earl) v. Rigden, 382 Vanhythuysen, Barton v. 183, 193 Vansittart v. Vansittart, 419, 823 Van Vechten, Slade v. 365 Van Vronker v. Eastman, 518° Varley, Smedley v. 161 Varna Railway Company, Crampton »v. 405 Vaughan v. Buck, 883 v. Vanderstegen, 856, 857 Veal v. Veal, 220 Verity v. Wylde, 617 Vernon, Tatham »v. 421 Viner v, Francis, 210 Vint v. Padget, 554 xlix Vivers v. Taite, 424 Vivian, Jegon v. 749 Voorhies v. Presbyterian Church, 160 Vorley v. Cook, 112 Voyle v. Hughes, 421 W. W— v. B—, 424, 725, 727 B v, 424, 725, 727 Waddingham, Pyrke v. 424 Wadhams ». Gay, 31 Wainford v. Heyl, 856 Wake, Carter v. 605, 612 v. Conyers, 720 Walker v. Armstrong, 89 v. Drury, 882-4 v. Jones, 580 v. Micklethwait, 59 v. Smith, 155 v. Symonds, 372 Wall v. Colshead, 300 Wallace v. Auldjo, 889 Waller v. Barrett, 383 Wallis, Atterbury v. 187, 190 Walrond v. Walrond, 823 Walters, Hunter v. 114, 115, 133 v. Morgan, 118, 424 Wanless v. United States, 429 Ward, Merriman v. 464 Miss. and Mo., R. RB. v. 770 Mosley v. 689 Samuel v. 698 v. Turner, 219 v. Yates, 883 Ware, Dening v. 183, 421 v. Gardner, 183 Warrick v. Queen’s College, Ox- ford, 749 Warriner v. Rogers, 230, 436 Waters v. Howard, 681 v. Taylor, 637 v. Thorn, 154, 155 v. Travis, 415 Waterworth, Ripley v. 299 E ] TABLE OF CASES. Watkins, Harris v. 302, 304 + Watney v. Wells, 640 Watson v. Lyon, 616 v. Marshall, 883, 884 v. Le Roy, 34 Rose v. 408 v. Watson, 708 v. Wellington (Duke of), 435 Watts, Eaton v. 233 Massie v. 54 Weale v. Ollive, 421 Wearing, Haygarth v. 1124 Weatherford, Roberts v. 704 Webb v. England, 405, 819 v. Hewitt, 164, 657 Webster v. Cecil, 424 Thompson v. 183 v. Webster, 436 Wedderburn, Stocker v. 424, 896 Weguelin, Rankin v. 220 Welch, Mandeville v. 435, 592 Wellington (Duke of ), Watson |. walle as v. 190 v. Maxwell (No. 1), 413 Watney v. 640 ‘Wendell v. Rensselear, 177 Wentworth v. Lloyd, 33, 160 Wesley, Rehden ». 355 West, Baxter v. 640 Brashears v. 435 Charlton v. 704 Plenty v. 477 West Mostyn Company, Mostyn v. 117 Wheatcroft, Allsopp v. 141 Wheaton v. Peters, 774 Sexton v. 183 Wheeler v. Howell, 304 Robinson v. 762 v. Smith et al., 165 v. Smith, 233 Wheelwright, Robinson v. 833 Whelan v. Whelan, 165 en McCarogher 2. 704, 0 Whimper, Daking v. 193 Whitaker, Darbey v. 440 Eaton v. 448 Whitbread, Macnab v. 283 v. Smith, 574 White, Alderson v. 506 Ford v. 598 v. Grane, 806 Harcourt v. 33 McDonell v. 33 Pegler v. 424 Rolt v. 112, 439 Smith v. 145 White’s Trusts, Re, 284 Whiting v. Burke, 634 Whitley v. Whitley, 681 Whitmore, Thompson ». 90, 93 Whitney v. Smith, 353 Whyte, Goddard v. 655 Wickens, Aberaman Iron Works v. 415 Wickham, Graham v. (No. 1), 714 Rawlins v. 112 a, 640 Wicks v. Scrivens, 554, 555 Widmore, Blandy v. 51, 316 Wiginton, Worthington v. 692 Wiggins v. Burkham, 457 Wilbanks +. Wilbanks, 681 Wilcocks v. Wilcocks, 51, 316 Wilcox v. Wilcox, 647 Wilde v. Milne, 644 Wilders, Sutton v. 357 Wilkins, Attorney-General v, 34 v. Sibley, 381 Wilkinson, Castle v. 416 v. Clements, 424 v. Dent, 681 v. Fowkes, 39 v. Lindgren, 275 v. Wilkinson, 140 Willard, Cole v. 712 v. Eastham, 856 Willes v. Greenhill (No. 1, 2), 436 Williams v. Bayley, 131 v. Evans, 447 2, Headland, 383 Nanney ». 155 TABLE OF CASES. li Williams, Rosher v. 193, 194 Strong v. 712 v. Williams, 125, 313, 754 Williamson, Tate v. 148 Willings, Consequa v. 85 Willis, Cochrane v. 87, 424 Radford v. 424 Willows, Spirett v. 183, 830, 883 Wills v. Bourne, 496 Wilson v. Bell, 808 v. Dunsany (Lady), 504 Gregory v. 676 Liverpool Marine Credit Company v. 608 v. Lloyd, 164 Newman »v. (No. 2), 883 v. Northampton, ete., Railway Company, 405 v. Thornbury, 691 v. Wilson, 89, 101, 535, 894, 896° Wright v. 123 Winchelsea (Earl of ), Dering »v. 633 Windhan, Bessey v. 183 Windross, Middleton v. 681 Wing, Underwood. v. 294 Winter, Bagshaw v. 883, 884 Wintour »v. Clifton, 681, 682, 690 Withington v. Tate, 572, 578 Witt v. Amis, 220 Amis v. 220 Wolferstan, Jervis v. 392a, 393 Wollaston v. Tribe, 200 Wolterbeek v. Barrow, 89 Wonham, Dally v. 160, 169 Wood, Barnes v. 187 v. Ordish, 475 Woodford v. Charnley, 421 Woods, Hilton v. 430 Woolam v. Hearn, 449 Wooldridge v. Norris, 164 Woolley, Blatchford v. 856, 857 Woolridge v. Woolridge, 681 Wormald, Cooper ». 376 Wormsley’s Estate, In re, 483 Worseley v. De Mattos, 247 Worthington v. Wigington, 692 Wright, Dixie v. 409 v. Goff, 89 Lincoln v. 179 v. Maidstone (Lord), 76 Turner v. 319, 767 v. Vanderplank, 33, 149, 161 v. Wilson, 123 Wyatt, Johnson v. 668 Wyke v. Rogers, 164 Wylde, Verity v. 617 Wynch +. Grant, 374 Wyndham, Bennett v. 357 Wynn, Green.v. 164 Wythe v. Henniker, 498 XY Yale v. Dederer, 856 —. Yates, Tyler y. 40, 168, 170 Ward v. 883 Yelverton, Bubb v. Ex parte Hastings, 768 Young, Chaplin v. (No. 2), 365 v. Young, 477, 530 A MANUAL OF EQUITY JURISPRUDENCE. INTRODUCTION. SECTION I. OF THE NATURE OF EQUITY JURISPRUDENCE, AND THE EXTENT OF EQUITY JURISDICTION. To explain the true nature of Equity Ju- piseutty risprudence with brevity, perspicuity, and *2¢mpere accurate precision, is a task of great difficulty: ‘"1"- on account of the mixed character of the science, and the immense extent of learning which, for this pur- pose, it is necessary for the mind to survey at one and the same time. It is most important, however, that some attempt be made to accomplish this before the reader’s attention is directed to the particular doctrines of the vast system, the principal features of which it is the design of these pages to delineate. 1. 1 See Story’s Com., Ch. I, passim. 1 2 NATURE AND EXTENT OF EQUITY. sistelbiow The writer believes it is impossible to give of Favity a short definition of Equity Jurisprudence dence. without either 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 contradistinguished from . natural, abstract, and universal Equity, and from Law and the Statutory Jurisprudence of the Courts, may be described to be a portion of justice or natural equity, not embodied in legislative enactments or in the rules of the Common Law, yet modified by a due regard thereto, and to the complex relations and convenience of an artificial state of society, and administered in re- gard 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 inconvenience to the community, but where, as to such particular rights, the Courts of Law could not, or originally did not, clearly afford any relief or adequate relief, at least not without cir- cuity of action or multiplicity of suits, or did not make such restrictions, adjustments, compensations, qualifi- cations, or conditions, as might be necessary in order to take due care of the rights of all who were interested in the property in litigation. Although there may possibly be some peculiar cases which may at first sight be thought to prove this description to be faulty, yet it will probably appear, on closer consideration, that such cases (if any such there are) are not to be re- garded as illustrative of the general character of Equity Jurisprudence; and it will probably be found, and the NATURE AND EXTENT OF EQUITY. 3 following observations may tend to show, that such description conveys a just notion of the true nature of that science. 2. I. In the most general sense, Equity is sequtey cite synonymous with natural justice.’ But jisppdence ‘Equity, as contradistinguished from Law, Ponymens and as administered in our Courts of Equity, ™ Juste has a much narrower and an otherwise different signi- fication. Many matters of natural justice, by the Equity Jurisprudence of this and every other civilized nation, are left to be disposed of in foro conscientic, from the difficulty of framing any general rules to 1 See St. 2.1, 2.* * Equity, as applied to Jurisprudence, does not comprehend the broader principles of universal law, which are properly embraced in the more extended import of the term Natural Equity, or what is sometimes called Moral Equity. Story’s Eq. Jur. @ 1-24. Equity Jurisprudence, as a distinct branch of the law, is the complement of legal administration, whereby through defect of evidence, or from imperfect procedure, it is unable to afford that ample and specific redress for all injuries, which Courts of Equity may do, by requiring the defendant to answer upon his conscience, by reforming mistakes in written contracts, and by injunctions, both restrictive and mandatory, and in many other ‘ways. It is that portion of remedial justice which is administered exclusively by Courts of Equity. Equity will not relieve against any defect, imperfection, or abuse of the law itself, but only against the un- conscionable claims and abuses of the parties. Courts of Equity can give no different construction to the law, whether written or customary, from that which must govern Courts of Law. They are equally bound by precedents with Courts of Law. Courts of Equity afford relief in regard to those rights recognized by the Jurisprudence of the State, where the remedy of law is doubtful, inadequate, or incomplete. Story’s Eq. Jur. 2 25-34. 4 NATURE AND EXTENT OF EQUITY. meet them, and from the mischief and inconvenience which would arise from attempting judicially to en- force 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.’ 3. And, on the other hand, setting aside that body of natural justice which is comprised in statutory provi- sions, a vast proportion of what is specifically de- nominated Law (as contradistinguished from what is technically designated Equity), has been reared up in- dependently of legislative enactments or arbitrary or conventional rules, and consists, in the main, of a sys- tem of natural equity or justice, modified so as to be adapted to the manifold and complicated relations and exigencies of a highly artificial state of society? And as to the construction of statutes, a Court of Law is bound to interpret them according to the intention of the legislature, as much as a Court of Equity ; indeed, both adopt the same principles of interpretation. 4. So that, on the one hand, natural justice or equity was 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 ap- plied in an unmodified form, but is qualified (as we shall see in the third section and in subsequent pages) by a due regard to legislative enactments and the rules 1 See St. 2 2, 8, note, and 3 14; 1 Sp. 447, n (d). ® See St. 2 7, 8, notes, and @ 20, 34. 3 See St. 3 15. NATURE AND EXTENT OF EQUITY. 5) of the Common Law, and to the varied and compli- cated relations and the general convenience of the sub- sisting order of things. 5. The truth, then, appears to be this: first, that a large portion of natural equity is left tion St bat. to be administered in foro conscientic ; be- hates cause in addition to the difficulty of pro- °°" pounding precise rules, applicable to all cases, a greater detriment and inconvenience to the community would probably ensue from attempting 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. rar ee Secondly, that another large portion of nat- “large por- ural equity was always administered by the always ad- Courts of Law, and is denominated Law in Gr cours of contradistinction to what is technically ai termed Equity. And thirdly, only a portion, there- fore, of natural equity, and that in a modified form, is administered in a Court of Equity; and ; that portion is specifically and technically arumines . S ‘oe . tered in called Equity, in contradistinction as well to courts of . . eqfiity is the two other portions of equity, or to natural, therefore fs . ‘* ? only a por- abstract, and universal equity or justice tion a ral justice, i i 1 ni: andina in general, as to legislative enactments, and in a and arbitrary, feudal, or simply conven- form. tional rules. 6. TI. 1. There were particular rights which = came within some general class of rights en- there is no ‘ aes, @ remedy at forced at Law, or capable of being judicially taw, ana a se p 1 A a equity had exclusive enforced, not only in particular instances, pee and to the benefit of particular individuals, 6 NATURE AND EXTENT OF EQUITY. but in all cases, and to the advantage of the commu- nity at large; and yet there were no forms of action by which relief could be obtained in respect of such par- ticular rights, and they were consequently left to con- science by the Courts of Law; but being capable of being enforced by proceedings in Equity, and being of a character demanding judicial sanction and interposi- tion, Courts of Equity readily interfered and afforded relief. In these cases, therefore, Courts of Equity had exclusive jurisdiction. This, for example, was the case with trusts, for the most part; with the right to relief in many instances of accident, mistake, fraud, penalties, and forfeitures; and, in most cases, with the right to protection against anticipated loss or injury.’ 7. Wher 2. There were many other cases, in which equity as". the kind of relief which was afforded by sumed juris- diction on. Courts of Law was inadequate, but in which tnaevarine Courts of Equity could give the precisely een appropriate relief. For example, Equity would often enforce the specific performance of a con- tract ; whereas Courts of Law could only give dam- ages for the breach thereof.? 8. srtocae There were also cases in which adequate cireuity of and complete relief could be had at Law, multiplicity but in order to obtain it, circuity of action ’ or multiplicity of suits was necessary ; whereas complete justice could be done by a single suit in Equity? 9. 1 See St. 2 29, 962. ? See St. 2 30, 33.* 5 See St. 2 64 k, 496, 621, 853, 854. * See Adams’s Equity, Intr. xxxv. NATURE AND EXTENT OF EQUITY. 7 Again: Courts of Law could not do more 6, 4 taxe than pronounce a positive judgment in a fhe iante settled form, either for the plaintiff or the "5 defendant, irrespective of the peculiar circumstances of the case; whereas Courts of Equity could adapt their decrees to all the various circumstances which might arise, and could take due care of the rights of all who were in any way interested in the property in litiga- tion.” 10. In these three classes of cases, Equity had a concur- rent, and practically an exclusive jurisdiction. Indeed, in some, if not in all of the last class of these cases, Equity used to assert an exclusive jurisdiction by granting an injunction against proceedings in other courts.” 11. The necessity for a discovery in a Court of 6, on ac- Equity furnished a ground of jurisdiction for foon.in he relief in a great variety of cases. For the *ve7y- court, having acquired cognizance of the suit for the purpose of discovery, would frequently entertain it for the purpose of relief.2 12. 1 See St. 2 26-28, 437. 2 See Title II, Chap. I, infra. 9 St. 2 691, 692.* * There is a difference between the English and American Courts as to the extent of the jurisdiction for relief, as consequent upon discovery. In the United States the more convenient doc- trine obtains, and where the discovery is effectual, the court will go on and give adequate relief, if in its power, to prevent multi- plicity of suits, unless where there is an action pending. St. Eq. Jur. 371, 456; Adams’s Eq. 20, note 1; Russell v. Clark’s Ex’s, 7 Cranch, 69. See also Oelrichs v. Spain, 15 Wall. 211. 8 NATURE AND EXTENT OF EQUITY. omeaeore i rts of Law CAE OnTHS And in cases where the Cou original 4e- originally did not afford adequate relief, reliefoflaw. Qourts of Equity exercised a concurrent ju- risdiction, unless prevented by a legislative enactment, even though the Courts of Law subsequently gave such relief. For they could have no power to circumscribe the jurisdiction of Courts of Equity.’ 13. orthedount. And so if it was doubtful whether the fuinies Courts of Law could give such relief, the such relief. Courts of Equity had jurisdiction. 14. 3. In some cases a matter was most properly cog- ‘SHhuene nizable at Law, and Courts of Law could equity bad always have afforded due relief, had they jurisdiction. possessed that evidence which a Court of Equity could obtain, but which a Court of Law for- merly could not obtain. In these cases Courts of Equity used to have an auxiliary jurisdiction to pro- vide the Courts of Law with that evidence.’ 15. Where it 4. Where it was'clear that the Courts of risdiction. Law could always afford adequate relief, without 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 were interested in the property in controversy, Equity had no jurisdiction.’ 16. And Courts of Law and Equity are in general alike ousted in the case of internal disputes between the 1 See St. @ 641, 81; 2 Sp. 16. 2 See St. 3 64k, 673.* ® See St. ¢ 33, 684 a and c, 686; 1 Sp. 408, 420; 2 Sp. 16. * Adams’s Eq. 1-22. NATURE AND EXTENT OF EQUITY. 9 members of a building or other friendly society and the society itself, or any of the officials of the society and the society itself, where the Act of Parliament under which it is constituted, or the Friendly Societies Act, provides that such disputes shall be settled by arbitration.* 17. Nor, as already observed, have Courts of Equity any jurisdiction as to those classes of rights which could not be judicially enforced without occasioning a greater general mischief or inconvenience than that which results from leaving them to be disposed of in foro conscientie.t 18. It will be seen from the next section that both the Equity and Common Law Jurisdiction have been the subject of very great alteration by the Judicature Acts. 19. * Thompson v. Planet Benefit Building Society, L.R., 15 Eq. 333. + In America, Equity Jurisprudence had its origin at a far later period than the Jurisdiction properly appertaining to the Common Law, and has grown up chiefly since the formation of the National government ; as at present exercised in this country, it is founded upon, coextensive with, and in most respects conforma- ble to, that of England. The Constitution of the United States has, in one clause, conferred on the Federal judiciary cognizance of cases in Equity as well as in Law, and the uniform interpretation of that clause has been, that, by cases in Equity, are meant cases which, in the Jurisprudence of England, are so called, as contra- distinguished from cases of the Common Law. In nearly all the States in which Equity Jurisdiction is recognized, it is now ad- ministered in the modes and according to the forms which apper- tained to it in England. St. Eq. Jur. 3 56-58. And, as a general tule, in America, State courts have that jurisdiction which is con- ferred upon them by statute, and the statutes which derogate from or add to the Common Law powers of courts are generally strictly construed. St. Eq. Jur. ¢ 33, note. 10 GENERAL EFFECT OF EQUITY. SECTION II. OF THE GENERAL EFFECT OF THE JUDICATURE ACTS, AS REGARDS EQUITY JURISDICTION AND JURISPRU- DENCE. Se THE Judicature Acts, 1873 and 1875, almost en- tirely relate to Pleading and Practice, and not to Juris- prudence, which is the exclusive subject of this Manual and the author’s Manual of Common Law. They do not make any general fusion of Law and Equity. But the first Act (see Appendix) consolidates the dif- ferent Superior Courts by which Law and Equity are administered into one Court, which is divided into several “ Divisions.” And section 24 (Appendix) enables every Judge of the Court to deal concurrently with matters of Law and Equity arising between the same parties, except so far as by section 34 certain business is assigned to particular Divisions of the Court. Subsection (7) of section 24 enables the High Court of Justice and the Court of Appeal to “grant, either absolutely or on such reasonable terms and conditions as to them shall seem just, all such remedies whatso- ever as any of the parties thereto may appear to be entitled to in respect of any and every legal or equi- table claim properly brought forward by them respec- tively in such cause or matter; so that, as far as possible, all matters so in controversy between the said GENERAL EFFECT OF EQUITY. 11 parties respectively may be completely and finally de- termined, and all multiplicity of legal proceedings con- cerning any of such matters avoided.” And section 89 gives similar powers to the Judges of Inferior Courts, to the extent of their jurisdiction. Section 25 (Appendix) makes a few changes in certain specific points of Jurisprudence, which are noticed in the proper places in this Manual. And section 25 also comprises the important enactment (clause 11, Appen- dix), “that generally in all matters, not hereinbefore particularly mentioned, in which there is any conflict or variance between the rules of Equity and the rules of Common Law with reference to the same matter, the rules of Equity shall prevail.” 20. 12 GENERAL MAXIMS. SECTION ITI. OF THE GENERAL MAXIMS OF EQUITY JURISPRUDENCE. Iw addition to those maxims which are acted upon as well in Courts of Law as in Courts of Equity, and besides various other maxims which in terms apply to particular parts of the Equity system, there are certain general maxims peculiar to Equity, which it is of the greatest use rightly to understand and to bear in mind whether in reading or in practice. 21. ; I. Itis a maxim, that Equity will not suf- vithouta’ fer a right to be without a remedy.’ It will mne’y ‘be evident from the first section that this lies at the very foundation of a large proportion of Equity Jurisprudence, as a suppletory system. But it will also appear from the observations made in that section, that this maxim must be regarded as referring exclusively to rights which come within a class of rights enforced at Law, or capable of being judicially enforced without occasioning a greater detriment or inconvenience to the public than would result from leaving them to be disposed of in foro conscientic. And it must also be understood to refer to cases where the party who is remediless at Law has not sacrificed or lost his remedy by his own act or laches,? and where there was no equal or superior adverse right. And there are some exceptive cases of claims of natural jus- ' 1 Cru. Dig. X. 1, 50. 2 See St. 2 684 a and c. GENERAL MAXIMS. 13 tice capable in themselves of being enforced with pro- priety, but to which neither the Common Law nor Equity give any remedy : as in the case of the exemp- tion at Common Law of the lands of deceased debtors from the payment of debts—an exemption which has been removed by certain statutes, particularly by 3 and 4 Will. 4, ¢. 104.1 22. II. But not only will Equity often ad- minister a remedy where the Law would not will ddmin- give any relief, but it will also afford relief, femedy,"” as we have already seen, where the Courts of sowie notte Law originally did not clearly give adequate Sie oti and complete relief, at least without circuity of action or multiplicity of suits, or could not take due care of the rights of all who were interested in the property in litigation. 23. IIT. But, as we have also seen, where it is clear that the Courts of Law did always ¢y minwoe afford adequate and complete relief without where fe the aid of a Court of Equity, and without hee oul circuity of action and multiplicity of suits, a and could take due care of the rights of all “"*” persons interested in the property in litigation, there Equity has no jurisdiction. 24. Thus, where there was always an adequate syustration and complete remedy at Law for the recov- ee ae ery of rent, either by an action or distress, ""* no suit will be entertained in Equity, although the remedy in Equity may be more beneficial. The cases 1 See 1 Sp. 174, 417; and Smith’s Compendium of the Law of Property, 5th ed., par. 1366. 14 GENERAL MAXIMS. in which a suit is commonly entertained in Equity for this purpose are such as stand upon some peculiar equity ; as where the premises out of which the rent is payable are uncertain; or where the time or amount of the payment is uncertain; or where a discovery or an apportionment was wanted ; or where the remedy at Law is obstructed or evaded by fraud, or is gone with- out laches; or where none ever existed; or where it was inadequate, incomplete, or doubtful." 25. IV. Although Equity would go beyond followsine the Law in supplying a remedy i in the cases sai above mentioned, yet it is a well-known maxim that Equity follows “the Law.’ The reason is, that there may be uniformity of decision.® 26. The true meaning of this maxim would seem to be, that Equity is governed by legislative enactments and the rules of Law, in regard to legal estates, rights, and interests; and that it is regulated by the analogy of such legal estates, rights, and interests, and the legis- lative enactments and rules of Law affecting the same, in regard to equitable estates, rights, and interests, where any such analogy plainly subsists; if, in each case, there are no peculiar circumstances rendering it absolutely necessary to deviate from this rule, or crea- ting an equitable obligation in one of the litigant parties, and an equitable correlative right in favor of another litigant party, and requiring a different course to be taken in the particular case, without overturning or destroying the general application of any legislative 1 See St. 4 684-687. ® See St. 2 64 a, b; 1 Sp. 419, 420. 3 2Sp. 359, n. (a). GENERAL MAXIMS. 15 enactments or rules of Law that may, in terms or by analogy, apply to the case. 27. There may indeed be cases in which Equity has fol- lowed the Law, even where there have been such pe- culiar equitable circumstances. But it is conceived that these must be cases in which the Court has (per- haps improperly) declined to exercise the authority which it really possessed and has ordinarily exerted. 28. To affirm that Equity follows the Law in any less limited sense than that above pointed out, would be to negative the existence of a large portion of Equity Jurisprudence, if not to assert that there is no such thing as Equity as distinct from Law. But to affirm that Equity follows the Law, in the restricted sense above’ pointed out, is merely to assert what is un- questionably true and most important to be remem- bered, namely, that Equity will suffer legislative enactments and the rules of Law to govern, and the course of Law to proceed, as far as it can without sacrificing claims grounded on peculiar circumstances which render it incumbent upon a Court of Equity to interpose, in accordance with the maxim previously mentioned, that Equity will not suffer a right to be without a remedy. 29. In illustration of the maxim, as it applies jyuctra- to equitable estates, rights, and interests, it tion ofthe may be observed that the limitations by [2837.0 which equitable estates and interests are ““* created by way of trust executed, that is, a trust formally and finally declared by the instrument crea- 16 GENERAL MAXIMS. ting it, are construed in the same manner as similar limitations of legal estates and interests would be con- strued in a Court of Law; so that, for example, what would create an estate tail in the one case, will create Maximdocs 22 @state of the same kind in the other case. not apply to But such a constructive assimilation does not upeoe always take place in regard to equitable estates and interests created by way of trust executory, which, as opposed to a trust executed, is a trust not formally and finally declared by the instru- ment creating it, but intended to be so declared by some future instrument. For, in the case of trusts executory, there is often no substantial analogy, form- ing a ground for such assimilation; because in many ‘cases, the words are not so much actual limitations, such as those by which legal estates and interests are created, as instructions or intimations as to the mode in which the author of the trust wishes the property to be settled by some future conveyance, settlement, or assurance, referred to in the instrument creating the trust ; and therefore the words are to be construed ac- cording to the intent of the party, as presumable from the nature of the case, or from the other parts of the instrument, rather than according to what would be the strict operation of the words, supposing them to be actual limitations contained in a formal and final instrument.’ 30. 1 As to these trusts, see Smith’s Executory Interests, annexed to Fearne’s Treatise, ¢ 489-502, and % 601-637 ; Lord Glenorchy v. Bosville, 1 White and Tudor’s Lead. Cas. Eq., 4th Am. ed. 1, et seq. Saunders v. Edwards, 2 Jones’s Eq. 134. GENERAL MAXIMS. 17 In illustration of the qualification that mastra- : tions of th Equity follows the Law only where there gualifica- : . tion added. are no such peculiar circumstances as above in the mentioned, it may be observed that Equity statement follows the Law in regard to the rule of meaning. of : : . the maxim. primogeniture, although that rule in any 1, oF pri- particular instance in which it is so followed, ™oseniture. may be productive of the greatest hardship towards all the younger members of a large family who, in one sense, by the operation of the. rule, may be left with- out any sort of provision, whilst the eldest son may be placed in a state of the greatest affluence. But these are not peculiar circumstances creating an equitable right to relief in favor of the youngest children against the eldest son, and demanding the interposition of a Court of Equity. The mere absence or want of a pro- vision, which may have arisen from the culpable neg- lect of the parent, can create no equity against the eldest son. He has a right to the descended or en- tailed estate, without any reference to the circumstances of the other members of the family; and the mere fact that they have not been provided for by their parent, can impose on the eldest son no obligation in a Court of Equity to divest himself, and can give the younger children no equitable right to strip him of that provision which the Law has appointed him. No relief could be given in such a case as this without di- rectly derogating from a rule of Law, which a Court of Equity has no power todo. But if an eldest son should prevent his father from executing a will devis- ing one of his estates to a younger brother, by promis- 2 18 GENERAL ‘MAXIMS. ing to convey the estate to such younger brother, although that estate would at Law descend to the eldest son, a Court of Equity would doubtless inter- pose, and prevent the eldest son from asserting any claim to it.| So Equity will often support the defective execution of powers, where at Law the act would be wholly nugatory.?_ And in cases Statute or Under the old Statute of Limitations,’ Equity limitations. Often interfered, notwithstanding the time fixed by the statute had expired, where it would have been inequitable to have allowed the statute to be a bar; as when a person perpetrated a fraud, which was not discovered till the statutory bar applied at Law; or where a person carried on an unfounded litigation, protracted so as to subject his adversary to the statu- tory bar at Law.‘ But although in these cases Equity did not follow the Law, yet it did not overturn or 1 St. 2 64, ® St. @ 64a; Tollet v. Tollet, 1 White & Tudor’s Lead. Cas. Eq.. 4th Am. ed. 227, et seg.*- : . 3 21 Jac. 1, c. 16. ‘ St. 31521; 2 Sp. 62. Powers, * Where forms are imposed on the execution of a power, the circumstances must be strictly adhered to, to constitute a good exe- cution in Law (Pepper’s Will, 1 Pars. Eq. 436), and the remedy to aid an imperfect execution is, in Chancery, only where it pro- ceeds upon the ground of compelling parties, in respect of the con. sideration, to supply a defect in their acts. Sinclair v. J ackson, § Cowen, 544, 588. And a Court of Equity will not enforce a voluntary contract 0 unexecuted gift. Where the transaction is incomplete, and ther is no consideration, the Court will not complete what it finds im- perfect. Wadhams »v. Gay, 73. Ill. 415. GENERAL MAXIMS. 19 destroy the general application of the enactment. It only refused to apply it in particular instances where there were peculiar circumstances creating an equitable right to relief, demanding the interposition of the Court in its support, and capable of being enforced without at all derogating from the general application of the enactment in question. So far from derogating from the Statute, Equity was regulated by analogy to the Statute as to the precise time fixed for asserting equitable titles and claims to which the Statute did not apply. 31. Where an Act of Parliament has created ,stachment a particular remedy at Law, the Court is not °f debts. bound to create an analogous remedy in Equity, even where the remedy at Law is unavailable. And hence a judgment creditor: cannot obtain a charge in Equity on an equitable debt, by analogy to an attachment of a legal debt under the Garnishee clauses of the Com- mon Law Procedure Act, 1854.2 32. V. It is a maxim that, vigilantibus non “ . ° ei . . 5. Vigilan- dormientibus cequitas subvenit: the meaning tious non dormientibus of which is, that Equity discountenances cquites sub- laches, and, independently of any Statutes al of Limitation, has always refused to interfere where there has been gross laches in prosecuting rights, or long and unreasonable acquiescence in the assertion of 1 See St. @ 64 a, 1520; 2 Sp. 60,61. And for other illustra- tions of the qualifications of the rule above stated, see St. 2 476, 480, and Title II, Chap. III, on Express Trusts, infra. ? Horsley v. Cox, L. R., 4 Ch. Ap. 92. , 20 GENERAL MAXIMS. adverse rights... And the mere assertion of a claim, unaccompanied by any act to give effect to it (as by taking legal proceedings to enforce it) will not avail to keep it alive.2 In the case of laches, it would in many cases be impossible to interfere, without doing injustice to third persons who had acquired interests in the property during the intervening period. Thus, the right of a creditor to make legatees refund may be lost by laches.? In general nothing can call forth a Court of Equity into activity but conscience, good faith, and reasonable diligence.* “ It has been beauti- fully remarked, with respect to the emblem of Time, who is depicted as carrying a scythe and an hour- glass, that while with the one he cuts down the evi- 1 St. 2 959 a, 1284 a, 1520; Baker ». Read, 18 Beav. 368; Wright v. Vanderplank, 2 K. & J. 1; Alloway v. Braine, 26 _Beay. 575; Robertson v. Norris, 1 Gif. 421; Gresley v. Mousley, 1 Gif. 450; 4 D. & J. 78; Bright v. Larcher (No. 2),4D. & J. 608; Harcourt v. White, 28 Beav. 303; Bright v. Legerton, 2 D. F, & J. 606; Blagrave v. Routh, 8 D. M. & G. 620; Laver ». Fielder, 32 Beav. 1; Hodgson v. Bibby, 32 Beav. 221; Downes v. Jennings, 32 Beav. 290; Wentworth v. Lloyd, 32 Beav. 467; Strange v. Fooks, 4 Gif. 408; McDonnel v. White, 11 H. L. Cas. 570; Barwell v. Barwell, 34 Beay. 371; Seagram v. Knight, L. R., 3 Eq. 398.* ? Clegg v. Edmonson, 8 D. M. & G. 787. 3 Ridgway v. Newstead, 2 Gif. 492; Lehman +. McArthur, L. R., 3 Ch. Ap. 496. 4 2 Sp. 60, 61. * Kane v. Bloodgood, 7 Johns. Ch. 93; Prevost v. Gratz, 6 Wheat. 481; Hughes v. Edwards, 9 Wheat. 489; McKnight v. Taylor, 17 Peters, 197; s.c., 1 Howard Sup. Ct. 151; Story Eq. Pleading, 4 818, 814; Boone v. Chiles, 10 Peters, 177; Harrison »v. Gibson, 23 Grat. (Wa.), 212. GENERAL MAXIMS. 21 dence which might protect innocence, with the other he metes out the period when innocence can no longer be assailed.’”" 33. VI. Where there is equal Equity, the law 4 where must prevail; in other words, if the defend- (here's ant has a claim to the protection of a Court 3.06.0" of Equity, equal to the claim which the ‘“” plaintiff has to the assistance of the Court, there the Court will not interpose, but will leave the matter as it stands. It is upon this account that a Court of Equity refuses to interfere against a bond fide pur- chaser for a valuable consideration without notice of the adverse title, if he is in possession, or has purchased from an apparent owner in possession, and if he chooses to avail himself of the defence at the proper time and in the proper mode? 34. VII. Another maxim is, that Equality is 7 pouarity Equity, or, that Equity delighteth in Equal- + ¥vity. 1 Bright v. Legerton, 2 D. F. & J. 617. 2 St. ¢ 64.c, 436; 2 Sp. 733; Basset ». Nosworthy, 2 Lead. Cas. Eq., 2d ed. 1, et seg.; Attorney-General v. Wilkins, 17 Beav. 285; Greenslade v. Dare, 20 Beav. 284; Lane v. Jackson, 20 Beav. 535; Colyer v. Finch, 5 H. L. Cas. 905, 920; Ogilvie v. Jeaffre- son, 2 Gif. 353, 379; Clemow v. Geach, L. R., 6 Ch. Ap. 147; Pilcher v. Rawlins, L. R., 11 Eq. 53; reversed, L. R., 7 Ch. Ap. 259. See also Carter v. Carter, 3 K. & J. 617 ; Heath v. Crealock, L. R., 10 Ch. Ap. 33.* * Newton v. McLean, 41 Barb. 285; Sugden on Vendors (7th edit.), Ch. 16, pp. 718, 757, 762, 763; Story Eq. Pl. 2 603, 604, 805, 806. The general rule, that priority in point of time gives priority in point of right, is recognized by Courts of Equity, as well as by those of Common Law. Watson v. LeRoy, 6 Barb. So. C. 485; Boone v. Chiles;-10 Peters, 177. “In order, however, that 22 GENERAL MAXIMS. ity! Acting on this principle, Equity leans strongly against joint-tenancy, as it is attended with tondrawn the inseparable incident of the right of sur- ease of'a vivorship. or, although it is true that chee ae each joint tenant may have an equal chance weer GE being the survivor, yet this is but an equality in point of chance ; as soon as one dies, there is an end to the equality between them ; on that event the whole accrues to the survivor. And the equal certainty of having an absolute equal share, or a share proportionate to the amount of the purchase-money advanced, which is an equal share so far as the justice of the case will permit, is considered in Equity far better than an equal chance of having the whole or none of the property purchased. ‘The former is con- sidered to be the true and just equality. And there- fore, if two persons jointly purchase, or take a mort- gage of an estate, and advance the purchase or mort- gage money in unequal proportions, Equity, on the death of either of them, acting on the maxim that Equality is Equity, will hold the survivor a trustee for the representatives of the deceased, as to a share 1 St. 2 64 f. this maxim may operate, it is essential that the equities be equal. If they are unequal the superior equity will prevail; and such superiority may be acquired under any of the three following rules: (1.) The equity under a trust, or contract in rem., is supe- rior to that under a voluntary gift, or under a lien by judgment. _(2.) The equity of a party who has been misled, is superior to his who has wilfully misled him. (3.) A party taking with notice of an equity, takes subject to that equity.” Adams’s Eq. 148. GENERAL MAXIMS: Ww proportionate to the amount of the money so advanced by him.’ And this furnishes another illustration of the violation of the terms of the maxim, that Equity follows the Law, though not of the qualified and trué sense of that maxim as above explained. 35. , VIII. Another maxim is, that he who . . . 8. He who comes into a Court of Equity must come comes into with clean hands. So that if a person seeks come with to cancel, set aside, or obtain the delivery aes up of an instrument on account of fraud, jnustration and he himself has been guilty of wilful a feaualtent participation in the fraud, Equity will not ‘*°s*U°* interpose in his behalf, unless the fraud is against public policy, and public policy would be defeated by allowing it to stand? 36. The rule must be understood to refer to . : : Qualifica- wilful misconduct in regard to the matter tiou of the. in litigation, as in the foregoing example, ” and not to any misconduct, however gross, which is ‘unconnected with the matter in litigation, and with which the opposite party in the cause has no con- cern. 37. IX. It is also a maxim, that he who 9 tewno seeks equity, must do equity? 38. ae The meaning of this is, that he who seeks °*"""” equity, must do equity in the-transaction in respect ‘of which relief is sought ; for the rule does not reach 1 See St. 2 1206; Lake v. Gibson, 1 White & Tudor’s Lead. Cas. Eq., 4th Am. ed. 264, et seg. : ® See St. 4 695. -* Bt. @ 64 0,707 51 Sp. 422. 24 GENERAL MAXIMS. so far as to affect any other transaction than that in respect of which the relief is sought.’ 39. Iustration LO give an illustration of this maxim, a gusurious, Court of Equity will not set aside a usurious transaction. transaction on a bill filed by the borrower, unless upon the terms that he will pay the lender what is bond fide due to him.(a) It must not be in- ferred from this, however, that the Court will oblige the borrower to pay what is so due, on a bill filed by the lender to enforce his claim ;? for that would be contrary to the maxim, that he who comes into Equity must come with clean hands. 40. 10. Equity It isa maxim, that Equity looks upon looks on that.as done which ought to be done.? This Gone ots maxim is acted on in some cases (as in the ve case of agreements) in favor of persons who have a right to ask that acts might be done, so as virtually to place them, as near as may be, in the same advantageous position as if those acts had been done in the way in which, and at the time when, they ought to have been performed.‘ 41. 1 Wilkinson v. Fowkes, 9 Hare, 592; Gibson v. Goldsmid, 5 D.M. & G. 757.* 2 See St. 2 64. €. 3 2 Sp. 253, et seq. 4 See St. 2 64 g; 2 Sp. 264; and see Title I], Chap. VIII, infra, * Perry on Trusts, 2 626 et seg. ; Adams's Eq., note [191]; Com- stock v. Johnson, 46 N.Y. 615. (a) The usury laws are abolished by the stat. 17 & 18 Vict. c. . 90, except those relating to pawnbrokers, and except as regards transactions prior to the 10th of August, 1854. But the repeal of the usury laws has not affected the right of the Court to give re- lief against unconscionable bargains. Miller ». Cook, L. B.10 Eq. 641, 646; Tyler v. Yates, L. R. 11 Eq. 265. GENERAL MAXIMS. 25 As a consequence of this maxim, money directed to be employed in the purchase of land, and land directed to be turned into money, are in general regarded as that species of property into which they are directed to be converted,! that is, either immediately, or at some future time, according to circumstances.” And where the intention in mar- riage articles is plain, that a conversion should be made, but consents of the parties interested to the actual purchase cannot be obtained as required by the instrument, by reason of their deaths or for some other cause, if any convenient purchase could have been obtained, the Court will take upon itself to judge whether such consents ought to have been given, and the conversion being the paramount object, it will be considered as made. If this were otherwise, the parties to consent would have the option of determining whether the property should be real or personal, which, unless it be clearly given to them, will not be permitted. An equitable conversion of land into money, or of money into land, takes place by force of the direction, notwithstanding the conversion or in- vestment is directed to be made with the approbation of certain parties; and legatees of legacies out of a property directed to be converted with the consent of the tenant for life in writing are entitled to their legacies, whether the property be converted or not; and the residuary legatees of the proceeds are entitled, Conversion. 1 2 Sp. 256-8; and infra, Title II, Chap. VIII, 2 4. 2 2 Sp, 258, 3 26 GENERAL MAXIMS. subject to the legacies, to the estate itself, if not con- verted.” 42. Money devised or contracted to be laid out in land will pass under a devise of all the testator’s messuages, lands, tenements, and hereditaments.’ 48. Real estate may be so constructively converted as to be liable to legacy duty.? 44. The persons to whom property directed to be con- verted is limited, and those who stand in their place, are entitled to enforce the conversion, either actually or virtually. But a stranger (such as the Crown or the lord claiming in default of heirs) is not entitled to call for a conversion.> 45. Where money to be converted gets into the hands of the person who is absolutely entitled to it either way, the operation of the rule of conversion will cease.® 46. ‘ Where the property is outstanding in a trustee, but there is some person who is absolutely entitled to the property, whether taken as realty or personalty, such person, by any act from which his intention may be collected, may declare his election in what quality it shall be taken.’ Until an election is made, the prop- erty passes as if actually converted, and the onus lies on those who would show an election to take it in 1 2 Sp. 260, 261. 2 2 Sp. 264. 3 2 Sp. 267. 4 See 2 Sp. 268, 269. 5 2 Sp. 266. § 2 Sp. 270. ” 2 Sp. 271; Fletcher v. Ashburner, 1 White and Tudor’s Lead. Cas. Eq., 4th Am. ed. 1118, et seq.* * Craig v. Leslie, 3 Wheaton, 564; Peter v. Beverly, 10 Peters, 534, 563. GENERAL MAXIMS. 27 another character than that it would have if converted. 47, . Where one person has a better equity than another person in respect of the same fnravight : . . to call f property, in which each has an interest, the an assign- . . ment or former has a right to call for an assignment conveyance or conveyance of the legal estate, and in he ie . . . f tained it. Equity he will be placed in the same situa- tion as if he had actually obtained a conveyance or assignment.? 48. ‘Volunteers have equal equities among g,, themselves; but a volunteer, though a wife ° or child, has not equal equity with a bond fide pur- chaser for a valuable consideration, even with notice of the claim of the volunteer.’ 49. XI. As between persons having only equi- 44. gyi prior table interests, if their equities are in all pice ty” other respects equal, priority of time gives ’“”* the better equity: qui prior est tempore, potior est jure. But in a contest between- persons having only equita- ble interests, priority of time is the last preference re- sorted to; i.¢., a Court of Equity will not prefer the one to the other on the mere ground of priority of time, until it finds, upon an examination of their rela- tive merits, that there is no other sufficient ground of preference between them, or, in other words, that their equities are in all other respects equal ; and if the one has, on other grounds, a better equity than the other, priority of time is immaterial.* 50. 1 2 Sp. 272. 2 2 Sp. 728. 9 2 Sp. 728. 4 Kindersley, V. C, in Rice v. Rice, 2 Drew, 78; Stackhouse v. Eu ity of unteers. 28 GENERAL MAXIMS. XII. Where aman is bound to do an act, imputesta- and he does one which is capable of being falalran ob- considered to have been done in fulfilment ES Sak Hie obligation, it shall be so construed ; because it is right to put the most favorable construc- tion on the acts of others.’ 61. : In the case of a covenant, that, on the distributive death of the covenantor, a wife or relative salisfacion Shall receive a gross sum, his or her distribu- gation by tive share, in the case of an intestacy, if equal covenant, : to or greater than the sum covenanted to be paid, is to be considered as a performance; if less, as a part performance. But where the covenant is that an annuity shall be paid or secured on the death of the: covenantor, the distributive share is not a performance or part performance.’ And where the covenant debt arises in the lifetime of the covenantor (as where he covenants within two years after marriage to pay a cer- tain sum, and he outlives the two years), a distribu- Countess of Jersey, 1 Johns. and H. 721; Cory v. Eyre, 1 D. J. & §. 149; Shropshire Union Railways, etc., Co. v. The Queen, L. R. 7 H. L. 496.* 1 2 Sp. 204; Wilcocks v. Wilcocks, 2 White and Tudor’s Lead. Cas. Eq., 4th Am. ed. 833, ef seg.; Blandy v. Widmore, id. 347.+ 2 Id.; 2 Sp. 608, 609. * Adams’s Eq. [160]; Equity looks at the substance of things. Texas v. Hardenberg, 10 Wall. 68. But if the party having the subsequent equity clothes himself with the legal title before he has notice of the prior equity such legal title will prevail. Rex- ford v. Rexford, 7 Lans. (N. Y.), 6. + Adams’s Eq. [104]. GENERAL MAXIMS. 29 tive share will not be a performance or a satisfaction of the covenant.’ 52. XIII. It is a rule both at Law and in : : 13. Li Equity, that whenever one of two innocent must be persons must suffer, he who, contrary to petuon aee legal or moral obligation, has occasioned the *”” = loss, or enabled another to occasion the loss, must bear it. But the mere omission by a person to do some- thing which it is not his duty to do, but which, if done, would have prevented the loss, is not sufficient to ren- der him liable for such loss.” 53. XIV. It may be observed in this place, oot 14. Rules that it is a rule, that although the property astoforeign és : or colonia! in controversy be situate in a country out of property or contracts. the jurisdiction of the Court, whether within the English dominions or not, yet the Court, in all cases where the proper parties are within the territo- rial process of the Court, will afford relief, so far as it can be afforded, by proceeding against the persons, and not directly against the property. Thus a bill cannot 1 2 Sp. 609. 2 See judgment of Lindley, J., in Keith v. Burrows, L. R. 1 C. P. D. 734. 3 See St. 3 1299-1300, 1352 a; 2 Sp. 7; Penn v. Lord Balti- more, 2 White & Tudor’s Lead. Cas. Eq., 4th Am. ed.. 1806, et seqg.* *. The same principle has been asserted by the Supreme Court of the United States in its broadest form; and it has been held that in cases of fraud, of trust, or of contract, the jurisdiction of a Court of Equity is sustainable wherever the person may be found, although lands not within the jurisdiction of that Court may be affected by the decree. St. Eq. Jur. 3 1297; Massie v. Watts, 6 Cranch, 160; Moore v. Jaeger, 2 MacArthur, 465. 30 GENERAL MAXIMS. be brought for a partition of land situate in a country out of the jurisdiction; for the Court cannot award a commission there. But a bill may be maintained for an account of the rents and profits of land out of the jurisdiction, or for a specific performance of an agree- . ment respecting such land.? And a foreclosure decree being a decree in personam, depriving the mortgagor of his personal right to redeem, the Court has jurisdic- tion to make such a decree between an English mort- gagor and mortgagee of land in one of the colonies.* And the Court has gone so far as indirectly to over- haul the judgments of foreign Courts, and even the sales made under those judgments, where fraud has intervened in those judgments, or a grossly inequitable advantage has been taken.‘ But a plea of fraud was a good defence at Law to an action on a foreign judg- ment, and therefore the Court of Chancery would not interfere with the action at Law, on the ground that such judgment was obtained by fraud.® 54. If a matter is within the jurisdiction of a tribunal of competent jurisdiction in another country, a Court of Equity, except under special circumstances, will leave the matter to be disposed of by that tribunal.’ 55. The right to personal property follows the domicile, 2 St. 2 1292; 2 Sp. 8, n (d). 2 St. 31291, 1300, 7438, 744. 3 Paget v. Ede, L. R. 18 Eq. 118. 4 St. @ 1294; 2 Sp. 9. ® Ochsenbein v. Papelier, L. R. 8 Ch. Ap. 695. ° 2 Sp. 10. GENERAL MAXIMS. 31 but the right to land or immovable property is to be determined by the law of the country where it is situ- ate. Yet if that question is mixed up with others— for instance, with matters of account, which can be more conveniently disposed of here—the Court will entertain jurisdiction of the whole matter, giving di- rections, in case of need, for instituting any proceed- ings in the Colonial Courts.’ 56. _ The remedy upon contracts must be that which is given by the law of the country where the parties re- side.” But contracts are generally construed according to the law of the place in which they were made. And, as a general rule, a contract will not be enforced unless it is valid both by the law of the country in which it was made, and by the law of the country in which it is sought to be enforced? 57, Where a written contract is made in a foreign country and in a foreign language, an English Court, in order to interpret it, must first obtain a translation of the instrument; secondly, an explanation of the terms of art (if it contains any); thirdly, evidence of any foreign law applicable to the case; and fourthly, evidence of any peculiar rules of construction, if any such rules exist, by the foreign law. And, with this ' 2 Sp. 12; see Bailee v. Bailee, L. RB. 5 Eq. 175. 2 2 Sp. 14. 3 2 Sp. 18, 14; Hope w. Hope, D. M. & G. 731.* * Story’s Confl. Laws, 3 544, 545. Though a Court of Equity cannot act directly on land not within its jurisdiction, it may com- pel the holder of the title, who is a party before it, to give effect toa lien. Lewis v. Darling, 16 How. Sup. Ct. 1. 32 GENERAL MAXIMS. assistance, the court must then interpret the contract itself on ordinary principles of construction.’ 58. $8 Telaae XV. “Ifa person has sustained injury in ference of consequence of any order or proceeding of a fee” Court of Equity, or by reason of anything the deci- sions of - which has occurred in the execution of its Courts of Equity. process, he must seek redress there, and not in a Court of Law. If the matter complained of in- volves 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, admitting 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 discretion, either itself give redress to the aggrieved party, or permit him to proceed at Law, as justice and conveni- ence may require.”? 59. 1 Di Sora v. Phillipps, 10 H. L. Cas. 624, 633. ® Walker v. Micklethwait, 1 Dr. & Sm. 49. DIVISION OF EQUITY. 33 = SECTION IV. OF THE DIVISION OF EQUITY. THE subject of Equity Jurisprudence may be con- veniently, and perhaps most properly, treated under the following heads, designated according to the more distinctive characteristics of the relief afforded, or the general objects sought to be effected. I. Of Remedial 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. 60. TITLE I. Of Remedial Equity, specifically so termed. CHAPTER I. OF ACCIDENT. AN accident, in the usual sense of the term, is an occurrence not referable to design. 61. Accident, as remediable in Equity, MAY Defnition be defined to be an unforeseen and injurious ° ***ie"t. occurrence, not attributable to mistake, neglect, or amizconduet. 62. Thus, the reduction, by Act of Parlia- merit, of public stock directed by will to be tio in the set apart to answer an annuity, is an acci- ean oe dent, remediable in Equity by decreeing the “*™ deficiency to be made up against the residuary leg- atees," 63. I. There are many cases of accident in + cg. which due relief could always be obtained ‘ dents reme- at Law; and there Equity would not in- “” terpose2 64. II. On the other hand, there are many ny. Acci- . . dents not cases in which no remedy can be had remediable either at Law or in Equity.2 65. Thus, Eauiy, 1. No relief will be granted where the ,, ,, eases accident arose from the gross neglect or eetke fault of the party seeking relief, or his sf: agents. 66. 18.993 7 S279. PSL ET9 SE. 2 105. 38 ACCIDENT. 2. And where a person has expressly and absolute absolutely contracted or covenanted to doa ceees particular thing, it is no ground for the in- terference of a Court of Equity, that he has been pre- vented by accident from fulfilling his engagement, or from deriving the full benefit of the contract on his side. For he might have prevented any injury to himself from accident, by making proper excep- tions, but since he has made no such exceptions, Equity will not conjecturally limit a liability which in terms is general and unqualified." So that if a lessee covenants to keep the demised premises in repair, he will be bound to do so, notwith- standing any unavoidable accident by which they are Or to pay destroyed or injured.’ And where there'is a Tent, covenant to pay rent during the term, with- out any exceptions, it must be paid, notwithstanding the premises are accidentally burnt down during the term.’ So, if an estate is sold for a certain sum of Or anan- money and an annuity for the life of the nulty: vendor, and the vendor dies before the receipt of any annuity, Equity will not grant relief.‘ And an antenuptial settlement cannot be set aside, Fic hii reformed, or varied, on the ground that _ of the con it was intended that there should be a pe- cuniary consideration on both sides, whereas the pecuniary consideration on one side has failed. 67. 3. Nor will relief be granted in favor-of Orofacoun- : : : tervailing @ person whose equitable right to assistance is not equal, or not more than equal to the 1 See St. 2101-5. 2 St.¢101. %St.¢102. * St. 3 104. 5 Campbell ». Ingilby, 21 Beav. 567; 1 D. & J. 393. To repair, ACCIDENT. 39 equitable right to protection which is possessed 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 ;* or against an heir in tail or remainder-man in tail, in favor of persons claiming under the tenant in tail.’ 68. 4. And so relief will not be granted in 9, o¢ want favor of a person, who, although a great °feauity: 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 4, jnere a to the legatees or devisees under a will de- 7uy,8¢e fectively executed :* for, being mere volun- °**uted. teers, they have as little equity as the heir or next of kin, or even less, inasmuch as fortior et equior est dis- positio legis quam hominis (Co. Litt., 338 a), and therefore the legal right which has vested in the latter will not be taken away; asthe maxim is, that “where the equity is equal the law must prevail.” 69. III. But where a Court of Law cannot, q Acci- or, in similar cases, originally could not, or {fen ” did not,.give adequate relief, and take due "1" 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 a Court of Equity, if it can be granted without derogating from any positive agree- ment, or violating any equal or superior equity in an- other person.* 70. 1 See St. 2 108. 2 St. 2 107. 3 See St. 3 105 a, 106. « See St. 4 28, 64 i, 79, 81, 85, 89, 101, 105, 106, 109. 40 ACCIDENT. eee 1. In cases of destroyed, lost, or sup- qicere, pressed deeds, the jurisdiction of Equity, to in cases of compel a discovery, wouldseem to have been destroyed lst of Sp universal, because this was a preliminary as- deeds, and sistance peculiar to Equity. And where a discovery only was sought, Equity would grant it with- out any affidavit of loss; because a person would not file a mere bill of discovery, unless the instrument were really lost. 71. jurisdiow 5 But, in these cases, the jurisdiction for re- lict in such Lief, in addition to a discovery, was of lim- neeRe ited extent ; for, in some of these cases, Courts of Law have all along been able to administer, and have been in the habit of doing, complete justice.’ Requisites ‘And where such relief was sought in a pevainin Court of Equity an affidavit of the fact the juris- dletion for of destruction, loss, or suppression must such cases. have been annexed to the bill; because, in such cases, it was desired to change the forum from a Court of Law, which prima facie was the proper forum, toa Court of Equity ; aid therefore an affi- davit ought to be required, to prevent an abuse of the process of the Court. There must also have been an offer of indemnity in the bill when the nature of the. case seemed to require it? And in order to maintain the suit, it was further indispensable that the destruc- tion, loss, or suppression, if not admitted by the answer, should be established, at the hearing of the cause, by satisfactory proofs. 72. : 1 St. 2 83, 84, * See St. ¢ 83; Mitford & Tyler’s Pleadings, 209, 218, 219. 3 See St. 2 88. ACCIDENT. 41 Among other instances in which Equity iitaiace exercises jurisdiction for relief in the case of Manley as destroyed, lost, or suppressed deeds, relief jurisdiction for relief in will be given in Equity where the plaintiff ‘*°* °° avers that a deed relating to land has been either de- stroyed or concealed by the defendant, 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 Law formerly could not), that the plaintiff shall hold and enjoy the land until the defendant shall produce the deed, or admit its destruction.’ 73. 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 74, 2. A person may also come into Equity 9 suns for payment of a lost bond; because until diction. is a recent period, no relief was given at Law, on account of a want of a profert.? 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 grant relief upon the terms of the party giving a bond of indemnity; and formerly a Court of Law could not insist on that as a part of the judgment; and, although it has sometimes re- quired the previous offer of an indemnity, yet such an offer may be unsatisfactory in many cases; for, in the meantime, the circumstances of the party to the bond of indemnity may undergo a great change.‘ 75. 19.384. 781.284 *% St. 281, 82. 4 St. 2 82. 4 cases of lost bonds. 42 ACCIDENT. 3. Courts of Law could always enforce payment of money due on a lost negotiable note or other . Turisdic- : : fignincases negotiable unsealed security; because no Gialet cece profert was necessary, and no oyer was al- ea lowed of such securities. Courts of Equity, therefore, would not formerly relieve in such a case, unless there was an offer of indemnity in the bill, constituting a ground of jurisdiction.’ And Courts of Equity had 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.’ 76. 4. In the absence of any countervailing 4 rele te Equity, relief will be granted by a Court of penile Equity, in the case of a defective execution cution of of a mere power,(a) where it is created by pews" an ordinary assurance, and where the defect is not of the very essence of the power, and the de- fective execution is in favor of a charity, or a pur- chaser, or a creditor, or an intended husband or a wife, or a legitimate child. And the mere manifesta- tion of an intention to execute the power, provided it clearly appears in writing, will be deemed a defective execution of the power. 77. But Equity will not interpose in the case of a non- execution of a mere power; for that would be de- priving the donee of the right of discretion in regard 1 St. 2 85, 86. 2 Wright v. Lord Maidstone, 1 K. & J. 701.* * Davies v. Davies, 6 Iredell Eq. 418. (a) See the stat. 22 & 23 Vict. c. 35, s. 12, as to the mode of execution of powers. ACCIDENT. 43 to the exercise of the power. Nor will Equity sup- port 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 niother, 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 circumstances beyond the control of the donee; as where the prescribed wit- nesses 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 dispense with the regulations pre- scribed 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 will an execution by an absolute deed, instead of by will, be supported ; as that would be repugnant to the power; since it would not be revocable like a will.. 78. 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 itt 79. 1 See, as to these propositions respecting powers, St. 4 94-8, 169-177 ; 2 Sugd. Pow., 7th ed. 88-175; Tollet v. Tollet, 1 White and Tudor’s Lead. Cas. Eq., 4th Am. ed. 227, e¢ seg.; Harding v. Glyn, 2 Lead. Cas. Eq., 2d ed. 789, 811; and Smith’s Compendium of the Law of Property, 5th ed., par. 2126-2131; Garth v. Town- send, L. R. 7 Eq. 220; Kennard v. Kennard, L. R. 8 Ch. Ap. 227.* * Beatty v. Clark, 29 Cal. 11; Pepper’s Will, 1 Pars. Eq. 436, 446; Porter et al. v. Turner ef al., 3-Sergeant and Rawle, 108, 111, 114. 44 MISTAKE. CHAPTER II. OF MISTAKE.(a) A MISTAKE, as remediable in Equity, may be de- fined to be an act which would not have been done, or Definition @2 Omission which would not have occurred, ofmistake. but from ignorance, forgetfulness, inadver- tence, mental incompetence, surprise, misplaced con- fidence, or imposition. 80. The following propositions appear to be deducible from the cases on the subject: : L Mistake .. Where the mistake is unilateral, and madevythe the sufferer is the person by whom it was laa made, relief will not be granted, unless there is some circumstance which gives rise to a presump- tion that there has been some undue influence, mis- representation, imposition, mental imbecility, surprise, or confidence abused ;} and even where this is the case, Equity will not interfere as against a bond fide purchaser for valuable consideration, without notice.’ 81. 1 See St. 2 117-120, 133-5, 137, 1388 ; Broughton »v. Hutt, 3 D. & J. 501; Bentley v. Mackay, 31 Beav. 143. ? St. ¢ 139, and see Maxim VI, par. 34, ante. (a) See the stat. 22 & 23 Vict. c. 35, s. 13, as to mistaken pay- ments in case of sales under powers. MISTAKE. , 45 In regard to mistakes in matters of Law, Scene is it is a maxim that ignorantia legis non ex- a matter of ceusat.' 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 com- munity at large, this is considered sufficient to afford such a presumption as above mentioned, so as to en- title the party to relief.? 82. The court has power to relieve against mistakes in Law as well as against mistakes in fact, if there is any equitable ground for such relief. But when money has been paid over with a full knowledge of all the facts, and the payment has been acquiesced in with such knowledge, and after taking counsel’s opinion, it cannot afterwards be recovered back.? 83. And in regard to mistakes in matters of pie fact, relief will be granted on the same pre- matter of sumption, where the mistake is unilateral, and the fact was material to the act or contract, and was not doubtful from its own nature, and was a fact which could not be ascertained by such diligence or care as is usual in transactions of the like nature, and 1 St. @ 111, 113, 116, 138, 140; Powell v. Smith, L. R. 14 Eq. 85.* 2 See St. 3 121-5, 128, 137. 3 Rogers v. Ingham, L. R. 3 Ch. D. 351. * Adams’s Eg. [169] note and cases cited; Bank of the United States v. Daniel, 12 Peters, 32, 55, 56; but see also Hunt v. Rous- maniere, 1 Peters, 15; 8 Wheat. 211-215. . 46 MISTAKE. of which the other party was under a legal obligation to inform the mistaken person.’ 84. elite And ignorance of foreign Law is deemed of foreign ignorance of fact, because no person is pre- sumed to know foreign Law.’ 85. But ignorance, on the part of the vendor, Vendor's ¥ ‘ mistake as of circumstances tending to enhance the value of the property, of which the vendee was aware, will not form a ground for relief where it is not a case of mutual confidence.’ 86. iL Mutual LL. Where the mistake is mutual, the mistake. transaction will be binding, unless 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 consists in one party supposing that he had purchased something which the other did not intend to sell;* or the mistake is the result of a miscalculation by the defendant’s agent in favor of the defendant;* or by reason of the fact being otherwise than was sup- posed, there is no consideration to support the trans- 1 See St. 2 117, 118, 140, 141, 146-8, 150, 151.* 2 St. 21404 3 St.9149. 4 St. 3113, 134, 142, 143 a, 144, 5 Carpmael v. Powis, 10 Beav. 36. * To induce a Court of Equity to decree a rescission of a con- tract on the ground of mistake, the mistake must be shown to be ‘material. The Court must be satisfied that but for the mistake, the complainant would not have assumed the obligation from which he seeks to be relieved. Grymes v. Sanders, 93 U.S. ( Otto), 55. : + And it must be proved as a fact. Haven v. Foster, 9 Pick.; Consequa v. Willings, 1 Peters C. C. 229. MISTAKE. 47 action ;! or both parties were under the impression that one of them was the owner of property which in reality belonged to the other;? or one of the parties made a material misrepresentation, though innocently, which influenced the other.’ 87. III. In the case of a compromise of doubt- 7 oom. ful rights, or of rights which are considered Pro™ises. by the parties to be doubtful, to make it binding, the parties must be at arm’s length, on equal terms, with equal knowledge, and with sufficient advice and pro- tection where, from their relative position or other circumstances, they need itt If all the parties are in a state of mutual ignorance, or they are all acquainted with the doubts which exist in their favor, the com- promise will be binding. But where one or more of them is or are not aware of the doubts existing in his or their favor, while the fact that such doubts exist is known to the other or others of them, the compromise will not be binding,’ because in that case there is room 1 Cochrane v. Willis, 34 Beav. 359; L. R. 1 Ch. Ap. 58.* 2 Cooper v. Phibbs, L. R. 2 H. L. 149. 5 Fane v. Fane, L. R. 20 Eq. 698. 4 Moxon »v, Payne, L. R. 8 Ch. Ap. 881, 885. 5 See St. ¢ 130-2; Lucy’s Case, 4 D. M. & G. 356; Stapilton », Stapilton, 2 White & Tudor’s Lead. Cas. Eq., 4th Am. ed. 824, et seq.t * Allen v. Hammond, 11 Peters, 63, 71-73. ‘| Where the parties have equal means of knowledge, no relief in Equity will be afforded, on the ground of results being different from what the parties anticipated. St. Eq. Jur. 2118. And if it should subsequently appear that the parties were mistaken in their apprehension of their rights, that alone will not affect the validity of any compromise or contract, based upon such misapprehension. Union Bank of Georgetown v. Geary, 5 Peters, 98. 48 MISTAKE. for the presumption of surprise or confidence abused ; and the very nature of the transaction made it requi- site 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 bind- ing, there must be an honest disclosure, by each party to the other, of all such material facts known to them, relative to their rights and title, as are calculated to influence the judgment in the adoption of the compro- mise; and any advantage taken by either of the par- ties of the known ignorance of the other as to such facts, renders such compromise void in Equity.’ 88. IV. Where by mistake an instrument toate” inter vivos is not what the parties intended, a writen’ or there is a mistake in it other than a mis- instrument. * : or in regard take 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 on the record, or is evident from the nature of the case, or from the rest of the deed, Equity will rectify the mistake;? except 1 Smith v. Pincombe, 3 Mac. & G. 659; Greenwood v. Green- wood, 2D. J. & S. 28; Brooke v. Lord Mostyn, 2 D. J. & S. 373. 2 St. 3 152, 157, 159, 166, 168; and see Sugd. V. & P., 10th ed., ch. 8, sect. 11, pl. 2; Lord Glenorchy v. Bosville, and Legg v. Gold- wire, 1 Lead. Cas. Eq., 2d ed. 1, et seg. ; Meadows v. Meadows, 16 Beay. 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; Wolterbeck v. Barrow, 23 Beav. 423; Wilson v. Wilson, 5 H. L. Cas. 40, 52-7, 59, 63, 71; Mostyn v. Mostyn, 5 H. L. Cas. 155; Fowler v. Fowler, 4 D. & J. 250; Earl of Bradford v. Earl of Romney, 30 Beav. 431; Garrard v. MISTAKE. 49 as against a bond fide purchaser for valuable con- sideration, without notice,’ or other person having an Equity equal to that of the plaintiff? 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 re- mainder-man.? 89. 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 in- serted by mistake, contrary to the intention of all the parties. And where an instrument is substantially what the parties intended, although so framed under a mistaken view of the Law, the court will not rectify the mistake.? A bond to leave or convey property Frankel, 30 Beav. 445; Walker v. Armstrong, 8 D. M. & G. 531; Daniel v. Arkwright, 2 Hem. & Mil. 95; Earl of Malmes- bury v. Countess of Malmesbury, 31 Beav. 407; Scholefield ». Lockwood (No. 2), 32 Beav. 436; Harris v. Pepperell, L. R.5 Eq. 1; Druiffv. Lord Parker, L. R. 5 Eq. 181; Brooke ». Haymes, L. R. 6 Eq. 25; In re De La Touche’s Settlement, L. R. 10 Eq. 599; Smith v. Iliffe, L. R. 20 Eq. 666; Cogan v. Duffield, L. R. 20 Eq. 789; In re Boulter, Ex parte National Provincial Bank, L. R. 4, Ch. D. 241.* 1 St. 2165; 2 Sp. 195. 2 St. 2176. 3 St. 3178. 4 Rooke v. Lord Kensington, 2 K. & J. 753, 764; Sells v. Sells, 1 Dr. & Sm. 42; Thompson v. Whitmore, 1 Johns. & H. 268; Elwes v. Elwes, 2 Gif..545; 3D. F. & J. 667.7 5 St. 2 113-115. * Bradford v. The Union Bank, 13 How. Sup. Ct. 66; McIntosh v. Saunders, 68 Ill. 128; Graves v. Boston Marine Ins. Co., 2 Cranch, 442, 444; Lyman v. United Ins. Co., 2 John’s Ch. 630; Adams’s Eq. [168], and cases cited. + Mitchell v. Mitchell, 40 Ga. 11. 5 50 MISTAKE. has, however, been sometimes upheld in Equity, as an agreement defectively executed.’ 90. A husband cannot take proceedings to have a settle- ment rectified where he executed it with a knowledge of its contents, though he gave notice before the mar- riage that he should apply to the Court to have it rec- tified? 91. A Court of Equity will not remedy a defect or sup- ply an omission in a deed in favor of a stranger where there is no consideration, 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. 92. A voluntary deed cannot be reformed except with the consent of the donor.* 93. It should be observed that where the final instru- ment of conveyance or settlement differs from the pre- liminary contract, that: very circumstance affords of itself some ground for presuming an intentional change of purpose, unless, from some recital in it or from some attendant circumstances, it appears to have been in- tended to be merely in pursuance of the original con- tract. 94. 1 St. 3136. % Eaton v. Bennett, 34 Beav. 196. % 2 Sp. 886. 4 Phillipson v. Kerry, 32 Beav. 628; Broun v». Kennedy, 33 Beay. 133, 147. But see Thompson v. Whitmore, 1 Johns. & H. 268.* 5 St. 2 160. * The Courts of Equity will not rectify a voluntary deed unless all the parties consent. St. Eq. Jur. 2 164 e, and cases there cited, MISTAKE. 