Opinion · Supreme Court of the United States

Hammond v. Hopkins

143 U.S. 224

Type
Opinion
Court
Supreme Court of the United States
Jurisdiction
Federal
Date
1892-02-29
Topic
general

How later courts describe this case

  • “[W]here a trustee [breaches the trust], the eestuis que trust are entitled to [take action] subject to the qualification that the application for such relief must be made within reasonable time....”
  • "[W]here a trustee [breaches the trust], the cestuis que trust are entitled to [take action] subject to the qualification that the application for such relief must be made within reasonable time...."

Citator

UpLaw has not yet analyzed Hammond v. Hopkins. The absence of a flag is not a finding that it is good law.

Cited by
208 opinions

Headnotes

  1. Remedies — Laches and Stale Demands A court of equity will not aid a party whose application is destitute of conscience, good faith, and reasonable diligence; it discourages stale demands for the peace of society by refusing to interfere where there has been gross laches in prosecuting rights, or where long acquiescence in the assertion of adverse rights has occurred. Hammond v. Hopkins, 143 U.S. 224 (1892)
  2. Remedies — Laches — Circumstances Governing Relief In matters of conscience, good faith, reasonable diligence, laches, and acquiescence, each case must be governed by its own circumstances; the delay that will defeat recovery depends on the particular circumstances of each case, and the lapse of a few years may suffice in one case while a longer period is required in another, dependent on the situation of the parties, the extent of their knowledge or means of information, great changes in values, the want of probable grounds for imputing intentional fraud, the destruction of specific testimony, and the absence of any reasonable impediment or hindrance to asserting the alleged rights. Hammond v. Hopkins, 143 U.S. 224 (1892)
  3. Remedies — Pleading — Stale Demands A party seeking relief in equity notwithstanding delay must set forth in the bill specifically the impediments to earlier prosecution of the claim, how he came to be so long ignorant of his rights, the means used by the respondent to fraudulently keep him in ignorance, and how and when he first learned of the matters alleged; the particular act of fraud, misrepresentation, or concealment must be stated distinctly, specifying how, when, and in what manner it was perpetrated, as charges of fraud must be definite and reasonably certain, capable of proof, and clearly proved. Badger v. Badger, 2 Wall. 87; Stearns v. Page, 7 How. 819
  4. Estate, Gift & Trust Law — Fiduciary Duty A trustee cannot purchase or deal in the trust property for his own benefit or on his own behalf, directly or indirectly; a person cannot purchase legally on his own account that which his duty or trust requires him to sell for another, nor purchase on account of another that which he sells on his own account. Michoud v. Girod, 4 How. 503
  5. Estate, Gift & Trust Law — Fiduciary Duty A trustee's purchase at his own sale is ipso facto voidable by the cestui que trust on grounds of public policy, and the rule is not countervailed by fullness of price, absence of fraud, and fairness of the sale; the relaxation permitting a trustee to purchase trust property does not extend to a purchase by a trustee at his own sale. Michoud v. Girod, 4 How. 503; Lewin on Trusts, 438
  6. Estate, Gift & Trust Law — Purchase Through an Intervening Person A purchase, per interpositam personam, by a trustee or agent of the particular property of which he has the sale, or in which he represents another, whether he has an interest in it or not, carries fraud on the face of it. Michoud v. Girod, 4 How. 503
  7. Estate, Gift & Trust Law — Fiduciary Duty A trustee's purchase of trust property for his own benefit is voidable, not absolutely void, and may be confirmed by the parties interested, either directly, by long acquiescence, or by the absence of an election to avoid the conveyance within a reasonable time after the facts come to the knowledge of the cestui que trust; confirmation must be a solemn and deliberate act, free from suggestio falsi and suppressio veri, and mere passivity by cestuis que trust is not consent. Hammond v. Hopkins, 143 U.S. 224 (1892); Michoud v. Girod, 4 How. 503
  8. Estate, Gift & Trust Law — Fiduciary Duty A trustee may purchase trust property from the beneficiary if there is a distinct and clear contract, made under circumstances showing that the beneficiary was aware of the property's correct value, that the trustee had no special knowledge of the value not also possessed by the beneficiary, and that no undue influence arising from the trusteeship was brought to bear on the beneficiary; the parties must stand as ordinary amicable buyer and seller. Lewin on Trusts, 438; Michoud v. Girod, 4 How. 503
