Hall v. Harris

11 Tex. 300
Texas Supreme Court·Decided July 1, 1854·Published·Cited by 19 cases

Opinion

Lipscomb, J.

The first point, presented for our consideration by the appellants’ brief, is, the supposed error of the Court below, in overruling the exceptions of the defendants, [302] to the plaintiffs’ petition and amended petition. They contend that there is no cause of action set out in the petition; that, by the terms of the deed of trust, Hall was entitled to the possession, down to the sale, and that his possession was a lawful possession until a sale had been made, and that the possession by the trustees, before or at the sale, was not necessary to the validity of a sale in the execution of their trust; that the sale would have been valid, without their being in possession of the trust property. This may be true as an abstract question; because, then, Hall would have been held as holding possession for the trustees, and his possession would have been for their use. But when he sets up an adverse title, to the title of the trustees, and claims under such title, as is alleged in the petition, the principle does not apply; because, then, he in effect disavows so holding the property, and disclaims the trust. The plaintiffs, in their petition, allege this adverse claim of title and possession as being in Mrs. Hall, under a sale and purchase by her, and that the defendants have refused to give possession, though demanded. Under such circumstances, the right of possession and title of the trustees being denied, had they proceeded to sell the trust property so encumbered by an adverse party, it would not have been a faithful discharge of the trust; because it is not likely that the property, so encumbered with an adverse possession and title, would have sold for its fair value; and it is probable, it would not have raised an amount sufficient for the payment of the debt intended to be secured by it.

The two next exceptions are not supported by the record : a want of a demand, and a want of averring that Alcorn, the beneficiary in the deed of trust, had not requested the trustees to proceed to execute the trust; both of these facts are alleged in the petition of the trustees.

There is another exception, to the parties. It is insisted that Alcorn, the beneficiary, is an improper party. This exception is not well taken; because, when the title of the trustees was disclaimed, and an adverse title set up, as alleged in the peti[303] tion, his interest in the suit to enforce his rights, was material; but it is not perceived on what ground the defendants could object to his being a party to the suit, being a proceeding in chancery to enforce and execute a trust for his benefit; and, in such cases, all parties, to be affected by the result of the suit, ought to de made parties. Judge Story lays down the doctrine, on the subject of parties in suits of this kind, to be as follows, i. e. “ The general rule in cases of this sort is, “that in suits respecting the trust property, brought either by or “ against the trustees, the cestui que trust, or beneficiaries, as “ well as the trustees also, are necessary parties. And when “ the suit is by or against the cestui que trust, or beneficiaries, “ the trustees are also necessary parties; the trustees have the “ legal interest and therefore they are necessary parties ; the “ cestui que trusty or beneficiaries, have the equitable and ulti- “ mate interest, to be affected by the decree, and therefore they “are necessary parties.” (Story, Eq. Sec. 207.) That this is the general rule, and applicable to this case, there can be no doubt; and it will be found, in the subsequent Sections of the same author, that it has never been made an available objection, that the beneficiary has been made a party; and the exception is believed to be, under peculiar circumstances, to dispense with the making all of the trustees, or cestui que trusty parties, not to their being parties. (See Head v. Teynham, 57, note 4 to Section 209, Story, Eq., and note 4 to Sec. 210, same book.) To the objection that the suit is founded on a legal title, and the legal title being in the trustees, they may enforce that legal title, without the cestui que trust, we answer that the suit is brought to enable the trustees to execute a trust, and for its enforcement through a judicial decision, and distinctions between Common Law and chancery jurisdiction are unknown to our system of jurisprudence; and that further, even if the jurisdiction should be regarded as separate, which is not the case, the suit is to enforce a trust, and the execution of trusts has always been a most prolific branch of-equity jurisprudence. We regard the cestui que trust as a [304] proper party in this suit; and there was no error in overruling the exception.

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Hall v. Harris, 11 Tex. 300 (Tex. 1854).

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