51 When there are articles and a settlement before marriage, as a general rule the settlement alone can be looked to; if it is different 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 dis- crepancy has arisen from a mistake, the Court will reform the settlement, and make it conformable to the real intention of the parties.' If the articles are be- fore marriage and the settlement after marriage, the articles are in effect the binding instrument; and if the settlement gives estates or interests different from those which the Court would give on the construction of the articles, the settlement will be reformed, as be- tween the parties and their representatives and mere volunteers, but not as against a purchaser for valuable consideration without notice.? 95. And as regards the admissibility of the evidence, it is a rule of the Common Law, independently of the Statute of Frauds, that parol evidence is not admissible to disannul, substantially add to, subtract from, qual- ify, or vary a written instrument.? But upon prin- ciple 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.’ 96. 1 2 Sp. 140; Bold v. Hutchinson, 5 D. M. & G. 558, 568.* 2 2 Sp. 140, 141; Peachy on Settl. 132. 3 See St. 2 153, 158; and see also Sugd. V. & P., 10th ed., ch. 3, sect. 8, pl. 2, 26, 33, etc., and sect. 11, pl. 5. ‘ St. @ 155, 156, 161, notes: remarks of Sir J. Romilly, M. B., in Murray v. Parker, 19 Beav. 398. * St. Eq. Jur. 2 160, and notes. 52 MISTAKE. V. 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 bar- gain, the Court confines the release to what was in- tended to be released.’ 97. VI. Equity will relieve where an instrument has been delivered up or cancelled, under a mistake of a party, and in ignorance of the facts material to the rights under it.’ 98. VII. Equity will also supply defects in the execu- tion of powers, on the ground of mistake, in the cases mentioned in the preceding chapter under the head of Accident. 99. VIII. Equity will rectify a clear mistake or omis- sion in a will, if it is apparent on the face of the will. But parol evidence is generally inadmissible. It is admitted, however, in certain cases of mistake in the name or description of the devisee or legatee.*? 100. IX. Equity will grant relief, where a mistake in a written contract is fairly presumable from the nature of the transaction. And hence, where there has been a joint loan to two or more obligors, and they are only 1 St. 3 145. 2 St. 2 167. 3 See 1 Jarm. on Wills, 2d ed. 361-3; Wigram on Wills, 51; Mostyn v. Mostyn, 5 H. L. Cas. 155; St. 3 179-181; Doe d. His- cocks v. Hiscocks, Tud. Lead. Cas. Real Prop., 2d ed. 819.* * 1 Redf. on Wills (8d ed.), 509, 591; Salmon v, Stuyvesant, 16 Wend. 321. MISTAKE. 53 made jointly liable, the Court will make the bond joint and several.’ 101. X. An instrument may be entirely set Aroiaance : : f a writt aside on the ground of mistake or fraud.? instrument . 0. e And a voluntary deed of gift may be or- ground of dered to be cancelled on either of those mua?” grounds, and the money ordered to be given back to the donor.’ 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 agreement shall bind, but that an unwritten agreement shall not bind.”* 102. 1 St. 2 163, 164; Wilson v. Wilson, 5 H. L. Cas. 40.* 2 See St. 2 161; Phillipson v. Kerry, 32 Beav. 628; Price v. Ley, 4 Gif. 235. 3 Lister v. Hodgson, L. R. 4 Eq. 30. 4 Sugd. V. & P., 10th ed., ch. 3, s. 8, pl. 32. * Jn all cases of mistake in written instruments, Courts of Equity will interfere only as between the original parties, or those claim- ing under them in privity; such as personal representatives, heirs, devisees, etc. As against bond fide purchasers fur « valuable consideration without notice, Courts of Equity will grant no relief; because they have, at least, an equal equity to the protection of the Court. St. Eq. Jur. 3 165, and cases there cited. : 54 ACTUAL FRAUD. CHAPTER III. ON ACTUAL FRAUD. THE modes of fraud are infinite; and “ it Unsafe to | has been said, that Courts of Equity have, in generalor very wisely, never laid down, as a general eanlty, edial proposition, what shall constitute fraud, or ee era"? 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.’ In accordance with the spirit of this re- mark, the writer abstains from attempting to give a definition of fraud in general. It is usually and ac- curately divided, however, into two large classes, designated, defined, and treated of under the names of Actual Fraud and Constructive Fraud. 103. Eee An actual fraud may be defined to be of actual something said, done, or omitted, by a per- son with the design of perpetrating what he must have known to be a positive fraud. 104. raring: A Court of Equity will not entertain tionin cases jurisdiction to set aside a will obtained by fraud, or establish a will suppressed by fraud; for in such cases, the proper remedy is exclu- 1 St. 2 186. ACTUAL FRAUD. 55 sively vested in the Court of Probate.!| But where the fraud does not go to the whole will, but only to some particular clause, or where the fraud is in un- duly 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.” 105. In a great variety of other eases, fraud is cognizable at_ Law, as in cases of fraud in the sale of chattels personal ; and in some of these cases adequate relief could be, and constantly is, obtained at Law.’ 106. It is a rule as well in Courts of. Law a8 yisence of in Courts of Equity, that fraud is not to be 134. 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 re- quired in a Court of Law.* 107. When a case is based on fraud, the fraud must be proved, and no relief will be given in the suit in which such a case is made, on any different grounds. But where material allegations of fraud are proved, the 1 St. 2184, and note; 1 Wms. on Executors, 5th ed. 341 ; 2 Steph. Com. 202-5; Jones v. Gregory, 4 Giff. 468; 2D. J. & 8. 83.* 2 St. 3 440. 3 St. 2 184, and note.t 4 See St. 2 190. * The American decisions on this subject have followed the English authorities. See Broderick’s Will, 21 Wall. 503 ; Gaines et ux. v. Chew et al. 2 How. Supt. Ct. 619, 645, 646, and cases con- sidered by. Mr. Justice McLean in the opinion. + Bigelow on,Fraud, 322, et seg. 56 ACTUAL, FRAUD. plaintiff will obtain relief although other allegations of fraud are not proved.’ 108. It would be impossible, and unnecessary if it were possible, to enumerate all the different instances in which Courts of Equity will grant the relief on the ground of actual fraud. We shall only notice a few of them under these two heads: 109. I. Of frauds which receive that denomi- rua nation from a consideration of the conduct frauds. of the guilty parties, irrespective of any peculiarity in the condition of the injured parties. 110. II. Of frauds which receive that denomination mainly or in a great measure from a consideration of the peculiar condition of the parties upon whom they are practiced. 111. aus I.—1. Misrepresentation, whether by word . First class é 3 : of actual or deed, constitutes fraud.” Equity will not interfere, however, if the fraud was not in 1. Misrepre- the transaction which creates the contract, sentation. 2 a : but in a distinct unconnected transaction. Nor will it interfere if the misrepresentation was ina trifling or immaterial point, or if no injury arose from it.| For, in the first case, the evils of litigation would 1 Moxon v. Payne, L. R. 8 Ch. Ap. 881, 887. 2 St. ¢ 191, 192; Jennings v. Broughton, 5 D. M. & G. 126; Kay v. Smith, 21 Beay. 522. 3 Rolt v. White, 3 D. J. & S. 360. 4 St. 2191, 195, 196, 203; Pulsford v. Richards, 17 Beav. 96.* * Nor where parties have equal means of information. Brown v. Leach, 107 Mass. ACTUAL FRAUD. 57 be far greater than the injury occasioned ; 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 by the misrepresentation ;* because, in that case, he was not injured by it. Nor will the Court interpose if the misrepresentation was vague and inconclusive,’ or if it merely amounted to the common language of puff- ing and commendation of things sold ;* or if it was in a matter of opinion or fact equally open to the in- quiry of both parties, and in regard to which neither could be presumed to trust the other ;* 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.’ For the Court does not sit to redress in- juries which the injured parties, by ordinary 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 against abuse, that, where a solicitor in- duces his client to execute a deed upon false and plausible representations, the Court will order the deed to be delivered up to be cancelled.’ 112. 1 St. 2 202; Nelson v. Stocker, 4 D. & J. 458. 2 St. 2 192. 8 St. 2 291. 4 St. 2191, 197, 198. 5 St. 3 199, 200 a; but see Reynell v. Sprye, 1 D. M. & G. 656, 710. 6 Vorley v. Cooke, 1 Gif. 230; Ogilvie v. Jeaffreson, 2 Giff. 353.* * But a client may make an irrevocable gift to his attorney with reference to particular services pending or prospective, but the 58 ACTUAL FRAUD. Misrepresentation is a ground of relief, whether the * party who made the assertion or intimation knew it to be false, or made it without knowing whether it was true or false.! So that if a person, whether wilfully or not, makes a false representation to another, with a reasonable ground for supposing 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 answer- able for it.2 And where a person has been induced to enter into a contract by a material misrepresentation of the other party, he is entitled to have the contract set aside, and not merely to have the representation made good? 112a. A contract induced by fraud is not void, but only voidable at the option of the party defrauded; and though the party who was guilty of the fraud cannot enforce it, yet other persons may, in consequence of it, 1 §t. 193; Pulsford v. Richards, 17 Beay. 95; Rawlins v. Wickham, 1 Gif. 355; 3 D. & J. 304; Reese River Silver Mining Co. v. Smith, L. R. 4 H. L. 64.* 2 Hutton v. Rossiter, 7 D. M. & G. 9, 23, 24; Slim v. Croucher, 2 Gif. 37; 1 D. F. & J. 518; Barry v. Croskey, 2 Johns. & H. 1; Ramshire v. Bolton, L. R. 8 Eq. 294. , < 3 Rawlins v. Wickham, 1 Gif. 355; 3 D. & J. 304; Trail v. Ba- ring, 4 Gif. 485; Charlesworth v. Jennings, 34 Beay. 96; Hay- garth v. Wearing, L. R. 12 Eq. 320. mere existence of the relation raises a presumption against the validity of the gratuity. See Bigelow on Fraud, 195, 196, and cases cited. St. Eq. Jur. @ 311. * Sharp v. Mayor, 40 Barb. 256. ACTUAL FRAUD. 59 acquire interests and rights. which they may enforce against the party defrauded. 113. If a person, through the fraud of another, has exe- cuted a deed, or signed a receipt, containing a repre- sentation, he must suffer from the fraudulent use made of such deed or receipt by such other person, rather than a third person who has, in the ordinary course of business, without negligence or default, trusted to the document containing such representation? 114. . A person may avail himself of what has been ob- tained by the fraud of another, if he is not only inno- cent of the fraud but has given some valuable con- sideration. 115, 2. If a person conceals facts and circum- conceal 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.‘ As, if a vendor sells an estate, knowing that he has no title to it, or that there are incumbrances on it, of which the purchaser is ignorant;’ or if the insured does not communicate to the underwriters all facts and circumstances which increase the risk.® 116. And if a person leases lands, and he knows, and the 1 Oakes v. Turquand, L. R. 2 H. L. 325, 346. 2 Hunter v. Walters, L. R. 7 Ch. Ap. 75. 3 Scholefield v. Templer, 4 D. & J. 433; Hunter v. Walters, L. R. 7 Ch. Ap. 75. 4 St. 3 204, 207, 215, 217, 220; 2 Sp. 765; Pulsford v. Richards, 17 Beav. 94-6.* 5 St. 2 208. : ® St. 3 216. * See Etting v. Bank of the United States, 11 Wheaton, 59. 60 ACTUAL FRAUD. lessee does not know, that as to a part the lessor has no title, and the lessor does not disclose that fact, the lessee may set aside or repudiate the lease. And he may refuse the part to which there is no title, and elect to keep the remainder. And if there is a covenant for title, express or implied, and an action is brought for rent, he may claim damages, for breach of the cove- nant, by way of counterclaim.’ 117. But a purchaser is not bound to communicate his knowledge of the value of the property to the vendor ;? for it is the business of the vendor to know and suffi- ciently 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? 118. In many cases, the maxim caveat emptor is applied; and unless there is some misrepresentation or artifice to disguise the thing sold, or some warranty as to its character or quality, the purchaser is bound, not- withstanding there may be material intrinsic defects in it known to the vendor, and unknown to the pur- chaser.4 119. 1 Mostyn v. West Mostyn Company, L. R. 1 C. P. D. 145. 2 St. @ 207, note; Walters v. Morgan, 3 D. F. & J. 718.* 5 St. @ 205. ‘St. 3 212.4 * See Kent. Comm. Lect. 39, p. 478, 479 (4th ed.). } 2 Blackst. Comm. 451. ACTUAL FRAUD. 61 In foro conscientic, each party is bound to commu- nicate 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 maxim, 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 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 determine this, proceedings for relief against fraud would often be taken in total uncertainty as to the existence of that knowledge, which was of the very essence of the sup- posed fraud, and absolutely necessary to be proved be- fore any ground for relief could be said to exist. And in many cases there would be the same difficulty in ascertaining whether the defect or advantage, admit- ting it to be known to the one party, was or was not disclosed by him to the other. 120. To draw a distinction which would, perhaps, give as much effect to the principle of sound morals, as would be compatible with avoiding frequent and fruitless litigation, and the encouragement of careless- ness and negligence, 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 the case, he must have known, and which the other 62 ACTUAL FRAUD. party could not be expected to discover with the care ordinarily used in similar transactions. 121. 3. Inade- 3. Mere inadequacy of price, or any other aire inequality in the bargain, does not consti- tute by itself a ground to avoid it.’ For the value of things is always fluctuating, and dependent on num- berless circumstances. Besides, a man may be induced by difficulties 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.2 And “*’ perhaps the lowness of the price may have been the only inducement to the purchaser to make the pur- chase; and he may have simply accepted the pro- posals of the vendor, instead of being the originator of the transaction, or of being actively concerned in ne- gotiating it, like a man whose design is to gain a fraud- ulent advantage over another. 122. Still, however, there may be such an unconscion- ableness or inadequacy in the bargain, as to shock the conscience, and amount to conclusive evidence of im- position or some undue influence; and in such a case, Courts of Equity will interfere on the ground of fraud. And where there are other ingredients of a suspicious nature, gross inadequacy must furnish the most vehe- ment presumption of fraud.* As, if proper time for 1 St. 3 244; Abbott v. Sworder, 4 De G. & S. 448; Harrison o. Guest, 6 D. M. & G. 424. 1 St. 2 546. 5 St. @ 246, see remarks of Lord Cranworth, C., in Harrison v. Guest, 6 D. M. & G. 424.+ * Erwin v. Parham, 12 How. Sup. Ct. 197. 7 Wright », Wilson, 2 Yerger, 294, ACTUAL FRAUD. 63 deliberation is not allowed the party injured ; if he is importunately pressed ; if those in whom he placed confi- dence 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 consult disin- terested friends or counsel, before he is called upon to act, in circumstances of sudden emergency or unex- pected right and acquisition ; if he is an illiterate per- son, and advantage has been taken of his necessities ; ‘or if he is a person of weak understanding. But Equity will not relieve where the parties cannot, be placed in status quo. Such relief, for instance, will not be given in the case of marriage settlements; in- asmuch as the Court cannot unmarry the parties.? 123, Where a purchase is set aside for inadequacy of consideration, the conveyance will be ordered to stand as a security for what has been advanced.? 124. Deeds of the nature of family arrangements are exempt from the rules as to the adequacy of the con- 1 St. 3 251; Cockell v. Taylor, 15 Beav. 103, 115; Longmate ». Ledger, 2 Gif. 157; Clark v. Malpas, 31 Beav. 80; 4D. F. & J. 401; Baker v. Monk, 33 Beav. 419.* . 2 St. g 250. 3 Longmate v. Ledger, 2 Gif. 157; Douglas v. Culverwell, 3 Gif. 251; Baker v. Monk, 33 Beay. 419. * But slight circumstances will be sufficient to overturn pre- sumption of frauds. Bigelow on Fraud, 280. It was held in Hallenbeck v. Dewitt, 2 Johns. 404, that proof that the grantor in a deed was a very ignorant and illiterate man, and could not read writing, and that the deed was not read to him, is not sufficient to avoid the deed, unless he requested that it be read to him. See Jackson v. Croy, 12 Johns. 427. 64 ACTUAL FRAUD. sideration 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.’ 125. 4. Where gifts and legaéies are bestowed eoaenad on persons, on condition that they shall oars marry with the consent of patents, guar- dians or other confidential persons, Courts of Equity will not suffer the manifest object of the condition to ‘¢’ be defeated by the fraudulent, corrupt, or unconscien- tious refusal of the parties whose consent is required to the marriage.’? 126. II. There are other frauds which receive II. Second . . . . class of ac- that denomination mainly or in a great tual frauds, . . measure from the consideration of the pecu- liar condition of the injured parties. 127. With regard to these: (nae 1, In the case of contracts or other acts, sons ofun- however solemn, of persons who are idiots, mane, 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 subser- vient to their just rights and interests. But where 1 Persee v. Persee, 7 Cl. & Fin. 279; Williams v. Williams, 2 Dr. & Sm. 378; L. R. 2 Ch. Ap. 294. As to deeds of this nature, see also Stapilton ». Stapilton, 2 Lead. Cas. Eq., 2d ed. 684, et seq. ; Dimsdale v, Dimsdale, 3 Drew, 556, 569, 571; Greenwood ». Greenwood, 2 D. J. & S. 28. 2 St. 2 257. ACTUAL FRAUD. 65 there is entire good faith, and the contract or other act is for the benefit of such persons, as to provide them with necessaries, there Courts of Equity will uphold it, as well as Courts of Law.! 128. 2. If a person, at the time of entering ; into a contract or doing an act, was so ex- toxieatel cessively 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 ob- tained an agreement or deed from him, when so in- toxicated, but will assist him in getting rid of it, on account of the fraud of the other party in obtaining .such agreement or deed from a person in such a state or by such means.” 129. 3. The contracts and other acts of per- 5 on per- sons who are of weak understanding will be Sonsotweak held void in Equity, if the nature of such '"* contracts or other acts justifies the conclusion that the party has been imposed: on, circumvented, or over- reached by cunning, artifice, or undue influence.’ 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! 130. 1 St. @ 227-9; Manby v. Bewicke, 3 K. & J. 342. 2 See St. ¢ 230-2. 2 See St. 3 234-8; Longmate v. Ledger, 2 Gif. 157; Nottidge v. Prince, 2 Gif. 246. ‘ Boyse v. Rossborough, 6 H. L. Cas. 2, 33, 34. 6 66 ACTUAL FRAUD. é Ra pee 4, Where a party is not a free agent, and sons who, is not equal to protect himself, a Court of sees) Equity will protect him.(a) Hence Equity will relieve against acts done under duress, or under the influence of threats or of real or im- frig hae aginary terrors, calculated to deprive a per- duress,or son of free agency.! And it watches with in fear . ’ the utmost jealousy all contracts made by a person while under imprisonment; and if there is the slightest ground to suspect oppression or imposition, it will set the contract aside. And, in like manner, ne circumstances of extreme necessity and dis- ae tress may so entirely overpower free agency, as to justify the Court in setting aside a con- tract on account of some oppression or fraudulent ad- vantage attendant on it.’ 131. 5. On in- 5. Infants may, even at Law, bind them- ean 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 ' St. 2 239; Boyse v. Rossborough, 6 H. L. Cas. 2, 49; Wil- liams v. Bayley, L. R. 1 H. L. 200.* 2 St. 3 239. (a) The writer submits that this principle ought, in accordance with reason and justice, to have been applied to the case of Re Metcalfe’s Trusts, 2 D. J. & 8. 122, the case of a professed nun. * Equity follows the law as to what is duress, Miller v. Miller, 62 Penn. St. 486. Equity will relieve by ordinary cancellation of instrument procured by duress, Harshaw v. Dobson, 64 N. C. 38; Thurman v. Burt, 53 Il. 129. ACTUAL FRAUD. 67 Law as in Equity. Where it can never be for his benefit it is utterly void.(a) 132. By the statutes 37 and 38 Vict. c. 62,8. 1, itis enacted, that “all contracts, whether by apaath by, or by simple contract, henceforth entered into by infants for the re- payment of money lent, or to be lent, or for goods supplied, or to be supplied (other than contracts for necessaries), and all accounts stated with infants, shall be absolutely void. Provided always, that this enact- ment shall not invalidate any contract into which an infant may by any existing or future statute, or by the rules of Common Law or Equity, enter, except such as now by Law are voidable.” 132a. It may here be observed that when one of k Case where two innocent persons must suffer by the oneoftwo. fraud of a third person, that person shall be sersons ; ‘4 must suffer. the sufferer, who by his conduct, however innocently, put it in the power of the third person to commit the fraud. 133. 1 Adsetis v. Hives, 33 Beav. 52; Hunter v. Walters, L. R. 11 Eq. 292.* (a) Smith’s Manual of Common Law, Am. ed. 59, 60; St. ¢ 240, 241. * The rule is well settled that when one of two innocent par- ties must suffer loss by the default or fraud of a third the loss must fall upon him who first gave the confidence, or whose act misled the other. Chitty on Contracts, 763; Rost v. French, 13 Wend. 573; Gill v. Schley, 2 Md. Ch. D. 281; Bigelow v. Comegys, 5 O. S. RB. 256; Licbarrow v. Mason, 2 T. R. 70. 68 CONSTRUCTIVE FRAUD. CHAPTER IV. OF CONSTRUCTIVE FRAUD. ConstTRUCTIVE frauds are acts, statements, or omissions, which operate as virtual frauds, 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 charge- able therewith, to nothing more than what is justifi- able or allowable.* 134. Definition. * Jn the class of cases considered in the preceding chapter under the head of actual fraud it is necessary for the party alleg- ing the fraud to support the charge by express evidence. In con- sidering the cases of constructive fraud, it will be seen that, upon the appearance of certain relations between the parties, termed “relations of confidence,” the law raises a presumption that the transaction complained of was effected by fraud or undue influ- ence by the opposite party, who holds a position affording pecu- liar opportunities for taking advantage, and the law requires the party in the superior position to show that his action has been honest; and raises a presumption against a party who sustains a confidential relation in respect of property, pecuniary interest, or bodily custody of another, in any transaction having relation thereto, a presumption that the party in the inferior position has been affected by undue and unlawful means. See Bigelow on Fraud, pp. 190, et seg. CONSTRUCTIVE FRAUD. 69 The cases which will be noticed in the t chapter may be arranged in four ofconstiuce eerie P y 8 : tive frauds. I. Relief is granted, on the ground of con- structive fraud upon public policy, against an paliie agreements, provisions, and transactions, ee which, although they may not operate as frauds upon individuals, would, if generally permitted, be preju- dicial to the welfare of the community. 135. Thus, 1. Marriage brokage contracts, which are , ieardiage agreements whereby a person engages to give brokage 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 utterly 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.’ 136. 2. The same rules are applied to‘bonds , donee and other agreements entered into as a re- Hience tes, ward for using influence over another, to in- ‘°"* duce him to make a will for the benefit of the obligor ;” for such contracts encourage a spirit of artifice and scheming most prejudicial to the moral tone of those 1 St. 2 260-3; 2 Lead. Cas. Eq., 2d ed. 178, et seg.* 2 St. 3 265.. * Boynton v. Hubbard, 7 Mass. 112. 70 CONSTRUCTIVE FRAUD. in whom it exists ; and they tend to deceive and in- jure others. 137. 3. On a similar ground, secret contracts 3. Contracts . : to facilitate made with parents, or guardians, or other marriages, . . . . persons standing in a peculiar relation to one of the parties, whereby, on a treaty of marriage, they are to receive remuneration for promoting the marriage or giving their consent to it, are held void.' 138. 4 Contracts _ 4. On the other hand, a contract is void, alttons fn if it is expressly in restraint of marriage maareage of generally, or if it is so restricted that it is Vani" probable that it may virtually operate in maecd restraint of marriage generally;? as, that a a woman shall not marry a man who has not an estate of £500 a year,® or shall not marry till fifty 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 par- ticular trade or occupation.(a) 139. A contract or condition imposed on a married woman to cease to reside at a place where her husband then resides, is bad. 140. 1 St. @ 266, 267; 2 Lead. Cas. Eq., 2d ed. 178, et seg. * See St. 3 274, 276-283; Scott v. Tyler, 2 Lead. Cas. Eq., 2d ed. 105, 198, et seg. 3 St. 2 280. 4 St. 2 283. 5 Wilkinson v. Wilkinson, L. R. 12 Eq. 604. (a) As to conditions, conditional limitations, and special limi- tations in restraint of marriage, see the writer’s “ Compendium of the Law of Property,” 5th ed., par. 198-228; 2 Lead. Cas. Eq., 2d ed. 178, ef seg. CONSTRUCTIVE FRAUD. 71 5. So, contracts and conditions in general . . 5. Contracts restraint of trade, or beyond what is reason- gr cons | ably necessary for the protection of the party restraint of . 7 "i . rade, seeking protection, are void, as tending to discourage industry, enterprise, and just competition. But a person may be restrained from carrying on trade in or within a certain distance from a particular place, or with particular persons, or for a reasonable limited time. Anda person may lawfully sell a secret in his trade or business, and restrict himself from using the secret.’ 141, 6. Where, pending a bill in Parliament, ¢ praua in an agreement is entered into to produce a’ [ejtiontos 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.’ 142. 7. Contracts for the buying, selling, or 2 é ‘ 7. Contracts procuring of public offices are void, as tend- for public ing to introduce into public offices persons 1 St. @ 292; Benwell v. Inns, 24 Beav. 307; Harms v. Parsons, 32 Beay. 328; Catt v. Tourle, L. R. 4 Ch. Ap. 654; Leather Cloth Co. v. Lorsont, L. R. 9 Eq. 345; Allsopp v. Wheatcroft, L. R. 15 Eq. 59.* 2 St. 8 293a.t * Peabody v. Norfolk, 98 Mass. 452. + So in America a contract to procure the passage of an Act of the Legislature, by any sinister means, or by using personal influ- ence with the members, is void, as being inconsistent with public policy and the integrity of our political institutions. St. Eq. Jur. ¢ 293b; Marshall v. Balto. & Ohio R. R., 16 How. Sup. Ct. 314; Mills v, Mills, 40 N. Y. 543 Frost ». Belmont, 6 Allen, 152. But sée algo Trist v. Childs, 21 Wall. 441. oo“. 72 CONSTRUCTIVE FRAUD. who are unfit for them in respect of character and other qualifications... 143. 8. So are agreements for the suppres- 8. Suppres- ste . a sion of sion of criminal prosecutions,’ as tending to pmveed: weaken the beneficial preventive influence of the Law, by diminishing the certainty of punishment. 144. + ee 9. So are contracts which have a tendency Pory ang. to encourage champerty,’ and agreements, siderations. bonds, and securities founded on corrupt considerations, that is, on the commission of what is contrary to the moral or municipal Law, or on the evasion thereof. And where contracts are intended to carry out an immoral purpose (as in the case of a house let for a brothel), even though that purpose do not ap- pear on the face of the instrument, none of the stipu- lations comprised therein will be enforced.’ 145. Distinction Wherever any contract or conveyance is between’ _ void, either by a positive Law or upon prin- voidable innae ciples of public policy, it is deemed incapable eae cane of confirmation; it being a maxim, Quod ab Annation. initio non valet, in tractu temporis non con- valescit. But where it is merely voidable, or turns upon circumstances of undue advantage, surprise, or imposition, there it is valid until rescinded, and if it is deliberately and upon full examination confirmed by the parties, it will remain valid.6 146. 1 St. 3 295. ® St. ¢ 294. 5 St. ¢ 294; Reynell ». Sprye, 1 D. M. & G. 660. 4 St. ¢ 294-7. 5 Smith v. White, L. R. 1 Eq. 626. ® St. 2 306. See Reese River Silver ees Co. v. Smith, L. R. 4H. L, 64. CONSTRUCTIVE FRAUD. 73 And where a party to a deed acts upon it in part, that confirms it altogether, in the absence of evidence of a contrary intent.! 147. TI. With regard to transactions inter 1 pangs % . in the case vivos, where a reasonable confidence is re- grees i ‘ . in the confi- posed in another person, or a peculiar in- in the cons- fluence is possessed by him in consequence ‘so of standing in a confidential relation, and he makes use of that confidence or that influence to obtain an advantage to himself at the expense of the party confiding in him or under his influence, he will not be permitted to retain any such advantage, how- ever unimpeachable the transaction would have been if no such confidence had been reposed, or no such con- fidential relation had existed.* But it has been held that this does not apply to a devise or bequest. To set aside a testamentary disposition on account of un- due influence, it must amount to this,—that the testa- tor was not a free agent.? 148. 1 Jarratt v. Aldam, L. R. 9 Eq. 463; Davies v. Davies, L. R. 9 Eq. 468. * Huguenin v. Baseley, 2 Lead. Cas. Eq., 2d ed. 462, et seg. ; Sharp v. Leach, 31 Beay. 491; Broun v. Kennedy, 33 Beav. 133; see also Rhodes v. Bate, 4 Gif. 670; L. R., 1 Ch. Ap. 252; Tate v. Williamson, L. R. 1 Eq. 528; 2 Ch. Ap. 55; Moxon », Payne, L. R. 8 Ch. Ap. 881.* 3 Parfitt v. Lawless, L. R. 2 Prob. 462. * Adams’s Eq. 183, et seg., and notes; Hill on Trustees, 4th Am. ed. 243-256. 74 CONSTRUCTIVE FRAUD. 1. Contracts and conveyances whereby ono benefits are secured by children to their toro puentis parents or to persons who stand in loco having in parentis, or dispositions made by young per- "sons in favor of their relatives who have an influence over them, if not entered into with scru- pulous good faith and reasonable, under the cireum- stances, will be set aside, unless third persons have ac- quired-an interest under them.’ In such cases, it must be proved, first, that the deed was the real and actual deed of the child or young person, and was intended by him to have the operation it has; and: secondly, that such intention was fairly produced. And where a child, recently after attaining majority, makes over property to the father, without consideration, or for an inadequate consideration, Equity will require the fa- ther to be able to show that the child was really a free agent and had adequate and independent advice.’ And if an estate held in trust for a father for life, the 1 St. @ 309; Hoghton 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, 3 Drew. 556, 558, 577; Baker v. Bradley, 7 D. M. & G. 597, 620; Potts ». Surr, 34 Beav. 548; Berdoe v. Dawson, 34 Beav. 603; Sercombe v. Sanders, 34 Beav. 382; Chambers v. Crabbe, 34 Beav. 457; Turner ». Collins, L. R. 7 Ch. Ap. 329; Kempson v. Ashbee, L. R. 10 Ch. Ap. 15.* ? Savery v. King, 5 H. L. Cas. 627, 655; Bury 2. Oppenheim, 26 Beav. 594; Davies v. Davies, 4 Gif. 417.+ * Taylor v. Taylor, 8 How. Sup. Ct. 201; Caspell v. Dubois, 4 Barb, 393; see also Jenkins v. Pye, 12 Peters, 253, 254. + Haight v. Moore, 37 N. Y. Sup. Ct. 161. CONSTRUCTIVE FRAUD. 75 remainder to his son 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.’ 149. If a person seeking to impugn such transactions is not reasonably prompt in so doing, after the influence has ceased, no relief will be given, unless there is ac- - tual fraud.? 150. 2. During the existence of guardianship, the relative situation of the parties occasions a general inability to deal with each other. And’ Courts of «Equity will not permit transactions between guardians and wards to stand, even when they have occurred after the minority has ceased, if the interme- diate period is short; especially if all the duties at- tached to the office have not ceased, or if the estate still remains in some sort under the control of the guardian; unless the circumstances demonstrate the fullest deliberation on the part of the ward, and the most absolute good faith on the part of the guardian.’ 161. 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 sufficient time has in- tervened to allow the ward to feel completely inde- 2. Guardian. ' Hannah v. Hodgson, 30 Beav. 19. 2 Turner v. Collins, L. R.7 Ch. Ap. 829; Kempson v. Ashbee, L. R. 10 Ch. Ap. 15. 3 St. 2 317-320; Wright ». Vanderplank, 2 K. & J. 1. 76 CONSTRUCTIVE FRAUD. pendent of the guardian, there is then no objection even to a bounty being conferred upon the latter.’ 152. 3. The same principles are applied to per- guardians, SONS standing in the relation of quasi guar- ministers” dians, or confidential advisers, or ministers of religion. a i 4 . of religion,’ and to every case where influ- ence is acquired and abused, where confidence is re- posed and betrayed.2 153. 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 fairness and propriety of the transaction will be thrown on the solicitor, or he must show that the client had sufficient advice and assistance to relieve him from the pressure arising from the relation of solicitor and client, and that he has taken no advan- tage 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.’ And a solicitor who is an agent for a sale 4. Solicitors. 1 St. 3 320. ? Nottidge v. Prince, 2 Gif. 246. 5 Smith v. Kay, 7 H. L. Cas. 760, 771, 778, 779; Broun v. Ken- nedy, 33 Beay. 133; Graham v. Johnson, L. R. 8 Eq. 36; St. 2 319.* 4 Sugd. Concise View, 548; St. 2 310-313; Holman »v. Loynes, 4D. M.& G. 270; Tomson v, Judge, 3 Drew. 306; Savery ». King, 5 H. L. Cas. 627,655, 656; Waters ». Thorn, 22 Beav. 547; * Adams’s Eq. [184], [185]. CONSTRUCTIVE FRAUD. . 77 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.t And if a solici- tor can show that he is entitled to purchase, yet if, in- stead of openly purchasing, he purchases in the name of a trustee or agent, without disclosing the fact, no such purchase can stand.? 154. Asa general rule, a solicitor shall not accept 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 remunera- tion to which he is entitled.’ 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 employ- ing another solicitor to recover it, was void, as con- Spencer v. Topham, Id. 573; Cowdry v. Day, 1 Gif. 316; Gresley v. Mousley, 1 Gif. 450; 4 D. & J. 78; Pearson v. Benson, 28 Beav. 598; Gibbs v. Daniel, 4 Gif. 1.* 1 In re Bloye’s Trust, 1 Mac. & G. 494, 497. 2 Lewis v. Hillman, 3 H. L. Cas. 630. 3 4 Cruise T. 32, c. 26, 3 35; St. 2 312; Moss v. Bainbrigge, 18 Beav. 478; 6 D. M. & G. 292; Tomson v. Judge, 3 Drew. 306; Re Holmes’s Estate, 3 Gif. 337; Nanney v. Williams, 22 Beav. 452; Walker v. Smith, 29 Beav. 394; Bank of London ». Tyrrell, and Tyrrell v. Bank of London, 27 Beav. 273; 10 H. L. Cas. 26; O’Brien v. Lewis, 4 Gif. 221. * Adams’s Eq. [184], note; Bigelow on Fraud, 207-209, and case there cited; Stockton v. Ford, 11 How. Sup. Ct. 232-246. + Bain v. Brown, 56 N. Y. 285. t See Perry on Trusts, 3 202, 203, and cases cited.. 78 zs CONSTRUCTIVE FRAUD: trary to the policy of the Law.’ And an agreement by a client to allow his solicitor interest on his bill of costs, could not be maintained—at all events, not un- less the solicitor informed the client that the Law allowed no such charge, or the client acquiesced, after the termination of the relation, and after proper advice upon the subject.’ But a deed executed by a client in favor of his solicitor, if voidable, may be confirmed by the will of the client.2 155. 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 business hereafter to be done was void. And if a solicitor takes a ‘gross sum for his services without an account, he should preserve evidence of the fairness of the agreement, and that the client had good advice, or had full opportunity and capacity to judge for himself.* 156. But these paragraphs must be read subject to the stat. 33 and 34 Vict. c. 28. 157. If a solicitor and mortgagee obtains a conveyance from the mortgagor, and the mortgagor is a man in humble circumstances without any legal advice, the onus of justifying the transaction and showing that it was a fair and right transaction is thrown upon the mortgagee.” 158. ! Strange v. Brennan, 15 Sim. 346. 2 Lyddon v. Moss, 4D. & J. 104. * Stump v. Gaby, 2 D. M. & G. 623. But see Waters », Thorn, 22 Beav. 547, 559. 4 In re Newman, 30 Beav. 196; Morgan v. Higgins, 1 Gif. 277. 5 Prees v. Coke, L. R. 6 Ch. Ap. 645, 649. CONSTRUCTIVE FRAUD. . 79 5. Similar principles apply to a medical adviser and his patient.!. 159. 6. An agent will not be permitted to reap any advantage by becoming secret vendor or purchaser of property which he is authorized to buy or sell for his principal.’ So that if an agent sells his own property to his principal as the property of another, without disclosing the fact, or if an agent purchases 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 ina 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, at the option of the latter? And in all transactions directly and openly entered 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.t 160. 1 St. 2815. 2 St. 2315. 3 St. 3 316, 1211a; Bentley v. Craven, 18 Beav. 75; Bank of London. v. Tyrrell, 27 Beav. 273; Tyrrell v. Bank of London, 10 H. L. Cas. 26; Wentworth v. Lloyd, 32 Beav. 467; Kimber ». Barber, L. R. 8 Ch. Ap. 56.* 4 St. ¢ 315, 316 a; see Dally ». Wonham, 33 Beav. 154.+ 5. Doctor. 6. Agent. * Torry v. Bank of New Orleans, 9 Paige, 649; Dobson v. Racey, 3 Sandf. 61; Voorhees v. Presbyterian Church, 8 Barb. 136. + The principal may at his election deem the bargain made or act done by his agent valid or not ; the agent himself cannot avoid it on that ground. Story, Agency, % 210, cases there cited. ;. 80 CONSTRUCTIVE FRAUD. 7. To guard against the danger of any advantage being taken by a trustee, and to remove all temptation from him, he is never permitted | to obtain any profit or advantage to himself in manag- ing 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.’ A trustee cannot pur- chase 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, conceal- ment, or advantage on the part of the trustee, and no want of protection and security on the part of the ces- tui que trust, the cestui que trust may require a re-con- veyance or a re-sale; and, if the re-sale produces more than the trustee gave, the cestui que trust may repudi- ate the first sale, and adopt the re-sale; if less, he may affirm the first sale? 161. 8. Counse, 8+ In order to prevent the temptation of aneU Iss availing themselves of information for their trustees, and solic: own benefit, and concealing it from those for bankrupt one insolvent, Whom they act, the same restriction on the auctioneers, _ + ° anderedi-' Tight of purchase applies to other persons tors. . . en . . : oP standing in similar confidential situations; as 1 St. ¢ 321, 322; see infra, Tit. II, c. VI, div. IV; and c. VII, div. XII. 2 Sugd. V. & P., 14th ed. 69, 691-4; Lewin on Trusts, 4th ed. 335-342; St. ¢ 322; 2 Sp. 948, 944; Smedley v. Varley, 23 Beay. 358 ; Denton v. Donner, Id. 285; 1 Lead. Cas: Eq., 4th Am: ed: 154,165, * wR, a 7. Trustees. CONSTRUCTIVE FRAUD. 81 to counsel, agents, trustees, and solicitors of a bank- rupt’s or insolvent’s estate, auctioneers, and creditors, ‘who have been consulted as to the sale? 162. 9. And it may be laid down as a general A ae 9, Executors rule with regard to executors or administra- or adlieigiie- tors, that they will not be permitted under any circumstances to derive a benefit from the manner in which they transact the business of their office.’ 163. 10. Entire good faith is required between ,, |, . . Debtor, debtor and creditor and sureties. And if a eee creditor does any act affecting 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 the original contract, the surety may set up such contract as a defence to any proceeding against him, in a Court of Law or Equity. So that if a creditor stipu- lates 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 inju- 1 St. ¢ 322; 2 Sp. 943; Pooley v. Quilter, 2 D. & J. 327.* 2 St. 3 322 ; Robinson v. Pett, 2 Lead. Cas. Eq., 4th Am. ed. 238, 241, 254, et sed. * Cram v. Mitchell, 1 Sandf. Ch. 257; Farnam v. Brooks, 9 Pick. 212. 82 CONSTRUCTIVE’ FRAUD. rious to him.’ But it has been held (improperly, as the writer with great deference submits), that a cove- nant not to sue the debtor, or a deed of release only amounting to such a covenant, and reserving the credi- tor’s rights against the surety, does not discharge the surety.2 And a conditional agreement for further time does not discharge the surety, when, from the agree- ment not being performed, the agreement does not become binding.’ 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 principal debtor, when further time is given, that the surety shall not be thereby discharged.‘ Mere delay on the part of the creditor, at least if some other Equity does not inter- vene, unaccompanied with any valid contract for such delay, will not amount to laches, so as to discharge the surety.’ But the sureties are entitled to come into a 1 St. ¢ 324-6, 883, 883a, note; Rees v. Berrington, 2 Lead. Cas. Fq., 4th Am. ed. 974, 994, et seg. ; Tucker v. Laing, 2 K. & J. 745; Blest v. Brown, 8 Gif. 450; 4D. F. & J. 367; Strange v. Fooks, 4 Gif. 408; Oriental Financial Corporation v. Overend & Co., L. BR. 7 Ch. Ap. 142; Wilson v. Lloyd, L. R. 16 Eq. 60.* ? Green v. Wynn, L. R. 4 Ch. Ap. 204. + St. 2 883, note. 4 Webb v. Hewitt, 3 K. & J. 442; Wyke v. Rogers, 1 D. M. & G. 408; Lord Hatherley, C., in Oriental Financial Corporation v. Overend & Co., L. R. 7 Ch. Ap. 150. 5 St. @ 326; Tucker v. Laing, 2 K. & J. 745. * United States v. Howell, 4 Wash. C. C. 620-623; Harris v. Brooks, 21 Pick. 195-197; 2 Am. Lead. Cas. (5th ed.) 389, 412, 417, 466, CONSTRUCTIVE’ FRAUD: 83 Court of Equity, after a debt has become due, to com- pel the debtor, or any one who has given them an in- demnity, to exonerate them from their liability by paying the debt... 164. III. Relief will be granted in favor of s1 peands those classes of persons, of whom, from their incase peculiar circumstances, irrespective of any peculiarly mental incapacity, undue advantage may ™posed on. readily be taken, even where the transaction could not be impeached if entered into by parties otherwise sit- uated.’ 165. Thus, 1. Bargains with expectant heirs will be ; set aside, unless the purchaser, on whom the «ith ‘expee= : taut heirs. 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 interests are future, and therefore apt to be underestimated or improvi- ' St. 2 327, 369; Wooldridge v. Norris, L. R. 6 Eq. 410; and see judgment in Green v. Wynn, L. R. 4 Ch. Ap. 207. ? Earl of Chesterfield v. Janssen, 1 Lead. Cas. Eq., 2d ed. 428, et seq.* * A conveyance or contract will be set aside, wherever it has been obtained through undue influence over a person greatly under the power of another, if there is inadequacy of price, or clear ground of inference that a confidence reposed has been abused, or advantage has been taken of incompetency, weakness of under- standing, or clouded or enfeebled faculties. Wheeler v. Smith, et al.,9 How. Sup. Ct. 55, 82; Whelan v. Whelan, 3 Cowen, 539, 572. See also Taylor v. Taylor et al., 8 How. Sup. Ct. 183. 84 CONSTRUCTIVE FRAUD. dently disposed of, especially by the necessitous, the thoughtless, and the young; and it is also the object of Equity to discourage transactions by which the inten- tions of the ancestor or other person from whom the property was expected are disappointed, and, by cut- ting off relief at the hands of strangers, to oblige the heir to disclose his difficulties at home.’ 166. "Tf 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.” 167. The repeal of the usury laws has not altered the rules of the Court as to dealings with expectants.? 168. Tae The same relief was afforded to remainder- mainder. men and reversioners, unless the purchaser versioners. could show that a full consideration was paid, or that the bargain was fully made known to and approved by their parents or other persons standing in loco parentis, who had the means of obviating the ne- cessity of such an alienation of their future interests.‘ 1 See St. 3 334-340, 343. 2 St. ¢ 345, 346. 3 Croft ». Graham, 2 D. J. & 8.155; Miller v. Cook, L. R. 10 Eq. 641, 646; Tyler v. Yates, L. R. 11 Eq. 265; 6 Ch. Ap. 665; Earl of Aylesford v. Morris, L. R. 8 Ch. 490. 4 St. 2 334-340; Salter v. Bradshaw, 26 Beav. 161; St. Albyn 7. Harding, 27 Beav. 11; Talbot v. Staniforth, 1 Johns. & H. 484; Foster v. Roberts, 29 Beav. 467; Jones v. Ricketts, 31 Beav. 130; Sharp v. Leach, 31 Beav. 491; Nesbitt v. Berridge, 32 Beav. 282; CONSTRUCTIVE FRAUD. 85 This doctrine applied to a charge as well as a sale, and notwithstanding the expectant was of mature age, and fully understood the nature of the transaction. And it was not necessary to show that he was in pecuniary distress ; for that would be assumed.’ 169. By the Stat. 31 Vict. c. 4, it is enacted that “no purchase made bond fide and without fraud or unfair dealing, of any reversionary interest in real or personal estate shall hereafter 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 con- tract, conveyance, or assignment under or by which any beneficial interest in any kind of property may be acquired” (s. 2); and that “this Act shall come into operation on the first day of January, One thou- sand eight hundred and sixty-eight, and shall not apply to any purchase concerning which any suit shall be then depending ”(s. 3). 170. This Act leaves undervalue still a material element in cases in which it is not the sole equitable ground for relief? 171. Dally v. Wonham, 33 Beav. 154, 162; Perfect v. Lane, 3 D. F. & J. 369; Beynon v. Cook, L. R. 10 Ch. Ap. 389.* 1 Bromley v. Smith, 26 Beav. 644; Tynte v. Hodge, 2 Hem. & Mil. 287.+ 2 See Miller v. Cook, L. R. 10 Eq. 641; Tyler v. Yates, L. R. 11 Eq. 265. 3 Earl of mpretard: v. Morris, L. R. 8 Ch. Ap. 484, 490. * See also Jenkins v. Stetson, 9 Allen, 128. + Bigelow on Frauds, 276. 86 CONSTRUCTIVE FRAUD. 2 Postenbit. 2+ On similar principles post-obit bonds pends si and other securities of the like nature are oer set aside, when made by heirs and other expectants. A post-obit bond is an agreement made on the receipt of the 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... 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 adver- tisements.” If, however, these contracts 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? 172. 3 Salento 3+ Where tradesmen and others have sold seeoan. goods to young and expectant heirs, at ex- ‘autpries. Ovbitant prices, and under circumstances in- dicative of imposition, or of undue influence, or of an intention to connive at profuse expenditure, unknown to their parents or other persons standing in loco parentis, Equity has cut down the claim to a just amount. 173. 4. Common 4 Common sailors, being so extremely sailors. generous, credulous, and improvident a class of men that they require guardianship all their lives, Equity treats them in the same light as young ex- pectant heirs; and relief is generally afforded against contracts respecting their prize-money or wages, wher- 1 St. 4 342. ? St. 4 347. 3 St. 3 344. St. 4 348. CONSTRUCTIVE FRAUD. 87 ever any inequality appears in the bargain, or any undue advantage has been taken.' 174. 5. Where a person, shortly after attaining , Dispo- his majority, makes a gift, sale or lease, in SU" "2. favor of a relative, it will be set aside, unless ™/*'#Y- the grantor or lessor makes it intentionally and de- liberately, after having had the fullest information on the subject, and separate, independent, and disinter- ested 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.? 175. _ IV. Where something is said or done, or jy... some omission is made which operates as a frandson individuals virtual fraud upon an individual, but may i're-pective ofany confi- have been nothing more than mere neglect, §Q)a\nty eculiar hae unconnected with any selfish or evil design, Pi tik or may amount, in the opinion of the party, ?°!"'™ to nothing more than justifiable artifice, or to a fair attempt to obtain a reasonable advantage, or to an al- lowable act, statement, or omission of some other kind, relief will be granted on the ground of constructive fraud. 176. Thus, 1. Where a person by some act, statement, | srctena- or omission, whether beneficially to himself i8- or not, knowingly produces a false impression on another, who is misled and injured thereby ; and such act, statement, or omission when rightly considered, 1 St. 3 332: 2 Grosvenor v. Sherratt, 28 Beav. 659.* * St. Eq. Jur. 3 337. 88 CONSTRUCTIVE FRAUD. is contrary 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 suffer thereby on the ground of constructive fraud.’ For instance, 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 vendor has a good title, the real owner will not be allowed to assert his title to it.” 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 trans- action.2 And where a person becomes a trustee 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 postponed to another person who had a subsequent charge on that share, and had no notice of the trustee’s charge, but gave him due notice of his own charge.t And where a person grants a lease on the security of which money is lent, and the lessor, before the lease was granted, 2 See St. 2 384-390; 2 Sp. 575, 576. * St. ¢ 385, 389. 5 See St. 3 387.* 4 Commissioners of Public Works v. Harby, 23 Beay. 508.’ * Wendell v. Van Rensselaer, 1 John’s Ch. 354. CONSTRUCTIVE FRAUD. 89 was asked by the lender whether he intended to grant such lease, and he answered in the affirmative, forget- ting that he had previously granted another lease to the same person, who had assigned it for value, the lessor was held liable for the loss arising from the invalidity of the security.?. 177. 2. Upon sound principle, agreements 4 prands whereby persons agree not to bid against each 0” auctions. other at an auction, especially where the sameis directed or required by Law, are held void. For such agreements may cause the property to be sold at an under value, and thereby injure the person interested in the pro- ceeds of sale; and they have a tendency to prejudice the character and value of auctions in general.” On the other hand, if underbidders or puffers are em- ployed at an auction to enhance the price, and other bidders are thereby misled, the sale will be void.*(a) 178. 3. As the Statute of Frauds was designed aan as a protection against fraud, it will never sefentious be allowed to be set up as a protection and platlite ot support of fraud.* And hence, where from any circumstances which may have resulted from fraud, 1 Slim v. Croucher, 1 D. F. & J. 518. 2 See St. ¢ 293; Sugd. V. & P., 13thed. 93. But In re Carew’s Estate, 26 Beav. 187, and Galton v. Emuss, 1 Coll. 243, such agree- ments were held to be not illegal. (See Darts. V. & P., 4th ed. 99.) 3 St. 2 293. 4 Lincoln v. Wright, 4 D. & J. 16; Haigh v. Kaye, L. B. 7 Ch, Ap. 469; Booth v. Turle, L. R. 16 Eq. 182. (a) See stat. 30 and 31 Vict. c. 48, at the end of the book. 8 90 CONSTRUCTIVE 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 shelter himself behind the provisions of the Statute. 179. 4 Clanaes. 4: If clandestine marriage contracts are vnems,. designed to impose on parents or persons ee 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 property, such contracts will be set aside, or the equities will be held the same as if they had not been entered into.’ 180. 5.Frandson 0" ‘90, Telief will be granted to the injured marriages. narties, 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 commit a fraud upon a marriage. As where a parent declines to consent to a marriage, on account of the in- tended husband being in debt, and the brother of the latter gives a bond for the debts, to procure such con- sent; and the intended husband then gives a secret counter-bond -to his brother, to indemnify him against the first bond.* So where a brother, on the marriage of his sister, let her have a sum of money privately, that her fortune might appear to be as much as was insisted on, and the sister gave a bond to the brother to secure the repayment thereof, the bond was set aside.° 1 See St. 2 330. ? See St. @ 275. 3 See St. 2 268-272. 4 St. 2 269. 5 St. 3270. ‘ oe CONSTRUCTIVE FRAUD. 91 So where upon a treaty of marriage, a creditor of the intended husband concealed his own debt, and misrep- resented to the wife’s father the amount of the hus- band’s debts, the transaction was. treated as a fraud upon the marriage, and the creditor was prevented from enforcing his debt.' And where a father, on the marriage 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, re- taining the annual income thereof for his life? 181. 6. Relief will also be granted against acts 5 pranas secretly done by a woman in contravention eee of the marital rights, or in disappointment P°'?"s of the just expectations of her intended husband. As where a woman, in contemplation of marriage, and without the privity of her intended husband, makes a settlement to her separate use, or a conveyance in favor of persons for whom she is under no moral ob- “ligation to provide. But a reasonable provision for her children by a former marriage, under circum- stances of good faith, is free from objection.’ 182. 1 St. @ 271. 2 St. 2 382. 3 St. 273; 2 Sp. 505; Countess of Strathmore »v. Bowes, 1 Lead. Cas. Eq., 2d ed. 325, ef seq.; Prideaux v. Lonsdale, 4 Gif. 159; 1D. J. & S. 433; Downes v. J ennings, 32 Beav. 290.* * Bigelow on Fraud, 52-55. It has been frequently decided in this country, that a secret voluntary settlement or conveyance of her property by a woman, pending a treaty of marriage, and in contemplation of marriage, without the knowledge of her intended husband, is fraudulent and void against her husband, as being in 92 CONSTRUCTIVE FRAUD. a ads 7. In consequence of the stat. 13 Eliz. c. under the 5, deeds, though good as between the parties ae and in other respects, are void as against creditors, when made with an actual intent to defraud them, even though such deeds be for valuable con- sideration,’ except as regards a bond fide purchaser from the debtor, or from an assignee of the debtor, without notice of the circumstances amounting to such actual fraud. And if a person makes a conveyance or assignment of any real or personal property which is liable to his debts (unless it is to a purchaser for valu- able consideration 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 besides that property available to pay the debts, such conveyance or assignment is void as against those who were creditors at the time of and subsequent to the deed, to the extent to which it may be necessary to deal with the property for their satisfaction.2 A deed, 14 Cruise T. 32, c. 27, 3 4; Shee v. French, 3 Drew. 717; Bessey v. Windham, 6 Ad. & El. (N. 8.) 166. ? 4 Cruise T. 32, c. 27, 24; Strong v. Strong, 18 Beav. 408; Bott v. Smith, 21 Beay. 511; Ware v. Gardner, L. R. 7 Eq. 317. 3 See St. 2 352-374, 381; 2 Sp. 887; 4 Cruise T. 32, c. 27, 2 15-17; Coote Mortg., 3d ed. 238; 2 Bl. Com. 441; 1 Pres. Shep. T. 66; Ad. Con., 6th ed. 149-156; Twyne’s Case, 3 Co. 80; Chit. Con. 8th ed. 380, et seg.; Skarf v. Soulby, 1 Mac. & G. 364; Re Ma- gawley’s Trust,5 De G. & 8. 1; Bott v. Smith, 21 Beav. 511; derogation of his marital rights and just expectations. See“cases cited in notes of the American Editor, 1 White & Tudor’s Lead. Cas. Eq.; Countess of Strathmore v. Bowes, 618, 619; Bigelow on Fraud, 52-55. CONSTRUCTIVE FRAUD. 93 however, which is apparently voluntary, may be shown by extrinsic evidence to have been made for valuable consideration, and may be supported as such against creditors." And a deed is not necessarily void under this Act, merely because designed to prefer or defeat a particular creditor.’ 183. Barton v. Vanheythuysen, 11 Hare, 126; Dening v. Ware, 22 Beav. 184; Holmes v. Penny, 3 K. & J. 90; Turnley v. Hooper, 3 Sm. & G.349; Darvillev. Terry, 6 Hurl. & Norm. 807; Thomp- son v. Webster, 4 Drew. 628; 4 D. & J. 600; Acraman v. Corbett, 1 Johns. & Hem. 410; Barling v. Bishopp, 29 Beav. 417; Stokoe v. Cowan, 29 Beav. 687; Spirett v. Willows, 3 D. J. & S. 298; Smith v. Cherrill, L. R. 4 Eq. 390; Reese River Silver Mining Company v. Atwell, L. R. 7 Eq. 347; Freeman v. Pope, L. R. 9 Eq. 206; 5 Ch. Ap. 538 ; Allen v. Bonnett, L. R. 5 Ch. Ap. 577; Cornish v. Clark, L. R. 14 Eq. 184; Kent v. Riley, L. R. 14 Eq. 190; Taylor v. Coenen, L. R. 1 Ch. D. 636.* 1 Pott v. Todhunter, 2 Coll. 76. 2 Ad. Con., 6th ed. 151; Chit. Con., 8th ed. 383; Alton v. Har- rison, L. R. 4 Ch. Ap. 622. * The doctrine established in the Supreme Court of the United States is, that a voluntary conveyance made by a person not in- debted at the time in favor of his wife or children, cannot be im- peached by subsequent creditors, upon the mere .ground of its being voluntary. It must be shown to have been fraudulent or . made with a view to future debts. Sexton v. Wheaton, 8 Wheaton, 229, 230 ; Hinds, Lessee, v. Longworth, 11 Wheaton, 199; 4 Kent Com. 464 n. and cases cited. And the mere fact of indebtedness at the time does not, per se, constitute a substantive ground to avoid a voluntary conveyance for fraud even in regard to prior creditors. The question whether fraudulent or not is to be ascer- tained from all the ‘surrounding circumstances. See also St. Eq. Jur. 3 362; McLaughlin v. Bank of Potomac, 7 How. Sup. Ct. 220; Re Cornwall, 9 Blatchford, 116; Schouler’s Dom. Rel. 280, 281. 4 94 CONSTRUCTIVE FRAUD. A man who contemplates going into trade, cannot, on the eve of doing so, take the bulk of his property out of the reach of those who may become his credi- tors in the trading operations. So that a voluntary settlement, whereby the settlor takes the bulk of his property out of the reach of his creditors, shortly be- fore engaging in trade of a hazardous character, may be set aside in a suit on behalf of creditors who became such after the settlement.’ 184. le eaiie 8. If a creditor, who is a party to a com- oneredtiors. Hosition 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 received, 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 con- sidered 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.? 185. So an agreement between an insolvent debtor and his assignee, by which the estate of the insolvent is to be held in trust, to pay certain annuities to the insolv- ent, and to apply the surplus to the extinction of a debt to the assignee, will be rescinded, even at the in- stance of the insolvent himself.* And it was held to 1 Mackay v. Douglass, L, R. 14 Eq. 106. ® See St. 2 378, 379; 2 Sp. 357-860. 3 St. 2 380, CONSTRUCTIVE FRAUD. 95 be a fraud for a creditor secretly to obtain a larger dividend than was received by the other creditors, under the arrangement clause in the Bankrupt Act of 1849 (s. 230); and relief was granted even at the in- stance of the debtor.’ 186. 9. Where a person takes a mortgage, of 9 sforteage a conveyance, or a settlement, with notice of oT consty- the legal or equitable title of other persons Ho"iteof to the same property, his own title will be ‘’ postponed and made subservient to their title, or to that of a transferee from them.’ 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 mortgage will raise a trust in him to the amount of the equi- table mortgage. And, on the same principle, if a mortgagee, when he takes his security from a partner, knows that the firm are in possession of the-property, he has constructive notice of the title of the partner- ship, and his claim must be postponed to that of the other partner, as regards his share, and his right to be recouped in respect of partnership debts paid off by 1 Mare v. Sandford, 1 Giff. 288. 2 St. 3 395, 386; Sugd. Concise View, 595-7; Le Neve v. Le Neve, 2 Lead. Cas. Eiq., 2d ed. 23, e¢ seg.; Atterbury v. Wallis, 8 D. M. & G. 454; Pease v. Jackson, L. R. 3 Ch. Ap. 576; Barnes v. Wood, L. R. 8 Eq. 424; Maxfield v. Burton, L. R. 17 Eq. 15; except in cases within the stat. 27 Eliz. c. 4, See par. 193-9, injra.* 5 St. 3 395. * Bigelow on Fraud, 293; Atlantic Bank v. Harris, 118 Mass. 147. a ee : 96 CONSTRUCTIVE FRAUD: him, whether contracted before or after the mortgage.’ 187. Notice is attended with the same consequence even where the property lies in a register county. For, the object of the Registration Acts being only to secure subsequent purchasers and mortgagees against prior secret conveyances and incumbrances, if a subsequent purchaser or mortgagee has notice, at the time of his purchase or mortgage, of any prior unregistered con- veyance or mortgage, he will not be permitted to avail himself of his title against the prior conveyance or mortgage, any more than he would if the same were registered.” 188. Notice may be either actual or constructive, i. e., imputed by construction of Law.’ Actual notice, to constitute a binding notice, at least where it depends on oral communication only, must be given by a per- son interested in the property, and in the course of the treaty.* 189. As regards constructive notice, whatever is sufficient, or whatever for the purposes of justice is to be deemed sufficient, to put any person of ordinary prudence on inquiry, is constructive notice of everything to which that inquiry might have led.® And hence a purchaser who has notice of a tenancy is deemed to have notice 1 Cavander v. Bulteel, L. R. 9 Ch. Ap. 79. 2 St. ¢ 397; 2 Sp. 763. 3 2 Sp. 754, * 2 Sp. 753. ° 2 Sp. 755-760 ; Ogilvie v. Jeaffreson, 2 Gif. 353,378; Leigh ». Lloyd, 2 D. J. & S. 330; Broadbent ». Barlow, 3 D. F. & J. 570; Pilcher », Rawlins, L. R. 11 Eq. 58, 7 Ch. Ap. 259; Maxfield 2. Burton, L. R. 17 Eq. 15; Cavander v. Bulteel, L. R. 9 Ch. Ap. 79. CONSTRUCTIVE FRAUD. 97 of a lease, if any, and therefore is not entitled to any compensation on account of it. And, asa general rule, a purchaser or other person. has constructive notice of the contents of the instrument under which he claims, or under which the party with whom he contracts, as executor or trustee or appointee, derives his power. Under ordinary circumstances, a man cannot claim. under a deed or will, and yet repudiate a knowledge of its contents.’ But the mere registration of a con- veyance is not deemed constructive notice to subse- quent purchasers, as to collateral effect; so that the mere registration of a second mortgage will not pre- vent a prior mortgagee from tacking a third mortgage, when he had no actual notice of the existence of the second mortgage.? To constitute constructive notice, it is sufficient if it is brought home to the agent, attorney, or counsel, in the same transaction, or in one immedi- ately preceding ; unless there is a moral certainty that he would not have communicated the fact to the prin- cipal or client,* or he, colluding with the person who was bound to give notice, concealed the fact.° 1 James v. Lichfield, L. R. 9 Eq. 51. 2 St. 32 400; Pilcher v, Rawlins, L. R. 11 Eq. 53; 7 Ch. Ap. 259. 5 St. 2 401, 402; 2 Sp. 763. 4 St. 2408; 2 Sp. 700, 761; Spaight v. Cowne, 1 Hem. & Mil. 359; Atterbury v. Wallis, 8 D. M. & G. 454; Thompson »v. Cart- wright, 33 Beav. 178, 185; Rolland v. Hart, L. R. 6 Ch. Ap. 678; Maxfield v. Burton, L. R. 17 Eq. 15.* 5 Sharpe v. Foy, L. R. 4 Ch. Ap. 35. " * Astor », Wells, 4 Wheat. 466. 9 98 CONSTRUCTIVE FRAUD. And where the mortgagor has at different times employed the same solicitor in effecting different incumbrances upon the same estate, and the incum- brancers have employed the mortgagor’s solicitor in the several transactions, each of the puisne incum- brancers is affected with notice of the prior incum- brances.' But the circumstance of only one solicitor acting in a transaction does not necessarily constitute him the solicitor of both parties, so as to affect both parties with notice of the facts.’ 190. A purchaser of a legal estate with notice of an equi- table claim, will be protected, if he purchases from a prior bon@ fide purchaser without notice; for other- wise the latter would not enjoy the full benefit of his own unexceptionable title. And if a purchaser who had notice sells to another, and the latter had no notice and is a bond fide purchaser 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.’ 191. 10. Fraudu- 10. Purchases from executors of the per- with ceeeee, Sonal property of their testator, are ordinarily ning valid, notwithstanding it may be affected vee with some peculiar trust or equity in the hands of the executor; for the purchaser cannot be 1 2Sp. 761; Fisher, Mortg., 2d ed., par. 1107.* 2 Perry v. Holl, 2D. F. & J. 38. 9 St. 4 409, 410; 2 Sp. 764; Sugd. V. & P., 14th ed. 153; 2 Lead. Cas, Eq., 2d ed. 36, 87, et seq.* * 1 Perry on Trusts, ¢ 222. CONSTRUCTIVE FRAUD. 99 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 executor is converting the estate into money for an unlawful purpose, the purchase will be set aside.’ 192. 11. The object of the statute 27 Eliz. c. 4, 44 pranas being to give full protection to subsequent "nde the stat. 27 Eliz. purchasers against voluntary prior convey- {333'%, the case of ances, a prior conveyance is deemed void, as 9cas'a.” against a subsequent purchaser or mortgagee, {83)25¢"" whether with or without notice, and even }irchisers after proceedings to enforce such prior con- 7° veyance, if not on valuable consideration, although it may be bond fide and on good consideration, or although it may be expressed to be made for divers valuable considerations, 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 themselves, however, such conveyances are binding. And where a voluntary settlement has been made, subsequent judgment creditors of the settlor can- not acquire rights in derogation of it which the settlor would not have possessed. And as between two vol- untary conveyances, if the first is fraudulent, the second will prevail; but where each is bond fide, Equity will 1 St. @ 422, 423, 580,581; Elliot v. Merryman, 1 Lead. Cas. Eq,, 2d ed. 45, et seq.* “* Sacia v. Borthoud, 17 Barb. 15. 100 CONSTRUCTIVE FRAUD. not interfere.’ Nor will Equity interfere where the voluntary grantee has conveyed to a bond fide pur- chaser for valuable consideration, before the bond fide purchaser from the voluntary grantor acquired his title.” And Equity will not give its aid to a voluntary settlor to enable him to complete a contract for sale against a purchaser.2 193. The law that a man who has executed a voluntary settlement is enabled to sell the estate just as if he had done nothing, is highly unreasonable. And the Courts will now lay hold of any circumstances constituting a consideration moving from the grantee to the grantor to take a case out of the category of voluntary deeds.‘ 194. 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 purchaser who had notice of it, he takes sub- ject 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 ordi- nary voluntary conveyance. 195. A fair voluntary settlement in favor of a wife and 1 St. 4 425, 426, 433 ; 2 Sep. 288, 638 ; Ellison v. Ellison, 1 Lead. Cas. Kq., 2d ed. 199, et seg.; Kelson v. Kelson, 10 Hare, 386; Bar- ton v, Vanheythuysen, 11 Hare, 126; Lewis v. Rees, 3 K. & J. 132, 150, 151; Daking ». Whimper, 26 Beav. 568; Lloyd v. Attwood, 3D. & J. 614; Dolphin v. Aylward, L. R. 4 H. L. 486; Rosher v. Williams, L. R. 20 Eq. 210. 2 St. @ 434. 3 2 Sp. 289. * V.-C. Malins, in Rosher v. Williams, L. R. 20 Eq. 218. 5 2 Sp. 289; Tudor’s Char. Trusts, 2d ed. 329-339. CONSTRUCTIVE FRAUD. 101 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 settlement, whether it appear on the face of the settle- ment, or be otherwise made out. Therefore, if a per- son whose concurrence the parties deem essential, joins in a settlement, his concurrence will be deemed a valu- able consideration, although he did not substantially part with anything.’ 196. As to pre-nuptial settlements and post-nuptial settle- ments in pursuance of pre-nuptial articles, or on receipt of an additional portion, or on which the husband and wife, having interests, give up something, they are set- tlements for valuable consideration, and of course good against subsequent purchasers, or against prior volun- tary grantees, as the case may be.” 197. 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.? 198. A conveyance for payment of debts generally, to which no creditor is a party, and in which no particu- lar debt is expressed, is a fraudulent conveyance within the statute.* 199. 1 See 2 Sp. 288, 290; Sugd. Concise View, 568, 569; Atkinson v. Smith, 3 D. & J. 186; Bayspoole v. Collins, L. R. 6 Ch. Ap. 228. 2 Smith’s Compendium, 5th ed.,, par. 2395; In re Foster and Lister, L. R. 6 Ch. D. 87. 89 Gn 901_2 498m 341. 102 CONSTRUCTIVE FRAUD. 12. In every transaction in which a per- inthewe son obtains by voluntary donation a benefit f volun- a : tary gifts, from another, it is necessary, if the transac- fnedonors tion be called in question, that he should be ‘emselv°s- able to establish that the person giving him the benefit did so voluntarily and deliberately, and with full knowledge of what he was doing; if this is not established, the transaction will be set aside. And where the circumstances are such that the ae orre- donor ought to be advised to reserve a power wecatie®: of revocation, it is the duty of the solicitor to the donor, or a solicitor acting for both parties, so to advise ; and in such a case, the want of such a power will in general, in the absence of such advice, be fatal to the deed.’ It is not necessary to show that the usual clauses were explained ; but any unusual clauses must be shown to have been brought to the donor’s notice, explained, and understood.* 200. aig lan 13. The donee of a power must. exercise lent ap- it bond fide for the end designed ; otherwise pointments. . , . it is considered as a fraud upon the power.‘ ' Huguenin v. Baseley, 2 Lead. Cas. Eq., 2d ed. 462, et seq. ; Cooke v. Lamotte, 15 Beav. 241; Anderson v. Elsworth, 3 Gif. 154; Sharp v. Leach, 31 Beav. 491; Toker v. Toker, 31 Beav. 629; Phillipson v. Kerry, 32 Beav. 628; Lyon v. Home, L. R. 6 Eq. 655.* ® Coutts v. Acworth, L. R. 8 Eq. 558, 567; Wollaston v. Tribe, L. R. 9 Eq. 44; Phillips v. Mullings, L. R. 7 Ch. Ap. 244, 247, 248; Hall v. Hall, L. R. 14 Eq. 365. 3° Phillips v. Mullings, L. R. 7 Ch. Ap. 244, 248. ‘ Topham v. Duke of Portland, 1 D. J. & 8. 517. * Bigelow on Fraud, 197; St. Eq. Jur. 3 706b. CONSTRUCTIVE FRAUD. 103 Hence, where a person has a power of ap- ; ets a . Appoint- pointing to all or any of his children, and aren ane he exercises it in favor of one child, merely eo 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 exercised for 4 oint. the benefit of others, makes an appointment Mi". 4 in payment of a debt due to the appointee benefit st, cured to the by the appointor, or upon the terms or for 2Ppointer, the purpose of securing some benefit to him- °°" self or some others not objects of the power, such an appointment is fraudulent and wili be set aside in Equity: as where the donee of a power appoints a fund to one of the objects of a power, under an under- standing that the latter is to lend the fund to the for- mer, 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. 201. Upon the same principle, if a parent ap- points an immediate portion to an infant nL ea who is not in want of it, or appoints to a meee child, whether infant or adult, who is seriously 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 appoint- ment is void as a fraud upon the power. 202. Where a person exercises a general power Rights of of appointment in favor of a stranger, it {eines f , . 1 will be deemed a fraud upon his creditors, fppointee. 104 CONSTRUCTIVE FRAUD. who will in Equity become entitled to the money in the hands of the appointee.’ 203. ; 14. If a man has induced another to enter an end id into a contract with him, by representing an formed the actual state of things as a security for the fim for enjoyment of an interest which he has him- contrac: self created for valuable consideration, 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.’ 204. 15. Rescina- 15. A person who has entered into a pur- jngsderto chase contract, cannot rescind such contract, b s ; . poweit PY? in order to turn to his own benefit a flaw in oe 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.2 205. ' Smith’s Compendium of the Law of Property, 5th ed., par. 2136-8; Aleyn v. Belchier, 1 Lead. Cas. Eq., 2d ed. 304, et seg. ; Re Marsden’s Trust, 4 Drew. 594. 2 Piggott v. Stratton, Johns. 841; 1 D. F. & J. 33.