84 Md. 451 | Md. | 1896
delivered the opinion of the Court-:
This is a clear case, although it has been somewhat complicated by a most ingenious and elaborate attempt to fasten a liability upon the appellee, when, as we think, agreeing fully in that respect with the learned Judge below, none whatever exists. Nearly thirty years ago Henry C. Wysham was appointed trustee to sell the real and personal property of Jacob Grafflin upon the terms -and conditions and for the
While the law very properly requires all persons dealing with trustees, in reference to the sale or purchase of trust property, to exercise reasonable care to ascertain if such trustee is acting within the limits of his power, yet it does not establish an arbitrary rule which is or may be impossible to obey. Each case involving a transaction like the one before us must be considered and determined in the light of the facts therein presented. In some cases it would be gross negligence for a purchaser to deal with a trustee without making the most careful investigation—especially when ample and easily accessible information is spread out upon the records of the Courts having jurisdiction of trustees. But when such information cannot be so had, the mere failure to make the attempt to obtain it, which, if made, would be of no avail, ought not, we think, subject the purchaser to punishment. This Court has not yet said that the word “trustee” alone in any and every case in which a trustee proves recreant to his duty by selling the trust property and appropriating the proceeds shall be suffi
In the case of Albert v. The Bank, supra, it was said that the mere designation of the parties as trustees without a specification of the trust or designation of the cestuis que trustent, could not possibly give the city officer any information, and had he made inquiry in regard to the object and purposes of the trust there was no one to whom he could with propriety apply, but to the trustees themselves, for the entry upon his own books gave him no clue whatever.” It is not to be assumed that the very person who is about to perpetrate a fraud upon the purchaser and to commit a breach of trust would, if interrogated, supply the information which would prove his perfidy. But whether the purchaser seeks information from the trustee and is deceived, or fails to do so, he should not be punished, in the absence of fraud on his part, if he could not by a reasonably careful investigation of the records or other proper sources discover the true state of the case.
We do not understand this Court to have reversed the ruling in Albert's case, supra, as applicable to the state of facts there disclosed, by any of the later decisions in respect to the fraudulent or illegal transfers by trustees. It is true that in Marbury v. Ehlen, 72 Md. 216, it was said that
Agreeing with the'learned Judge below, the decree appealed from will be affirmed.
Decree affirmed.