Jones v. Dawson

19 Ala. 672
CourtSupreme Court of Alabama
DecidedJune 15, 1851
StatusPublished
Cited by29 cases

This text of 19 Ala. 672 (Jones v. Dawson) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. Dawson, 19 Ala. 672 (Ala. 1851).

Opinion

CHILTON, J.

We may concede, for the purposes of this decision, that Col. Dawson was the agent of the trustees to take charge of this property, after its removal to this State from South Carolina, and that Mrs. Dawson had bound herself for the payment of the demand due to the plaintiff in error, as wages for overseeing the property for three years, under the contract of employment entered into between him and Dawson; and yet we are of opinion that under the circumstances of this case, as presented by the record, the plaintiff in error is not entitled to the relief which he seeks.

The bill prays that relief may be granted from the corpus of the trust; that the property be hired out, or enough of it sold to satisfy the plaintiff’s demand. Without stopping to inquire whether the services rendered by the plaintiff in error would, if rendered by the trustees themselves, have constituted a valid charge in their favor against the property, let us inquire, upon the hypothesis that it would, whether the employment by the trustees could confer upon the plaintiff a right to go into a court of equity for satisfaction out of the'trust fund. This is a highly important question, and although we do. not conceive it one of any difficulty, we have, nevertheless, given it a very mature consideration, both as to the principle upon which it turns, and the authorities in support of the view rvo have felt constrained to take of it.

We may safely lay it down as the general rule, that expenses properly incurred by a trustee in the execution of his office aw such, are treated by the court as a charge or lien upon the estate, and the cestuis que trust, or their assigns, cannot compel the trustee to convoy in equity without a previous satisfaction of all the trustee’s just demands. Does this equitable. right extend to the agents of the trustees 7 In the event of the death or insolvency of such trustee, can those employed by him go immediately upon the trust fund for payment1?

In Worrall v. Harford, 8 Ves. 4, the question now under consideration appears for the first, and, so far as I have been enabled to discover, the only time dircctty presented to the English [676]*676Court of Chancery, That was a bill by a solicitor, claiming. 80i. 9s. 8d., for a balance due to him for services rendered as such, in the matter of the trust estate upon the retainer of the trustees. The plaintiff insisted that his demand should not be considered a simple contract debt, as by the deed creating the trust it was provided, that the trustees should, out of the monies to come to their hands, pay and discharge the expenses of the commission of bankruptcy which was sued out, and all costs and charges of the deed, and also all other incidental charges and expenses relating to the execution of the trusts thereof; and that the trustees should pay and re-imburse themselves all their costs and charges relative thereto; and that therefore his demand ought to be considered as a specialty debt; and that he had a lien on the trust estate for his costs and charges. The bill further charged, that one of the trustees had died, the others had never made a final settlement and dividend of the trust fund, and had refused to pay the plaintiff. The plaintiff prayed to be declared a creditor under the trust deed, for the amount of his hills of fees, and for an account of the trust fund in the hands of the trustees, and that they be decreed to pay the sum demanded to the plaintiff'. It was admitted by the counsel on both sides, that this was the first instance of an attempt to assert such an equity. The Lord Chancellor, (Eldon,) after stating that it was admitted that the bill was a perfect novelty, and that it was implied in every instrument creating a trust, that the trustee should be re-imbursed all charges and expenses incurred in the execution of the trust, proceeded to remark, “ That it would be strange from that implication to conclude that the persons employed by them are therefore creditors of the trust fund, I doubt very much,” says he, “ and desire not to be understood to admit, that, even if the trustees arc charged not to be solvent, those persons may come upon the trust fund.” He concludes by saying, that it did not follow because the trustees were indemnified by the deed from the charges and expenses, that the persons having a personal demand against them for those charges and expenses should be creditors upon the fund; but that such a determination would be most mischievous. This case seems to be regarded by the elementary writers as settling the law upon this point. Mr, Lcwin says, “Although the trustees themselves are creditors upon the trust fund for the amount of their expen[677]*677ses, 'the persons who are employed by them as solicitors, survey-ors, &e., liave no such lien, except it may be in some special ■case.” — Lewin on Trusts & Trustees, 454-5, The only case cited by tbe author as an exception to the settled rule, is Lawless v. Shaw, Lloyd & Goold, 154. In that case, however, the ■testator by his will expressed his particular desire that the plaintiff should be continued by Hr. executors and the person who was to be entitled 'to the perception of the rents and profits of certain real estate, in the receipt and management thereof, and that they should employ and retain him in the receipt, agency and management of all such other lands as should be purchased in pursuance of "the provisions of the will, at the usual fees allowed to agents, said Lawless having acted for the testator in that capacity from 'the time the estate was acquired by him. So that it is manifest, in that case it became a grave question whether Lawless was not entitled to such ageney and the consequent fees under the will, which of course would have given him a right to proceed against the fund for compensation, instead of looking to the trus- ' tees. The Lord'Chancellor of Ireland (Plunket) at first decided that this constituted but a recommendation for the continuance or employment of Lawless, and being precatory, conferred no right upon him, except at the pleasure of the party recommended to employ him. — Lloyd & Gr., 165, N. Upon a re-hearing, Lord Chancellor Sugden made a different decree, (lb. 110,) but the House of Lords reversed the latter, and decreed in accordance with the views of Lord Plunket. — 5 Clark & Finn. 129. So that this case could hardly be regarded as an exception to the rule.

Mr. Lewin, (p. 455,) upon the authority of Lord Eldon, in Worrall v. Harford, supra, asserts the proposition broadly, that although there be an express declaration by the settler, that the trustee shall in the first place pay the expenses of the trust, and although the trustees themselves be charged to be insolvent, the agent or solicitor of the trustee has no equity as-against the trust fund, and that it would be a mischievous principle to hold that every person, with whom the trustees had incurred a just and fair demand, might sue the trustees and come for an account of the whole administration.

Speaking of the lien which the trustee has for expenses in■curred upon the trust estate in their hands, Mr. Hill, in his work [678]*678on Trustees, (p. 567,) says, “ This privilege does not in general extend to solicitors or other persons employed by the trustees; and such persons will be confined to their personal remedy against the trustee by whom they were employed.” It appears, however, that any part of the estate which may be actually realized or recovered by the suit in which the solicitor was employed, will he subject to his lien for the costs of the suit. — See also, 10 En. Ch. R. 454; Bozon v. Bolland, 4 M. & Cr. 354; Hall v.

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Bluebook (online)
19 Ala. 672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-dawson-ala-1851.