Davies v. Hughes

11 S.E. 488, 86 Va. 909, 1890 Va. LEXIS 59
CourtSupreme Court of Virginia
DecidedMay 8, 1890
StatusPublished
Cited by8 cases

This text of 11 S.E. 488 (Davies v. Hughes) 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
Davies v. Hughes, 11 S.E. 488, 86 Va. 909, 1890 Va. LEXIS 59 (Va. 1890).

Opinion

Lacy, J.,

delivered the opinion of the court.

This case is as follows: In the year 1865, Thomas Hughes died, leaving a will, dated October 26, 1865, by which he provided : (1) That all his just debts should be paid. (2) That the appellee, Thomas J. Hughes, his son, named as his executor, should sell all of his real estate and personal property on such terms and at such time as he might deem most advisable for all concerned. (3) He lent to his wife all his property, real and personal, or'the sales arising from the said property, during her life, and at her death he gave one-third of the same to the children of a deceased son, John TI. Hughes, who are the appellants, after accounting for the sum of $1,450, previously advanced, to the said deceased son, John H. Hughes, and the remaining two-thirds of the estate was given to his son, the said executor, Thomas J. Hughes, who is the appellee. Thomas J. Hughes qualified as executor on the 4th day of May, 1868, and settled from time to time his ex parte accounts. In March, 1877, the appellants filed their bill to surcharge and falsify the said accounts. Hew accounts were ordered, the said ex parie accounts appearing to have been informal, and not returned and confirmed. Upon the taking of these accounts, it appeared that Thomas J. Hughes had retained possession of the real estate from the death of the widow, in 1868, to Hovember 3, 1869, when he sold the said real estate to his clerk, one Seward, at the price of $6,000, there being no other bidders at the auction of the same, except three persons procured by the said executor to make pretended bids in order to give a- show of fairness to the transaction. Seward paid him no money, and on the same day the executor made Seward a deed; and, on the 5th of Hovember, Seward made him a deed for the said [911]*911real estate. The said executor never paid the one-third purchase money of this land to the parties entitled thereto, but conveyed the same to his sons, along with all his property of every sort, confessed a judgment in favor of his wife for $3,000, and a large number of other judgments were recovered against him in the same year, 1883. The said Thomas J. Hughes is also the personal representative of his brother, John H. Hughes, deceased, the father of the appellants, Charles H. Hughes and his sisters, Indiana and Florence; and a suit in the name of Davies and wife against Hughes, having for its object the settlement of the estate of the said John H. Hughes, was heard along with this, but subsequently dismissed by the court, and an account ordered of all the estate which came into the hands of the said executor with which he was properly chargeable. Distributee accounts were also taken, but subsequently appear to have been disregarded, and an account, returned, with a report by the commissioner, on the 20th of November, 1882, by which a balance was found due to the estate of Thomas Hughes, deceased, of $5,026 40 of principal and $301 58 of interest, to which exceptions were filed by Thomas J. Hughes, and on the 20tli of May, 1884, the exceptions of Thomas J. Hughes were sustained by the court, and the report, recommitted in conformity with a written opinion stated to have been filed with the record, and made a part of the decree. The said opinion, however, is not in the record. Xovember 1, 1884, another account and report were returned by the conimissioner, with exceptions thereto by the plaintiffs. The court, by the decree of May 19,1885, overruled the exceptions to this report, and confirmed the same. The plaintiffs thereupon, by leave of the court, filed an amended bill seeking to set aside the sale of the land by the executor indirectly to himself as traudulent. This bill the court dismissed by decree of June 19, 1888, and gave costs, whereupon plaintiffs appealed to this court.

The first error assigned, is that, by the said decree of May 19, 1885, confirming the commissioner’s 'report and the account [912]*912returned therewith, they are made to pay interest on the above stated advancement charged against them in the will of Thomas Hughes. The next is that Thomas J. Hughes was not charged with rent for use and occupation of the said farm during the time he held and used it to their exclusion, before the pretended sale thereof. The next assignment is that the decree of June 19, 1888, dismissed their amended bill, and refused to set aside the fraudulent sale of the real estate by the executor to himself.

As to the first assignment of error, that the appellants were required to account for the advancement charged against them in the will, with, interest, it is well settled that interest should not be charged upon an advancement until final distribution. This money belonged to the legatees, and not to the estate of Thomas Hughes. It must be credited without interest at the time of final distribution. The executor is chargeable with interest on the balance withheld by him. If it could be otherwise, the legatee would be thus made a debtor; and under many circumstances his legacy might be wiped out and extinguished by interest upon a sum which in no event could he be required to pay. Barrett v. Morris’ Ex’ors, 33 Gratt., 273, and cases cited. This rule could be varied only by, express provisions in the will to that end. Cabells v. Puryear, 27 Gratt., 504.

As to the second assignment of error, that the executor was not charged with rent for one-third of the farm, we think the decree is plainly erroneous. It is true that the appellants lived upon the farm also, but they had no share of its profits. They were made to serve; and, if the evidence is to be believed, they served a hard task-master, who was more sparing of the comfort of these childreu than of his blows bestowed upon them for any supposed neglect of their work. Their services were undoubtedly worth their board, and there is no reason why the executor should not account to them for the value of their share which he enjoyed, and which he withheld from them. If the will gave him a discretion .when to sell, it did [913]*913not provide that it should be his entirely, either before or after the sale.

The next assignment of error is as to the action of the court, by its decree of June 19, 1888, refusing to set aside the said fraudulent sale by the executor indirectly to himself. It is well settled that an executor cannot buy at his own sale. The positions of vendor and vendee are inconsistent. If he desired to become the vendee, he could easily have declined the voluntary attitude of vendor. The interposition of Seward and the puffers employed was a fraudulent device. The executor sold and conveyed without receiving a dollar of purchase money, and repurchased without paying a dollar. This was a good deal to he done without the expenditure of a dollar of money, hut his trust position sufficed to achieve it. Tt was a sham sale, and is voidable at the option the cestuis que trust; and this rule is not affected by the fact that two-thirds of the proceeds belonged to him. He was still a trustee as to the matter in controversy—the one-third belonging to the appellants. Staples v. Staples, 24 Gratt., 225; 1 Benj. Sales, p. 31, note 22; Ror. Jud. Sales, 346, 356; 1 Perry, Trusts, secs. 205, 224; Bailey's Adm'x v. Robinson, 1 Gratt., 4. In the last-named case principles governing the court in such a case are clearly laid down.

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Bluebook (online)
11 S.E. 488, 86 Va. 909, 1890 Va. LEXIS 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davies-v-hughes-va-1890.