15 F. 753 | W.D. Pa. | 1883
This bill is filed by Elias Speidell, a citizen of the state of Ohio, against Jacob Henrici and Jonathan Lonz, as trustees of the Harmony Society, located in Beaver county, Pennsylvania. It alleges—
That the complainant’s father and mother resided m the Kingdom or w iutomberg, Germany, up to about the year 1804, were engaged in farming, were without any education, but were devout Christians and members of the established Protestant church of the country, and earnest seekers after spiritual light and their own salvation. That, at the same time, one George Rapp lived in the same neighborhood and was a man of education superior to that of the simple farming people, “ of great intellectual power, clear-sighted, sharp-witted, eager for superiority, and a born leader of men.” That about the year 1800 the said Rapp began to preach clandestinely to many of his fellow-countrymen, including the complainant’s parents, that the Lord had chosen him as their spiritual leader; that the second advent of Christ and the beginning of the millenium, as taught by the revelation of St. John, were near at. hand, and that in order to be saved from eternal damnation it was necessary for them to separate from the established church of their country and to form a settlement of themselves under his guidance and control. That by means, of his preaching and personal influence over liis disciples he caused about 300-
And the bill prays—
That the trust be rescinded as resting upon fraud and iniquity, and as being contrary to public policy and the laws of the land; that the persons interested in its assets be remitted to their original rights; that discovery be made of
To this bill the respondents have demurred for the following causes:
(1) That the cause of complaint is barred by the statute of limitation; (2) that the causes of complaint are stale, and ought not, therefore, to be taken cognizance of; f(3) generally that no case is stated for relief.
It is to be noted that the foundation of the complainants’ claim to relief is his alleged membership of the Harmony Society, and the performance of work and labor in its behalf for a period of 12 years prior to 1831, amounting in value to a sum exceeding $500. In that year he severed his connection with the society, thus emancipating himself from the bondage in which he had been held, and was entirely free and competent to assert his legal rights. If he wished to obtain compensation for his labor, an action at law was then available to him to recover it. If he desired to assert a claim upon the property of the Harmony Society, as one of its beneficiaries, a court of equity was then open to him for the administration of appropriate relief. But he rested in entire inaction for more than 50 years, not even having made a demand upon the society, in any form, until the seventh of May, 1882.
And it is also to be noted that, for 17 years after the scales fell from his eyes and he was convinced that marriage was not a mortal sin, during the life of Mr. Bapp, against whose character and memory the most vigorous epithets of reproach are directed with unsparing reiteration, he rbade no movement whatever to obtain an account of the trust and of his own interest in it. And yet Mr. Rapp, as the founder of the society and of the trust, and the sole manager of all its business, was peculiarly capable—if he was not the only person who could do so—of furnishing all required information touching all its affairs, and especially of the nature, condition, and administration of the trust. Besides, the complainant does not seek compensation for his labor alone—for that he might have been remitted to his legal remedy; but the fundamental prayer of his bill is that the trust be abrogated as founded in imposture and hence unlawful in its beginning; and yet for 50 years he was quiescent.
Ought the bill, then, to be entertained ?
A suitor in equity is required to be “prompt, eager, and ready” in the pursuit of his- rights. Diligence is'an essential condition of equitable relief, and unexplained negligence is never encouraged-
*757 “Xoihing can call forth a court of equity into activity hut conscience, good, faith, and reasonable diligence. When these are wanting, the court is passive and does nothing. Laches and negligence are always discountenanced, and, therefore, from the beginning of this jurisdiction, there was always a limitation of suits in this court.” Smith v. Clay, Amb. 645, quoted with approval in Brown v. County of B. Vista, 95 U. S. 160.
So, also, says Mr. Justice Swayne in the case last referred to:
“The law of laches, like the principle of the limitation of. actions, was dictated by experience, and is founded in a salutary policy. The lapse of time carries with it the memory and life of witnesses, the muniments of evidence, and other means of proof. The rule which gives it the effect prescribed, is necessary to the peace, repose, and welfare of society. A departure from it would open an inlet to the evils intended to be excluded.”