* 5 Murrell v. Goodyear, 2 Gif. 51; 1D. F. & J. 432. * St. Eq. Jur. 3 956. See also Phillips v. Boardman, 4 Allen, 147; Parker v. Nightingale, 6 Allen, 341. TITLE II OF Executive Equity. LEGACIES, 107 CHAPTER L OF LEGACIES AND PORTIONS. No action lies, at the Common Law, to recover lega- cies, unless the executor has assented to them ;' because all the chattels vest in him, and are liable to gurisaic- 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.’ But after the executor has assented to a specific legacy of chattels, the property vests immediately in the legatee, who may maintain an action at law for the re- covery thereof. A similar rule was attempted to be applied at Law to pecuniary legacies, but the applica- tion was doubted and disapproved of,? because Courts of Law could not impose on the parties recovering these legacies such terms as might be required; so that, for example, a husband might recover a legacy given to his wife, without making any provision for her or her family. And where there is an actual trust, ex- press, 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 1 St. 2591. *% See 2 Bl. Com. 512. * St. 3591. * St. 2 592. 108 LEGACIES. an exclusive jurisdiction. And even where the ex- ecutor has assented to the legacy, and there is no actual trust, yet they have jurisdiction, though it may be merely a concurrent jurisdiction; because the executor is considered as a kind of trustee for the legatees, which forms a universal ground of equitable inter- ference; and because the interposition of a Court of Equity may be required to obtain an account or dis- tribution of assets, or some other relief or assistance which the other Courts are or were incompetent to afford.’ 206. By the stat. 20 and 21 Vict. c. 77, s. 23, no suit for legacies or the distribution of residues shall be enter- tained by the Court of Probate, or by any Court or person whose jurisdiction as to matters and causes tes- 1 See St. 2 593-602.* * In some of the Courts in this country an action at law to re- cover a pecuniary legacy has been maintained after assent by the executor; in others it is allowed by statute. St. Eq. Jur. ¢ 592, note, and cases there cited. At Law, the surplus of personal estate goes to the executor after payment of all debts and legacies. In Equity, he is trustee of the surplus for benefit of next of kin, if from the nature and circumstances of the will a presumption arises that the testator did not intend the executor should take the surplus to his own use. See St. Eq. Jur. 2 596 and note. As to what cir- cumstances will be sufficient to turn the legal estate of the execu- tor into a trust, see Jeremy, Eq. Jur., B. 1, ch. 1, @ 2, pp. 122 to 135; 2 Roper on Legacies by White, ch. 24, pp. 579, 590-640; Id. ch. 6, @ 2, pp. 837, 338 ; a matter of presumption substantially. See also 1 Perry on Trusts, @ 94. In America, the surplus is by law universally distributable among the next of kin in the absence of all contrary expressions of intention by the testator. St. Eq. Jur. @ 1208 and note, LEGACIES, 109 tamentary is thereby abolished. But by the stat. 9 and 10 Vict. c. 95, s. 65, and 13 and 14 Vict.c. 61,s. 1, a legacy not involving a trust, and not exceeding £50, may be recovered in a County Court. 207. In cases of legacies payable at a future , | day, whether contingent or otherwise, Courts able at Be 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.’ 208. And where a specific legacy is given to eae one for life, and after his death to another, legacy to ‘ hs . one for life, there the legatee in remainder can obtain a remainder to another. decree for security from the tenant for life, for the due delivery over of the legacy to the remain- der-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 prop- erty 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.’ 209. ‘Generally speaking, when a future period | ua. of distribution among children is contem- dren to be plated by the will or other instrument, all who are born during the life of the parent, or before the period of distribution, are entitled toa share.’ 210. 1 St. 3 603. 2 St. 2 604. 8 2 Sp. 418. See Viner v. Francis, Tud. Lead. Cas. Real Prop., 2d ed. 702. 110 LEGACIES. sseuneptie If a legacy is given for a particular pur- a purpose — pose, the fact that it cannot be effected will Do. be ca, not prevent the legacy from vesting in the donee.: 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 representatives.” 211. Wistiea A legacy by a parent to a child is pre- 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 so assumed, the same presumption will arise as in the case of a legacy or gift by a parent. There are many doctrines which are applicable to portions, that is, sums of money secured or given by a parent or person standing in loco parentis to a child, which would not be applied to a gift as between strangers. 212. iat If portions or legacies charged on land are a made payable on an event personal to the not tobe party to be benefited, and he dies before that event happen, the portion or legacy is not to 1 2 Sp. 466, note (c). 2 2 Sp. 462. 3 2 Sp. 394.* * Whether the donor has for the purpose assumed the office of parent so as to invest his gift with the character of a portion, may be proved by extrinsic evidence, such as general conduct towards the children, or by intrinsic evidence, as from the nature and terms of gift. See 2 Spence. Eq. Jur. 394, LEGACIES, 111 be raised out of the land. But it is otherwise if the payment is postponed 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.’ 213. Where a portion is secured, and no particular 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.” 214. If there is a limitation to the parent for iste life, with a term to raise portions at twenty- ain one or marriage, and the interests are vested, the portions must be raised forthwith by sale or mort- gage of the reversionary term, unless there is some- thing to indicate an intention that the portions should not be raised until the term falls into possession. 215. - When a legacy is given by a father or a person. standing in loco parentis, as a provision for an in- fant, and no maintenance or interest is given, though the legacy be payable at a future day, the infant has an immediate right to interest.* 215 a. When real estate is so settled as that it must on the death of a parent go to his eldest dion Of peo son, and provision is made, not by a stranger “younger or relation not standing in loco parentis, but , by that parent or by a person standing in loco parentis, whether by pre-nuptial settlement or by will, for the 1 2 Sp. 396. 2 2 Sp. 398. 2 2 Sp. 405. «2 Sp. 409; 2 Rop. Leg, 4th ed. 1257, 1270, 1348. 112 LEGACIES. 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 provided for by the family estate, even though a younger child. This latitude of construction is not extended to a legal limitation in a deed. In ordinary cases, the period of distribution, and not the period of vesting, is the time for ascertaining who is to be ex- eluded.’ 216. In deciding on the validity and interpre- Construc- . ee tation of purely personal legacies, Courts of Equity in general follow the rules of the Civil Law, as they were recognized and acted on in the . Ecclesiastical Courts; but as to the validity and inter- pretation of legacies charged on land, they generally follow the rules of the Common Law.? 217. With these few remarks we must dismiss the sub- ject of Legacies and Portions, as a separate topic, since it is so extensive, that the doctrines of Equity respect- Jing it could not be even succinctly stated without far transgressing the limits allotted to the present Manual. 218, 5, , a 1 2 Sp. 411-416; In re Bailey’s Settlement, L. R. 9 Eq. 491. 2 St. 2 602, 608. DONATIONES MORTIS CAUSA. 118 CHAPTER ITI. OF DONATIONES MORTIS CAUSA. Courts of Equity maintain a concurrent. 5, ,isai¢ jurisdiction in all cases of this kind, where “™ - the assistance afforded at Law was not adequate or complete.’ 219. A donatio mortis causd is a gift of per- sonal property made by one who appre- hends 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 property itself, or of the means of obtaining possession of the same, or of the writings by which the ownership thereof was created and conditioned to take effect absolutely in the event of his not recovering from his existing disorder, and not revoking the gift before his death.2 Thus, nego- tiable notes, promissory notes, payable to order, though not indorsed, bills of exchange, wyat may though not indorsed, bank notes, bankers’ p&{hese, deposit notes, checks drawn by a third per- ovations Definition. * St. 2 606; Ward v. Turner, 1 Lead. Cas. Eq., 2d ed. 721 et seq. 2 St. 2 606, 607 a-607c; 1 Sp. 196; 2 Sp. 912; Power ». Helli- car, 26 Beav. 261. 10 114 DONATIONES MORTIS CAUSA. son, policies of insurance, bonds, and mortgages, may be the subject of such donations ; and goods in a ware- house may be given in like manner by a delivery of the key.! But the delivery of the donor’s check, which was not presented before his death, was held not to be a good donatio mortis causa,’ unless paid away for valuable consideration before his death.’ And railway stock cannot be the subject of a donatio mortis causd.* 220. Mixelenar. A donation of this kind partakes partly acter of | of the characteristics of a gift of inter vivos, reer and partly of those of a legacy. It differs 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 Probate. 2. It requires no assent or other act on the part of the executor or administra- tor to perfevt the title of the donee. It differs from a 18t. 2 607a; 1 Sp. 196; 2Sp. 657; Bouts v. Ellis, 17 Beav. 121; Veal v. Veal, 27 Beav. 303; Rankin v. Weguelin, 27 Beav. 309; Witt v. Amis, 1 Best & Sm. 109; Amis v. Witt, 33 Beav. 619; Moore v. Moore, L. R. 18 Eq. 474.* 2 Hewitt v. Kaye, L. R. 6 Eq. 198; Bromley v. Brunton, L. R. 6 Eq. 275; In re Beak’s Estate, Beak v. Beak, L. R. 13 Eq. 489. ® Rolls v, Pearce, L. R. 5 Ch. D. 730. “ Moore v. Moore, L. R. 18 Eq. 474. * There can be no valid donation mortis caus@: (1). unless the gift be with a view to the donor’s death; (2) unless it be condi- tioned to take effect only on the death. of the donoy, by his exist- ing disorder, or in his existing illness; and (3) unless there be an actual delivery of the subject of the donation. See Huntington »v. Gilmore, 14 Barb. 243; Hitch v. Davis, 3 Md..Ch. Dev. 206. DONATIONES MORTIS CAUSA. 115 gift inter vivos in certain respects in which it resembles a legacy: 1. It is revocable during the donor’s life- time. 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.’ 221. Words of absolute gift, if accompanied by joi expressions showing that the intention was words that the property should be enjoyed only in ‘ the event of the death of the donor, will be sufficient to constitute a donatio mortis causé.? 222. Evidence of the clearest and most un- equivocal character is requisite to support a donatio mortis causa.’ 228. Evidence. 1 St. 2 606a; 1 Sp. 196. 2 2 Sp. 912. 3 Cosnahan »v. Grice, 15 Moo. P. C. 215. 116 EXPRESS PRIVATE TRUSTS. CHAPTER III. OF EXPRESS PRIVATE TRUSTS EVIDENCED BY SOME , WRITTEN DOCUMENT. LDefinition 1. A TRUST, when used in the sense of an ofatrust. equitable interest, is not now, as it was at one time, considered a chose in action ; it is a beneficial interest in, or a beneficial ownership of, real or per- sonal property, unattended with the possessory and legal ownership thereof.' 224. IL Extent II. Trusts arising under wills are exclu- tinover” sively within the jurisdiction of Courts of year Equity.’ And indeed this is the case with most matters of trust. 225, 2 III. Trusts may be divided into three III. Divi- e ‘ A sion of 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. 226. 1 See Smith’s Executory Interests, annexed to Fearne, 3 40-6, 50; 2 Sp. 875.* 2 St. 2 1058. 3 St. 2 962. * See 1 Perry on Trusts. EXPRESS PRIVATE TRUSTS. 117 IV. An express trust is a trust which is yy pesnic clearly expressed by the author thereof, or fonoe” may fairly be collected from a written docu- “"** ment. 227. V. The Statute of Frauds requires all declarations of trust of freehold, copyhold, or distarstiga leasehold lands, tenements, or hereditaments, woe to be evidenced by some writing signed by the party declaring the same. But declarations of trust of money, even though secured on real estate, or of chat- tels personal, need not be so evidenced.’ 228. A declaration of trust, if bond fide, is valid, though at a distance of time. And if the document refers to any other document, which shows what was meant by the parties, that is sufficient.” And if the terms of the trust do not sufficiently appear upon the face of the instrument, evidence may be received to show the posi- tion of the party signing, and the circumstances by which he knew himself to be surrounded, and the credibility of the instrument.’ 229. It is not necessary that there should be any actual transfer of property to render a declaration of trust effectual. Ifa person declares himself to be a trustee 1 St. 2 972; 1 Sp. 497, 498; 2 Sp.19, 20, 897; Peckham ». Taylor, 31 Beav. 250.* 2 2 Sp. 21, 22. 8 2 Sp. 22.4 * But a trust of personalty by parol must be clearly established or Equity will not enforce it. See Turner v. Nye, 7 Allen, 176; 1 Perry on Trusts, 2 86. + 1 Perry on Trusts, 3 147, and cases there cited. 118 EXPRESS PRIVATE TRUSTS. for another of money or personal property to be re- covered, whether in writing or by acts or declarations of a decisive and definite nature sufficiently proved, the transaction will be binding against him and his representatives.! And if a person, by writing or by word, directs his debtor to hold the money due in trust for a third person, and such direction is com- municated to the debtor and the donee, an effectual trust is created in favor of the donee.” And if a per- son signs and hands over a memorandum of gift of a bond, without handing over the bond, that has been held to be a good declaration of trust. But a mere promise to give, without valuable consideration, or a defective conveyance, gift, or, assignment, without valuable consideration, 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.‘ In order to give validity to a declaration of trust, it is necessary that the person declaring the trust should have parted with his interest in the property, and put it out of his power, at least 1 2 Sp. 897; Dipple v. Corles, 11 Hare, 183; Peckham ». Tay- lor, 31 Beav. 250; Grant v. Grant, 34 Beav. 623.* 2 2Sp. 53, 898; Patterson v. Murphy, 11 Hare, 88; Vander- berg v. Palmer, 4 K. & J. 204.¢ 5 Morgan wv. Malleson, L. R. 10 Eq. 475. ‘ 2 Sp. 57, 887; Dipple v. Corles, 11 Hare 183; Warringer ». Rogers, L, R. 16 Eq. 340;. Richards». .Delbridge, L..R. 18. Eq. 11; Moore v. Moore, L. R. 18 Eq. 474.4 * 1 Perry on Trusts, 3 86, 96, 97. + Ib,, 3 104 and notes. t Ib, 3 97. EXPRESS PRIVATE TRUSTS. 119 in intention. So that a delivery of a box angé contain- ing a deed of gift, and of the key of which the party delivering it retains possession, will not amount to a declaration of trust of the contents.! And it has been held that a memorandum expressive of “an intention to leave” ora “determination to appropriate” a fund to a person, and a declaration, during a last illness, of a wish that it should be given to such person, does not amount to a declaration of trust, but is a mere inopera- tive indication of a testamentary intent not carried into effect.? 230. VI. Where uses are expressly and clearly yy py what limited, which the Statute of Uses will not 0s a, execute, that is, convert into legal estates, °c". trusts are thereby created; for modern uses, unexe- cuted 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. 1 Warringer v. Rogers, L. R. 16 Eq. 340. 2 Re Glover, 2 Johns. & H. 186.* * So if the paper is in the nature of a testamentary disposition which requires to be proved in a Court of Probate, hut is so im- perfectly executed that it cannot be proved as a last will and testament, no trust will be created. See 1 Perry on Trusts, 3 97 and cases cited. 120 EXPRESS PRIVATE TRUSTS. Nor does the Statute execute uses or trusts where it is requisite that the trustee should continue to hold the estate in order to perform them. Nor does the Statute extend to uses or trusts of chattels real or personal ; the words of the Statute being, “when any person is seized to the use,” etc., and the word “seized” being inapplicable to personal estate. And trusts of copy- holds were excluded from the operation of the Statute, because otherwise the rights of Lords would have been infringed’ 231. No particular form of expression is necessary to the creation of a trust.? And a trust may be created, although there may be an absence of any expressions which in terms import confidence.’ 2382. 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 recommendation, con- fidence, hope, wish, and desire, 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 cir- cumstances of thé will, the subject-matter, the previous conduct of the testator, the situation of the parties, and the probable intent, the expressions appear to have 1 See St. 2 970; 1 Sp. 466, 490; Tyrrell’s Case, Tud. Lead Cas. Real Prop., 2d ed. 274. 2 1 Sp. 498; 2 Sp. 20.* 8 Page v. Cox, 10 Hare, 169. * 1 Perry on Trusts, 3 82. EXPRESS PRIVATE TRUSTS. 121 been intended to be imperative; and expressions show- ing a desire that an object should be accomplished, will be deemed imperative, unless there are plain ex- press words, or there is a necessary implication that the testator did not mean to exclude a discretion to ac- complish 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 ownership, as where it is given without any fetter in a former part of the will; or if the motive as- signed 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 be- queaths 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 obligations in the case of a mother; no valid trust will be created by words of this character."| And any words by which ’ St. 2 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. & G. 546; 2 Rop. Leg. 1446; Thorp v. Owen, 2 Hare, 607; Macnab v. Whitbread, 17 Beav. 299; Reeves v. Baker, 18 Beav. 372; 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; 11 122 EXPRESS PRIVATE TRUSTS. 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 certain. 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 which the first taker is to select, or which leaves it doubtful what interest the object or class of objects is to take, will prevent the object from being certain within the mean- ing of the rule.’ But where in terms or in effect a gift is made to a parent for or towards the support of himself and children, the mere fact that the parent may apply part of the property for his own support, 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 2 Bibby v. Thompson (No. 1), 32 Beav. 646; Hart v. Tribe (No. 4), 32 Beav. 279; 1 D. J. & 8. 418; Hood v. Oglander, 34 Beav. 513 ; Barrs v. Fewkes, 2 Hem. & Mil. 60; Eaton v. Watts, L. R. 4 Eq. 151; McCormick v. Grogan, L. R. 4 H. L. 82; Lambe v. Eames, L. R. 10 Eq. 267; Mackett v. Mackett, L. R. 14 Eq. 49; Curnick v. Tucker, L. R. 17 Eq. 320; Le Marchant v. Le Marchant, 18 Eq. 414; Stead v. Mellor, L. R. 5 Ch. D. 225.* 1 St. 2 1070, note; 2 Sp. 69, 72, 78; Green 7. Marsden, 1 Drew. 646. * For discussion of the subject of trusts created by the use of words of hope, confidence, wish, desire, etc., “precatory words,” see 1 Perry on Trusts, ¢ 112, 113, where the subject is elaborately treated in the text and notes, with full references to English and American cases, } 1 Perry on Trusts, 3 113. EXPRESS PRIVATE TRUSTS. 123 which the Court can remove by ascertaining, if neces- sary, what should be devoted to the children.’ Again, the family of A will often be a sufficient designation of the objects; for the context may render it definite, and show that it means the heir-at-law of A, or, in other cases, the children of A, or, in others, the bro- thers 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 in- cluded under the word “family.” Although the term “Yelations”’ is still more indefinite, the Court has exe- cuted a trust in favor of relations, by giving the prop- erty, when personal, to the next of kin, according to the Statutes of Distribution, but per capita.’ But where a testator devised his leasehold estates to his brother A forever, “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.* 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 grandchildren ;” these words did not create a trust, because the property would be uncertain ; for it might be just what she chose to leave.* 233. VII. A valid trust may be created by yyy pow a words expressive of confidence that a devisee jeq\semay or legatee will carry out the testator’s wishes, j%prexed” verbally communicated to him before the will “""*'"** 1 2 Sp. 463-5. 2 St. @ 1071; 2 Sp. 73-6. 2St. 31072; 2Sp.75. * St. #1073. 124 EXPRESS PRIVATE TRUSTS. was made.' And if a devisee or legatee expressly or impliedly promises a testator that he will give effect to the testator’s wishes for the benefit of some other per- son, or for some object, even though they be only verbally expressed after the will was executed, the devise or bequest is subject to a trust to carry out those wishes, where they are such as, if expressed in the will, would be enforced.? 234. Scene It sometimes happens that although no excluded = = valid trust is created, yet it is clear that a from taking bencficially, g ‘ 2, = penvficr’y; trust was intended; and in such instances inenged,, the person to whom the gift is made is as ae 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 judicial notice of them.’ 235. VIEL trust VIII. Express trusts are either executed executed or executory, in the sense of directory. A tory. 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 either by a stipulation or by a direction, in express terms or by necessary implication, to make a settlement or assur- ance to uses or upon trusts which are indicated in, but 1 Irvine », Sullivan, L. R. 8 Eq. 673. ° McCormick v. Grogan, L. R. 4 H. L. 82; Norris v, Frazer, L. R. 15 Eq. 318. 3 St. 2.979a,b; Briggs vr. Penny, 3 Mac. & G. 546; Bernard ». Minshull, Johns. 276. e EXPRESS PRIVATE TRUSTS. 125 do not appear to be finally declared by, the instrument containing such stipulation or direction.’ 236. In the case of trusts executed, a Court of Equity puts the same construction on technical words as that which is put by a Court of Law on limitations of legal estates. But in the case of trusts executory, Equity considers the apparent intent to be collected from the whole instrument, or, where the language is doubtful, the presumable intent, rather than the strict import of technical words.” Thus, where the legal estate is limited to one for life, remainder 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 ex- ecutory 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 intended to be used in their technical sense, the mere reference to a further instrument does not render the trust executory, and therefore the limi- tations, as regards the rule in Shelley’s Case, receive the same construction as similar words used in limiting 1 Smith’s Executory Interests annexed to Fearne, ¢ 489; 2 Sp. 128, 129, 131-3; Lord Glenorchy ». Bosville, 1 Lead. Cas. Eq., Qd ed. 1, et seg.; Turner v. Sargent, 17 Beav. 515; Doncaster v. Doneaster, 3 K. & J. 26; Fullerton v. Martin, 1 Drew. & Sm. 31.* 2 See 2 Sp. 131-5; Sackville-West ». Visc. Holmesdale, L. R. 4 H. L. 548. * Saunders v. Edwards, 2 Jones’s Eq. 134. 126 EXPRESS PRIVATE TRUSTS. legal estates. But if marriage articles express that an estate is to be settled on the husband for life, with re- mainder to the heirs of his body, there the inchoate nature of the instrument, combined with the allusion to a further instrument, renders the trust executory ; and as the issue in this case are purchasers for valuable consideration, so Equity will construe the articles as giving an estate for life only to the husband, with a remainder in tail to the children.’ 237. IX. Trusts in real property which are governed’ exclusively cognizable in Equity, are gener- by same rulesasle- ally governed by the same rules as legal es- sanesiates. tates.? But, 1. The construction put upon trusts executory, as we have before seen, differs, in some respects, from that which prevails in regard to legal estates and trusts executed. 2. Be- fore the late Dower Act, Courts 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.’ 3. An equita- 1 2 Sp. 136.* 2 1 Sp. 492, 499, 500, 502, 857, 876, 878.+ 31 Sp. 501. Exceptions. * 1 Perry on Trusts, % 358, 359. The distinctions between ex- ecutory and executed trusts, especially with regard to the applica- tion of the rule in Shelley’s case, are generally recognized in the United States. See cases collected in note, Adams’s Eq. [40.] 7 St. Eq. Jur. 3974. EXPRESS PRIVATE TRUSTS. 127 ble estate being incapable 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 agent lawfully au- thorized, was held sufficient to transfer such equitable estates ; except that a fine or recovery was required, where the same would have been necessary if the estate had been a legal estate. In practice, however, trust estates have been usually conveyed in the same manner as legal estates.’ 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. 238. X. Long terms for years are often created X. Trusts of for securing the payment of money lent on mortgage and for other purposes. Prior to the statute 8 and 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 trus- tee after they were performed; and at Law the term continued to be a term in gross, as distinct and sepa- rate from the inheritance as it was at first. But in Equity the term might become attendant on the inheri- 1 Bee St. 3 974, 974a, and notes, and 3 975; 1 Sp. 497, 500, 506, 877; and as to executory trusts, see supra, par. 30, 236, 237. 2-1 Sp. 506.* 3 1 Sp. 500, 505. * And where a trust is created for the benefit of a party, it is not only alienable by him by his own proper act and conveyance, but it is liable to be disposed of by operation of law in invitum. St. Eq. Jur. 3 9748. See also Ames v. Clark, 106 Mass. 573. 128 EXPRESS PRIVATE TRUSTS. tance by express declaration, so as to follow the descent to the heir, and all the alienations made of the inheri- tance, 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 satisfied term might become attendant on the inheritance with the same effect by mere implication ; for, as Equity always considers who has the right to the land in conscience, if the term was not subject to any ulterior limitation to which the inheritance was not subject, and the owner of the inheritance was entitled to the whole trust of the term, it was attendant on the inheritance by im- plication. 239 , In consequence of satisfied terms being deemed terms in gross at Law, but capable of being rendered com- pletely 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 consideration, mortgagee, lessee, or other in- cumbrancer, took a conveyance, lease, or assignment, defective by reason of some estate, charge, or incum- brance, subsequent to the creation of a long-satisfied term for years and prior to his own conveyance, lease, or assign- ment, 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 in- cumbranee, by taking an assignment of the satisfied ¢ EXPRESS PRIVATE TRUSTS. 129 term to a trustee for himself, or by taking an assign- ment thereof to himself where he took the conveyance, .lease, or assignment of the estate or interest, to be pro- tected 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.’ 240. By the stat. 8 and 9 Vict. c. 112, s. 1, every satis- fied term which was attendant on the 31st of Decem- ber, 1845, was on that day to cease, except that, if at- tendant by express declaration, it was to afford the same protection as it would have afforded if it had continued to subsist, but had not been assigned or dealt with after that day. And bys. 2, every term which, after the 31st of December, 1845, should become satis- fied and attendant, was to cease immediately upon the same becoming so attendant. 241. 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 gross.? 242. 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 man- ner? 243. XI. A person in whose favor a trust has x7 prusts been created may affirm it, and enforce the Srtied, performance thereof, although it was created frisp,/™” without his knowledge, if at least it is not "viet 1 See St. 2 998-1002, and notes; Sugd. Concise View, 477. 2 St. 2 1002. / 31 Sp. 518. 130 EXPRESS PRIVATE TRUSTS. revoked by the author of the trust before it is so affirmed! 244, Peete XII. Equity will enforce a trust where trusts will it is executed, or where it is raised by will, even though it is a mere voluntary trust; but it will not enforce an executory trust raised by a covenant or agreement, unless it is supported by a valuable consideration? 245. xuL Exe III. Marriage articles will be specific- Siursiags ally executed on the application of any per- articles. gon within the scope of the consideration of the marriage, or of those claiming under any such per- son. But they will not be specifically executed on the application of persons who are volunteers, even of a wife or child by a subsequent marriage; although where the proceeding is 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 thents in toto, or not at all.’ 246. Lis Hee XIV. Putting the bankrupt and insolvent siznments laws out of the case, a person is at liberty ofereditors. to assign all his property for the benefit of his creditors, though it may be for the purpose of de- 1 St. ¢ 972. ? See cases referred to, St. 3 793, 793a; 2 Sp. 52, 57, n. (e), 129, 255; Ellison v. Ellison, 1 Lead. Cas. Eq., 2d ed. 199, et seg. And , , as to the distinction between executory and executed, see supra, par. 236, 237. 3 St. ¢ 986, 987; 2 Sp. 287. EXPRESS PRIVATE TRUSTS. 131 feating 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 among all his creditors, is only performing a moral duty. But such an assignment must be free from fraud and misrepresentation.’ 247. Preferences and priorities of particular creditors are ordinarily valid, in general assignments made by debt- ors, in discharge of their debts, except under the laws of bankruptcy and insolvency.’ But a debtor cannot vest his property in one of his creditors for the pur- pose of hindering and delaying his other creditors, and compelling them to come to terms; for such a deed is fraudulent and void.’ 248. Assignees under general assignments 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.* 249. In order to entitle the creditors named in a general assignment for the benefit of creditors to take under it, it is not necessary 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 12 Sp. 350, 352; Worseley ». De Mattos, Tudor’s Lead. Cas. Merc. Law, 488; Harman v. Fishar, Id. 455.* 2 St. 2 1036; 2 Sp. 350-2. 3 Smith v. Hurst, 10 Hare, 30. * St. 2 1038. * McNeal v. Glenn, 4 Md. 87. 132 EXPRESS PRIVATE TRUSTS. 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 which may render it not for their benefit, their assent will be presumed till the contrary appears.’ Until, however, the creditors have assented to the trust, and given notice thereof to the assignee, 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.’ ‘250. Where creditors have acted under a deed of compo- sition, and treated it as valid, a Court of Equity 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.* 251. Where there is an assignment to two trustees, and one assents and the other dissents, the property passes to the assenting trustee. 252. pores XV. In those cases where a consignment cabieness of Or remittance is made, with orders to psy a consign- mentor over the proceeds to a third person, the ap- remittance. propriation is not absolute, but revocable at 1 St. 3 13836.a. See Biron v. Mount, 24 Beav. 642.* 2 St. 2 10386b; Steele ». Murphy, 3 Moo. P. C. 445. 3 2 Sp. 354, “2 Sp. 351+ * ‘New England Bank v. Lewis, 8 Pick. 118; 2 Perry on Trusts, @ 593. + The question of general assignments for the benefit of creditors is becoming of less importance than formerly, in many of the American States, by reason of statutory provisions controlling such disposition. St. Eq. Jur. 1037 a. } St. Eq. Jur. 3-1037, note. EXPRESS PRIVATE TRUSTS. 133 any time before the third person has assented thereto, and notice of the same has been given to the manda- tory; 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 third 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.’ 253. ‘Where a person executes and delivers a . ai Revocahle- deed of conveyance of equitable property to hess ofa . conveyance a volunteer, or where the legal estate is of equitable ‘ ayy. @ . property or transferred and a trust of it is declared in adeclara- oe tion of trust favor of a volunteer, and there is nothing in favor of upon the face of the transaction or from contemporaneous evidence to show that it was intended to be revocable, or that a power of revocation ought to have been inserted, it cannot be revoked or avoided in any way. And even if the donor should procure a retransfer of stock by the trustees, and where it is in writing, should 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 expressed 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 substitution. And stock not being within the stat. 27 Eliz. c. 4, a purchaser of it from 1 St. 4 1045, 1046. 134 EXPRESS PRIVATE TRUSTS. the donor cannot avoid the voluntary settlement or gift! 254. The keeping in the donor’s possession a deed so ex- ecuted 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 a Court of Equity to revest the estate; and it is no ground for such interference that the act was foolishly or inconsiderately done.’ 255. XVI Efect &WJI. Where a will contains a direction of adiree- oy power to raise money out of the rents and tion or power to ., profits of an estate to pay debts or portions, raise money ft debts ete., and the money must be raised and paid oe sathioud delay, Courts of Equity have so construed those words as to give a power to raise by sale or mortgage, unless restrained by other words.’ 256. xvit opi. 9 -& VII. Prior to the enactments which will Sitchaser De presently mentioned, where real property eetentios was devised to be sold for, or was charged of the pur- chase-—-s With, the payment of definite and ascertained General sums only, and such payment was to take ee place at the time when the required amount was to be raised, the purchaser of such property was bound. to see that the purchase-money was applied in the fulfilment of the trust, unless expressly exempted by a provision by the author of the trust. But where the property sold constituted the natural and ae 1 2 Sp. 882, 883, see supra, 193,194. 2 2 Sp. 885. 3 St. 2 1064, 1064 a; 2 Sp. 316. EXPRESS PRIVATE TRUSTS. 155 fund for the payment of debts generally, or was ex- pressly charged with, or conveyed or devised for, the _ payment of debts generally, and, therefore, in order to ascertain the sums to the payment of which the prop- erty was liable, it would be necessary for the purchaser to institute proceedings in Equity, or where the pur- chaser, if bound to see to the application of the money, would be involved in a trust of long continuance; then the purchaser, unless he had notice that there were no debts, or notice of fraud, was not bound to see to the application of the purchase-money.’ 257. In illustration of these rules, it may be gyecine observed that, as the personal estate, whether fyinisia illustration consisting of chattels personal or of chattels *j2°a°y° real, is liable at the Common Law, and con- {heey stitutes the natural and primary fund for the °"s*t™ payment of the debts of the testator generally, the pur- chaser of the whole or of any part of it, without notice that there were no debts, or that the sale was not made for payment of debts, was not bound to see that the purchase-money was applied by the executors in the discharge of the debts,’ 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 purchaser, provided he had no reason to suspect any fraudulent or unauthorized purpose; for, 1 See St. 2 1126, 1127, 1128, 1130-4; Elliot ». Merryman, 1 Lead. Cas. Eq., 2d ed. 45, et seq. 2 St. 2 1126, 1128; 2 Sp. 372, 377. 136 EXPRESS PRIVATE TRUSTS. otherwise, before a person could become a purchaser of personal estate specifically bequeathed, it would be in- dispensable for him to come into a Court of Equity to have an 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. 258. The same rule, for the same reason, applied to real estate devised for or charged with the payment of debts generally;’ even though the trust was only to sell, or was a charge for, so much as the personal estate was deficient to pay the debts, and even though a spe- cific part of the real estate was devised for a particular purpose or trust, if the whole real estate was charged with the payment of debts generally 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.’ 259. 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 ascer- tained, and the purchaser must therefore see that the money is duly applied. But where the devise was for payment of debts generally, and also for the payment of legacies or annuities, the purchaser was not bound to see to the application of the purchase-money, be- cause, to hold him liable to see the legacies or annui- ties paid, would in fact have involved him in the ne- 1 St. 21129; 2 Sp. 375-7. 2 St. 21130; 2 Sp. 380, 382. 9 St. 21131; 2 Sp. 382. EXPRESS PRIVATE TRUSTS. 1387 cessity of taking an account of all the debts and assets. 260. And the purchaser was not bound to see to the ap- plication of the purchase-money, where the specific ob- jects of the trust were not pointed out.’ 261. 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 lia- ble? 262. In determining as to the liability of the purchaser, the Court looked to the deed or will alone, and not to the circumstances of the testator or to subsequent events; so that where a testator created a trust or charge for payment of debts generally and legacies, and there were no debts at the death of the testator, or the debts were paid after the death of the testator, and the legacies only were leftas a charge, that circumstance alone did not prevent the application of the rule.* 263. Where the time appointed by the devise for a sale of real estate had arrived and the persons entitled to the money were infants or unborn, there the purchaser was not bound to see to the application of the purchase- money, because that might have involved him in a trust of long continuance. But if'an estate was charged 1 St. g 1132; 2 Sp. 379, 382, 386, 389. 2 2 Sp. 381. 3 2 Sp. 384. “4 2 Sp. 383; Stroughill v. Anstey, 1 D. M. & G. 653.* ® St, Eq. Jur. 2 1132a, see also Andrews v. Sparhawk, 13 Pick. 392; Adams’s Eq. 156, note. 8 12 138 EXPRESS PRIVATE TRUSTS. with a sum of money payable to an infant at his ma- jority, the purchaser was bound to see the money duly paid on his coming of age; for the estate remained chargeable with it in his hands.’ 264. Where the money was to be applied by the trustees to purposes which required on their part, time, delay, and discretion, it seems the purchaser was not bound to see to the application of the purchase-money.’ 265. By the stat. 22 and 23 Vict. c. 35, s. 23, it is enacted that the bond fide payment to, and the receipt of any person to whom any purchase or mortgage-money shall be payable upon any express or implied trust, shall effectually discharge the person paying the same from seeing to the application or being answerable for the misapplication thereof, unless the contrary shall be ex- pressly declared by the instrument creating the trust or security. By the stat. 23 and 24 Vict. c. 145, s. 12, it is also enacted that receipts for purchase-money given by the persons exercising the power of sale thereby conferred on mortgagees, shall be sufficient discharges to the purchaser, who shall not be bound to see to the application of the purchase-money. And by s. 29 it is also enacted that the “receipts in writing of any trustees or trustee, for any money payable to them or him by reason or in the exercise of any trusts or powers reposed or vested in them or him, shall be sufficient discharges for the money therein expressed to be received, and shall effectually exonerate the per- sons paying such money from seeing to the application 1 St. @ 1133; 2 Sp. 387. 4 St. 41134; 2 Sp. 387. EXPRESS PRIVATE TRUSTS. 139 thereof, or from being answerable for any loss or mis- application thereof.” A general power to give receipts was provided by the stat. 7 and 8 Vict. c. 76, but it only extended from the 1st of January to the Ist of October, 1845, from which day it was repealed. 266. XVITI. As long as the relation of trustee _ : XVIIL and cestui que trust, under an express trust, When iapse is acknowledged to exist, lapse of time can rar somal constitute no bar to an account or other *”""" proper relief for the cestué que trust.’ And it may be observed that where a sum of money is bequeathed to an executor, upon trust, to be laid out on certain trusts, . as soon as it is severed from the bulk of the estate, it ceases to be a mere legacy, and the bar of the Statute of Limitations does not apply ; for it is then a case of express trust, which is specially excepted.? But when this relation of trustee and cestui que trust is no longer admitted to exist, or time and long acquiescence have obscured the nature and character of the trust, or the acts of the parties or other circumstances give rise to presumption unfavorable to its continuance, a Court of Equity will refuse relief upon the ground of lapse of time and its inability to do complete justice.’ 267. By the Judicature Act, 1873 (36 and 387 a op Vict. c. 66, s. 25, par. (2) ), “No claim of a Limitation inapplicable cestui que trust against his trustee for any to «xpress property held on an express trust, or in re- 1 §t. 2 1520a; 2 Sp. 48, 62; Stone v. Stone, L. R. 5 Ch. Ap. 74; Thomson v. Eastwood, L. R. 2 App. Cas. 215. 2 2 Sp. 62; Thomson v. Eastwood, L. R. 2 App. Cas. 215. 3 St. g 1520a. 140 EXPRESS PRIVATE TRUSTS. spect of any breach of such trust, shall be held to be barred by any Statute of Limitations.” 268. eeaa on XIX. There are numerous instances in performed which the Court has caused the main intent, tain in- namely, the trust, to be performed, where , the qualifications intended to secure its due performance have in fact presented obstacles to its being performed at all; as where the consent of a par- ticular person is required, and such consent is per- versely withheld, or cannot be obtained by reason of his infancy... 269. xx where ©: The legal and equitable estates may cea, coexist separately and distinctly in the same ae person, unless they are both coextensive and existence. of the same quality; in which case the equi- table estate will merge in the legal estate, or rather will so coalesce with it as to cease to have any separate existence.” 270. XXI Trust —™©SI. A Court of Equity will enforce, in foraualien. favor of the Crown, a trust of real estate for an alien created prior to the Naturalization Act,1870.' 271. 1 2 Sp. 45. 2 See 2 Sp. 879, 880. 5 33 Vict. c. 14; Sharp v. St. Sauveur, L. R. 7 Ch. Ap. 348. ‘ EXPRESS CHARITABLE TRUSTS. 141 CHAPTER IV. OF EXPRESS CHARITABLE TRUSTS.(a) I. Cuarities are so highly favored in 5 cyarities the Law, that charitable gifts have received vored. a more liberal construction than gifts to individuals.’ 272. Thus— 1, In regard to the want of proper trus- |, regard to tees, if a testator makes a bequest for charity the vant of to such persons as he shall afterwards name ‘Y*°°* 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 other are ap- pointed, 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 Supreme Court will execute the charity.” So if a legacy is given to persons who 1 St. 81165; 2 Sp. 246, 247. 2 St. @ 1165, 1166, 1177. (a) On the subject of jurisdiction in case of Charities, the reader is referred to Mr. O. 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 regulation of Charitable Trusts, 16 and 17 Vict. c. 137, and the Acts to amend it, 18 and 19 Vict. c. 124, 23 and 24 Vict. c. 186, and 32 and 33 Vict.c.110. And as to Roman Catholic Charities, see 23 and 24 Vict. c. 134. By these ‘Acts jurisdiction has, in certain cases, been conferred upon the Chancery Judges in Chambers, the Court of Chancery of the County Palatine of Lancaster, and the Charity Commissioners. 142 . EXPRESS CHARITABLE TRUSTS. have no legal corporate capacity to enable them to take as a corporation; as where a legacy is given to the churchwardens for a charitable purpose. 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.’ 273. ; in regardto 2: Lhe Supreme Court will supply all eenvey. defects in conveyances, where the vendor is eee capable of conveying, and has a disposable estate, and the mode of-conveyance does not contravene any statute. 274. inregarato + In regard to the object, it matters not the objects: how uncertain the persons or objects may be. For if a bequest is made in the most general and in- definite manner simply for charitable uses, or religious and charitable purposes, eo nomine, the Supreme Court will treat it as a valid charitable bequest, and will dis- pose of it for such charitable purposes as it shall think fit. But where the bequest may, in conformity to the expressed 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 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 in- definite for tRe Court 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 writ- "St. @ 1169, 1170. : 2 St. 21171. EXPRESS CHARITABLE TRUSTS. 143 ing, and he leaves no direction by note or codicil, the Court will dispose of it to such charitable purposes as it shall think fit! But a bequest for such benevolent, religious, and charitable purposes, or for such chari- table or public purposes, as the trustees should think most beneficial, is void.’ And yet it has been held that a bequest for such charities and other public pur- poses in the parish of, etc., 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 Eliz. ce. 4.2 275. Where the giver has specified any particular chari- table object, which is contrary to 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 purpose, if the nature of the gift, or the concurrence of other chari- table gifts in the same instrument, indicates that, although the specified object was the favorite, yet it was not the exclusive object of the giver, but that he would have substituted some other charitable object, had he imagined that his favorite design might pos- sibly be incapable of being accomplished. This is called the cy prés doctrine, and where the residue is given to charity, that will not oblige the Court to devote the particular gift which fails to the objects of 1 St. @ 1167. ; 2 See St. 2 1157, 1158, 1164, note 4 to 6th ed., 1167, 1169, 1183; Wilkinson v. Lindgren, L. R.5 Ch. Ap. 570; In re Kilvert’s Trusts, L. R. 12 Eq. 183; 7 Ch. Ap. 170. 3. Dolan v.- Macdermot, L. R. .5-Eq- 60 ;° 3-Ch. Ap. ‘676. - 144 EXPRESS CHARITABLE TRUSTS. the residuary gift.' 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.* Where there are no objects in esse, but some may arise, the Court will keep the fund for them. And when there can be no such objects as those which are specified, or when the specified objects cease to exist, the Court will remodel the charity.’ 276. 4, In regard to surplus income, if a tes- ampiesin-” tator clearly shows an intention to devote cea the whole income of a property to charitable purposes, it will be so applied, although his specific charitable dispositions do not exhaust the whole in- come.‘ 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 benefits of the charity, or to other charitable purposes.’ 277. 1 Mayor of Lyons v. Advocate-General of Bengal, L. R. 1 App. Cas. 92. 2 See St. ¢ 1167-9, 1172, 1176, 1181, 1182; Russell v. Kellett, 3 Sm. & G. 264; Sinnett v. Herbert, L. R. 12 Eq. 201; reversed, L. R. 7 Ch. Ap. 232.* 3 St. 3 1169, 1170, 1170a, 1176; 2 Sp. 79. 4 2 Sp. 248; Att.-Gen. v. Corp. of Beverley, 15 Beav. 540; 6 D. M. & G. 256, 265; 6 H. L. Cas. 310; Att.-Gen. v. Trin. Coll. Camb., 24 Beav. 383. 5 St. 2 1178, 1181; 2 Sp. 248; Philpot v. St. George’s Hospital, 27 Beay. 107; Re Ashton’s Charity, Id. 115; Merchant Taylors’ Comp. v. Attorney-General, L. R. 11 Eq. 35; 6 Ch. Ap. 512. * The cy prés doctrines of the English Chancery have not been generally adopted in the United States in their application to charitable trusts. Adame’s Eq. [69], note, and cases cited. EXPRESS CHARITABLE TRUSTS. 145 5. And to give another instance of the favor shown to charity, lapse of time is not iaueae : an equitable bar in the case of charitable *”” trusts! 278. II. Where money is bequeathed to chari- 3, charities table purposes abroad, the Supreme Court *7°* will secure the fund, and cause the charity to be ad- ministered under its own direction, provided the char- itable purposes are to be executed by persons residing within the jurisdiction of the Court.’ 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... 279. III. It seems that, with a view to encour- age the discovery of charitable donations tein given for indefinite purposes, it is the prac- is 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.* 280. IV. A charity cannot be altered by any qy. atering new agreement between the heir of the donor “*""¥- and the donees.2 281. 1 St. 21192a; Att.-Gen. v. Corp. of Beverley, 6 D. M. & G. 256, 265. But the Statute of Limitations, 3 and 4 Will. IV, c. 27,8. 24, applies to charities. Magdalen Coll. v. Att.-Gen., 6 H. L. Cas. 189; Att.-Gen. v. Davey, 4 D. & J. 136. 2 St. 2 1186, 1300. 3 See St. 3 1184, 1185. 4 St. 3 1192. 5 St. 4 1175. 13 146 IMPLIED TRUSTS. CHAPTER V. OF IMPLIED TRUSTS. AN implied trust is a trust which is founded on an unexpressed but presumable intention! 282. Definition. TcRaelas I. Where, in the case of a will or other ating the : general instrument, the donor of a power has a gen- intention of eral intention in favor of a class, and a par- “power. ticular 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.” 283. Thus, if a fund is given to such of a certain class of persons, or to a certain class of persons in such propor- tions, as a third person shall appoint, if no appoint- ment is made, the objects named will take equally.’ * See St. ¢ 1195, 1254. 2 St. 2 1061a; 2 Sp. 82,420; Harding v. Glyn, 2 Lead. Cas. Eq., 2d ed. 805, et seq.* 8 2 Sp. 83; Salusbury v. Denton, 3 K. & J. 529; Reid v. Reid, 25 Beav. 469; Re White's Trusts, Johns. 656 ; Lambert v. Thwaites, L. R. 2 Eq. 151. * 1 Perry on Trusts, 3 248-258, t Ib., 4 251, 258. IMPLIED TRUSTS. 147 But if a person, making no gift himself, merely em- powers 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.' 284. II. Where property is given upon trust, yy where and the trusts fail, either entirely or par- st "ils. tially, by reason of the failure of the intended objects or purposes, or some of them, or of the illegality or in- definite nature of the trusts, or some of them, or other- wise ; or where the trusts are fully and finally fulfilled, without exhausting all the property out of which they were to be fulfilled, there is a ee resulting trust of such property, or of so twine much thereof as remains unexhausted, to a the person creating the trust, or to his heir or legal representatives, unless there is sufficient evidence or presumption of a contrary intention, or the trust is a charitable trust.? 285. But where there is an absolute, and, for cscs anything that appears to the contrary, a bene- sift, withaa ineffectual ficial gift, with an ineffectual or partial trust 07 partial engrafted on it, the property, or so much as void condi- tion. is unexhausted by such partial trust, will remain in the donee.* And where there is an abso- 1 2 Sp. 84. 2 St. 1196a, 1200; 1 Sp. 510; 2 Sp. 22, 80, 243-6; 1 Cru. T. 12, ¢. 1, ¢ 55, 56; 1 Jarm. on Wills, 2d ed. 475, 482; Att~Gen. ». Green Hill, 33 Beav. 193.* 3 See 1 Sp. 510; 2 Sp. 23, 80. * See 1 Perry on Trusts, 3 159, 160, 1604; Shaw v. Spencer, 100 Mass. 388; Easterbrooks v. Tillinghast, 5 Gray, 17. 148 IMPLIED TRUSTS. lute gift, with an illegal condition, the condition is void, and the donee may retain the whole; as where a testator bequeathed leasehold property upon condition that the legatee should assign a particular part to a charity.’ 286. III. An implied resulting trust also arises III. Convey- - ance with- where a conveyance, transfer, devise, or be- out a con- sideration | quest of land or other property, without any auseor 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.’ 287. 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 beneficial 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 evidence may be given of such circumstances. If no such circumstances. exist, the conveyance or transfer, if perfect, will be regarded as a beneficial gift.’ 288. If a devise is to an infant or a married woman, the presumption is against the devise being upon trust; yet this presumption must yield to the fair construc- tion of the will, if, according to that, the testator ap- pears to have intended a trust. 289. A discretion as to the application of the property 1 2 Sp. 229. ? St. 4 1197, 1199; 2 Sp. 57, 199, 225, 226; Briggs v. Penny, 3 Mac. & G. 546. 3 2 Sp. 199. 4 2 Sp. 225. IMPLIED TRUSTS. 149 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 cer- tain general purposes, though they may be too indefi- nite to be enforced, the donee is a trustee. 290. IV. Where a person parts with or limits = nh tee IV. Limita- a particular estate only, and leaves the resi- Mer : due undisposed of, the residue results to him, “bee even though there may be a consideration.” 291. The heir will take, as personal estate, the benefit of the surplus interest in a term or other particular in- terest carved out of the inheritance for a particular purpose which does not exhaust the whole, as against the devisee, where the devisee takes only what remains after the particular interest so given is carved out.’ 292. 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 accompanied 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 per- sonalty, unless it is either specifically or as part of a fund effectually devised or bequeathed away to some one else, either directly, or by the same kind of neces- sary implication as would in other cases be admitted to constitute an actual gift! 293. 1 2 Sp. 225. 2 St. ¢ 1199. 3 2 Sp. 230. 4 2 Sp. 232. 150 IMPLIED TRUSTS. Hat V. Before the statute 1 Will. IV, c. 40, posed of _ where a testator made no express disposition testaton® of the residue of his personal estate, the ersonal estate executors were at Law entitled to such resi- due; and Courts of Equity, as the Act recites, so far followed the Law, as to hold the executors to be en- titled 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 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 circum- stance or expression in the will, which might appear to rebut the presumption 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... The stat. 1 W. IV, c. 40, furthers the views of Courts of Equity, in narrowing the applica- tion of the rule of Law, by enacting, as to wills made by persons who should die after the first day of Septem- ber, 1830, that the executors shall be deemed by Courts of Equity to be trustees for the persons (if any) who would be entitled under the Statute of Distribu- tions in respect of any residue not expressly disposed of, unless it should appear by the will, or a codicil 1 See St. ¢ 1208 and note; Eleock ». Mapp, 3 Cl. & Fin. 507, 508 ; Underwood v. Wing, 4 D. M. & G. 633, 656, 659; Powell ». Merrett, 1 Sm. & G. 381; Cradock v. Owen, 2 Sm. & G. 241; Read v. Steadman, 26 Beay. 495; Saltmarsh 2. Barrett, 29 Beav. 474, IMPLIED TRUSTS. 151 thereto, that the executors were intended to take such residue beneficially.’ 294. VI. Where real estate is directed to be y: ynais- sold for certain purposes, so much of the real Posdtof |. estate, or the produce theroof, as is not effec- #! estate. tually disposed of by the will at the testator’s- death, . from silence, or the inefficacy 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.’ 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 his will or 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 be effectu- 1 See Harrison v. Harrison, 2 Hem. & M. 237. 2 2 Sp. 233; Ackroyd v. Smithson, 1 Lead. Cas. Eq., 2d ed. 690, et seg.; Taylor v. Taylor, 3 D. M. & G. 190; Robinson v. Gover- nors of London Hospital, 10 Hare, 19; Buchanan v. Harrison, 1 Johns. & H. 662, 675.* * See also Craig v. Leslie, 3 Wheat. 577, 578, 579, where the whole subject is elaborately discussed in the opinion of the Court, delivered by Mr. Justice Washington. 152 IMPLIED TRUSTS. ally disposed of! But a mere direction that the pro- ceeds of the real estate “shall be 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 reference to a mixed fund by the name of “ personal estate,” is not sufficient to give the surplus of the real estate to the nextof kin. And any purpose, however limited (as payment of costs), apparent upon the face of the will, with reference to which the conversion might have been directed, is conclusive against the next of kin.’ 295. If a testator converts his real estate for all the pur- poses of his will, so as to affect the character of the property as between the real and personal representa- tives of persons taking under the will, that will not prevent the heir from taking any part which is undis- posed of, by way of resulting trust.2 But what he so takes will vest in him as personal estate,* 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.’ 296. iain Where real estate is not made a subsidiary GF UNE OE fund, but a testator creates from real and personal estate a mixed and general fund, and directs the whole of that fund to be applied for certain purposes, as for the payment of debts and lega- 1 2 Sp. 237. : 2 2 Sp. 288; Taylor v. Taylor, 3 D. M. & G. 190; Robinson »v. Governors of London Hospital, 10 Hare, 19. 3 2 Sp. 234. 42 Sp. 242. > 2 Sp. 234, IMPLIED TRUSTS. 153 ‘cies, there-he in effect directs that the real and personal estates, which have been converted into that fund, shall answer the stated purposes pro ratd according to their respective values. If any of those purposes fail, then the part of the fund which upon this principle would otherwise have been applicable to those purposes, is undisposed of. So far as that part of the fund 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.) 297. Where money is bequeathed to be laid out yysisposea in land, the same principle applies as where of part of money di- land is directed to be converted into money; [eivetea” the conversion will operate only so far as the Prue’ will disposes of the land into which it is to ‘°° be converted ; so that if the land is devised for a limited estate only, the produce of the fund, or the fund itself, if unconverted, beyond the interest so given, will re- sult to the testator’s next of kin, as personalty, unless it is given away to some other person.’ 298. Where real estate is settled by deed, upon Failure of trust to sell for certain specified purposes, erent and one of those purposes fails, there, whether aan the trust for sale is to arise in the lifetime of the settlor or not until after his decease, the property 1 2 Sp. 235. 2 2 Sp. 235; Reynolds v. Godlee, Johns. 536, 582. 154 IMPLIED TRUSTS. to that extent results to the settlor, as personalty, from the moment that the deed is executed, and not to his heir, either as real or as personal estate. or, the deed takes effect the moment it is executed, and a construc- tive conversion immediately takes place by force of the direction to convert, although the actual conversion is not to take place until after the settlor’s death.’ But where the whole of the purposes for which the conver- sion is directed fail from the moment of the execution of the deed, there the Court regards the case as if no conversion had been directed, and the property results to the grantor as real estate.’ 299. ees Where, in the events that happen, the con- the object templated object for which a conversion of yersion u- Jand into money or money into land is di- rected by will to be made, does not exist, the Court will not vary the property from that state in which it was found at the death of the testator; for where the purpose fails, the intention fails.’ But where any event has happened on which the conver- sion ought to take place, though the object for the con- version afterwards ceases to exist, or partially fails, the property will be treated as if converted. 300. 1 Clarke v. Franklin, 4 K. & J. 257. ? See Lord Eldon’s remarks in Ripley ». Waterworth, 7 Ves. 435, and V.-C. Wood’s remarks in Clarke v. Franklin, 4 K. & J. 265. ® 2 Sp. 234, 261; Buchanan v. Harrison, 1 Johns. & H. 662, 673. * See 2 Sp. 262; Bagster v. Fackerell, 26 Beav. 469; Wall ». Colshead, 2 D. & J. 683. IMPLIED TRUSTS. 155 VII. Implied trusts are often created by cr charges. Where a testator devises an estate Charges. Devise or or makes a bequest in trust to pay debts or bequest in trust to pay other charges, no beneficial interest. passes to cee the devisee, or legatee, but he is a mere trustee for the payment of debts or charges, and as to the residue, after payment thereof, a trustee for the heir or next of kin. But where property is pevise or devised or bequeathed, charged with or sub- [y3vsSi ject to debts or other charges, the whole bene- 7.0 Gtbts ficial interest passes to the devisee or legatee, *™°°>*"8** subject only to the payment of the debts or other charges.’ 301. In the interpretation of wills, favor. to _ creditors has been an acknowledged princi- name of ple of construction.” And real estate may ce be charged by will with the payment of debts, even by a mere expression of an intention that the testator’s debts should be paid, without any other indication that they are to be paid out of the real estate, and whether such expression is contained at the beginning of the will or in any other part. But if a testator directs a particular person to pay, it is natural to presume that the testator intended him to pay out of the funds with which he is intrusted, and not out of other funds over which he has no control ; and if the executor is pointed 1 Sti 2 2245; 2 Sp. 23,n. (6), 226; Heptinstall v. Gott, 2 Johns. & H. 449; Clarke v. Hilton, L. R. 2 Eq. 810.* 2 2 Sp. 327, n. (g). * See also Craig v. Leslie, 3 Wheat. 582, 583; 2 Perry on Trusts, 3 559, et seq. 156 IMPLIED TRUSTS. out as the person to pay, that ordinarily excludes any presumption that other persons, not named, are to pay, or that the debts are to be paid out of the real estate.’ But when a will contains a direction to the executor to pay the testator’s debts, and then a devise of real estate to him, it is considered that the testator has imposed upon the executor the duty of paying the debts to the extent of the property given to him, and accordingly the realty is held to be charged with the debts.? 302. ecteaeoe Where lands are subjected by deed to charge. payment of debts, they will stand charged with such debts only as were owing at the time of making the deed, unless a contrary intention appears on the face of the deed. But the reverse is the case where the charge is by will.? 303. caneask If a legacy is given generally, the legatee ‘egacies. must resort to the personal estate only.‘ But it may be charged on real estate either expressly or by plain implication.? Thus, where a testator makes a provision in the same clause for payment of debts and legacies together, the natural inference is that he intends both to be paid in the same way; and, there- ‘See St. 3 1246, 1247, 1247a; 2 Sp. 320-2; Silk v. Prime, 2 Lead. Cas. Eq., 2d ed. 82, 95, et seq. ? Harris v. Watkins, Kay, 438; Hartland v. Murrell, 27 Beav. 204.* 8 2 Sp. 352, 353. { 2 Sp. 327, 334, 342. 5 See 2 Sp. 327-9, 342. * St. Eq. Jur. 3 1087 b. IMPLIED TRUSTS. 157 fore, if the debts are payable out of a mixed fund, so will be the legacies. So when a devise is made in a residuary form, and yet there is no previous devise, leg- avies are thereby made a charge upon the real estate ; it being considered that the word residue must mean the residue of the real estate after payment of the leg- acies thereout. But even where there has been a pre- vious devise, which was sufficient of itself to account for the residuary form of a subsequent devise, it has been held that such residuary form rendered legacies a charge upon the real estate, especially where the exec- utor was residuary -devisee.’ 304. A general charge of legacies on real and personal es- tate, even though expressed to be on “all the testator’s estates of every description, both real and personal,” will not render real or personal estate specifically de- vised or bequeathed liable to pecuniary legacies, in case of a deficiency in the personal estate, for, the specific devisee or legatee is as much an object of the testator’s bounty as the pecuniary legatee.? 3085. Even where real estate is charged, it will not be held to be liable until after the general personal estate is 1 2 Sp. 828; Silk v. Prime, 2 Lead. Cas. Eq., 2d ed. 98, et seg. ; Francis v. Clemow, Kay, 485, and cases there cited; Harris v. Watkins, Kay, 4838; Wheeler v. Howell, 3 K. & J. 198; Greville ». Browne, 7 H. L. Cas. 689; In re Brooke, Brooke v. Rooke, L. R. 3 Ch. D. 630.* 2 Coote Mortg., 3d ed. 476; 6 Cru. T. 38, c. 16, ¢ 21; Conron »v. Conron, 7 H. L. Cas. 168. * 2 Perry on Trusts, 570; Tracy v. Tracy, 15 Barb. 503. + 2 Perry on Trusts, 2 573; Bardwell v. Bardwell, 10 Pick. 19. 158 IMPLIED TRUSTS. exhausted, unless there is an intention to exonerate the personal estate ;! as where nothing is given to the leg- atee, but a sum to be raised out of the real estate or where a portion of the real estate or its produce is appro- priated as a fund for payment of the legacies.’ 305a. Whether real estate is subject to debts or giving effect legacies, or both, by way of trust, or of to charges. : charge, or of legal power in the nature of a trust, the estate can only be turned into money, and the proceeds distributed, in case of dispute or difficulty, through the agency of a Court of Equity.’ 306. Where an authority to sell is given to a particular person, the vendee takes under the will; any right or title in the heir is excluded, and there is no need of his joining in the sale.* 307. A charge for payment of debts gives the creditors a priority over the special purposes of the devise? 308. ‘Where the estate is charged with annuities, it is not the course to discharge the lands; they will still be charged in the hands of a purchaser.6 309. Where annual and gross charges are to be raised out of the rents and profits or by sale or mortgage, if those words are evidently used in contradistinction, the an- nual charges will be raisable out of the annual rents and profits, and the gross charges by sale or mortgage.” But a Court of Equity will in general consider a charge on the rents and profits to raise portions, legacies, or _debts, as a charge on the land, if ‘such charge is not restrained to the annual profits, and will imply a power ‘2Sp. 388. 2 2S8p.342. %2Sp.365. + 2 Sp. 366. 6 28p.368. 6 2S8p,369. 7 2 Sp. 370. IMPLIED TRUSTS. 159 to sell or mortgage.’ And yet if no time for payment is appointed, as a general rule a sale will not be decreed, but it must be raised in the manner directed. 310. VIII. Where a person buys freehold, yr con copyhold, or leasehold lands and pays the yeyance,3* signment, purchase-money for it, but takes the convey- 91 Surly, in another's ance or assignment in his own name and ™"* that of another or others, or exclusively in the name of another or others whether jointly or successively, the trust of the legal estate will result to the person who advanced the purchase-money ; for it is presumed that the real purchaser intended the purchase to be for his own benefit, and took it in the name of another or others merely to answer some collateral purpose. The same doctrine is applied to securities taken in the name of a third person.’ And proof of the payment of the purchase-money by the real purchaser may be fur- nished either by the language of the deed itself, or by some memorandum or note of the nominal purchaser, or by his admissions in legal proceedings, or by papers left by him and discovered after his death.“ 311. In like manner there will be a resulting : : Purchase or trust, where stock is purchased in the names transfer of : stock or of the purchaser and a stranger, or is trans- delivery of ferred by the owner into the names of him- pee 1 2 Sp. 406; Lord Londesborough v. Somerville, 19 Beav. 295 ; Metcalfe v. Hutchinson, L. R. 1 Ch. D. 591. 2 2 Sp. 406. 3 St. ¢ 1201, 1201a; 1 Sp. 511; 2Sp. 201, 219: Dyer v. Dyer, 1 Lead. Cas. Eq., 2d ed. 165, et seq.* 4 St. @ 1201, note; 2 Sp. 202. * Adams’s Eq. 33, note. 160 IMPLIED TRUSTS. self and a stranger. But if a man delivers money or transfers stock to another, even though he is a stranger, no implied trust will arise unless upon evidence.’ 312. No resulting trust will be raised where a Where a re- sulting contrary intention, unrebutted by other evi- butted; dence or grounds of presumption, is indicated by the terms or the object and purpose of the instru- ment creating the trust, or is established by written or parol evidence, or may be presumed from the relation between the parties.” And hence, in general, h . * Purehase or there will be no resulting trust where a pur- ial i the chase is made or a security is taken by a hus- wife or "* band or a father (either solely or jointly with child, : . his own name or that of a stranger) in the name of a wife, or in the name of a legitimate child, or an illegitimate child, if treated as a child, who is un- provided for, or considered by the husband or father as unprovided for, or as insufficiently provided for; or by a grandfather in the name of his grandchild un- provided for, or considered by him as unprovided for, or as insufficiently provided for, where the father is not living; or by a widowed mother in the name of her child ; because it will be presumed that it was intended as an advancement and provision in discharge of a moral obligation, or as a tribute of affection; unless 1 2 Sp. 219. 2 St. 21196a, note, and 1202; Beecher v. Major, 2 Dr. & Sm. 431.* * As the resulting trust is mere matter of equitable presump- tion, it may be rebutted by facts that negative the presumption. See 1 Perry on Trusts, 4 139, and cases there cited. IMPLIED TRUSTS. 161 there are circumstances which furnish a strong pre- sumption of a contrary intention; such as a contempo- raneous declaration or act to manifest an intention that the party should take as a trustee. A subsequent act or declaration will not suffice to negative an advance- ment. Nor will possession or receipt of the rents by the person who advanced the money, where it may be fairly regarded as having been had as a trustee for the other party.’ But the presumption of advancement may be negatived by the oath of the husband or father that no advancement was intended ;’ or by his both re- ceiving and applying the income in the same way as that of his general property? 313. In other cases where the relationship is not such as to ground a presumption of advancement, the recogni- tion of relationship and expressions of affection or re- gard ought to be looked to in determining whether a beneficial gift was intended.* 314. 1 Dumper 7. Dumper, 3 Gif. 583; Drew v. Martin, 2 Hem. & M. 130; Williams v. Williams, 32 Beav. 370; Tucker v. Burrow, 2 Hem. & M. 515; Sayre v. Hughes, L. R. 5 Eq. 376; Hepworth v. Hepworth, L. R. 11 Eq. 10; Stock v. McAvoy, L. R. 15 Eq. 55; Batstone v. Salter, L. R. 19 Eq. 250; 10 Ch. Ap. 431; and see next paragraph.* 2 Devoy v. Devoy, 38. M. & G. 403. 3 Bone v. Pollard, 24 Beav. 283. In re Eykyn’s Trusts, L. R. 6 Ch. D. 115. 4 St. 2 1202-5, and note; 2 Sp. 214-219, 227, 228; Jeanes v. Cooke, 24 Beay. 513, 521. * See also 1 Perry on Trusts, 3 146, 147, and cases there cited. + 1 Perry on Trusts, ¢ 144, 147. 14 162 IMPLIED TRUSTS. 1x. Limit. | LX- Limitations which confer an estate in tions which joint tenancy at Law, have the same effect aie Ajoint in Equity, when there are no circumstances sali which afford grounds for a departure from the rule of Law. So that where two or more persons purchase lands, and advance the money in equal shares, and take a conveyance to them and their heirs, this is a joint tenancy. But joint tenancy is not favored in Equity; indeed Courts of Equity will lay hold of any circumstances which will enable them to vary in this respect from their practice of following the Law. Foint Thus, if two persons advance a sum of money mortgage. _by way of mortgage, and take a mortgage to them jointly, and one of them dies, his representatives will be entitled to his proportion as a trust. So if two ieee. persons jointly purchase an estate, and pay purchase. ynequal proportions of the purchase-money, and take the conveyances in their joint names; in case of the death of either of them, there will be no sur- vivorship, but they will be deemed to be purchasers in the nature of partners, and to have intended to hold the estate in proportion to the sum which each ad- vanced.’ And where real or personal estate is pur- chased for partnership purposes in trade, and on part- nership account, the legal estate, in whomsoever it may be vested, is in Equity deemed to be partnership prop- erty not subject to survivorship.? 315. ~ T St. 3 1206; 2 Sp. 206, 207, n. (a), 214; Lake ». Craddock, 1 Lead. Cas. Eq., 2d ed. 145, et seq. ° St. 2 1207; 2 Sp. 207; 2 Bl. Com. 399, .. IMPLIED TRUSTS. 