38 F. 567 | U.S. Circuit Court for the District of Eastern Missouri | 1889
The case presented by the bill is that of a vendee of land who has paid the purchase money, seeking to have the legal title divested out of the vendor and vested in himself. It has long been settled that the relation of vendor and vendee, under such circumstances, is that of trustee and cestui que trust. 2 Story, Eq. Jur. § 789. When the purchase money has been paid, the vendor becomes a mere trustee of the legal title for the purchaser. 1 Perry, Trusts, §§ 231, and 122. Trusts of that character undoubtedly answer to the definition ordinarily given of an implied trust, being trusts that are not expressly declared, but are inferred from a given contract or transaction. The terms “express,” “implied,” “resulting,” and “constructive,” as applied to trusts, have not always been used with technical accuracy. In some cases a trust has been termed an express trust that was in reality an implied trust, and instances are quite common where constructive trusts have been spoken of as implied trusts, and vice versa. In reality resulting and constructive trusts are species of implied trusts. These remarks are made because great stress was laid on the fact that the trust described by the bill is an implied trust, and important consequences are deduced from such classification. Because it is of the nature of an implied trust, it is contended that the relief sought by the bill was barred 10 years after the creation of the trust, in analogy with the rule that prevails at law in actions to recover real property. Now, the bill shows (and the case must be dis
Various eases have been cited by defendant’s counsel with a view of establishing that the cause of action is stale, but the court has not been able to concur in that view. The case of Speidel v. Henrici, 120 U. S. 377, 7 Sup. Ct. Rep. 610, is first referred to. In that case the court found that the trustee proceeded against had disaffirmed the trust 50 years before the bill was filed. The bill showed that for that period the trustee had constantly avowed that he held the trust property upon a trust entirely different from that which complainant sought to establish and enforce. In other words, the case was decided on the theory that the trust had been disavowed for such a length of time that the complainant, who had knowledge of such disavowal, was barred of his right by laches. In the case of Marsh v. Whitmore, 21 Wall. 182, an effort was made to establish a constructive trust in personalty nearly 12 years after the transaction out of which it arose. The bill did not state exactly when or how complainant became aware of the transaction out of which the trust arose, and it was accordingly held to be demurrable. The rule is -well settled, of course, that a person who seeks to enforce a constructive trust, or obtain equitable relief on the ground of fraud, must act diligently on discovering the fraud, or the transaction out of which the trust arises, as the trustee in such a trust always holds adversely to the beneficiary, and the right to pursue him may be easily lost by laches. The case of Brown v. Buena Vista, 95 U. S. 157, was a bill filed to set aside a judgment on the ground of fraud, and the proceeding was held to be barred by laches. The case is not important, except in so far as it shows that in such cases a complainant must act with commendable promptness after discovering the fraud. In the case of Hume v. Beale,