Smith v. Davis

27 P. 26, 90 Cal. 25, 1891 Cal. LEXIS 877
CourtCalifornia Supreme Court
DecidedJune 30, 1891
DocketNo. 13319
StatusPublished
Cited by34 cases

This text of 27 P. 26 (Smith v. Davis) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Davis, 27 P. 26, 90 Cal. 25, 1891 Cal. LEXIS 877 (Cal. 1891).

Opinion

Garoutte, J.

—Respondent filed his complaint in equity to appoint a trustee, and to have the execution of a trust relating to certain lands in Washington Territory decreed.

The complaint, filed May 23,1885, alleges that on July 27, 1881, said Smith and Davis executed and delivered each to the other a certain document, purporting to be an “indenture tripartite,” whereby they purported to convey said land to the London and San Francisco Bank, Limited (a corporation), in trust, for certain specified purposes; that by the terms of its charter said bank was incapable of taking the title sought to be conveyed by the indenture, and was without power to act as trustee in the indenture specified; that defendant Davis refused to regard and carry out the conditions of the indenture, and plaintiff asks that the court appoint a trustee, and that the said trustee be directed to execute the trusts therein contained.

Defendants filed a general demurrer, which was overruled, when defendant Davis answered, setting out, [29]*29among other things, that after the filing of the complaint in this action he sold and transferred all his interest and right in the land described to one Margaret H. McDonald, and that since that time he has had no interest in and to said real estate.

The defendant bank answered that it had no legal capacity to take the title sought to be conveyed, never consented to act as trustee, and refused so to act.

The findings of the court are in consonance with the allegations of the complaint; and the court also found that defendant Davis had transferred his interest as set fortli in his answer.

This appeal is from the judgment appointing a trustee, and directing an execution of the trust.

Appellant insists that the court had no jurisdiction or authority to appoint or constitute a trustee of land lying outside of the terrritorial limits of the state of California.

There is no question as to the general principle of law that in respect to realty every attempt of any foreign tribunal to found a jurisdiction over it must, from the very nature of the case, be utterly nugatory; for land is held by the laws of the country where it is situated, and the tribunals administering those laws are the proper forums in which titles to realty should be litigated. The effect of a court’s decree is necessarily limited by the boundary lines of its jurisdiction.

In the case of Lindley v. O’Reilly, 50 N. J. L. 636, where a court of Pennsylvania adjudged a conveyance of land in New Jersey to be a mortgage, and canceled the same, all the parties living in Pennsylvania, the court said: “ The decree cannot operate ex proprio vigore upon the lands in another jurisdiction to create, transfer, or vest a title. The courts of one state or country are without jurisdiction over title to lands in another state or country.” While the rule is as above stated, yet there is another rule firmly established and of uni[30]*30versal application, and it is: “ In cases of fraud, trust, or contract, the jurisdiction of a court of chancery is upheld wherever the person be found, although lands in another state may be affected by the decree.” In the case of Massie v. Watts, 6 Cranch, 158, Chief Justice Marshall said: “Was this cause therefore to be considered as involving a naked question of title,— was it, for example, a contest between Watts and Powell,—the jurisdiction of the circuit court of Kentucky would not be sustained. But where the question changes its character, where the defendant in the original action is liable to the plaintiff either in consequence of contract, or as trustee, or as the holder of the legal title acquired by any species of mala fides practiced on the plaintiff, the principles of equity give a court jurisdiction wherever the person may be found. And the circumstance that a question of title may be involved in the inquiry, and may even constitute the essential point on which the case depends, does not seem sufficient to arrest that jurisdiction.”

In Witner v. Wimer, 82 Va. 901, we find this language of the court: “But whilst this is true,it is undoubtedly well settled that in cases of fraud, trust, or contract, courts of equity will, whenever jurisdiction over the parties has been acquired, administer full relief, without regard to the nature or situation of the property in which the controversy had its origin, and even where, the relief sought consists in a decree for the conveyance of property which lies beyond the control of the court, provided it can be reached by the exercise of its powers over the person, and the relief asked is of such nature as the court is capable of administering.”