163 _ X. When a person has covenanted to lay menu out money in the purchase of land, or to pay nant or’ * * trust to money to trustees to be laid out in the pur- purchase chase of land to be settled, if he afterwards aa purchases land to himself and his heirs, but does not settle it, the land will be subject to the trusts upon which the land to be purchased was to be settled; for, unless the contrary clearly appears, it will be presumed that he purchased in fulfilment of his covenant, upon the principle that acts capable of being considered as done in fulfilment of an obligation shall be so con- strued." And where a trustee or agent is bound by a trust to lay out money in land, if he actually lay it out, the act will, if possible, be presumed to have been done in execution of the trust.2 316. XI. It isa general rule, that if asettlor covenant to convey and settle lands, without nantto specifying any in particular, such covenant 1 St. 1210; 2 Sp. 204-6; Wilcocks 0. Wilcocks, 2 Lead. Cas. Eq., 2d ed. 345, et seg.; Blandy ». Widmore, Id. 347, et seq.* 2 2 Sp. 204-6; Manningford v. Toleman, 1 Coll. C. C. 670; Ex parte Poole, 11 Jur. 1005. * Two rules of construction have been adopted by Courts ; first, “~wherever a trust is created, a legal] estate, sufficient for the pur- poses of the trust, shall, if possible, be implied in the trustee, what- ever may be the limitation in the instrument, whether to him or his heirs, or not.’ Neilson v. Lagow, 12 How. Sup. Ct. 98 ; Sears v. Russell, 8 Gray, 86. And second, “although a legal estate may be limited to a ‘trustee, as to him and his heirs, yet it shall not be car- ried further than the complete execution of the trust necessarily requires.” Norton v. Norton, 2 Sand, 296 ; see cases cited in 1 Perry on Trusts, 2 312. 154 IMPLIED TRUSTS. will not constitute a specific lien on his lands, and the “_ covenantee will be deemed a creditor by specialty only,’ for he may have intended to purchase land for the pur- pose, instead of settling any part of the land he then had. 317. ee XII. Where an assignor of a debt has lateral collateral securities for the debt, the assignee foradebt will be entitled to the full benefit of such assigned. yas epee a securities, unless it is otherwise agreed be- tween the parties. Thus, the assignee of a debt se- cured by a mortgage will, in Equity, be held entitled to the benefit of the mortgage.” 318. xu trust XLII. Equity implied a trust as to orna- as te a> mental timber in favor of the objects of sub- timber. sequent limitations. So that a tenant for life, or a tenant in fee, with an executory devise over, might be restrained from abusing his legal power, by cutting down ornamental timber, which is called equi- table waste.’ 319. By the Judicature Act, 1873,’ it is enacted that “an estate for life without impeachment of waste shall not confer or be deemed to have conferred upon the tenant for life any legal right to commit waste of the descrip- tion known as equitable waste, unless an intention to confer such right shall expressly appear by the instru- ment creating such estate.” 319a. 1 St. 3 1249. 2 St. 2 1047 a. 3 2 Sp. 305; Garth v. Cotton, 1 Lead. Cas. Eq., 2d ed. 559, et seq.; Turner v. Wright, Johns. 740. * 36 and 37 Vict. c. 66, 2 25 (8). IMPLIED TRUSTS. 165 XIV. An implied trust arises in favor of yyy. qrust the wife, when she joins with the husband in {i"isesea effecting a mortgage upon her property, and P*°Per'y- there is no recital and no special circumstances to show that her interest was intended to be changed beyond the creation of an incumbrance, and yet the equity of redemption is reserved to the husband.’ 320. . 1 2 Sp. 306; Earl of Huntingdon v. Countess of Huntingdon, 2 Lead. Cas. Eq., 2d ed. 838, et seg. 166 CONSTRUCTIVE TRUSTS. CHAPTER VI. OF CONSTRUCTIVE TRUSTS. IMPLIED trusts and constructive trusts, as already observed, are frequently confounded or classed Tmplied ang together; and the same trusts are sometimes ctten con. designated by the name of implied trusts, founded. and at other times by that of constructive trusts. 321. Detinition Ree dtp ae as on uae Cree press and from implied trusts, One may be defined to be a trust which is raised by construction of Equity, in order to satisfy the de- mands of justice, without reference to any presumable intention of the parties.’ 322. I. A constructive trust may arise where a J. Repairs . os . or improve- 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 improvements. So, where a person lawfully in possession under a defective title, has made 1 1 Sp. 509, note (a). ' 2 See St. 2 1195, 1254; 1 Sp. 509.* * 1 Perry on Trusts, 112. CONSTRUCTIVE TRUSTS. 167 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.’ But if a tenant for life thinks fit, of his own discretion, or with the consent of trustees, to expend money in improvements, 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 improvements.” 323. II. So, where executors, by mistake, but bond fide and without fault, have paid lega- afleeiere tees or distributees before a due discharge of tees before all the debts, the latter are treated as trustees noe 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? 324. ITI. Where a person is under a covenant jr cove. or agreement, for valuable consideration, to 72% etrent convey, transfer, or pay money or other prop- freseeGr erty to or for the use or benefit of another, Srither ” a constructive trust arises in favor of the PP” latter against the former and his representatives, and those claiming under him as volunteers or with notice of the covenant or agreement; because, where things are covenanted, or agreed to be done, Equity treats them, for many purposes, as if they were done.* 325. 1 St. #1234-7; 2Sp. 206; 2 Lead. Cas. Eq., 2d ed. 520; Kay v. Johnston, 21 Beay. 536. / 2 Dixon v. Peacock, 3 Drew. 288, 292. 3 St. 21251; 28p.207.- .- - 4 See St. 3 1212, 1231. ” 168 CONSTRUCTIVE TRUSTS. Hence, where the Court is satisfied by parol evi- dence that a marriage took place on the faith of repre- sentations as to a settlement, it will direct a settlement in accordance with those representations, as against the person making them or his devisees.' 326. And so a constructive trust arises when and yeasons the purchase-money of an estate is not paid. vendor's 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.? And although, in some cases, it is rea- sonable to presume a tacit consent or agreement that the vendor should have such a lien, yet the lien is not. strictly attributable to such a consent or agreement, but is founded on the most obvious principles of natural justice. 327. In general, the vendor has such a lien; aupinatly and the burden of proof is on the purchaser, oto establish that in the particular case it has been intentionally displaced or waived by the consent of the vendor.‘ Though, 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.© And if a security has been taken for the ' Prole v. Soady, 2 Giff. 1.* * See St. @ 1215, 1217-1220; Mackreth ». Symmons, 1 Lead. Cas. Eq., 2d ed. 235, et seq. 3 See St. 2 1219, 1220. “ St. 2 1224, 5 St. 1225. * St. Ey. Jur. 987 a. CONSTRUCTIVE TRUSTS. 169 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 discharge 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.’ 328. Where the vendor has a lien against the __ vendee, it continues, notwithstanding any ance” devolution or transfer of the estate, except cao where it is extinguished by the countervailing Equity of a bond fide purchaser for valuable consideration without notice, when clothed with the legal title. 329. So that it exists against the vendee and __ his heir, and against volunteers claiming wernt under him; against purchasers under him, a 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 as- signment made by a failing debtor for the benefit of creditors; and against a judgment creditor of the vendee, at least before an actual conveyance of the es- tate has been made to him.? For, in each: of these cases (except that of the bond fide purchaser for valu- able 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 ’ St. 2 1226. 2 See St. Z 1228, 15 170 CONSTRUCTIVE TRUSTS. vendee himself had, but clearly stands in the same situ- ation and subject to the same equity. And although the bond fide purchaser without notice, who has only an equitable title, has an equity quite distinct from that of his vendor, the first vendee, yet the equity of such purchaser to retain what he has paid for is only equal to that of 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. 3830. But the lien will not prevail against a bond fide pur- chaser for valuable consideration from the vendee, where such purchaser has paid his purchase-money, and taken a conveyance of the legal estate, and had no notice, at the time of paying his money, that such vendee had not paid the purchase-money;’ because, having given a valuable consideration for the estate, without notice, he has as much equity to retain 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 virtually 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-purchase-money has not been ’ St. @ 1228, 1229, CONSTRUCTIVE TRUSTS. 171 paid, the original vendor may proceed against the estate for his lien, or against the sub-purchase-money in the hands of such purchaser.' 331. 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 ratably between them.” 332. IV. If a trustee, or other person standing 1¥. Prop: in a fiduciary relation, acquires property or ty 9° makes a profit by means of transactions with- prodieaae in the scope of his agency or authority, or if 42,845, a person employs another’s property in any “°"- trade or speculation, there will be a constructive 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. 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 the purchase would be a trust for the cestui que trust. So if a trustee or a partner should renew a lease of the trust or partner- ship estate, he would be a trustee of such renewed in- terest for his cestui que trust or copartner, even though the lessor may have refused to grant a renewal to the . St. 2 1232. 2 St. 2 1233 a. 5 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 seg.; Robinson ». Pett, 2 Lead. Cas. Ex., 2d ed. 206, et seq.* * 1 Perry on Trusts, 3 197, and cases there cited ; Staat v. Ber- gen, C. E. Green, 297, 308, 554, 559. 172 CONSTRUCTIVE TRUSTS. cestui que trust or copartner.' So if an agent, who is employed to purchase for another, purchases 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.’ And the same principle applies as between a company and one of the directors.’ 333. v. Renewal : Upon analogous principles if a mort- of lease b 5 saa g coenen” gagee or a person having a limited interest having@ in leasehold property, renews the term on ae his own account, he will be held to be a trustee for all the persons interested in the old lease.* 334. The person so converted into a trustee of a renewed lease is entitled to the costs and expenses of renewal, with interest, and to compensation for repairing, build- ing, and lasting improvement; and he may retain the renewed lease to secure the payment.’ 338. vi. wrong. VL. In general, whenever property of one fulconver- kind has been wrongfully converted into alienation Beata property of another kind, by a trustee or Property. agent, the right in rem of the principal or cestui que trust ceases, if the means of ascertainment fail; which of course is the case when the subject- 1 St. 32211; 1 Sp.512; 2Sp. 208, 299, 300; Keech v. Sandford, 1 Lead. Cas. Eq., 2d ed. 36, et seg. ; Clegg v. Edmondson, 8 D. M. & G. 787.* 2 St. 3 121lla. 5 Liquidators of the Imperial Mercantile Credit Association v. Coleman, L. R. 6 H. L. 189. 41 Sp. 512; 2 Sp. 299, 302, 308. 5 2 Sp. 304. * 1 Perry on Trusts, 2 196, and cases there cited. CONSTRUCTIVE TRUSTS. 173 matter is turned into money,and mixed and con- founded in a general mass of property of the same de- scription. But if the property which has been so sub- stituted 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.! 336. But in cases of this sort, the cestui que trust or ben- eficiary 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 dis- claim any title thereto, and resort to any other remedy to which he is entitled, either in rem, or in personam.’ But he cannot 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 trustee or executor to replace the stock, or 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 divi- dends as if the stock had remained.’ 337. If, however, the trustee conveys the trust property to a bond fide purchaser for valuable consideration, who has paid his purchase-money, and had no notice of the ? See St. 3 1258, 1259, 1260; 2 Sp. 303; Robinson ». Pett, 2 Lead. Cas. Eq., 2d ed. 206, et seg.* 2 St. 2 1262. 3 St. 3 1263. * May ». Le Claire, 11 Wall. 217. 174 CONSTRUCTIVE TRUSTS. trust at the time of paying the same, the trust is ex- tinguished. But if the trustee should afterwards re- purchase or otherwise become entitled to the same property, the trust would be revived by construction of Equity.’ And if a trustee conveys or assigns the trust property for valuable consideration, in violation of the trust, to a person who is aware of that circumstance, or conveys or assigns it without valuable consideration, even to a person who has no notice, such person will be treated as a trustee for the cestui que trust. And an executor is deemed a trustee of the assets of his tes- tator.’ 338. aces VII. Where a person has a mortgage in ofmort- fee which he has not foreclosed, the legal gaged sia'*- estate in the mortgaged premises descends to his heir; but by construction of Equity he is trustee for the personal representatives, and through them for the persons entitled to the personal estate of the mort- gagee.” 339. VIII. When a debt is due from an ex- due from” ecutor, he is converted into a trustee of the exeeu'er’ debt. for the parties interested in the estate.‘ 340. 1 See St. @ 1264, and note; 2 Sp. 40, 195, 196; Basset v. Nos- worthy, 2 Lead. Cas. Eq., 2d ed. 1, et seg. ? St. 2 1257; 1 Sp. 512; 2 Sp. 40, 195, 298. * 2Sp. 296; Thornborough »v. Baker, 2 Lead. Cas. Eq., 2d ed. 857, et seq. 4 2 Sp. 296. TRUSTEES, EXECUTORS, ETC. 175 CHAPTER VII. OF TRUSTEES AND OTHERS STANDING IN A FIDUCIARY RELATION. I. ALL persons who are natural-born , w,, cap British subjects,(a) excepting persons at- be trustees. tainted, but not excepting femes covert and infants, may be trustees. And the Supreme Court will ap- point a feme sole to be a trustee.’ 341. II. If a person who is appointed executor proves the will, he becomes liable for the ane performance of ihe duties of the office; and oe if he is also appointed trustee, the taking probate is an acceptance of the entire trust.’ 342. III. If a man appoints a trustee of real 1) pevolu- or personal estate, without naming his heir or Hay fa” personal representative, the heir or personal “™* representative does not become a trustee, although the property may vest in such heir or representative. And where two or more persons and the survivor and the heirs of the survivor. are appointed trustees, and the 1 2 Sp. 32. 2 In re Campbell’s Trusts, 31 Beav. 176.*" 3 2 Sp. 918. (a) As to aliens, see Smith’s Compendium of the Law of Real and Personal Property, 5th ed., p. 1244, et seg. * 1 Perry on Trusts, 51. t 176 TRUSTEES, EXECUTORS, ETC. word “assigns” is not introduced, the sole or surviv- ing trustee cannot delegate the trust either by act inter vivos or by devise.’ A trustee cannot, without the consent of his cestui que trust or of the Court, denude himself of the character of trustee, till he has performed the trust. If, without such consent, he assigns the trust or delegates the performance of its duties to a stranger, he will be answerable for the breaches of trust committed by the assignee or stranger.” 343. IV. Itisarule in Equity, which admits nererwants Of 10 exception, that where a trust exists, a eimste’ Court of Equity never wants a trustee. For wherever a perfect trust, as opposed to a trust resting in contract or in fieri, or even an imperfect trust, if supported by a valuable consideration, has once at- tached, whether it is an express, an implied, or a con- structive trust, and it is not extinguished by the coun- tervailing equity of a bond fide purchaser for valuable consideration without notice or other person having a conflicting equity, nor has otherwise ceased to subsist, Equity will follow the legal estate, and decree the person in whom it is vested to execute the trust. And the lapse of the legal estate never has the least influ- ence on the trusts to which it is subject; if the indi- viduals named fail, whether by death, incapacity, or 1 2 Sp. 38.* 2 2 Sp. 920.t 9 Sec St. @ 976, 1159, 1162; 1Sp. 501; 2Sp. 51, 52, 369, 875, 876.t * 1 Perry on Trusts, 2 294, 340. + Ib. 4 285, 287. t Ib. 3 45, 248, 427, TRUSTEES, EXECUTORS, FTC. 177 refusal, the Court will provide a trustee ; if no trustees are appointed at all, the Court assumes the office in the first instance. 344, V. Trustees, executors, directors of pri- vate companies, and other persons standing an in a similar situation, are not allowed, even cata with the consent of their co-trustees, co-executors, or coadjutors, and, however extraordinary the services they may have rendered, to take any remuneration by way of commission, or brokerage, or salary, without some express or implied provision for that purpose in the instrument under which they claim.2. And a solici- tor, who is a trustee, is not entitled to charge for busi- ness done by him in relation to the trust, as distin- guished from costs out of pocket, although employed to do it by his co-trustee, unless there is a provision in the deed or will creating the trust, enabling him to receive remuneration for the transaction of such busi- ness.’ And even where there is a provision that a solicitor is to be at liberty to charge for his professional 1 2 Sp. 876. 2 St. 3 466 a, 1268; 2Sp. 945, 946; Barrett v. Hartley, L. R. 2 Eq. 789.* 3 Robinson v. Pett, 2 Lead. Cas. Eq., 2d ed. 206, et seg. ; Brough- ton v. Broughton, 2 Sm. & Gif. 422; 5 D. M. & G. 160.+ * The rule to disallow compensation to trustees has not been generally adopted in the United States. See Meacham ». Sterne, 9 Paige, 399; Dewey v. Allen, 1 Pick. 147; 1 Perry on Trusts, @ 432. See also as to rules and rate of compensation in the various States, 2 Perry on Trusts, 3 917a, and note. + 1 Perry on Trusts, ? 432; Morgan v. Homans, 49 N. Y. 667. 178 TRUSTEES, EXECUTORS, ETC. services, he is only entitled to charge for services strictly professional, and not for matters which an ex- ecutor or trustee ought to have done without the inter- vention of a solicitor; such as for attendances to pay premiums on policies, to make transfers at the bank, Expenses attendances on proctors, auctioneers, legatees, allowed. and ereditors.! But trustees are entitled, with- out any express provision, to defray out of the trust funds expenses legitimately and properly incurred.(a)’ 345. vr What VI. By analogy to the case of a gratuitous diligence Dailee, a trustee would seem to be liable only heya, for gross negligence.’ 346. = On the other hand, it may appear that in Prima fece practice Courts of Equity have in many cases Jeckioneea required extreme circumspection and vigil- the subject. ance, while in others they have been satisfied with the degree of care usually exhibited by men in the management of their own affairs.’ 347. meee state But the true state of the case seems to be ofthecase. this: that there are certain things which either clearly appear in themselves to be duties, or are established as such by the uniform policy of Courts of Equity; and to these the Courts require a rigid ad- herence. But in regard to other points, the trustee is only required to use customary care and diligence; that * Harbin v. Darby (No. 1), 28 Beav. 325. 2 2Sp. 938. % St. 31268.* 4 St. ¢ 1272, 1278; 2 Sp. 917. (a) The stat. 22 and 23 Vict. c. 85, s. 31, provides that the trust instrument shall be deemed to cuntain a clause as to reimburse- ment. : * See also 1 Perry on Trusts, 3 441, et seg. TRUSTEES, EXECUTORS, ETC. 179 which is usually exercised by men of ordinary prudence and vigilance in the management of their own affairs.’ 348. Thus, if a trustee omits to sell property 6. scion to when it ought to be sold, and it is afterwards **!- lost, although without any fault of his, he is liable; because the loss, although not directly occasioned by his default, would never have happened had he not failed in performing what must have appeared a palp- able, although perhaps not an urgent duty.” 349. Again, Courts of Equity are in the habit 5, oc of directing property in their own possession ™°'s- to be invested in the £3 per cent. Annuities; and it became an established duty, on the part of trustees, to whom no discretion as to investments is given, to in- vest their trust moneys in those funds. And this rule, like an Act of Parliament, or any other kind of Law, was supposed to be well known, and no one was allowed to plead ignorance of it. If therefore a trustee invests, or even suffers money previously invested to remain, on unauthorized security, however unexceptionable it might seem to be, and such security afterwards fails, or if he permits choses in action to remain outstanding, and a loss arises, he will be liable; as also he will for the fluctuations of any unauthorized fund.’ £3 per 1 See Brice v. Stokes, 2 Lead. Cas. Kq., 2d ed. 725, et seq. 2 See St. 3 1296, note; 2 Sp. 934. 3 See St. 2 1296, note, 1273, 1274, note; 2 Sp. 9238, 926, 934.* * See 1 Perry on Trusts, 3 455, 456, where the rule as to in- vestments in the United States is fully stated. See also, ibid., 2 456, note, for consideration of cases that have been adjudged in the 180 TRUSTEES, EXECUTORS, ETC. cent. Consols is the fund which is usually selected by the Court for investment; but £3 per cent. Reduced is frequently resorted to for convenience, as when quarterly payments have to be made.’ 350. But where trustees are expressly authorized to invest in Government security, they are not bound to convert other kinds of Government stock into the £3 per cents., and. it would seem that they may invest in any kind of Government stock. And by the stat. 22 and 23 Vict. c. 35, s. 32, “when a trustee, executor, or ad- ministrator shall not, by some instrument creating his trust, be expressly forbidden to invest any trust fund on real securities, in any part of the United Kingdom, or on the stock of the Bank of England or Ireland, or on East India stock, it shall be lawful for such trustee, executor, or administrator, to invest such trust fund on such securities or stock; and he shall not be liable on that account as for a breach of trust, provided that such investment shall in other respects be reasonable and proper.” By the stat. 23 and 24 Vict. c. 38, s. 12, it is enacted that this provision shall operate retrospec- tively. And by the stat. 30 and 31 Vict. c. 132, 8, 1, it is enacted that “the words East India stock in the said Act passed in the session holden in the twenty- second and twenty-third years of her Majesty, chapter thirty-five, shall include and express as well the East 1 2 Sp. 552, note (a). ? Baud v. Fardell, 7 D. M. & G. 628. late Confederate States, involving the legality of investments by trustees in the bonds and securities of the late Confederacy. TRUSTEES, EXECUTORS, ETC. 181 India stock which existed previously to the thirteenth day of August, one thousand eight hundred and fifty- nine, when the said Act received the assent of her Majesty, as East India stock charged on the revenues of India, and created under and by virtue of any Act or Acts of Parliament which received her Majesty’s assent on or after -the thirteenth day of August, one thousand eight hundred and fifty-nine; and it shall be lawful for every trustee, executor, or administrator, to invest any trust fund in his possession or under his control in the stock created by the last-mentioned Act or Acts to the same extent, and for the same purposes and objects, as he can now invest: such trust fund in the East India stock which existed previously to the thirteenth day of August, one thousand eight hundred and fifty-nine.” And by s. 2, “it shall be lawful for every trustee, executor, or administrator, to invest any trust fund in his possession or under his control in any securities, the interest of which is or shall be guaran- teed by Parliament to the same extent and in the same manner as he may invest such trust fund in such secu- rities as aforesaid.’”’(a) 351. According to the general understanding of the pro- fession, and the general practice of the Court, where trustees are authorized to invest on mortgage of real estate, they are not justified in advancing more than two-thirds of the value of agricultural freeholds, or one- half of the value of freehold houses ; and if the value (a) See also ss. 10, 11, as to the investments authorized by the Court of Chancery by general orders. See also 23 and 24 Vict. c. 145, and 34 Vict. c. 27, as to investménts. 182 TRUSTEES, EXECUTORS, ETC. depends upon fortuitous circumstances—for instance, if the property consists of a mill, or factory, or house situate in a watering-place, or the like—the trustees run the risk of having the mortgage thrown upon themselves, and of being made answerable for the money advanced.’ And an authority to lend on such personal security as they shall think sufficient will not justify the trustees in lending it to the husband who is in trade, or indeed to a trading concern.? And an in- demnity clause, declaring they shall not be liable for the insufficiency of any security, will not exonerate them from liability, if they lend on palpably inade- quate security.* 352. A trustee is not authorized to sell out stock, and in- vest the proceeds on a mortgage to secure the re-transfer of such stock, and the payment of interest equal to the amount of the dividends.* 353. Trustees are bound to invest on securities of a per- manent nature. So that even where trustees have power to invest as they think fit, they may not invest upon securities which at the time are commanding a higher rate of interest in consequence of their being determinable.’ 354, 1 2 Sp. 925; Remarks of Sir J. Romilly, M. R., in Macleod ». Annesly, 16 Beav. 605; Budge v. Gummow, L. R.7 Ch. Ap. 719.* 2 2 Sp. 926.7 3 Drosier v. Brereton, 15 Beay. 221. “ Whitney », Smith, L. R. 4 Ch. Ap. 513. ° Stewart v. Sanderson, L. R. 10 Eq. 26. * 1 Perry on Trusts, @ 457. T Ib. 2 454. - - > TRUSTEES, EXECUTORS, ETC. 183 An executor will not be liable for money ojiccion of allowed to remain with bankers who fail, tstee or | it i sce that the where it is not an unreasonable sum for ex- S<¢'hat th ecutors to keep in the bank,' or where it was {475° only reasonable for the money to be deposited ?'* there under the circumstances.? But he will be liable, if he places his money in the hands of a banker by way of investment, notwithstanding an indemnity clause against loss by a banker of money deposited for safe custody.* 355. Again, where there are two or more trustees or ex- ecutors, it is the duty of each trustee and executor to see that the property is duly secured or rightly applied, as the case may be. And therefore, as a general rule, if by the act, direction, agreement, or consent of one of them, the trust fund is paid over to the other, even though it was so paid over in order to be applied by the receiver for those purposes for which it was prop- erly applicable, and the receiver wastes or misapplies it, each will be answerable for the whole; except in the case of money remitted to a co-trustee or co-executor, to be paid by him in his neighborhood, where the trustee or executor remitting the same, in case it had been his own money, would naturally have remitted it to some one to pay it away, instead of undertaking a ? Swinfen v. Swinfen (No. 5), 29 Beav, 211.* 2 Fenwick v. Clark, 4D. F. & J. 240. 3 Rehden v. Wesley, 29 Beay. 213. * 1 Perry on Trusts, 3 448, 446, and cases cited. + Ib. 3 446. 184 TRUSTEES, EXECUTORS, ETC. journey for the purpose of paying it himself. And so if one trustee is allowed to retain the money, and he, against the remonstrances of the others, places it in the hands of solicitors to invest on mortgage, and the so- licitors apply it to their own uses, the others will be liable.’ So if one trustee improperly suffers the other to detain the trust money a long time in his own hands, without security, or lends it to the other, or joins or acquiesces in a loan of it to any one else, on insufficient security, each will be liable for the whole loss which may happen. And so if itis mutually agreed between them that one shall have the exclusive management of one part of the trust property, and the other trustee of the other part, each will be liable for any loss which may happen even to the part of which the other has the management ;* because the party not acting was in default for giving the other the power and exposing him to the temptation to commit a breach of trust, in- stead of exercising that control over the property which it was his duty to exercise for the protection and due management thereof. 356. ; On the other hand, if a trustee or other pul ent OE person standing in a fiduciary relation has customary . : > gar0 oF not failed in doing what must have appeared to bea palpable duty, and has invested the 1 St. @ 110a, 1281, note, and 1284, and note; 2 Sp. 370, n., 920, 934; Cowell v. Gatcombe, 27 Beav. 568.* ? Griffiths v. Porter, 25 Beav. 236. 5 St. 4 1274, 1284; 2 Sp. 920, 922, 923, 932; Mendes v. Guedalla, 2 Johns. & H. 259.+ * See also 1 Perry on Trusts, 3 402, 417, and cases cited, t 1 Perry on Trusts, 4 418, and cases cited. TRUSTEES, EXECUTORS, ETC. 185 property on authorized security, he will not be answer- able for losses which happen without any want of cus- tomary care or diligence on his part.’ So that if he deposits the money with a banker in good credit, to be remitted to the proper person by a bill drawn by a person in due credit, and the banker or drawer of the bill becomes bankrupt, he will not be responsible. The rule in all cases of this sort is, that where a trustee or executor acts by other hands, either from necessity, or conformably to the common usage of mankind, he is not to be made answerable for losses.” But it has been held that trustees who pay over the trust funds to a wrong party on a forged certificate are liable ;* and that a trustee or executor is liable for loss caused by the fraud, negligence, or other fault of his solicitor, although in employing such solicitor he may have ex- ercised ordinary care and discretion. But the con- trary was held in another case. And where a trustee employs a proper person to do a necessary act, and that person is the cause of an accident: (as by felling a tree) for which the trustee is made to pay, the loss ought to be borne by the estate, and not by the trustee. 357. 1 See St. 3 1269, note, 1274, note, and 465; 2 Sp. 937. 2 St. 1269; 2 Sp. 933-5; In re Bird, Oriental Commercial Bank v. Savin, L. R. 16 Eq. 208. 3 Eaves v. Hickson, 30 Beav. 136. 4 Bostock v. Floyer, L. R. 1 Eq. 26; Hopgood ». Parkin, L. R. 11 Eq. 74; Sutton v. Wilders, L. R. 12 Eq. 373. 5 In re Bird, Oriental Commercial Bank v. Savin, L. R. 16 Eq. 203. © Bennett v. Wyndham, 4 D. F. & J. 259. 16 186 TRUSTEES, EXECUTORS, ETC. VI. Non- VII. If trustees do not invest trust money investment. when they ought to do so, even though they may make no profit by it, they are responsible, at the option of the cestui que trust, either for the money, and interest at £4 per cent., or the stock which might have been purchased therewith at the time when the invest- ment ought to have been made, and the dividends.’ 358. SAT Wie VIII. As a general rule, where a testator sina giry Subjects the residue of his personal estate to property. succeeding limitations, directly or by way of trust, without any particular directions as to the in- vestment or mode of enjoyment, or even with an au- thority to his trustees to allow the same state of invest- ment to continue; there, in the absence of indications of a contrary intention, such part of the residue as may be wearing out (such as leaseholds), or may be invested in securities which yield a high rate of interest, but are not authorized by the Court, must be converted and put in such a state of investment as to be securely available for all persons interested in it. And if the residue comprises property of a reversionary nature, that also must be converted. The one rule protects the remainder-man, the other protects the tenant for life’ 359. * St. 3 1278a; 2Sp. 924; Att.-Gen. ». Alford, 4D. M. & G. 843.* ? See 2 Sp. 42, 552-7; Howe v. Earl of Dartmouth, 2 Lead. Cas. Eq., 2d ed. 262, et seg. ; Bate v. Hooper, 5 D. M. & G. 338; Boys v. Boys, 28 Beav. 436; Rowe v. Rowe, 29 Beav. 276; Brown v. * 1 Perry on Trusts, 3 469, and cases there cited. TRUSTEES, EXECUTORS, ETC. 187 IX. Where personalty is directed to be . IX. Time al- converted as soon as conveniently may be, loved tr there, as between the executor and the per- aa sons interested in the estate, the personalty is to be considered as converted within a year; that being con- sidered as the time within which, in the generality of cases, it may be converted with ordinary diligence." 360. X. When a sum of stock is given to trus- . . 4° ‘ X. Invest- tees in trust for a married woman for life, aoe om with remainder to her children, being infants, a the Court will not ordinarily give its sanction to the fund being sold out and invested on mortgage, so as to give the tenant for life a greater income, though power may have been given to the trustees to lay out the property on real security, and though they join in the petition.” 361. XI. Itisthe wise policy of Courts of Equity : s XI. Equity to guard against a breach of trust, by pro- guards ainst hibiting all acts which may unnecessarily breach of place the trustee in a situation of tempta- tion’ 362. Hence, in all cases in which a trustee keeps qyustee trust money in his hands, or in the hands of ™2y pot a banker, he should take care to keep it sepa- Uys money rate from his own. For if he were to mix °*™ it with his own in a common account, he would be Gellatly, L. R. 2 Ch. Ap. 751; Porter v. Baddeley, L. R. 5 Ch. D. 542; and other cases cited in Smith’s Law of Prop., 5th ed., par. 3421.* 1 2 Sp. 42, 565, note (ce). %2S8p.569. *% See 2 Sp. 300. * 1 Perry on Trusts, ¢ 439. 188 TRUSTEES, EXECUTORS, ETC. deemed to have treated the whole as his own, and would be charged with interest, and would be liable to the cestut que trust for any loss sustained by the banker’s insolvency.’ If the trustee were at liberty to mix the trust money with his own, he would often be tempted to use it as his own, fully intending shortly to replace it; and frequently, indeed, he would not know whether the money with which he was carrying on his affairs was his own or not. In this way, he would be naturally led to expend the trust money on his own account, and loss to the trust property would frequently be occa- sioned. 363. Similar observations may be made with respect to an agent.’ 364. XII. Upon the same principle, a trustee XII. Trus- : : tee isc’ or other person standing in a fiduciary rela- for interest tion, is never permitted to make any profit and gains. to himself from the property with which he is intrusted or from the office itself; if any advantage is gained by such a person, it belongs to the cestui que trust. Hence he is accountable for all the interest which he ought to have made, and would have made, by the investment of the property on the security di- rected by the instrument creating the trust, or, in the absence of any such direction as to the mode of invest- ment, on the security authorized by the general rule of the Court. And he will also be accountable for any interest and gains beyond the amount of such interest St. ¢ 1270; 2 Sp. 934. See Cook »v, Addison, L. R. 7 Eq. 466. 2 St. 2 468, TRUSTEES, EXECUTORS, ETC. 189 as above mentioned, which he has actually made on, or with, or in regard to, the trust property, whether in the ordinary discharge of his duty, or in transactions entered into for his own benefit, as he supposed, or otherwise, if the amount of such extra interest and gains can be ascertained.’ Or he will be made to pay interest at the rate of £4 or £5 per cent.’ And, under extraordinary circum- stances, the Court will direct annual or half-yearly rests to be made, so as to give the cestui que trust the benefit of compound interest ; as, if a trustee, in mani- fest violation of his trust, has applied the trust fund to his own benefit and profit in trade, or. has conducted himself fraudulently, or has wilfully refused to follow the positive directions of the instrument creating the trust as to the investment of the property.’ And if a trustee or particular agent purchases from his cestus que trust, even at a public auction, the cestui que trust has the option of taking to or repudiating the trans- action; unless the cestui que trust intended that the trustee should buy, and there has been no fraud, con- ” See supra, par. 338, and St. % 465, 1211, 1261, 1269, note, 1277, 1278; 2Sp.300, 945; Sugden ». Crossland, 3 Sm. &G. 192; Cross- kill v. Bower, 32 Beav. 86; Chaplain v. Young (No. 2), 33 Beav. 414.* . 2 2 Sp. 921.+ 3 St. 21277; 2 Sp. 921. * Sloo v. Law, 3 Blatch. 459; 1 Perry on Trusts, 3 468, and cases cited. Slade v. Van Vechten, 11 Paige, 21. + In the United States there is no law by which different rates of interest can be applied to different degrees of negligence. See 1 Perry on Trusts, 3 468. 190 TRUSTEES, EXECUTORS, ETC. cealment, or advantage taken on the part of the trustee.’ A person may indeed grant a beneficial interest, or make a present, to his trustee, agent, or receiver; but the latter must show that the dealing was fair, and that the grantor was perfectly free in the matter, and: had the same knowledge as he himself had.’ 360. XIII. Re- XIII. A trustee (as in certain cases we sponsibility have noticed, par. 356) is responsible for his other's acts: Own acts and defaults, and for those wrong- il ful 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 ac- quiesces, 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 check for the proceeds to the other, who misapplies the money, they are both liable And so if two trus- tees execute a release for trust money, which is then received by one and invested by him on improper security, the other is liable; for it was his duty to see that it was properly invested.‘ And where two trus- tees 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 the 1 2. Sp. 300, 301, 943, 944; supra, par. 161; Luff ». Lord, 34 Beav. 220. 2 2 Sp. 301, 944; Barrett ». Hartley, L. R..2 Eq. 789. 8 Trutch v. Lamprell, 20 Beav. 116; Horton v. Brocklehurst (No. 2), 29 Beav. 504.* 4 Thompson v. Finch, 22 Beav. 316. * 1 Perry on Trusts, 3 402. TRUSTEES, EXECUTORS, ETC. 191 estate of the former was liable, though the other might have sold out stock on the death of his co-trustee.! And the same rule applies to executors and other per- sons 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.? 366. There is, however, an important distin~ tion in connection with this point, between between the case of mere executors, and the case of and execu- tors in re- trustees, which, nevertheless, does not mili- gard to the effect of tate against the application of the above- joining in receipts. 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 par- ticular circumstance which would afford a presumption of the performance of an act involving responsibility, in the case of an executor, will not afford any presump- tion thereof in a case of a trustee. Thus, trustees have only a joint interest, power, 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 to- gether actually receive the trust money from the person by whom the same may be payable. Hence it cannot be inferred from a trustee 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 receive the debts due to the estate, and all other assets, and is 1 Gibbons v. Taylor, 22 Beav. 344. 2 2 Sp. 918, 928. * Lee v. Sankey, L. R. 15 Eq. 204. 192 TRUSTEES, EXECUTORS, ETC. competent to give a valid discharge by his own sepa- rate receipt; and, therefore, if they join in a receipt, it is purely a voluntary act, and it will be presumed that they jointly received the money. 367. In each case, however, the same rule applies 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; because the act done by him is as likely to have been a mere for- mal act as not; whereas in the other case, the party being an executor, is presumed to have done the act in- volving responsibility ; because he has done that which an executor, who has not actually received the money, is not called upon to do.’ 368. The trustee indemnity clause does not indemnity exonerate a trustee from the consequences of wane a breach of trust.’ 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 oppor- tunity of committing breaches of trust, whereby such trustees are involved in Equity proceedings, which, however, often necessarily proves unavailing to remedy the loss occasioned to the cestui que trust.(a) 369. 1 As to these passages respecting acts and defaults for which a trustee or other person standing in a fiduciary relation is respon- sible, see St. 4 1280, 1280 a, and note; 2 Sp. 928, 929, 932; Brice v. Stokes, 2 Lead. Cas. Eq., 2d ed. 725, et seg.* ? Brumridge v. Brumridge, 27 Beav. 5. (a) The stat. 22 and 23 Vict. c. 85, s. 31, provides that trust in- struments shall be deemed to contain these clauses. * 1 Perry on Trusts, 2 416, et ség. TRUSTEES, EXECUTORS, ETC. 193 XIV: “Every person who acquires per- sonal assets by a breach of trust or a devas- of trict by tavit, by an executor, is responsible to those ™ ea who are entitled under the will, if he is a party to the breach of trust. Generally speaking, he does not be- come a party to the breach of trust by buying, or re- ceiving as a pledge for money advanced to the executor at the time, any part of the personal assets, even know- ing them to be such, whether specifically given by the will or otherwise ; because the sale or pledge is held to be primé 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 satisfaction of his private debt; be- cause this sale or pledging is primd facie inconsistent with the duty of an executor.” And if an executor or administrator disposes of assets without a valuable con- sideration, the assets may be followed in specie, if dis- tinguishable; 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 disposed of. 370. XV. Where executors or trustees are XV. Joint jointly implicated in a breach of trust, all of breach of them should, if possible, be brought. before 1 Per Sir John Leach, in Keane v. Robarts, 4 Mad. 357, cited St. 2 580; see also 2 Sp. 373, 374, 379. 2 2 Sp. 379. , 17 194 TRUSTEES, EXECUTORS, ETC. the Court, and should. be made to contribute propor- tionably ; especially where the trust property is to be brought back to be administered by the trustees, or where a general administration is involved." 371. 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 case of need, proceed against any or either of them singly or separately, even against the less guilty.” And in such case, the trustee or trustees who may be so singly or separately compelled to make good the loss, may seek contribution from the others or other of them in another suit? 372. XVI Acquic VWI. If cestui que trust has for a long fbreach of time acquiesced in the misconduct of his es trustee, with full knowledge of it, a Court, of Equity will not relieve him; for vigilantibus non dormientibus, equitas subvenits 373. ’ See observations of L. C. B. Richards, In re Chertsey 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. 2 See Walker v. Symonds, 3 Swans. 75-8; Bradwell v. Catch- pole, Id. 78, note. See also Rules of Court, 1875, Ord. xvi. 1. 5; and Attorney-General v. Corporation of Leicester, 7 Beav. 176; Kellaway v. Johnson, 5 Beav. 319; Perry v. Knott, 4 Beav. 179; 5 Beay. 293; 2 Sp. 941. ® See Lord Eldon’s judgment in Walker v. Symonds, 3 Swans, 76-8; 2 Sp. 941. 4 St. @ 1284 a. TRUSTEES, EXECUTORS, ETC. 195 XVII. The debt created by a breach of trust is only regarded as a simple contract fy uredenat debt, both at Law and in Equity, even where Btipte eon the trust arises under a deed executed by the Meeecneen trustees ; unless the trustee who committed such breach of trust has acknowledged the debt under seal ;' or unless by deed he has not merely accepted the trust, but has agreed or declared that he will execute the trusts.” 374. Money owing to a defaulting trustee as peraut by a beneficiary will be regarded as money paid 34245¢° by him out of money for which he has not "7e*e™- accounted.* 375. XVIII. A trustee may bind the estate by xyyyy a conveyance toa bond fide purchaser, who fo%erf had no notice at the time of paying his pur- OG 0", chase-money :* because, in that case, the trust °° is virtually extinguished by the countervailing equity of the bond fide purchaser. But if afterwards the trustee re-purchases or otherwise becomes entitled to the same property, the trust revives and re-attaches upon it.2 And so, if a trustee or executor transfers trust funds upon the trusts of 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 1 St. 2 1285, 1286; 2 Sp. 936. 2 Wynch ». Grant, 2 Drew. 312; Holland v, Holland, L. R. 4 Ch. Ap. 449. 3 Jacubs v. Rylance, L. R. 17 Eq. 341. * St. 2 1264, and note; Basset v. Nosworthy, 2 Lead. Cas. Eq,, 2d ed. 1, et seq. ‘ 5 St. 2 1264. 196 TRUSTEES, EXECUTORS, ETC. fact that the party transferring was not beneficial owner of the funds, it has been held that the trusts of the settlement will attach upon the funds.’ . 376. A purchaser has no right to a conveyance from trustees, where they had no right to sell at all, or not in the way in which they did sell, and where the pur- chaser was aware of that circumstance before he paid his purchase-money.” 377. The trustee may bind the estate by a bond fide mort- gage, or other specific lien, without notice of the trust. But the trust property will not be bound by any judg- ment or any ‘other claim of creditors against the trustee? 378. If, however, for a great number of years a trust for raising money remains unperformed, and a sale or mortgage is proposed to be made by the trustees, with- out an apparent reason for the sale or mortgage, and without the concurrence of the parties who are in pos- session and receipt of the rents, the purchaser or mort- gagee is under some obligation to inquire and see whether the transaction is or is not a breach of trust.‘ 379. 1 Cooper v. Wormald, 27 Beav. 266. 2 Dance v. Goldingham, L. R. 8 Ch. Ap. 902. 3 St. ¢ 977. 4 Stroughill v. Anstey, 1 D. M. & G.654.* * 2 Perry on Trusts, 3 797, 798. Inthe United States, where lands are holden for the payment of the testator’s debts, a devise of lands for the payment of particular debts or legacies only can impose upon the purchaser no obligation to see to the application of the purchase-money. The strict English rule is not favored by the American courts. See Elliott *. Merryman, 1 Lead. Cas. Eq., 4th Am. ed. 40, American notes. TRUSTEES, EXECUTORS, ETC. 197 And if a person, though without any notice of a trust, and for valuable consideration, takes from a trustee a mere equitable estate, interest, or charge, when, for his own safety, he ought to have required a legal estate, interest, or charge, he cannot set it up against the cestwis que trust, where the trustee wrong- fully created it. 380. Where a trustee is beneficially interested in part of a trust fund, and misapplies the 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 previously put a distringas on it. 381. XIX. An executor or administrator is y1x pig. personally liable for the payment of debts bility, duty, in respect and to the extent of the personal of executor assets. It is his primary and paramount '*™ duty, with all convenient speed, to pay the debts out of the personal estate. And he has full right either to mortgage or sell for payment of debts. And hence if the assets be sold or aliened by the- executors or ad- ministrators, or any of them, for valuable considera- Aion, the creditors cannot follow them; they are ab- solutely vested in the purchaser. And an executor or administrator may assign to a creditor and give him 1 Shropshire Union Railways, etc. Co. v. The Queen, L. R. 7 H. L. 496. 2 Wilkins v. Sibley, 4 Gif. 442. (a) See stat. 23 and 24 Vict. c. 145,.s. 30, as to powers of paying debts, compromising, compounding, and referring to arbitration. ~ 198 TRUSTEES, EXECUTORS, ETC. a power of attorney to collect debts, to secure the pay- ment of his, the creditor’s own debt.’ 382. If an executor or administrator has, except under the direction of the Court, or except in the case pro- vided for by the stat. 22 and 23 ¥ict. c. 35, s. 29, paid away the residue in ignorance of the existence of any debt, he is still liable? But an executor or ad- ministrator fairly stating the facts, and paying over the assets under the direction of the Court in an administra- tion suit, is fully indemnified against all existing or contingent demands on the estate.’ And by the stat. 22 and 23 Vict. c. 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 adminis- tration suit, for creditors and others to send in to the executor or administrator their claims against the es- tate of the testator or intestate, such executor or admin- istrator 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 liberty to distribute the assets ot the testator or intestate, or any part thereof, amongst the parties entitled thereto, having regard to the claims of which such executor or administrator has then notice, and shall not be liable for the assets or any part thereof 1 2 Sp. 372, 373; Earl Vane v. Rigden, L. R. 5 Ch. Ap. 663. 2 2 Sp. 921. 3 Waller v. Barrett, 24 Beav. 413; Bennett v. Lytton, 2 Johns. & H. 155; Williams v. Headland, 4 Gif. 505. TRUSTEES, EXECUTORS, ETC. 199 so distributed to any person of whose claim such exec- utor or administrator shall not have had notice at the time of distribution of the said assets or a part thereof, as the 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 hands of the person or persons who may have re- ceived the same respectively.” And an executor has the same protection under this Act as under a decree.! 383. This Act applies to claims of next of kin as well as to claims of creditors. And it affords protection to the sureties in an administration bond where the adminis- trator has pursued the course prescribed. 384. By the stat. 22 and 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 re- specting the management or administration of the trust property, or the assets of any testator or intestate. 385. 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 interested for any impropriety of conduct; and subject to this also, that if there is any fraud or gross error in the settle- ' Clegg v. Rowland, L. R. 3 Eq. 368. 2 Newton v. Sherry, L. R. 1 C. P. D. 246. 200 TRUSTEES, EXECUTORS, ETC. ment of account, it may be a ground for re-opening it.’ 386. After an administration decree, an executor can do no act to vary the rights of the parties; as by giving an acknowledgment to take a debt out of the Statute of Limitations.? 387. XX. Trustees to support contingent re- XX. Trus- 4 2 tees to sup- mainders are peculiarly considered as hono- gent re- rary trustees for the benefit of the family, 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 convey- ances 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 them to join. Where, however, be- fore 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 Equity have compelled such trustees to join in conveyances which may affect or destroy the remainders, under pe- culiar circumstances of pressure, to discharge incum- brances prior to the settlement ; or in favor of creditors, where the settlement was voluntary ; or for the advan- 1 Smith v. Everett, 27 Beav. 446, 454. ‘ 2 Phillipps v. Beal (No. 2), 32 Beav. 26. TRUSTEES, EXECUTORS, ETC. 201 tage of persons who were the first objects of the settle- ment; as, for example, to enable the first son to make a settlement on an advantageous marriage.’ 388. XXI. Courts of Equity will assist the aes trustees, and protect them in the due per- Equity will aid and di- formance of the trust, whenever they ask the pectin: aid and direction of the Court, as to the es- ce tablishment, the management, or the execution of it.? And in cases of substantial doubt, it is best to ask for the direction of the Court.’ 389. A trustee who commits a plain breach of garty of trust is not protected from its consequences *¥stees- by the circumstance that he honestly took and followed the advice and opinion of his solicitor, whatever remedy he may have against his solicitor,‘ or that he committed it with the view of saving his cestui que trust from ruin.’ 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 trustee liable for that breach of trust, by filing a bill against him.® 390. 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 beneficial. But when a trustee ventures to deviate from the letter of his trust, he does so under the obliga- 1 St. ¢ 995-7; Lewin on Trusts, 4th ed. 285-292.* 2 St. 2 961. 3 St. 1276, note. * 2 Sp. 919. 5 See 2 Sp. 920. § 2 Sp. 920. * 2 Perry on Trusts, 3 522, 523. Not frequent in the United States, ibid. 202 TRUSTEES, EXECUTORS, ETC. tion and at the peril of afterwards satisfying the Court that the deviation was necessary or beneficial. 391. 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,” or is protected by the stat. 22 and 23 Vict. c. 35, ss. 29, 30.2 392. A person who accepts the office of trustee, at the request of the cestui que trust, is entitled to be indem- nified by the latter personally against all loss which may arise in the due execution of the trust. 3924. Notice to an executor of a possible contingent lia- bility of his testator’s estate (such as the possible in- solvency of a company believed to be perfectly solvent), is not a sufficient reason for rendering it improper for him to distribute the estate without the direction of the Court; and if the liability afterwards becomes a debt, he will be entitled to call on the residuary lega- tees to refund the capital paid to them, but.not the in- termediate income.’ 393. 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.© 394. 1 Harrison v. Randall, 9 Hare, 407.* 22 Sp. 49. 3 Supra, par. 388, 385. * Jervis v. Wolferstan, L. R. 18 Eq. 18. 5 Tb. & 2 Sp. 46. * 2 Perry on Trusts, 2 476. A trustee, however, may safely do that without a decree of the Court, which the Court, on a case made, would order or decree him to do, ibid. TRUSTEES, EXECUTORS, ETC. 203 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 ordering the deeds or the securities to be deposited in Court.’ 395. XXIII. If trustees are guilty of gross yxqy negligence, mismanagement, or misconduct, Eavity will or if, from any cause, there is a failure of [musteesand trustees qualified and willing to act, new °™™ trustees will be substituted by the Court.(a)? And if a trustee becomes insolvent, it is a good ground for his removal.’ 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, irreparable mischief might happen to the trust property or the cestui que trust. 396. XXIV. In the case of a charitable trust, . x,y 17. it seems that the Court will direct a power Son of to appoint new trustees prospectively to be @2Peint inserted in a deed appointing new trustees; ** but not in the case of a private trust, unless it is authorized by the instrument constituting the trust.’ 397. XXV. Before the stat. 1 Vict. c. 26, ss. yxy. 30, 31, trustees took the inheritance, in those Wheretres- cases where it was necessary, for the purpose ‘"? ** 1 2 Sp. 46. 2 St. 2 1287, 1289. 5 Harris v. Harris (No. 1), 29 Beav. 107. 4 St. 2 1288; 2 Sp. 943. 5 2 Sp. 37. (a) See stat. 23 and 24 Vict. c. 145, ss. 27, 28. 204 TRUSTEES, EXECUTORS, ETC. of a trust created by will, that they should take the inheritance. And in the case of a devise to trustees for sale, though only a part of the inheritance was re- quired to be sold, yet the Court considered them as trustees of the whole inheritance.’ 398. eer: XXVI. When all the duties of a trustee aie are at an end, and this is clearly shown to ctegve Dim, and he has no notice of any disposition te 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 proceed- ings occasioned by his refusal. 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 cestui que trust, or in seeking the directions and in- demnity of the Court.2 399. XXVII. A trustee is entitled to have his XXVIL : Rendering accounts examined, and to have a settlement and settle- és mentof of them. He is also bound to render proper accounts. a 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 the other hand, if the cestui que trust is dissatisfied with the accounts, he ought to require to have the accounts taken. He is bound to adopt one of these two courses; he is nots 1 2 Sp. 295. 2 2 Sp. 48.* * 1 Perry on Trusts, 3 922 et seq. TRUSTEES, EXECUTORS, ETC. 205 at liberty to keep proceedings hanging for an indefinite time over the head of the trustee. 400. A trustee or executor is bound to render paty of every necessary information, and, if he have "pdcring | not all the necessary information, he isbound ™*"°™ to seek for it, and, if practicable, to obtain it. (a)? 401. Executors must be allowed a reasonable p,caxing time for breaking up a testator’s domestic es- {PS tablishment, and discharging his servants.’ "*™°"* 402. 1 2 Sp. 46, 47, 921; Kemp v. Burn, 4 Giff. 348.* ® 2 Sp. 921; Talbot v. Marshfield, L. R. 3 Ch. Ap. 622. 3 Field v. Peckett (No. 3), 29 Beav. 576. (a) On the subject of Trusts and Trustees, see stat. 1 Will. IV, v. 60; 18 and 14 Vict. c. 60; 15 and 16 Vict. c.55 ; 10 and 11 Vict. c. 96; 12 and 18 Vict. v.74; 22 and 23 Vict. c. 35; and 23 and 24 Vict. c. 38, 8. 145. * 2 Perry on Trusts, 3 900. 206 SPECIFIC PERFORMANCE. CHAPTER VIII. OF THE SPECIFIC PERFORMANCE OF AGREEMENTS AND DUTIES NOT ARISING FROM TRUSTS. I. By the Common Law, if a party who ought to perform a contract or covenant, fails to do so, no redress could be had, except in damages.' 403. wAspecite 11+ In Equity a specific performance of a perform” contract, covenant, or duty, will be decreed, ance will he frac” where damages would not afford an exact Junnges compensation for the non-performance there- pard act. of, whatever may be the form or character of pensation. the instrument containing such contract or covenant, or giving rise to such duty. And hence it will be decreed in all cases of contracts for the pur- chase of land; because the local character, vicinage, soil, easements, or accommodations 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 same 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 agreement to do the act ‘St. 2 714. I. Remedy at Law. SPECIFIC PERFORMANCE. 207 at all events, of which it will enforce a specific per- formance.’ 404. III. But Equity will not interfere where 141 wot damages at Law would amount to a com- Where they would afford plete compensation. Hence specific perform- *complete ance of articles of apprenticeship would not ton. be decreed.’ 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 mar- ket price of the stock or goods, are generally equiva- lent, 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. Buta performance of a contract respecting stock, goods, or personal property, will be enforced, where damages at Law could not afford a complete compensation.’ 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 1 St. 2 715, 717, 718, 739-742, 746, 751, 783-6, 850, 1425. 2 Webb v. England, 29 Beav. 44; Crampton v. Varna Railway Co., L. R. 7 Ch. Ap. 562; Wilson ». Northampton, ete., Railway Co., L. BR. 9 Ch. Ap. 279. 3 St. 2 717-720, 746; Falcke v. Gray, 4 Drew. 651; Cuddee v. Rutter, 1 Lead. Cas. Eq., 2d ed. 640, et seg. ; Dowling v. Betjemann, 2 Johns. & H. 544,* * In Falckev. Gray, the articles sold were two china jars, which were so nearly unique that it was impossible to say what price they would bear in the market; this seems to be the ground of distinction in such cases. 208 SPECIFIC PERFORMANCE. compensation to him, Equity will entertain the like suit at the instance of the other party, though the re- lief sought by him is merely in the nature of a com- pensation in damages or value; for, in all cases of this sort, the Court acts on the ground that the remedy ought to be mutual." The same rules apply to agree- ments respecting personal acts, for the non-performance of which an exact compensation may sometimes be made by way of damages, while in others it cannot.’ 405. : : IV. At Law, contracts and covenants to contracts” sell, convey, or transfer land or other prop- and cove- . . nantsare erty, are considered simply as personal and reel as executory contracts and covenants, and not Eadiexcois attaching to the property in any manner =e as a present or future charge or otherwise.’ cane But in Equity, from the time of a contract pafoomea for the sale of land, the vendor, and his _ip regard t0 heirs, and any one claiming as a subsequent quences. purchaser under him, become as to the land, trustees for the purchaser and his heirs, devisees, or vendees; and the purchaser and his personal repre- sentatives become, as to the money, trustees for the vendor and his personal representatives.* 406. A vendor of land may receive the balance of the purchase-money, and convey the estate to the pur- 1 St. 3 723. 2 St. @ 722-9, 3 St. 3 714, 790. * St. 2 788, 789, 790; except as far as the case is altered by the stat. 17 and 18 Vict. c. 118, 30 and 31 Vict. c. 59, and 40 and 41 Vict. v. 34, infra, par. 481, 485, 486. SPECIFIC PERFORMANCE. 209 chaser, without regard to the receipt of a mere notice that the purchaser had agreed to assign the contract.’ 407. Every payment of purchase-money to the vendor transfers, in Equity, to the purchaser, a corresponding proportion of the estate. And hence, where the pur- chase-money is to be paid by instalments, and the pur- chaser 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 mortgagee of the vendor who simply gives him notice of his mort- gage, without attempting to prevent the completion of the contract or the payment of the instalments.? 408. In like manner, land directed, articled, ,,.4 ; articled or conveyed, or devised to be sold and turned 4rticled » into money, is reputed as money ; and money Pe, 014. and directed, articled, assigned, or bequeathed to #oitiahoa be invested in land, has in Equity many of 020i"; the qualities of real estate, and in particular ""* is descendible and devisable as such.* 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 acts or ™ McCreight v. Foster, L. R. 5 Ch. Ap. 604; s.c. nom. Shaw v. Foster, 5 H. L. 321. 2 Rose v. Watson, 10 H. L. Cas. 672. 2 St. @ 790; Fletcher v. Ashburner, 1 Lead. Cas. Eq., 2d ed. 659 et seg.; Dixie v. Wright, 32 Beav. 662.* ® Craig v. Leslie, 3 Wheat. 563, 577; Taylor v. Berham, 2 How. Sup. Ct. 234. 18 210 SPECIFIC PERFORMANCE, declarations clearly indicating a determination to that effect, as by an application to a Court of Equity.’ But where it has vested in two or more persons, one cannot elect without the others or other.’ 409. In general, Courts of Equity do not incline 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.* 410. V. Specific V. Where the specific execution of a con- perform- —_ tract, respecting lands would have been de- ance de- tween wer. creed between the parties, it will be decreed ingunder” between all parties claiming under them in the parties. rivity of estate, representation, or title, un- less other controlling equities have intervened. Hence, if the vendor, before completion, dies intestate as to his realty, his legal personal representative may maintain a suit against his heir and the purchaser for Purchaser’s . 5 a heirmay @ specific performance ;> where the heir of require the . . . money to be the purchaser came into Equity for a specific paid out o : é i 5 the per- performance, he might in general require the sonal estate. . purchase-money to be paid out of the per- sonal estate of the purchaser in the hands of his per- sonal representatives.® 411. 1 St. 2 793, 1213. ? Holloway v. Radcliffe, 23 Beav. 163. 5 St. @ 1214, 12144, 4 St. 3 788. 5 Hoddel v. Pugh, 33 Beav. 489. And, before the stat. 17 and 18 Vict. c. 113, 30 and 31 Vict. c. 69, and 40 and 41 Viet. ec. 34, infra, par. 481, 485, 486. § St. a 790. SPECIFIC PERFORMANCE. 211 VI. If the terms of an agreement, either through negligence or otherwise, have not sunpiince been complied with in particulars which do Srigise"® . : ti not pertain to the essence of the contract, or non-essen- if there has been a slight misdescription of ame. the property, Courts of Equity will never- salesererip- theless decree a specific performance in favor ros of the party chargeable with non-compliance or mis- description, if compensation can be made for an injury that may have been occasioned by the non-compliance or for the misdescription of the property. 412. At Law, time was of the essence of the contract. But in Equity it is held to be of the essence of the con- tract only in cases of direct 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 immedi- ate 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 ecclesi- astical corporation. And even where time is of the essence of the contract, it may be waived by proceed- ing 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.’ 413. 1 See St. 3 747, 748, 771, 775-777, and notes; Seton v. Slade, 2 Lead. Cas. Eq., 2d ed. 429, et seg. 2 Parkins v. Thorold, 16 Beav. 65; Hudson v. Temple, 29 Beav. 536; Wells ». Maxwell (No. 1), 32 Beav. 408; Lord Ranelagh v. 212 SPECIFIC PERFORMANCE. stipulation BY the Judicature Act, 1873, s. 25 (7), not of the «Stipulations in contracts, as to time or contracts. otherwise, which would not before the pass- ing of this Act have been deemed to be or to have be- come of the essence of such contracts in a Court of Equity, shall receive in all Courts the same construc- tion and effect as they would have heretofore received in Equity.” 414. vit.wast 21. Where the vendor is incapable of of title, ora making a complete title to all the property substantial Se aoe sold, or there has been a substantial misde- want of want of , scription in important particulars, or the compliange. terms have not been reasonably complied ai with on the part of the vendor, Courts of Equity will generally allow the purchaser to proceed with the purchase, pro tanto; that is, to have the con- tract. specifically performed as far as the vendor can perform it, and to have an abatement made out of the purchase-money or a compensation. This right to an abatement may be excluded by express condition, even for a deficiency of nearly half, if the purchaser seeks specific performance, though the Court would not en- force specific performance against him.” But where Melton, 2 Dr. & Sm. 278; Sugd. V. & P., 14th ed. 257, et seg. ; St. 2.776; 2 Lead. Cas. Eq., 2d ed. 442, et seg.; Tilley v. Thomas, L. BR. 3 Ch. Ap. 61; Cowles v. Gale, L. R. 7 Ch. Ap. 12.* 1 36 and 37 Vict. c. 66. 2 St. 32.779; Sugd. V. & P., 14th ed. 305; 2 Lead. Cas. in Eq., 3d ed. 498, 499; Hughes v. Jones, 3 D. F. & J. 307, 815; Cor- * Brashier v. Gratz, 6 Whéat. 528; Taylor v. Longworth, 14 Peters, 173. SPECIFIC PERFORMANCE. 213 the land is less than the quantity stated, by a very large proportion, the course is to allow the purchaser to rescind the contract.’ 415. If a person professes to be the owner of the fee simple, and undertakes to sell it, but he is not able to do so, and the purchaser Was not aware of his inability, he must convey as much as he can, if the purchaser desires it, and submit to an abatement of the purchase- money. But where husband and wife agree to sell what the purchaser is aware is the wife’s estate in fee, and the wife afterwards refuses to convey, the pur- chaser cannot compel the husband to convey his inter- est, and accept an abated price.” 416. VIII. Where a man has performed a a VIII. Acci- valuable part of an agreement, but is inca- dental inca- me : acity 0 pable of performing the remainder, by a sub- performing . . - the remain- sequent accident, without any default on his der of an part, Courts of Equity will enforce the agree- pao ment in his favor (allowing such compensation as may be just) in case he i$ not in statu quo as to the part which he has performed, but not otherwise.* 417. IX. In some cases, a performance of an agreement will be decreed, not according to mnanee sub the letter of the contract, if that would be ” dingly v. Cheeseborough, 4 D. F. & J. 379; Hooper v. Smart, L. R. 18 Eq. 683.* 1 Earl of Durham »v. Sir F. Legard, 34 Beay. 611; Aberaman Ironworks v. Wickens, L. R. 4 Ch. Ap. 101. 2 Castle v. Wilkinson, L. R. 5 Ch. Ap. 534. 3 St. 2.772, 796, 797. * Waiters v. Travis, 9 Johns. 465. 214 SPECIFIC PERFORMANCE. unconscientious, but according to the change of circum- stances.’ 418. se: deeews X. Of course, an agreement entered into ment not by parties incompetent to contract, such as enforced, pivic ° infants and femes covert, will not be enforced competent against them. Nr will it be enforced in to contract. favor of such parties; because the remedy ought to be mutual? 419. ee XI. Nor will Courts of Equity enforce a terms are contract, although it is written, if the terms notcer@™ are not certain and definite in themselves; ae 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 admission of such evidence would let in all the mischiefs intended to be guarded against by the Statute of Frauds. 420. eaaaae XII. Courts of Equity will enforce an foreing vol- obligation imposed by will, without any con- untary fs - : cS . agen: sideration. 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 causd), or imperfect assignments of debts or other property, or executo g property, Ty trusts raised by a covenant or agreement, or defective or imperfect settlements or conveyances, which are not founded in a valuable consideration, even though the . St. 3.775. 2 St. 2 787, 851, note; Vansittart v. Vansittart, 4 K. & J. 62. 3 St. 3 767; Taylor v. Portington, 7 D.M. & G. 328. 4 2 Sp. 255. : SPECIFIC PERFORMANCE. 215 transaction be founded on a meritorious consideration, 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 that which 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 effect to the title, Equity will enforce it through- out against the party making or creating it, and his representatives, although it be merely voluntary.! And simply to sign a declaration of trust in favor of the donee, is an effectual mode éf effecting a voluntary transfer. And if a person directs by letter, though not for valuable consideration, 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.? 421. 1 St. ¢ 433, 787, 793, a, b, 973; 1 Sp. 507; 2 Sp. 52, 57, n (e), 129, 254, 255, 285, 889-893, 898, 899, 907, 909-915; Fletcher ». Fletcher, 4 Hare, 67; Voyle v. Hughes, 2 Sm. & G. 18; Bridge v. Bridge, 16 Beav. 315; Weale v. Ollive, 17 Beav. 252; Scales v. Maude, 6 D. M. & G. 43; Dening v. Ware, 22 Beay. 184; Tatham v. Vernon, 29 Beav. 604; Beech v. Keep, 18 Beay. 285; Donald- son v. Donaldson, Kay, 711; Pearson v. Amicable Assurance Office, 27 Beav. 229; Woodford v. Charnley, 28 Beav. 95; Dilrow v. Bone, 3 Gif. 5388; Airey v. Hall, 3 Sm. & G. 315; Parnell v. Hingston, 3 Sm. & G. 337; Milroy v. Lord, 4 D. F. & J. 264.* ~? Kekewich v. Manning, 1D. M. & G. 176; Grant v. Grant, 34 Beav. 623; Gilbert v. Overton, 2 Hem. & M. 110; Jones v. Lock, L. R. 1 Ch. Ap. 25; Richardson v. Richardson, L. R. 3 Eq. 686; Lambe v. Orton, 1 Drew. & Sm, 125. * See also Otis ». Beckwith, 49 Ill. 121; Stone ». Hackett, 12 Gray, 227; Sherwood v. Andrews, 2 Allen, 79. 216 SPECIFIC PERFORMANCE. 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 benefiting such third person, though such third person, as regards each of the contracting parties, may be a volunteer ;' as where a person who has contributed a valuable consider- ation to a settlement, has exacted, as part of the contract, 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 intended limitation to the issue of the marriage failing to take effect.2 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 stipulation.’ 422. 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 consideration on the faith of which a marriage is con- tracted and a settlement executed.* 423. xmwo - SLI. Equity will not interfere, (1.) Where, formance im ordinary cases, the contract has become where it wouldbe weapable of being substantially performed Se on the part of the person seeking relief,® or inequitable. has been violated by him. (2.) If the 1 2 Sp. 286.* 2 2 Sp. 281. 3 See 2 Sp. 280, 281. * Payne v. Mortimer, 1 Gif. 118.+ 5 St. 3 736. ® Telegraph, Despatch, etc., Co. v. McLean, L. R.8 Ch. Ap. 658. * Gale v. Gale, L. R. Ch. D. 144. } St. Eg. Jur. 3 4324. SPECIFIC PERFORMANCE. 217 plaintiff has been guilty of any negligence affecting the essence of the contract ;' or if specific performance is sought by a purchaser, after he has permitted a long time to elapse, without evincing a fixed intention to carry his 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 agree- ment, especially if circumstances are altered.’ (3.) If specific performance is sought by the vendor, and 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 misrepresen- tation 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 description ot 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 performance against him.’ Where the conditions of sale of a public-house state that it is in the occupation of a tenant, and a brewer agrees to buy it for the sale of his beer, he cannot be compelled to complete his pur- 1 St. 2771; 2 Lead. Cas. Eq., 2d ed. 442, et seg. 2 Sugd. Concise View, 181. 