And again:
“ Courts of equity refuse to interfere after a considerable lapse of time, from considerations of public policy, from the difficulty of doing entire justice, when the original transactions have become obscure by timo, and the evidence may be lost, and from the consciousness that the repose of titles and the security of property are mainly promoted by a full enforcement of the maxim, vtgtlantibus et non dormientibus jura subseroiunt.” 1 Story, Eq. Jur. § 529.
Unless, then, these principles of law are inapplicable to the present case, the complainant has lost any title to relief which he may have had. It is urged that this is an express, continuing, and subsisting trust, and that, therefore, no lapse of time will impair the complainant’s right to relief. Such a trust is set up in the bill, and the demurrer admits it to be of that character; and we must, therefore, so treat it.
But it is alleged to have been an imposture, and unlawful in its inception, and the main relief sought is that it be “rescinded and held for naught” on that ground. Was, then, there no duty of diligence on the part of the complainant under these circumstances ? This is forcibly answered by Judge Woodwakd in Price's Appeal, 4 P. B. Smith, 482:
“And if he had gone for rescinding it, and had convinced the court that it was a catching bargain that ought not to be enforced against him, still he would have encountered that principle of equity that refuses relief to stale demands, and which requires conscience, good faith, and reasonable diligence in parties complainant. In Roberts v. Tunstall, 4 Hare, 262, the vice-chancellor assumed that the deed in question there might have been impeached on both grounds assumed against it, if the transaction had been of recent occurrence, hut on the authority of several cases refused to interpose after 18 years delay to sue, and declared that the principle of tho decisions is, that after so*758 great delay the injured party must be held to have waived his right to relief,—. a principle which presupposes a right to set aside the transaction independently of that fact.”
Doubtless, where a valid express trust has been created, and is recognized or treated by both parties to it as subsisting, mere delay on the part of the cestui que trust may not defeat his remedy for the enforcement of his rights under the trust. But there is abundant authority for the statement that when a trustee denies the right of the cestui que trust, and his relation to the latter, in respect of the trust property, becomes adverse from that time, the right of the cestui que trust to relief is subject to the operation of the law of laches. 7 Johns. Ch. 90.
The trust alleged here was instituted for the equal and exclusive benefit of the members of the Harmony Society. It was part of the religious as well as secular polity of the society. Fellowship in the society was the only recognized title to participation in its benefits. When that fellowship ceased, from whatever cause, all further interest in the trust and all the privileges of membership were necessarily lost and were denied. From that time forth the relations of the withdrawing member and the society, as to all the incidents of membership, were adverse. This was the attitude of the complainant and of the society towards each other. He adjured a tenet of its religious creed, and proposed to violate one of its fundamental rules. He was, therefore, compelled to leave it, and thenceforth ceased to exercise any of the privileges or to enjoy any of the benefits of membership, but was, as to all these, placed in adverse relations with it. And yet, for more than 50 years, he acquiesced in this hostile denial of his right, never questioning the validity of the trust, or making any claim to a participation in it. Negligence such as this, so long-continued and so expressive, must be considered as a waiver of his right to relief.
We do not discuss or consider the first and third causes of demurrer, because we regard the second as decisive of the case. The demurrer, therefore, is sustained upon the second cause assigned, and the bill must be dismissed with costs; and it is so ordered.
Express Trusts. It is generally true that statutes of limitation do not apply to express and continuing trusts. These are not cognizable at law but only in equity, and there the trustee cannot, during the continuance of the
If the trustee denies the right of the cestui que trust, and claims adversely to him, this amounts to an abandonment of ';he fiduciary character. It is a renunciation of the trust. So where there is a settlement and a receipt given by the cestui que trust to the trustee. The trust ceases as to all matters prior to the settlement. And from the date of renouncing the trust, or of settling and balancing its accounts, time begins to run against the cestui que trust, during which his silence and acquiescence may operate to bar his rights if he finally undertakes to assert them, either at law or in equity,
Great delay in seeking to enforce a trust will always have great weight against the trust, especially where the nature and character of the trust has become obscure, or the acts of the parties or other circumstances give rise to presumptions against it.
