Hindman v. O'Connor

13 L.R.A. 490, 16 S.W. 1052, 54 Ark. 627, 1891 Ark. LEXIS 118
CourtSupreme Court of Arkansas
DecidedJuly 3, 1891
StatusPublished
Cited by43 cases

This text of 13 L.R.A. 490 (Hindman v. O'Connor) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hindman v. O'Connor, 13 L.R.A. 490, 16 S.W. 1052, 54 Ark. 627, 1891 Ark. LEXIS 118 (Ark. 1891).

Opinion

Battle, J.

In September, 1867,, Thomas C. Hindman, and on the 19th of August, 1876, Mary B. Hindman, his wife, died intestate, leaving Susie Hindman, Biscoe Hind-man, Thomas C. Hindman, Jr., and Blanche Hindman, their only children, surviving them. Biscoe, Thomas C. and ' Blanche were minors when their parents died, Biscoe having been born on the 27th of November, 1861, Thomas C. on 23d of November, 1863, and Blanche on the 2d of December, 1865. Laura E. B. O’Connor and the mother of Mrs. Hindman were sisters, and Mrs. O’Connor (Laura E. B.) was the step grandmother of Mrs. Hindman’s children, she having been the wife of their grandfather. When Mrs. Hindman was on her death-bed, she requested Mrs. O’Con-nor to take charge of her children, and she promised that she would to the best of her ability, and proceeded to do so, immediately after the death of Mrs. Hindman, by taking them home with her and exercising personal supervision over them. On the gth of September, 1876, Susie, Biscoe and Thomas C. Hindman filed a petition in the Phillips probate court, stating that they and Blanche Hindman were children and heirs at law of Mary B Hindman, deceased; that Biscoe, Thomas C. and Blanche were minors ; that they were the owners in their own right of an interest in real estate in the county of Phillips in this State, and equally entitled to a distributive share in the estate of their mother, the late Mary B. Hindman; and representing that their mother had requested that Mrs. O’Connor and her husband should take charge of and have the entire control and custody of her children, and assist in the management of their property interests; and asking that B.Y. Turner be appointed curator of the estate of the minors. On the same day the probate court granted the petition, and B. Y. Turner, having given bond with approved security, was appointed curator of the estate of Biscoe, Thomas C. and Blanche Hind-man. The court further ordered that the minors remain in the care and custody of Mrs. O’Connor and her husband, in accordance with the last wish and request of their mother; and appointed J. H. O’Connor, the husband of Mrs. Laura E. B. O’Connor, the attorney and next friend of the minors “ to look after and render such aid and assistance to the curator as may be necessary for their interest.” After this the children continued to live with Mrs. O’Connor, and she endeavored to act the part of a mother to them. They were the owners of block 17, in that part of the city of Helena known as New Helena, having thereon a valuable residence, the late home of their father and mother, and other buildings. It became delinquent for taxes for the, years • 1873, 1874 and 1875, and she redeemed it by paying $896.87, the cost of redemption. Susie, needing money to enable her to attend school and pay her debts, offered to sell and convey to her her (Susie’s) interest in the block. She bought it and became the owner of one undivided fourth of the block. On the 22d of November, 1880, Bart Y. Turner, curator of the estate of the minor children, presented his petition to the Phillips probate court for an order to sell the minors’ interest in the block ; and the court, finding that it was-to the interest of the minors that it should be sold to procure means for their support and education, ordered it to be sold on the loth of January, 1881. The block was not sold on that day for the want of bidders; and the court again ordered it to be offered for sale and fixed the nth of April, 1881, as the day of sale. The entire block, including the one-fourth purchased from Susie, with the consent of Mrs. O’Connor, was offered for sale on the last named day and Mrs. O’Connor, at the request i f the children, bid for the same. She offered $4000 for the block and, no one bidding more, she was ¿declared the purchaser. The curator reported the sale to the probate court for confirmation. It having been reported that one A. H. Johnson would have given $4200, the children were dissatisfied and filed exceptions to the report. Mrs. O’Connor thereupon offered $4500, and the $4000 in the report was changed to $4500, and the exceptions were withdrawn, and the sale was confirmed by the court; and the property was conveyed to Mrs. O’Connor. Three-fourths of the purchase money, amounting to $3375, which was the proportion due the minor children,, have been paid.

1. When constructive t r u s i arises. - To set aside the purchase of the three-fourths interest of the block that belonged to Biscoe, Thomas C. and Blanche Hindman, this action was brought by them since they ceased to be minors. They contend that Mrs. O’Connor was under a disability to purchase, "arising from’ the relation she sustained to them at the time the block was sold. Can they avoid the sale ?

As a general rule, a party occupying a relation of trust or confidence to another is, in equity, bound to abstain from doing everything which can place him in a position inconsistent with the duty or trust such relation imposes on him, or which has a tendency to interfere with the discharge of such duty. Upon this principle no one placed in a situation of trust or confidence in reference to the subject of a.sale can be the purchaser, on his own account, of the property sold. If such a one purchases the property, it is in the option of the person interested in the property, and to whom the relation of trust or confidence “was sustained, to set aside the sale within a reasonable time, however innocent the purchaser may be. 1 Story, Eq., secs. 307-323, and cases cited.

In Sugden on Vendors, the rule and its reason are expressed as follows : “ It may- be laid down as a general proposition, that trustees, unless they are nominally such, as trustees to preserve contingent remainders, agents, commissioners of bankrupts, assignees of bankrupts, solicitors to the commission, auctioneers, creditors who have been ■consulted as to the mode of sale, counsel, or any persons who, by being employed or concerned in the affairs of another, have acquired a knowledge of his property, are incapable of purchasing such property themselves, except under the restrictions which will shortly be mentioned. For, if persons having a confidential character were permitted to avail themselves of any knowledge acquired in that capacity, they» might be induced to conceal their information, and not to exercise it for the benefit of the persons relying on their integrity. The characters are inconsistent. Emptor emit quam mínimo potest, venditor vendit qnam máximo potest.” 2 Sugden on Vendors (7th Am. ed.), star page 887; Michoud v. Girod, 4 How., 504.

In Imboden v. Hunter, 23 Ark., 622, this court said: “ It is a stern rule of equity that a trustee to sell for others is not allowed to purchase, either directly or indirectly, for his own benefit, at the sale. He cannot be both vendor and purchaser. As vendor, it is his duty to sell the property for the highest price, and as purchaser, it is his interest to get it for the lowest, and these relations are so essentially repugnant—so liable to excite a conflict between self-interest and integrity, that the law positively forbids that they shall be united in the same person. And it matters not, in the application of the rule, that the sale was bona fide and for a fair price. The enquiry is not whether, there was fraud in fact. In such a case, the danger of yielding to the temptation is so imminent, and the security against discovery so great, that a court of equity, at the instance of the cestui .que trust, if he applies in a reasonable time, will set aside the sale, as of course.

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Bluebook (online)
13 L.R.A. 490, 16 S.W. 1052, 54 Ark. 627, 1891 Ark. LEXIS 118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hindman-v-oconnor-ark-1891.