3 Leyland v. Illingworth, 2 D. F. & J. 248; Higgins v. Samels, 2 Johns. & H. 460; Swaisland v. Dearsley, 29 Beav. 430; Cox v. Coventon, 31 Beav. 378; Dimmock v. Hallett, L. R. 2 Ch. Ap. 21; St. 3778; Denny v. Hancock, L. R. 6 Ch. Ap. 1. 19 218 SPECIFIC PERFORMANCE. chase if he finds that it is under lease to another brewer for aterm, of which some years are unexpired.’ (5.) If the title is doubtful, in the opinion of the Court, 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 indemnifying the purchaser, if its own opinion should turn out not to be well founded.? But if the Court is clearly of opinion that the title is good, it will not be deterred from enforcing specific per- formance, by the fact that one of the conveyancing council of the Court, or a judge of the Court below, considered the title doubtful.? (6.) If the character and condition of the property have been so altered that the terms of the contract are no longer applicable to the existing state of things.* (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.® (8.) If the estate bought is of a different tenure ;* as if it was described as free- 1 Caballero v. Henty, L. R. 9 Ch. Ap. 447. 2 Pyrke v. Waddingham, 10 Hare, 7, 10; Sykes ». Sheard, 2 D. J. & 8.6; Collier » McBean, L. R. 1 Ch.. Ap. 81; Mullings v. Trinder, L. R. 10 Eq. 449.* 3 Hamilton v. Buckmaster, L. R. 3 Eq. 323; Beioley v. Carter, L. B.4 Ch. Ap. 230; Radford ». Willis, L. R. 7 Ch. Ap. 7; Bell ». Holtby, L. R. 15 Eq. 178. * St. 750. * Webster v. Cecil, 30 Beav. 62.+ § 2 Lead. Cas. Eq., 2d ed. 453, et seq. * St. Eq. Jur. @ 779a; Richmond ». Gray, 3 Allen, 25. } Park v. Johnson, 4 Allen, 259. SPECIFIC PERFORMANCE. 219 hold when in fact it is copyhold ;' or copyhold enfran- chised under an Act of Parliament reserving to the lord his mineral rights ;? or if it was described as free- hold when leasehold,’ or as copyhold when freehold.‘ (9.) If material terms have been omitted in the agree- ment, or there has been a variation of it by parol.® (10.) If the contract is founded in imposition, surprise, misrepresentation, undue influence, or fraud of any kind ; as where property was put up for sale to the highest bidder without mentioning any reserve, and the auctioneer and an agent for the vendor both bid against each other,® or where a purchaser, who is better informed as to the value of the property than the vendor, hurries the vendor into an agreement, without giving him an opportunity of inquiry or advice.’ (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 unrea- sonable.® (12.) In the case of ene entire agreement, the Court cannot decree specific performance or part of it, if it is unable to decree specific performance of the other part.? But the principle that if the thing must be performed at all, it must be performed in toto, does 1 Ayles v. Cox, 16 Beav. 23. 2 Upperton v. Nickolson, L. R. 6 Ch. Ap. 436, 444. 3 Sugd. Concise View, 212. « Ayles w. Cox, 16 Beay. 23. 5 St. 3770. 6 Mortimer v. Bell, L. R. 1 Ch. Ap. 10; 30 and 31 Vict. v. 48. 7 Walters v. Morgan, 3 D. F. & J. 718. ® Sugd. Concise View, 189. 9 Stocker v. Wedderburn, 3 K. & J. 393, 407; Ogden v. Fossick, 4D. F. & J. 426. 220 SPECIFIC PERFORMANCE. not apply to an agreement which contemplated succes- sive performances of different parts independently of one another.’ And where an estate is agreed to be purchased, and certain other things taken at a valuation which are not at all an essential part of the purchase, and the vendor refuses to appoint a valuer, the Court will compel him to convey the estate without them.’ (13.) The Court will not force any one to take a title, which it is evident will involve the taker in immedi- ate litigation, unless he knew this when he bought the property. (14.) The Court will not enforce specific performance, if, on any other account, it would be morally wrong or inequitable to do so.* 424. And where there is a sufficient ground why specific performance should not be enforced against a purchaser, the Court will not enforce it, though something else ’ Wilkinson v. Clements, L. R. 8 Ch. Ap. 96, 110. ° Richardson ». Smith, L. R. 5 Ch. Ap. 648. 5 Pegler v. White, 33 Beav. 403. 4 St. @ 750, 750a, 751 a, 769, 787; 2 Lead. Cas. Eq., 2d ed. 453, . et seg.; Directors of the Shrewsbury and Birmingham Rail. Co. ». Directors of the North-western Rail Co., 6 H. L. Cas. 113; Falke ». Gray, 4 Drew. 651; Ormes v. Beadel, 2 Gif. 166; Tildesley v. Clarkson, 30 Beav. 419; Denne v. Light, 8 D. M. & G. 774; Reeves v. Greenwich Tanning Co., 2 Hem. & M. 54; W. vw B—.,, and B o. W , 32 Beav. 574; Vivers v. Taite, 1 Moo. P. C. (N.8.), 516; Cochrane v. Willis, 34 Beav. 359; L. R. 1 Ch. Ap. 58; Baskcomb v. Beckwith, L. R. 8 Eq. 100.* * Taylor v. Longworth, 14 Peters, 178, 174; Bank of Alexan- dria v. Lyon, 1 Peters, 376, 382; Cathcart v. Robinson, 5 Peters, 264, ‘ SPECIFIC PERFORMANCE. 221 than that may be his actual motive for resisting spe- cific performance. 425, The Court will not refuse to decree the specific per- formance of an agreement on the ground that one of the contracting parties has mistaken its clear legal effect.’ 426. Notwithstanding a party may have taken possession before the fulfilment of the promises of the opposite party to do necessary work, he may set up the non- fulfilment of such promises as a defence to a specific per- formance of the agreement to take the property.? 427. XIV. In like manner, Equity will not enforce assignments, contracts, or covenants will Equity which are against public policy. 428. And assign ments, con- hence, tracts, or covenants, 1, An officer in the army or navy, or other against public officer of the government, cannot assign his policy; asin - i the case of, future accruing pay, or other remuneration te cee . fase hin 1 1 ments b connected with the right of the government ments by, to future services from him; because it is ‘he sovern- ment. contrary to the honor, dignity, and interest of the State that its servants should be in danger of being reduced to poverty by anticipating those resources which were intended to place them in a suitable con- dition of respectability, comfort, and efficiency.“ But 1 Denny v. Hancock, L. R. 6 Ch. Ap. 1. 2 Powell v, Smith, L. R. 14 Eq. 85. 8 Lamare v. Dixon, L. R. 6 H. L. 414. 4 See St. 2 769, 1040 c-1040f, and notes; 2 Sp. 867.* * The assignment of claims against the United States in certain cases is prohibited by statute. See Wanless v. The United States, 6 Ct. of Claims, 123; Bates’s Case, 4 Ct. of Claims, 569. 222 SPECIFIC PERFORMANCE. a man may assign a pension given him entirely for past services; and prize-money may be assigned.’ And an assignment of a pension granted by the late East India Company is valid.” And it has been held that the pension payable to a former officer of the East India Company out of the revenues of India since the Transfer Act, 21 and 22 Vict. c. 106, may be assigned.’ 429. 9. Andthose 2: OD principles of public policy, Equity involving + H s . . thanpedy, Will not uphold assignments which involve main- lenance, or Champerty, or maintenance, or buying of pre- preter tended titles. Champerty (campi partitio) aa is properly a bargain between a plaintiff or defendant in a cause, and another person who has no interest in the subject in dispute (campum partire), to divide the land or other property sued for between them, if they prevail, in consideration of the other per- son carrying on the suit at his own expense. Main- tenance, of which champerty is a species, is properly an officious intermeddling in a suit which in no way belongs to one, by maintaining or assisting either party with money or otherwise, to prosecute or defend it. Each of these is punishable, both at the Common Law and by statute, as tending to keep alive strife and con- tention, and to pervert the remedial process of the Law 1 2 Sp. 867. : ° Heald v. Hay, 3 Gif. 467. 3 Carew v. Cooper, 4 Gif. 619. / * St. 4 1049; see Reynell v. Sprye, 1 D. M. & G. 660.* * Merritt o. Lambert, 10 Paige, 352; Lathrop v. Amherst Bank, 9 Mete. 489. SPECIFIC PERFORMANCE. 223 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 ancestors, 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 be- fore the sale." And Courts of Equity enforce all the principles of Law upon these points. Exceptions 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? 430. 3. Upon the same principle of not giving , Ne any encouragement to litigation, especially assign- ments of when undertaken as a speculation, Equity, mere naked right to will not enforce the assignment of a mere litigate naked right to litigate, that is, a right which, from its very nature, is incapable of conferring any benefit ex- cept through the medinm of a suit; such as a mere naked right to set aside a conveyance for fraud.’ The right to complain of a fraud is not a marketable com- modity ; and if it appears that an agreement for pur- chase has been entered into for the purpose of acquir- ing such a right, the purchaser cannot call upon the 1 St. 2 1048, and note, and 10484; 2 Sp. 869; Hilton v. Woods, L. R. 4 Eq. 482. 2 St. 2 1049; 2 Sp. 870, 871. 3 St. 31040g, and note; 2 Sp. 868, 869, 872. See Hill v. Boyle, _L. B-4 Eq. 260.* * Milwaukee, etc., R. R. Co. v. Same, 20 Wise. 174. | 224 SPECIFIC PERFORMANCE. Court for a specific performance of the agreement.’ 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 ad- vance beyond the mere support of the 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 proceedings for obtaining the benefit of the contract.’ And without entering into any cove- nants for the purpose, such sub-purchaser is obliged to indemnify the original purchaser from all the acts which he must do for the sub-purchaser’s benefit. And so, a legatee may assign his legacy, and a creditor may assign his interest in a debt, although he may have commenced a suit to recover it? In these cases there is an actual interest in the assignor, independently of litigation ; and although it may require continued liti- 1 De Hoghton v. Money, L. R. 2 Ch. Ap. 164. 2 St. 3 1050-4; 2 Sp. 863, 868-871 ; Myers v. United Guarantee Company, 7 D. M. & G. 112; Tyson v. Jackson, 30 Beav. 384.* * But see St. Eq. Jur. 31057¢. Danforth v. Streeter, 28 Vt. 490. “The bona fide purchaser of a bond or note not negotiable, or other chose in action, which is of the nature of a debt, which is repre- sented to be due, and which the purchaser believes to be due, may sue upon the same, and not incur censure from the Law, and all con- tracts founded upon any such consideration are perfectly valid.” Id. SPECIFIC PERFORMANCE. 225 gation to enforce it, yet the parties may possibly adjust the matter without further proceedings; whereas, in the case first mentioned, there is no interest in the as- signor, or none but what may result from oversetting an interest in the other party. 431. - 4, It is the rule of the Common Law that 4 common no possibility, right, title, or thing in action, ee can be granted to third persons, except in the Sfnmstty. case of the Sovereign, to whom and by whom things in 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, until the Judicature Act, 1873, this still continued to be the general rule, except in the case of negotiable instru- ments and some few other securities, or where a debtor assented to the transfer of a debt, so as to enable the assignee to maintain a direct action against him on the implied promise which resulted from such assent; and except in the case of possibilities coupled with an in- terest, and contingent interests in real estate, which might be granted and assigned at Law, in consequence of the stat. 8 and 9 Vict. c. 106;' and except in the case of assignees of policies of marine or life assurance, who might sue in their own names in consequence of the statute 30 and 31 Vict. c. 144, and 31 and 32 Vict. c. 86. And in the case of assignments of bond or other debts which are an exception to the above- mentioned rule, it was necessary to sue in the name of the original creditor; the person to whom it is trans- 1 St. 2 1039; 2 Sp. 850, 851, 855. 226 SPECIFIC PERFORMANCE. ferred being regarded rather as an attorney than as an assignee.’ 432. ; , Even before the late Statute of Wills, a HE in devise of a possibility coupled with an inter- pe est, or of a contingent interest, whether in real or personal estate, was good at Law.’ 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. And Courts of Equity gave effect to assignments for valuable consid- eration, of trusts and possibilities of trusts, and con- tingent interests, whether in real or personal estate, contingent gains, such as freight to be earned or a cargo to be procured, and even mere expectancies of heirs to their ancestor’s estate, and choses in action. For such assignments of a chose in action are consid- ered in Equity as amounting to an agreement to per- mit 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 payment 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 ac- tion.“ And such assignments of contingent interests, possibilities, and expectancies, are regarded in Equity as amounting to a contract to assign, when the interest becomes vested ; and when the interest does so become 1 St. 2 1056. - 2 2 Sp. 854. 3 9 Sp. 254. + See St. 2 1040, 1040c, 1044, 1055, 1057; 2 Sp. 852, 865, 866, 896. SPECIFIC PERFORMANCE. 227 vested, the claim of the assignee is enforced, not indeed as a trust, but as a right under a contract... 433. _ By the Judicature Act, 1873 (36 and 37 Aaa Vict. Cs 66), 8. 25 (6), i Any absolute assign- aad tees ment by writing under the hand of the as- ™ 24. signor (not purporting to be by way of charge only), of any debt or other legal chose in action, of which ex- press notice in writing shall have been given to the debtor, trustee, or other person from whom the assignor would have been entitled to receive or claim such debt or chose in action, shall be, and be deemed to have been effectual in law (subject to all equities which would have been entitled to priority over the right of the assignee if this Act had not passed), to pass and transfer the legal right to such debt or chose in action from the date of such notice, and all legal and other remedies for the same, and the power to give a good discharge for the same, without the concurrence of the assignor: Provided always, that if the debtor, trustee, or other person liable in respect of such debt or chose in action shall have had notice that such assignment is disputed by the assignor or any one claiming under. him, or of any other opposing or conflicting claims to such debt or chose in action, he shall be entitled, if he think fit, to call upon the several persons making claim thereto to interplead concerning the sanfe, or he may if he think fit pay the same into the High Court of Jus- tice under and in conformity with the provisions of the Acts for the relief of trustees.” 434. 1 St. 3 1040 b. 228 SPECIFIC PERFORMANCE. Het As a general rule, anything written, said, amour? or done, in pursuance of an agreement and mene for valuable consideration, or in considera- 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.’ So that an agreement between a debtor and a creditor, that the debt shall be paid 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 irrevocable equitable assignment of such money or funds, or a sufficient part thereof, if made in consequence of a direct agreement.’ And if such money or fund is handed over to the assignor by the person so ordered to pay, he will be made to pay it over again to the assignee.’ But where a railway company was in- 1 2 Sp. 855, 860, 861, 907; Chowne v. Baylis, 31 Beav. 351.* 2 Row v. Dawson, 1 Ves. Sen. 331; Ex parte South, 3 Swans. 392; Lett v. Morris, 4 Sim. 607; Burn v. Carvalho, 4 My. & Cr. 690; L’Estrange v. L’ Estrange, 13 Beav. 281; Ex parte Steward, 2 M. D. & G. 265; Rodick ». Gandell, 1 D. M. & G. 777; Diplock v. Hammond, 2 Sm. & Gif. 141; 2 W. R. 287; Watson v. Duke of Wellington, 1 Russ. & My. 602; Malcolm v. Scott, 3 Hare, 39; 2 Sp. 855, 860, 861, 907; Coote Mortg., 3d ed. 234.+ 3 Jones v. Farrell, 1 D. & J. 208.f * St. Eq. Jur. 2 1047. + See also Mandeville v. Welch, 5 Wheat. 277, 286; Tiernan v. Jackson, 5 Peters, 98; St. Eq. Jur. 3 1044, et seg. } Brashear v. West, 7 Peters, 608; Judson v. Corcoran, 17 How. Sup. Ct. 614. SPECIFIC PERFORMANCE. 229 debted 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. And where a consignment of property is made by the owner, not in consequence of any obliga- tion or contract express or implied, but of his own motion, with orders to pay over 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 arrangement made by the debtor himself for payment of a creditor out of a par- ticular fund, though communicated to the creditor, ab- solutely binding so that it cannot be revoked, that is, in the absence of special circumstances (as forbearance and the like on the part of the creditor), so as to raise a case of contract or of fraud.’ .435. When an assignment is made, everything wrt must must be done towards the obtaining of quasi Dygpre io. possession possession that the subject admits of, in order [haeran to prevent payment to the assignor himself, arene and in order to acquire by assignment a complete title to a chose in action, as against trustees in bankruptcy or insolvency, or as against subsequent purchasers or incumbrancers, who might otherwise be deceived by apparent possession and ownership remaining in a per- 1 Rodick v. Gandell, 1 D. M. & G. 763. 2 2 Sp. 862. 230 SPECIFIC PERFORMANCE. son who in fact is not the owner, or, in case of volun- tary assignments, 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.’ Notice of the assignment of a policy of insurance must be given to the insurance office.? It is not necessary that the notice should be given in the lifetime of the assured; the principle is that it is sufficient if the notice is given to the party having the fund, while it remains in his pos- session.’ In all assignments of equitable interests 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. Where stock standing in the 1 St. 2 1047; 2 Sp. 855-7; Ryall v. Rowles, 2 Lead. Cas. Eq., 2d ed. 615, e¢ seq.; and remarks of Turner, L. J., in Ex parte Boulton, 1 D. & J. 178, 179; Holroyd v. Marshall, 2 Giff. 382; 2 D.F. & J. 596; 10 H. L. Cas. 191; Stansfeld v. Cubitt, 2D. & J. 222; Warriner v. Rogers, L. R. 16 Eq. 340.* 2 Coote Mortg., 3d ed. 231; Thompson v. Tompkins, 2 Dr. & Sm. 8. 3 In re Russell’s Policy Trusts, L. R.15 Eq. 26. * Coote Mortg., 3d ed. 231; Browne v. Savage, 4 Drew. 635; Willes v. Greenhill (No. 1, 2), 29 Beav. 376, 387; 4 DF. & J. 147 ; Bridge v. Beadon, L. R. 3 Eq. 664; Lloyd v. Banks, L. R. 4 Eq. 222; In re Brown’s Trusts, L. R. 5 Eq. 88.+ * Loomis v. Loomis, 26 Vt. 552. But see also Kennedy v. Parke, 2 C. E. Green, 415. In cases of assignment of a debt where the assignor has collateral security therefor, the assignee will be en- titled to the full benefit of such securities unless it is otherwise agreed between the parties. Story Eq. Jur. 4 1047a. So the guarantee of a previous assignor of a mortgage passes as incident. Craig v. Parkes, 40 N. Y. 181. ¢ 1 Perry on Trusts, 2 438. SPECIFIC PERFORMANCE. 231 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 priority... In the case of an assignment of an interest in a fund in Court, the assignee should obtain a stop order,’ unless the fund constitutes part of a testator’s estate; in which case notice to the executor will be sufficient without a stop order.* 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 payable.* In the case of an assignment of freight, the assignee should give notice to the charterers of the assignment.’ In the case of shares in a company, notice must be given to the company.’ But verbal notice to the directors, in the course of the transaction of the business of the company, is sufficient.’”. It was held that assignees in bankruptey, who neglected to give notice, lost their priority equally with particular assignees.’ But it has 1 2 Sp. 857, 858; Browne v. Savage, 4 Drew. 635. 2 Bartlett v. Bartlett, 1 D. & J. 127; Stuart v. Cockerell, L. R. 8 Eq. 607. ; 3 Thompson v. Tompkins, 2 Dr. & Sm. 8. 4 Day v. Day, 1 D. & J. 144. 5 Brown v. Tanner, L. R. 2 Eq. 806. * Ex parte Boulton, 1 D. & J. 163. 7 Ex parte Agra Bank, L. R. 3 Ch. Ap. 555. 8 In re Barr’s Trust, 4K. & J. 219; Stuart v. Cockerell, L. R. 8 Eq. 607; In re Russell’s Policy Trusts, L. R. 15 Eq. 26. 232 SPECIFIC PERFORMANCE. since been held by Lord Cairns, L. C. (reversing the decision of Lord Romilly, M. R.), that where. the trustee of a fund became acquainted (without notice) of the insolvency of his cestui que trust, and acted on the information, formal notice by a subsequent assignee did not give him priority over the assignee in insolv- ency.’ In order to maintain his priority, it is sufficient if a prior assignee of the proceeds 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 assignee gave notice first.’ 436. When a debt not legally assignable has assignee of been equitably assigned by the creditor to a neve purchaser for valuable consideration, and the debtor has had notice of the assignment, all pay- ments 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 no- tice of his purchase to the debtor, have sold or mort- gaged the debt to some other person; provided that the payments were made by the debtor without notice of the latter sale or mortgage. Nor, in such a case, is it incumbent on him, before making a payment to the 1 Lloyd v. Banks, L. R. 3 Ch. Ap. 488. 2 Buller v. Plunkett, 1 Johns. & H. 441. On the subject of notice in the case of officers, see also Webster v. Webster, 31 Beav. 393 ; Somerset v. Cox, 33 Beav. 634; Addison v. Cox, L. R. 8 Ch. Ap. 76. ? SPECIFIC PERFORMANCE. 233 original purchaser, to require production or proof of the original assignment.! 437. An equitable assignee of a legal term is .,, aiaiant not liable to be sued in Equity by the lessor cauitable for rent, or for damages in respect of breaches 18#! term. of covenants, even though he may have been in pos- session.? 438, i As a general rule, an assignee of a chose _ in action, other than a bill of exchange or a taie bob: note, takes it subject to the same equities as equities of it was liable to in the hands of the assignor.* “"""” And a trustee in insolvency stands on the same footing as a particular assignee.* But the person entitled to such equities may release them, either expressly or by implication arising from his course of conduct.? 439. 5. The Courts of Equity will not enforce , 5.42, the specific performance of an agreement to tant to refer any matter; deeming it against public 27>itration. policy to exclude any person from the appropriate judicial tribunals. Neither will Equity compel arbi- trators to make an award. Nor when they have made 1 Stocks v. Dobson, 4 D. M. & G. 11, 17. * Cox v. Bishop, 8 D. M. & G. 815. 8 2 Sp. 863-5; Mangles v. Dickson, 3 H. L. Cas. 702; Smith v. Parker, 16 Beav. 119; Rolt v. White, 31 Beav. 520; Rodger v. The Comptoir d’Escompte de Paris, L. R. 2 P. C. 393; Henderson v. The Comptoir d’Escompte de Paris, L. R. 5 P. C. 253; Char- tered Bank of India, ete., v. Henderson, L. R. 5 P. C. 501.* 4 In re Atkinson, 2 D. M. & G. 140. 5 In re Northern Assam Tea Company; Ex parte Universal Life Assurance Company,.L. RB. 10 Eq. 458. * 2 Perry on Trusts, @ 831; Cook v. Tullis, 18 Wall. 332. 20 234 SPECIFIC PERFORMANCE. an award, will Equity compel them to disclose the grounds of their judgment.’ 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.” 440. ‘Courts of Equity will enforce a specific performance of an award which is unexceptionable, and in which the parties have acquiesced.’ And where both parties have for a long time acquiesced in or acted upon an ‘award, even though objections might have been orig- inally urged against it, an application to set it aside will not be entertained.* But where an arbitrator has been guilty of unfairness or partiality, relief will be given against his award.* But there must be proof, and not merely suspicion, of this.6 441. On the question of setting aside an award, Courts of Law and Equity have acted on the same principles.’ Any kind of irregularities may be waived by the par- ties.” 442, Where there is an engagement between an architect and his employer that the total outlay shall not exceed acertain amount, and that engagement is concealed from the builder, it annuls a proviso for referring all 1 §t. @ 1457; Duke of Buccleuch v. Metropolitan Board of Works, L. R. 5 H. L. 418. 2 Darbey v. Whitaker, 4 Drew. 134. 3 St. 2 1458, 1459; Blackett v. Bates, 2 Hem. & M. 610. 4 St. 2 1459. 5 Ormes v. Beadel, 2 Gif. 166. ® Moseley v. Simpson, L. R. 16 Eq. 226. 7 Moseley v. Simpson, L. R. 16 Eq. 226. 2 id indie hincinsaataeianneesa aR iS = PO gs ae a HE Ate meme SPECIFIC PERFORMANCE, 935 matters to the arbitration of the architect, so far as the builder is concerned.’ 443. XV. Courts of Equity will enforce a spe- cific performance of a parol contract within sonirarta the Statute of Frauds— 444, ee 1. Where it is fully set forth by the plain- emeee tiff, and it is admitted by the answer of the dete oy defendant, and the defendant does not insist and ad-" 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 yuri pro se introducto.? But if the defendant insists on the Statute as a bar, although he confesses the agreement, Courts of Equity will not en- force it; for that would be contrary to the express pro- visions of the Statute.’ 445. 2. Equity will also enforce such a parol 4 whore agreement where it was intended to be re- {he 74ue duced to writing according to the Statute, Drying mas but that has been prevented by the fraud of °¥ **"* one of the parties.* 446. 3. A parol agreement will also be enforced, Aen whether it is an original agreement or a va- partly per- riation of or substitute for a prior written agreement, where it is a ee ere and it 1 Kimberley'v: Dick, 13 Eq: 1,19. a See eae 2 St. 2 755-7, and notes. 3 St. 4 787. ~~ © §t.°3 768. © 236 SPECIFIC PERFORMANCE. has been partly carried into execution, and it is shown, by satisfactory evidence, to be clear, definite, and un- equivocal in all its terms.’ 447. habs As to the acts which will be deemed a geeurt part performance, they should be such as are ance: clearly and exclusively referable to a com- plete agreement, and must have been done with no other view than to perform such agreement;’ 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.’ 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.‘ Hence, a de- positing, securing, or paying of the purchase-money will not be deemed such a part performance as will take the case out of the Statute; for the money can be 1 St. 2 759, 764, 770, note; Lester v. Foxcroft, 1 Lead. Cas. Eq., 2d ed. 625, et seg. Lady E. Thynne v. Earl of Glengall, 2 H. L. Cas. 158; Nunn »v. Fabian, L. R. 1 Ch. Ap. 35; Coles v. Pilking- ton, L. R. 19 Eq. 174; Williams v. Evans, L. R. 19 Eq. 547.* 2 St. 3.762; Shillibeer v. Jarvis, 8 D. M. & G. 79. 3 St. 2761; Surcome v. Pinniger, 3 D. M. & G. 571. £ St. 3 759. * The rule is well settled that in Equity part performance takes a, parol agreement out of the Statute of Frauds, on the ground that notwithstanding the Statute, it would be a fraud upon the party if the transaction were not completed. See cases cited in Am. note to Lester v. Foxcroft, above. SPECIFIC PERFORMANCE. 237 recovered back.’ Nor will the delivery of an abstract of title, giving directions for conveyances, going to view the estate, fixing upon an appraiser to value stock, making valuations or admeasurements, register- ing conveyances, and acts of the like preliminary or ancillary and equivocal character, be considered as a part performance of the agreement, so as to take it out of the Statute? But if upon a parol agreement the purchaser is admitted into possession, and such pos- session is exclusively referable to the contract, this amounts to a part performance 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 no valid agreement at Law or in Equity.? And so, if a father, in consideration of the marriage of his daughter, makes an oral promise to give his daughter a house, and after the marriage he puts his daughter into possession, and she remains in possession till his death, the possession prevents the Statute of Frauds being set up as a bar to the proof of the parol contract; and it was held that any incumbrance on the house must be paid out of the settlor’s estate.* And so, if upon a parol agreement to grant a lease, the lessee is let into possession, and al- lowed to spend money on the faith of the agreement, the agreement will be enforced.’ But the execution of 1 St. 3 760. 2 St. 762. 3 St. 2.761, 763; Pain v. Coombs, 1 D. & J. 34.* “ Ungley v. Ungley, L. R. 5 Ch. D. (Ap.) 887. 5 Farrall v. Davenport, 3 Gif. 363. * See also Eaton v. Whitaker, 18 Conn. 222; Malins v. Brown, 4 Comst. 403. 238 SPECIFIC PERFORMANCE. 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.’ 448. XVI Paro) © WI. With respect to a parol variation or variations addition, it is to be observed that evidence meee of it was 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 ased 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 agreement shall bind, so as to prevent a defendant from insisting on a parol variation thereof, but only that a parol agreement shall not bind. Exceptions occur, however, to this doctrine of the in- ability 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 performance in the case of an original and independent 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 variation or addition, and the plaintiff seeks a specific performance of the contract, with such variation or addition? 449, ” Phillips v.. Edwards, 33 Beay. 400. 2 See St. ¢ 770, note, and 770a; Woolam v. Hearn, 2 Lead. os Kq., 2d ed. 404; Laver v, Bieler, 32 Beay. 1. soe SPECIFIC PERFORMANCE. 239 XVII. It is the practice of Courts of Equity to enforce strict truth in the dealings aise ene forced. of one man with another; so that if one man makes a déliberate promise to another, with a view to induce that other to do a particular act, which, relying on such promise, he accordingly does, the promissor shall be compelled to make good his wordt. Thus, where a testator induces a person to render his valuable services on the faith of a verbal promise, 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? And when a mar- riage takes place on the faith of a promise to make a settlement, such promise will be enforced.’ 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 specifically 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.* 450. 1M. R. in Loxley v. Heath, 17 Beav. 532; Laver v. Fielder, 32 Beay. 1, 12; Tudor’s Lead. Cas. in Eq. 782; Coverdale v. East- wood, L. R. 15 Eq. 121, 131. ° Loffus v. Maw, 3 Giff. 592. 5 Alt v. Alt, 4 Giff 84; Coverdale v.-Eastwood, L. R.15 Eq. 121. * St. 2 781. , 240 SPECIFIC PERFORMANCE. ae XVIII. Equity will not enforce the spe- Agreement cific performance of an agreement to borrow tu borrow. or lend a sum of money.’ 451. ae XIX. There are many cases-where the tive agree= ~ agreement is merely negative, and the Court eee acts merely by injunction; as in the case of a covenant not to dig gravel. ‘These may more prop- erly be termed cases of decrees for specific adherence to agreements.’ 452. XX. A person cannot evade performance XX. Pay- : ae of his contract by payment of the penalty for the breach of it.*(a) 453. 1 Rogers v. Challis, 27 Beav. 175; Larios v. Bonany y Guerty, L. R. 5 P. C. 346. : 2 See St. 3 721. 8 2 Sp. 254; Peachy v. Duke of Somerset, 2 Lead. Cas., 2d ed. 895, et seg.; Long v. Bowring, 33 Beav. 585.* (a) As to the general jurisdiction of the Courts of Equity in matters of specific performance, see Fry on Specific Performances, and Cuddee v. Rutter, 1 Lead. Cas. Eq., 2d ed. 709. * St. Eq. Jur. 3 7931. TITLE III. Of Adjnstive Equity. CHAPTER I. OF ACCOUNT IN GENERAL. In matters of account standing on equi- surisaiction table claims, Courts of Equity have universal °f Eavity. * jurisdiction." In matters of account growing out of privity of contract, 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 ac- counts, whether receipts or payments, or both, are all on one side, or where there is a single matter on the side of the plaintiff, and mere set-off on the other side, and where, in each case, no complication exists, and no peculiar equitable remedy is sought or required, Courts of Equity will decline taking jurisdiction.’ The relation of principal and agent does not of itself 1 St. 2 454. 2 See St. 3 454, 459, 511, 512; Phillips v. Phillips, 9 Hare, 471; Fluker v. Taylor, 3 Drew. 183, 192; Padwick v. Hurst, 18 Beav. 575; Smith v. Leveaux, 2 D. J. & 8.1; Shepard ». Brown, 4 Gif. 208; Southampton Dock Company v. Southampton Harbor and Pier Board, L. R. 11 Eq. 254; Kimberley». Dick, L. R. 13 Eq. 1. 244 ACCOUNT IN GENERAL. entitle the principal to come into Equity for an account, if the matter can be fairly tried at Law.’ 454. Division er Accounts may be divided into open, stated, accounts. and settled accounts. 455. oui An open account is an account of which accounts. the balance is not struck, or which is not ac- cepted by both parties. 456. Stated ° A stated account is one that is accepted accounts. by both parties. This acceptance need not be expressed, but may be implied from circumstances ; as, if no objection is made to the account within a rea- sonable time. What is a reasonable time, is to be de- termined by the habit of business ; and the usual course is required to be followed, unless there are special cir- cumstances, constituting a ground for variation. Be- tween merchants, acquiescence is presumed, under ordinary circumstances, after a lapse of several posts.’ 457, aes It is ordinarily a good bar to a suit for an aceount is account that the parties have already stated ordinarily a bar toa suit the items and struck the balance; for under account. such circumstances there is an adequate When itis remedy in a Court of Law. But if there is nots any mistake, omission, accident, or fraud, by which the account stated is vitiated, and the bal- ’ Barry v. Stevens, 31 Beav. 258; Smith v. Leverux, 1 Hem. & M. 123; 2D. J. &S.1* * St. 2 526.+ * St. Eq. Jur. 462 a. t See also Wiggins v. Burkham, 10 Wall. 129. ACCOUNT IN GENERAL. 245 ance is incorrectly fixed, a Court of Equity will inter- fere; in some cases, by directing the whole _ account to be opened and taken de novo; in es of others, by allowing it to stand, with liberty sii to the plaintiff to surcharge 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 suit." The showing an omission for yoaning of which credit ought to have been taken, is a ,Sy"b*7e” surcharge; the proving an item to be wrongly © *!¥-” inserted is a falsification. The onus probandi ,,,,,, is always on the party having the liberty to 77d. surcharge and falsify; and the liberty ex- pronto tends to the examination, not only of errors {he ieerty of fact, but also of errors in law.? 458. ee Generally where an account has been ; settled, the rule is only to give liberty to setled surcharge and falsify the account, if errors of ine wrant fact or of law are shown in the account; but where an account has been settled between a trustee and his cestui que trust, under circumstances of fraud or misrep- resentation 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.’ 459. Acquiescence in an account, even for a goqui. considerable time, does not of itself establish °¢*ne* the fact of the account having been settled.* 460. 1 St. 2 623. 2 St. 3 525. 3 St. 3.527; 2 Sp. 942. 4 St. 2 528; see Hunter v. Belcher, 2 D. J. & S. 194, 202. 246 ACCOUNT IN GENERAL. areas Where, however, the demand would have tne been cognizable 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 in- herent principles, not to entertain stale demands, and not to encourage laches or negligence; from the diffi- culty 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 mani- festly promoted by fully acting upon the maxim, Vigi- lantibus, non dormientibus, jura subvenient.’ 461. The Statute of Limitations (21 Jac. 1, c. 16), does not apply where a fiduciary relation exists between the parties, whether as express trustee and cestui que trust, or as principal and agent.? 462. Lapse of time will not of itself bar an executor of an executor of his right to have an account of the original testator’s estate taken, with a view to ascertain such executor’s liabilities as an accounting party. 463. pre The general law as to the appropriation of tion of pay- payments is this: the debtor is entitled to apply the payments at the time of making them, in such a manner as he thinks fit. In default 1 St. @ 529; Knox v. Gye, L. R. 5 H. L. 656; see supra, par. 33. * Obee v. Bishop, 1 D. F. & J. 142; Brittlebank v. Goodwin, L. BR. 5 Eq. 545; Burdick ». Garrick, L. R. 5 Gh. Ap. 233.* 3 Smith v. O'Grady, L. R. 3 P. C. 311. * See also Angell on Limitations (6th ed), p. 161, et seg., and American cases cited. ACCOUNT IN GENERAL. 247 of appropriation by the debtor, the creditor is entitled to determine the application 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. 464. An agent is not liable to account except to Agent lia -ble to ac- his principal ; and the case of a charity forms ine a no exception to the rule.” 465. “peal. 1 Merriman ». Ward, 1 Johns. & H. 376. St. 2 459a-459¢; Devaynes v. Noble, Tudor’s Lead. Cas. Mere. Law, 1.* 2 Att. Gen. v. Earl of Chesterfield, 18 Beav. 596. * See also United States v. Kirkpatrick, 9 Wheat. 720, 737-8 ; Crompton v. Pratt, 105 Mass. 255. 248 ADMINISTRATION. CHAPTER ITI. OF ADMINISTRATION. -ndeie? I. Iw cases of any complication or diffi- diction, culty, the Court of Chancery has, practically speaking, almost an exclusive jurisdiction in the ad- ministration of assets and the distribution of the residue, founded on the notion of a constructive trust, or on some auxiliary ground, such as the necessity for a dis- covery, formerly existing, or the consideration that the aid, if any, afforded at Common Law or in the Eccle- siastical Court, was not plain, adequate, and complete.’ And by the stat. 20 and 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. 466. meee II. The application for assistance is some- ing by | 4x times made by the executor or administrator adminis- —_ himself, against the creditors generally, when he finds the affairs of his testator or intestate so much involved, that he cannot safely administer the estate except under the direction of a Court of Equity. Proceedings for administering the estate, instituted by executors or administrators, are not encouraged; be- 1 St. 3 584-543. ADMINISTRATION, 249 cause they may be used unduly to keep creditors out of their money.’ 467, III. But the aid of the Court is more, oe usually sought by ecreditors.? And as a de- ceeding of : : ‘ i creditors. cree 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... As soon. as the decree to account is made in proceedings on behalf of all the creditors, the executor or administrator is entitled to prevent legal proceedings against him by any of the creditors, ex- cept under the direction of the Court of Equity by which the decree was made.* 468. IV. Assets (that is, property available for jy pivision the payment of debts of a deceased person) °fsets- are divided into legal and equitable. Legal assets are property which creditors may make avail- |... able in a Court of Law for the payment of of legal debis, as having devolved upon or been re- coverable by the executor or administrator, as such, for that purpose, simply by virtue of his office, even though the property 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 creditors can only |... make available in a Court of Equity for pay- of equitable ment of debts, simply by virtue of an express 1 St. ¢ 544, 545. 2 St. 546. 3 $t.2547. 4 St. 549, 250 ADMINISTRATION. 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 equitable nature of the prop- erty, nor the remedy of the executor, but the remedy of the creditor, which determines whether the assets are legal or equitable.’ 469. - Equitable assets include real property which the deceased had by will charged with or devised for pay- ment of his debts, although liable for payment of them by Act of Parliament.? 470. ee: V. Courts of Equity follow the same rules Vv. Adminis- , f tation of in regard to legal assets which are adopted by Courts of Law, and give the same pri- ority to the different classes of creditors which is en- joyed at Law. And Equity recognizes and enforces all antecedent liens, claims, and charges in rem, ac- cording to their priority, whether those charges are of a legal or an equitable nature, and whether the assets Aaminis 2¥e legal or equitable.? But equitable assets, tatiabie With the exception above mentioned, are dis- er tributed pari passu among all the creditors without regard to the priority or dignity of the debts; and, after they are satisfied, among all the legatees or 1 See St. 2 551, 552; 2 Sp. 314, 315; 2 Bl. Com. 244; Burt, Comp. @ 734; Silk v. Prime, 2 Lead. Cas. Eq., 2d ed., et seg. ; Cook v. Gregson, 8 Drew. 547 ; Shee v. French, Id. 716; Mutlow v. Mut- low, 4 D. & J. 589. 2 St. 3 552a. ; 9 St. 8553. * 3 Wm.’s Ex’rs. 1683, et seg., and cases cited. ADMINISTRATION. 251 distributees. But if the fund is insufficient to pay all the debts, all the creditors must abate in a yatement proportion. And so if the fund, after pay- oh9ots’ ment of debts, is insufficient to pay all the “** legacies, they must all abate in proportion, unless some priority is specifically given by the testator to some legacies over others.’ But as between specific and pecuniary legatees, the loss is to fall wholly on the latter? And charitable legacies now abate, as well as legacies of another kind.* 471. By the Supreme Court of Judicature Act, 43 :ninis- 1875 (38 and 39 Vict. c. 77,8. 10), it is tation of enacted (in lieu of the 1st sub-section of sec- Solvent estates and tion 25 of the principal Act, 36 and 37 Companics Vict. c. 66), that “in the administration by the Court of the assets of any person who may die after the commencement of this Act, and whose estate may prove to be insufficient for the payment in full of his debts’ and liabilities, and in the winding up of any company under the Companies Acts 1862 and 1867, whose assets may prove to be insufficient for the pay- ment of its debts and liabilities and the costs of wind- ing up, the same rules shall prevail and be observed as to the respective rights of secured and unsecured creditors, and as to debts and liabilities provable, and as to the valuation of annuities and future and con- tingent liabilities respectively, as: may be in force for the time being under the law of bankruptcy with re- spect to the estates of persons adjudged bankrupt ; and all persons who in any such case would be entitled to 1 St. 9554-6; 2 Sp. 314. 2 2 Sp. 343. 3 St. 2 1180. 252 ADMINISTRATION. prove for and receive dividends out of the estate of any such deceased person, or out of the assets of any such company, may come in under the decree or order for the administration of such estate, and make such claims against the same as they may respectively be entitled to by virtue of this Act.” 472. 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, because the assets have been wasted, unless they show that the wasting took place before the share was paid over.’ 473. Gaewation Debts actually barred by the Statute of as Limitations are not included in a trust for Statute of agmitarions’ payment of debts. But where a provision is as regards debs made, either by will or by deed, for pay- ment of debts out of real estate, the statutory time will cease to run, in the former case, from the death of the testator, in the latter from the date of the deed; be- cause the creditor, the cestui que trust, is not to be barred by the neglect of the trustee to do his duty. The same principle will apply where personal estate only is assigned in trust for payment of debts. But where personalty is bequeathed for payment of debts, it does not prevent the running of the statute; because the trust for payment of debts, with which every executor is clothed, has no such effect. Indeed, such an express trust is inoperative for any purpose.’ 474. ' Peterson v. Péterson, L. R. 3 Eq. 111. 2 2 Sp. 357; Moore v. Petchell, 22 Beav. 172.* * St. Eq. Jur. 1521b; 3 Wm.’s Exr’s, 2028, et seq. ADMINISTRATION. 253 A Reta so far as the property num- VE. Order ot ites ered below as five, six, and seven, may be *minis-_ ey + different affected by the recent decisions mentioned meaner tee . . i t below, assets are now generally applied in 3 Uayent the payment of debts in the following order; ‘cle First, the general personal estate is applied, except under the circumstances presently mentioned. Sec- ondly, an estate particularly devised simply for the payment of debts. Thirdly, estates descended. Fourth- ly, property devised and bequeathed to particular de- visees and legatees, but charged with the payment of debts." In Stead v. Hardaker, L. R. 15 Eq. 178, the V.-C. Malins is reported to have said: “ It appears to me that the rule that descended estates are liable to the payment of debts in priority -to the specifically de- vised estates is a very unreasonable rule.” But in the opinion of the writer the rule is founded in the reason of things. For the specific devisee is expressly an object of the testator’s regard, whereas the heir only takes by act of Law. Fifthly, general legacies. Sixthly, lands comprised in a residuary devise. Sev- enthly, specific legacies and lands specifically devised.’ 1 St. 2 577; 2 Sp. 817, 822-4; Coote Mortg., 3d ed. 472-4; 2 Jarm. Wills, 2d ed. 526-7, 585; Phillips v. Parry, 22 Beav. 279; Wood »v. Ordish, 3 Sm. & G. 125; Scott v. Cumberland, L. R. 18 Eq. 578.* 2 Coote Mortg., 3d ed. 474; Dady 0. Hartridge, 1 Dr. & Sm. 236; Barnwell v. Iremonger, Ta. 242; Rotheram v. Rotheram, 26 Beey. 465; Bethell ». Green, 34 Beays 302; Hensman v. ame L. R. 2 Eq. 627; Brownson v. Lawrance, L. R. 6 Eg.1; Powell v. Riley, L. R. 12 Eq. 175. * 4th Kent Comm. 420, 421; Mitchell v. Mitchell; 21 Md. 244. 254 ADMINISTRATION. In Hensman v. Fryer, L. R. 3 Ch. Ap. 420, Lord Chelmsford, C. (on appeal), held that a residuary de- vise remains specific in effect, notwithstanding the 24th section of the Wills Act, and that a general legatee and a residuary devisee must contribute pro ratd in payment of debts, which the property first applicable is insufficient to satisfy. If this decision of Lord Chelmsford is right, the properties numbered above as five, six, and seven, would all be applied ratably. But in Dugdale v. Dugdale, L. R. 14 Eq. 234, and in Tomkins v. Colthurst, L. R. 1 Ch. D. 626, the V.-C. Malins refused to follow this decision (so far as re- gards legatees), as clearly erroneous; and held that real estate devised and not charged with debts, is not bound to contribute with a general legacy to meet the deficiency of the personal estate for payment of debts." In Eddels v. Johnson, 1 Gif. 22; Pearmain v. Twiss, 2 Gif. 130; and Clark v. Clark, 4 Gif. 702, the V.-C. Stuart had previously held that lands specifically de- vised and lands comprised in a residuary devise are to be applied ratably in payment of debts. And the V.-C. Malins, in Gibbins v. Eyden, L. R. 7 Eq. 371, decided the same way. And in Lancefield v. Iggulden, L. R. 10 Ch. Ap. 136, reversing the decision of Bacon, V.-C., 17 Eq. 556, Lord Cairns, L.C., and James, L.J., decided that specific devisees must contribute ratably with residuary devisees, and regarded the de- cision of Lord. Chelmsford as having settled the ques- tion” Eighthly, personalty and realty, over which : See also Farquharson v. Floyer, L. R. 3 Ch. D. 109, ? See also Jackson v. Pease, L. R. 19 Eq. 96. ADMINISTRATION. 255 the person whose estate is to be administered has exer- cised a general power of appointment.’ 475. A legacy or annuity given generally is payable out of a personal estate only. And oslo pri even when a legacy or annuity is given out wees of real and personal estate, or where debts oe are payable out of real as well as out of personal es- tate, it is the general rule that the personal estate is first to be applied so far as it will extend. The per- sonal estate constitutes the primary and natural fund for payment of debts and legacies, and will first be applied,’ except in the following cases: 476. 4d. When there are express words,’ or a oe . ‘ 1. In the plain intention of the testator to exonerate case of ex. a ‘ Press words his personal estate. And to constitute such or plain in- . . %, . “ ‘ _ ention to a plain intention, directions and expressions the con- which do not necessarily imply more than ey that the real estate shall make good the deficiency, are not enough ; there must appear upon the whole testa- mentary disposition, taken together, an intention so expressed as to convince a judicial mind that it was meant not merely to charge the real estate, but so to 1 2 Jarm. Wills, 2d ed. 526, 528; Sugd. Pow., 8th ed. 474, 540; 2 Lead. Cas. Eq., 2d ed. 102-4; Trower Dr. & Cr. 295; Fleming v. Buchanan, 3 D. M. & G. 976.* 2 2 Sp. 334, 818; Tench v. Cheese, 6 D. M. & G. 453; Bright »v. Larcher (No. 2), 4 D. & J. 608. 3 Young v. Young, 26 Beav. 522. * Coventry v. Coventry, 2 Dr. & Sm. 470. -* See also note 3 Wm.’s Exrs. (Perkin’s Am. ed.), 1693, ed seq. 256 ADMINISTRATION. charge it as to exempt the personal estate.’ And (1.) Tf the real estate is directed to be sold for payment of debts, and the personal estate is expressly bequeathed to legatees, then the personal estate will be exonerated by necessary implication. But neither of these circum- stances, apart from the other and from circumstances affording similar implication of intention, is a suffi- cient indication of an intention to exonerate the per- sonal estate. For it is most probable that a direction to sell real estate for the payment of debts, where no disposition 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 1 2 Sp. 336-341, 824; Coote Mortg., 3d ed. 454; 1 Rop. Leg. by White, 703, 710; 2 Jarm. Wills, 2d ed. 546-8; Plenty v. West, 16 Beav. 180; Jon v. Ashton, 28 Beav. 379.* * See also St. Eq. Jur. 3 566 b, c. In Brant’s Will. 40 Miss. 266, where testator directed his debts to be paid generally without charg- ing any particular fund, and then disposed by specific bequest and specific devise of his whole estate, it was held the realty and per- sonalty must contribute ratably. Where the personal estate is all disposed of by will, and a legacy is made a charge on real estate devised, the personal estate is exonerated as to such legacy. Lar- kin v. Mann, 53 Barb. N. Y. 267. But the intent to charge the realty must be shown by mingling real and personal estate in a residuary clause or in some other way, and the intent must be clear. Gerken’s Estate, 1 Tucker (N. Y. Surr.), 49; Okeson’s Appeal, 59 Penn. St. 99. ADMINISTRATION. 257 payment of debts out of such personal property.? ‘(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 testamen- tary expenses, the personal estate is exonerated.’ (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, etc., the two estates comprised in that fund are applicable pro ratd. But in such case, if there is no conversion out and out, the surplus (if any) will result as real and personal estate. If a portion only of the personal estate is comprised in the fund, the residue will be chargeable only when that fund fails. (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.* And where real estate is devised to a person, upon condition of his paying debts and legacies generally, or charged with 1 2 Sp. 340, 341, 818, 823; 2 Wms. on Executors, 6th ed. 1576, 1577. 2 2 Sp. 341; 2 Jarm. Wills, 2d ed. 562; Gilbertson v. Gilbertson, 34 Beav. 354; Powell v. Riley, L. R12 Eq. 175.* 3 Coote Mortg., 3d ed. 470; 2Sp. 818; 2 Jarm. Wills, 2d ed. 529, 531; Simmons v. Rose, 21 Beav. 37; 6 D.M. & G. 411; Tur- ner L. J., in Tench v. Cheese, 6 D. M. & G. 467; Bright v. Lar- cher, 3D. & J. 148; Allan v. Gott, L. R. 7 Ch. Ap. 430. 4 2 Sp. 334, 342. * Larkin v. Mann, 51 Barb. 267. + 3 Williams, Executors, 1712, et seq. 22 258 ADMINISTRATION. them generally, or is given to trustees for those pur- poses, and the personal estate is disposed of by a gen- eral residuary bequest, these circumstances will not prevent the personal fund being applied in the first in- stance in the satisfaction of those demands.’ And if a testator expressly charges his personal estate with debts of a particular description, namely, with those by simple contract, and then bequeaths that fund, it will not be discharged from debts, etc., generally.’ And, as a general rule, no extrinsic evidence can be admitted to ascertain the intention to exonerate; so that the circumstances of the testator, and the amount of his personal estate and of debts, cannot be taken into consideration.* 477. If the personal estate is exonerated from debts and legacies in favor of A, and he dies before the testator, by which event the disposition lapses, the executors or next of kin 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.‘ 478. 2. Where 2. When the charge or incumbrance is, in thaseis its own nature, real ; as in the case of a join- ee ture; or of pecuniary portions to be raised out of lands by the exécution of a power ; or of pecu- niary 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 person charged 2 1 Rop. Leg. by White, 695. 2 Th., 706. * 2 Sp. 337; 1 Rop. Leg. by White, 724. * Th., 744. ADMINISTRATION. 259 with, or with a direction to pay, particular sums of money, or to trustees in trust to raise and pay particu- lar sums, as distinguished from a charge or trust for satisfaction of debts or legacies generally.! And al- though there may be also a personal covenant to raise the jointure, portions, or sums, such covenant will only be regarded as an additional security, not as the primary one. If there is no such personal covenant for the payment of portions, but a covenant to settle lands, and-to raise a term of years out of the lands for secur- ing the portions, there, even though there be a bond to perform the covenant, the portions are not in any event payable 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 de- volve 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 general per- sonal 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 ex- pression “ subject to the mortgage,” in the devise of a mortgaged estate, may sometimes be only descriptive of the estate, and not expressive of an intent that the devise is made cum onere.’ 479. 1 1 Rop. Leg. by White, 671; 2 Jarm. Wills, 2d ed. 543, 567-9. 2 2 Sp. 819; 1 Rop. Leg. by White, 731, 732; 11 Jarm. & Byth. by Sweet, 797, n. (a); Coote Mortg., 3d ed. 350, 452; 2 Jarm. Wills, 2d ed. 534. On this subject see Jenkinson v. Harcourt, Kay, 688; Bond v. England, 2 K. & J.44; Townshend v. Mostyn, 26 Beav. 72; Lady Langdale v. Briggs, 8 D. M. & G. 391. 260 ADMINISTRATION. a eta 3. Where the debt was not contracted by thedebt was the person who died last seized or entitled, tracted b ea Py but by some other person from whom he pho died took it by descent or devise, or by some or entitled. other person from whom he purchased it, or from whom his vendor derived it. Thus, where a mortgage was created by an ancestor, and the mort- gaged estate descended upon the heir, there, although the heir entered into a collateral contract or covenant, or gave security 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 mortgage. But it is different if the heir or devisee or purchaser did anything which raised a new and inde- pendent contract between him and the mortgagee (un- less it was simply for the purpose of paying off the debts or legacies of the original mortagor, as such), or had in any other way made the debt his own.’ 480. 4Incertain by the stat. 17 and 18 Vict. c. 113, it is esr’ enacted that, “when any person shall, after foiand is. the 31st day of December, 1854, die seized ater Dee. Of or entitled to any estate or interest in any *h 1894 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 1 St. ¢ 571-6, 1003; 2 Sp. 334-6, 398, 394, 819, 824; Coote Mortg., 3d ed. 453, 478, 479, 481; 1 Rop. Leg. by White, 735, 739, 742; 2 Jarm. Wills, 2d ed. 536, 539 ; Swainson v. Swainson, 6 D.M. ‘& G. 648; Townshend ». Moatvii, 26 Beav. 72; Ion v. Ashton, 28 Beav. 379 ; Bagot v. Bagot, 34 Beav. 134. ADMINISTRATION. 261 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 heredit- aments shall descend or be devised, shall not be en- titled to have the mortgage debt discharged or satisfied out of the personal estate or any other real estate of such person, but the land or hereditaments so charged shall, as between the different 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 mort- gage debts charged on the whole thereof: Provided always, that nothing herein contained shall affect or diminish any right of the mortgagee on such lands or hereditaments to obtain full payment or satisfaction of his mortgage debt either out of the personal estate of the person so dying as aforesaid or otherwise: Pro- vided also, that nothing herein contained shall affect the rights of any person claiming under or by virtue of any will, deed, or document already made or to be made before the 1st January, 1855.” 481. An equitable mortgage by deposit and memorandum is within this Act.| And it extends to copyholds. 482. Leaseholds were held to be not within this Act.’ 483. Various other points connected with the construc- 1 Pembroke v. Friend, 1 Johns. & H. 132. 2 Piper v. Piper, 1 Johns. & H. 91. 8 In re Wormsley’s Estate, L. R. 4 Ch. D. 665. 262 ADMINISTRATION. tion of this Act have been decided, but they do not come properly within the scope of a work like the present. 484. By the stat. 30 and 31 Vict. c. 69, it is enacted that, “in the construction of the will of any person who may die after the 31st day of December, 1867, a general direction 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 declaration 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 construction of the said Act and of this Act, the word ‘ mortgage’ shall be deemed to extend to any lien for unpaid pur- chase-money upon any lands or hereditaments pur- chased by a testator” (s. 2). 485. By the stat. 40 and 41 Vict. c. 34, it is enacted that the stat. 17 and 18 Vict. c. 113, and 30 and 31 Vict. c. 69 (supra, par. 481, 485), “shall, as to any testator or intestate dying after the thirty-first December, one thousand eight hundred and seventy-seven, be held to extend to a testator or intestate dying seized or pos- sessed of or entitled to any land or other hereditaments of whatever tenure which shall at the time of his death be charged with the payment of any sum or sums of money by way of mortgage, or any other equitable charge, including any lien for unpaid purchase-money ; and the devisee or legatee or heir shall not be entitled ADMINISTRATION. 263 to have such sum or sums discharged or satisfied out of any other estate of the testator or intestate unless (in the case of a testator) he shall within the meaning of the said Acts have signified a contrary intention; and such contrary intention shall not be deemed to be signified by a charge of or direction for payment of debts upon or out of residuary real and personal estate or residuary real estate.” 486. Where assets of a testator, consisting of personalty which could be identified, are ityotper settled bond fide upon marriage, they cease ‘aled oa to be liable to subsequently accruing claims saa in respect of breaches of covenant entered into by the testator, but of which the parties to the settlement had no notice when they executed it.’ 487. Property specifically bequeathed is not rispitity of discharged from its liability to the testator’s Prone, creditors by the circumstance that there has >°aesthet come to the hands of the executors personal property of the testator not specifically bequeathed more than sufficient to pay his debts and funeral and testamentary expenses, and that the specifically bequeathed property has been made over by the executor to the specific legatee; whatever may be the rights of the specific legatee as regards the executor or residuary legatee.? 488. VII.- In the order of satisfaction, if the personal estate of the deceased is not suffi- of toe cient for all purposes, creditors are preferred 1 Dilkes v, Broadmead, 2 D. F. & J. 566. 2 Davies v. Nicolson, 2 D. & J. 693. 264 ADMINISTRATION. 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 expressly an object of the testator’s regard, like the specific legatee, only takes by act of Law. Specific legatees are also preferred to the devisee of real estate charged with specialties or with the payment of debts, and to resid-, uary devisees of real estate. But general pecuniary legatees are not preferred to residuary devisees 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 lega- tees shall each, according to the proportionate value of the benefits conferred on each, contribute to the pay- ment 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 no gift of the residue.t As between a devisee of a mortgaged fee simple estate and a specific legatee of personalty, the devisee shall not have his mortgage paid by the specific legatee, but shall take the mort- gaged estate cum onere. A fortiori, a specific legatee of a mortgaged leasehold shall not have the mortgage wholly or partly paid off by specific legatees of other 1 St. 2571; 2Sp.343. ADMINISTRATION. 265 leaseholds.1 Subject to the stat. 17 and 18 Vict. c. 1138 (supra, par. 481), the devisee of mortgaged prem- ises is preferred to the heir-at-law of descended es- tates; because the devisee- is evidently 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 expressly 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 prevail.? 489. But subject to the stat. 17 and 18 Vict. ce 113 (supra, par. 481), where the personal assets are suffi- cient 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 incumbrance of his ancestor or testator binding on him, is entitled (unless there is some other equity which repels the claim) to have the debt paid out of the personal assets in pref- erence to the residuary legatees or distributees,* because such charges are primarily payable out of personal estate. 490. And, subject to the same statute, lands devised for or subject to the payment of debts are also liable to discharge a mortgage, in favor of the heir or devisee to whom the mortgaged lands may belong, unless the mortgaged lands are really devised cum onere.* 491. 1 2 Sp. 838. 2 See St. 3 571; 2 Sp. 832, 839, 882. 3 St. ¢ 571. * St. 2571; 2 Sp. 822, and see supra, par. 479. 23 266 ADMINISTRATION. Where money is payable under a voluntary bond, the assignee for value of an equitable interest in it is entitled to rank as a specialty creditor against the as- sets of the obligor, though: the obligee would not be so entitled.’ 492. VIII. There are many cases in which abating oF parties, whose right at Law is confined to oe one fund, would fail to obtain the satisfac- tion 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 satisfaction thereof, not- withstanding 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 of funds of the common debtor of several credi- tors, 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 satisfac- tion out of that fund to which the latter cannot resort, so far as it will extend, or the latter shall receive com- pensation out of that fund, in proportion to the amount which the former has unnecessarily taken from that 1 Payne v, Mortimer, 4 D. & J. 447. ADMINISTRATION. 267 which formed the only source of payment for the latter. 493. This plan is adopted as against mortgagees Marsballiog and other creditors of the superior kind, in i fvorof creditors, or favor not only of mortgagees and creditors or ofan of the superior kind, but also of creditors of [icrist ot of an inferior rank, or of legatees (except re- ° * 2°”? siduary 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;? and as against a person who becomes a surety for a mortgagor on the occasion of a first mort- gage, in favor of a second mortgagee.? Thus, iene legatees, with the above exceptions, are per- 1 the place of mort- mitted to stand in the place of specialty 8825204 specialt; creditors, against the real assets descended, or and sla ple of a mortgagee who has exhausted the per- “°° sonal estate, whether the mortgaged lands have de- scended to the heir-at-law, or have been devised to a devisee who is to take subject to the mortgage. And where a testator bequeaths legacies, and devises real " See St. 2 558-563; 2 Sp. 827, 828; Aldrich v. Cooper, 2 Lead. Cas. Eq., 2d ed. 56, et seq. ; Gibson v. Seagrim, 20 Beav. 14.* ? See St. 2 562-6, 570; 2 Sp. 410, 819, 820, 827, 829, 833, 3 South v. Bloxham, 2 Hem. & M. 457. * 3 Wm.’s Exrs. (Perkins Am. ed.), 1718, et seg.; Alston ». Munford, 1 Brock. 266; Torr’s Estate, 2 Rawle, 250, 252. The aim of a Court of Equity as it regards the payment of debts is equality ; that the assets shall be so distributed as to satisfy all the creditors. Ibid. 268 ADMINISTRATION. estate in trust for, or subject to, payment of debts, and the personal estate is exhausted by creditors, the lega- tees are entitled to come upon the real estate.' And in consequence of the stat. 3 and 4 Wm. IV, ec. 104, which makes real estate liable to simple contract debts, though it was 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.’ But residuary legatees, where the residue is not exonerated, and legatees whose legacies are given out of a residue, have no such equity ; for a residue of personal estate implies what remains after satisfying the charges upon it? And but not of : : devisee of the equity of legatees will not generally pre- real estate ‘ . . not mort- vail against a devisee of the real estate not gaged. . 5 mortgaged, whether he is a specific or a re- siduary 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.(a.) 494. saan Where one party has a charge on freehold ue between and copyhold estate, and another party a and copy- charge on the freehold only, the latter is en- titled to require that the former should be 1 Surtees v. Parkin, 19 Beav. 406; Paterson v. Scott, 1 D. M. & G. 531.* 2 St. 2.566; 2 Sp. 830. 3 2 Sp. 820. * St. ¢565; 2 Sp. 820, 829, 830-2. (a) But see supra, par. 475. * See also cases cited in note 3, Wm.’s Exrs., 1718. ADMINISTRATION. 269 satisfied out of the copyhold estate, so far as it will extend.’ 495. The same marshalling of assets takes’ place : Marshalling as between legacies charged on land and lega- 4s between . ‘4 i legacies cies not so charged.” But since the statute 9 charged oa Geo. IT, c. 36, legacies or bequests to chari- others not . so charged. table uses, payable out of real estate or datehe minis- charged on real estate, or to arise from the (tion tn, sale of real estate, are, with some exceptions, charitable utterly void ;° and Equity has in some mod- ss ern 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, or of personalty connected with realty and pure personalty. Instead of directing the debts and the other legacies to be paid out of the real estate or im- pure personalty, and reserving the pure personalty to fulfil the charitable bequests, the charity legacies have been considered as intended to be charged on the pure personal estate and the proceeds of real estate, or the impure personalty proportionately, like other lege cies, as if no legal objection existed to applying the proceeds of the real estate to the charitable be- quests; and as charity legacies cannot legally be charged on the proceeds of real estate or the impure personalty, they have been held to fail as to that pro- portion which would have come to them out of the 1 Tidd v. Lister, 10 Hare, 157; 3 D. M. & G. 857. 2 St. 2 566. 8 St. 2 569; and see Smith’s Compendium of the Law of Prop- erty, 5th ed., par. 1402-5. 270 ADMINISTRATION. proceeds of the real estate or the impure personalty.' In this instance not only has the principle of favor to charities been discarded, but the Courts have (very improperly, as the writer humbly submits) acted upon a diametrically opposite principle. A testator has the power of directing the charity legacies to be paid out of the pure personalty, and the debts and private lega- cies out of the mixed pers6nalty or realty? And where a testator expressly directs charity legacies to be paid exclusively out of his pure personalty, and the personalty savoring of realty is sufficient for the pay- ment of legacies to individuals, and though the will does not throw the legacies to individuals upon the personalty savoring of realty, yet it does not purport to make those legacies payable at all out of the pure personalty, but gives them without reference to any particular fund, and the pure personalty is not suf- ficient or only sufficient for the payment of the charity legacies; the legacies to individuals 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. But even in the absence of such an express } See St. 2 569, 1180; 2 Sp. 233, 235; Miles ». Harrison, L. R. 9 Ch. Ap. 316, * See Lord Langdale’s judgment in the Philanthropic Society ». Kemp, 4 Beay. 581; Robinson v. Geldard, 3 Mac. & G. 735; and see remarks of V.-C. Stuart in Jauncey v. Att.-Gen., 3 Gif. 319, 320; Wills v. Bourne, L. R. 16 Eq. 487; Miles v. Harrison, L. R. 9 Ch. Ap. 316.* 5 Robinson v. Geldard, 3 Mac. & G. 735, 747; Beaumont ». Oliveira, L. R. 6 Eq. 5384; 4 Ch. Ap. 309; Miles v. Harrison, L. R. 9 Ch. Ap. 316. * 3 Wm’s Ex’rs, 1720, and cases cited. © ADMINISTRATION. 271 adjustment the writer conceives that the Courts ought, in favor of charities, to have imputed to testators an intention that the charity legacies should be paid out of that fund alone out of which they lawfully might be paid. 496. Where a testator directs charitable legacies to be paid out of pure personalty in precedence of other legacies, but is silent ds 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 person- alty and the mixed personalty ratably, according to their relative values... 497. Marshalling of assets takes place as be- yp,,cnaning tween simple contract creditors and a vendor 3 Pircen of real estate, in respect of his lien for ‘his ts depts unpaid purchase-money.? And as against “Ss '°™ an heir, taking an estate purchased, legatees are en- titled to have the assets marshalled, so as to give them the benefit of the vendor’s lien.’ And it has been held by Sir J. Romilly, M.R., that this doctrine applies as against a devisee taking the purchased estate.“ But the doctrine contained in this paragraph must be con- sidered to be subject to the operation of the stat. 17 1 Tempest v. Tempest, 7 D. M. & G. 470. 2 St. 3 5644. 3 2 Sp. 833. 4 Birds v. Askey (No. 2), 24 Beav. 618; Lord Lilford v. Powys Keck, L. R. 1 Eq. 347; but see 2 Sp. 833; Wythe v. Henniker, 2 My. & K. 635. -- 272 ADMINISTRATION, and 18 Vict. c. 113, as explained and extended by the stat. 30 and 31 Vict. c. 69, and 40 and 41 Vict. c. 34. 498, eset On analogous grounds, if a specific legacy or exonera- has been pledged or incumbered with mort- specific gages Or other charges by the testator, the specific legatee is entitled to have his legacy redeemed or exonerated; and if the executor fails to perform that duty, the specific legatee is entitled to compensation out of the general assets. Indeed the same principles apply to specific legatees as to devisees, in respect to the redemption of the subject-matter out of the general assets.” 499. Pesiectlan Again, in order to preserve a widow’s ora wie’’s paraphernalia, which, with the exception of a necessary apparel, is subject to debts, Equity will oblige creditors who are entitled to proceed against real assets or funds, to resort to such assets or funds, or will decree her compensation out of the same.’ 500. Tx heck IX. With regard to the assets of foreigners, coca ™ it is to be observed, that in general where a county by domestic executor or administrator collects simine assets in a foreign country, without any let- eon 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.* 501. 1 See supra, par. 481-6. 2 St. 3 566a; 2 Sp. 774, 5 St. 2 568; 2 Sp. 821, 829. * St. 3 583. = ADMINISTRATION. 273 If property is received by a foreign ex- dias ecutor or administrator abroad, and after- oe wards remitted here, an executor or adminis- ¢x* St. 2 1016, 1016 b; 2 Sp. 642, 645, 646, 648; Coote Mortg., 3d ed. 332, 343, 344; Millet v. Davey, 31 Beav. 470; Tudor’s Lead. Cas. Eq., 3d ed. 975; Seton’s Decrees, 8d ed. 382; Parkin- son v. Hanbury, L. R. 2 H. L. 1.4 * Jones Mortg. 3 699, 700. + Jones Mortg. 3 699, 1123, See also Hubbard », Shaw, 12 Allen, 120. MORTGAGES OF REALTY. 279 gagee may take possession of one of them only, so as to become liable to account for default as to that alone. And so if part only of the property (as the land with- out the shooting or timber) is on lease, the mortgagee may, by taking the rent, make himself accountable for that alone’ 514a. Where persons, who, though in fact, mortgagees, enter into possession of the rents and profits in another character (e. g., as purchasers), they are not answer- able for what, without wilful default, they might have received.” 515. A mortgagee is not allowed to obtain any __. advantage out of the security beyond his mortgages'e es Je . advantage. principal and interest. 516. A mortgagee cannot, in the first instance, gyiversion stipulate, that if the interest be not paid at orp the time, it shall be converted into principal.* ?*" To convert interest into principal, the interest must first become due, and then there must be an agree- ment 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 sub- sequent incumbrances of which the mortgagee has no- tice at the time of the agreement.