An assignment by an administrator to his individual creditor of choses in action belonging to his intestate, without any actual fraud, may raise a constructive trust on the part of the creditor; but a court of equity will not declare it to exist after a lapse of 20 years from the time when the transaction became known.
Instances of the enforcement of trusts, notwithstanding the lapse of long-periods of time, are the following: While a son was absent and his whereabouts unknown, his mother became his guardian and received his estate. Upon her death her distributees took it with knowledge of the manner in which she held it, and agreed to hold it subject to the claim of the son or his-representatives. The latter subsequently claimed the property and it was decided that the distributees took it subject to the trust in favor of the son, and, not holding it adversely, could not set up the statute of limitations, and that-they were liable foivprofits.
Under an agreement between and A. andB. in 1837, B. took a transfer of a land certificate to hold one-half in trust for A. The patent was issued in 1847, and B. acknowledged the trust in 1848. The first act of hostility to A.’s claim was the sale of the land by B.’s administrator in 1852, and the suit to enforce the trust was begun in December, before the payment of the purchase-money. It was decided that the claim was not stale,
Constructive Trusts. In cases involving constructive trusts a different rule prevails. Lapse of time, especially when coupled with occupancy and improvement of the property by the alleged trustee, has been held a bar to the enforcement of a resulting trust in many cases, even though the fraud was evident, and the right to relief originally clear.
The true view is that the lapse of time is only one circumstance of the many from which the conclusion of laches must be drawn. Each case is to he determined by its own facts,
Excuses. The lapse of time or laches which will bar the enforcement of a trust may he excused; as, for example, by lack of knowledge on the part of the cestui que trust, his absence from the country, his disability, such as infancy, insanity, or coverture. The delay may even have been caused by the defendant himself, in which case it is, of course, no bar to the action.
Receipt of a part of the property due from the trustee is not a waiver of the rights of the cestui que trust to the whole of the trust property,
Chicago. Adelbert Hamilton.
Lawson v. Blodgett, 20 Ark. 195; Young v. Mackall, 3 Md. Ch. 398; Fishwick v. Sewell, Har. & J. 393; Shibla v. Ely, 6 N. J. Eq. 181.
McDonald v. Sims, 3 383; Dow v. Jewell, 18 N. H. 310.
Paschall v. Hinderer, 28 Ohio St. 568.
Murdock v. Hughes, 15 Miss. 219; Williams v. First Pvesby. Soc. 1 Ohio St. 478; Dean v. Dean, 9 N. J. Eq. 425; Wellborn v. Rogers, 24 Ga. 558.
Taylor v. Blair, 14 Mo. 437; Mitchell v. O’Neil, 4 Nev. 504; Robertson v. Maclin, 3 Hayw. 70.
Dean v. Dean, 9 N. J. Eq. 425; Atty. Gen. v. Old South Soc. 13 Allen, 474.
Atty. Gen v. Old South Soc. 13 Allen, 474.
Morris v. Duke, 2 Pat. & H. 462.
Halsey v. Tate, 52 Pa. St. 311.
Baumer v. Straup, 21 Md. 328; Merriam v. Hassam, 14 Allen, 516; Marr v. Chester, 1 Swan, 416.
Knox v. Randall, 24 Minn. 479.
Moor v. Shepard, 2 Duv. (Ky.) 123.
7 Grat. 476.
Hodges v. Johnson, 15 Tex. 57.
Spurlock v. Sproule, 72 Mo. 503.
Hume v. Long, 53 Iowa, 299.
Shorter v. Smith, 56 Ala. 208.
