55 Md. 339 | Md. | 1881
delivered the opinion of the Court.
Under the instructions of the Court, given in the terms of the second prayer of the plaintiff, and the sixth prayer
The defendants contend that inasmuch as the completion of the buildings was contracted for under the sanction of the Circuit Court, as a Court of equity, therefore there could be no individual responsibility contemplated or incurred. But that was by no means the necessary consequence of the order of Court, authorizing the defendants as trustees to have the work done. The order of the Court was a complete indemnity to the trustees for having the work done, and a determination that the cost or expense of the work should be allowed the trustees out of the trust funds. But it did not bind the plaintiff to look exclusively to the trust funds for payment, whether sufficient or not, unless, by agreement, he should bind himself to look to that fund exclusively.
By the deed of trust from Boche to the defendants, the latter were invested with the entire estate of the former, for the benefit of creditors ; and the law is perfectly well settled, that the party holding the estate in trust, even with general powers of management, is bound personally by the contracts that he may make as trustee, though he designates himself as such; “ and nothing will discharge him but an express provision, showing clearly that both parties agreed to act upon the responsibility of the funds alone, or of some other responsibility, exclusive of that of the trustee ; or some other circumstance clearly indicating
This principle has long since been settled in the law, and was fully recognized and acted upon in the case of Horsley vs. Bell, Ambler, 770; more fully reported in a note to the case of Cullen vs. Queensberry, 1 Bro. C. C., 101, and the authority of which was fully sanctioned in the case of Eaton vs. Bell, 5 Barn. & Ald., 34. And in the recent case of New vs. Nicoll, 73 N. Y., 121, where a trustee, holding and managing an estate for the benefit of a married woman, and others after her death, was sued on a contract for repairs done to the buildings on the land, it was held and laid down as a settled principle, that when a trustee is authorized to make an expenditure, and he has no trust funds, and the expenditure is necessary for the protection, reparation, or safety of the trust estate, and he is not willing to make himself personally liable, he may, by express agreement, make the expenditure a charge upon the trust estate. Eor, as it is there said, he could himself advance the money to make the necessary reparation or improvement, and he would have a lien upon the trust estate therefor; and that being so, he could, by express contract, transfer such Hen to any other party who would agree, upon the faith of the trust estate, to make the necessary expenditure. But, in the absence of such express agreement, or circumstances plainly indicating an intention on the part of the party doing the work or making the expenditure, to exclude the personal liability of the trustee, and to rely exclusively upon the estate, or some other source, for payment, the trustee, at whose request the work was done or expenditure made, will he held personally liable. In such case, he must seek reimbursement from the trust estate.
In this case, it would hardly he rational to conclude that the plaintiff intended to do the work for the benefit
We perceive no error in the rulings of the Court, in granting the second prayer of the plaintiff, and refusing those on the part of' the defendants.
Judgment affirmed.