  9. Estate, Gift & Trust Law — Fiduciary Duty The office of trustee is one of confidence, important to the community, and the law regards the incumbent with jealous scrutiny and frowns upon the slightest attempt to pervert his powers and duties for his own benefit; it is the duty of the trustee to execute the trust, and it is not the duty of the cestui que trust to make any inquiries. Railroad Company v. Durant, 95 U.S. 576; Villa v. Rodriguez, 12 Wall. 323
  10. Estate, Gift & Trust Law — Setting Aside Sales for Slight Indirection When the trustee and cestui que trust relationship subsists, the slightest obliquity or indirection is adequate, on grounds of public policy, to set aside a sale. Villa v. Rodriguez, 12 Wall. 323; Shaw v. Railroad Co., 100 U.S. 605
  11. Estate, Gift & Trust Law — Fiduciary Duty Trustees making a sale have a duty to exercise the diligence and caution a careful and prudent owner would observe in selling his own property, and a court of equity ought not to ratify a sale made under circumstances of haste and imprudence, or where the trustees fail in reasonable diligence in inviting competition, or adopt an injudicious and disadvantageous mode of selling the property. Gould v. Chappell, 42 Md. 466; Ord v. Noel, 5 Madd. 438
  12. Estate, Gift & Trust Law — Setting Aside Fraudulent Sales — Accounting for Profits Where sales are fraudulent, a court of equity will not allow the trustees or their heirs to reap any advantage from their scheme, but will set the sales aside ab initio and hold them to an account for the profits they have made, allowing them credit for their lawful expenditures, such as improvements, taxes, and payments to the appellees with interest thereon, doing equity to them which they refused to others. Oliver v. Piatt, 3 How. 333, 401
  13. Remedies — Laches — Death of Participants The rule against aiding stale demands is peculiarly applicable where the difficulty of doing entire justice arises through the death of the principal participants in the transactions complained of, or of the witness or witnesses, or by reason of the original transactions having become so obscured by time as to render the ascertainment of the exact facts impossible. Hammond v. Hopkins, 143 U.S. 224 (1892)
  14. Remedies — Laches — Effect of Changes and Death In measuring laches, where there has been no change of circumstances between the parties and no change in the condition and value of the property, a court of chancery will run very nearly if not quite up to the measure of the statute of limitations as applied in analogous cases at law; but where there has been a change of circumstances as to the parties and the property, and still more where death has intervened so that one party's mouth is closed and his representatives cannot avail themselves of explanations he might have made, courts limit very much the measure of time within which they will grant relief, because fraud is never to be presumed but must always be proved clearly.
  15. Remedies — Laches — Counter-Presumption from Delay Where a trustee alleged to have committed a technical fraud remained in active life without challenge to the transaction for many years, the law presumes that he would have had opportunities of explaining the transaction and vindicating himself which are now lost, and a counter-presumption arises that the delay was with a view to gaining the undue advantage of evidence on one side no longer capable of explanation on the other.
  16. Remedies — Fraud — Rigid Enforcement of Diligence In all cases where actual fraud is not made out, but the imputation rests upon conjecture, where death has closed the lips of those whose character is involved, and lapse of time has impaired recollection of transactions and obscured their details, the welfare of society demands the rigid enforcement of the rule of diligence; those who have slept upon their rights must be remitted to the repose from which they should not have been aroused. Hammond v. Hopkins, 143 U.S. 224 (1892)
  17. Remedies — Settlements and Estoppel A settlement in the orphans' court is no estoppel where that court had no jurisdiction over the distribution of equitable assets or real estate, and the receipt of a distributive share allowed in such a settlement is likewise not an estoppel. Robertson v. Pickrell, 109 U.S. 608; Embry v. Palmer, 107 U.S. 3