‘ 517. A stipulation that the mortgagee shall re- ceive interest at £4 per cent. if regularly saereaton paid, but £5 per cent. if default be made, is ceaulen good, if £5 per cent. is reserved by the deed. pen ' Simmins v. Shirley, L. R. 6 Ch. D. 173. ? Parkinson v. Hanbury, L.R.2H.L.1. _ 9 2 Sp. 628. 4 2 Sp. 656. 280 MORTGAGES OF REALTY. But if £4 per cent. only is reserved, a stipulation that £5 per cent. shall be paid, if the interest be not regu- larly paid, is in the nature of a penalty, against which the Court will relieve.’(a) 518. Leases made by the mortgagor to the the mortga- mortgagee at a rent, are looked upon with os great suspicion, as likely to have originated in the mortgagee having taken advantage of the ne- cessities of the mortgagor to obtain a lease upon terms upon which the property would not have been let ex- cept for those necessities.? 519. What the The mortgagee in possession has a right may adito to add to his debt any sums he may be com- hisdevt. pelled to pay for arrears of rent, or for main- taining the title to the estate, or for rebuilding the premises, or for necessary repairs, or the expenses of renewing a renewable leasehold, with interest from the time the sums were advanced. But he cannot, by con- tract or otherwise, entitle himself to make any charge for management.’ 520. A mortgagee in a suit for redemption or foreclosure is entitled to his general costs of suit, unless he has forfeited them by some misconduct.* It would be un- safe to deduce any other proposition from this case. 521. ' 2 Sp. 631.* 2 2 Sp. 632. 3 2 Sp. 649, 650, 653. Cotterell v. Stratton, L. R. 8 Ch. Ap. 295. (a) As to the validity of an agreement for making a larger amount of principal payable in default of punctual payment, see Thompson v. Hudson, L. R. 2 Eq. 612; 2 Ch. Ap. 255. * But whenever the rents and profits for a year exceed the ar- rears of interest, the balance should go towards the principal. See Van Vronker v. Eastman, 7 Mete. 157. MORTGAGES OF REALTY. 281 The mortgagee is not allowed to make ,, owance any charge as a receiver, if he himself hag ‘forreceiver. personally received the rents, even though it may 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 and 24 Vict. c. 145, and indepen- dently 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. 522. A mortgagee of a West India estate may stipulate that the consignments shall be made Weet alia, tohim. And, if out of possession, he may ~ a take a certain reward for the management of the estate, provided he do not make that employment 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 commission on consignments, insurance, and the like, but stands in the position of the mortgagee in possession of an English estate.? 523. As a mortgagee is not allowed any advan- yorteage of tage beyond securing his principal and inter- **”°""°™ est, where an advowson is mortgaged, and the living becomes vacant prior to the foreclosure, the mort- gagee is compellable in Equity to present the nominee 1 2 Sp. 807.* 2 2 Sp. 630. * Jones Mortg. 2 1182. 24 : 282 MORTGAGES OF REALTY. of the mortgagor; even although nothing but the ad- vowson is mortgaged, and the deed contains a covenant that on any avoidance the mortgagee shall present. But he may pray a sale of the advowson.' 524. Pesnp- The mortgagee is at liberty to stipulate a for the option of pre-emption, in case the mortgagor should determine to sell.’ 525. ; A mortgagee is not bound to produce his oflbata by & mortgage deed, or indeed any of the deeds amortgagee. . . . in his possession, to the mortgagor or any person claiming under him, until payment of the prin- cipal and interest due and his costs, though the appli- cation be made bond fide, only to obtain information with a view to paying off the mortgage.* 526. Right of As an incident to the right of the mort- eee gagee, he is at liberty to devise the legal Property. —_ estate in the mortgaged property to trustees, if he thinks fit, instead of allowing it to descend to his heir-at-law ; and the mortgagor must bear the costs of obtaining a reconveyance, although they may have been increased by such devise. 527. ne If a mortgagee in possession turns out or eieceing,°" refuses to accept a responsible tenant, he is ‘nant. liable for any loss occasioned thereby.» 528. Both at Law and in Equity, in the absence of particular circumstances, statutes, judg- ments, and recognizances, all rank according to their dates. And so in Equity do equitable charges of every kind, where the equities are equal in all other Priority. 128p.629. ?2S8p.631. %2Sp.655. * 2S8p. 669. > 2 Sp. 806. ® 2 Sp. 727; Coote Mortg., 3d ed. 410. MORTGAGES OF REALTY. 283 respects than that of priority of time. And where money is lent on an equitable mortgage, without no- tice of a prior equitable agreement affecting the same property, the lender gains no priority over the party claiming under the prior equitable agreement, by get- ting in the legal estate, at least after he has notice of the circumstances.? But if a third incumbrancer, by mortgage, without notice of a second incumbrance 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 incumbrances 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 equities are equal, the Law shall pre- vail. But if a 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 postpone a mesne mortgage; because he did not originally advance his money on the imme- diate credit of the land, and by his judgment, he did not acquire any right in‘the land, but before the stat. 1 and 2 Vict. c. 110, only a lien on the land, which 1 2 Sp. 727-732; Shropshire Union Railways, etc., Co. v. The Queen, L. R. 7 H. L. 496; Coote Mortg., 3d ed. 410; remarks of V.-C. Kindersley in Rice v. Rice, 2 Drewry, 78; Cory v. Eyre, 1 D. J. & S. 149.* 2 Mumford v. Stohwasser, L. R. 18 Eq. 556. Tacking. * Jones Morig. ¢ 200. 284 MORTGAGES OF REALTY. might or might not be enforced on it;' although now, under the 13th section of that Act, a judgment will operate as a charge on real estate, except as regards purchasers, mortgagees, or creditors, who became such before the time for the commencement of the Act, and except so far as the stat. 23 and 24 Vict. c. 38, s. 1, and 27 and 28 Vict. c. 112, affect the case. 529. Upon the principle, that, where the equities are equal, the Law shall prevail, 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 ona statute or judgment, or even if he lendsa further sum on note, and it is distinctly agreed at the time to be on the security of the mortgaged property, he is entitled to retain till both sums are paid, as against a mesne mortgage, of which he had no notice at the time of the further advance.* Indeed, it may 1 See St. @ 412-416, 418, 421; 2 Sp. 734, 735, 737, 740; Coote Mortg., 3d ed. 209, 210, 383, 385, 389, 403, 407, 408; Spencer ». Pearson, 24 Beay. 266; but see 2 Sp. 722, 723.* ? St. ¢@ 417, and note; 2 Sp. 721, 735, 789; Coote Mortg., 3d ed. 409, 410; Tassell v. Smith, 2 D. & J. 713.+ * The English doctrine of tacking never gained any general recognition in this country, where the Registry Acts are held to be not only constructive notice but in effect declare the priority to be fixed by the registration. Jones Mortg. 2 569, 1082. And in England tacking was abolished by the Vendors and Purchasers Act in 1874. ¢ The prevailing doctrine in this country is that a mortgagor may always redeem by paying the specific debt secured by the mortgage, together with such prior liens as the mortgagee may have been compelled to pay for the protection of the mortgage. Jones Mortg. 2 1083. MORTGAGES OF REALTY. 285 be stated more generally, 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.’ But where a first mort- gage extends to future advances, further advances made by the first mortgagee, after notice of the second mort- gage, have no priority over the latter, even though the second mortgagee had notice of the nature of the first mortgage.” Andif a transferee of a first mortgage ad- vances a further sum, he cannot tack it as against an equitable mortgage subsequent to the original first mortgage, of which equitable mortgage the original first mortgagee had notice, though the transferee had no notice of it.2 580. A statute or judgment creditor who is the first in- cumbrancer, cannot, by buying a subsequent mort- gage, tack it to his statute or judgment, because he did not advance his money on the immediate credit of the land.* 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 ’ Young v. Young, L. R. 3 Eq. 801. 2 Rolt «. Hopkinson, 25 Beay. 461; 3D. & J.177; 9 H. L. Cas. 514; Menzies v. Lightfoot, L. R. 11 Eq, 459.* 3 Pease v. Jackson, L. R. 3 Ch. Ap. 576. See Baker v. Gray L. B. 1 Ch. D. 491. 4 2 Sp. 740. * In this country mortgages made in good faith for the purpose of securing future debts have generally been sustained, both in the early and recent cases. See Jones Mortg. 2 365. And 3 368, et aéq.. as to effect after notice of subsequent liens. 286 MORTGAGES OF REALTY. against any intervening incumbrancer of a superior rank between his bond and mortgage, or against other creditors, or even against the mortgagor himself, or a purchaser of the equity of redemption, but only (ta avoid circuity of action) against the heir or beneficial devisee, if in the bond the heirs were expressly bound.’ And as copyholds, prior to the stat. 1 and 2 Vict. c. 110, were not liable at Law to an extent, a judgment debt cannot be tacked to a mortgage of copyhold land? 531. By the stat. 37 and 38 Vict. c. 78, s. 7, “after the commencement of this Act, no priority or protection shall be given or allowed to any estate, right, or in- terest in land by reason of such estate, right, or interest being protected by or tacked to any legal or other estate or interest in such land; and full effect shall be given in every Court to this provision, although the person claiming such priority or protection as afore- said shall claim as a purchaser for valuable considera- tion and without notice: Provided always, that this section shall not take away from any estate, right, title, or interest any priority or protection which but for this section would have been given or allowed thereto as against any estate or interest existing before the commencement of this Act.” Butthis was repealed by the stat. 38 and 39 Vict. c. 87, as from the date of operation, “ except as to anything duly done there- under before the commencement of this Act.” 532. ‘ St. 418; 2 Sp. 723-5, 735; Coote Mortg,, 3d ed. 393. 2 Coote Mortg., 3d ed. 389. MORTGAGES OF REALTY. 287 When a puisne mortgagee has bought in a prior in- cumbrance, but the legal estate is vested in a trustee, or the puisne mortgagee has not obtained the legal title, or he takes in autre droit, the incumbrances are paid in the order of their priority in point of time, ac- cording to the maxim, Qui prior est tempore, potior est in jure, and the principle that he who has the better right to call for the legal title, or for its protection, shall prevail. 533. Where a legal mortgage is executed, and is regis- tered (in Ireland), and the mortgagor assigns an ap- parently satisfactory reason for not handing over or producing the title-deeds to the mortgagee, the legal mortgage will not be postponed to a prior equitable unregistered mortgage, of which the legal mortgagee had no knowledge or notice.” 534. Where a first mortgagee voluntarily, dis- postpone tinctly, and unjustifiably, through fraud or Merrefa. gross negligence, allows the mortgagor to %8°* retain the title-deeds, or allows the mortgagor to get possession of them, he will be postponed to a subse- quent mortgagee or purchaser without notice of a prior mortgage. But the onus of proving such fraud or negligence is on the person seeking to postpone the other.’ So if he conceals his mortgage from a person 1 St. 3 419; 2 Sp. 745. ? Agra Bank v. Barry, L. R. 7 H. L. 135. 5 St. 2 393, and see 41010; 2 Sp. 766, 767; Finch v. Shaw, 19 Beay. 500; s. c., Colyer v. Finch, 5 H. L. Cas. 905; Carter v. Carter, 3 K. & J. 617, 646-8; Espin v.’ Pemberton, 4 Drew. 333; 288 MORTGAGES OF REALTY. who, as he knows, is about to lend money to the mort- gagor, he will be postponed to that person.’ A second incumbrancer upon an equitable reversionary interest in stock, who has given notice of his incumbrance to the trustees of the property, whethér he has inquired of them as to the state of the title or not, will be pre- ferred to a prior incumbrancer, who has omitted to give notice of his incumbrance to the trustees.” And if a prior incumbrancer on real estate devised in trust for sale, omits to give notice to the trustee, before no- tice is given of a subsequent incumbrance, he will be postponed to the subsequent incumbrancer.* But a mortgagee of an equitable estate in land not directed to be sold has no occasion to give notice to the trustees, either to complete his title as against his mortgagor, or to secure to himself his priority against subsequent in- cumbrancers.‘ A declaration of trust of an outstand- ing term, with a delivery of the deeds creating and continuing the term, has been held to give a subse- quent incumbrancer a better equity than a mere decla- Dowle v. Saunders, 2 Hem. & M. 242; Layard v. Maud, L. R. 4 Eg. 397; Briggs v. Jones, L. R. 10 Eq. 92.* 1 St. 2 890; 2 Sp. 732, 766; Wilson v. Wilson, L. R. 14 Eq. 32. 2 2 Sp. 764. 3 Lee v. Howlett, 2K. & J. 531; Consolidated Investment and Insurance Company v. Riley, 1 Gif. 371. * Rooper v. Harrison, 2 K. & J. 86. * In America the doctrine of a mortgage by deposit of title- deeds has been adopted to a very limited extent only. It is not compatible with the registry system, and may be considered as generally rejected. Jones Mortg. 3 185, 186. MORTGAGES OF REALTY. 289° ration of trust taken by a prior incumbrancer.! And if the first incumbrancer has a declaration of trust only by the borrower, and none by the trustee, and the sec- ond incumbrancer has a formal mortgage of the equity of redemption, and the trustee is a party to that deed, and declares himself to be a trustee for the second in- cumbrancer, the second will have a better equity to call for the legal estate than the first? 535. Indepegdently of the stat. 37 and 38 Vict. c. 62, a charge created by an infant (whether representing him- self to be an adult or otherwise) will be postponed to a subsequent mortgage executed by him when of full age 536. III. As tothe remedies of the mortgagee to sy yortga- secure the discharge of the mortgage, a fore- ees Teme closure isin common cases deemed the ap- yore. propriate and exclusive remedy.‘ 537. ae ‘An intermediate mortgagee is entitled to a fore- closure against the mortgagor and the subsequent mortgagees.° A person entitled to a part only of the mortgage-money cannot foreclose a portion of the estate. Proceedings for foreclosure may be taken, notwithstanding a decree for redemption; for the mortgagor may make default." 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; 1 St. @ 421», and note; 2 Sp. 729. . *2Sp. 729. * Tnman v. Inman, L. R. 15 Eq. 260. * St. 2 1026. 5 2 Sp. 674. 5 2 Sp. 674. 7 2 Sp. 675. 25 290 MORTGAGES OF REALTY. but he can only do this by showing error in the decree, or falsifying the accounts for fraud or error.’ 538. 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.’ 539. By the stat. 15 and 16 Vict. c. 86, s. 48, on a foreclosure suit being instituted, the Court may decree a sale. Before that Act, where there was no power of sale inserted in the mortgage deed, Courts of Equity refused to decree a sale against the will of the mortgagor, except in these cases: (1.) Where the estate was insufficient to pay the incum- brances. (2.) Where the mortgagor was dead, and there was a deficiency of personal assets. (3.) Where the mortgage was of a dry reversion. (4.) Where the mortgagor died, and the estate descended to an infant. (5.) Where the mortgage was an advowson. (6.) Where the mortgagor became bankrupt, and the mort- gagee prayed asale. (7.) Where the mortgagor was dead, and the mortgagee, by his bill brought against the executor or administrator and the heir, prayed for Sale. 1 2 Sp. 680, 681. 2 See stat. 3 and 4 Will. IV, c. 27, ss. 24, 28, and stat. 7 Will. IV, and 1 Vict. c. 28; Fisher Mortg. 153, 154; Sugd. Stat., 2d ed. 94; Coote Mortg., 3d ed. 449.* * Payment is presumed from lapse of time, twenty years or more, or whatever may be the local statutory period of limitation. No presumption of’ payment, however, can arise from lapse of time when the mortgagee or his assignee is in possession of the land. Probst v. Brock, 10 Wall. 519. See also Jones on Mortg. 3 915. MORTGAGES OF REALTY. 291 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 land in mortgage was subject to a sale by the local Law, as in Ireland." 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 circum- stances of the mortgagor, he or his representatives were unable to redeem it. 540. Though a power of sale be harshly exercised, 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.’ But where the power of sale is given to a trustee, it is his duty to attend equally to the interests of both parties.’ And a mortgagee ought not to exercise a power of sale for other purposes than the recovery of his money.‘ And if he sells, after tender of principal and. interest (and costs, unless they are unascertained, and the se- curity ample), the sale will be set aside, as against him and a‘purchaser with notice of the tender.’ 541. 1 St. 2 1826; 2 Sp. 676-8. 2 2Sp. 634, 646. 5 2 Sp. 636. * Robertson v. Norris, 1 Gif. 421; affirmed on appeal.* 5 Jenkins v. Jones, 2 Gif. 99.7 * Jones on Mortg. 2 1801, note. + In this country foreclosure of mortgaged property is effected by judicial sale, and generally is the subject. of statutory provisions, though independently of any statutory provisions, Equity has ju- risdiction to order a sale and provide for carrying it out. Jones on Mortg. ¢ 1573. 292 MORTGAGES OF REALTY. A sale may be made without notice to the mortgagor, and without his concurrence, unless that is made a con- dition.” 542. Where notice to the mortgagor is required, a clause that a purchaser should not be required to ascertain that notice had been given, and that the mortgagee’s receipt should be a sufficient discharge, does not apply to a case where the purchase is made with actual knowledge that such notice has not been given.’ 548. Where the surplus produce, on the execution of a power of sale in a mortgage in fee is directed to be paid to the mortgagor, his executors, etc., this is not of itself a conversion of the equity of redemption into personal estate. If the sale takes place in the life- time of the mortgagor, the surplus is personal estate ; but if he dies before the sale is made, the equity of re- demption descends to the heir, and he is entitled to the surplus.’ 544. A trustee for sale cannot become the purchaser.‘ But a second mortgagee may buy under a power of sale from the first mortgagee ; and in such case he will 1 2 Sp. 685; Newman ». Selfe, 33 Beav. 522. ? Parkinson v. Hanbury, 1 Drew. & Sm. 143. 5 2 Sp. 636. ‘ 2 Sp. 636; Turner, L. J., in Parkinson v. Hanbury, 2 D. J. & §. 450.* * Jones on Mortg. 3 1876; Michoud v. Girod, 4 How. Sup. Ct. 503. But where the sale is made by judicial process, there is usually no restraint upon the purchase of the property by the mortgage creditor. Jones on Mortg. 2 1882. MORTGAGES OF REALTY. 293 ‘obtain, as aguinst the mortgagor, an irredeemable title to the property.' 545. Where there are several incumbrances, a decree for sale of an incumbered estate does not alter the relative rights of the parties ; the purchase-money is substituted for the estate? 546. A mortgagee who sells a part of the mortgaged property, must apply the proceeds of sale, first, in pay- ment of interest and costs; and then he must either pay the balance to the mortgagor, or apply it in re- duction of the principal. 547. The Court will not prevent a mortgagee é : oncurrent from using all the remedies belonging to his aaa character of mortgagee, and exercising all the powers that are given to him, as and when he pleases, even concurrently.* A power of sale is only an addi- tional remedy, and therefore does not interfere with the right of the mortgagee to foreclosure.’ If a debt is secured by the mortgage of real estate, and also by covenant and collaterally by bond, the mortgagee may pursue all his remedies at the same time. If he ob- tains full payment on the bond or covenant, the mort- gagor is, by the fact of payment, entitled to redeem the } Parkinson v. Hanbury, 1 Dr. & Sm. 148; Shaw'v. Bunny, 33 Beav. 494; 2D. J. & 8S. 468; Kirkwood v. Thompson, 2 Hem. & M. 392.* 2 2 Sp. 678. 3 Thompson v. Hudson, L. R. 10 Eq. 497. 4 2 Sp. 634. 5 2 Sp. 636. * Jones on Mortg. 3 1884 and note. } Id. 2 1215. t Id. ¢ 1221. 294 MORTGAGES OF REALTY. estate, and foreclosure is prevented or not allowed. But if the mortgagee obtains only part payment on the bond or covenant, he may go on with his foreclo- sure suit, and, giving credit in account for what he has recovered on the bond or covenant, he may fore- close for non-payment of the remainder. On the other hand, if he obtains a foreclosure first, and alleges that the value of the estate is not sufficient to satisfy the debt, he is not absolutely precluded from suing on the bond or covenant; but it is held by doing so he gives to the mortgagor a renewed right to redeem, or, in other words, opens the foreclosure; and, conse- quently, upon the commencement of an action against the mortgagor on the bond after foreclosure, he may proceed to redeem, and upon payment of the whole debt secured by the mortgage, he is entitled to have the estate back again, and the securities given up. After foreclosure, therefore, the Court will not restrain the mortgagee from suing on the bond, provided he retains the mortgaged estate in his own power, ready to be redeemed, in case the mortgagor should think fit to avail himself of the opening of the foreclosure.’ 548. But if a mortgagee (except under a power of sale) so deals with the mortgaged estate as to render it im- possible for him to restore it on full payment, the Court will prevent his suing at Law to recover the mortgage-money ; as where he joins transferees of the equity of redemption in an alienation of the property 1 2 Sp. 682.* * See also Jones on Mortg. 2 1218, 1219. MORTGAGES OF REALTY. 295 without being authorized by the mortgagor, and re- ceives no part of the purchase-money.’ 549. If a mortgagee sells under a power of sale and the sale does not realize enough to pay off the mortgage debt and interest, he may sue the mortgagor on his covenant for the balance.’ 550. “IV. We have already seen that as long as yy scien. the mortgagor continues in possession, he has eee aright of redemption, even at Law, under the stat. 15 and 16 Vict. c. 76, ss. 219, 220, if an ac- tion of ejectment is brought against him, and no suit for redemption or foreclosure is pending in a Court of Equity. And until foreclosure, the mortgagor, whether in possession or not, is considered in Equity as sub- stantially the owner of the estate, though his owner- ship is subject to restrictions for the protection of the mortgagee. Hence, if the mortgagor applies to be allowed to redeem, before the right of re- , guity of demption is lost by a lapse of twenty years, Tedemption. during which no acknowledgment has been made by the mortgagee of the mortgagor’s title or of his right of redemption, the mortgagee will then be treated pre- cisely as a trustee for the mortgagor, inasmuch as he will be compelled to reconvey the estate, and account for every kind of profit that he has made in the ordinary way, or which, but for his wilful default, he might have made? 551. 1 Palmer v. Hendrie, 27 Beav. 349; Rudge v. Richens, L. R. 8 C. P. 358. ° Rudge v. Richens, L. R. 8 C. P. 358. 8 See St. 2 1013, 1016, 1028a; and 3 and 4 Will. IV, v. 27,8. 28; 2 Sp. 644, 645, 648, 710, 806. 296 MORTGAGES OF REALTY. The common equity of redemption, or ordinary right which the mortgagor has in Equity of redeeming the estate, is so inseparable an incident to a mortgage, that it cannot be disannexed from such a transaction, or controlled even by an express agreement.’ And this constitutes an equitable estate in the land, which may be granted, devised, and entailed; and if en- tailed, might have been barred by a fine or recovery, and may now be barred by a disentailing deed, and is liable to a tenancy by the curtesy, and since the statute 3 and 4 Will. IV, c. 105, s. 2, to dower. 552. A mortgagor may, by a subsequent deliberate act, extinguish his equity of redemption. Thus, a mort- gagee may purchase the equity of redemption of the mortgagor. But the court views such a transaction with jealousy. And if a mortgagor in embarrassed circumstances conveys his equity of redemption (under pressure for payment of the mortgage debt), for a sum considerably less than its value, the sale will be set aside.t 553. The owner of the equity of redemption of part of the estate in mortgage cannot separately redeem his part; the mortgagee has a right to insist that the whole of the mortgaged estate shall be redeemed to- gether. And where a mortgagee lends two distinct sums to the same mortgagor on two securities, although 1 St. 2 1019; 2 Sp. 618, 619, 628. ? St. 21015; 2 Sp. 642, 645. 2 Sp. 654.* 4 Ford v. Olden, L. R. 3 Eq. 461. * 2 Sp. 666.t * Jones on Mortg. 2 711. + Jones on Mortg. 2 1072. MORTGAGES OF REALTY. 297 they be only equitable securities, and although created by two distinct instruments, and at different times, and although the property in one be real and the other personal, the mortgagor, or any one claiming under him (even a purchaser of the equity of redemption or mortgagee of the estate sought to be redeemed, who had no notice of the mortgage on the estate not sought to be redeemed), cannot redeem the property comprised in one security without redeeming the other also; for the person who has the two mortgages has a right to consolidate them, so as to insist on both being paid, off together. At least this is the case where the security not desired to be redeemed is defective in title or de- ficient in value. And where two mortgages of distinct estates originally vested in different mortgagees are transferred to one person, even with notice of a second mortgage, the second mortgagee cannot redeem the one | estate without the other. And the transferees of a mortgage made by a person who afterwards: becomes bankrupt, are entitled to tack a debt insufficiently se- cured by a previous mortgage of other property made to them directly, though they took the transfer after and with notice of the adjudication. And where the mortgagee has sold one estate under a power of sale, he may apply the balance of the proceeds of that estate, after payment of the mortgage debt upon it, towards payment of the debt upon the other.’ 554. 1 Vint v. Padget, 1 Gif. 446; 2D. & J. 611; 3D. F. & J. 611; Selby v. Pomfret, 1 Johns. & H. 336; 3 D. F.& J.595; St. 2 1023, n.; 2 Sp. 651, 666, 726 ; Smith’s Compendium of the Law of Prop- 298 MORTGAGES OF REALTY. Who may Even a tenant for life, a tenant by the redeem. curtesy, a jointress, a tenant in dower in some cases, a reversioner, a” remainder-man, a judg- ment creditor, a tenant by elegit or by statute merchant, the lord of a manor holding by escheat (as regards a mortgage for a term of years, created by a mortgagor who has died without heirs, though not as regards a mortgage in fee, under which the whole estate has passed to the mortgagee, so that there can be no es- cheat), and indeed every other person having a legal or equitable interest in or lien on the land, may insist on redeeming the mortgage, in order duly to enforce his claim; and when any such person does so redeem, he or she becomes substituted to the rights and inter- ests of the original mortgagee. But, as a general rule, a cestui que trust must redeem through his trustee; and ‘no creditor or annuitant or legatee of the mortgagor, who has not a specific security upon the property mort- gaged, can redeem, though the mortgaged property would, if redeemed, be applied in a course of admin- istration in discharge of his claims.!. As regards the right to redeem, there is no substantial difference be- erty, 5th ed., par 1060; Wicks v. Scrivens, 1 Johns. & H. 215; Neve v. Pennell, 2 Hem. & Mil. 170; Beevor v. Luck, L. R. 4 Eq. 237.* 1°St. 3 1023; 2. Sp. 660-3; Mildred v. Austin, L. R. 8 Eq. 220; Dawson v. Bank of Whitehaven, L. R. 4 Ch. D. 639. * But in this country the prevailing deetrine is, that a mort- gagor may always redeem by paying the specific debt secured by the mortgage, together with such prior liens as the mortgagee may have been compelled to pay for the protection of the mortgage. See Jones on Mortgage, 3 1083, and cases there cited. + Jones on Mortg. 3 1055, et seq. MORTGAGES OF REALTY, 299 tween a mortgage in the form of a trust for sale and a mortgage in the ordinary form.’ 555. A purchaser of an equity of redemption cannot re- deem an existing mortgage until his purchase is com- pleted.? 556. Every person who has a right to redeem the mort- gage, may redeem any prior incumbrancer, on pay- ment of principal, interest, and costs due to him; the redeeming party being also liable to be redeemed by those below him, who are all liable to be redeemed by the mortgagor. 557. In settling the accounts between the mort- annual gagor and mortgagee, where the latter has *** been in possession, sometimes annual rests are made, so that the excess of rent or value beyond the interest may be applied in liquidation of the principal. Asa general rule, rests are not made where the interest of the mortgage is in arrear at the time when the mort- gagee takes possession. But where there is a special reason for making annual rests, as where no arrears or interest are due at the time when the mortgagee’ enters in possession, or any agreement exists between the parties by which the interest in arrear is converted into principal, there, and in such cases, annual rests will be made.* Where the mortgagee has sold, and . Wicks v. Scrivens, 1 Johns. & H. 215; Kirkwood v. Thomp- son, 2 Hem. & M. 392. 2 2 Sp. 668. 5 2 Sp. 665. 4 St. 210164; 2 Sp. 809; Scholefield v. Lockwood (No. 3), 32 Beay. 439.* * Jones on Mortg. 3 1139, 1140. See also Gibson v. Crehore, 5 Pick. 160. 300 MORTGAGES OF REALTY. has retained sale-money beyond the interest and costs due, a rest must be made at the time of the receipt of such moneys. Annual rests will equally be directed in respect of the occupation rent fixed on a mortgagee in possession, as in respect of rents received.’ 558. The mortgagor is not entitled to the pos- session in respect of his equitable estate, unless there is some special agreement to that effect, but he holds it solely at the will of the mortgagee, who may at any time, without giving any prior notice, recover the same by ejectment against him, un- less he is ready to pay principal, interest, and costs, or against his tenants under a tenancy created subse- quently to the mortgage; and he is not even entitled to reap the crop. But so long as he continues in pos- session by the permission of the mortgagee, he is en- titled to take the rents and profits in his own right, without rendering any account whatever to the mortgagee, though the mortgaged property may have become an insufficient security. But he will not be permitted to do anything which may diminish the security of the mortgagee. Yet he may cut down timber when in possession, unless the land alone would be a scanty security? 559. eres By the Judicature Act, 1873 (36 and 37 Priamiby Wict. c. 66), s. 25 (5), “ A mortgagor en- mortgagor. titled for the time being to the possession or Possession. Rents. Waste. 1 Thompson v. Hudson L. R. 10 Eq. 497. 2 2Sp. 811. 3 St. 3 1017; 2 Sp. 646, 648. MORTGAGES OF REALTY. 301 receipt of the rents and profits of any land as to which no notice of his intention to take possession or to enter into the receipt of the rents and profits thereof shall have been given by the mortgagee, may sue for such possession, or for the recovery of such rents or profits, or to prevent or recover damages in respect of any trespass or other wrong relative thereto, in his own name only, unless the cause of action arises upon a lease or other contract made by him jointly with any other person.” 560. A mortgagee in possession is not obliged Expendi- to lay out money any further than to keep ‘* the property in necessary repair; and he has no right to make it more expensive for the mortgagor to redeem than may be required for the purpose of keeping the property in a proper state of repair, and of protecting the title to the property. Hence he will not be allowed for general improvements made without the consent or acquiescence of the mortgagor.’ 561. ‘V. Where a mortgage is by assignment of | a leasehold interest, the mortgagee, unless paee a there is a special provision to the contrary, as between the mortgagor and the mortgagee, takes the leasehold subject to the covenants and obligations of the original lease. But if an underlease, instead of an assignment, is taken, the mortgagee is protected. 562. A mortgage, whether legal or equitable, of leasehold 1 St. 21016b; 2 Sp. 808.* 2 2 Sp. 614. * Jones on Mortg. % 1126-1128. 302 MORTGAGES OF REALTY. premises, includes the goodwill of a trade followed on the premises, and the fixtures... 563. neues Neither the mortgagor nor the mortgagee renewable of a renewable leasehold is bound to renew, leasehold. eee . unless it is a part of his contract to do so. If a renewable leasehold is assigned by way of mort- gage, an agreement between the landlord and the mort- gagee, without the concurrence of the mortgagor, will not bind the mortgagor.’ 564. at VI. Where the relation of mortgagor and . Rent ae es : instead of mortgagee subsists, it is hardly possible that an agreement under which the mortgagee is to hold the land at a rent as an equivalent for interest can be supported; it being considered, independently of the question as to usury in cases under the old law, to be against public policy that such agreements should be permitted to take place between parties, one of whom has an obvious advantage over the other. 565. sides VIL. A solicitor may take a mortgage gage for security from his client for costs already due, but (except so far as the stat. 33 and 34 Vict. c. 28, may apply) not for costs to become due.* 566. Giga: . vrll Lands are sometimes conveyed by yeyancein’ way of security to a third person agreed upon by the borrower and a lender, or to the lender himself, in trust, upon non-payment of the loan at the appointed time, and usually upon notice, to sell the estate, to satisfy the debt out of the proceeds. This is a species of mortgage. It is not such a trust for sale 1 2 Sp. 687. > 2 Sp. 650; Coote Mortg., 3d ed. 122, 344. 3 2 Sp. 617. ‘ 2 Sp. 630. MORTGAGES OF REALTY. 303 as the mortgagor can enforce; because the discretion as to selling or not is in the mortgagee alone. On the other hand, the mortgagee cannot foreclose, but is lim- ited to his remedy by sale. And in this case, though the mortgagor covenant to join, the purchaser cannot require that he should join in the conveyance.’ 567. 1 2 Sp. 634; Locking v. Parker, L. R. 8 Ch. Ap. 30.* * Jones on Mortg. 2 1764, et seg. The delay and expense inci- dent to a foreclosure and sale in Equity have brought power of sale mortgages and trust deeds into general use both in England and in this country. A power of sale, whether vested in the creditor himself or in a trustee, affords a prompt and effectual security. Although in several of the States a mortgage is by statute or ju- dicial interpretation declared to be a mere security for the pay- ment of a debt, and not a conveyance of the legal title, yet this view does not in any way impair the doctrine of powers to sell. A deed of trust is often preferred to a mortgage on account of the intervention of a disinterested person as trustee, who becomes the agent of both parties, and should perform his duties with the strictest impartiality (Sherwood v. Saxton, 63 Mo. 78, and cases cited). A resort to proceedings in Equity is more frequent under deeds of trust than with mortgages, sometimes to control the ad- verse action of the trustee, and a trustee who has once accepted the trust is not allowed to lay it down without the assent of the bene- ficiary or the decree of a Court of Equity (Drane v. Gunter, 19 Ala. 731). The sale, however, is by virtue of the power and not of the decree when the Court enforces the power, and upon the death of a trustee a Court of Equity has power to appoint a new trustee to execute the power of sale (Holden v. Stickney, 2 MacArthur (D.C.), 141). -No particular form of words is necessary to constitute the power. The essential provisions of it should be clearly and fully expressed, for the title of the purchaser under the power rests upon ‘the authority there given (Graeme v. Cullen, 23 Gratt. (Va.), 266). If in any case it is attempted to pervert the power from its le- gitimate purpose, and to use it for the purpose of oppressing the debtor, or of enabling the creditor to acquire the property himself, 304 MORTGAGES OF REALTY. IX. Where a person affects to make a IX. Defec- 7 é tivemort- mortgage, but the deed is defective, further assurance will be enforced in Equity.’ If a 1 2 Sp. 639. a Court of Equity will enjoin the sale, or will set it aside after it is made (Jones’s Mortg. ¢ 1801). So long as the mortgagee is clearly within the authority given by the power, an intended sale will not be restrained, although the exercise of it be harsh and improvident. The grounds for interference must be very strong, and must show probable irreparable injury or a clear breach of trust (Id. 3 1802). The notice usually required in powers of sale is a publication for a certain length of time in one or more newspapers published in the county in which the premises are situate. And when the validity of a sale under a power is ques- tioned by the debtor for defect of advertisement, the burden of proving a proper advertisement rests upon the purchaser or other party insisting on the sale (Id. 4 1827, 1829). The advertisement of the sale should fully comply with the terms of the power, and give with clearness all reasonable information as to proposed sale, that it is by virtue of a power, etc., and that there has been a default (Id. 4 1839). The property should be properly described, and the notice must show who orders the sale (Id. 3 1843). A trustee under a deed of trust is bound to render the sale as beneficial as possible to the debtor, and should sell in parcels (if the property is susceptible of subdivisions) if it will bring more than selling as a whole (Id. 2 1859). The purchaser takes a title divested of all incumbrances made since the creation of the power (Id. 2 1654, 1897). A mortgagee or trustee with power to sell must sell fairly and for the best price he can obtain. If a trustee permits property to be sacrificed by a sale for a small fraction of its value, the sale will be set aside (Id. 1909). A secret arrangement between the mort- gagee and a person interested in buying the property, whereby competition is prevented, avoids the sale (Id. 31910). Any fraud or deception practiced on the owner, in consequence of which he has lost his rights, is sufficient ground for setting aside the sale MORTGAGES OF REALTY. 305 man, after making a defective mortgage to one person, makes a mortgage by an assurance which is effectual to another person, the second will prevail, if he lent his money on the security of the land, and without ‘notice; because he has equal equity and the legal title.* But (so far at least as the stat..1 Vict. c. 110, does not alter the case) a defective mortgage would prevail against a mere subsequent judgment creditor, who is in the nature of a volunteer as regards his lien on the land 568. X. A mortgagee, whose money is not paid a lige “j : X. Pay- on the day appointed by the proviso, is en- a titled to six months’ notice previously to its being paid. If the money is not tendered on the day of the expiration of the notice, the mortgagee is en- titled to another six months’ notice. If the mortgagee refuse to receive his money after due notice, interest will cease from the time of the tender, provided the mortgagor keep the money continually ready and make no profit by it. The first mortgagee is bound to ac- cept payment of his principal, interest, and costs when tendered by a second mortgagee, and thereupon to con- 1 2 Sp. 639. 2 2 Sp. 639, 640.* (Id. 21911). But mere inadequacy of price is no ground for va- cating a sale if fairly conducted in every respect (Id. ? 1915). It is a settled rule of law in several States that where a mort- gage or deed of trust has been given to secure the payment of sev- eral notes, which become due at different times, the notes have priority of lien in the order in which they become payable (Id. 2 1699, 19389, and cases cited). * See also Jones on Mortg. 3 460, 461. 26 306 MORTGAGES OF REALTY. vey to him the estate, whether the tender be made with or without the privity of the mortgagor ; and, generally speaking, he is justified in accepting payment from, and transferring the legal estate to, any person who tenders the principal, interest, and costs due to him, that person being interested in the equity of redemp- tion.’ 569. If the condition is for payment to the mortgagee, his heirs or his executors, the mortgagor, after the death of the mortgagee and before forfeiture, may pay either the heir or the executor, as he pleases, but after forfeiture the money is to be paid to the executor ; and even if paid to the heir before forfeiture, it belongs to the executor ; because in Equity a mortgage debt is considered as part of the mortgagee’s personalty ; the money came from that source, and is to be returned to it.” 570. When an agreement for a mortgage contains a stipu- lation that the principal money shall not be called in for a certain time, the postponement is conditional on punctual payment of interest.’ 571. If a mortgagor pays off the principal to the solici- tors of the mortgagee, instead of the mortgagee him- self, without ascertaining that they are authorized to receive it, he does it at his own risk. So that if the solicitors misappropriate the money, the mortgagor 1 2 Sp. 652, 653.* 2 See 2 Sp. 650, 651.4 5 Seaton v. Twyford, L. R. 11 Eq. 591. * Jones on Mortg. 2 877, 878. + Id. 3 1931, note. MORTGAGES OF REALTY. 307 will remain liable to the mortgagee or his assignee. 572. XI. There is a kind of mortgage called a x1 wen Welsh mortgage, which, however, has now ™tege fallen into disuse, in which there is no condition or proviso for repayment at any time. The agreement is that the mortgagee, to whom the estate is conveyed, shall receive the rents till his debt is paid; and in such case the mortgagor and his representatives are at liberty to redeem at any time.” 573, XII. Where a husband is seized jure yy wort. uxoris, and he and his wife join in a mort- 86°F gage, reserving the equity of redemption to ‘** him and his heirs, he has the equity of redemption jure uxoris as he before had the legal estate, unless it is evident that the transaction is more than a mere mortgage, or the limitation of the estate is perfectly distinct from the equity of redemption.’ But at the same time the intention to alter the previous title may be manifested by the language of the proviso itself, and there is no necessity for an express declaration or a recital to that effect.* 574. Where a mortgage is made of the wife’s lands, to secure money borrowed by. the husband—and in the 1 Withington v. Tate, L. R. 4 Ch. Ap. 288. 2 2 Sp. 616. : 3 2 Sp. 644. See also Earl of Huntingdon v. Countess of Hun- tingdon, 2 Lead. Cas. Eq., 2d ed. 388, et seq.; Eddlestone v. Col- lins, 3D. M. & G.1; Whitbread v. Smith, Id. 727; Heather ». O'Neil, 2 D. & J. 399; In re Betton’s Trust Estates, L. R. 12 Eq. 553. ; 4 Atkinson v. Smith, 3 D. & J. 186, 192. 308 MORTGAGES OF REALTY. absence of evidence to the contrary, the loan will be presumed to have been obtained for his purposes—his estate, especially where he covenants to pay the debt, is made to pay the mortgage-money, at the instance of the wife or of the heir of the wife; although the husband may have paid off the mortgage, and taken an assignment in trust for himself, his execu- tors, etc., and though by consequence legacies given by the husband may be defeated ; for the wife joining in the security does not make it less the debt of the hus- band, and her estate is considered as surety only for the debt." 575. XL First SII. After notice of a second mortgage, morgage’, the first mortgagee is answerable to the to second. second for the rents and profits he has re- ceived or might have received.” And where the mort- gagee enters, and then permits the mortgagor to re- ceive the rents, he will be accountable, as mortgagee in possession, to a subsequent incumbrancer, of whose incumbrance he had notice.’ 576. XIV. The mortgagee, or those claiming under him, cannot dispute the title of the mortgagor.’ 577. XV. An assignment of a mortgage is an ment ef. assignment of the debt, and it is not neces- mortgage: sary that notice should be given to the mort- gagor” 578. If a mortgagee in possession assigns over his mort- XIV. Title. " 2 Sp. 841, 842. See Scholefield v. Lockwood (No. 1), 32 Beav. 434, as a case to which this doctrine did not apply. 2 2 Sp. 648. 5 2 Sp. 806. 4 2 Sp. 654. ° 2Sp. 645; Withington v. Tate, L.'R. 4 Ch. Ap. 288. MORTGAGES OF REALTY. 309 gage without the assent of the mortgagor, the mort- gagee is still bound to answer for the profits both before and after the assignment, though assigned only for his own debt; for he is under a trust to answer for the profits of the pledgé.’ 579. The assignee of a mortgagee cannot stand in any different character or hold any different position from that of the assignor himself.? 580. Where a person obtains a mortgage without con- sideration and the mortgagee transfers it to a third person, who has no notice of the want of considera- tion, neither the transferor nor the transferee can en- force it, but it will be ordered to be cancelled.? 581. If a person pays off a first mortgage, and takes the deeds and a new mortgage without notice of a second equitable mortgage, he will be entitled to priority over the second equitable mortgagee who had notice of the first mortgage.* 582. XVI. The purchaser of a mortgage, as a xyz what general rule, has a right to claim, against Purchaser the mortgagor, and all deriving title under %,"3°* him, the full amount of what is due on the security, whatever he may have given; for as he takes the risk, so he is allowed the gain, if any. But an heir, a trustee, an agent, or an executor of the mort- ' 2 Sp. 656. 2 Walker v. Jones, L. R.1 P.C. 50. See Pease v. Jackson, L. R. 3 Ch. Ap. 576. 3 Parker v. Clarke, 30 Beav. 54.* 4 Pease v. Jackson, L. R. 3 Ch. Ap. 576. * Jones.on Mortg. % 1470. 310 MORTGAGES OF REALTY. gagor, can only claim the amount which he gave for it; unless he has bought in that security to protect one of his own.' 583. XVII. A gift of a mortgage security is a of mortgtse gift of all the testator’s interest in the money security. and the security.” 584. XVIII. Where a testator devises all his veetya veal estates, whatsoever and wheresoever, mere tiie legal estate in mortgaged premises will pass by the will, unless a different intention is to be collected from the context. But it would seem that a general devise, or even a particular devise of the mortgaged lands, will not of itself have the effect of carrying the beneficial interest in the mortgage.® 585. XIX, Right 1X. Generally speaking, a purchaser of of per oe «© an equity of redemption, with notice of sub- sarge. Sequent incumbrances, stands in the same oe situation, as regards the subsequent incum- brancers, as if he had himself been the mortgagor. Right or nd where a second equitable mortgagee, scttble ~~ Who becomes such without notice of the first mortgagee. equitable mortgage, afterwards, with notice of the first incumbrance, obtains the legal estate from the mortgagor, he holds the legal estate subject to the first incumbrance.* 586. * 2 Sp. 657, 739; Hobday v. Peters (No. 1), 28 Beav. 349. 2 2 Sp. 655. 3 2 Sp. 655; Braybroke v. Inskip, Tudor’s Lead. Cas. on R. P., 2d ed. 876, et seg.; Bowen v. Barlow, L. R.11 Eq. 454; 8 Ch. Ap. 171. 42 Sp. 746. * Jones on Mortg. 3 740, 752, et seq. MORTGAGES OF REALTY. 311 XX. If a mortgage is cancelled by a mort- dt eee : XX, Extin- gagee, and it is so found in his possession on guishment his death, it is as much a release as cancelling ee debt. by a bond. But it does not convey or revest “"“"® the estate in the mortgagor ; for that must be done by some deed; the legal estate in such a case descends upon the heir; but there being no debt at Law or in Equity, at least upon the mortgage, the Court holds the heir to be a trustee for the mortgagor.’ 587. XXI. If the debt is paid off, the mort- ys7 or by gage is extinguished in Equity, and the Payment, mortgagee is deemed a trustee for the mortgagor.? And an extinguishment of the mortgage ,.,, debt will take place where the mortgagee ™°"8°™ becomes the absolute owner of the equity of redemp- tion; for then the equitable estate merges in the legal ; unless it was apparently his intention, or it is manifestly for his interest, to keep the incumbrance alive.* 588. Where a mortgagor and mortgagee join in conveying the mortgaged premises to a new mortgagee, the old mortgage may not be extinguished, as regards priority over a subsequent incumbrance, though the old mort- gage debt be paid off by the new mortgagee, and though there be a new covenant by the mortgagor, and a new proviso for redemption, and though there be no assignment of the old mortgage debt, if the operative words extend in the usual way to all the right and title of the old mortgagee in the premises.* 589. 1 2 Sp. 749. 2 2 Sp. 640. 3 St. 2 1085 b; see Hayden v. Kirkpatrick, 34 Beav. 645. * Phillips v. Gutteridge, 4 D. & J. 531. 312 EQUITABLE MORTGAGES. XXII. Themortgagee cannot be compelled cma” te reconvey until the money is in pocket; ci payment into Court is not sufficient.’ 590. oie XXIII. Where a person makes a mort- Death of gage in fee, and dies intestate without heirs, mortgagor intestate, the equity of redemption does not escheat, to hele, the Crown, but belongs to the mortgagee, subject to the debts of the mortgagor.’ 591. SECTION II. OF EQUITABLE MORTGAGES. BESIDES mortgages created by a formal instrument, and valid at Law as well as in Equity, there are Equitable Mortgages. These are created either by a written instrument, or by a deposit of deeds with or without writing? Any written agreement or direc- tions, or other instrument in writing, showing that it was the intention of a debtor thereby to make his land or other property a security for the debt, will be 1 2 Sp. 653. ? Beale v. Symonds, 16 Beav. 406. 3 2Sp. 777; Russel v. Russel, 1 Lead. Cas. Eq., 2d ed. 541, et seq.* (a) On this subject see stat. 7 and 8 Vict. c. 76, s. 9, repealed by stat. 8 and 9 Vict. c. 106, s.1; and see stat. 13 and 14 Vict. e. 60, ss. 19, 20; 37 and 38 Vict. c. 78, s. 4. * Mandeville v. Welch, 5 Wheat. 277; Jones, Mortg. 2 163, 179. EQUITABLE MORTGAGES. 313 equivalent in Equity to an actual mortgage by deed or to a pledge. And a deposit of all or some of the material deeds or documents of title constitutes an equitable mortgage, though they do not show a good title in the depositor (as where they do not comprise the conveyance to him), if made with a creditor (whether with or without any written memorandum, and even without a word passing) as security for an antecedent debt, or on a fresh loan of money, and if received by him’ (as far as it would appear) in good faith and in the belief that they were the title-deeds of the estate.” 592. Where the Court is satisfied of the good faith of the person who has got a prior equitable charge, and that he was led to believe that he had got the necessary deeds, the Court will not hold that he was bound to examine the deeds. And if he does not, and they do not show any title in the mortgagor, yet such equitable mortgagee is entitled to priority, even over a second equitable mortgagee, without notice, who has deeds which show a complete title in the mortgagor, and has a memorandum of deposit. This is only defensi- ble on the ground of public convenience, in facilitat- 1 2 Sp. 777-779; Fenwick v. Potts, 8 D. M. & G. 506; Daw ». Terrel, 83 Beav. 218.* © 2 St. ¢ 1020; 2 Sp. 781; Lacon v. Allen, 3 Drew. 579; Roberts v. Croft, 24 Beav. 223; 2D. &J.1; Dickson v. Muckleston, L. R. 8 Ch. Ap. 155.+ 8 Dixon v. Muckleston, L. R. 8 Ch. Ap. 159. * Jones Mortg. 2 187; Edwards v. Trumbull, 50 Pa. St. 509. + Jones Mortg. ¢ 180, 182. 27 314 EQUITABLE MORTGAGES. ing loans by means of equitable mortgages. It illus- trates the great danger of lending on such securities. 593. The deposit will cover subsequent advances, if it clearly appears that they were made upon the faith of that security, or that the original deposit was con- tinued with an agreement for a further advance.’ 594. The meaning and object of the deposit may be ex- plained by parol evidence.’ And evidence is admissi- ble to show that a delivery of deeds to a third person, by a person not being the party whose estate is sought to be charged, even though no money passed at the time, constituted an equitable mortgage.’ 595. An equitable mortgage, by deposit of title-deeds, will have preference over a subsequent purchaser or mort- gagee of the legal estate with notice; but not over a sub- sequent purchaser or mortgagee who has the legal estate, and had no notice of such equitable mortgage.* 596. An equitable deposit with memorandum of charge by a devisee is an alienation which pro tanto prevents a creditor of the testator from subsequently obtaining a charge on the estate as assets, under the stat. 3 and 4 Will. 4,¢. 104.5 597. An equitable incumbrancer on property, who has distinct notice of a prior incumbrance, cannot, by con- cealing his knowledge from his assignee, give such assignee a better right than that which he himself pos- sesses.© 598. 12 Sp. 781. 2 2 Sp. 784. 3 2 Sp. 784, 4 Coote Mortg., 3d ed. 170. ® British Mutual Investment Co. v. Smart, L. R. 10 Ch. Ap. 567. § Ford v. White, 16 Beav. 125. MORTGAGES AND PLEDGES OF PERSONALTY. 315 Where a trustee of funds invested on a mortgage in his name, deposits the deeds, without notice of the trust, to secure an advance to himself, the cestuis que trust are entitled to priority over the equitable mort- gagee, and to delivery up of the deeds.’ 599. Where a simple contract debt has been secured by a deposit of deeds, unaccompanied by any stipulation as to interest, or any memorandum from which an exclu- sion of interest can be inferred, the mortgagee is en- titled to interest at the rate of £4 per cent., on the principle that adeposit of deeds to secure a loan is to be considered as an agreement to execute a mortgage of the property comprised in the deeds with interest.’ 600. In James v. James (Li. R. 16 Eq. 153), the Lord Justice James (sitting for V.-C. Wickens) held that the relief to which an equitable mortgagee by deposit is entitled, is foreclosure and not sale. But. the point seems doubtful 601. SECTION III. OF MORTGAGES AND PLEDGES OF PERSONAL PROPERTY. I. A MORTGAGE of personal property is @ 1 4 mort- transfer of the ownership itself, subject to be Si%5,0"32 defeated by the performance of the condition ee within a certain time. But a pledge only %*™ 1 Newton v. Newton, L. R. 6 Eq. 135. 2 In re Kerr’s Policy, L. R. 8 Eq. 331. 3 See St. 2 1026; 2 Sp. 676-8. 316 MORTGAGES AND PLEDGES OF PERSONALTY. passes the possession, or at most a special property, to the pledgee, with a right of retainer till the debt is paid or the engagement is fulfilled." 602. II. A mortgage or a pledge of personal property may be held till a subsequent debt or advance, without notice of a mesne incumbranee, is paid, as well as the original debt (except in a case of a bankruptcy), on the ground that it may be presumed that the mortgagee or pledgee would not have lent the further sum except on the credit of the mortgage or pledge, and that he who seeks equity must do equity. This presumption may indeed be rebutted by circum- stances; but, unless it is rebutted, it will generally prevail in favor of the lien against the pledgor him- self, although not against his creditors having a spe- cific lien or interest in the property, or against subse- quent purchasers of the equity of redemption.’ 603. A mortgagee whose security exceeds the debt se- cured, may apply the balance in payment of any un- secured debt due to him from the mortgagor, as against the mortgagor’s executors.’ 604. ees III. A mortgagor of personal property aii to re- May redeem, if he applies within a reason- srortgauce's able time. But, on the other hand, the mort- righttosell. Gagee may, on due notice, sell the property, instead of proceeding to foreclose.* The reason would appear to be that on which a Court of Equity acts in not decreeing a specific performance of agreements re- 1 St. 2 1030; 2 Sp. 771. ? St. 1034; 2 Sp. 772, 778. ® In re Haselfoot’s Estate, Chauntler’s Claim, L. R. 13 Eq. 327 * St. 41031; 2 Sp. 637; Carter v, Wake, L. R. 4 Ch. D. 605. II. Tacking. MORTGAGES AND PLEDGES OF PERSONALTY. 317 specting personal property ; namely, that other things of the same kind, and of the very same worth, even to the owner himself, may be purchased for the sum which the articles in question fetch ; and therefore if such property is mortgaged, the mortgagee may prop- erly be allowed to sell it, on due notice, without the inconvenience of foreclosure. 605. IV. If a person transfers his shares in a IV. Mort- company by way of mortgage, and the mort- gase of gagee, as registered owner, becomes liable for ea calls or other payments, he cannot compel his mort- gagor to indemnify him, unless he comes to redeem.’ 606. V. The mortgagee of a ship is entitled toy yortgage the accruing freight from the time he takes °f **P- possession. A security valid in Equity may be given upon freight to be earned or a cargo to be acquired.’ 607. The first registered mortgagee of a ship, by taking possession of her before the freight is completely earned, obtains a legal right to receive the freight, and to re- tain thereout not only what is due on his first mort- gage, but also the amount of any subsequent charge which he may have acquired on the freight, in priority to every equitable charge of which he had no notice; and it makes no difference that a subsequent incum- brancer was the first to give notice to the charterers of his charge on the freight.* 608. A legal mortgage of a ship must be in the form 1 2 Sp. 774. 2 2 Sp. 775. 3 2 Sp. 775. + Liverpool Marine Credit Co. v. Wilson, L. R. 7 Ch. Ap. 507. 318 MORTGAGES AND PLEDGES OF PERSONALTY. described by the Merchant Shipping Act (17 and 18 Vict. c. 104). Prior to the stat. 25 and 26 Vict. c. 63, s. 3, an equitable mortgage was invalid.’ But by that enactment, “equities may be enforced against owners and mortgagees of ships in respect of their in- terest therein, in the same manner as equities may be enforced against them in respect of any other personal property.” 609. ; VI. In the case of pledges, if a time for ara Hehe redemption is fixed by the contract, still the ae pledgor may redeem it afterwards, if he applies to the Court within a reasonable time. If no time is specified for the payment, the pledgor may re- deem it at any time during his life, unless he is called upon to redeem by the pledgee; and if he fails in so redeeming it, his representatives may redeem it.2 610. VII. Plea- VII. On the other hand, the pledgee, on see's tights. giving due notice, may sell the pledge with- out any decree of sale? 611. In Carter v. Wake (L. R. 4 Ch. D. 605), Sir G. Jessel, M. R., held that the pledgee had no right to foreclose. 612. 1 Liverpool Borough Bank v. Turner, 2 D. F. & J. 502.* * St. @ 1032; 2 Sp. 637, 772, 773. 5 St. 21083; 2 Sp. 637, 771. * The Act of Congress of July 29th, 1850, requires every con- veyance of an American vessel including mortgages to be re- corded in the office of the Collector of Customs of the port where such vessel is registered or enrolled. Smith, Manual Common Law, Am. ed. (289), note. OF LIENS. 319 SECTION Iv. OF LIENS. Lirns in Equity are wholly independent rquitavie of the possession of the property. 613. general, If a consignee accepts a consignment, with express directions to apply it or the proceeds Hen ae of it in a particular mode, he cannot set up his general lien in opposition to those directions. In such a case only what remains after answering the particular directions, can become subject to the general lien. 614. The usual way of enforcing a lien in Equity is by a sale of the property to which it is attached.? 615. The lien of a solicitor on the deeds, books, and papers of his client, for his costs, is not solteltoy for like a lien-arising in the case of contract; it a has not the character of a pledge or a mortgage ; but it is merely a right to withhold the deeds, books, and papers, which have come into his possession as solici- tor, and not a right to enforce his claim against the client. It prevails as against the representatives of the client, but it is only commensurate with the right of the client, and is subject to the rights of third per- sons as against him ; so that a prior incumbrancer can- not be affected by it; and when a mortgagee is paid 1 Frith v. Forbes, 4 D. F. & J. 409. 2 St. 2 1217. 320 OF LIENS. off, the solicitor of the mortgagee cannot retain the deeds.! And a solicitor acting both for the mortgagee and the mortgagor, in the preparation of a mort- gage, has no lien on the title-deeds in his possession for costs due to him from the mortgagor, unless such lien is expressly reserved, even though the mortgagee may have known that the solicitor had such lien as against the mortgagor.’ 616. But a solicitor has a lien upon a fund realized in a suit, as to so much as may belong to his own client, for his costs of the suit or immediately connected with it; and this is a lien which he may actively enforce. 617. suites If one of two joint tenants of a lease re- joint news for the benefit of both, he will have a "lien on the moiety of the other joint tenant for a moiety of the fines and expenses.* 618. A trustee is entitled to a lien on the trust estate for his expenses.6 619. Annuitants scheduled to a trust deed do not acquire any lien upon the trust estate, unless they are made parties to the deed.’ 620. 1 2 Sp. 800, 801; Francis v. Francis, 5 D. M. & G. 108; Turner v. Letts, 7 D. M. & G. 243; see also Watson v. Lyon, Id. 288; and In re Bank of Hindustan, etc., Ex parte Smith, L. R. 3 Ch. Ap. 125; In re Faithful, L. R. 6 Eq. 325.* ? In re Snell, L. R. 6 Ch. D. 105. . ° 2 Sp. 802; Verity ». Wylde, 4 Drew. 427; Haymes v. Cooper, 33 Beav. 431. 4 2 Sp. 803. 5 2 Sp. 808. § 2 Sp. 104. of atrustee ; of annui- tants. * See also Stewart v. Flowers, 44 Miss. 513; In re Paschal, 10 Wall. 488, OF LIENS. 321 Where a testator gives a legacy to each of arse his daughters, on condition that she shall l- convey her share of certain real estate, to which the daughters were entitled, to the sons of the testator to whom he gives his residuary personal estate, and the daughters convey their shares of the real estate to their brothers, but do not obtain payment of their legacies, it has been held that the daughters are not entitled to any lien on the real estate for their legacies, but have a mere personal remedy.’ 621. 1 Barker v. Barker, L. R. 10 Eq. 438. 322 APPORTIONMENT AND CONTRIBUTION. CHAPTER IV. OF APPORTIONMENT AND CONTRIBUTION. 1 Juriedic. LUN several cases under these heads, as- tion. sistance may be had at Law. But even in these cases it may be necessary to resort to Equity, in- stead of proceeding at Law, in order to avoid a multi- plicity of suits; for where there are several parties, as each is only liable to contribute for his own portion, separate actions and verdicts are necessary against each.) 622. Ee teen oe hecntiaue e apportion- ? ? ? mente pense, or liability; and in the case of an apportionment of the latter class, a corresponding con- tribution is enforced, consequent on such an appor- tionment. 623. haa To mention an instance of an apportion- tions of the ment of a benefit, if an apprentice-fee is given, and the master afterwards becomes bankrupt, Equity will decree an apportionment.’ And where portions are payable to daughters at a certain age or on marriage, and maintenance is to be allowed, payable half-yearly, at specific times, until the portions are due, if one of the daughters should attain the given age at an intermediate period, the maintenance will be apportioned in Equity.® 624. 1 St. 2477, 478. 2 St. 2472, 478. 8 St. ¢ 479; 2 Sp. 462. APPORTIONMENT AND CONTRIBUTION. 323 On the other hand, with regard to aN AP- sHustra- portionment of, and contribution towards, an Dene incumbrance, loss, expense, or liability, in pens of the second the absence of an indication to the contrary, ‘** where several estates or parts of estates are comprised in one mortgage, and they become vested by devise, descent, or otherwise, in several persons, each estate or part of an estate mortgaged must, according to its value, contribute proportionally to keep down the in- terest or to pay off the principal! And so it is with different persons having distinct limited interests in an estate which is under mortgage.? And as between a tenant for life and a remainder-man under a will, the interest on the testator’s debts must be borne by the income as from the day of the testator’s death.’ 625. III. Ifa tenant in tail in possession pays . ced III. Volun- off an incumbrance on the estate, it will or- tary ais. dinarily be treated as extinguished, and the an ined remainderman cannot be called upon for a past contribution, unless the tenant in tail keeps tenant ie alive the incumbrance by some suitable as- ~ signment or otherwise manifests his intention to hold himself out as a creditor of the estate in lieu of the mortgagee ; because a tenant in tail in possession can make himself absolute owner of the estate ; and, there- fore, if he discharges incumbrances, he is presumed to do so in the character of owner, unless he clearly shows that he intends to become a creditor in respect of such discharge. But the like doctrine does not apply to a 1 St. 2 484. ? St. 2 485; 2 Sp. 837. 3 Barnes v. Bond, 32 Beav. 653. ; 324 APPORTIONMENT AND CONTRIBUTION. tenant in tail in remainder, whose estate may be alto- gether defeated, or to a tenant for life; for, if either of these persons, and especially a tenant for life, pays off an incumbrance, it must be presumed that he means to keep it alive, against the inheritance for his benefit. But, in both of these cases, the presumption may be rebutted by circumstances which demonstrate a con- trary intention. And if a tenant for life pays offa bond debt, it will not be presumed that he meant to keep it alive.’ 626. IV. With respect to the compulsory dis- IV. Com- ‘ . pulaory die- charge of incumbrances, the modern rule is incum- this: that the tenant for life shall contrib- ute, beyond the interest, in proportion to the benefit he derives from the liquidation of the debts, and the consequent cessation of interest, which of course will much depend on his age, and the computation of the value of his life. If the estate is sold to discharge incumbrances (as the incumbrancer may insist that it shall), the surplus which remains after discharging the incumbrance is to be applied as follows: the income thereof is to go to the tenant for life during his life; and then the whole capital is to be paid over to the remainderman or reversioner.? 627. Be V. A tenant for life is bound to keep down the © down interest which has accrued during his interest on : : incem- own time, so far as the rents and profits will extend. But if there are any arrears which 1 Morley v. Morley, 5 D. M. & G. 610; St. 3 486; 2 Sp. 308, 344, 345, 843. 2 St. 2487; 2 Sp. 551, 841. APPORTIONMENT AND CONTRIBUTION. 325 accrued during the life of a preceding tenant for life, and such arrears cannot be recovered from his estate, they are primarily a charge upon the inheritance.’ 628. Where a tenant for life of an estate, subject to a charge bearing interest, pays the interest, although the rents and profits are insufficient for that purpose, he cannot make himself an incumbrancer on the estate for the excess in his payments, if he has not given to the remainderman any intimation of the insufficiency of the rents and profits, and of his intention to charge the excess of his payments on the inheritance.? 629. A tenant in tail in possession, if of full age, cannot be compelled by the remainderman or reversioner to pay the interest ; because he can make himself absolute owner of the estate; and even if the remainderman or reversioner ultimately takes, still, instead of having any just ground of complaint that the interest has not been kept down, he has cause to be grateful to the tenant in tail for not barring the remainder or rever- sion. If, however, such a tenant in tail does pay the interest, his personal representatives have no right to be allowed the sum so paid, as a charge on the estate ; because he is supposed to have kept down the interest, as owner, for the benefit of the estate. 630. Tf a tenant in tail is an infant, his guardian or trustee will be required to keep down the interest ; ' St. 8 488, 1028.a; 2 Sp. 551; Dixon v. Peacock, 3 Drew. 288, 292; Sharshaw v. Gibbs, Kay, 333; Tudor’s Lead. Cas. on R. P., 2d ed. 82, et seq. 2 Lord Kensington v. Bouverie, 7 H. L. Cas. 557. 3 St. 2 488. 326 APPORTIONMENT AND CONTRIBUTION. because the infant cannot of his own free will bar the remainder or reversion.’ 631. ‘tiaras V Le Wikere leaseholds for years or for lives of renewal are settled upon several persons in succes- oe sion, the rule, in the absence of any express direction, is, to apportion the charges for the renewal of leaseholds between the tenant for life and the re- mainderman, in proportion to the enjoyment they have of the renewed lease.’ 632. vit. contri: WII. Another case of apportionment and bution contribution arises in regard to sureties. sureties. Originally, it seems to have been questioned whether contribution between sureties, unless founded on some positive contract between them, could be en- forced at Law. And although there is now no doubt jurisdic. that it may, yet the legal jurisdiction now nee assumed in no way affects that which belongs to Equity.’ The contribution thus enforced is not grounded on mutual contract, express or implied, but- -- on principles of natural justice.* 633. Wheresuch Lf one surety, on the default of the prin- contribu- cipal, is compelled to pay the whole sum of enforced. money, or to perform any other obligation for which all become bound, he can oblige each of his co-sureties, and the representatives of any deceased surety, to contribute, whether the sureties are jointly and severally bound, or only severally, unless there is 1 St. 2 488, note. 2 2 Sp. 545, 546. 5 St. 2 495, 496; Dering v. Earl of Winchelsea, 1 Lead. Cas. Eq., 2d ed. 78, et seq. St. 3 493. APPORTIONMENT AND CONTRIBUTION. 327 an express or implied contract to the contrary, and. whether their suretyship arises under the same instru- ment or under different instruments, either executed with his knowledge or not, if all the instruments are primary concurrent securities for the same debt.!. But if the instrument is intended to be only subsidiary to and a security for the other in case of a default in payment, and not to be a primary concurrent security, the surety in the subsequent bond would not be com- pelled to aid those in the other by any contribution.’ 634. The contribution will generally be equal ; yiatis the but if there is a contract express or implied >™™- to the contrary, it will be otherwise.* And if there are several sureties, and one of them is insolvent, and another pays the debt, he can recover from the solvent surety or sureties, as much as such solvent surety or sureties would have had to pay if the insolvent had never undertaken the office of surety. And when there are several distinct bonds, with different penal- ties, and a surety on one bond pays the whole, the contribution is in proportion to the penalty of their respective bonds.* 6365. 1 See St. @ 492, 495, 497, 498; 2Sp. 843; Whiting v. Burke, L. R. 10 Eq. 539; 6 Ch. Ap. 342.* 2 St. 3498; 2 Sp. 844. 3 St. 3498; 2 Sp. 844. 4 St. 2496; 2Sp. 844; Hitchman v. Stewart, 3 Drew. 271. 5 St. 3 497. * In some of the American States, Courts of Law now follow the rule adopted in Courts of Equity, in apportioning the share of an insolvent surety upon those who remain solvent. St. Eq. Jur. % 496 a, and cases cited. 328 APPORTIONMENT AND CONTRIBUTION. VIII. Another instance of apportionment General and contribution is that of general average, avemé*- which is a general contribution that is to be made by all parties in interest toward a loss or expense, which, in the course of a voyage, is voluntarily sus- \tained or incurred for the benefit of all; as where goods are thrown overboard to lighten the ship. The contribution is confined to the property saved thereby, including the ship, the freight, and the cargo.’ 636. 1 St. 2 490, 491; Berkley v. Presgrave, Tudor’s Lead. Cas. Merc. Law, 2d ed. 83, et seg.* * Abbott on Shipping, pt. 3, ch. 8, 17. PARTNERSHIP, 329 CHAPTER V. OF PARTNERSHIP. I. Courts or Equity exercise a full 1 sy saice concurrent jurisdiction with Courts of Law ‘2 in all matters of partnership; and indeed, practically speaking, they exercise an exclusive jurisdiction over the subject in all cases of any complication or diffi- culty... 