Story quotes the following language of Lord Kenyon, used in a case pending before him: “Thesecases clearly showing that with regard to any contract made in equity between persons in this country respecting lands in a foreign country, particularly in the British dominion, this court will hold the same jurisdiction as if they [31]*31were situated in England.” (Story’s Eq. Jur., see. 1293.) Referring to trusts, Story says: “ If the proper parties are within the reach of the process of the court, it will be sufficient to justify the assertion of full jurisdiction over the subject in controversy.”

Barger v. Buckland, 28 Gratt. 850, was a suit of creditors to subject to the payment of their claim lands of their debtor situate in Virginia and West Virginia, which lauds had been conveyed, in trust, to secure other debts. The trust was created in Virginia, the parties resided in Virginia, except the trustee, who resided in West Virginia, and who neglected or refused to carry out the trust.

In Poindexter v. Burrell, 82 Va. 514, the court, in reviewing the decision in Barger v. Buckland, 28 Gratt. 850, says: “ Upon default of payment, there being no trustee to execute the contract of the parties to sell the land and pay the debt, under the circumstances the court, in order to perform the contract of the parties, and to fulfill its own maxim that a trust shall not fail for want of a trustee, decreed that unless the grantor should pay the debt within a prescribed period, then certain named persons should execute the trust by selling the land and applying the proceeds to the payment of the debt.”

Upon principle, this case appears to be identical with the case at bar. If the London and San Francisco Bank had been competent to accept the trust, and had accepted it, and this plaintiff was here asking that the trustee execute the trust, there is no question but what a decree to that extent would be sustained by this court, for the authorities are universal to that effect.

If the court has the power and if it is its duty to execute the trust, can it be deprived of that power and released from that duty because there is no trustee to carry out the mandate of the court ? or rather, is it not specially within the line of its duty to create an instru[32]*32ment whereby its decree may effect the true purpose and object intended?

The decrees of courts of equity primarily and properly act in personam, and at most collaterally only in rem.

If the parties are within the jurisdiction of the court, an injunction will be granted to stay proceedings in a suit in a foreign country.

A trust will be enforced pertaining to realty, regardless of the situation of the property.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

(PC) Tillett v. Caasi
E.D. California, 2025
Richards v. Cox
D. Nevada, 2022
Appel v. Wolf
S.D. California, 2021
Howard Appel -v- Robert S Wolf
S.D. California, 2021
A.B. v. County of San Diego
S.D. California, 2020
McCarthy v. Poulsen
173 Cal. App. 3d 1212 (California Court of Appeal, 1985)
Mills v. Mills
305 P.2d 61 (California Court of Appeal, 1956)
Estate of Barter
30 Cal. 2d 549 (California Supreme Court, 1947)
Kuchel v. First Trust & Savings Bank of Pasadena
184 P.2d 305 (California Supreme Court, 1947)
Tully v. Bailey
115 P.2d 542 (California Court of Appeal, 1941)
Meents v. Comstock
296 N.W. 721 (Supreme Court of Iowa, 1941)
Baskin v. Montedonico
26 F. Supp. 894 (W.D. Tennessee, 1939)
Shaw v. Johnson
59 P.2d 876 (California Court of Appeal, 1936)
Portland Trust & Savings Bank v. Rosenberg
49 P.2d 467 (Washington Supreme Court, 1935)
Hammond Lumber Co. v. Roubian
30 P.2d 440 (California Court of Appeal, 1934)
Bank of Italy National Trust & Savings Ass'n v. Bentley
20 P.2d 940 (California Supreme Court, 1933)

Cite This Page — Counsel Stack

Bluebook (online)
27 P. 26, 90 Cal. 25, 1891 Cal. LEXIS 877, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-davis-cal-1891.