Prevost v. Gratz

19 U.S. 481, 5 L. Ed. 311, 6 Wheat. 481, 1821 U.S. LEXIS 368
CourtSupreme Court of the United States
DecidedMarch 13, 1821
StatusPublished
Cited by156 cases

This text of 19 U.S. 481 (Prevost v. Gratz) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prevost v. Gratz, 19 U.S. 481, 5 L. Ed. 311, 6 Wheat. 481, 1821 U.S. LEXIS 368 (1821).

Opinion

Mr. Justice Story

delivered the opinion of the Court, and after stating the proceedings in the Court below, proceeded as follows :

The first point upon which the cause was argued, respects the tract of land on the Tenederah River. It appears-from the evidence that this tract of land, containing 9,050 acres, was conveyed by Col. Cro-ghan to Michael Gratz, by a deed bearing date on the 2d of March, 1770, for the consideration expressed in the deed of£l ,800. The deed is upon its face absolute, and contains the covenants of general warranty, and for the title of the grantor, which are usual in absolute deeds; but are unnecessary in deeds of trust. At the time of the execution of the deed, Col. Cro-ghan was in the State of New-York, and Michael Gratz was at Philadelphia. The land was, after the death of Col. Croghan, and in the year 1795, sold by Michael Gratz, to a Mr. Lawrence, in New-York, for a large sum of money. The plaintiff contends that this conveyance made by Col. Croghan to Michael Gratz, though in form absolute, was in reality a conveyance upon a secret trust, to be sold for the benefit of, the grantor; and in this vietv of the cáse, he contends farther, that he is entitled to be *493 aI1tw~d the full ~a1ue of the lands at the time that the present suit• was brought, upon the ground of a fraudulent or i'mp~oper breach of trust by the gra~itee, or at all events, to' the full amount of' the profits made' upon the sale in `1 79~, with interest up to the time of the .Döcree.

~roof of the original ~zistence of the trust in this case.

The attention of the' Court will, therefore, be diiei~ted, in' thefirst place, to the consideration of the question, whether this~ Was "a conveyance iii tràst, and if sO, of what nathre that' trOst was; : and, in the next place, wh~th~r that trust `was ever ~a%vftilly disk charged or extinguished. If there be still a subsist-. ing trust, there'can be no doubt `that `the pláintiff~ is entitled :tO some relief. -. 0 -

Ii appears-from the evidence that CoL. Croghan, and Bernard and Michael Gratz, were intimately acquainted with each other, and a variety of ~c-counts was settled .bet~ve~n them', from .the year 1769, to `a short perioti be~bre- the death .of..Cól. Croghan. During all'~this period, Col. Croghan appears to have had the most unbounded confidence in them; and particularly by his `will, made in June 1782,. a shott. time before his decease, he named them. among his executors,. and gave., to Michael Gratz. in' consideration qf services rendered to, him, live thousand aèrès' of land, and to his, daughter Rachel Gratz, one thousand acres of land on Charter Creek, with an election to take the same number of acres in lieu thereof, in' any ot~ier'lands belonging to the testátor. The situation `of the parties, therefore, was one in which secret trusts might, probably, ex~ 1st, from the pecuniary enibarrassmeàts' in which *494 Gol. Croghan appears to have been involved, as well as from his extensive land speculations. And, in point of fact, some portions of his property were conveyed to one or both of the Messrs. Gratz, upon express and open trusts.

Still, however, the burthen of proof to establish the trust in controversy, lies on the plaintiff. The. circumstances on which he relies are, in our judgment, exceedingly strong in his favour; and sufficient to repel any presumption against the trust drawn from the absolute terms of the deed. In an account which was settled at Pittsburg, in May, 1775, between Bernard and Michael Gratz, and Col. Croghan, is the following item of credit:

“ August, 1774. By cash received of Howard, for 9,000 acres of land atTenederah, sold him for £850 15s. New-York currency, is here, - - - - £797 12 6
Interest on £797 12s. 6d. from August, 1774, to May, 17.75, is eight months, at 6 per cent. - - 31 18 1
£829 10 7

There is no question of the identity of the land here stated to be sold to Howard, with the tract conveyed to Michael Gratz by the deed, in 1770. If the conveyance to Michael Gratz had been originally made for a valuable consideration then paid, it seems utterly impossible to account for the allowance of this credit upon any sale at a subsequent period. It seems *495 íq us, therefore, that, the only rational explanation of .ithis transaction is, that the conveyance to Michael Gratz, though absolute in form, was, in reality, a trust for the benefit of Col. Croghan.» What the exact nature of this trust was, it is, perhaps, not very easy now to ascertain with perfect certainty. ' It might have been a trust ¿to sell the lands for the benefit of Col. Croghan, and . to apply the proceeds in part payment of the debts due from him to Bernard pnd Michael Gratz ; or, it might have been a sale of the lands directly to Michael Gratz, in part payment of the same debt, at a price thereafter to be agreed upon, and fixed by the parties; and, in the mean time, there would arise a resulting trust, in favour of Col. Croghan, by operation of law.

Time, which buries in obscurity all human transactions, has achieved its accustomed effects upon this. The antiquity of the transaction — the death of all the original parties, and the unavoidable difficulties as to evidence, attending all cases where there are secret trusts and implicit confidences between the parties, render it, perhaps, impossible to assert, with perfect satisfaction, which of the two conclusions above suggested, presents the real state of the case. Taking the time of the credit only, it would certainly seem to indicate that the trust was, unequivocally, a trust to sell the land. But there are some other circumstances which afford considerable support to the other conclusion. Upon the back of an account between B. & M. Gratz, and Col. Croghan, which appears to have been rendered to the latter, in December, 1769, there is a memoran *496 dum in the hand-writing of Col. Croghan, in which he enumerated the debts then due by him to. B. & M, Gratz, amounting to £1,220 Is. 2d. and then adds the following words: li paid of the above £144 York currency, besides the deed for the land, on the Te-nederah River, ,9,000 acres patented.” This memorandum must have been made after the conveyance of the land, to M. Gratz, and demonstrates that the parties intended it to. be a part payment of the debt due to B.& M. Gratz, and not a trust for any other purposé. The circumstance too, that the word “paid”is,Used, strpngly points to a real sale to M. Gratz,. rather than, a conveyance .for sale-to any third person. Add if the sale .was to be' to M, Gratz, at a price thereafter, to be fixed between the parties, the transaction could not be inconsistent with the terms of the credit, in the account of 1775.. It will be recollected that M. Gratz resided at Philadelphia,, and the conveyance was executed by Col. Croghan at Albany. There is no,evidence that the consideration stated in the deed óf £1,80(0, i or any other consideration, was ever agreecTupon between the parties ; and the circumstance that no sum is expressed in the memorandum of.Col.' Groghan, shows, that at the period when it was made, no fixed price for the land hMd been! ascertained, between the. parties.

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Cite This Page — Counsel Stack

Bluebook (online)
19 U.S. 481, 5 L. Ed. 311, 6 Wheat. 481, 1821 U.S. LEXIS 368, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prevost-v-gratz-scotus-1821.