637. II. In general a Court of Equity will not enforce a specific performance of a contract periem” : ‘ : f to enter into a partnership which may be agreement to enter into dissolved instantly at the will of either party, partner- since that would ordinarily be useless. Nor ree will it ordinarily decree a specific execution of an agreement to enter into a partnership for a certain time? But after a partnership has com- 4... ying menced, the Court will carry into effect the into sfect. articles of partnership, unless there is an en- ee tirely adequate remedy at Law. An excep- chip has. tion, however, occurs, where there is an “™mence®- agreement, that, in case of any dispute, the same shall 1 St. 3 683. See, on this subject, Crawshay v. Maule, and Wal- ters v. Taylor, Tudor’s Lead. Cas. Mere. Law, 2d ed. 310, 329, et seq. ; 2 St. 2 666; Scott v. Rayment, L. R. 7 Eq. 112. 28 330 PARTNERSHIP. be referred to arbitration; for Courts of Equity will not enforce such an agreement, but will leave the par- ties to their own pleasure.’ 638. ee reir eran oo y the articles for the duration o ofterm. the partnership, continue to carry on busi- ness without altering the terms, it will be deemed a partnership at will, regulated by the articles so far only as they are consistent with a partnership at will? 639. III. A partnership may be dissolved, in ation the ordinary way, by death; by the act of Georeed. the parties; by effluxion of time; and in other ways.’ But Courts of Equity will dissolve the partnership before the regular time, in case, by reason of the ill-feeling between the partners or other circum- stances, it is impracticable to carry on the undertaking at all, or at least according to the stipulations of the articles, or beneficially ; or in case of the insanity, per- manent incapacity, or gross misconduct of one of the partners. And a partnership will also be dissolved at the instance of a partner who was induced to enter into it on a false representation.’ 640. ) St. 2 667, 670. ? Clark ». Leach, 32 Beav. 14. 5 See Smith’s Manual of Com. Law, Am. ed. 207. * St. @ 673; Harrison v. Tennant, 21 Beav. 482; Jennings ». Baddeley, 3 K. & J. 78; Baxter v. West, 1 Dr, & Sm. 173; Wat- ney v. Wells; 30 Beav. 56; Essell » Hayward, 30 Beav. 158; Rowlands v. Evans, 30 Beay. 302; Leary v. Shout, 33 Beay. 582.* ® Rawlins ». Wickham, 1 Gif. 355. * Slemmer’s Appeal, 58 Penn. St. 168. PARTNERSHIP. -331 IV. On the other hand, in the case of a partnership existing during the pleasure of oe: the parties, with no time fixed for its renun- oe ciation, Equity will grant an injunction against a dis- solution, if a sudden dissolution is about to be made in ill faith, and would work irreparable injury.! 641. V. An injunction will be granted to pre- y tjury vent a partner from doing acts injurious to Prevented. the partnership? 642. VI. Where a dissolution has taken place, yy ascount not only will an account be decreed, but, if Beare te necessary, @ manager or receiver will be ap- °°" pointed to close the business, and make sale of the property.’ But a Court of Equity is not inclined to decree an account, except under special circumstances, if there is no actual or contemplated dissolution, so that all the affairs of the partnership may be wound up.* 643. : ; VII. On adissolution, one of the co-own- y47 parti- ers of leaseholds cannot insist on a partition, ti" but the whole must be sold.’ 644. VIII. A partner using any portion of the ; . . . VIII. Using partnership stock, after a dissolution, for any stock after purpose other than for the.winding up of the ‘ concern, will be treated as a trustee for the others, or their representatives, of the profits he may have made thereby. 645. 1 St. $668; Lindley, 179. St. 2 669. 3 St. 3 672. “4 St. 3 671- 5 Wild v. Milne, 26 Beav. 504. 6 2 Sp. 208.* ; * Smith, Manual Com. Law, Am. ed. [201], and note. 332° PARTNERSHIP. After a dissolution, no interest is payable aneras- between partners merely on the ground that pee they have still remaining in the concern un- equal shares of capital, on which during the continu- ance of the partnership they were entitled, either by express agreement or by their course of dealing, to have interest credited, with or without rests.’ 646. Ret IX. Real estate bought and held for the eetne purposes of a partnership in trade, as a part of the stock in trade, will be considered in Equity, although not at Law, as personal estate to all intents and purposes, whatever may be the form of the con- veyance ; so as to be subject to all the equitable rights and liabilities of the partners and their creditors; and so as to pass to the personal representatives and distrib- utees, on thé death of a partner, except, perhaps, where there is a clear expression of the deceased partner that it shall go to his heir-at-law beneficially, or the partners have stipulated that freehoid lands purchased by them shall descend to their heirs-at-law beneficially? But where the land, and not the trade, is the principal object, and the trade is merely ancillary to the beneficial enjoyment of the land, or a part of it, 1 Barfield v. Loughborough, L. R. 8 Ch. Ap. 1. 2 Smith’s Merc. Law, 6th ed. 179; St. ¢ 674; Darby v. Darby, 3 Drew. 495; but see 2 Sp. 208-211.* * Adams’s Eq. [245], [246], and note. But, except so far as re- quired to pay firm debts or balances due partners, partnership land retains the quality of real estate as to descent, dower, ete. Shearer v. Shearer, 98 Mass. 107; Wilcox ». Wilcox, 13 Allen, 252, * PARTNERSHIP. 333 this doctrine will not apply ; so that if one of the co- owners dies intestate, his share in the land will pass to his heir, and not to his legal personal representative. 647. X. During the partnership, the joint credi- gaa tors have no lien, until they have obtained a of joi P judgment; and before they have issued and eee registered process of execution, they cannot prevent the partners from effectually transferring the property by a bond fide alienation.? 648. XI. The creditors of the partnership have th is ‘ XI. Priority aright to the payment of their debts out of a between joint and the partnership funds, before the private separate creditors. creditors of either of the partners; although, at Law, this is generally disregarded. On the other hand, the separate creditors of each partner are entitled to be first paid out of the separate effects of their debtor, before the partnership creditors can claim anything; although, at Law, a joint creditor may proceed directly against the separate estate.’ 649. XII. The partnership creditors may in pa oen the first instance proceed against the execu- tors may proceed. tors or administrators of a deceased partner, axainst deceased leaving them to their remedy over against partner's 1 Steward v. Blakeway, L. R. 6 Eq. 479; 4 Ch. Ap. 603. 2 See 2 Sp. 212; stat. 23 and 24 Vict. v. 38, s. 1. 3 St. 2 675; 2 Sp. 218; Ex parte Ruffin, and Ex parte Row- landson, Tudor’s Lead. Cas. Merc. Law, 2d ed. 387, 407 ; Lodge ». Prichard, 4 Gif. 294; 1D. J. & S. 610.* * Murrill v. Neill, 8 How. Sup. Ct. 414. 334 PARTNERSHIP. estate in ivi i . estate in —_ the surviving partner, or vice vers@ ; because instance. —_ every joint debt is joint and several.! 650. Similar rate A similar rule applies to all cases where applies to i 101 pee there is a joint loan to several persons who debtors. are not partners.’ 651. 1 St. 2 676; 2 Sp. 213. 2 St. 2.676. MARSHALLING OF SECURITIES. 335 CHAPTER VI. OF CERTAIN SPECIAL ADJUSTMENTS IN THE CASE OF DEBTORS AND CREDITORS. SECTION I. OF THE MARSHALLING OF SECURITIES. WE have already had occasion to consider General the marshalling of assets in cases of Admin- 9°" istration, to which the present topic bears a close analogy. The general doctrine is that if a creditor has a lien on or interest in two funds belonging to one per- son, and another creditor has a lien on or interest in one only of the funds, and the claims of both could not be satisfied if the former were to resort to the fund in which alone the latter is interested; there the latter creditor can, in Equity, compel the former to resort to the other fund in the first instance for satisfaction, un- less that would operate to the prejudice of the party en- titled to the double fund or the common debtor. 652. 1 St. 2 633, 642; 2 Sp. 884; 2 Lead. Cas. Eq., 2d ed. 79, et seq.* * See also American notes (for the doctrine prevailing in the different States), Aldrich v. Cooper, 2 White & Tudor’s Lead. Cas. Eq. 255, et seg. 336 RIGHTS OF CREDITORS AND SURETIES. But although the different securities of No mar- : shalling one and the same common debtor will be where one of two joint i i i- of two joint marshalled so as to satisfy the different credi Iso a saver tors, yet where two or more persons are debtorof under a joint obligation to one creditor, and creditor, one of them is also indebted to another creditor, Equity will not compel the joint creditor to satisfy his claim by proceeding against the joint debtor who is only indebted to such joint creditor, so as to leave the other joint debtor’s property for the several creditor ; unless it appears that the joint debt ought in fact to be paid by the debtor who is only indebted to the joint creditor, or that there is some other super- vening equity.’ For, in general, it would seem that the several creditor can have no equity to counter- balance the right of the debtor who is only jointly in- debted to the joint creditor, to have a contribution from the other joint debtor. 653. SECTION II. OF THE MUTUAL RIGHT TO THE BENEFIT OF SECURI- TIES BETWEEN A CREDITOR AND SURETIES; AND OF THE RELEASE OF SURETIES. SURETIES are entitled to the benefit of all securities which have been taken by any of their co-sureties to indemnify themselves against their liability.” 654. Courts of Equity have also held that on payment by the sureties to the creditor of the debt due from the " St. 3 642-5. 7 St. 2 499. , RIGHTS OF CREDITORS AND SURETIES. 337 principal, they are entitled to the full benefit of all securities taken by the creditor, at or after the date of the contracts of suretyship, whether the surety has notice of thera or not, and whether of a legal or of an equitable nature, which are collateral to or other than the original principal security whereby the debt is evi- denced, or which continue to exist, and do not get back, on payment, to the principal debtor. And the surety is so entitled, not only against the principal debtor, but also against all persons claiming under him; as, for instance, against a subsequent mort- gagee of the debtor, with notice of a prior charge paid off by the surety. Thus, if at the time when the bond of the principal and surety is given, a mortgage is made by the principal, to be an additional security for the debt; there, if the surety pays the debt, he will be entitled to an assignment of the mortgage, and to stand in the place of the mortgagee; and as the -mortgagor cannot get back his estate without a re- conveyance, the assignment and security will remain an effectual security in favor of the surety. But, until recently, the surety could not obtain an assignment of the bond itself; nor could he insist on an assignment of a judgment, after he had paid off the debt on the judgment.’ It is enacted, however, by the stat. 19 1 St. @ 499, 499b, 499¢, and note, 638; Pearl v. Deacon, 24 Beav. 186; 1 D. & J. 461: Pledge v. Buss, Johns. 663, and re- marks there on Newton v. Chorlton, 10 Hare, 646; Goddard ». White, 2 Gif. 449; Drew v. Lockett, 32 Beav. 499; Strange », Fooks, 4 Gif. 408.* A * Hull v. Sherwood, 59 Mo. 172; Holmes v. Day, 108 Mass. 103. 29 338 RIGHTS OF CREDITORS AND SURETIES. and 20 Vict. c. 99,s. 5, that “every person who, being a surety for the debt or duty of another, or being liable with another for any debt or duty, shall pay such debt, or perform such duty, shall be entitled to have assigned to him, or to a trustee for him, every judgment, specialty, or other security which shall be held by the creditor, in respect of such debt or duty, whether such judgment, specialty, or other security shall or shall not be deemed at Law to have been. satisfied by the payment of the debt or performance of the duty’; and such person shall be entitled to stand in the place of the creditor,” etc.’ 655. On the other hand, if a surety has a counter bond or security from the principal, the creditor will be en- titled to the benefit.of it, and may in Equity reach such security to satisfy his debt.? 656. In Equity, whatever act is a discharge of the prin- cipal, is also a discharge of the surety, though the surety be not released at Law.’ 657. Where a person becomes a surety upon the faith of another also agreeing to enter into the obligation, the former has a right to be relieved in Equity, on the ground that the instrument has not been executed by the latter 658. 11 Lead. Cas. Eq., 2d ed. 87-91. 2 St. 2 502, 638. 3 1 Pres. Shep. T. 71; Webb v. Hewitt, 3 K. & J. 438. 4 Evans v. Bremridge, 8 D. M. & G. 100. SET-OFF OR COUNTER-CLAIM. 339 SECTION III. OF SET-OFF OR COUNTER-CLAIM. Ir is not proposed to go into this subject, regarded as a matter of practice or procedure depending on Statutes or Orders; but simply to notice a few points relating to it, when viewed as a matter of Equity Jurisprudence, before the Judicature Acts, by which the relative remedies of persons having counter-claims are materially affected. 659. As to connected accounts of debts and credits, the balance only was recoverable, whether at Law or in Equity.’ — 660. But it would seem that Courts of Equity, ‘pees in virtue of their general jurisdiction, were dent debts or demands. accustomed to grant relief in all cases where there was a mutual credit between the parties, founded at the time on the existence of some debt due by the crediting party to the other,’ or where peculiar equities intervened.’ And where there were cross demands, of such a nature that, if both were recoverable at Law, they would be the subject of a set-off, if either of the demands was a matter of equitable jurisdiction, the set-off would be enforced in Equity.‘ But a set-off was ordinarily allowed in Equity in those cases only Connected accounts, * St. 3 1434. 2 St. 3 1435; Cavendish v. Geaves, 24 Beav. 163. 8 St. ¢ 1437 a, #-St. 4.14362. 340 SET-OFF OR. COUNTER-CLAIM. where the party seeking the benefit of it could show some equitable ground for being protected against the demand of the other party. The mere existence of cross demands would not be sufficient. A fortiori, a Court of Equity would not interfere, on the ground of an equitable set-off, to prevent a person from recover- ing a sum awarded to him for damages for a breach of contract, merely because there is an unsettled account between him and the other party in respect to dealings arising out of the same contract, where it could not be assumed that the balance would be found to be in favor of the latter.t 661. Equity, following the Law, would notallow Where one eee . debt is joint a set-off of a joint debt against a separate and the . os other debt, or of a separate debt against a joint separate. Bea . ‘ debt; unless there was a joint credit given on account of’ the separate debt, or there were other special circumstances to justify such an interposition.’ 662. . ; Except under special circumstances, Courts emands in i > Ae of Equity have never allowed cross demands existing in different rights to be set the one against the other. And therefore an executor and the trustee of a legacy, who is also the residuary legatee, and had become a creditor of a person who was the 1 St. @ 1486, and note; and see Phipps v. Child, 3 Drew. 709; Fisher v. Baldwin, 11 Hare, 352; Jenner v. Morris, 1 Dr. & Sm. 334 ; Smee v. Baines, 29 Beav. 661.* ? St. ¢ 1437; Piercy v. Fynney, L. R. 12 Eq. 69. * Green v. Darling, 5 Mason, 212 ; Hendrickson v. Hinckley, 17 How. Sup. Ct. 447. SET-OFF OR COUNTER-CLAIM. 341 husband and administrator of a deceased legatee, was not, in the absence of any special agreement, allowed to set off his debt against the legacy to which the hus- band, as such administrator, was entitled.’ And where a oe of an intestate purchases part of the intes- te’s goods from his administrator, the creditor cannot off the sum at which he purchased the goods against a debt due to him from the intestate at the time of his decease.” 663. 1 Freeman v. Lomas, 9 Hare, 109; Middleton v. EO L. R. 20 Eq. 29, 515. ? Lambarde v. Older, 17 Beav. 542. 342 MESNE PROFITS. CHAPTER VII. OF CERTAIN MISCELLANEOUS CASES OF ACCOUNT. I. Iv is the duty of an agent to keep regu- lar accounts and vouchers.’ And if he does not, he will not be allowed the compensation which would otherwise belong to his agency. And if he mixes up his principal’s property with his own, he is put to the necessity of showing clearly what part of the property belongs to him; and so far as he is unable to do this, it is treated, both at Law and in Equity, as the property of the principal.’ 664. Fiswesne II. In the ordinary case of mesne profits, proats: where aid was clearly afforded at Law, Courts of Equity will not interpose.* Wherever relief is given in Equity it will be found that there is some peculiar equitable ground for interference; such as fraud, acci- dent, or mistake, the want of a discovery, some im- pediment at Law, the existence of a constructive trust, I. Agency. or the necessity of interposing to prevent multiplicity of suits. 665. 1 See remarks of Sir John Romilly, M. R., in Stainton v. The Carron Company, 24 Beav. 353. 2 St. 2 468. 3 St. @ 511. 4 St. 2 509-514. WASTE—TITHES AND MODUSES. III. In cases of legal waste, relief is ordi- narily at Law.’ If the waste is equitable only, of course a remedy lies in Equity.(a)? IV. Matters of account also arise in re- gard to tithes and moduses. Wherever the right to tithe is clearly established, an ac- 343 III. Waste. 666. IV. Tithes and moduses: count is consequent. But if the right is disputed, it must first be established, before an account will be de- creed. For some years past, however, tithes have been commuted for tithe rent charges, under the stat. 6 and 7 Will. IV, c. 47, and subsequent Acts. 667. 1 St. 2 515-518. 2 St. 3 515, note. 3 St. 2 519. (a) On this subject, see the Judicature Act, 1873 (36 and 37 Vict. c. 66), s. 25 (3). 344 DAMAGES AND COMPENSATION. CHAPTER VIII. OF DAMAGES AND COMPENSATION. < git zie I. Ir would seem that prior to the stat. astodama- 94 and 22 Vict. c. 27, damages or compen- ges or com- pensali™ sation were decreed in favor of a plaintiff in oe Equity, only as incident to other relief, sought by the bill and actually granted, or where there was no adequate remedy at Law, or where some peculiar equities intervened.’ But by that statute Stat. 21 and ¥ o 22 Viet. ©. (s. 1) it was enacted, that “in all cases in which the Court of Chancery has jurisdiction to entertain an application for an injunction against a . breach of any covenant, contract, or agreement, or against the commission or continuance of any wrongful act, or for the specific performance of any covenant, contract, or agreement, it shall be lawful for the same Court, if it shall think fit, to award damages to the party injured, either in addition to or in substitution for such injunction or specific performance; and such damages may be assessed in such manner as the Court shall direct.” 668. 1 St. 2724, 798, 799. 2 Johnson v. Wyatt, 2D. J. & S. 18; Middleton v. Greenwood, Id. 142. DAMAGES AND COMPENSATION, 345: II. Compensation is often given to a de- fendant on the principle that he who seeks ssiton ta” equity must do equity. Thus, if a plaintiff a in Equity seeks the aid of the Court to enforce his title to land against an innocent person, who has made improvements on it, supposing himself to be the abso- lute owner thereof, that aid ‘will be given only on the terms that the plaintiff shall make a compensation to such innocent person proportionate to the benefit which will be received from those improvements.’ 669. III. With regard to penalties and forfei- ee III. Juris- tures for breach of conditions and covenants, diction to there was originally no relief but in Equity ; aga and although, by several statutes, relief may tnd for now be had at Law in a great variety of cases, yet the original jurisdiction in Equity still re- mains? 670. Where a penalty or forfeiture appears to ance have been inserted merely to secure the per- relief tn formance of some act, or the enjoyment of some right or benefit, Equity regards the performance of such act, or the enjoyment of such right or benefit, as the substantial object of the party interested therein ; and if a compensation can be made for the non-per- formance or want of enjoyment thereof, it will relieve 1 St. 2 799a.* 2 St. @ 1801; Peachy v. Duke of Somerset, 2 Lead. Cas. Eyq,, 2d ed. 895, et seq. a * Statutes in favor of occupying claimants who have made im- provements in good faith, are now in existence in most of the States. St. Eq. Jur. 3 799a, note. 346 DAMAGES AND COMPENSATION. against the penalty or forfeiture, by simply decreeing a compensation in lieu of the same, proportionate to the damage really sustained.’ 671. Gee ae compensation can be made, and the comprnsa- penalty is to secure the mere payment of a cases. sum of money, the party will be relieved on paying the principal and’interest. If it is to secure the performance of some other act, the Court will as- certain the amount of damages, and grant relief on payment thereof? 672. ; Although it may be urged that, in such iiustly cases as these, it was the folly of the party to granted. make such a stipulation, yet the folly of one man cannot authorize the other to commit an act of gross oppression, or oblige the former to suffer a loss wholly disproportionate to the injury received.? And, although, in some cases, from peculiar circumstances, which cannot be taken into account, the compensation awarded may not amount to an adequate compensation, yet that is no solid objection against the interference of Courts of Equity; for a great injury is always pre- vented by such interference; whereas the mischief caused thereby is only occasional ; and all general rules must work occasional mischiefs.t 673. A stipulation, that if instalments be not punctually paid, the whole sum shall be payable at once, is not to be deemed of the nature of a penalty.’ Nor isa 1 See St. 2 1314, 1320. 2 St. 3 1314. 3 St. 3.1316. * St. 2 1316, note. 5 Sterne v. Beck, 1 D. J. & 8. 595.* * St. Eq. Jur. 3 1314, note. So also reasonable fines of a build- ing society will not be relieved against in Equity, and are not DAMAGES AND COMPENSATION. 347 reservation of a right to have full payment of money actually due at the date of an existing contract, if there should be a failure to pay a smaller sum on a day certain.’ 674, IV. Courts of Equity will not relieve in ,, y, cases of liquidated damages, which occur “lief against i ' liquidated where the parties have agreed that in case }avilate one party shall do or omit a certain act, the {r°reant” other party shall receive a certain sum, as ““*™ the just amount of the damage sustained by such act or omission, and where the sum so agreed to be paid is not grossly disproportionate to the nature or extent of the injury. If the sum is so disproportionate, and it is in reality penal, although it may assume the dis- guise of liquidated damages, a Court of Equity will treat it as a penalty, and relieve against it accord- ingly? 675. V. In the case of a breach of a covenant to pay rent, Equity will relieve, even where ee the term is gone at Law by reason of the SS aoreeeh landlord’s entry by virtue of a clause of re- or condi m entry; for that is deemed to be a mere se- ~ curity for the payment of the rent. But no relief will be granted in Equity in case of forfeiture for the breach of any covenant other than a covenant to pay rent, unless on the ground of accident, mistake, or 1 Thompson v. Hudson, L. R. 4 H. L. 1. 2 St. 3 1318. 3 St. ¢ 1315, and note to 2 1328. within the rule that Equity will not aid to enforce a penalty. Shannon v. Howard, etc., Ass’n., 36 Md. 383. 348 DAMAGES AND COMPENSATION. fraud ; for it has been considered that even where the damages are capable of being ascertained, the jurisdic- tion of Equity in giving relief is a dangerous jurisdic- tion, and rarely works a real compensation.'(a) 676. a apel tee VI. And Equity will not mitigate any nor granted penalty or a forfeiture imposed by Statute ; against sa\ine or for that would be in contravention of the forfeitures. direct expression of the legislative will.’ 677. VII. On the other hand, it is a uniform penalty or rule in Equity never. to enforce either a never ene penalty or a forfeiture. Therefore Courts of forced. : 5 “75 . : Equity will never aid in the diyesting of an estate, for a breach of a covenant, on a condition sub- sequent.? 678. 1 St. 2 1820-6; Gregory v. Wilson, 9 Hare, 689. The margi- nal note, as to “accidental” neglect, appears to be wrong. 2 St. @ 1826. 3 St. @ 1819; and on the subject of enforcing a penalty, see Thompson v. Hudson, L. R. 2 Eq. 612; 2 Ch. Ap. 255; 4 H. L. 1* (a) See the stat. 22 and 23 Vict. cu. 35, ss. 4-6, and 23 and 24 Vict. c. 126, 5. 2, as to relief against forfeiture for breach of a covenant or condition to insure. * St. Eq. Jur. 21314, note; Powell v. Redfield, 4 Blatch. C. C. 45. Equity follows and enforces the Law, and does not contradict and contravene an express rule of Law or Statute. St. Eq. Jur. @ 1326 a, note. ‘ELECTION. 349 CHAPTER IX. OF ELECTION. ELEcTIon is the choosing between two rights, by a person who derives one of them under an instrument in which a clear intention appears that he should not enjoy both. 679. The instances in which Courts of Law have put a person to his election, are cases donee” of title which are technically incapable of “ ae simultaneous assertion, by reason of their inconsistency ; as in the case of a contemporaneous estate for life and in tail in the same land, or a claim of a tenant under and against his landlord; or a claim to dower both in the land taken and in the land given in exchange. 680. The doctrine of election arises in Equity, in cases where a grantor, or, more commonly, pon arses a testator, gives away, either knowingly, or i by mistake, that in which he has no interest, or the whole of that in which another person besides himself has an interest, and in the same instrument makes a gift to the owner of the property so given away, or to the person entitled to such interest. In such cases the owner of such property, or the person entitled to such Definition. 350 ELECTION. interest, cannot both take the gift and retain his own property or interest; but if he takes the gift, he must resign his own property or interest. On the other hand, if he elects to hold his own property or interest, or, as the phrase is, if he elects against the instrument, he cannot have the gift; or at least he cannot have the entire gift without compensating the party whom he has disappointed by electing to take his own property. Equity, in not suffering the disposition by which such gift is made to inure to the benefit of the person so electing against the instrument, will not render that disposition inoperative, but will make it the means of effectuating that intention of the author of the instru- ment which such person has frustrated by so electing to retain his own property or interest ; for Equity will treat such gift, or at least a part of it, as a trust in the donee or devisee, the person so electing, for the benefit of the party disappointed by such person’s refusing to give up his own property or interest.’ Indeed, the doctrine of election can never be applied where an 1 See St. 2 1077, note, and 1081-4, 1086, 1088, 1089, 1093; 2 Sp. 586, 587, 588, 601-4; Noys v. Mordaunt, and Streatfield ». Streatfield, 1 Lead. Cas. Eq., 2d ed. 271, et seqg.; Swan v. Holmes, 19 Beav. 471; Wintour v. Clifton, 21 Beav. 447; 8D. M. & G. 641; Stephens v. Stephens, 3 Drew. 697; Usticke v. Peters, 4 K. & J. 487; Anderson v. Abbott, 23 Beav. 457; Grosvenor v. Durs- ton, 25 Beav. 97; Fitzsimons v. Fitzsimons, 28 Beay. 417; Hony- wood v. Forster (No. 2), 30 Beav. 14; Howells v. Jenkins, 2 Johns. & H. 706; 1D. J. & 8. 617; Whitley v. Whitley, 31 Beav. 173; Miller x, Thurgood, 33 Beav. 496; Grissel v. Swinhoe, L. R. 7 Eq. 291; Coutts v. Acworth, L. R. 9 Eq. 519 ; Cooper v. Cooper, L. R. 6 Ch. Ap. 15; Wilkinson v. Dent, L.. R. 6 Ch. Ap. 339; ELECTION. 351 election is made contrary to the instrument, unless the interest that would pass by it is of that freely dispo- sable nature that it can be laid hold of to compensate the party who suffers by the exercise of such election against the instrument. Thus, where there is a fund subject to the appointment of a father amongst his children, and the father appoints a part to some of his children, and the other part to persons not objects of the power; any child who is an appointee may both take his appointed share and also claim his share of the improperly appointed portion, as in default of ap- _pointment. And an appointee, who is also a legatee, is not bound to elect between his legacy and giving effect to a trust ingrafted on the appointment in favor of persons not objects of the power, but such trust is void. But if there is a power to appoint to two, and the donee of the power appoints to one only and gives Middleton v. Windross, L. R. 16 Eq. 212; Rogers v. Jones, L. R. 3 Ch. D. 688.* * The principle of election is recognized in this country, and has been applied under a great variety of circumstances. It rests upon the equitable ground that no man can be permitted to claim inconsistent rights with regard to the same subject, and that one who claims an interest under an instrument is bound to give full effect to that instrument as far as he can; a person cannot accept and reject the same instrument, or, having availed himself of it as to a part, defeat its provisions in any other part; and this applies to deeds, wills, and all other instruments whatsoever. Streatfield v. Streatfield, 1 White & Tudor’s Lead. Cas. Eq., 4th Am. ed. 376; notes by American ed.; also Wilbanks ». Wilbanks, 18 Ill. 19; Walters v. Howard, 1 Md. Ch. 112. 352 ELECTION. a legacy to the other, he cannot claim the legacy and also dispute the validity of the appointment.’ 681. Prima facie, it is not to be supposed, nor must it be proved by extrinsic evidence, that a testator dis- poses of that which is not his own, so as to raise a case of election. It must appear on the will itself, by plain demonstration or by necessary implication.’ 682. The doctrine of election applies even where, in a will not within the Wills Act, 1 Vict. c. 26, a devise of an estate is made to the testator’s heir, and the heir, ac- cording to the old rule, takes such estate by descent, and not by purchase, and, by the same will, the tes- tator devises to another person an estate belonging to the heir, over which the testator had no disposing power. And the doctrine is equally applied to all interests, whether immediate or remote, vested or con- tingent, of value or of no value, and whether in real or personal estate.* 683. The same doctrine of election also arises in cases where it was apparently a testator’s intention to dis- pose of all the property he might have at the time of his death, and the heir, who is a devisee under the will, claims property, which was purchased subsequently to 1 2 Sp. 520; In re Fowler’s Trust, 27 Beav. 362; Woolridge ». Woolridge, Johns. 63; Churchill v. Churchill, L. R. 5 Eq. 44. 2 2 Sp. 592, 593, 595; Wintour »v. Clifton, 21 Beav. 447; 8 D. M. & G. 641; Miller v, Thurgood, 33 Beav. 496.%@ 3 St. 2 1094; 2 Sp. 589; Schroder v. Schroder, Kay, 578; Hance v. Truwhitt, 2 Johns. & H. 216. 4 St. 2 1096; 2 Sp. 588. * St. Eq. Jur. 3 1097. ELECTION. 353 the will, and which consequently, under the old law, did not pass by the will, but was intended to pass to another person under the general words of the will.! 684. And where a testator devises all the residue of his real estate situate in any part of the United Kingdom or elsewhere, and he has real estate in Scotland as well as in England, and his heir takes the Scotch lands, by descent, from want of an instrument inter vivos from which the testamentary instrument might derive its effect, the heir will be put to his election.? 685. It has been held that the doctrine of election does not apply to an instrument which was valid at the time of execution as to all the property comprised in it, but was rendered inoperative as to some of the property by subsequent events.’ 686. According to the preponderance of authority and principle, a person electing against a will does not for- feit the whole of the benefit intended for him, where the value of the gift exceeds that of his own property or interest; but he is only obliged to compensate in value the claimant whom he has disappointed by re- fusing to give up his own property or interest.* For a Court of Equity interfering to control his legal rights for the purpose of executing the intention of the tes- tator, is justified in its interference so far only as that purpose requifes.” 687. 1 §t, 21094; Schroder v. Schroder, Kay, 578. 2 Orrell v. Orrell, L. R. 6 Ch. Ap. 302. * Blaiklock v. Grindle, L. R. 7 Eq. 215. * St. ¢ 1085; 2 Sp. 601 -4. 5 St. 2 1085, note. 30 354 ELECTION. A person may decline one benefit given ae him by a will, such as a legacy charged with cr portion, without being precluded from taking another benefit by the same will ; unless it is fairly inferable from the nature of the different bene- fits, that he should either take all or reject all.’ 688. de Election may also arise where a person fe Suet attempts to claim both under and in oppo- seitiement- sition to a settlement. It is a rule that a person will not be allowed to take under and against the same instrument.’ 689. evens The party is not bound to make an elec- ne iie. tion till all the circumstances are known. norance of And if he should make a choice in ignorance stances. of the real state of the funds, or under a misconception of the extent of the claims on the fund . elected by him, it will not be conclusive on him. And che is entitled, in order to make an election, to have a discovery, and all the accounts taken, in order to as- certain the real state of the fund.*? 690. _ Election by conduct must be by a person who has positive information as to his rights to the property, and with this knowledge really means to give that property up.“ 691. ’ St. 2 1081; see 2 Sp. 591. > * Anderson v. Abbott, 23 Beav. 457; Mosley v. Ward, 29 Beay. 407 ; Brown v. Brown, L. R. 2 Eq. 485; Codrington v. Lindsay, L. BR. 8 Ch. Ap. 578, 593; 7 H. L. 854. 5 St. 21098; 2 Sp. 598; Wintour ». Clifton, 21 Beav. 447. * Wilson v. Thornbury, L. R..10 Ch. Ap. 289. ELECTION. 355 An election may be presumed from a long fieaca acquiescence or from other circumstances,’ Presumed. Remaining in possession of two estates held under titles not consistent with each other, affords no conclu- sive proof of the kind? 692. The doctrine of election is not of the nature of a positive rule of law which a person is bound to know. And therefore in order to infer an election, it is neces- sary to show that the person who ought to elect was aware of the doctrine.’ 693. The doctrine of election is not applied in ; the case of creditors. They may take the iio benefit of a devise for payment of debts, ernrgen and also enforce their legal claim against other funds disposed of by the will; for a creditor claims not as a mere volunteer, but for a valuable consideration, and ex debito justitie.* 694. Where a testator gives a much larger prop- gist under erty to one child, under the mistaken impres- ™'***** sion that such child did not take under the testator’s marriage settlement, he is not bound to elect between his interest under the settlement and the gift by will. 695. 18t. 2 1097; 2 Sp. 598-600 ; Worthington v. Wiginton, 20 Beav. 67. 2 Spread v. Morgan, 11 H. L. Cas. 588. 3 Spread v. Morgan, 11 H. L. Cas. 588. * St. 21092; 2 Sp. 592. 5 Box v. Barrett, L. R. 3 Eq. 244.* * St. Eq. Jur. 2 1086, note. 356 ELECTION. Where the person bound to elect labors under any disability, as infancy or coverture, the Court will consider whether it will be most bene- ficial for such person'to take under or against the will or deed, and will decree accordingly.’ 696. ae Where a person, who had a right of elec- having sep- tion, dies intestate, without having exercised arate rights . * . ofelection it, each of his or her next of kin has a sepa- as next of - C . kin of a rate right of election; so that neither the erson who 7 eoeds ied with- election of the majority nor of the heir or out electi.ig. administrator will bind the others.” 697. 1 2 Sp. 587. 2 Fytche v, Fytche, L. R. 7 Eq. 494. Disability. SATISFACTION. 357 CHAPTER X. OF SATISFACTION. SATISFACTION may be defined to be the making of a donation with the express or implied intention that it shall be taken as an extin- guishment of some claim which the donee has upon the donor. 698. Equitable questions of satisfaction usually | arise in three classes of cases. 699. maou dt I. In case of portions secured by a mar- riage settlement. 700. II. In cases of portions given by a will, and an ad-- vancement of the donee afterwards in he testator’s lifetime. 701. III. In cases of legacies to creditors.” 702. In all these classes of cases where the sat- : . . F Satisfaction isfaction is a matter of presumption, that pre- resting on i ; to atnat a EM. sumption may be rebutted, either by intrinsic tion may evidence derived from the will itself, or by extrinsic evidence, as by declarations of the testator or written papers.’ 703. Definition. 1 See St. 3 1099, 1101, 1106; Ex parte Pye, 2 Lead. Cas. Eq., 2d ‘ed. 303, ef seq.; Samuel v. Ward, 22 Beav. 347 ; and references infra. 2 Sb. 2 1109. 3 Gt. ¢ 1102; 2Sp. 441-450. 358 SATISFACTION. i tate I. Where a portion or provision is secured podty toa child by a marriage settlement or other- settlement. vise, and the parent or person standing in loco parentis—that is, a person meaning to stand in the place of a parent as regards providing for a relation’s child—afterwards by will gives the same child a legacy, whether particular or residuary, without expressly de- claring it to be in satisfaction of such portion or pro- vision, in such case, if the legacy is substantially the same in its value, in its nature, in time of payment, in certainty, and in benefit, with the portion or provision, and if it is not given for a different purpose, it will, in the absence of evidence to the contrary, be deemed a full satisfaction, as Courts of Equity now incline against double portions. If the legacy is less in amount than the portion or provision, or if it is payable at a differ- ent period, then (looking to the weight of authority) it may be deemed a satisfaction pro tanto, or in full, ac- cording to the circumstances.’ 704. In the case of a provision by will, followed by a provision by deed, the first being revocable, there is no difficulty in the way of the second provision taking > St. ¢ 1108, 1104, 1109, 1110; 2 Sp. 427-480, 432, 433, 438- 440; Lady E. Thynne v. Earl of Glengall, 2 H. L. Cas. 153; Pin- chin v. Simms, 30 Beav. 119; Charlton v. West, 30 Beav. 124; Coventry v. Chichester, 2 Hem. & M. 149; 2D. J. &S. 336; s. c. nom. Lord Chichester v. Coventry, L. R. 2 H. L. 71; Campbell v. Campbell, L. R. 1 Eq. 383; McCarogher v. Whieldon, L. R. 3 Eq. 236; Paget v. Grenfell, L. R. 6 Eq. 7.* * Langdon »v. Astor’s Ex’rs., 3 Duer. 16 N. Y. 9; Sims v. Sims, 2 Stockton ‘Ch::158; Roberts v. Weatherford, 10 Ala. 72. SATISFACTION, 359 effect in lieu of the first; and no election on the part of the person to be benefited is required. And if the second provision is construed to be substitutional, it is properly termed an ademption. 705. On the other hand, in the case of a provision by deed, followed by a provision by will, the first being not revocable, and actual rights being conferred thereby, it is more natural in one respect to regard the second provision as additional rather than as substitutional, and the application of the presumption against double portions is consequently more difficult; and indeed no substitutional effect can be given to the will, except by the election of the person intended to be benefited. 706. Where by a covenant, to take effect on the death of the settlor, a portion is settled on the husband for life, and then on his wife and children, and an absolute gift of other property is afterwards made by the settlor by will in favor of the husband, it may be a satisfac- tion of the husband’s life interest, under the settle-. ment, but not of the interest of the wife and children.’ 707. II. Where a parent or other person stand- 41 Asto ing in loco sparentis bequeaths a legacy, fete by will whether particular or residuary, to a child to “* ce whom he stands in that relation, and then by an act inter vivos, makes a provision for the same child, of equal or greater amount, of equal certainty, and sub- stantially the same in kind and in degree of benefit, 1 Lord Chichester v. Coventry, L. R. 2 H. L. 71. 2 McCarogher v: Whieldon, L, R. 3 Eq. 236. 360 SATISFACTION. without expressing it to be in lieu of the legacy, or for other objects than those for which the legacy was given, in such case, in the absence of evidence to the contrary, it will be deemed a satisfaction or ademption of the lezacy. And if the provision inter vivos is less than the legacy, it will be deemed an ademption pro tanto.’ 708. A legacy may be adeemed by a gift, though not ‘made on marriage or any other occasion having a special reference to the donee.* But a bequest to a daughter is not adeemed by a gift to the husband ; nor by an advance to her, on her marriage, for her outfit.’ 709. Noademp- And this doctrine of the constructive [ou festo ademption of legacies has never been applied strangers. to legacies to wives or to mere strangers, unless under some peculiar circumstances; as where the legacy is bequeathed for a particular purpose, and a portion is afterwards given by the testator, by an act inter vivos, exactly for the same purpose, and for none- 1 St. @ 1111, and note, and 1103-1105, 1112, 1113, 1115; 2 Sp. 429, 432-5, 488-440; Hopwood v. Hopwood, 22 Beav. 488; 7 H. L. Cas. 728; Schofield v. Heap, 27 Beav. 93; Beckton v. Barton, 27 Beav. 98; Montefiore v. Guedalla, 1 D. F. & J. 98; Watson v. Watson, 33 Beav. 575; Phillips v. Phillips, 34 Beav. 19; Dawson v. Dawson, L. R. 4 Eq. 504; Nevin v. Drysdale, L. R. 4 Eq. 517; Cooper v. Macdonaffl, L. R. 16 Eq. 258 ; Stevenson v. Masson, L. R. 17 Eq. 78.* 2 Leighton v. Leighton, L. R. 18 Eq. 458. 3 Ravenscroft v. Jones, 32 Beav. 669. * Sims v. Sims, 2 Stockton Ch. 158. SATISFACTION. 361 other.'' Indeed, in the case of strangers, the onus probandi is upon those who contend that the two pro- visions are to be considered but as one; whereas in the case of children, the onus probandi is on those who con- tend for the double provision.” The term “strangers” here includes all who are not legitimate children of the donor, or children to whom he has placed himself in” loco parentis.? 710. The ground of the distinction would seem to be, that a legacy by a parent, or by a ce autho: person in loco parentis, is presumed to be “°” intended as a portion, and that it may be fairly re- garded as the utmost amount that the testator, from a sense of duty or from parental or quasi parental affec- tion, considered himself able and called upon to spare for the legatee, consistently with the accomplishment of other necessary purposes; and that if he afterwards advances the same ‘amount to the same child, it is almost certain, or at all events most likely, that he did so in accomplishment of the same intention of provid- ing for such child to the same extent; especially where the necessity of making a provision has arisen in his lifetime, as where the provision is made on the mar- riage of the child. But in the case of a legacy to a stranger, the legacy is a mere arbitrary gift, uncon- 1 St. 2 1100, note, 1117, 1118; 2 Sp. 430; Pankhurst v. Howell, L. BR. 6 Ch. Ap. 136.* 2 2 Sp. 430. 3 St. 21116; 2 Sp. 429. * It has been applied to an uncle. Gills’s Estate, 1 Pars. Eq 139. And to a brother, Richards v, Humphreys, 15 Pick. 133. 31 362 SATISFACTION. nected with considerations of duty or parental or quasi parental affection ; and there is as much reason, in such cases, why the testator should choose to make an additional gift, as there was for his making the origi- nal gift. 711. ILI. A legacy given to a creditor, if it is “Togasien t0 of an amount equal to or greater than the os debt, and in other respects equally beneficial, will, in general, in the absence of all countervailing circumstances, be deemed to be a satisfaction of the debt, on the principle that a testator shall be presumed to be just before he is generous.’ But this principle has no application to cases where the testator expressly directs his debts to be paid, and his assets are sufficient to pay both debts and legacies.. And the Court leans very strongly against holding the legacy to be a satis- faction. Hence the rule is not allowed to prevail where the legacy is of less amount than the debt, even as a satisfaction pro tanto, unless the creditor assented, in the debtor’s lifetime, to such an arrangement; nor where there is a difference in the time of payment of the debt and of the legacy; nor where they are of a different, nature, as to the subject-matter, or as to the interest. therein; nor where a particular motive is as- signed for the gift; nor where the debt is contracted subsequently to the will; nor where the legacy is con- tingent or uncertain; nor where the bequest is of a 1 St. ¢ 1119, 1120; 2 Sp. 605-7; Edmunds ». Low, 3 K. & J. 318; Shadbolt v. Vanderplank, 29 Beav. 405.* * See also Parker v. Coburn, 10 Allen, 82. SATISFACTION. ° 363 residue; nor where the debt is a negotiable security ; nor where the debt is on an open and running account, so that the testator might not know whether he owed anything. And as to a debt strictly so called, there is no difference whether it is a debt due to a stranger or to a wife or achild 712. IV. On the other hand, where a creditor fae ieee leaves a legacy to his adbéon: and either takes legacies to notice of the debt, or leaves his intention doubtful, Courts of Equity will not deem the legacy as either necessarily or primd facie manifesting an in- tention to release or extinguish the debt; but they will require some evidence, either on the face of the will, or aliwnde, to establish such an intention.? For, if the legacy is less than the debt, it would clearly be a posi- tive injury to the creditor to construe the legacy a re- lease of the debt; and even if the legacy is more than the debt, it does not follow that because the testator has manifested his bounty towards the debtor in that respect, he intends the debtor to have another benefit which has no necessary connection with the former. Where the testator does not mention the debt, but gives the debtor a legacy of equal or greater amount, he tltereby benefits the debtor to at least the same ex- tent, by giving him the means of paying the debt, as 1 St. 2 1108, 1122; 2 Sp. 605-8; Jefferies v. Mitchell, 20 Beav. 15; Hassell ». Hawkins, 4 Drew. 468; Cole v. Willard, 25 Beav. 568; Hammond ». Smith, 33 Beav. 452; Fairer v. Park, L. R. 3 Ch. D. 309.* 2 St. g 1123. * Gilliam v. Brown, 48 Miss. 641 ; Strong +. Williams, 12 Mass. 391." cs es 364 . SATISFACTION. if he had directly forgiven the debt, but had given the debtor nothing, or nothing but the overplus; and his reason for thus giving the debtor the means of paying the debt, without alluding to the debt, may have been one of kind consideration towards the debtor, namely, in order that none but the executor might be aware of the debt. 713. V. Where an annuity to the separate use of a married woman is charged on an estate, the gift of an annuity to her generally, and charged upon property of a different nature, though to the same amount and payable on the same days, is not a satis- faction! And where a person executes a deed by which he gives annuities to certain persons, and then executes another deed by which he gives other annuities to those persons, there is no presumption that the latter were intended to be a substitute for the former, especi- ally where the annuities given by the second déed are of less amount, or the first deed contains a power of revocation which is not exercised by the secofid deed.’ Covenantto 0 Where there is a covenant on marriage to settle lands. settle specific lands, it will not ordinarily be satisfied by suffering other lands of equal value to de- Covenantto Scend.® And an appointment of a sum by bequeath. will is not a satisfaction of a covenant to be- queath a like sum.* 714. 1 2 Sp. 609. 2 Palmer v. Newell, 20 Beay. 32; 8D, M. & G. 74. % 2 Sp. 610. 4 Graham v. Wickham (No. 1), 31 Beav. 447; 1 D. J. & 8.474.* V. Annuity. * The general rule is that where legacies are given by different instruments, the presumption is, prima facie, that two legacies are PARTITION. 335 CHAPTER XI. OF PARTITION; OF SETTLEMENT OF BOUNDARIES ; AND OF ASSIGNMENT OF DOWER. SECTION I. OF PARTITION.(a) THE mode in which a partition is effected, ypoao of is by first ascertaining the rights of the sev- Partition. eral parties interested, and then issuing a commission to make the partition; and on the return of the com- mission and confirmation of the return by the Court, the partition is finally completed by mutual convey- ances of the lots made to the several parties.!. For- 1 St. 2 650; and on this subject see Agar v. Fairfax, 2 Lead. Cas. Eq., 2d ed. 374, et seg.* intended, and that the last is not a mere repetition of the former ; nor will the fact that each legacy is for the same amount in money, operate to repel the presumption that they are cumulative, unless there are other circumstances to repel it. St. Eq. Jur. 3 1128a, and note. (a) See stat. 31 and 32 Vict. c. 40, and 89 and 40 Vict. c. 17, at the end of the book. * The ground of equitable jurisdiction, as said by Lord Eldon in Agar v. Fairfax, arises “in the extreme difficulty attending the process of partition at law; where the plaintiff must prove his title, as he declares, and also the titles of the defendants, and judg- ment is given for partition according to the respective titles so proved.” 366 PARTITION. merly, if the conveyances could not be executed on account of infancy, or on account of an executory in- terest, the decree could only put the parties in posses- sion, and secure them in the enjoyment of the parts allotted to them, until conveyances could be made. But by the stat. 13 and 14 Vict. c. 60, s. 30, in a de- cree for partition of lands, it shall be lawful for the Court to declare that any of the parties to the suit wherein such decree is made are trustees of such lands or any part thereof, or to declare concerning the in- terests of unborn persons who might claim under any party to the suit, or under the will or voluntary settle- ment of any person deceased who was during his life- time a party to the contract or transaction concerning which such decree is made, that such interests of un- born persons are the interests of persons, who, upon coming into existence, would be trustees within the meaning of the Act; and thereupon it shall be lawful for the Lord Chancellor, or the Court of Chancery, as the case may be, to make such order or orders as to the estates, rights, and interests of such persons, born or unborn, as the Court or the Lord Chancellor might, under the provisions of the Act, make concerning the estates, rights, and interests of trustees born or un- born. 715. eee As a partition is completed by mutual beshown. conveyances, it is essential to show a title; and if there is anything suspicious in the plaintiff’s title, the Court will leave him to Law, unless it is a case of equitable title.” 716. 1 St. 2 652. * St. 2 653. PARTITION. 367 The Court will decree a partition even in a suit by or against persons who are only pereeer tenants for life or years; and the decree will havelicnited be binding on all whom they virtually rep- Pa resent, but not on other persons. Thus, a decree in a suit by or against a tenant for life, will be binding on the remainderman who is not in esse at the time, on the ground of virtual representation, if the Court is of opinion that it will be for the benefit of such remain- derman that the agreement should be carried into effect, either as it stands, or with such variations as the Court may think proper. 717. But on the other hand, a reversioner cannot main- tain a suit for a partition.? 718. The Court will frequently decree a pecu- niary compensation to one, in order to make cae up his share to its proper value, where the pee estate cannot conveniently be divided into equal parts.’ And instead of dividing each of several distinct es- tates, the whole of one estate is frequently allotted to one person, and the whole of another estate to another person, and a compensation is directed to be made to the person to whom the less valuable estate is allotted.* So, to one who has made improvements on the estate, the property on which the improvements have been made will be assigned, or a compensation will be given him. And care will be taken to assign to the parties such portions of the estate as will best accommodate " St. 3 656, 656 a. 2 Evans v. Bagshaw, L. R. 5 Ch. Ap. 340. 9 St. 3 654. * St. 3 557. 368 BOUNDARIES. them; and the Court will act according to its own no- tions of general justice and equity between the parties, and will, if necessary for that purpose, direct a distinct partition of each of several portions of the estate in which derivative alienees have distinct interests, in order to protect those interests; or it will give other special directions to the commissioners, and nominate the commissioners, instead of allowing them to be nominated by the parties.’ 719. SECTION II. OF THE SETTLEMENT OF BOUNDARIES. aemciat THE general rule observed by Courts of rule. Equity is, not to exercise jurisdiction in set- tling boundaries on the mere ground that they are a subject of controversy, but to require that there should be some superadded equity.? 720. pate Thus, if the confusion of boundaries has through —_ been occasioned by fraud, that will constitute a sufficient ground for the interference of the 1 St. @ 655, 656, b,c. ® St. 4 615-623; and on this subject see Wake v. Conyers, 2 Lead. Cas. Eq., 2d ed. 362, et seg.* * A Court of Equity has no jurisdiction to try a naked question of title to real estate. Hickman v. Cook, 3 Humphreys, 640; The Alton M. & F. Ins. Co. v. Buckmaster, 18 Il]. 201. Controversies respecting lost bounds not presenting any peculiar Equity have been left to be settled by proceedings at Law. Perry ®. Pratt, 31 Conn. 483. DOWER. 369 Court. And if the fraud is established, the Court will by commission ascertain the boundaries, if practicable ; and if that is not-practicable, it will do justice between the parties by assigning reasonable boundaries or setting out lands of equal value.’ 721. In the next place, there will be a sufficient 4). rasion ground for the jurisdiction, if the confusion through fault of a has arisen by the negligence or misconduct R&ty,rhose uty it was of a person standing in such a relation to the [pPfesez’e opposite party as imposed upon him an ob- “"* ligation to preserve and protect the boundaries. Thus, a tenant or a copyholder is under an implied obliga- tion to preserve them ; and if through his default there arises a confusion of boundaries, the Court will inter- fere as against such tenant or copyholder. to ascertain and fix them. But even in these cases, it is indispen- sable to aver and to establish by proofs that the boun- daries cannot be found without being ascertained under the order of the Court.2 722. Equitable proceedings will also lie when yyuttipticity they will prevent multiplicity of suits? 723, of su SECTION III. OF THE ASSIGNMENT OF DOWER. Courts of Equity will now exercise a concurrent jurisdiction with Courts of Law in the assignment of dower in all cases, after the title of the widow, if " St. 2 619, 623. 2 St. 2 620. 3 St. 2 621. 370 DOWER. disputed, has been established. There is no difficulty in maintaining this jurisdiction, as the case can scarcely be supposed in which the widow may not either want a discovery of the title-deeds, or of dowable lands, or some other kind of discovery, or some assistance which it was the peculiar province of the Court of Chancery to afford.’ 724. 1 St. 2 624-631; 2 Lead. Cas. Eq., 2d ed. 402, 403; Tudor’s Lead. Cas. Real Prop., 2d ed. 55. . TITLE IV. Of Protective Equity. Errespectibe of Disability. ie CHAPTER I. OF PROTECTION FROM LITIGATION OR INJURY, AF- FORDED BY THE CANCELLING, DELIVERING UP, AND SECURING OF DOCUMENTS. Courts of Equity frequently cancel, or rescind, or order the delivery up of instruments which have an- swered the end for which they were created, : ; s » Voidabl or instruments which are voidable, or in- and void struments which are in reality void and yet ments and : ee those which apparently valid. This is done upon the have an- principle, as it is technically called, quia ar poh timet, that is, for fear that such instruments may be vexatiously or injuriously used, when the evidence to impeach them may be lost or diminished, or for fear that they may throw a cloud or suspicion over the plaintiff’s title and interests." 725. But where the illegality of the instrument appears on the face of it, so that its nullity can admit of no doubt, Equity will not interfere ; because, in that case, the ground for interference does not exist.’ 726. 1 St. 2 694, 698, 699, 700, 705; Cooper v. Joel, 27 Beav. 313; W— ». B—, and B— v. W—, 32 Beav. 574; Onions v. Cohen, 2 Hem. & M. 354.* 2 St. 2 700 a. * Petit v. Shepherd, 5 Paige, 493; Fish v. French, 15 Gray, 520. 374 CANCELLING OF DOCUMENTS, ETC. Courts of Equity will generally cancel or rescind instruments, or order them to be delivered up, where there is an actual or constructive fraud, and the plain- tiff has not participated therein, or is not in pari delicto ; or where there is an offence against public 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.’ 727. 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 age; so that his guilt may be far less in degree than that of his associate in the offence? 728. In cases of usury,(a) if the lender comes into a Court of Equity, seeking to enforce the contract, the Court will refuse to give any assistance, and will re- " St. 2 298, 695; W— v. B—, and B— v. W—, 32 Beav. 574.* 2 St. 2 300. (a) See supra, par. 40, note. * This was a recent English case where the daughter concurred with her father in a covenant to surrender copyholds by way of mortgage to one who loaned a sum of money to the father; part of the consideration being the permission of the father for the mortgagee to continue his visits to the daughter, whom he was seducing or had seduced ; upon bill and cross-bill to enforce, and to set aside the contract, the Court at first considered, that it could not interfere for either party, but ultimately ordered the deed to be cancelled, and that the grantee should pay the costs of both sides. St. Eq. Jur. 300a. CANCELLING OF DOCUMENTS, ETO. 375 pudiate the contract. But, on the other hand, if the borrower comes into a Court of Equity, seeking 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, de- ducting the usurious interest.’ And if the borrower has paid the money, Courts of Equity, and indeed Courts of Law also, will assist him to recover back the excess 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 volun- tarily 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 necessities im- posed on him.’ 729. But relief is not granted where both parties are truly in pari delicto ; for the maxim is, that in pari delicto, potior est conditio defendentis et possidentis.2? An ex- ception occurs, however, as already stated, where pub- lic policy would thereby be promoted ; as in the case of a gaming security,(a) which is void, and money paid on it may be recovered back.* 730. The Court will not interfere between a voluntary voluntary donor and donee, either by causing *** a voluntary deed or writing to be delivered up to the donor, or by decreeing specific performance of it in favor of the donee, unless the subsequent conduct of 1 St. 2 301. 2 St. 2 302. 5 St. 298, 299. 4 St. 2 303, 304. (a) See Smith’s Manual of Common Law, Am. ed. 65. 376 CANCELLING, DELIVERING UP, the donor has raised an equity for valuable considera- tion in favor of the donee. Anda purchaser for value of an interest in land from a voluntary donor, cannot require the voluntary deed or agreement to be delivered up to him to be cancelled.*. 731. Where, just before going through the marriage cer- emony with his deceased wife’s sister, a man vests property in trustees for her benefit, neither he nor his representatives after his death can set the gift or settlement aside.? 732. A settlement made by an unmarried lady shortly after majority, without contemplating marriage with any particular person, will be set aside as an improvi- dent act of a person who ought to be protected by the Court. 733. Forgedin. | Forged instruments may be decreed to be Siruments. delivered up, without any prior trial, on the point of forgery. 734. Assistance will often be given even in ofunexeee Tegard to unexceptionable instruments. A struments ~ Court of Equity will order them to be de- tule to livered up to the party entitled to them, 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 re- late, and he is not in possession of the property, and 1 De Hoghton v. Money, L. R. 1 Eq. 154; Dillwyn v. Llew- elyn, 4D. F. & J. 517. ? Ayerstv. Jenkins, L. R. 16 Eq. 275. * Everitt . Everitt, L. R. 10 Eq. 405. * St. 3 701. AND SECURING OF DOCUMENTS. 377 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 he prays the delivery ; in such case, he must first establish his title to the property, before he can entitle himself to a delivery of the deeds.1 735. Again, persons having rights and interests , . a q A Inspection in real estate are entitled to an inspection and copies and copies of the deeds under which they , claim title.” 736. i And remaindermen and reversioners, and securing of other persons having limited or ulterior in- ¢°°v™*™s terests in real estate, have a right, in many cases, to have the title-deeds secured or brought into Court for preservation. But this will not be directed unless it clearly appears that there is danger of a loss or destruc- tion of the instruments in the hands of the persons pos- sessing them ; and also that the interest of the plaintiff is not too contingent or too remote to warrant the pro- ceeding.® 737. Bonds and notes given by a relative have _ been ordered to be delivered up by executors op at een or administrators, where it has been fairly more inferable, from the conduct of the deceased, that he did not intend that any use should be made of the securi- ties.* 738. ’ St. 3 703. 2 St. 2 704. 3 St. 3 704. 4 See St. 3 705 a-706 a. 32 378 INTERPLEADER. CHAPTER IIL. OF PROTECTION FROM LITIGATION RESPECTING THE PROPERTY OF ANOTHER, BY MEANS OF INTER- PLEADER. . THERE was a process of interpleader at Taw pro. Common Law, but it had a very narrow ee range of application ;1 and prior to the stat- ute 1 and 2 Will. IV, c. 58, it fell into entire disuse; and although the application of the legal remedy of interpleader has been greatly extended, yet the juris- diction in Equity seems to have been left substantially to the old foundation.’ 739, a An interpleader is a proceeding by a per- ofanimier- son from whom two or more other persons, Pieader- whose titles are connected (by reason of the one being derived from the other, or of both being de- rived from a common source), and whose rights he cannot readily determine, have claimed the same thing, wherein he himself claims no interest, and the object of which is to compel them to contest the matter be- tween themselves, without involving him in any vexa- tious litigation respecting it.“ 740. ' St. ¢ 801. 2 St. @ 805. 3 St. 3 823. ‘ See St. 3 806, and notes, and -807, 810-816, 820, 824; Jones». Thomas, 2 Sm. & Gif. 186.* * Spring v. So. C. Ins. Co., 8 Wheat. 268; Mitford Eq. Pl. (Ty- ler’s ed.), 234. INTERPLEADER. 379 Thus, where a tenant is liable to pay rent, but there are several persons claiming title fone in the to it, in privity of contract or tenure, he is Tedd entitled to file an interpleader to compel Oe them to ascertain to whom the rent is payable.’ But if a claim to rent is set up by a mere stranger, under a title paramount, and not in privity of contract or tenure, the tenant cannot compel his landlord to inter- plead 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.’ Besides, the tenant is under a con- tract to pay the rent to his landlord.’ 741. Where the title of the one claimant was 4. joction not derived from that of the other, nor were Pctween the they both derived from the same common {vp So that even an heir-at-law has not a right to the inspection. of deeds in the possession of a devisee, unless he is an heir in tail; in which case he is entitled to see the 1 St. 2 1489, 1490.* ® St. 21490. 3 St. 2 1489. # St. 2 1496. 5 St. 2 1489, 1490, note. * Mitf. and Tyl. Eq. Pl. 281, et seq. DISCOVERY. 465 deeds creating the estate tail. 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 affirmative title in the party bringing the bill.? 10. That the discovery is not material in the suit.2 11. That the defendant has no interest in the suit, but is a mere witness ;* unless the bill charges him with fraud ; as in the case of an attorney who has assisted a client in obtaining a fraudulent deed ;* or unless he is the officer of a corporation; in which case he may be made a party to a bill for discovery against such corporation, on the ground, it has been said, that a corporation, being an artificial person, cannot be com- pelled to make any discovery on oath.© 12. A dis- covery may in general be resisted where it would dis- close circumstances that would subject the defendant to a penalty or forfeiture, or to a criminal prosecution, or to ecclesiastical censures. To this rule, however, there are various exceptions; as in the case of fraud or con- spiracy, or a statutory prohibition of resisting a discov- ery, or an expressed or implied contract not to resist discovery.’ 13. A discovery may also be resisted on the ground that it is perfectly clear that the action or 1 St. 21491, 1492. 2 St. 2 1493 a, note. 2 St. 4 1489, 1497. # St. 41489, 1499. ® St. 4 1500. 6 St. 2 1501. 7 See St. 2 1494, and note, and Story’s Eq. Plead. c. xi, and 1 Dan. C. P., 2d ed. by Headlam, 517-525.* * Mitf. & Tyl. Eq. Pl. 289, et seg. 466 DISCOVERY. defence is not maintainable at Law. 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.” But although a party may now examine his opponent at law under the Stat. 14 and 15 Vict. ¢. 99, s. 2, and under the Stat. 17 and 18 Vict. ¢. 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 en- titled to a discovery in Equity in aid of his action or defence.’ 15. A discovery may also be resisted on the ground that it is in aid of a controversy pending before arbitrators, who, not being the regular tribunals for administering justice, but judges of the party’s own choice, must submit to the inconvenience incident to their position. But this has no application to a com- pulsory arbitration ordered in an action.? 16. In gen- eral, arbitrators are not compellable to disclose the grounds on which they made their award. 17. That the defendant is a bond fide purchaser for valuable consideration, and without notice, who has paid his 1 St. 3 1493 a. 2 St. 2 1495. 3 Lovell v. Galloway, 17 Beav. 1; Senior v. Pritchard, 16 Beav. 473; British Empire Shipping Company v. Somes, 3 K. & J. 488, 436. : 4 St. 3 1495.* 5 British Empire Shipping Company v. Somes, 3 K. & J. 433, 436. ® St. 2 1498. * St, Eq. Pl. 3 554, 555. DISCOVERY. 467 purchase-money, and has an equal equity with the plaintiff ;’ or that the defendant is a sub-purchaser, whether with or without notice, from such bon@ fide purchaser without notice.” But a judgment creditor by elegit is not deemed a purchaser within the above rule? 18. A jointress is entitled to protect herself against a disclosure of her jointure deed, if the party seeking the discovery is not capablé of confirming the jointure, or if, being capable, he does not offer to con- firm it. If he is capable and offers to confirm it, the discovery will be granted as soon as the confirmation is made, but not before; for otherwise it might happen, that after the discovery, his offer might become in- effectual by the intervention of other interests.* 907. 1 St. ¢ 1502, 1503. 2 St. @ 1503 a. 5 St. 2 1503 b. 4 St. 3 1504. 468 TAKING AND PRESERVING TESTIMONY. CHAPTER IL. OF THE TAKING “ND PRESERVING OF TESTIMONY IN AID OF A SUIT OR DEFENCE IN ANOTHER COURT. ONE species of bill filed for this purpose is petuate ts a bill to perpetuate testimony. This is a mm" pill which is filed to preserve testimony, * when it is in danger of being lost, before the matter to which it relates can be made the subject of judicial in- vestigation. Thus, when the plaintiff’s title is in re- mainder, 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 necessarily 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 be lost by the death of his witnesses, and the adverse party might purposely delay his suit with a view to that very event.” An instance of this occurs where a devisee, in order to perpetuate the testimony 1 St. 4 1506. 7 St. 2 1508; Ellice », Roupell (No. 1), 32 Beav. 299; s. ¢. (No. 2), 32 Beav. 308; s. c. (No. 3), 32 Beay. 318. TAKING AND PRESERVING TESTIMONY. 469 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 en- titled to his costs, even though he contests the will. This is what is usually meant by proving a’ will in Chancery.’ 908. Such a bill cannot be brought by a defendant 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.? 909. Courts of Equity will not perpetuate testimony in support of a right which may be barred by the de- fendant.* 910. Such a bill may be filed in relation to mere personal demands, and even in cases of penalty or forfeiture.+ 911. Another kind of bill of a similar character, a at but founded on distinct circumstances, is a testimony . . i . de bene esse. bill to take testimony de bene esse, which is one that is filed to preserve testimony respecting a vested interest in the plaintiff, which is the subject of an action or suit already commenced, and which de- pends on the testimony of a single witness, or on the 1 St. 2 1506.* 2 Earl Spencer v. Peck, L. R. 3 Eq. Cas. 415. 3 St. 3.1511. 4 St. 3 1509. * 2 Blackst. Comm. 450. 470 TAKING AND PRESERVING TESTIMONY. sole testimony of aged or infirm persons, or on testi- mony that cannot be given viva voce in the ordinary way. Thus, an order will be made to take the testi- mony 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 pre- serve the testimony of a witness who is capable of at- tending, if he is a single witness to an important fact in the cause.’ 912. Whenavi Where a person is able to bring a matter tosake and into immediate judicial investigation, and yet testimony, he has not commenced any suit, the Court entertained. wil] not entertain a bill of any kind to take and preserve testimony in his favor. For if, in such case, the evidence may be procured viva voce in the ordinary way, there is no need whatever of having re- course to written depositions in place of viva voce evi- dence.* And even if the evidence cannot be procured in the ordinary way, yet a bill to take the testimony 1 St. 2 1513, 1514. See Judgment in Earl Spencer v. Peck, L. R. 3 Eq. Cas, 421.* 2 St. 4 1508; Ellice v. Roupell (No. 1), 32 Beav. 299; s. c. (No. 2), 32 Beav. 308; s. c. (No. 8), 32 Beav. 318. * By the common law, Courts of Law have no authority to issue commissions to take the testimony of witnesses de bene esse in any case. St. Eq. Jur. ¢ 1514; 3 Blackst. Comm. 383. This defect was long since cured in America, and the authority given to our Courts of Common Law, to take the depositions of witnesses both at home and abroad, has been carried to an extent far beyond what has been exercised by Courts of Equity. St. Eq. Jur. ¢ 1514, note. TAKING AND PRESERVING TESTIMONY. 471 de bene esse will not be entertained except in aid of a suit already commenced; because if it were, the plain- tiff 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 per- jury, 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 justice of the case might be entirely defeated.1 913. Commissions to take the testimony of witnesses abroad, although confined to civil actions, are grant- able in cases of civil tort, such as libel.” 914. Even where an order is made to take the When depo- written deposition of witnesses, on a bill to sitions aken on perpetuate testimony, or to take testimony such bills not al- de bene esse, the evidence so taken must not lomed to be be used, if the witnesses are alive, and capable of attending, and within the jurisdiction at the time of the trial. 915. 1 See St. 2 1508 and note, and 1513, note. 2 St. @ 1515. 3 St. 3 1507, 1508, note, 1512, 1513, note, and 1516, note. 31 anp 32 Vicr. Cap. XL. An Act to amend the Law relating to Partition. [25tH June, 1868. BE it enacted by the Queen’s most excellent Majesty, by and with the advice’'and consent of the Lords Spir- itual and Temporal, and Commons, in this present Parliament 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” ‘em the means the Court of Chancery in England, ‘the Court of Chancery in Ireland, the Landed Estates Court in Ireland, and the Court of Chancery of the County Palatine of Lancaster, within their re- spective jurisdictions. Salada) 3. In a suit for partition, where, if this Court to, Act had not been passed, a decree for parti- instead of tion might have been made, then if it ap- pears to the Court that, by reason of the na- ture of the property to which the suit relates, or of the 31 AND 32 vVIcTORL&, CAP. 40. 