140 F. 61 | U.S. Circuit Court for the District of Southern New York | 1905
The bill is for an accounting, and alleges that on or about June 24,1902, the United States Shipbuilding Company, a New Jersey corporation, bought certain properties from the complainant, for which he received securities amounting in the aggregate to upwards of $60,000,000; that the complainant thereupon delivered such securities to the defendant, as trustee and depositary, to hold and thereafter deliver and distribute the •same as directed and authorized by the complainant, and that the defendant received the securities and accepted the trust obligation to so deliver and make distribution thereof; that an account has been demanded of the defendant, but none has ever been rendered in respect to such deposits or of the disposition made thereof. The bill also alleges “on information and belief that in the disposition, distribution, and disposal of the said securities the- defendant has disregarded the rights of your orator, and has violated its duties as trustee to your orator, and his directions and wishes respecting the same.” How the securities were disposed of, whether by sale or distribution, what complainant’s wishes or directions were, or in what particular his rights have been violated, does not -appear. The defendant has demurred on the grounds that the bill lacks equity, and that the court is without jurisdiction.
Complainant’s theory is that the defendant was depositary and trustee, and hence fiduciary relations existed between them en
The next point is whether the relations between the contending parties were of a fiduciary character. Assuming the relations of bailor and bailee to have existed, the question naturally arises whether a fiduciary responsibility was imposed thereby. That the transactions of principal and agent, bailor and bailee, and pledgor and pledgee are not cognizable in equity is clear, unless accompanied by facts and circumstances from which it may be presumed that the intendment of the parties was to create a trust, or where the obligations imposed arose out of confidential relations. Miller et al. v. Kent et al. (C. C.) 16 Fed. 13; Sawyer v. Atchison, T. & S. F. R. Co. (C. C.) 119 Fed. 252; Marvin v. Brooks, 94 N. Y. 71; American Spirits Mfg. Co. v. Easton et al. (C. C.) 120 Fed. 440; Upshur v. Briscoe, 138 U. S. 377, 11 Sup. Ct. 313, 34 L. Ed. 931. To the same effect, see Sanford v. Sanford, 139 U. S. 642, 11 Sup. Ct. 666, 35 L. Ed. 290, and Minnesota v. Northern Securities Co., 184 U. S. 199, 22 Sup. Ct. 308, 46 L. Ed. 499. My conclusion is that such facts and circumstances as are essential to confer jurisdiction on this court are not pleaded, and hence the point is well taken.
The demurrer is sustained, with costs, leave, however, being granted the complainant to amend within 20 days; otherwise the bill is dismissed.