35 Fla. 28 | Fla. | 1895
The bill of complaint in this case alleged that the complainant, Sophia G. Saunders, was the wife of the defendant, William McQueen Saunders; that the other complainants, except Joseph S. Wynns, who
The prayer of the bill is, that the court protect and enforce the rights and trusts declared by said original trust deed, and compel the defendant, John C. Richard, to account for said trust estate so committed to-him, including any rents, issues and profits he may have received from the same, to be accounted for to-said Sophia Gr. Saunders ; that the persons alleged to be purchasers from said Richard be declared trustees holding the legal title severally of the respective lots purchased by them in trust for the complainants. The-bill also contained a prayer to the effect that if the proper relief had not been prayed, that the court would grant such relief as the complainants might be entitled under the facts of the case.
The defendants first interposed a demurrer to the bill of complaint. This demurrer was overruled. Afterwards all of the defendants except William McQueen Saunders (who appears to have made no fur
The answer of the defendant, Kleinschmidt, set up in substance that he was a purchaser for value under-a deed warranting the title ; that he went into possession under such deed and made valuable improvements ; that he had no knowledge or notice whatever of the trust set up in the bill at the time he purchased the land. The other defendants, Simmons, Thaxton and Heinberger, all answered to similar effect. Each of these answers had attached to it the deed of John C. Richard to the respective defendants. These deeds, all contained full covenants warranting the title to the property. Voluminous testimony was taken. Such portions as are essential to a consideration of the case-will be briefly, stated in a condensed form in the further course of this opinion, in connection with the consideration of the subject-matter upon which such testimony was offered. Upon hearing, the court dismissed the case at complainants’ cost, from which decree the complainants appealed.
The first error alleged in the petition of appeal is. upon the ruling of the court granting leave to defendants to file amended answers. These amendments, were made after due notice. Cause for such amendment was shown by affidavit to the effect that some of the statements of the former answer were untrue and. made by mistake. The objection made to this amend,
An analysis of the answers of the defendants shows four matters of defense set up for the defendant, Richard. These matters of defense are. first, that the trust deed was void because based upon an illegal consideration, i. e., an agreement for a collusive divorce ; second, that the same was defectively executed, in not being under seal; third, that it was surrendered to the grantor, and destroyed at the instance •and request of Sophia G. Saunders, one of the oestuis •que tmost, and a deed to the property made to the defendánt, Richard, with her knowledge, acquiescence and consent; fourth, a settlement between the trustee and oestuis que trust, whereby Sophia G. Saunders, in her own right and as natural gaurdian of her co-complainants, Sallie Saunders (now Mrs. Wynns) and McQueen Saunders, made a quit-claim deed, together with William H. Saunders, to all of the property in question, except some lots which the defendant, Richard, conveyed to her for her natural life, with remainder over to her daughter Sallie.
Referring to the first ground of defense of the defendant Richard, based upon the alleged illegality of the consideration upon which the trust deed was executed, we will briefly condense the evidence upon this subject. The facts and circumstances surrounding the
The second ground of defense urged by Richari is, that the trust deed was not under seal, and therefore inoperative to convey the title of the real estate described in it; such being the case he surrendered it to-William McQueen Saunders, the grantor, and purchased the property and took a deed in his (Richard’s); -own name. A great deal that has been herein said about a trustee’s being estopped to impeach the consideration of a deed will also apply under the same circumstances to a denial of the proper execution of the deed. Likewise what is hereinafter said in reference to the duty of a trustee in the protection of the-trust estate, is to some extent also applicable to the-question just above discussed in regard to the estoppel of a trustee to impeach the consideration of a trust deed. The principle has already been stated, that a trustee who has accepted the trust, entered upon the-discharge of his duty as trustee, and taken possession-, of the trust property, can not in an action brought by his cestui que trust for an accounting for the trust property received by him allege the invalidity of his-appointment as trustee. Damouth vs. Klock, 29 Mich., 289; Harbin vs. Bell, 54 Ala., 389; Benjamin vs. Gill,
The third ground of defense is, that the defendant, Richard, surrendered the trust deed to William McQueen Saunders, who destroyed it, and took the
The fourth ground of defense of Richard is a settle.ment between the parties whereby a deed made by Mrs. ‘Saunders and William H. Saunders, conveying all the trust property to him, except some lots conveyed by him (Richard) to Mrs. Saunders. It is clear from the -evidence that Mrs. Saunders was induced to make this settlement and conveyance while laboring under the impression derived from representations made by Richard,. that his title as trustee was worthless, and,
While we are of the opinion that it was error to dismiss the complainant’s bill out of the court below, still we do not think she is entitled to the full measure-of relief that she claims. While she has a right to-avoid her deed to Richard, she can not do so ' unless she accounts to Richard for the money which she received from him, and which was invested in other property than the trust estate. In the taking of any account of the rents and profits which would be due Mrs. Saunders from Richard, he should have credit for this, money. The deed by which a portion of the trust property was attempted to be conveyed in fee by Rich • ard to Mrs. Saunders should be cancelled, so that the property shall be subject to the trust provided in the-trust deed of William McQueen Saunders to Richard. We think the complainants, William H. Saunders, McQueen C. Saunders and Sallie Wynns, should have-their rights and interests in the trust property as-against the defendant Richard, declared and protected and the trust enforced, and that Richard be held liable-
The defense made by the other defendants, purchasers of portions of the trust property, is, that they were innocent purchasers for value, without any notice or knowledge whatever of the trust. The bill of complaint makes no allegation of any notice or knowledge of the trust whatever of these parties when they purchased the property. The answer of the defendants emphatically deny that they had any notice, actual or constructive, of the trust at the time of purchase and taking possession of said land. They were each of them innocent purchasers without notice. As to all of the defendants, except Richard, the bill of complaint was properly dismissed. 1 Perry on Trusts sec. 218.
The decree of the court below is reversed, and the cause remanded for further proceedings consistent with law and this opinion.