473 Partition. number of the parties interested or presumptively in- terested 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 di- vision of the property between or among them, the Court may, if it thinks fit, on the request of any of the parties interested, and notwithstanding the dissent or disability of any others of them, direct a sale of the property accordingly, and may give all necessary or proper consequential directions. 4. In a suit for partition, where if this 1), o, Act had not been passed, a decree for parti- aera tion might have been made, then if the party Priatties or parties interested, individually or collec- een tively to the extent of one moiety or upwards in the property to which the suit relates, request 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 interested, the Court shall, unless it sees good reason to the contrary, direct a sale of the property accordingly, and give all necessary or proper consequential directions. 5. In a suit for partition, where, if this Act had not been passed, a decree for parti- ciacne tion might have been made, then if any pasty de party interested in the property to which the , 40 474 31 anp 82 victorI#, cap. 40. Partition. 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 par- ties interested, 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 re- questing 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 necessary or proper consequential directions. Autoovity 6. On any sale under this Act the Court inteetet may, if it thinks fit, allow any of the parties ae: interested in the property, to bid at the sale, on such terms as to non+payment of deposit, or as to setting off or accounting for the purchase-money or any part thereof instead of paying the same, or as to any other matters, as to the Court seem reasonable. ee 7. Section Thirty of The Trustee Act, of ‘Trustee 1850, shall extend and apply to cases, where GSandt4 in suits for partition, the Court directs a sale instead of a division of the property. om 8. Sections Twenty-three to Twenty-five Application of proceeds (both inclusive) of the Act of the session of (19 and 20 the nineteenth and twentieth years of Her Majesty’s reign (Chapter One hundred and 3L AND 32 VICTORIA, cAP. 40. 475 Partition. twenty), “to facilitate Leases and Sales of Settled Estates,” shall extend and apply to money to be re- ceived on any sale effected under the authority of this Act. 9. Any person who, if this Act had not been passed, might have maintained a suit parties for partition, may maintain such suit against oe any one or more of the parties interested, without serv- ing the other or others (if any) of those parties ; and it shall not be competent to any defendant in the suit to object for want of parties; and at the hearing of the cause the Court may direct such inquiries 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 parties to the suit; and all such persons may have liberty at 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 ae make such order as it thinks just respecting partition costs up to the time of the hearing. ner 476 31 AND 32 VICTORIA, CAP. 40. Partition. antec 11. Sections Nine, Ten, and Eleven of the eral orders Chancery Amendment Act, 1858, relative to (lana 22 the making of general orders, shall have Vicl.27) effect as if they were repeated in this Act, and in terms made applicable to the purposes thereof. Jurisdiction 12. In England the County Courts shall Goursin have and exercise the like power and au- Bacd29 thority as the Court of Chancery in suits for Vicee-®) 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 huridred pounds, and the same shall be had and exercised in like manner and subject to the like provisions as the power and authority conferred by Section One of the County Courts Act, 1865. 39 AND 40 VICTORIH, cap. 17. AT7 Partition. 89 anp 40 Vict. Cap. XVII. An Act to amend the Partition Act, 1868. [277 June, 1876. BE it enacted by the Queen’s most excellent Majesty, by and with the advice and consent of the Lords Spir- itual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows: 1. This Act may be cited as the Partition Act, 1876, and shall be read as one with the Partition Act, 1868. Short title. 2. This Act shall apply to actions pending pptication at the time of the passing of this Act as well **** as to actions commenced after the passing thereof, and the term “action” includes a suit, and the term “judg- ment” includes decree or order. 3. Where in an action for partition it ap- power to pears to the Court that notice of the judg- ores ice . f notice of ment on the hearing of the cause cannot be Genone° tea served on all the persons on whom that no- special: tice is by the Partition Act, 1868, required °*** 478 39 anp 40 VICTORI®, CAP. 17. Partition. to be served, or cannot be so served without expense disproportionate to the value of the property to which the action relates, the Court may, if it thinks fit, on the request of any of the parties interested in the prop- erty, and notwithstanding the dissent or disability of any others of them, by order, dispense with that service on any person or class of persons specified in the order, and, instead thereof, may direct advertisements to be published at such times and in such manner as the Court shall think fit, calling upon all persons claiming to be interested in such property who have not been so served to come in and establish their respective claims in respect thereof before the Judge in Chambers within a time to be thereby limited. After the expiration of the time so limited all persons who shall not have so come in and established such claims, whether they are within or without the jurisdiction of the Court (includ- ing persons under any disability), shall be bound by the proceedings in the action as if on the day of the date of the order dispensing with service they had been served with notice of the judgment, service whereof is dispensed with ; and thereupon the powers of the Court under the Trustee Act, 1850, shall extend to their in- terests in the property to which the action relates as if they had been parties to the action; and the Court may thereupon, if it shall think fit, direct a sale of the prop- erty and give all necessary or proper consequential di- rections. 39 AND 40 VictoRIa, CAP. 17. 479 Partition. 4, When an order is made under this Act : : . : : Proceedings dispensing with service of notice on any per- where ser= son or class of persons, and property is sold pensed by order of the Court, the following pro- ree visions shall have effect: (1.) The proceeds of sale shall be paid into Court to abide the further order of the Court: (2.) The Court shall, by order, fix a time, at the expiration of which the proceeds will be distributed, and may from time to time, by further order, extend that time: (3.) The Court shall direct such notices to be given by advertisements or otherwise as it thinks best adapted for notifying to any person on whom service is dispensed with, who may not have previously come in and established their claims, the fact of the sale, the time of the intended distribution, and the time within which a claim to participate in the proceeds must be made: (4.) If at the expiration of the time so fixed or extended the interests of all the persons in- terested have been ascertained, the Court shall distribute the proceeds in accordance with the rights of those persons : (5.) If at the expiration of the time so fixed or extended the interests of all the persons in- terested have not been ascertained, and it ap- pears to the Court that they cannot be ascer- 480 39 anp 40 vicToRIm, CAP. 17. Partition. Provision for case of successive sales in same action. tained, or cannot be ascertained without expense disproportionate to the value of the property or of the unascertained interests, the Court shall distribute the proceeds in such manner as appears to the Court to be most in accordance with the rights of the persons whose claims to participate in the proceeds have been established, whether all those persons are or are not before the Court, and with such reservations (if any) as to the Court may seem fit in favor of any other persons (whether ascertained or not) who may appear from the evidence before the Court to have any prima facie rights which ought to be so provided for, although such rights may not have been fully established, but to the exclusion of all other persons, and thereupon all such other persons shall by virtue of this Act be excluded from partici- pation in those proceeds on the distribution thereof, but notwithstanding the distribution any excluded person may recover from any participating person any portion received by him of the share of the excluded person. 5. Where in an action for partition two or more sales are made, if any person who has by virtue of this Act been excluded from participation in the proceeds of any of those sales establishes his claim to participate in the pro- 39 AnD 40 VIcToRIa, cap. 17. 481 Partition. ceeds of a subsequent sale, the shares of the other per- sons interested in the proceeds of the subsequent sale shall abate to the extent (if any) to which they were increased by the non-participation of the excluded person in the proceeds of the previous sale, and shall to that extent be applied in or towards payment to that person of the share to which he would have been entitled in the proceeds of the previous sale if his claim’ thereto had been established in due time. 6. In an action for partition a request for Request by sale may be made or an undertaking to pur- married chase given on the part of a married woman, infant,’or infant, person of unsound mind, or person tnder. . “7: disability. under any other disability, by the next friend, guardian, committee in lunacy (if so authorized by order in lunacy), or other person authorized to act on behalf of the person under such disability, but the Court shall not be bound to comply with any such request or undertaking on the part of an infant unless it appear that the sale or purchase will be for his benefit. 7. For the purposes of the Partition Act, , sion for 1868, and of this Act, an action for parti- pazition to | tion shall include an action for sale and dis- 2¢jien for tribution of the proceeds, and in an action @pyjbutom for partition it shall be sufficient to claim a °° sale and distribution of the proceeds, and it shall not be necessary to claim a partition. 41 482 30 AND 31 viIcTORIm, cap. 48. Sale of Land by Auction. 30 AND 31 Vict. Cap, XLVITI. An Act for Amending the Law of Auctions of Estates. [15Ta Jury, 1867. BE it enacted and declared by the Queen’s most ex- cellent Majesty, by and with the advice and consent of Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows: seals 1. This Act may be cited for all purposes "as the Sale of Land by Auction Act, 1867. Commence. 2+ This Act shall commence and take effect mentofAct. on the first day of August, 1867. ; 3. “ Auctioneer” shall mean any person nterpreta- 5 . . tion of selling by public auction any land, whether in lots or otherwise : “Land” shall mean any interest in any messuages, lands, tenements, or hereditaments, of whatever tenure: “Agent” shall mean the solicitor, steward, or land agent of the seller : “Puffer” shall mean a person appointed to bid on the part of the owner. 30 AND 31 VICTORLH, CAP. 48. 483 Sale of Land by Auction. 4, And whereas there is at present a con- : flict between Her Majesty’s Courts of Law ralaeatd: and Equity in respect to the validity of sales alig invalid by auction of land where a puffer has bid, ~ ae although no right of bidding on behalf of the owner was reserved, the Courts of Law holding that all such sales are absolutely illegal, and the Courts of Equity under some circumstances giving effect to them, but even in Courts of Equity the rule is unsettled: And whereas it is expedient that an end should be put to such conflicting and unsettled opinions: Be it there- fore enacted, that from and after the passing of this Act whenever a sale by auction of land would be in- valid at Law by reason of the employment of a puffer, the same shall be deemed invalid in Equity as well as at Law. 5, And whereas as sales of land by auction . are now conducted many of such sales are spesting | illegal, and could not be enforced against an out reserve, unwilling purchaser, and it is expedient for the safety of both seller and purchaser that such sales should be conducted as to be binding on both parties: Be it therefore enacted by the authority aforesaid as follows:.That the particulars or conditions of sale by auction of any land shall state whether such land will be sold without reserve, or subject to a reserved price, or whether a right to bid is reserved; if it is stated that such land will be sold without reserve, or to that 484 30 anp 31 VICTORIE, CAP. 48. Sale of Land by Auction. effect, then it shall not be lawful for the seller to employ any person to bid at such sale, or for the auctioneer to take knowingly any bidding from any such person. (a) seen: 6. And where any sale by auction of land specting.., is declared either in the particulars or con- toright of | ditions of such sale to be subject to a right ashe may for the seller to bid, it shall be lawful for the Proper. seller or any one person on his behalf to bid at such auction in such manner as he may think proper. practiceot 2»: And whereas it is the long-settled prac- opening yy tice of Courts of Equity in sales by auction exder of of land under their authority to open bid- excepto += dings even more than once, and much incon- dae” °° venience has arisen from such practice, and tinued. jt is expedient that the Courts of Equity should no longer have the power to open biddings after sales by auction of land under their authority : Be it further enacted by the authority aforesaid, that the practice of opening the biddings on any sale by auction of land or by virtue of any order of the High Court of Chancery shall, from and after the time ap- pointed for the commencement of this Act, be discon- tinued, and the highest bond fide bidder at such sale, provided he shall have bid a sum equal to or higher than the reserved price (if any), shall be declared and (a) In Gilliat ». Gilliat, L. R. 9 Eq. 60, it was held that it is illegal to employ a person to bid up to the reserved bid, unless the right to do so is expressly stipulated for. 30 AND 31 VICTORIA, CAP. 48. 485 Sale of Land by Auction. allowed the purchaser, unless the Court or Judge shall, on the ground of fraud or improper conduct in the management of the sale, upon the application of any person interested in the land (such application to be made to the Court or Judge before the Chief Clerk’s certificate of the result of the sale shall have become binding), either open the biddings, holding such bidder - bound by his bidding, or discharge him from being the purchaser, and order the land to be resold under such terms as to costs or otherwise as the Court or Judge shall think fit. 8. Except as aforesaid, nothing in this cee . Ourt 0. Act contained shall affect any sale of land Chancery, Cash made under or by virtue of any order of the penne High Court of Chancery in England, of the from orera- High Court of Chancery in Ireland, or of the Landed Estates Court there, or of the Court of Chan- cery in the County Palatine of Lancaster, or of any County or other Court having jurisdiction in Equity. 9. This Act shall not extend to Scotland. Notts extend to Scotland. 486 36 AND 37 VICTORIZ, CAP. 66. The Supreme Court of ; Judicature Act, 1873. 36 AND 37 Vict. Cap. LXYI. The Supreme Court of Judicature Act, 1873. SEcTIoNn 24. IN every civil cause or matter commenced Equity tobe in the High Court of Justice Law and Equity rently ad. shall be administered by the High Court of mone: Justice and the Court of Appeal respectively according to the Rules following : (1.) If any plaintiff or petitioner claims to be en- titled to any equitable estate or right or to relief upon any equitable ground against any deed, instrument, or contract, or against any right, title, or claim whatso- ever asserted by any defendant or respondent in such cause or matter, or to any relief founded upon a legal right, which heretofore could only have been given by a Court of Equity, the said Courts respectively, and every judge thereof, shall give to such plaintiff or pe- titioner such and the same relief as ought to have been given by the Court of Chancery in a suit or proceed- ing for the same or the like purpose properly instituted before the passing of this Act. 36 AND 37 VICTORIA, CAP. 66. 487 The Swpreme Court of Judicature Act, 1873. (2.) If any defendant claims to be entitled to any equitable estate or right, or to relief. upon any equi- table ground against any deed, instrument, or contract, or against any right, title, or claim asserted by any plaintiff or petitioner in such cause or matter, or alleges any ground of equitable defence to any claim of the plaintiff or petitioner in such cause or matter, the said Courts respectively, and every Judge thereof, shall give to every equitable estate, right, or ground of relief so claimed, and to every equitable defence so alleged, such and the same effect by way of defence against the claim of such plaintiff or petitioner, as the Court of Chancery ought to have given if the same or the like matters had been relied on by way of defence in any suit or proceeding instituted in that Court for the same or the like purposes before the passing of this Act. (3.) The said Courts respectively, and every Judge thereof, shall also have power to grant to any defend- ant in respect of any equitable estate or right, or other matter of equity, and also in respect of any legal estate, right, or title claimed, or asserted by him, all such re- lief against any plaintiff or petitioner as such defend- ant shall have properly claintéd by his pleading, and as the said Courts respectively, or any Judge thereof, might have granted in any suit instituted for that pur- pose by the same defendant against the same plaintiff or petitioner; and also all such relief related to or con- 488 36 AND 37 VICTORLE, CAP. 66. The Supreme Court of Judicature Act, 1873. nected with the original subject of the cause or matter, and in like manner claimed against any other person, whether already a party to the same cause or matter or not, who shall have been duly served with notice in writing of such claim pursuant to any Rule of Court or any order of the Court, as might properly have been. granted against such person if he had been made a de- fendant to a cause duly instituted by the same defend- ant for the like purpose; and every person served with any such notice shall thenceforth be deemed a party to such cause or matter, with the same rights in respect of his defence against such claim, as if he had been duly sued in ordinary way by such defendant. x (4.) The said Courts respectively, and every J udge thereof, shall recognize and take notice of all equitable estates, titles, and rights, and all equitable duties and liabilities appearing incidentally in the course of any cause or matter, in the same manner in which the Court of Chancery would have recognized and taken notice of the same in any suit or proceeding duly instituted therein before the passing of this Act. (5.) No cause or proceeding at any time pending in the High Court of Justice, or before the Court of Ap- peal, shall be restrained by prohibition or injunction ; but every matter of equity on which an injunction against the prosecution of any such cause or proceeding: might have been obtained, if this Act had not passed, 36 AND 37 VICTORIA, CAP. 66. 489 The Supreme Court of Judicature Act, 1873. either unconditionally or on any terms or conditions, may be relied on by way of defence thereto: Provided always, that nothing in this Act contained shall dis- able either of the said Courts from directing a stay of proceedings in any cause or matter pending before it if it shall think fit; and any person, whether a party or not to any such cause or matter, who would have been entitled, if this Act had not passed, to apply to any Court to restrain the prosecution thereof, or who may be entitled to enforce, by attachment or otherwise, any judgment, decree, rule, or order, contrary to which all or any part of the proceedings in such cause or mat- ter may have been taken, shall be at liberty to apply to the said Courts respectively, by motion in a sum- mary way, for a stay of proceedings in such cause or matter, either generally or so far as may be necessary for the purposes of justice; and the Court shall there- upon make such order as, shall be just. (6.) Subject to the aforesaid provisions for giving effect to equitable rights and other matters of equity in manner aforesaid, and to the other express provisions of this Act, the said Courts respectively, and every Judge thereof, shall recognize and give effect to all legal claims and demands, and all estates, titles, rights, duties, obligations, and liabilities existing by the com- mon law or by any custom, or created by any statute, in the same manner as the same would have been rec- ognized and given effect to if this Act had not passed 490 36 AND 37 VICTORLE, CAP. 66. The Supreme Court of Judicature Act, 1873. by any of the Courts whose jurisdiction is hereby trans- ferred to the said High Court. of Justice. (7.) The High Court of Justice and the Court of Appeal respectively, in the exercise of the jurisdiction vested in them by this Act in every cause or matter pending before them respectively, shall have power to grant, and shall grant, either absolutely or on such reasonable terms and conditions as to them shall seem Just, all such remedies whatsoever as any of the parties thereto may appear to be entitled to in respect of any and every legal or equitable claim properly brought forward by them respectively in such cause or matter; so that, as far as possible, all matters so in controversy between the said parties respectively may be completely and finally determined, and all multiplicity of legal proceedings concerning any of such matters avoided. SECTION 25. ; And whereas it is expedient to take occa ulesoflaw , 5 then cer-_,, Sion of the union of the several Courts whose Jurisdiction is hereby transferred to the said High Court of Justice to amend and declare the law to be hereafter administered in England as to the mat- ters next hereinafter mentioned; Be it enacted as fol- lows: 86 AND 37 VICTORIA, CAP. 66. 491 The Supreme Court of Judicature Act, 1873. (1.) [By the Supreme Court of Judicature id Act, 1875 (38 and 39 Vict. ¢. 77), s. 10, an tration of enactment is made in lieu of this Ist sub- solvent es- section; for which see supra, par. 472.] tates, (2.) No claim of a cestui que trust against . i. or UW his trustee for any property held on an ex- Limitation inapplicable press trust, or in respect of any. breach of to express trusts. such trust, shall be held to be barred by any Statute of Limitations. (3.) An estate for life without impeach- 5, .itabe ment of waste shall not confer or be deemed *** to have conferred upon the tenant for life any legal right to commit waste of the description known as equitable waste, unless an intention to confer such right shall expressly appear by the instrument creating such estate. (4.) There shall not, after the commence- ment of this Act, be any merger by opera- tion of law only of any estate, the beneficial interest in which would not be deemed to be merged or extin- guished in equity. Merger. (5.) A mortgagor entitled for the time guts for being to the possession or receipt of the rents eee and profits of any land as to which no notice eenee of his intention to take possession or to enter into the 492 36 AND 37 VICTORIA, CAP. 66. The Supreme Court of Judicature Act, 1873. receipt of the rents and profits thereof shall have bee given by the mortgagee, may sue for such possession or for the recovery of such rents or profits, or to pre vent or recover damages in respect of any trespass o1 other wrong relative thereto, in his own name only unless the cause of action arises upon a lease or othe contract made by him jointly with any other person. Assignment (6.) Any absolute assignment, by writing of debts and choses in Under the hand of the assignor (not purport: acuion: ing to be by way of charge only), of any debt or other legal chose in action, of which express notice in writing shall have been given to the debtor, trustee, or other person from whom the assignor would have been entitled to receive or claim such debt o1 chose in action, shall be, and be deemed to have been effectual in law (subject to all equities which would have been entitled to priority over the right of the as- signee if this Act had not passed), to pass and transfer the legal right to such debt or chose in action from the date of such notice, and all legal and other remedies for the same, and the power to give a good discharge for the same, without the concurrence of the assignor : Provided always, that if the debtor, trustee, or other person liable in respect of such debt or chose in action shall have had notice that such assignment is disputed by the assignor or any one claiming under him, or of any other opposing and conflicting claims to such debt or chose in action, he shall be entitled, if he think fit, 36 AND 37 VICTORIA, CAP. 66. 493 The Supreme Court of Judicature Act, 1873. to call upon the several persons making claim thereto, to interplead concerning the same, or he may, if he think fit, pay the same into the High Court of Justice under and in conformity with the provisions of the Acts for the relief of trustees. (7.) Stipulations in contracts, as to tiMe gioutation or otherwise, which would not before the 2o.00oNe passing of this Act have been deemed to be ila or to have become of the essence of such contracts in a Court of Equity, shall receive in all Courts the same construction and effect. as they would have. heretofore received in Equity. (8.) A mandamus or an injunction may be granted or a receiver appointed by an ae interlocutory order of the Court in all cases pane in which it shall appear to the Court to be just or con- venient that such order should be made; and any such order may be made either unconditionally or upon such terms and conditions as the Court shall think just; and if an injunction is asked, either before, or at, or after the hearing of any cause or matter, to prevent any threatened or apprehended waste or trespass, such injunction may be granted, if the Court shall think fit, whether the person against whom such injunction is sought is or is not in possession under any claim of title or otherwise, or (if out of possession) does or does not claim the right to do the act sought to be restrained 494 36 AND 37 VICTORI®, CAP. 66. The Supreme Court of Judicature Act, 1873. under any color of title, and whether the estates claimed by both or either of the parties are legal or equitable. (9.) In any cause or proceeding for dam- sonison aft ages arising out of a collision between ee two ships, if both ships shall be found to have been in fault, the rules hitherto in force in the Court of Admiralty so far as they have been at vari- ance with the rules in force in the Courts of Common Law, shall prevail. (10.) In questions relating to the custody and education of infants the Rules of Equity shall prevail. Infants. (11.) Generally in all matters not here- inbefore* particularly mentioned, in which there is any conflict or variance between the Rules of Equity and the Rules of the Common Law with reference to the same matter, the Rules of Equity shall prevail: Cases of con- flict not enume- rated. SEcTIoN 89. Every inferior Court which now has or Powers of : é ‘ inferior | Which may after the passing of this Act Courts ee ae : . : having have jurisdiction in Equity, or at Law and in quity an Admiralty Equity, and in Admiralty respectively, shall, jurisdiction. : . a1 . as regards all causes of action within its 36 AND 87 VICTORIM, CAP. 66. 495 The Supreme Court of Judicature Act, 1873. jurisdiction for the time being, have power to grant, and shall grant in any proceeding before such Court, such relief, redress, or remedy, or combination of rem- edies, either absolute or conditional, and shall in every such proceeding give such and the like effect to every ground of defence or counter-claim equitable or legal (subject to the provision next hereinafter contained), in as full and ample a manner as might and ought to be done in the like case by the High Court of Justice. SEcTION 90. Where in any proceeding before any such (unter. inferior Court any defence or counter-claim s3imsin of the defendant involves matter beyond fours. and the jurisdiction of the Court, such defence ‘7. or counter-claim shall not affect the competence or the duty of the Court to dispose of the whole matter in controversy so far as relates to the demand of the plain- tiff and the defence thereto, but no relief exceeding that which the Court has jurisdiction to administer shall be givén to the defendant upon any such coun- ter-claim: Provided always, that in such case it shall be lawful for the High Court, or any Division or Judge thereof, if it shall be thought fit, on application of any party to the proceeding, to order that the whole proceeding be transferred from such inferior Court to the High Court, or to any Division thereof ; 496 36 AND 37 VICTORIM, CAP. 66. The Supreme Court of Judicature Act, 1873. and in such case the Record in such proceeding shall be transmitted by the Registrar, or other proper officer, of the inferior Court to the said High Court; and the same shall thenceforth be continued and prosecuted in the said High Court as if it had been originally com- menced therein. SECTION 91. Fitavak The several rules of Law enacted and de- nes clared by this Act shall be in force and re- vor Courts. ceive effect in all Courts whatsoever in Eng- land, so far as the matters to which such rules relate shall be respectively cognizable by such Courts. INDEX. Tho figures refer to the paragraphs, and not to the pages, except where otherwise indicated. A. ABATEMENT, of debts and legacies, 471 ACCIDENT, definition of, 61-3 remediable at law, 64 not remediable at law or in equity, 65-9 remediable in equity, 70-9 arising from neglect, 66 preventing fulfilment of engagement, 67 to property in lease, 67 death of vendor before receipt of annuity, 67 defective execution of a will, 69 defective execution or non-execution of a power, 77-9 loss of deeds, 71-4 loss of bonds and unsealed securities, 75, 76, ACCOUNT, 454-465 settlement of accounts, 454 division of accounts, 455 open accounts, 456 stated accounts, 457, 458 settled accounts, 459-463 appropriation of payments, 464 partnership account, 643 agency, 465, 664 mesne profits, 665 waste, 666 tithes and moduses, 667 ACQUIESCENCE, in a breach of trust, 373 42 498 INDEX. ACTION, THINGS IN, assignment of, 432-9 ADEMPTION, of portions under a settlement, 704-7 of legacies to a child, 708, 709 no ademption of legacies to strangers, 710 ADMINISTRATION, jurisdiction as to, 466 proceedings by executor or administrator, 467 roceedings of creditors, 468 ivision of assets, 469, 470 of legal assets, 469, 471 of equitable assets, 469-471 of assets of insolvent estates and companies, 472 refunding share of estate, 473 operation of the statute of limitations as regards debts, 474 order of administration of different properties in payment of debts, legacies, and annuities, 475-488 order of satisfaction, 489-492 marshalling of assets, 493-500 in the case of charitable legacies, 496, 497 foreign assets, 501-4 ADMINISTRATORS. See ADMINISTRATION. may not derive a benefit, 163 purchase from, 192 ADVANCEMENT, 313, 314, 825 ADVISER, fraud of a confidential, 153 ADVOWSON, mortgage of, S24 AGENCY, 664, 743 AGENT, fraud. of an, 160, 362-4 sales and purchases by, 160, 162, 365 gift to, 365 liability to account, 465- AGREEMENT. See Fravp—Sprciric PERFORMANCE. ALIEN, trust for an, 271 ALIENATION, restraint on, 851 INDEX. 499 ANNUITY, not a satisfaction, 714 ANTICIPATION, restraint on, 851, 852 APPOINTMENT. See Powers. fraudulent, 201-3 election, in case of an, 681 satisfaction by an, 714 APPORTIONMENT, 622-636 APPRENTICE FEE, apportionment of, 624 APPRENTICESHIP, specific performance of articles of, 405 cancellation of, 819 ARBITRATION, interference of equity in regard to, 440-3 ASSETS. See ADMINISTRATION. ASSIGNMENT, right to call for, 48 for benefit of creditors, 247-252 in another’s name, 311-314 against public policy, 428, et seq. of pay, pensions, or prize-money, 429 of pretended titles, 430 of mere naked rights to litigate, 431 of possibilities, or things in action, 432-9 what amounts to an, 435 what must be done to obtain quasi possession under an assign- ment, 436 of mortgage, 578-582 payment to assignee of a debt, 437 assignee taking subject to equities of assignor, 439 suit against equitable assignee of a legal term, 438 of dower, 724 AUCTIONEERS, purchases by, 162 AUCTIONS, frauds on, 178 AWARDS, disclosing grounds of, 440 not compelled, 440 enforcing, 441 - setting aside, 442 500 INDEX. B. BANKRUPTS, . solicitors and trustees becoming purchasers, 162 BILL IN PARLIAMENT, fraud in relation to, 142 BILL OF EXCHANGE, destruction of, 76 BILLS OF PEACE, 747-751 BONDS, lost, 75 post-obit, 172 assignment of, 436 delivery up of, 738 BOUNDARIES, settlement of, 720-3 _ BREACH, of trust. See TrRust—TrRustEEs—EXEcUTORS. c. CANCELLING, 725-738 mortgage, 587 apprenticeship, 819 CARGO, assignment of, 433 contribution, 636 CHAMPERTY, 145, 430 CHARGE, what debts included, 303 trust created by, 301 devise charged with or subject to charge of debts, 301 of debts, 301-310 of legacies, 304-305 a mode of giving effect to, 306-310 CHARITIES, : jurisdiction as to, page 141, n. favored in regard to the want of proper trustees, 273 defects in conveyances, 274 the objects, 275, 276 surplus income, 277 lapse of time, 278 Stat. 27 Eliz. c. 4, par. 193, et seg. INDEX. 501 CHARITIES—(continued.) abroad, 279 reward to informers as to, 280 altering a charity, 281 CHATTELS, delivery of, 791 CHILDREN. See Inrants. what children to be included, 210 construction of provisions for younger children, 216 removal of children from their parents, 799 waiver of provision for, 889 frauds on, 149, 150 COLONIAL, property or contracts, 54-8 COMMON, proceeding to establish a right of, 749 COMPENSATION, old rule as to, 668 Stat. 21 & 22 Vict. v. 27, s. 1, as to damages, 668 to a defendant, 669 relief against penalties and forfeitures, 670-4 no relief against liquidated damages, 675 for a breach of covenant or condition, 676 relief against statutory penalties or forfeitures, 677 COMPROMISE, 88 CONCEALMENT, 116-121, 176-186 CONDITION. See Contract. illegal, 138, 286 relief against breach of, 670, 676 CONFIRMATION, distinction between void and voidable transactions, as regards confirmation, 146, 147 CONSENT, refusal of consent to a marriage, 126 CONSIDERATION. See Fravp. inadequate, 122-5 excessive, 172-4 conveyance without consideration, 183, 184, 193-200, 287~29( agreement not generally enforced in the absence of a valuable consideration, 245, 421 CONSIGNMENT, revocableness of, 253 502 INDEX. CONTINGENT INTERESTS, assignment of, 433 CONTINGENT REMAINDERS, trustees to support, 388 CONTRACT. See Fraup—Sreciric PERFORMANCE. CONTRIBUTION. See INcUMBRANCES. towards incumbrances, 625-631 towards charges of renewal of leaseholds, 632 between sureties, 633-5 towards a loss or expense in a voyage, 636 CONVERSION, change in the character of property by agreement or direction to convert, 41-7, 409, 410 . undisposed of produce of real estate, 295, 296 undisposed of part of mixed fund, 297 undisposed of part of money directed to be converted, or of the produce thereof, 298 failure of objects for, 299 of terminable or reversionary property, 359 time allowed for, 360 of infant’s property, 800 CONVEYANCE, with notice of another’s title, 187-191 without consideration, and without use or trust, 287-290 in another’s name, 311-314 right to call for, 48 COPIES, of deeds, 736 COPYRIGHT, injunctions to restrain infringements of, 772-775 COSTS, mortgage for, 566 mortgagee’s costs of suit, 521 COUNSEL, purchase by, 162 COUNTER-CLAIM, 117, 659-663. See Srt-orr. COVENANT, where distributive share is a satisfaction of an obligation by, 5 must be fulfilled, notwithstanding accident, 67 to purchase lands, 316 to leave property, 181 a INDEX. 503 COVENANT—(continued.) to settle lands, 317 to convey, transfer, or pay money or other property, 325, 326 to aoe charge, dispose of, or affect after-acquired property, where relief is granted as to a breach of, 670, 676 CREDITORS. See Drzrtor. favored, 302 purchases by, 162 frauds on, 185, 186 frauds by, 164, 181 assignments for benefit of, 247-252 preferences of, 185, 186, 248 payment of legatees or distributees before, 324 where they cannot follow the assets, 382-4 proceedings of, 468 rights of joint creditors of a partnership, 648 priority as between joint and separate creditors of partner- ship, 649 may proceed against a deceased partner's or joint debtor’s estate in the first instance, 650, 651 election in the case of, 694 legacies to, 712 by, 713 right to benefit of securities, 654-8 rights as against general appointee, 203 CRIMINAL PROCEEDINGS, suppression of, 144 CY PRES DOCTRINE, 276 D. DAMAGES, 668-678. See CoMPENSATION. DEBTOR. See CREDITORS. 3 ; frauds in the case of persons standing in the confidential re- lation of debtor, creditor, and surety, 164 legacies by, 712 legacies to, 713 ’ direction to debtor to hold for a third person, 230 — proceedings against estate of deceased joint debtor in the first instance, 650, 651 DEBTS. See Srt-orF. not attached in equity, 32 what included in a charge, or trust, or power, for payment of debts, 303 504 INDEX. DEBTS—(continued.) devise in trust to pay, 301 devise charged with or subject to, 301 indirect charge of, 302 collateral securities for a debt assigned, 318 due from executor, 340 assignment of, 436 : payments to assignee of a debt, 437 payment of mortgage debt, 479-482, 489-491, 569-572 by breach of trust, 370-4 operation of Statute of Limitations as regards, 474 executor personally liable for, 382, 383 abatement of, 471 order of administration of different properties in payment of, 475-488 marshalling of securities, 652, 653 DECLARATION, of trust, 228-230, 238 DEEDS. See Mistaxr. destroyed, lost, or suppressed, 71-4 production of, by mortgagee, 526 cancelling, delivering up, and securing, 725-738 inspection and copies of, 736 DELIVERING UP, of documents, 725-738 of chattels, 791 DEPOSIT, of documents, 790 mortgage by, 592-601 DEVISEES. See Wit. under a will defectively executed, 69 DIRECTORS, remuneration, 345 DISABILITY. See Inranrs—Lunatics—MARRIED WomeEN. to contract, 419 election by persons under, 696 DISCOVERY, 905 DISTRIBUTIVE SHARE, where a satisfaction of a covenant, 52 DOCTOR, fraud of a, 159 INDEX. 505 DOCUMENTS, cancelling, delivering up, and securing, 725-738 inspection and copies of, 736 deposit of, 790 DOMICILE, how far the law of domicile governs, 56, 57, 501-4 DONATIONES MORTIS CAUSA, 219-223 DOWER, right to, 238 assignment of, 724 DURESS, frauds on persons under, 131 E. ELECTION, defined, 679 at law, 680 in equity, 681-7 as to one benefit given by will, 688 need not be made in ignorance of circumstances, 690, 691 presumed, 692, 693 in the case of creditors, 694 by a person under disability, 696 in the case of a settlement, 689 in the case of a gift under a mistake, 695 by persons having separate rights as next of kin of a person who died without electing, 697 EQUITY, follows the law, 26-32 only assists the vigilant, 33 equal equity, 34, 68 equality is, 35 he who seeks equity must do equity, 38-40 regards as done what ought to have been done, 41-9 to asettlement. See MarRiep WoMEN. EQUITY JURISDICTION; where equity had exclusive jurisdiction, 7 where equity had concurrent jurisdiction, 8-14 on account of the inadequacy of the legal relief, 8 or to avoid circuity of action, or multiplicity of suits, 9 or to take due care of the rights of all, 10 or on account of the necessity for a discovery, 12 or on account of the original denial of due relief at law, 13 43 506 INDEX. EQUITY JURISDICTION—(continued). ] or the doubtfulness of obtaining such relief, 14 where equity had auxiliary jurisdiction, 15 where it had no jurisdiction, 16-18 EQUITY JURISPRUDENCE. See Narurat JUSTICE. definition of, 2 true character of, 3-6 division of, 60 remedial equity, 61-205 executive equity, 206-453 adjustive equity, 454-724 . protective equity, irrespective of disability, 725-791 protective equity, in favor of persons under disability, 792-904 EQUITY OF REDEMPTION, 513, 551-7, 605 EXECUTOR. See Trusrers—Hxrrr—NeExt oF KiIn—SvURPLUS. may not derive a benefit, 161, 163, 365 remuneration, 345 ‘ fraudulent dealing with executors or administrators, 192 sales or pledges by, 192, 382 distinction between trustees and executors in regard to the effect of joining in receipts, 367, 368 liability, power, and duty of, 382-7 notice to, of possible contingent liability, 393 indebted to testator’s estate, not entitled in right of wife, 888 trust of debt due from, 340, 355-7 right of executor to residue, 294 time allowed for breaking up testator’s establishment, 402 EXONERATION, of personal estate from debts, 476-488 of specific legacy, 499 EXPECTANTS, dealings with, 165-173, 433 EXTINGUISHMENT, of mortgage, 587-9 F. FALSIFY, liberty to surcharge and falsify, 458, 459 FAMILY, meaning of, 233 FAMILY ARRANGEMENT, 88, 125 INDEX. 507 FINE, ; proceéding to settle fine payable by copyholders, 749 FORECLOSURE, 537-9, 548, 551. See Equrry or RepEMP- TION. mortgagee’s cost of suit, 521 FOREIGN, property or contracts, 54-8 ignorance of foreign law, 85 assets, 501-4 judgments i in foreign courts, 54° suit, injunction against, 7 78 FORFEITURE, 670-8 FORGED INSTRUMENTS, 734 FRAUD IN GENERAL, unsafe to define fraud in general, or the extent of remedial equity on the ground of fraud, 103 no relief to participator in, 36, 37 contract induced by fraud, not void, 113 where it may be enforced, 113-115 transfer of a right to complain of a fraud, 431 FRAUD, ACTUAL, where no relief, 105, 108 definition thereof, 104 jurisdiction in cases of, 105, 106 evidence thereof, 107, 108 division of, 110, 111 first class of actual fraud, 112 1. Misrepresentation, 112-115 2. Concealment, 116-121 3. Inadequacy, 122-5 4, Refusal of consent to a marriage, 126 second class of actual frauds, 127 1. On persons of unsound mind, 128 2. On intoxicated persons, 129 8. On persons of weak understanding, 130 4. On persons who are not free agents, but under duress, or in fear, or in prison, or in extreme necessity, 131 5. On infants, 132, 1324 case when one of two innocent persons must suffer by the fraud of another, 133 FRAUD, CONSTRUCTIVE, definition of, 134 four classes of constructive frauds, 135-205 frauds on public policy, 508 INDEX. FRAUD, CONSTRUCTIVE—(continued.) 1. Marriage brokage contracts, 136 2. Agreements to influence testators, 137 38. Contracts to facilitate marriages, 138 4, Contracts or conditions in restraint of marriage, or in- consistent with the duty of married life, 139, 140 . Contracts or conditions in restraint of trade, 141 . Fraud in relation to a bill in Parliament, 142 . Contracts for public offices, 143 . Suppression of criminal proceedings, 144 . Champerty and corrupt considerations, 145 frauds in the case of persons in confidential relations, 148 . Parent, or person in loco parentis, 149, 150 . Guardian, 151, 152 . Quasi guardian, adviser, or minister of religion, 153 . Solicitor, 154-8 . Doctor, 159 . Agent, 160 . Trustee, 161 . Counsel, agents, trustees, and solicitors of bankrupts or insolvents, auctioneers, and creditors, 162 . Executor or administrator, 163 10. Debtor, creditor, and surety, 164 frauds in the case of persons peculiarly liable to be imposed on, 165 1. Bargains with expectant heirs, remaindermen, and 2 reversioners, 166-171 2. Post-obit bonds, etc., by expectants, 172 8. Sales to expectants at exorbitant prices, 173 4, Bargains with common sailors, 174 5. Disposition by a person soon after attaining his ma- jority, 175 virtual frauds on individuals, irrespective of any confidential relation, or any peculiar liability to imposition, 176 1. Misleading, 177 . Frauds on auctions, 178 - Unconscientious use of the Statute of Frauds, 179 . Clandestine marriage contracts, 180 : . Frauds on marriages, 181 . Frauds on marital rights or expectations, 182 . Frauds under the stat. 13 Eliz. c. 5, 183, 184 . Frauds on creditors, parties to a composition deed, 185 . Mortgage, conveyance, or settlement, with notice of another’s title, 187-191 i Haydulsak dealing with executors or administrators, . Frauds under the stat. 27 Eliz. ‘ce. 4, 193-9 OID AH CONT SD OUP CO be oO OmOIH ob wb 1 —_- & “INDEX. 50 FRAUD CONSTRUCTIVE—(continued). 12. Frauds in the case of voluntary gifts, as against th donors themselves, 200 . 13. Fraudulent appointments, 201-3 14, Extinguishing consideration for a contract, 204 15. Rescinding contract, in order to benefit by flaw i title, 205 FRAUDS, STATUTE OF, 179, 228, 444, et seg. FREIGHT, assignment of, 433, 436 contributions, 636 G. GAMING SECURITIES, 730 GENERAL AVERAGE, 636 GUARDIANS. See Inranrs. fraud of, 151, 152 H. HEIR, promising to convey to younger brother, 31 right to surplus interest in a term or other particular interes! 292, 293 ig right to undisposed of produce of real estate, 295, 296 right to undisposed of part of mixed fund, 297 bargains with expectant, 166-8 post-obit bonds by, 172 sales to expectant heirs at exorbitant prices, 173 HEIRLOOMES, equity has no jurisdiction to sell heirlooms in strict settle ment, except for payment of debts. Fane v. Fane, L. R 2 Ch. D. 711; D’ Eyncourt v. Gregory, L. R. 3 Ch. D. 63: HUSBAND. See Marriep WomEN. fraud on, 182 I. IMPROVEMENTS, trust in respect of, 323 INADEQUACY, 122-5 INCUMBRANCES. See Morreaces. apportionment of, 625-631 voluntary discharge of, 626 compulsory discharge of, 627 keeping down interest on, 628-631 510 INDEX. INFANTS, jurisdiction as to, 792, 793 2 : appointment, removal, control, and assistance of guardians, 794-8 religion, 796 removal from their parents, 799 conversion of their property, 800 maintenance, 803-9 foreign property of, 810 wards of gcourt, who are, 801 acts affecting them, 802 marriage of, 811-813 settlement on wards of court, 814-816 settlement on infants who are not wards of court, 817 eare of, 818 frauds on, 132, 132a, 149-152 fraudulent appointments to, 202 statute as to, 132a agreements by, 419 charge by, 536 election by, 696 INFORMATION, duty of trustee tg give, 401 INJUNCTIONS, I. II. To restrain proceedings at law, page 388, note common, page 388, note special, page 388, note perpetual and total, or otherwise, page 389, note at any stage of the action, page 389, note after judgment, page 389, note when granted, page 389, note not granted except against civil proceedings, page 390, note to whom addressed, page 391, note In other cases : jurisdiction, 756 different kinds, 759, 760 equity will not limit power of granting, 762 general rule as to cases where they will be granted, 761, 762 against waste, 761, 763-9 against nuisances, 770 against infringements of patents and copyrights, and publica- tion of letters, 771-6» prneee ge against application to Parliament, 777 against a foreign suit, 778 to do some act, 779 INDEX. 511 INSOLVENT, trustees and solicitors of, becoming purchasers, 162 INSPECTION, of deeds, 736 INTEREST, conversion into principal, 517 increase of, 518 rent instead of, 565 keeping down, 628-631 INTERPLEADER, at common law, 739 defined, 740 by a tenant, 741 by an agent, 743 by a sheriff, 744 connection between the titles of the two claimants, 742 ability to admit title of either claimant, 744 actual proceedings not necessary, 745 preliminaries, 746 INTOXICATED PERSONS, frauds on, 129 INVESTMENT, 350-7, 359 non-investment, 358 on mortgage, 361 J. JOINT PURCHASE OR MORTGAGE, doctrine of equity in regard to, 35 implied trust on, 315 JOINT TENANCY, limitations which would create, 315 equity leans against, 35, 315 JUDGMENT, against trustee, 378 JUDICATURE ACTS, 20. See Srarurss. JURISDICTION. See Equity. ae interposition of equity in regard to property out of the juris- diction, 54-8 L. LACHES, consequences of, 33, 461 612 INDEX. LEASE, renewal of, by a trustee, partner, mortgagee, etc., 333-5 person having a limited interest, 334, 335 by a mortgagee, 514 to a mortgagee, 519 LEASEHOLD, mortgage of, 564 charges of renewal of, 632 leaseholds not within 17 & 18 V. c. 113, 483 LEGACIES, jurisdiction as to, 206, 207 charge of, 304-305a payable at a future day, 208 specific legacy to one for life, remainder to another, 209 for a purpose which cannot be accomplished, 211 construction of, 217, 218 abatement of, 471 out of what payable, 476-8 ademption of, 705-718 to creditors, 712 to debtors, 713 LEGATEES, under a will defectively executed, 69 LETTERS, injunction to restrain the publication of, 776 LIEN, in general, 613 of a consignee, 614 of a vendor, 327-332 of a solicitor, 616, 617 of a joint tenant, 618 of a trustee, 619 of annuitants, 620 of a legatee, 621 how enforced, 615 LIMITATIONS, STATUTE OF, how far equity followed the law as to, 31 operation of, as regards debts, 431 as regards trusts, 278 LITIGATION, protection from, 725-738 assignments of mere naked rights to litigate, 431 LOST, deeds, ete., 71-6 INDEX. 513 LUNATICS AND OTHER PERSONS OF UNSOUND MIND, frauds on, 128 M. MAINTENANCE AND CHAMPERTY, 430 MAINTENANCE OF CHILDREN, 803-9 MANAGER, 520, 522, 523, 643 MARRIAGE, refusal of consent to a, 126 brokage contracts, 136 contracts to facilitate, 138 contracts or conditions in restraint of, 139 clandestine marriage contracts, 180 frauds on, 181 : frauds on marital rights, and expectations, 182 articles, execution of, 246 on the faith of a promise, 448, 450 MARRIAGE SETTLEMENT. See Accipentr—Fraup—In- FANTS—MARRIED WoMEN—MISTAKE, ETC. MARRIED WOMEN, mortgage by, 320, 574, 575 agreements by them not enforced, 419 election by, 696 common-law doctrine as to, 820 powers which husband and wife have, in equity, of contract- ing with, and giving and granting to, each other, 822-5 contracts before marriage, 822 contracts after marriage, 823 gifts and grants after marriage, 824, 825 pinmoney, 826, 827 paraphernalia, 828, 829 separate estate, 830-868 means of acquiring it, . by gift, grant, devise, or settlement, 830 by separate earnings, 831, 834 by agreement after marriage, 831 by order of protection or judicial separation, 832, 833 under the stat. 33 & 34 Vict. c. 93, 834-845 separate earnings, 834 deposits in savings’ banks, 835, 839 funded property, 836, 839 property in a joint stock company, 837, 839 shares or benefits in a society’s funds, 838 personalty accruing during marriage, 840 realty, 841 - 514 INDEX. MARRIED WOMEN —(eontinued.) separate estate, means of acquiring it. benefits under an insurance, 843, 844 : how questions as to ownership of property to be settled 842 married women may maintain an action, 845 wife’s power _of disposing of, 846-850 restrictions against alienation or anticipation, 851-3 gifts to the husband by the wife, 854 husband’s receipt of the income, 855 liability of, 856-8 power of trustees of the wife’s personalty not settled to her separate use, 869 wife’s equity to a settlement out of her own property, 869-891 when defendant against her husband, 871-5 against his trustees or vendees, 876-881 when plaintiff, 882 no equity out of past income, 880 life interest in wife’s personalty, 879 amount to be settled, 883 substitute for a settlement where fund is small, 884 waived, lost or suspended, 885-9 where parties are domiciled in Scotland, 890 wife’s right of survivorship, in regard to reversionary inter- ests, 881 wife’s equity to a maintenance, in case of husband’s miscon- duct, bankruptcy, or insolvency, 891 indebtedness of wife before her marriage, 859-866, 875 deeds of separation, 892-8 non-disclosure of antenuptial incontinence, 899 benefits under settlement not forfeited by adultery, 900 purchases of, 901 frauds of, 902, 903 money advanced for support of deserted wife, 904 MARSHALLING, 829 of assets, 493 in favor of mortgagees, and other creditors, or of legatees, or of a portionist, or of the heir, or of a devisee, 494 as between freehold and copyhold, 495 as between legacies charged on land and others not so charged, 496 in the case of. charitable legacies, 496, 497 ae Pe iseen simple contract debts and a vendor’s lien, _in favor of widow’s paraphernalia, 500 of securities, 652, 653 INDEX. 515 MAXIMS, GENERAL, 21-59 no right without a remedy, 22 where equity will give a remedy, 23-5 equity follows the law, 26-32 necessity for vigilance, 33 where equal equity, law prevails, 34 equality is equity, 85 plaintiff must have clean hands, 36, 37 plaintiff must do equity, 38-40 equity regards as done what ought to be done, 41-9 priority, 50 equity imputes intention to fulfil obligation, 51 loss must be borne by person occasioning it, 53 rules as to foreign and colonial property or contracts, 54-8 interference of courts of law with decisions of courts of equity, MESNE PROFITS, 665 MIND. See Lunatics. frauds on persons of weak understanding, 130 MINISTER OF RELIGION, constructive fraud by, 153 MISDESCRIPTION, slight, 412 substantial, 415 MISLEADING, 177 MISREPRESENTATION, 87, 112-115 MISTAKE. defined, 80 by the sufferer alone, 81-4 mutual, 87 in or in regard to a written instrument, 89-102 ignorance of foreign law, 85 of vendor as to value, 86 MORTGAGE, I. Mortgages of real property, 505-591 what may be mortgaged, 505 what amounts to, 506-512 mortgagee’s estate, 513 mortgagee’s possession, leases, receiving of rent, 514, 515 limit to mortgagee’s advantage, 516 conversion of interest into principal, 517 increase of interest, 518 lease to mortgagee, 519 ; what mortgagee.may add to his. debt, 520, 521 516 INDEX. MORTGAGE—(continued). allowance for receiver, 522 of West India estate, 523 of advowson, 524 pre-emption, 525 production of deeds by mortgagee, 526 “right of mortgagee to devise property, 527 mortgagee, ejecting or refusing tenant, 528 — mortgagee’s right to cut timber and open mines, 514 priority, 529-534 tacking, 529-534 with notice of another’s title, 187-191 postponement of prior mortgagee, 535, 536 : protection of subsequent mortgagees against prior voluntary conveyances, 193-9 mortgagee’s remedies, 537 foreclosure, 537-9 sale, 540-7 concurrent remedies, 548-550 mortgagor’s estate and rights, 551 equity of redemption, 551-7 who may redeem, 555-7 annual rests, 558 possession by mortgagor, 559, 560 rents received by mortgagor, 559 waste by him, 559 expenditure by mortgagee, 561 of leasehold, 562-4 rent instead of interest, 565 for costs, 566 _ conveyance in trust to sell, 567 joint, 315 defective, 568 payment of debt, 569-572 to be postponed till a certain time, 571 out of what, 479-482 contribution towards, 625-7 Welsh mortgage, 573 of wife’s estate, 320, 574, 575 first mortgagee answerable to second, 576 disputing mortgagor’s title, 577 assignment of, 578-582 what a purchaser of a mortgage can claim, 583 gift of mortgage security, 584 devise by a mortgagee, 585 right of purchaser of equity of redemption, 586 right of second equitable mortgagee, 586 extinguishment of debt by cancelling, 587 INDEX. 517 MORTGAGE—(continued.) by payment or by merger, 588, 589 reconveyance, 590 death of mortgagor intestate, and without heirs, 591 II. Equitable mortgages of real property, 592-601 III. Mortgages and eae of personal property, 602-612 a mortgage and a pledge distinguished, 602 tacking, 603-604 purchase by a second mortgagee under a power of sale from the first, 545 mortgagor’s right to redeem and mortgagee’s right to sell, 605 mortgage of shares, 606 of a ship, 607-9 pledgor’s right of redemption, 610 pledgee’s rights, 611, 612 N. NATURAL JUSTICE. See Equity. equity is not synonymous with, 3-5 large portion of it is left to conscience, 6 another large portion was administered in courts of law, 6 equity is only a portion of natural justice in a modified form, 6 NE EXEAT REGNO, 780-4 NEXT OF KIN, right of, 293-8 claims of, 384 NOTES, LOST, 76 NOTICE, two kinds of, 189 what is, 190 : conveyance, mortgage, or settlement, with notice of another’s title, 187-191 to executor of possible contingent liability, 393 notice of assignment, 436, 437 notice of incumbrance, 535 NUISANCES, ° injunctions to restrain, 770 oO. OBLIGATION, fulfilment of, 51 518 INDEX. OFFICERS, assignment by officers of government, 429 notice, 436 OFFICES, contracts for, 143 P. PARAPHERNALIA, 828, 829 marshalling in favor of, 500, 829 PARENT, cr ; frauds of, or on a parent or person standing in loco parentis, 149, 150 removal of children from, 799 PAROL CONTRACTS, where enforced, 444-8 PAROL PROMISE, where enforced, 450 . PAROL VARIATIONS OR ADDITIONS, 449 PARTITION, suit for a partition of property out of jurisdiction, 54 mode of partition, 715 title shown, 716 . by or against tenants who have limited interests, 717 equitable adjustments, 719 of partnership leaseholds, 644 PARTNERSHIP, jurisdiction, 637 : specific performance of agreement to enter into, 638 carrying into effect the articles of, 638 dissolution of, 640, 641 : application of articles after cesser of term, 639 injury prevented, 642 account, manager, and receiver, 643 partition, 644 : using stock after dissolution, 645 interest after dissolution, 646 property held for partnership purposes, 315, 647 rights of joint velar, 648 priority as between joint and separate creditors, 649 creditors may proceed against a deceased partner’s estate in the first instance, 650 PATENTS, injunctions to restrain infrigements of, 771 INDEX. 519 PAYMENT, into Court or to the party, 789 PAYMENTS, appropriation of, 464 PEACE, bills of, 747-751 PENALTIES, payment of, 453, 670-8 PINMONEY, 826, 827 PLEDGES, distinguished from mortgages of personal property, 602. pledgor’s right of redemption, 610 pledgee’s rights, 611, 612 POLICY, PUBLIC, frauds on, 135-147 assignments, contracts, and covenants against, 428, et seq. PORTIONS, what is a portion, 212 where not to be raised, 213, 214 time for raising, 215 interest, 215 a. satisfaction of, 704-711 POSSIBILITIES, assignment of, 432, 433 POST-OBIT BONDS, 172 POWERS, relief in cases of the defective execution or non-execution of, 31, 77-9, 99 effectuating the general intention of the donor of a power, 283, 284 : PREFERENCE, of a particular creditor, 185, 186 PRETENDED TITLES, 430 PRIMOGENITURE, equity follows the law as to, 31 PRIORITY, 529-536 PROMISE. See Spectric PERFORMANCE. 520 INDEX. PURCHASE, with notice of another’s title, 187-191 in another’s name, 311-314 joint, 315 covenant or trust to purchase lands, 316 of a mortgage, 583 of a lien or mortgage by a trustee, 333 of an estate by a trustee or agent, 333, 365 money to be paid out of personal estate, 411 with right of repurchase, 506-512 of an equity of redemption, 586 from an executor or administrator, 192 PURCHASER, for valuable consideration, rights of, 34, 68, 89, 344, 376-381 protection of subsequent, 193 purchaser’s heir may require the money to be paid out of the personal estate, 411 his obligation to see to the application of the purchase- money, 257-266 Q. QUIA TIMET, 725 R. RECEIPTS, distinction between trustee and executors as regards joining in, 367, 368 RECEIVER, gift to, 365 appointment of, 643, 761, 785, 786 office, possession, and power, 787, 788 allowance to mortgagee for, 522 RECONVEYANCE, 590 RECTIFYING. See Misraxe. REDEMPTION. See Morteace. “RELATIONS,” meaning of, 233 RELEASE, i rectifying, 97 of sureties, 654-8 REMAINDERMEN, bargains with, 165-171 INDEX. 521 REMITTANCE, revocableness of, 253 RENEWAL, 2 of lease, by a person having a limited interest, 334, 335 RENT, obligation to pay, notwithstanding accident, 67 RENTS, where a suit will be entertained for the recovery of, 25 REPAIRS, covenant to do, 67 trust in respect of, 323 REPURCHASE, purchase, with right of, 506-512 RESIDUE, undisposed of, 291-300 RESTS, 365, 558 REVERSIONERS, bargains with, 165-171 cannot maintain suit for partition, 718 REVOCATION, want of power of, 200 SAILORS, frauds on, 174 SALE, omission to sell, 349 by a mortgagee, 540-550, 605 conveyance in trust to sell, 567 frauds on auctions, 178 SATISFACTION, defined, 698 where arising, 699-702 rebutted, 703 of portions secured by settlement, 704-7 of portions left by will, 708, 709 none in the case of strangers, 710, 711 of legacies to creditors, 712 of legacies to debtors, 7138 of annuity, 714 of covenant to settle lands, 714 of covenant to bequeath, 714 ‘order of, 489-492 iz 522 INDEX. SECURING, of documents, 737 SECURITY, in another’s name, 311-314 lost unsealed securities, 76 marshalling of securities, 652, 653 . bs mutual right to the benefit of, between creditor and sureties, 654-8 delivery up of, 738 SEPARATION, deed of, 892-8 SEPARATE USE. See MarrieD WoMEN. SET-OFF, connected accounts, 660 independent debts or demands, 661 where one debt is joint and the other separate, 662 demands in different rights, 663 SETTLEMENT. See Marriep WomMEN—MARRIAGE SETTLE- MENT— INFANTS. rectifying, 89-96 with notice of another’s title, 187 setting aside, 732, 733 voluntary. See CoNsIDERATION. SHERIFF, interpleader by, 744 SOLICITOR, actual fraud of a, 112 constructive fraud of a, 154, 157 misappropriation of mortgage debt paid to, 572 purchase by, 162 acting for both parties, 190, 616 lien for costs, 616, 617 gifts or gratuity to a, 155-7 charges by a trustee who is a, 345 SPECIFIC PERFORMANCE, remedy at law, 403, 406. decree in equity where damages would not afford compensa- tion, 404, 405 between persons claiming under the parties, 411 where terms are not complied with in non-essential particu- lars, or where there is a slight misdescription, 412 where there is a want of title, or a substantial misdescription, or want of reasonable compliance with terms of agreement, 415, 416 ‘ INDEX. §23 SPECIFIC PERFORMANCE—(continued.) where there is an accidental incapacity of performing the re- mainder of an agreement, 417 sub modo, 418 where the parties were incompetent to contract, 419 where the terms are not certain and definite, 420 “where there is no valuable consideration, 421-3 where it would be morally wrong or inequitable, 424-7 of assignments, contracts, or covenants against public policy, 428, et seq. assignments by officers of the government, 429 assignments involving champerty, maintenance, or buying of pretended titles, 430 ; assignments of mere naked rights to ligitate, 431 assignments of possibilities, or things in action, 432-9 connected with arbitration, 440-3 parol contracts, 444-8 variations or additions, 449 promises, 450 agreements to borrow, 451 negative agreements, 452 not avoidable by payment of penalty, 453 of agreement to enter into a partnership, 638 STATUTES, 27 Henry VIII, c. 10 (Uses), 231 32 Henry VIII, c. 9 (Pretended Titles), 430 18 Elizabeth, c. 5 (Fraudulent Conveyances), 183 27 Elizabeth, c. 4 (Fraudulent Conveyances), 193, 254 21 Jac. I, c. 16 (Limitations), 461, 462 29 Car. II, c. 3 (Frauds), 179, 228, 444-9 9 Geo. IT, c. 36 (Mortmain), 496 1 Wm. IV, c. 40 (Residue), 294 c. 60 (Trustees), 401 cc. 60, 65 (Infants), 818 1 and 2 Wm. IV, ec. 58 (Interpleader), 739 3 and 4 Wm. IV, c. 27, ss. 24, 28 (Statute of Limitations), 278, 539, 551 , 3 and 4 Wm. IV, c. 104 (Debts), 22, 494 c. 105, s. 2 (Dower), 552 7 Wm. IV, and 1 Vict. c. 26 (Devise to Heir), 683 c. 28 (Statute of Limitations), 539 1 and 2 Vict. c. 110 (Judgments), 529, 531 7 and 8 Vict. c. 76 (Receipts), 266 c. 76, s. 9 (Reconveyance of Mortgaged Estate), 590 8 and 9 Vict. c. 106 (Contingent Interests), 432 c. 106, s. 1 (Reconveyance of Mortgaged Estate), 590 c. 112 (Terms), 241 524 INDEX. STATUTES—(continued.) : 9 and 10 Vict. c. 95, 8. 65 (Legacies), 207 10 and 11 Vict. c. 96 (Trusts), 401 12 and 13 Vict. c. 74 (Trusts), 401 13 and 14 Vict. c. 60 (Trusts), 401 c. 60 (Infants), 818 c. 60, ss. 19, 20 (Reconveyance of Mortgaged Estate), 590 60, s. 80 (Partition), 715 61, s. 1 (Legacies), 207 55 (Trusts), 401 55 (Infants), 818 76, ss. 219, 220 (Redemption), 513, 551 86, s. 48 (Sale of Mortgaged Estate), 540 187 (Charities), page 141, n. 17 and 18 Vict.c. 90 (Usury), 40 c. 104 (Shipping), 609 c. 118 (Mortgage Debts), 481-4 c. 125, ss. 79-82 (Injunctions), 757 18 and 19 Vict. c. 124 (Charities), page 141, n. 19 and 20 Vict. c. 99, s. 5 (Sureties), 655 cv. 120- (Infants), 818 20 and 21 Vict. vc. 57 (Reversionary Interests), 881 c. 77, s. 28 (Legacies—Residues), 207, 466 c. 85, ss. 21, 25 (Separate Use), 831, 832 21 and 22 Vict.c. 27 (Damages), 668 c. 27 (Trial of Questions of Fact), 755 c. 108, s. 8 (Separate Use), 832 22 and 28 Vict. c. 35 (Trusts), 401 . 85, ss. 4-6 (Forfeiture), 676 35, s. 12 (Appointments), 77 35, s. 13 (Sales under Powers), page 44, n. 35, s. 23 (Receipts), 266 35, 8. 29 (Notice for Creditors), 383, 384 35, s. 30 (Directions to Trustees, etc.), 385 35, s. 31 (Reimbursement), 345, 369 35, s: 31 (Indemnity), 369 35, s. 32 (Investments), 351 38, s. 1 (Judgments), 648 . 38, ss. 10-12 (Investments), 351, and n. . 88, s. 145 (Trusts), 401 126, s. 2 (Forfeiture), 676 134 (Charities), page 141 . . 186 (Charities), page 141 145 (Powers of Mortgagees), 518, 522 145 (Investments), 351 . 145, ss. 12, 29 (Receipts), 266 . 145, ss. 17-24 (Receiver), 785 15 and 16 Vict. PEGE a2 23 and 24 Vict. POE RE REE SSE HESOEOSES INDEX. 525 STATUTES— (continued.) 23 and 24 Vict. c, 145, s. 26 (Maintenance), 803 c. 145, ss. 27, 28 (Trustees), 396 c. 145, s. 30 (Powers of Executors), 382 25 and 26 Vict. c. 42 (Questions of Law and Fact), 755 c. 63, s. 3 (Mortgages of Ships), 609 28 and 29 Vict. c. 99, s. 1, 8 (Injunctions), 758 30 and 31 Vict. c. 48 (Auctions), page 482 ce. 69 (Mortgage Debts), 485 v. 132 (Investments), 351 c. 144 (Life Assurance), 432 31 Vict. c. 4 (Purchase of Reversions), 170, 171 31 and 82 Vict.c. 40 (Partition), page 478 c. 86 (Marine Insurance), 432 32 and 33 Vict. c. 110 (Charities), page 141, n. 33 and 34 Vict. c. 28 (Solicitors), 157 c. 93 (Married Women), 820, 823, 834-845, 859, 860, 867, 868 34 Vict. c. 27 (Investments), 351 36 Vict. c. 12, s. 1 (Custody of Infant), 797 36 and 37 Vict. c. 66 (Judicature), par. 20, and page 486 v. 66, s. 24 (7) (Concurrent Jurisdiction), 20 c. 66, s. 25 (Changes in certain points of Jur- isprudence), par. 20, and page 490 et seq. 66, s. 25 (2) (Statutes of Limitation), 268 66, s. 25 (3) (Waste), 3194 66, s. 25 (4) (Merger), page 491 . 66, s. 25 (5) (Suits for possession by Mortga- gors), page 491 : c. 66, s. 25 (6) (Assignment of Debts and Choses in Action), page 492 . 66, s. 25 (7) (Stipulation not of the Essence of Contracts), page 493 66,8. 25 (8) (Injunctions and Receivers), page 493 . 66, s. 25 (9) (Collisions at Sea), page 494 66, s. 25 (10) (Custody and Education of Infants), page 494 v. 66, s. 25 (11) (Cases of Conflict not Enumer- : ated), par. 20, and page 494 87 and 88 Vict. c. 50 (Married Women), 860-6 ec. 62, s. 1 (Infants), 1324 c. 78, 8.4 (Reconveyance of Mortgaged Es- tate), 590 ; c. 78, s. 7 (Priority, Tacking), 532 38 and 39 Vict. c. 77, s. 10 (Administration), 472 c. 87 (Priority, Tacking), 532 eso9 ° 98 20 526 INDEX. STATUTES—(continued.) oh 39 and 40 Vict.c. 17 (Partition), page 472 . 40 and 41 Vict. c. 34 (Extension of Locke King’s Act), 486 STOCK, reduction of, 63 SUB-PURCHASE, 431 SURCHARGE AND FALSIFY, liberty to, 458, 459 SURETIES, contribution between, 633-5 rights of creditors and sureties, 164, 654-8 SURPLUS, right of heir or next of kin or executor to, 285-299 T. TACKING, 529-534, 603, 604 TENANT, interpleader by, 741 TERM OF YEARS, trusts of, 239-243 TESTATORS, agreement to influence, 137 TESTIMONY, bill to perpetuate, 908 bill to take testimony de bene esse, 912 TIMBER, trust as to, 319 TIME, where time is of the essence of. a contract, 413 stipulations as to, 414 TITHES AND MODUSES, 667 TITLE, muniments of, 394, 395 want of, 415, 416 buying a pretended, 430 TRADE, contracts or conditions in restraint of, 141 INDEX. 527 TRUSTS IN GENERAL, definition of, 224 division of, 226 extent of jurisdiction over, 225 TRUSTS, EXPRESS PRIVATE, defined, 227 mode of declaring, 228-230 by what words created, 231-3 how a devise or bequest may be verbally impressed with a trust, 234 intended trust, though void, excludes donee from taking bene- ficially, 235 executed and executory, 30, 236, 237 governed by the same rules as legal estates, 238 of terms for years, 239-243 created without cestui que trust's knowledge, 244 what will be enforced, 245 execution of marriage articles, 246 assignment for benefits of creditors, 247-252 revocableness of a consignment or remittance, 253 revocableness of a conveyance of equitable property, or a dec- laration of trust in favor of a volunteer, 254, 25 effect of a direction or power to raise money out of rents for debts, etc., or of a charge, 25% bar of, 267 performed as to the main intent, 269 where legal and equitable estates have no separate existence, 270 for an alien, 271 TRUSTS, EXPRESS CHARITABLE. See CHARITIEs. TRUSTS, IMPLIED, sometimes called constructive trusts, 321 defined, 282 in a power, 283, 284 where trusts fail or the property is unexhausted, 285 on an absolute gift, with an ineffectual or partial trust, or a void condition, 286 ; on a conveyance without a consideration, and without a use or trust, 287-290 on a limitation of a particular interest only, 291-3 of undisposed of residue of testator’s personalty, 294 of undisposed of produce of real estate, 295, 296 of undisposed of part of mixed fund, 297 : of undisposed. of part of money directed to be converted, or of the produce, 298 . : failure of objects for conversion, 299, 300 528 INDEX. TRUSTS, IMPLIED—(continued.) charges, 301-310 oie on conveyance, assignment, or security 1n another’s name, 311 on purchase or transfer of stock or delivery of money, 312 on limitations which would create a joint tenancy at law, 315 on covenant or trust to purchase lands, 316 on covenant to settle lands, 317 of collateral securities for a debt assigned, 318 of ornamental timber, 319, 319a of wife’s mortgaged property, 320 TRUSTS, RESULTING, 285-300, 311-314 TRUSTS, CONSTRUCTIVE, defined, 322 in respect of repairs or improvements, 323 in favor of creditors, 324 on a covenant or agreement to convey, transfer, or pay money or other property, 325, 326 vendor’s lien for unpaid purchase-money, 327-332 of lease, of which a renewalis obtained by a person having a limited interest, 334, 335 on a wrongful conversion or alienation of trust property, 336-8 of mortgaged estate, 339- of debt due from executor, 340 TRUSTEES, who may be, 341 acceptance of office of, 342 profits by, 161, 333, 365 gifts to, 161, 365 purchase by, 162, 333, 365 devolution or delegation of trust, 343 equity never wants a trustee, 344 no remuneration allowed, 345 expenses allowed, 345 what care and diligence they are bound to use, 346-8 omission to sell, 349 investment, 350-4 omission of one trustee or executor to see that the property is duly secured or applied, 355, 356 losses without want of customary care or diligence, 357 non-investment, 358 terminable or reversionary property, 359 time allowed for conversion, 360 investment on mortgage, 361 may not mix the trust money with their own, 362, 363 responsibility for each other’s acts and defaults, 366 INDEX. _ 829 TRUSTEES—( continued.) : distinction between trustees and executors in regard to the _ effect of joining in receipts, 367, 368 indemnity, 392a, 399 indemnity clause, 369 breach of trust by, 369-381 acquiescence in a breach of trust, 373 debt by breach of trust is a simple contract debt, 374 default by trustee who is a beneficiary, 375 power to bind the estate by a sale, transfer, mortgage, or specific lien, 376-380 judgment against, 378 to support contingent remainders, 388 aid and direction to, 385, 389 safety of, 390-3 possession of muniments of title, 395 removal of, 396 appointment of, 396, 397 where trustees took the fee, 398 conveyance of legal estate to cestut que trust, 399 settlement of accounts, 400 duty of keeping accounts and rendering information, 400, 401 in bankruptcy or insolvency, 876-8, 891 U. USURIOUS TRANSACTIONS, 40, 729 Vv. VENDOR, vendor’s lien, 327-332 nature of and reasons for, 327 where it originally exists, 328 continuance thereof, 329 against whom it exists, 330-2 misrepresentation gr concealment by, 112-121 VIGILANTIBUS, non dormientibus equitas subvenit, 33 VOID AND VOIDABLE CONTRACTS AND INSTRU- MENTS. See Fravup. distinction between, as regards confirmation, 146 cancelling, 725-738 45 530 INDEX. VOLUNTARY. See ConsIDERATION. VOLUNTEER. See CONSIDERATION. rights of, 49 when a collateral relation not a, 198 fraud of, 200 revocableness of a conveyance of equitable property, or a declaration of trust in favor of a volunteer, 254 when voluntary deed cancelled, or enforced, 731-3 W. WARDS. See Inrants. WASTE, injunctions to restrain, 319, 763-8 by a mortgagor, 559 by a mortgagee, 514 account in cases of, 666 equitable, 319, 319 a, 766-8 WEAK UNDERSTANDING, frauds on persons of, 180 WELSH MORTGAGE, 578 WEST INDIA ESTATE, mortgage of, 523 WIFE. See Marriep Women. WILL, defective execution of a will not remedied, 69 agreements to influence a testator, 137 proceedings to establish wills, 759-5 mistake or omission in, 100 fraud in regard to, 105° THE END.