Sunderland v. Sunderland, 19 Iowa, 325; Newland v. Early, 3 Tenn. Ch. 714; Trafford v. Wilkinson, 3 Tenn. Ch. 701; Douglas v. Lucas, 63 Pa. St. 11; Hall v. Doran, 13 Iowa, 368; Best v. Campbell, 62 Pa. St. 478; Brown v. Guthrie, 27 Tex. 610; Strempfler v. Roberts, 18 Pa. St. 283; Robertson v. Macklin, 3 Hayw. 70; Buckford v. Wade, 17 Ves. 97; Delane v. Delane, 7 Bro. P. C. 279; Clegg v. Edmonson, 8 De G., M. & G. 787; Groves v. Groves, 3 T. & J. 172; Peebles v. Reading, 8 Serg. & R. 484; Graham v. Donaldson, 5 Watts, 471; Haines v. O’Connor, 10 Watts, 315; Miller v. Blose, 30 Grat. 744; Jennings v. Shacklett, 30 Grat. 765; King v. Purdee, 96 U. S. 90; Midner v. Midner, 26 N. J. Eq. 299; Smith v. Patton, 12 W. Va. 541; Harden v. Parsons, 1 Ed. 145; Villines v. Norfleet, 2 Dev. Eq. 167; Portlock v. Gardner, 1 Hare, 594; Beckford v. Wade, 17 Ves. 97; Chalmer v. Bradley, 1 J. & W. 59; Cholmondely v. Clinton, 1 J. & W. 151; Smith v. Clay, 3 Bro. Ch. 639; Hawley v. Cramer, 4 Cow. 117; Dobson v. Racey, 3 Sandf. Ch. 61; Powell v. Murray, 3 Edw. Ch. 641; Anderson v. Burchell, 6 Grat. 405; Colman v. Lyne, 4 Rand. 454; Irvine v. Robt, 3 Rand. 549; Gould v. Gould, 3 Story, 516; Hough v. Richardson, 3 Story, 659; Veasie v. Williams, 8 How. 134; Hallett v. Collins, 10 How. 174; Wagner v. Baird, 7 How. 234; McKnight v. Taylor, 1 How. 161; Piatt v. Vattier, 9 Pet. 405; Andrew v. Wrigley, 4 Bro. Ch. 124; Blennerhassett v. Day, 2 B. & B. 118; Gregory v. Gregory, Cowp. 201; Jac. 631; Selsey v. Rhodes, 1 Bligh, N. S. 1; Champion v. Rigby, 1 R. & M. 539; Ex parte Granger, 2 Deac. & Ch. 459; Collard v. Hare, 2 R. & M. 675; Norris v. Neve, 3 Atk. 38; Pryce v. Byrn, 5 Ves. 681; Morse v. Royal, 12 Ves. 355; Medlicott v. O’Donnell, 1 B. & B. 156; Hatfield v. Montgomery, 2 Port. 59; Bond v. Brown, 1 Harp. Eq. 270; Edwards v. Roberts, 7 Sm. & M. 544; Peacock v. Black, Halst. Eq. 535; Steele v. Kinkle, 3 Ala. 352; Smith v. Clay, Amb. 645; Bond v. Hopkins, 1 Sch. & Lef. 413; Hovenden v. Annesley, 2 Sch. & Lef. 639; Stackhouse v. Barnston, 10 Ves. 466; Ex parte Dewdney, 15 Ves. 496; Kane v. Bloodgood, 7 Johns. Ch. 93; Dexter v. Arnold, 3 Sumn. 152; De Couche v. Savetier, 3 Johns. Ch. 190; Murray v. Coster, 20 Johns. 576; Provost v. Gratz, 6 Wheat. 481; Hughes v. Edwards, 9 Wheat. 489; Elmendorf v. Taylor, 10 Wheat. 168; Miller v. McIntire, 6 Pet. 61; Sherwood Sutton, 5 Mason, 143; Williams v. First Presby Soc. 478.
Baker v. Read, 18 Beav. 398; Emerick v. Emerick, 3 Grant, 295; Hite v. Hite, 1 B. Mon. 177.
Bruce v. Child, 4 Hawks, 372.
Norris’Appeal, 71 Pa. St. 124; Walker v. Walker, 16 Serg. & R. 379; United States Bank v. Biddle, 2 Pars. Eq. 31; Perry v. Craig, 3 Miss. 525; Field v. Wilson, 6 B. Mon. 479; Thompson v. Blair, 3 Murphy, 593; Ward v. Van Bakkelen, 1 Paige, 100; Farr v. Farr, 1 Hill, Eq. 391; Bruce v. Child, 4 Hawks, 372; Ferris v. Henderson, 12 Pa. St. 54; McDowell v. Goldsmith, 2 Md. Ch. 370; Smith v. Clay, 3 Bro. Ch. 639n; Hovenden v. Annesley, 2 Sch. & L. 636; Stackhouse v. Barnston, 10 Ves. 466; Pryce v. Byrn, 5 Ves. 681; Bright v. Legerton, 29 Beav. 60; 2 De G., F. & J, 606; Hodgson v. Bibby, 32 Beav. 221; Browne v. Cross, 14 Beav. 105; Re McKenna, 13 Ir. Eq. 239; Clanricarde v. Henning, 30 Beav. 175; Scott v. Haddock, 11 Ga. 258; Obel v. Bishop, 1 De G., F. &,J. 137.
