Beeson v. Beeson

9 Pa. 279, 1848 Pa. LEXIS 234
CourtSupreme Court of Pennsylvania
DecidedDecember 11, 1848
StatusPublished
Cited by29 cases

This text of 9 Pa. 279 (Beeson v. Beeson) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beeson v. Beeson, 9 Pa. 279, 1848 Pa. LEXIS 234 (Pa. 1848).

Opinion

Bell, J.

Subject to certain subordinate questions of evidence, the plaintiff presents his case here, as it was presented below, in three principal aspects. First, upon the hypothesis of actual fraud, intended and perpetrated by the acting executor and purchaser. Second, upon the ground of constructive fraud, springing, by the operation of the equitable rule, from the purchase made by one of the trustees of the trust property. And, third, upon the question whether there was such a confirmation of the sale as operates to withdraw it from the equitable right of the cestui que trust, to avoid it, upon certain conditions ?

In connexion with the second of these points, the court below laid it down as a rule of universal application, that where a trustee, or one connected with or having any control over the trust property, becomes the purchaser of it, it is in the option of the cestui que trust to treat the purchase as a nullity, though conceded to have been fairly made and for a full price; but that such a sale is not void, but voidable only, the legal title passing to the purchaser until the sale be set aside by a competent tribunal, which will only [283]*283be done on the terms of reimbursing the purchasing trustee his outlays of purchase-money, and for substantial and valuable improvements. In the application of this rule to the case in hand, the jury were told, that though they should disbelieve the presence of actual fraud, the sale to the defendant was inefficacious as against the plaintiff, unless, indeed, the latter had subsequently ratified it by unequivocal acts.' Of this instruction the defendant complains, because, as he insists, the sale having been actually made and returned by Richard Beeson, as acting executor, without the active participation, as vendors, of the other executors, they are to be regarded as merely strangers in the transaction, and consequently free to become purchasers. The basis of this argument is, that as one of several executors may be legally directed by the Orphans’ Court to sell the lands of a decedent for payment of debts (Bickle v. Bickle, 3 S. & R. 234), in the execution of which he is regarded as the agent of the law, appointed for a special purpose, independently of the duties proper to the office of executor (Myers v. Hodges, 2 W. 383; Bashore v. Whisler, 3 W. 490; Miles v. Diven, 6 W. 148), the order granted for the sale of the land in question must be taken as conferring a power only on Richard Beeson, who, in fact, alone asked for it, and singly gave bond to secure its faithful execution. But, in addition to the answer returned to this by the District Court, that the petition, though signed by one, is in the name of ajl of the executors, and the orde¿ granted to all, that the defendant appears to have acted in reference to this fact, by the employment of Pinnock to make the purchase; and, subsequently, by joining with the other executors in the execution and delivery of the deed of conveyance, it may be remarked that though, at common law, an administrator has ¿to do but with the personal estate of the decedent, by our system he is made a trustee of the realty regarded as assets, and, for certain purposes, becomes actively so, whenever it is necessary to subject freehold estates to a course of administration in payment of debts: Carter v. Trueman, 7 Barr, 315; Rogers v. Rogers, 1 Hopk. 525: he is consequently charged with duties in respect of it. By force of the 20th section of the act of February, 1834, one of these duties is to apply to the proper Orphans’ Court for an order to sell the real estate, whenever it satisfactorily appears to him that the personal estate of his decedent is insufficient to pay all the just debts; and consequent upon this is the obligation to take care that the land, when exposed to sale, shall bring the highest price reasonably procurable for it, or, at least, to preserve a position which will enable

[284]*284Mm to do so. TMs brings Mm directly within the reason of a policy which, looking to a possible clashing of interests, prohibits him to become an unconditional purchaser. The operation of the prohibition is not confined to those who are personally active in effecting a sale. It extends to all upon whom the act of a party or of the law casts a fiduciary relation to the subject of the trust, and which they are not permitted to shake off at pleasure, to assume, it may be, an attitude hostile to the persons beneficially interested : 3Sug. Yend. (236), 6 Am. ed. 158; Ex parte James, 8 Yes. 352. It embraces all who, being employed or concerned in the affairs of another, have thus enjoyed a means of information that might be employed in destruction of the interests they are bound to promote, were the agent at liberty to convert himself into an owner against the consent of the principal. The circle of the rule is therefore extended to include special agents (York Buildings Co. v. Mackenzie, 8 Bro. P. C. 42; Bankin v. Porter, 7 W. 387; Bartholemew i>. Leech, 7 W. 474), commissioners of bankrupts {Ex parte Bennett, 10 Yes. 381), assignees of bankrupts [Ex parte Beynolds, 5 Yes. 707; Ex parte Lewis, 1 Grlyn. & Jame. 69), solicitors of the commission (Owen v. Foulkes, 6 Yes. 630, n.; Ex parte James, 8 Yes. 337), auctioneers, creditors who have been consulted as to the mode of sale (Ex parte Hughes, 6 Yes. 617; Coles v. Trecothick, 9 Yes. 234), attorneys and solicitors (Leiscnring v. Black, 5 W. 303), and others holding similar relations of confidence. The disqualification is said to rest in no other, than that principle which dictates that a person cannot be both judge and party. He that is intrusted with the interest of others, cannot be allowed to make the business an object of interest to himself; because, from the frailty of nature, one who has the power, will be too readily seized with the inclination to use the opportunity for serving Ms own interest at the expense of those for whom he is intrusted. These were the observations of the very able counsel who argued for the appellants in York Buildings Co. v. Mackenzie, and seem to have been adopted by the House of Lords, in avoidance of a purchase made by the agent of the inferior court, whose business it was to ascertain and report' the “ upset” price of the estate, although it was conceded there was no unfairness in the transaction. The principle was carried very far by Lord King, in Keech v. Sanford, 3 Eq. Ca. Ab. 741. There, the lease of the profits of a market had been devised to a trustee, in trust for an infant; before the expiration of the term, the trustee applied to the lessor for a renewal for the infant’s benefit, which he refused, because he could [285]*285not distrain, but must rest singly on a covenant that the infant ivas incompetent to make. The trustee then took a lease to himself. But the Chancellor decreed it should be assigned to the infant, and the trustee to account for the rents and profits since the renewal. He said he must consider it a trust for the infant; for if the trustee, on a refusal to renew, might have a lease to himself, few estates would be renewed to cestuis que trust.” The rule, which stands more in general principle, than upon the particulars of any individual case, was held in Rogers v. Rogers, 1 Hopk. 525, to cover a purchase made by an executor of the real estate of his testator sold under a judgment, on failure of the personal fund, though the executor was not constituted a trustee of the realty by the will.

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Bluebook (online)
9 Pa. 279, 1848 Pa. LEXIS 234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beeson-v-beeson-pa-1848.