  18. Remedies — Laches — Married Women No laches can be charged against a married woman. House v. Mullen, 22 Wall. 42
  19. Estate, Gift & Trust Law — Consent and Knowledge — Presumption of Fraud Where a trustee sold real estate by auction and bought portions through a third person, accounting for half of the net proceeds, and the transaction was open and known to all cestuis que trust and was objected to by none, there was nothing to indicate fraud; a complainant who fails to establish charges of fraud cannot overcome the defense of laches where he had knowledge of the facts and slept upon his rights. Hammond v. Hopkins, 143 U.S. 224 (1892)
  20. Remedies — Distinguishing Actual and Constructive Fraud for Laches Courts of chancery distinguish between constructive fraud in a trustee's dealing with the subject of the trust through an intervening person for the acquisition of legal title, and actual fraud and concealment, allowing greater liberality as to lapse of time in the latter class than in the former. Hammond v. Hopkins, 143 U.S. 224 (1892)
  21. Remedies — Impediments to Earlier Prosecution Long acquiescence and laches by parties out of possession cause hardship and injustice that cannot be excused except by showing actual hindrance or impediment caused by the fraud or concealment of the party in possession, which appeals to the conscience of the chancellor. Lansdale v. Smith, 106 U.S. 391
  22. Estate, Gift & Trust Law — Fiduciary Duty Where a trustee or person acting for others sells the trust estate and becomes himself interested in the purchase, the cestuis que trust are entitled as of course to have the purchase set aside, subject to the qualification that the application for such relief must be made within a reasonable time, and laches and long acquiescence cannot be excused except by showing some actual hindrance or impediment caused by the fraud or concealment of the party in possession. Michoud v. Girod, 4 How. 503
  23. Estate, Gift & Trust Law — Fiduciary Duty Greater consideration and care are due to persons known to be unable to take care of themselves than to those fully able to do so, and where it appears that the cestui que trust was fully informed of the facts and was of full age and competent to manage his own affairs, a trustee may purchase the trust property in the absence of fraud or concealment. Graffam v. Burgess, 117 U.S. 180
  24. Evidence — Certainty in Charges of Fraud Reasonable certainty is all that is necessary in pleading a case of fraud; the charges must be definite and reasonably certain, capable of proof, and clearly proved. Kempner v. Churchill, 8 Wall. 362; Stearns v. Page, 7 How. 819
  25. Estate, Gift & Trust Law — Practice — Division of Estate Where a will directs the trustees to divide the testator's estate of every kind among his children upon the arrival of a daughter at a specified age, it becomes the duty of the trustees to make that division at the time specified, and no liability arises from the trustees' acceptance of the trust and carrying on of the business thereunder with assistance and support to the testator's children and retention of land unsold, their acts being measured against their duties under the will.
  26. Estate, Gift & Trust Law — Sale as Mode of Division — Conspiracy Where real estate is held in undivided shares, a division requires a partition, first as between the co-owner and the estate and then among the testator's children; where a sale of an undivided half would probably prove disadvantageous and the co-owner allows his half to be sold together with the other so that complete title can be given without subsequent legal proceedings, the trustees may reasonably conclude that a sale is the best mode of arriving at a division, and a decision to divide the estate at the time specified by the testator and to accomplish that division by the ordinary method of a sale does not give color to a charge of conspiracy.
  27. Estate, Gift & Trust Law — Fiduciary Duty Where a will provides that the trustees shall sell and dispose of the real property, brick-kilns, materials, or implements, or the business, at public or private sale, at such time or times after such notice and upon such terms as they may deem most for the interest of the estate, when in their judgment a sale is essential or necessary for any cause whatever or would be advantageous, and convey the same by proper conveyances, purchasers who have paid their purchase money to the executors are under no obligation to see to its application under the trust of the will and are not answerable for its misapplication.