Selsey v. Rhoades, 1 Bligh, N. S. 1.
Blennerhassett v. Day, 2 B. & B. 118.
Hayes v. Goode, 7 Leigh, 486.
Harrod v. Fountleroy, 3 J. J. Marsh, 548; Bond v. Brown, Harp. Eq. 270; Page v. Booth, 1 Rob. Va. 161; Phillips v. Beldon, 2 Edw. Ch. 1.
Powell v. Murray, 10 Paige, 256.
Prevost v. Gratz, 6 Wheat. 481.
Maxwell v. Kennedy, 8 How. 210.
Anderson v. Barwell, 6 Grat. 405.
Mulhallen v. Murum, 3 Dr. & W. 317.
Newman v. Early, 3 Tenn. Ch. 714; Butler v. Haskell, 4 Des. 651.
Grisby v. Mousley, 4 De G. & J. 78; Bell v, Webb, 2 Gill, 263.
Michoud v. Girod, 4 How. 561; Wafford v. Wilkinson, 3 Tenn. Ch. 701; Boone v. Chiles, 10 Pet. 177; Pyce v. Byrn, 5 Ves. 681; Carpenter v. Canal Co. 35 Ohio St. 307; Provost v. Gratz, 6 Wheat. 481.
Sears v. Shafer, 6 N. Y. 268; Richardson v. Jones, 3 G. & J. 163; Doggett v. Emerson, 3 Story, 700; Callendar v. Collgrove, 17 Conn. 1; Phalen v. Clarke, 19 Conn. 421; Henry Co. v. Winnebago, 52 Ill. 299; Hallett v. Collins, 10 How. 174; Rider v. Bickerton, 3 Swans. 81n; Michoud v. Girod, 4 How 561; Ferris v. Henderson, 12 Pa. St. 49; Pickett v. Loggan, 14 Ves. 215; Purcell v. McNamara, Id. 91; Aylewood v. Kearney, 2 B. & B. 263; Murray v. Palmer, 2 Sch. & Lef. 487; Warner v. Daniels, 1 W & M. 111; Bowen v Evans, 2 H. L. Cas. 257; Trevelyan v. Charter, 11 Cl. & Fin. 714; Napton v. Leaton, 71 Mo. 358. See Henry v. Conn, 12 Ohio, 193; Geaton v. Geaton, 4 Bradw. 579.
Miles v. Wheeler, 43 Ill. 123.
Taylor v. Taylor, 8 How. 201; Brown v, Carter, 5 Ves. 877; Crispell v. Dubois, 4 Barb. 393; Wright v. Vanderplank, 2 K. & J. 1; 8 De G., M. & G. 133.
Parkam v. McCravy, 6 Rich. Eq. 114.
Perry v. Craig, 3 Mo. 516; Locker v. Armstrong, 2 Dev. & B. 174; Maxwell v. Kennedy, 8 How. 210; Roberts v. Tunstall, 4 Hare, 357.
Thompson v. Finch, 22 Beav. 316; 8 De G., M. & G. 560.
Hanchett v. Briscoe, 22 Beav. 496.
Thompson v. Finch, 22 Beav. 325; 8 De G., M. & G. 560; Life Ass’n of Scotland v. Siddall, 3 De G., F. & J. 73; Provost v. Gratz, 6 Wheat. 481; Mellish’s Estate, 1 Pars. Eq. 486; Beeson v. Beeson, 9 Barr. 300.
Knight v. Bower, 2 De G. & J. 421, 413; Life Ass’n of Scotland v. Siddall, 3 De G., F. & J. 72.