Brown v. Lambert's Adm'r

33 Va. 256
CourtSupreme Court of Virginia
DecidedApril 15, 1880
StatusPublished

This text of 33 Va. 256 (Brown v. Lambert's Adm'r) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Lambert's Adm'r, 33 Va. 256 (Va. 1880).

Opinion

BURKS, J.,

delivered the opinion of the court.

Upton Edmondson, by deed of date January 15, 3828, and recorded the same day, in consideration, as therein expressed, of the love and affection which he entertained for his wife and child and in order to secure a support for them, conveyed all of his property, real and personal, among the latter a number of slaves, to William Bagley, in trust as follows: “The said William Bagley and his heirs shall permit the profits of all the property hereby conveyed to go to the support and maintenance of the said-Upton Edmondson and Frances his wife and his child now living and the children which the said Upton may hereafter have, so long as the said Upton and Frances his wife, or either of them, shall live, and after their death, the said Wm. Bagley shall convey the aforesaid property to the said Upton Edmondson’s children then living; and if any of said children shall have died before the death of both the said Upton and his wife,-living child or children shall take the portion which its or their father cr mother (as the case may be) would have been entitled to if then living.”

[440]*440The deed contains this further provision: “And it is hereby understood that it is not the design of this *deed to defraud any one of the creditors of said Upton of any just and legal claims they may now have against him, but said William Bagley and his heirs shall have the property hereby conveyed for the uses aforesaid, free from and not subject to the control, contracts or debts which the said Upton may hereafter enter into or incur.”

Bagley (the trustee) died in 1833. The estate was without any regularly appointed trustee from that time until 1863, when Upton Edmondson was appointed trustee by the county court of Lunenburg qounty in proceedings had on a bill in chancery filed by him in the names of himself and his wife against his grandchildren, who are appellants here. He died in 1873. His wife survived him and died in 1874. The grandchildren aforesaid, who survived her, it is admitted, are alone entitled to the trust property, or what remains of it, under the limitations of the deed of 1838.

From the death of Bagley in 1833 until the death of Upton Edmondson in 1873, and probably from the date of the deed (1838), a , period of forty years, the latter continued in the possession of the trust property, managing, controlling and using it pretty much as if he had the absolute ownership; and in the interval between 1833 and 1863 he sold several of the trust slaves, received the proceeds, appropriated them Ito his own use, and never accounted for the same or any part thereof to the appellants or to any other person.

The claim of the appellants is. that the estate of Upton Edmondson is liable to them for these proceeds; that they constituted a trust fund in his hands; that a portion (the price of two of the slaves) was invested by him in certain mill property in the proceedings mentioned, which, at their option, shall be treated as trust property; and that as to the residue of said proceeds (the price obtained for three other slaves), and ^indeed as to the whole proceeds, if no portion was invested as aforesaid, the liability of the decedent’s estate is for a debt due by him as “trustee for persons under disabilities.” and that such debt is entitled, in the application of the assets of the decedent to the satisfaction of the demands against him, to the priority accorded to fiduciary debts by our statute regulating the order in which debts of a decedent, shall be paid by his personal representative. See Code of 1873. ch. 136, § 35; Acts of 1869-70, p. 438.

Upon exceptions taken to the commissioner’s report made under orders directing accounts, the circuit court, while of opinion that Upton Edmondson sold the absolute estate in the slaves was yet further of opinion, that no portion of the proceeds of sale was invested in the mill property, that the claim of the appellants was not a fiduciary debt entitled to priority in the administration of the assets of said decedent, and, moreover, that the claim was barred by the act of limitations. The decree of the court, the same appealed from, was in conformity with this opinion.

By recurring to the extract from the deed, it will be seen, that the remainder in the trust property is limited to the children of the grantor who may be living at the death of the survivor of himself and his wife, and to the descendants of such of them as shall have theretofore died. The limitation therefore is contingent as to the persons to take the remainder, and at the time the estate vested in Upton Edmondson’s grandchildren, all property in the slaves covered by the deed had perished by the results of the late war. How far and in what manner, if at all, the rights of the appellants in the present case might be effected by this state of •facts was a question suggested to the minds of some of the judges by reading the record after the cause had been submitted, and as that question had not been ♦argued before the court, counsel were invited to present their views upon it, which they have done in notes giving us much aid in our investigations. We shall dispose of that question first.

It is argued for the appellee, that if Upton Edmondson had not sold the slaves the property in them would have been inevitably destroyed by the cause which effected their emancipation before the rights of the appellants vested, and therefore they were not injured by the sale and conversion, although Edmondson may have been bene-fitted thereby, and not being injured, they are entitled to no relief.

To this it is replied for the appellants, that their claim is not for damages as for a trespass, where the recovery is measured by the extent of the injury done, but that their claim rests on equitable principles peculiar to trust estates; that the slaves when sold were trust property; that Edmondson was a trustee; that the sale was a breach of trust; that the appellants are cestuis que trust, and have the right to treat the proceeds^ of sale as trust funds, although the original' trust property would have inevitably perished if it had not been converted. We think this is the correct view of the case.

The doctrine is elementary, that where a trustee commits a breach of trust by a sale of the trust subject without authority, the cestui que trust (beneficiary) may, at his option, disaffirm the sale and pursue the property in the hands of a volunteer or a purchaser for value with notice of the trust, or he may affirm the sale and resort to the proceeds in the hands of the trustee, if they can be identified, or if they have been invested or converted into other property held by the trustee, or a volunteer, or purchaser with notice, and can be distinctly traced, he may, if he elect to do so, take such property in lieu of the proceeds so invested or *converted, „ or if he elect not to do that, he may have his remedy personally against the trustee.

The option in such case, says Judge Story is exclusively given to the cestui que trust, and is given -to him for the wisest purposes [441]*441and upon the soundest public policy. It is to aid in the maintenance of right and in the suppression of meditated wrong. Oliver & others v. Piatt, 3 How. (U. S. R.) 333, 401. The rule in equity,” says the same eminent authority, “is, that all the gain made by the trustee, by a wrongful appropriation of the trust fund, shall go the cestui que trust, and all the loses shall be borne by the trustee himself.” Ibid.

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Bluebook (online)
33 Va. 256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-lamberts-admr-va-1880.